Sunday, April 1, 2007

Why Aren't Americans Individuals?

Why has collectivism - not individualism - triumphed almost everywhere, weask?
Individualism - a genuinely free market - clearly delivers more goodsand services than a collectivized economy. People may not really careabout liberty, but surely they care about money? Why is it that even in the U.S. of A, where getting rich is practicallythe national religion, the government intervenes (in the name of the people, of course) in countless ways - from fixing key lending rates tosetting the terms of employment contracts. Part of the answer comes to us from Helmut Shoeck, who wrote a book 40 years ago called, Envy. Money isn’t everything, said Shoeck. In fact, insome ways it is less than nothing. People envy people who are richer thanthey are mostly because it confers status...not because it has anyinherent benefits.This comes from the peculiar nature of wealth. After you have the basics -adequate food, clothing, healthcare and shelter, wealth only matters in arelative way. Even if you are a multi-millionaire, for instance, you willbe relatively poor in a neighborhood of billionaires. Since it is relativewealth that counts, you will be almost as satisfied - and maybe even moresatisfied - to see your neighbors taken down a notch than to see yourselfwith a few more million. Envy is such a powerful emotion that all societies eventually have to dealwith it. In primitive societies, a rich chief might have been required tohost a giant banquet.

In the Middle Ages, laws were enacted forbiddingpeople from showing off their wealth - the sumptuary laws. People weregiven a place, or rank, in society and expected to dress accordingly.Sometimes they forced everyone to wear the same drab clothes - as in Chinaduring the Mao years - and sometimes they just took everyone’s propertyaway - as in most communist counties.
In the West, taxes were imposed.Britain and the Scandinavian countries even had marginal income tax ratesover 100% for a while.People seem to hate the idea that their neighbors are having a better timein life than they are. It makes them favor controls, regulations,taxes...in short, it makes them favor a collectivist society.

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