On Responsibilities

As today marks the passing of Baroness Margaret Thatcher, the “Iron Lady,” who served as Britain’s Prime Minister from 1979 to 1990, it is necessary to remember that her convictions were not new. They were shared by none other than Americans like President Coolidge. Thatcher was born in a relatively small market town called Grantham in England, in the second year of Coolidge’s presidency, during the same fall that his secretary, C. Bascom Slemp, was preparing a collection of his speeches, which would be published the next year as “The Mind of the President.” In that collection, Coolidge would express an unshakable optimism in the ability of Americans to govern themselves, saying, “The institutions of our country rest upon faith in the people. No decision that the people have made in any great crisis has ever shown that faith in them has been misplaced. It is impossible to divorce that faith which we have in others from the faith which we have in ourselves.”

Perhaps entirely unaware of these words, Prime Minister Thatcher would echo that same confidence in her people to retain their self-sufficiency, “If our people feel that they are part of a great nation and they are prepared to will the means to keep it great, a great nation we shall be, and shall remain.” She would affirm in the same 1980 speech, “[I]t is not the State that creates a healthy society. When the State grows too powerful people feel that they count for less and less. The State drains society, not only of its wealth but of initiative, of energy, the will to improve and innovate as well as to preserve what is best. Our aim is to let people feel that they count for more and more. If we cannot trust the deepest instincts of our people we should not be in politics at all. Some aspects of our present society really do offend those instincts. Decent people do want to do a proper job at work, not to be restrained or intimidated from giving value for money. They believe that honesty should be respected, not derided. They see crime and violence as a threat not just to society but to their own orderly way of life. They want to be allowed to bring up their children in these beliefs, without the fear that their efforts will be daily frustrated in the name of progress or free expression.”

Coolidge in 1914, as Thatcher’s father was going to war, would praise self-sufficiency and warn against the destructive actions of government activity, “The people cannot look to legislation generally for success. Industry, thrift, character, are not conferred by act or resolve. Government cannot relieve from toil. It can provide no substitute for the rewards of service. It can, of course, care for the defective and recognize distinguished merit. The normal must care for themselves. Self-government means self-support.”

Thatcher would again sound familiarly Coolidge-like in a 1987 interview, when she observed, “I think we have gone through a period when too many children and people have been given to understand ‘I have a problem, it is the government’s job to cope with it!’ or ‘I have a problem, I will go and get a grant to cope with it!’; ‘I am homeless, the government must house me!’ and so they are casting their problems on society and who is society?

“There is no such thing! There are individual men and women and there are families, and no government can do anything except through people and people look to themselves first.

“It is our duty to look after ourselves and then also to help look after our neighbour and life is a reciprocal business and people have got the entitlements too much in mind without the obligations.” 

Coolidge, in retirement, would presage the danger of the entitlement mindset and its parent, unrestrained government spending, “This country was not made on the theory that we should ‘eat, drink, and be merry, for tomorrow we die’…Instead of falling back and falling down on the claim that the world owed them a living, they moved forward and moved up on the principle that they owed the world the duty of providing for themselves…One of the most astounding spectacles is the complacency with which people permit themselves to be plundered by extravagant governmental expenditure under the pretense of taxing the rich to help the poor. The poor are not helped but hurt…A higher tax means real wages are lower. The cost of living is higher. The chance to work is less. Every home is burdened. Its value is decreased. The Congress and the legislatures know these results of extravagance…Those who demand appropriations inspire all the fear. Aggregate state and town debt, national and local taxes are increasing enormously. Unless the people resist vigorously and immediately they will be overwhelmed.”

Speaking again, forty-nine years later, Thatcher explained the same harmful mentality underway in Britain, namely, “to add to public spending takes away the very money and resources that industry needs to stay in business let alone to expand. Higher public spending, far from curing unemployment, can be the very vehicle that loses jobs and causes bankruptcies in trade and commerce. That is why we warned local authorities that since rates are frequently the biggest tax that industry now faces, increases in them can cripple local businesses. Councils must, therefore, learn to cut costs in the same way that companies have to.”

Baroness Thatcher is no longer with us but her principles endure. They remain necessary no less now than in 1980 or in 1925. They are necessary because they truly understand human nature and are grounded in the moral responsibilities of people both to themselves and to each other. For Coolidge, in the same year Thatcher was born, declared, “I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant…If extravagance were not reflected in taxation, and through taxation both directly  and indirectly injuriously affecting the people, it would not be of so much consequence. The wisest and soundest method of solving our tax problem is through economy…Whenever taxes become burdensome a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them.”

Such is the benefit coupled with the responsibility of self-government taught by British Prime Minister Thatcher and the American who preceded her, President Calvin Coolidge.

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Remembering a President’s Inaugural

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This morning while waiting in line, a news network reminded its viewers of the March 4, 1933 inaugural address of Franklin D. Roosevelt. To hear the reverence in the voices of those on the air, one would think any history worth remembering began with that infamously famous Presider over Depression, New Deal and World War. The thirty-six March 4th inaugurations before that time — 144 years of history — simply aren’t worth mentioning. One of those neglected thirty-six deserves mention here. In fact, it deserves our attention and study. It was March 4, 1925, the occasion of President Coolidge’s first formal inauguration after a resounding electoral victory in his own right the previous November. It is on this day, eighty-eight years ago, that he declared,

          If extravagance were not reflected in taxation, and through taxation both directly and indirectly injuriously affecting the people, it would not be of so much consequence. The wisest and soundest method of solving our tax problem is through economy. Fortunately, of all the great nations this country is best in a position to adopt that simple remedy. We do not any longer need war-time revenues. The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. Under this Republic the rewards of industry belong to those who earn them. The only constitutional tax is the tax which ministers to public necessity. The property of the country belongs to the people of the country. Their title is absolute. They do not support any privileged class; they do not need to maintain great military forces; they ought not to be burdened with a great array of public employees. They are not required to make any contribution to Government expenditures except that which they voluntarily assess upon themselves through the action of their representatives. Whenever taxes become burdensome a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them.

Those are words worth remembering today. When self-government is responsibly exercised in this way, we have no reason to fear for the continuance of liberty under law.

On Wealth and Profits

Against the attempts to demonize “wealth” and “profits” eighty years ago, President Coolidge, in characteristic fashion, raised some fundamental question: if people do not make profits, from where do wages come? Who pays for the costs of production? By what means are people’s lives made better if not by the service of profitable businesses and wealth accumulation? He addresses each of these questions in his daily articles. It is his article from March 25th, 1931 that directly attacks the illogical hostility to “wealth.” Introducing the gift of one such wealthy individual upon her death of an estate just under $75 million (which would be about $1.1 today) to charity, he calls on the reader to remember what benefits result from such accumulation. It is, he would write, “one of the foundations of our progress. Distributed per capita, it would be ineffective; in accumulation, it supports our industries, raises the standard of living and endows educational, religious and charitable institutions. Almost all the time we find it genuinely employed in the service of the people.” Coolidge was hardly naive about those who abused great wealth, “chiefly to their own harm,” but neither did he ignore the multitude of exemplary men and women, like Ella Wendel in this article, who endowed libraries, museums, schools, foundations and numerous institutions dedicated to the betterment of people everywhere. The successful individuals who bequeathed them to us may be gone but their example and stewardship deserve our respect and emulation.

Image Ella Wendel with her dog, Toby

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Andrew Carnegie, whose endowments made possible over 2,500 libraries around the country and overseas.

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Andrew Mellon, pictured here with Amelia Earhart, gave the country the National Gallery of Art with his own collection forming its nucleus. Mellon also gave much to help numerous individuals during his lifetime and to fund several scientific innovations and private institutions long after he was gone.

None of these successful people could have given so much to so many without the accumulation of wealth derived from work.