Civilization probably started about seven thousand years ago when people began to settle down into farming communities. Their lives generally revolved around cooperation within the communities and sorted itself out into five general areas: The Family: Whose responsibility was the raising of children and providing the immediate personal security and comfort of the family members. Education: Some form of training the young of the community - either family based or the responsibility of someone chosen by the community. Religion: Generally moral rules and explanation of the Cosmos and human's place in it. Economics: Some form of exchange of goods and services and sometimes some form of measurement of social standing within the community. Government: That social institution with the responsibility for community organization, protection, and control.
All civilizations since that humble beginning have organized themselves in some form of similar social institutional framework. In modern times two social ideas have dominated most existing cultures: The concept of the worth of the individual and the belief that individuals should be a free and autonomous as possible consistent with the basic requirements of civilized communal living; and the idea spinning off from that one, that in the realm of Economics, activity that directly benefited the individual was most likely to advance the culture, e.g. Capitalism.
Throughout history the idea of the economic individualist has been tempered by the need for some order and control to keep the individual from using his economic power to hurt other members of the culture. Historically, the first modern Capitalist was probably Jacques Coeur - a Flemish merchant who in his lifetime managed to gain economic control of France - and indeed most of Europe - during the first half of the fifteenth century. Not an aristocrat, he managed to become the wealthiest man in the Western world at that time. The existing governors and religious leaders of hid time regarded him as a threat and eventually managed to overpower his financial empire.
While those governments were certainly not democratic, in more modern times most governments of democracies have regarded the unbridled capitalist with concern as the idea of absolute individualism has seemed to clash with the ideals of democratic civilization. The United states has tended to favor individual rights in the economic sphere, but always have exerted some governmental controls on private enterprise, either by regulating activity of by taxation. In modern times, taxation of individual and corporate enterprises has been the major source of government income.
Since representative democratic government generally works for the good of individuals within the nation, government expenditures have always encouraged the growth of private economic success. In recent U.S. history, the fastest and greatest economic growth and rise in the standard of living for all citizens has been during times when the tax rates and government expenditures were relatively high. Those times when the U.S. loosened its controls on the economic sphere have inevitably led to economic downturns. Apparently in an economically mature nation a robust middle class spreading the accumulated wealth downward is necessary if that nation is to maintain its economic wellbeing.
Europe managed its economic rise to high mass consumption (the primary indicator of economic maturity) by maintaining a favorable balance of trade with non-european parts of the world. In this modern world, this is no longer possible, which had led to severe economic problems. The U.S. has never done this - quite the reverse - but has still managed to become the most important world economic power.
Recently some short-sighted government policies and a refusal to allow government stimulus, which has been so powerful and successful in the past, to play its part in the U.S. economy. Apparently this is because of a belief that such government action will somehow hurt individual capitalists - despite history telling us otherwise.
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