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There is much ado about President Obama’s recent statement “If you’ve got a business, you didn’t build that.” The overwrought right is abuzz with angry indignation. How dare he! they shout in unison, aghast that this evil communist could so thoroughly declare war on private enterprise. Let’s take a closer look.

First, it helps to have the entire quote before you:

If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business, you didn’t build that. Somebody else made that happen.

It’s a bit impolitic, a bit overstated. But how far off is it?

As I said in The War of American Interdependence, there are two cognitive frames in competition here, one which thinks that we are fundamentally, ontologically “individuals,” fundamentally mutually independent, and one which recognizes that we are fundamentally, ontologically members of a society, fundamentally interdependent. We think in languages we didn’t individually invent, using concepts and conceptual tools we didn’t individually invent. Every aspect of our lives implicates and depends on countless others, no matter how much of a rugged individualist one may be: Few frontiersmen built their own firearms, and, if some did, they did not mine the ores that provided the materials for it. And whatever they did, in almost all cases, they learned how to do it from others.

Most of us rely on one another to a far greater extent than that: Most of us don’t grow our own food, or, if we do, we don’t build the tractors and drill for the oil and do myriad other things involved in the enterprise. Most of us don’t make our own clothes, or build our own homes, or make our own tools, or produce our own electronic devises, or, if we do some, we certainly don’t do all. The market isn’t an expression of our mutual independence, but rather a social institutional form which helps deepen and facilitate our fundamental interdependence.

Our laws, as well, are an expression of our interdependence. We forge them in the light of what that interdependence demands of us. The developments of the modern era that led to market economies and popular sovereignty framed by written constitutions with carefully delineated rights and powers are part of the evolution of our interdependence. The concept of “liberty” itself is an expression of our interdependence, of the discovery of both increased vitality and increased humanity achievable by freeing up individual initiative and creativity to as great a degree as possible, while still recognizing and working within the framework of our fundamental interdependence.

Obama was talking about exactly that. It’s not some crazy idea, it’s not even really debatable: It’s a fundamental fact of our existence. We thrive through coordinated efforts and actions, through participation in a society with divisions of labor and mutual reliance on one another. The ideology currently in vogue which attempts to erase that fact from our awareness is pernicious and destructive; it attempts to redefine private wealth as attributable to nothing other than private actions, when that’s simply not true. Ben Franklin, unsurprisingly, got it right: Wealth is as much a function of the laws and markets and other social institutions that we forge together, and of the efforts of countless others channeled through those social institutions, as it is of individual effort, because without the former our own efforts have no framework within which to achieve their ends.

So, no, even in the more exceptional rather than more common instance in which a business is built up without any element of relative privilege (the differential material and social inheritances that we draw at birth) having advantaged the entrepreneur, they are not solely responsible for the creation and success of that business; the myriad other human efforts that it implicitly depended on are as well. And the market does not magically reward all of those efforts in ways which serve the ultimate goal of continuing to create the most robust, fair, and sustainable political economy human genius is capable of.

Those who are adamant that human genius cannot intrude on some imaginary pure and absolute individual “liberty,” that to do so is “social engineering” or “communism,” are rather remarkably ignoring how that individual liberty was legally constructed in the first place. Our own Constitution is an act of “social engineering,” and, in the way that too many now use the word, a “communist” plot. Indeed, the framers had to argue that we needed a government strong enough to facilitate effective collective action in our collective interests, “The Federalist Papers” frequently seeming to forecast the later invention of “game theory” and the recognition of what has since come to be called “collective action problems.” (See Collective Action (and Time Horizon) Problems).

The right claims to rever our Constitution and our Founding Fathers, and yet can’t seem to recognize that both acknowledged our interdependence. Art. I, Section 8, Clause i of the United States Constitution empowers Congress to tax and spend in the general welfare, meaning that “what’s mine” isn’t just mine; the public also has some claim on it. How much of a claim isn’t specified; that’s for us, as the popular sovereign, to determine and redetermine, in the light of growing knowledge and udnerstanding.

And as for the Founding Fathers, their views differed. Jefferson’s and Madison’s are frequently cited, but Ben Franklin’s are generally ignored, even though Franklin alone among them helped to draft and sign every single one of our founding documents and was the undisputed senior American stateman at the birth of this country. Franklin maintained that any private wealth beyond that need to sustain oneself and one’s family “is the property of the public, who by their laws have created it” (Walter Isaacson, “Benjamin Franklin: An American Life,” Page 424, quoting Franklin).

It’s not about denigrating individual effort and initiative, or failing to respect the vital role they play in our shared social existence. I can only speak for myself, but I’ll tell you clearly: I respect and admire individual effort and initiative, and recognize it as absolutely vital to our collective welfare. It’s not about failing to recognize the need to frame our shared social existence in ways that take that into account, and work to liberate rather than stifle such individual effort and initiative: I am adamant that it is imperative that we recognize the importance of that dimension of our shared existence in every public policy debate.

But it is not the ONLY dimension that we need to consider; it is not the ONLY value that we must respect and maximize. Our nation today has the highest gini coefficient (statistical measure of economic inequality) of any developed nation on Earth, and the statistical reality of one’s socioeconomic status at birth predominantly determining throughout life is inescapable (see http://www.americanprogress.org/kf/hertz_mobility_analysis.pdf). This is not only unjust, but also systemically dysfunctional: The two most catastrophic economic collapses of the last 100 years in America were immediately preceded, by a matter of months, by the two highest peaks in the concentration of wealth in America in the last 100 years, in 1929 and 2008, respectively.

Such gross inequality of opportunity and in the distribution of wealth hurts us all, and violates fundamental American values of fairness. It is one of the challenges facing us as nation, that we have to meet and address as a nation. It’s not wrong to remind those who succeed by some combination of individual effort and good fortune, facilitated, in either case, by our entire social production function, that they succeeded by virtue of their membership in this society, and that their success does not come without reciprocal responsibilities to the society that made it possible.

And that was very clearly and explicitly Ben Franklin’s view as well as mine (in fact, his was a stronger statement of it), so if you want to vilify me for daring to recognize that the public has some claim on private wealth, be sure to vilify him as well.

Buy my e-book A Conspiracy of Wizards

Buy my e-book A Conspiracy of Wizards

(The following is a quote posted on Facebook and the exchange that followed it)

“We’re coming to a tipping point… there’s going to be a huge conversation; is government an instrument of good or is it every man for himself? Is there something bigger we want to reach for or is self-interest our basic resting pulse?” -Aaron Sorkin

DK: Each person in our great country gets to reach for something bigger or not.

SH: We are far too individualistic a society. First, our individual welfare depends heavily on how well developed are our institutions for cooperation and coordination of our efforts. Second, our liberty is a function of our unity and social cohesion, not of our disunity and social incoherence, because government isn’t the only potential agent for depriving one of one’s liberty (or life, or property, or happiness), and it’s absence ensures that other, more diffuse predators will plague everyone incessantly. Third, we are primarily expressions of a historically produced collective consciousness, thinking in languages and with concepts, operating through social institutions and utilizing technologies that we did not individually invent, but rather collectively developed over the course of generations. Our “individuality” is a unique confluence and marginal variation of both genetic and cognitive shared material. We are part of something bigger than us, and as big as it, for it flows through us and we flow through it. Government is not arbitrary; it is one valuable social institutional modality, evolved over millennia, to be refined and utilized in ever more useful and liberating ways.

DK: I grew up in a small MA community that still made decisions during annual town hall meetings. There was a strong sense of community and neighbors took care of neighbors. My grandfather was the town’s tax collector (thirty-five years) and he provided that service evenings and weekends from his home (his day job was being a shop foreman). It was very efficient as were many of the other town services, like fire and police (volunteers). Today in that same town many of these same services are full-time and the town has buildings to house them. Is there better service? Nope. But that’s small town America. My point is the closer the government is to the people the better. Our founders knew this and tried to set up a system that limited federal authority. It does allow more individualism, versus collective authority and remote control. In my opinion collectivism just doesn’t work very well (Russia). I don’t want you or anyone else bossing me around. I’ll take care of myself and do more than my fair share to help others who are in need. Only independence leads to self-actualization. As a former trust officer I saw this with trust babies. Money isn’t everything.

SH: If you’re saying that the disintegration of our communities has been horribly bad for America, and that we would be better off working toward recreating such communities again, I not only agree with you, but it is a topic I write on often, and in very specific ways. When I talk about my ideal social movement (which I do at length, in dozens of essays on my blog, Colorado Confluence), reconstructing a specific, modern form of local community is one of the three components I emphasize.

If your suggestion is that the growth in the federal governmental role in our lives is incompatible with this, or the cause of this, then I couldn’t disagree more. The primary causes of the disintegration of local community have been: 1) increased geographic mobility (and the economic incentives for it), 2) increased options for associating with people remotely (thus decreasing the need to associate with neighbors who are dissimilar to oneself), and 3) the same rise in hyper-individualism that is responsible for our diminished willingness to consider government a tool of collective action and collective welfare.

A sense of community may well have been at its height at precisely the same time that we were most willing to utilize and rely on Government as a tool for taking care of one another: During the Great Depression and the New Deal. This is because the two are more inherently compatible and mutually reinforcing than inherently incompatible and mutually inhibiting.

I agree: The closer government is to the people the better. But that’s not a geographic thing, but rather an emotional, attitudinal, and behavioral thing. First, let me point out why it’s wrong as a geographic assertion, and how our history has been, in one sense, the ongoing discovery of why it’s wrong as a geographic assertion.

At the founding of this county, many (not all) of the Founding Fathers were concerned about the potential tyranny of a more remote government, and took for granted that the more local government was more a thing of the people. In many ways, this was a very nationalistic notion, because they thought of their state as their nation (that’s how we came to change the meaning of the word “state” as we have), and they considered governments that weren’t their own true ”national” government to be imperialistic and foreign.

But our history has been one of successive increases of federal power either to increase the federal protection of individual liberty from more local government (e.g., the abolition of slavery and the 14th amendment, which catalyzed a gradual application of the Bill of Rights to state and local government as well as to federal government; the Civil Rights court federal court holdings, federal legislation, and federal enforcement), or to increase the federal role in facilitating individual liberty by increasing opportunities to thrive economically (e.g., the New Deal, the Great Society).

But a larger role for federal government does not have to be an emotionally or socially remote thing. I feel a personal connection to my two U.S. senators (one more than the other) and several of my state’s congressmen (as well as many in the state legislature and state government). In a different way (i.e., without the benefit of actual, personal interaction), I feel a personal connection to President Obama. And all of us who feel that we are in a shared national community feel that we are also in a shared local community. We tend to be more involved locally as well as nationally. I, for instance, made an effort once to reinvigorate my community, to get my neighbors more involved in our local schools and local businesses, to become more of a community. (Ironically, it is in the strongly Republican/Conservative/Libertarian enclaves such as where I live where local communities are weakest, and in the strongly Democratic neighborhoods where local communities are strongest, suggesting again that the correlation you identified is the inverse of reality.)

“Collectivism,” like “socialism” is an inherently overbroad term, and even more so in the way that it is used by modern conservatives. It is used to simultaneously refer to a set of failed totalitarian states, and to the entire corpus of modern developed predominantly capitalist but politically economic hybrid states that are the most successful economies in the history of the world. Every single modern developed nation, without exception, has the enormous administrative infrastructure that invokes those terms from conservatives, and every single one, without exception, had such an infrastructure in place PRIOR TO participating in the historically unprecedented post-WWII expansion in the production of prosperity (pre-empting an insistence that it is an unhealthy and self-defeating by-product of such wealth). In reality, the political economic form that you insist doesn’t work is the only one that ever has, on the modern scale, and the one you insist is the best imaginable has never actually existed and can never actually work.

(Sure, before the New Deal we had a much smaller federal government, but we were already using it in multiple ways to address social problems, including child labor and anti-trust laws. It only resembled the conservative ideal when we lived in a historical period that did not support any other form, due to the state of the economy and of communications and travel.)

Our founders set up a system that had the potential to articulate with and evolve according to the realities of lived history. The Constitution is brilliantly short and highly general, except in the exact design of the governmental institutions, which remain as they were outlined, with some Constitutional modifications since (such as the elimination of slavery and of their infamous designation as 3/5 of a human being, and the direct election of U.S. senators). Our nation is not some stagnant edifice following nothing more than a blueprint which perfectly predicted and mandated every placement of every brick, but rather an organic articulation of our founding principles and documents with our lived history, creating something that is responsive to both simultaneously.

No, this isn’t the America envisioned by Jefferson and Madison. It is a bit more like the one envisioned by Hamilton and Adams, and, in some ways, not nearly as “collectivist” as the one envisioned by Franklin, who considered all private wealth beyond that necessary to sustain oneself and one’s family to belong “to the public, by whose laws it was created.” But, more importantly, it is the one that the articulation of foundational principles with lived history has created. None of us can read the minds of historical figures, or impute to them with confidence what they would think today, but for everyone who says that Jefferson would be revolted by modern America, I say that it may well be that he would be delighted by it, for the ideals he helped to codify gained fuller and deeper expression, through the unexpected mechanism of a stronger rather than weaker federal government, than he was able to imagine possible. (And it was Jefferson; after all, who insisted that our social institutions have to grow and change with the times, for to fail to do so is to force the man to wear the coat which fit him as a boy.)

Community, like a well-functioning and substantial federal government, is, to some extent, all about us as a community, as a people, limiting one another’s actions and pooling resources for mutual benefit. You may not want a government bossing you around, but I don’t want corporations poisoning my air and water because they can increase the profit margin by not “wasting” money on avoiding doing so. You may not want a government bossing you around, but I want a functioning market economy rather than the undermined and unstable one that occurs in the absence of sufficient governmental regulations to ensure that centralized market actors don’t game markets to their enormous profit and to the public’s enormous, often catastrophic, detriment.

Are there challenges to be met while doing so? Does the resolution of problems create new problems to be resolved? Absolutely. Does that mean that we should rely on the never-adequate system of private charity to confront deeply embedded and horribly unjust poverty and destitution, rather than confront it as a people, through our agency of collective action, our government? Absolutely not.

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