Updated: Aug 2, 2020
America was established as a republic, with power vested in its people through elections, rather than a monarchy, where power is vested in a single person through hereditary bloodlines. She uses this form of government to make and/or enforce her laws to manage her country. How well she manages the production and consumption of her resources, goods, and services determines the fate of her economy. The engine of the America’s economy is capitalism. Smart choice.
Laws of Nature
In an exceptionally short period of time, America has grown to become a world leader based on this straightforward yet effective capitalistic structure. But why? Simply put, it is because capitalism closely adheres to the laws of nature. Our Founding Fathers referenced this in the Declaration of Independence:
"When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation."
The Laws of Nature apply to the viability of resources, goods, and services that fuel the economy under a capitalistic model. People buy the products they like (or need) and ignore the ones they do not. Pursuing life, liberty, and happiness isn’t for the faint of heart. Although not all pursuits under a capitalistic framework end in success, all pursuits begin with the hope for success.
Blood, Sweat and Tears
Unlike a monarchy or a socialist theoretical structure, capitalism ensures that the blood, sweat, and tears shed by the individuals responsible for the production of the goods and services, from idea through consumption, have the ability to move between social classes. This American ingenuity, deeply rooted in the work ethic of those uneasy with remaining idle in their trade or profession, are typically forwarded by the middle class or those hoping to transition into the middle class. These middling sorts seek to advance their profession, skill, or trade by sharing their ideas and knowledge to lay the groundwork for the betterment of those that will eventually take their place. Understanding that hierarchy in America is a pursuit, rather than a hereditary birthright, the middling sort understand that their social standing is temporary – and can only be sustained through meeting the evolving needs of the buying power vested in the people.