The Daily Caller

The Daily Caller

America is rediscovering herself

Joanne Butler
Senior Economics Fellow, Caesar Rodney Institute of Delaware

Carl Van Doren, an early twentieth century literary critic, said that America rediscovers herself about every 30 years. Grant Wood (the painter of “American Gothic”) believed the Great Depression was one of those periods of rediscovery. The drama of the debt crisis leads me to think we are rediscovering ourselves yet again.

The 2008 banking meltdown was the catalyst for some serious rediscovery work in the American psyche, resulting in profound changes in such long-held beliefs as:

* A home is your best investment and the foundation for your nest egg;

* You deserve a new car every three years or so, and while you’re at it, buy a bigger one;

* The more stuff you own, the happier you will be;

* America’s international obligations are wide and deep; and

* Government workers at all levels deserve good pay, job security and generous benefits.

In short, the financial crisis and the resulting high unemployment has forced Americans to get by with less. And they look around and ask, “If I have to get by with less, why can’t the government?”

This is a major shift from the idea of the government as the solver of every social need and contradicts FDR’s idea that one of the responsibilities of government is to ensure “freedom from want.” But it seems liberals and even some conservatives don’t completely understand this sea change in American thought.

Liberals have talked about “shared sacrifice,” where the sacrifice equals higher taxes but no alteration in D.C.’s spending culture.

Meanwhile certain conservatives are learning that America’s appetite for embarking on decades-long foreign interventions and giving blank checks to the Defense Department has waned.

Governor Chris Christie of New Jersey gets it. A key element of his argument to rein in spending has been to show that state workers are privileged compared to their private-sector neighbors. Meanwhile, USA Today ran a story this week on how some of Uncle Sam’s employees are more likely to die than to lose their jobs due to poor performance, misconduct or layoffs — thus teeing up the federal version of Christie’s issue.

I think this sea change in America’s thinking also motivates many of the House Republican freshmen, who view the debt ceiling crisis as an opportunity to finally reach that elusive goal of significantly cutting government spending.

Right now, it seems that any deal to resolve the crisis will involve major spending reductions upfront — not sometime in the future when, invariably, the temptation not to cut will be strong. This is a most welcome shift from the 1980s, when President Reagan got his tax cuts but the promised spending cuts never materialized, mostly because they were too hard to get through Congress.

I realize the current churning over resolving the debt ceiling issue makes many (including me) uneasy. But perhaps we can be encouraged by Grant Wood, who struck a hopeful note amid the Depression in 1935. He wrote that each cycle of American rediscovery, including the one resulting from the Depression, “is always slightly different, always complex in its causes and phenomena; but happily it is always enlightening.”

Today, it’s hard to see happiness in the midst of our current enlightenment, but we should remain confident that America will be stronger for it in the end.

Joanne Butler is a senior economics fellow at the Caesar Rodney Institute of Delaware. You can email her at joanne-butler@comcast.net.

  • mountainaires

    I’m not sure “America will be stronger for it in the end,” but I do think there are some fundamental shifts taking place. Unfortunately we are not going willingly; we are kicking and screaming and being dragged into REALITY nonetheless. And, remember, the Great Depression didn’t end until WWII, when we were able to ramp up manufacturing to put people back to work for the WAR EFFORT, which really was a necessary evil considering the enemy, so I’m certainly not begrudging it, just sayin’.

    The reason I’m not sure “America will be stronger for it in the end,” is that, given the current dangerous realities of the global financial system, and add in the global foreign policy dangers, and we’ve got some real threats. Historically, these situations have culminated in major wars. These days, we don’t have the resources to fight them and win them.

    So, I think such optimism is misplaced and a bit naive.

  • williamousa

    History shows that America can Survive Bank Failures, the dust bowl, world wars and just about every imaginable disaster that we can blunder into or have thrown at us.

    I believe the current debt crisis will cause great hardship to many but America will survive and even prosper in the eng, Because we are Americans.

  • polistra

    Excellent column. I’d only quibble with one point:

    “America’s international obligations are wide and deep”

    Everyone has always known that our obligations are huge.

    The NEW realization for many people is that our obligations are ALSO totally unnecessary and counter-productive. A few wise men (eg George Washington, Ralph Nader, Pat Buchanan) have been trying to tell us this for a long time, and their wisdom is finally starting to sink in.

  • carolynstairs

    However, we should expect further worsening on joblessness in the country in the next quarter because of political anxieties in the Middle East, check out an article called “High Speed University” for relation between a degree and job and the pay rate.