“The Forgotten Man is the simple, honest laborer, ready to earn his living by productive work. We pass him by because he is independent, self-supporting, and asks no favors. He does not appeal to the emotions or excite the sentiments. He only wants to make a contract and fulfill it, with respect on both sides and favor on neither side.” – The Forgotten Man
Nobel Prize-Winning Economist Milton Friedman described the four ways people can spend money. First, we can spend our own money on ourselves. When we do, we are careful about how much we spend and purchase something we highly value. Next, we can spend our own money on someone else. In this case, we are still careful about costs, but place less value on the purchase. Third, we can spend other people’s money on ourselves. Here, we are much less likely to care about the cost, but still, seek something of high value. Lastly, we can use other people’s money on someone else. It is here that we are at our worst. Money is no object, and the usefulness of the product or service is of little significance. This final example is the subject of today’s blog.
Social justice sentiments go something like this: A and B get together and decide what C should do for D. But who exactly is represented in this scheme?
A and B are the instigators, the do-gooders, and the social justice warriors. They may be represented by humanitarians, legislators, academics, or more likely, busybodies. They are the ones who decide what others ought to do and find great pleasure in being benevolent with other people’s money, usually through the force of the state and taxation. They see disparity around every corner and dole out the same remedy every time, that is, the redistribution of other people’s money to their prized target. Their idea of inequality is always determined by differences in material possessions and never based on differences in virtue, intellect, or personal agency.
Next in the equation is C. Back in the late nineteenth century, William Graham Sumner coined the term, “Forgotten Man”. He was the one that Sumner thought was victimized by the social activists. He was largely the working-class man, ordinary and invisible. He worked hard, fulfilled his contracts, and took care of this family. He was frugal, cultivated his talents, and was a man of high character. His virtue was reflected in the way he lived his life. He asked nothing from anyone.
D is the poor man. But not all poor men are D. He is the poor man who felt victimized by the system. His poverty was largely caused by laziness and incompetence. He was often addicted to alcohol, drugs, or gambling. His poverty was the result of the choices he made in life. He happily took what he could get from others. D was also occasionally the contented man, who through constant coaxing, became convinced that he too, was a victim in need of amends.
In 1932, Franklin D. Roosevelt described a very different “Forgotten Man” when promoting his New Deal plan for America. This man was poor, too, but his poverty was not defined. In fact, it included all men who lacked provisions, regardless of the reason. Want became generalized. FDR simply shifted the “Forgotten Man” from C to D.
In modern times, it is said that there are three rules for staying out of poverty: graduate from high school, get a job, and get married before having children. It seems reasonable that these steps would reduce the odds of poverty. Two incomes would certainly provide more for the family, with enough to set aside. Two parents would surely help relieve the challenges of raising children. The typical result is more money, more resources, and greater wealth overall. The opposite can be found for those who chose the other path. They often have less money, are raising children alone, and are generally worse off. Are these outcomes unfair? To whom? The ones who followed the rules or the ones who didn’t?
In William Graham Sumner’s 1883 book, “What Social Classes Owe to Each Other”, Sumner describes his “Forgotten Man” in a series of essays. A leading intellectual during the Gilded Age, Sumner was a classical liberal social scientist who held the first professorship in sociology. While many deem state intervention necessary to remedy injustices and resolve conflicts, Sumner advocated for a society that functioned on cooperation and individual rights and did not believe in using the coercion power of the state to oblige one group to fulfill the demands of another.
There is a coordinated prejudice in today’s culture to favor the poor over the rich. The poor are viewed as saints; the rich, as evil. Certainly, all wealthy people did not earn their money nefariously, and surely some poor folks are responsible for their predicament. Negative consequences are nature’s most effective way of warning one to reform oneself. Interventions, like welfare and subsidies, often repel the penalties necessary to create a positive change in one’s life.
Man’s first obligations are to himself and his own family. When preparing for takeoff on an airline, we are always reminded, “In case of a cabin pressure emergency, put on your own mask first before assisting others.” While support and empathy towards those less fortunate is the responsibility of all of mankind, it is most effective and enduring when it is offered privately and directly. A man helps society most by securing his own life, and thus not making himself a burden on others. That is his first and most important act.
As Sumner concludes: “When the Forgotten Man is drawn from his obscurity, we see that he is just what each of us ought to be.”
Comentarios