A Sad Birthday for Jefferson by Gen LaGreca and Marsha Familaro Enright

On a spring day in 1743, a towering figure in our country’s founding was born: Thomas Jefferson. His skillful hand carved much of the character of America.

Today, however, what Jefferson so painstakingly crafted lies pulverized almost to stone dust. Were he alive to celebrate his birthday this April 13, instead of sipping champagne, he might want to drown his sorrow in whiskey.

What has happened to the revolutionary ideas he penned on the parchment that is the soul of America, the Declaration of Independence? How many of today’s citizens—and elected officials—understand the stirring proclamation that every person possesses certain “unalienable rights,” among which are “life, liberty, and the pursuit of happiness”?

Today, most Americans don’t understand their rights; the entire concept has been hopelessly muddied. Many now believe that if they want or need anything—from health care, to a “decent” salary, to help paying their mortgage—that they have a “right,” through government taxation and regulation, to compel others to provide it for them. As a result, our actual rights have been eroded at an ever-increasing pace.

So, in homage to Thomas Jefferson, and with his guidance, let’s examine some features of our real rights, to set the record straight.

According to Jefferson, our rights are unalienable. This means that individuals possess rights in virtue of being human. They are neither granted nor invalidated by any person, king, congress, or group. Might does not make right; individual rights are a sacred temple that even the will of the people must respect. “[T]he majority, oppressing an individual,” says Jefferson, “is guilty of a crime . . . and by acting on the law of the strongest breaks up the foundations of society.”[i] Further, because they stem from universals of human nature, these rights are legitimate in all societies and all eras. As such and properly understood, they form the rock-solid foundation of our freedom.

Contrary to modern misinterpretations, our real rights—to life, liberty, property, and the pursuit of happiness—are rights to take action; they are not entitlements to goods and services. Jefferson defined liberty as “unobstructed action according to our will within limits drawn around us by the equal rights of others.”[ii] This means we may act in our own behalf, for example, to earn money and buy health care, but we may not expect the government to tax and regulate others to provide us with health care for free.

Rights belong to us as individuals, with each of us possessing exactly the same ones. There are no “rights” of groups—be they farmers, seniors, students, workers, homeowners, or the like—to any special privileges at the expense of others. According to Jefferson, “Congress has not unlimited powers to provide for the general welfare but only those specifically enumerated [in the Constitution].”[iii] What, then, would he have thought of our current government’s using taxpayers’ money to provide privileges to countless special-interest groups—through bank bailouts, government-backed mortgages, programs for the arts, government housing, car-company loans, etc.?

As understood by Jefferson and his contemporaries, our rights include the right to property, which entitles us to keep the things that we legitimately acquire. Does a rich person have less of a right to property than a poor person? According to Jefferson: “To take from one because it is thought his own industry . . . has acquired too much, in order to spare others who . . . have not exercised equal industry and skill is to violate the first principle of association, the guarantee to everyone the free exercise of his industry and the fruits acquired by it.”[iv] What, then, would he have thought of the recent referendum passed in Oregon—typifying the practice of many states, as well as the federal government—in which a majority levied substantial additional taxes on businesses and the wealthy? Wouldn’t that seem like a few sheep and a pack of wolves deciding what to have for lunch?

Jefferson valued productive work as a noble part of the American character. When his Monticello farm fell on hard times, he began producing nails, and did so proudly because “every honest employment is deemed honorable [in America]. . . . My new trade of nail-making is to me in this country what an additional title of nobility . . . [is] in Europe.”[v] He scorned the “idleness”[vi] of the European aristocracy, calling their courts “the weakest and worst part of mankind.”[vii] He expected people to use their minds to judge conflicting ideas, overcome obstacles, and achieve goals, extolling reason as the autonomous person’s tool for successful living: “Fix reason firmly to her seat and call to her tribunal every fact, every opinion.”[viii]

When his 15-year-old daughter had difficulty reading an ancient text, he admonished: “If you always lean on your master, you will never be able to proceed without him. It is part of the American character to consider nothing as desperate—to surmount every difficulty . . .” Americans, he continued, “are obliged to invent and to execute; to find the means within ourselves, and not to lean on others.”[ix] What, then, would he have thought of today’s government “entitlements,” which encourage idleness while discouraging people from making their own decisions?

Jefferson swore “eternal hostility against every form of tyranny over the mind of man,”[x] ardently defending the spiritual and intellectual freedom of the individual. He held that a person’s beliefs and values were an entirely private matter and that “the legislative powers of government reach actions only, and not opinions.”[xi] What, then, would this champion of freedom of religion, speech, the press, and conscience have thought of recent threats and insinuations by public officials to influence the content of radio programs? What would Jefferson have thought of a president, able to wield the full coercive powers of the state, discouraging people from listening to the opposing viewpoints of private individuals?

As individuals possessing the right—and glory—of self-sovereignty, what, then, is the proper role of government in our lives? The Declaration explains “that to secure these rights, governments are instituted among men.” Wise government, Jefferson elaborated, “shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned.”[xii] Government’s exclusive purpose is to protect us from acts of force or fraud, which violate our rights—e.g., to apprehend and punish aggressors who would pick our pockets or break our legs—but otherwise, to refrain from regulating or controlling our lives.

Jefferson’s vision provides “for a government rigorously frugal and simple . . . and not for a multiplication of officers and salaries merely to make partisans . . .”[xiii] What, then, would he have thought of today’s ever-growing swarms of agencies, commissions, and departments that, following King George III, “harass our people, and eat out their substance”?[xiv] What would he have thought of the 2,700-page health-care reform bill passed in the dead of night, with backroom bribes used to obtain the votes of congressmen unclear about its massive contents and implications? Do we have any doubt that Jefferson would be horrified by such corruption and by the dangerous, unprecedented powers this legislation has granted to the state?

Thomas Jefferson fought for a country in which the government had no power to encroach on the mind, the life, the liberty, or the property of the individual. He fought for a country in which the individual, for the first time in history, could live for the pursuit of his own happiness instead of being a pawn in the hands of the state.

Within a mere page of the calendar of history, the world-shaking recognition that freedom is every person’s natural state and sacred right led to the abolition of slavery, the suffrage of women, and the spread of human freedoms in nations around the globe. The dawn of liberty upon the modern world began with the founding principles of America, which the author of the Declaration of Independence so ably articulated.

On Thomas Jefferson’s birthday, we must grasp again and hold dear the fragile gem of freedom that he so carefully carved. We must protest the hammering away at our individual rights by the ignorant, the deceived, and the unscrupulous. And we must polish the ideals for which Jefferson pledged his life, his fortune, and his sacred honor.

***

Gen LaGreca is author of Noble Vision, an award-winning novel about the struggle for liberty in health care today. Marsha Familaro Enright is president of the Reason, Individualism, Freedom Institute, the Foundation for the College of the United States


[i] Letter to P. S. Dupont de Nemours, 1816

[ii] Letter to Isaac H. Tiffany, 1819

[iii] Letter to Albert Gallatin, 1817

[iv] Letter to Joseph Milligan, 1816

[v] Letter to Jean Nicolas Démeunier, 1795

[vi] Letter to Peter Carr, 1787

[vii] Travelling Notes for Mr. Rutledge and Mr. Shippen, 1788

[viii] Letter to Peter Carr, 1787

[ix] Letter to Martha Jefferson, 1787

[x] Letter to Benjamin Rush, 1800

[xi] Address to Danbury Baptist Association, 1802

[xii] Inauguration Address, 1801

[xiii] Letter to Elbridge Gerry, 1799

[xiv] Declaration of Independence, 1776

Copyright © 2010 by Marsha Familaro Enright and Gen LaGreca. Permission to reprint is granted with attribution to the authors and inclusion of their byline.

Permanent Link: http://fountainheadinstitute.com/a-sad-birthday-for-jefferson/

Originally published at: http://dailycaller.com/2010/04/09/a-sad-birthday-for-jefferson/

Published April 9, 2010 at The Daily Caller

A lesson in profit by Gen LaGreca and Marsha Familaro Enright

Addressing a joint session of Congress on health care, President Barack Obama reiterated his often-expressed aversion to the profit motive:

“[B]y avoiding some of the overhead that gets eaten up at private [health insurance] companies by profits and excessive costs and executive salaries, [the public insurance option] could provide a good deal for consumers, and would also keep pressure on private insurers to keep their policies affordable and treat their customers better . . .”

Is this true? Is profit wasteful, as Obama implies? Does it lead to higher prices and lower value to consumers? Can the government, unburdened by profit, do the same job as a private company, only cheaper and better?

To answer, let’s consider one business, one product, and one profit-seeking man who lived at a time when the market operated largely free of government subsidies, bailouts, regulations, taxation, and other “progressive” intrusions.

Henry Ford, at age 13, saw a steam-driven land vehicle, a “road locomotive,” which filled his imagination with the vision of a horseless carriage and fueled a passion to create one. As a young man, he worked day jobs, while trying to build a car in his free time. Realizing a viable car could not run on steam, he sought to develop a new kind of engine.

On Christmas Eve 1893, the 30-year-old inventor clamped his first gasoline engine to his wife Clara’s kitchen sink. With the home’s electricity providing ignition, the motor roared into action, sending the sink vibrating and exhaust flames flying while Clara prepared the holiday dinner.

In pursuit of his dream, Ford and Clara moved eight times in their first nine years of marriage. He quit a secure job at the Edison Illuminating Company, banking everything on his vision. He co-founded the Detroit Automobile Company—a venture that failed. Jobless, Ford moved his wife and child into his father’s home. But he kept working on his car. “It is always too soon to quit,” he said.

Ten years passed from the roar of the little engine on Clara’s sink to the launch of the Ford Motor Company. It took five more years to produce his big success, the Model T, and additional years to master its mass production.

Why did Ford persist through years of hardship and uncertainty? How much would his love for the work have sustained him without the hope of eventual profit? Imagine if he had lived in a system where politicians could, at the stroke of a pen, seize his profits or decide how much he could keep. Would he have risked so much or worked so ferociously to bring a world-changing invention to market?

Would an Amtrak employee devote a decade of free time inventing a new train, only to rise a notch on a civil-servant’s pay scale? Dream big, work hard, create something earth shaking, but be paid small is the antithesis of the American dream.

The pursuit of profit not only motivated Ford, but also his bold investors who had the foresight to realize the horse was doomed.

In 1903, a school teacher invested $100—half her life savings—in the Ford Motor Company. Sixteen years later, she sold her stock for a total gain of $355,000. Why would she and others place their money on a highly experimental venture, were it not for the hope of tremendous gain should the enterprise succeed? What kind of person would deny her the reward for recognizing Ford’s vision and risking her own money?

The pursuit of profit also impacted every aspect of Ford’s business operations.

Ford didn’t need a politician’s scolding to lower prices—only the desire to make huge profits by reaching mass markets. Because early cars were expensive, people viewed them as mere playthings of the rich. But Ford sought to “build a motor car for the multitude.” This led him to develop his moving assembly line, significantly reducing manufacturing costs and, consequently, prices. The original $825 price of the Model T finally bottomed at $260. That price-lowering strategy brought him the millions of customers that made him rich.

Similarly, Ford’s pursuit of profit didn’t result in bare-subsistence wages for employees, but in phenomenal pay increases. He shocked the world by introducing the $5 workday, more than doubling the era’s prevailing wage. Why? To attract the best workers, whose talents increased product quality and company efficiency. High pay also decreased employee turnover and training costs, again increasing Ford’s profits.

Ford typifies the successful capitalist, whose profit-driven innovations lower prices, while raising wages and living standards for all.

Even today’s Ford Motor Company, a much-fettered child of our mixed economy, demonstrates the superiority of private- over government-run companies. Ford refused TARP bailout money, choosing to operate without government strings. The result? Ford’s profits are up 43 percent, while bailed-out GM and Chrysler lag behind.

In Henry Ford—a thin man who was the fattest of fat cats—we see an embodied refutation of President Obama’s worldview. Ford developed a new form of transportation vastly cheaper, faster, more convenient, and superior to the old mode. He continually lowered prices so that everyone, rich and poor, would have access to his product. He created thousands of jobs. He raised employee wages. He did all this good without government grants, bailouts, stimuli, subsidies, or coercion, but simply as a result of the honest pursuit of personal gain.

This achievement was possible only because a private individual had the freedom to pursue his own self-interest, in cooperation with others who supported his vision and shared in the rewards, unencumbered by government.

By eliminating profit, Obama implies that everything else about an enterprise would remain the same, only the product would be cheaper and better. Actually, by removing profit, nothing at all would remain the same.

Contrary to Obama’s notions, profit is not an overhead cost, but a vital gain sought over and above costs in order to reward a company’s risk-takers. According to economist Ludwig von Mises, “Profit is the pay-off of successful action.” And “The elimination of profit . . . would create poverty for all.”

Eliminate the hope of profit, and you extinguish that spark which ignites the human engine and powers it to explore uncharted roads: the creative mind. Profit is the proud product of the creative mind, and the creative mind is an attribute of the individual. Obama’s attack on profit is an attack on human creativity and innovation, which is an attack on the individual.

Obama’s antipathy for the self-interested individual is explicit. “In America, we have this strong bias toward individual action,” he said in an interview in the Chicago Reader. “But individual actions, individual dreams, are not sufficient. We must unite in collective action, build collective institutions and organizations.”

It was Henry Ford’s individual actions and individual dreams that brought motorized, personal transportation within reach of everyone in the world.

America is rooted in the “pursuit of happiness”—which means the right of each of us to create, to produce, to rise, to succeed, and to profit from the fruits of our labor. Contrast this worldview with that of a president who disparages the individual and seeks to limit or expropriate his profits on behalf of a faceless “collective.” Obama’s war on profit is a war against the individualist heart and soul of America.

Profits are a badge of honor earned by someone who offers others something they value enough to buy. The first buyer of the first car of the Ford Motor Company was a doctor. He was tired of hitching up his horse and buggy for nighttime emergencies. Ford’s product enhanced his life, as it later enhanced the lives of millions. Profit is the medal Ford received from his customers for a job well done.

If our nation is to cultivate productive geniuses like Henry Ford, it must proclaim that the quest for profit is moral and noble.

POSTSCRIPT: Transportation Secretary Ray LaHood recently announced “the end of favoring motorized transportation at the expense of non-motorized.” This means that the federal government, with its vast powers to fund highway projects, “liveability” initiatives, and other aid programs, as well as to tax gasoline, now intends, in LaHood’s stunningly brazen words, “to coerce people out of their cars,” in favor of walking or cycling. A century ago, Henry Ford, through capitalism and the profit motive, brought motorized transportation to the world. Now, an alarmingly anti-capitalist government is reversing that historic achievement and pulling us back to the pre-industrial age.

Gen LaGreca is author of “Noble Vision,” an award-winning novel about the struggle for liberty in health care today. Marsha Familaro Enright is president of the Reason, Individualism, Freedom Institute, the Foundation for the College of the United States. Incidents from the book “Young Henry Ford,” by Sidney Olson appear in this article.

Copyright © 2010 by Marsha Familaro Enright and Gen LaGreca. Permission to reprint is granted with attribution to the authors and inclusion of their byline.

Permanent Link:  http://fountainheadinstitute.com/a-lesson-in-profit/

Originally published at: http://dailycaller.com/2010/03/31/a-lesson-in-profit/