America's Blueprint for Success

“Rugged Individualism is a unique component of America’s DNA, a key ingredient in what makes America exceptional”. – Rugged Individualism

Another Labor Day signals the end of summer and the return of children to school.  The first Monday of September, Labor Day became a federal holiday in 1894 after President Cleveland signed the bill into law.  Labor Day recognizes the contributions of the American worker to the country’s prosperity.  While labor unions like to take credit for worker ingenuity, it was the secret sauce of self-sufficiency and personal responsibility that made America great. 

In fact, it was the founding principles of equal opportunity and individualism that aided in the development of the character of the American frontiersman.  Herbert Hoover would coin the phrase “rugged individualism” in 1928, believing that autonomous individuals didn’t need the assistance of government.  And when individuals live responsibly, the role of government is proportionately diminished.  By conquering the western frontier through hard work and self-sufficiency, America became the envy of the world.  As such, people would succeed on their own and be responsible for their own economic well-being. 

In David Davenport and Gordon Lloyd’s 2017 book, “Rugged Individualism”, the authors tell the story of the birth of individualism as the prevailing idea in the Declaration of Independence and the Constitution, and its repeated attacks throughout history.  One of the most essential promises of the founders was that the individual, not monarchs or dictators, would be at the core of American society.  Thus, individualism drove the social and political philosophy that emphasized personal responsibility and limited government.  These principles were unique to America, while other nations adopted various forms of collectivism. 

Rugged Individualism is best defined as the character trait that gave Americans their sense of independence.  American pioneers, faced with unlimited opportunities, expanded westward, conquering the wilderness as they journeyed ahead. The barrenness of the land would require a unique quality to endure the challenges of the time, leading to a strong culture of individualism.  These explorers became innovators to imitate, not robber barons to be envied.  Their hard-fought gains inspired a strong opposition to the idea of redistribution schemes and government handouts. 

Separated from Britain due to a perceived loss of freedom and liberties, the new America relied on the concept of natural rights that came from its creator, enshrining those rights in the Declaration of Independence and the Constitution.  Individualism was manifested in religion, where the individual was defined as a child of God with a personal conscience, responsible to God for their behavior and choices, and endowed with free will.  It was here that the individual became the basis for society. 

It was the progressives who first tied rugged individualism to the western expansion, which by the early 1900s, had all but been conquered.  Then, when the Industrial Age and a shift to city life made the frontier moot, this allowed the government to intervene at the first signs of unequal distribution of wealth.  But wealth is not distributed in a free society; wealth is earned. 

Individualism extended to the economy as well.  The father of classical economics, Adam Smith, noted in his blockbuster book, “The Wealth of Nations”, that a nation's riches came from free barter and exchange.  Individuals acting in their own best interests would result in the responsible use of scarce resources to best meet the needs of all people.   The anti-interventionist philosophy of private ownership, along with competition in the market, produces better results for the nation than any involvement from the government. 

Franklin D. Roosevelt was the first to exploit inequality to expand both the size and scope of government, thus changing the Constitution from one that protects individual rights to one that looks to equalize outcomes for the masses.  Johnson’s Great Society and Obama’s Affordable Care Act would only trap more individuals in the web of dependency, with a growing focus on marginalized groups over individual initiative.  But as we have seen, as the shift tilted too far to equality, it left too little liberty, thus changing the character of America.  Too little pushback from either side of the political aisle resulted in the slippery slope to more government and the eventual takeover by an administrative state.  Once constitutional limits became a problem for those who wished to grow government, they began chipping away at each limit to change America from a democratic republic to a pure democracy of top-down authoritarianism.

The early lesson of the Forgotten Depression of 1920-1921 became known as the recession that cured itself without the interference of the government.  Instead of intervention, President Hoover took a hands-off approach, allowing the markets to self-correct, leading to what became known as the Roaring 20s.  The Great Depression that followed did the opposite.  Instead of allowing markets to self-regulate, the government doled out aid, leading to a surge in idleness that severely damaged the morals of the people, harming the role that rugged individualism had played in American life. 

A barren wasteland in the nineteenth century created the rugged individualism that first defined America.  Today, a resurgence in that principle may emerge from new frontiers arriving in the form of a gig economy, with social media sites like TikTok and YouTube, which have put the individual innovator and influencer in a position to earn their living as networked digital workers.  This new Information Age is once again redefining the individual as an economic powerhouse.    

And it can’t come too soon.  A return to individual initiative may be needed to dig America out of its 37 trillion dollar hole.