Ten Recurring Economic Fallacies, 1774?2004: The question for us is: What have we made of it? No one can justly appreciate the natural resources of this country until, by studying the deleterious effects of bad currency and bad taxation, he has formed some conception of how much, since the first settlers came here, has been wasted and lost."
The unseen again. Let us begin with geography and resources, to which Sumner alludes. The lower 48 states are entirely in the temperate zone. Apart from the desert states of the southwest, all receive ample rainfall. Most of the land is fertile, and it is abundant. The country teems with natural resources.
Then there are the people. Until very recently, the United States enjoyed a low density of population, which meant high wages and low land prices. And for centuries, the population has been one of the hardest working in the world, creating an infrastructure to build on. Then there is the culture. Largely because of the influence of Christianity, the debilitating sin of envy has no social standing here, unlike the Third World where it is perhaps the chief impediment to wealth-creation and development.
Also, for the same reason, there is little bribery, which also impedes growth. Finally, there is the tradition of law, respect for private property, tradition of profit, and contractual freedom. These institutions?and not the fallacious ideas, corrupt institutions, and bad policies named above?form the core of American prosperity.
