Centennial Institute

Re
Centennial Review

gis

Ar ich enve serva

an eak ernC
Colorado Christian University

He Bro Mal ly 10 Summ

ter

th el r, tiv
d M in D on
sp West

a r oks kin .
ur le Ju e
a
8787 W. Alameda Ave.

t
Lakewood, CO 80226

Return Service Requested

Principled Ideas from the Centennial Institute Publisher, William L. Armstrong
Centennial Review Volume 2, Number 6 • July-August 2010 Editor, John Andrews

it.
July-August 2010

The Battle:
Free Enterprise vs.
Big Government
By Arhur C. Brooks Come hear Arthur Brooks speak on "The Battle" at the
Earned success and limited govern- WESTERN CONSERVATIVE SUMMIT  July 9-11  Denver Marriott South
ment are the happiness preference Centennial Institute invites you to Colorado for our first annual leadership
conference on setting America right. Keynoters include Michele Bachmann,
for 70 percent of Americans. Why
Dick Morris, Dennis Prager, Michelle Malkin, and Gen. Jerry Boykin.
do the other 30 percent set policy?
Register today at www.WesternConservativeSummit.com or call 303.963.3424
the heavy hand of the state. It is traditional in its American
values, yet perpetually new in its outlook. It naturally disdains
the soul-sapping nature of Big Bureaucracy and the protected
mediocrity of Big Labor. It has a healthy suspicion of the
Faustian tendencies of Big Business—divorced from the
entrepreneur’s ethics—to crawl into bed with the government.
In short, free enterprise is an act of self-expression and a
declaration of what we hold dear.
Americans do not naturally talk about free enterprise in such
rhapsodic terms. And as a result, redistributionists have been
Centennial Review, July-August 2010 ▪ 4
able to set the terms of the national debate by characterizing
free enterprise as just one economic alternative among many
(and a harsh, unfair one at that).
The truth is that free enterprise is not just a money machine—it is a
happiness machine. The 70-percent majority may use the language
of commerce and business to show that Obamanomics is
inefficient and will be bad for the economy. But in order
to truly win the new American culture war, we must do
more. We must show that free enterprise is an expression of
American values and grounded in an understanding of the
human heart. ■
co
m
THE BATTLE: there may be severe ups and downs from time to time, or
don’t you think so?” Almost 70 percent agreed that they
FREE ENTERPRISE vs. were better off in a free-market economy. Only 20 percent
BIG GOVERNMENT disagreed that America is better off with a free-market
economy.
By Arthur C. Brooks
Similar majorities believe that government should make
free enterprise easier, not harder. In a 2009 poll by the
When President Barack Obama
firm Ayers-McHenry, 63 percent of Americans agreed
addressed the graduating seniors at
that “Government policies should promote opportunity
Arizona State University on May 13,
by fostering job growth, encouraging entrepreneurs, and
2009, he had a word of warning for
allowing people to keep more of what they earn.” Thirty-
them: Don’t “fall back on the formulas
one percent disagreed, favoring instead, “Government
for success that you have been peddled
policies should promote fairness by narrowing the gap
so frequently,” he told them. Instead,
between rich and poor, spreading the wealth, and making
it was time to reject the pursuit of “the
sure that economic outcomes are more equal.”
usual brass rings” and the materialism
“that has been in our culture for far too long.” Any way you cut it, only about a third of Americans think
As he spoke these words, Mr. Obama was With his agenda to we would be better off without the
free-enterprise system. Yet the views of
in effect declaring a new culture war in
America. Not a struggle over God, guns, 'spread the wealth,' this “30-percent coalition” are currently
being foisted on the 70-percent
or gays, important as those issues are for Obama has declared
majority. And that’s why Americans
many of us (and, of course, on which
the president has his own strong views). a new culture war. (of all political parties and even those
not previously politically active) are
No, this new culture war centers on free enterprise—the
beginning to rebel against President Obama’s kulturkampf
principle at the core of American character.
on free enterprise.
What is it about free enterprise that so many American
The populist uprising began in the spring of 2009 with
progressives find objectionable? In short, it is the unequal
the Taxed Enough Already (“tea party”) protests. The
outcomes it produces. And for many of them, inequality
media tried to portray these grass-roots demonstrations
is an indicator of injustice. The way to solve this problem,
against growing government power as the work of radicals
as candidate Obama famously told Samuel Joseph
outside the American mainstream. But according to a poll
Wurzelbacher (“Joe the Plumber”) on the campaign trail
conducted less than a week after tax day 2009, more than
in October 2008, is by “spreading the wealth around.” In
half of Americans viewed the protests favorably, and, of
other words, government will decide who gets what. The
these, 32 percent viewed them “very favorably.”
government will “level the playing field” and thereby build a
fairer, more egalitarian, more just culture in America.
Arthur C. Brooks is president of the American Enterprise Institute, a former
Perverse Policies in a 70–30 Nation
professor of business and government policy at Syracuse University, and the
The redistributionists aim to remake America in their own author of seven books, most recently The Battle: How the Fight Between Free
Enterprise and Big Government will shape America's Future. He had a career as a
image. But they face an uphill struggle—and they know it.
classical musician before earning his doctorate from the Rand Graduate School.
Why? Because poll after poll shows that a large majority
This essay is based on his speech during an AEI-Centennial Institute seminar on
of Americans prefer the free-market system over the democratic capitalism, March 19, 2010, in Denver.
alternatives. For example, in March 2009 the non-partisan
Centennial Institute sponsors research, events, and publications to enhance
Pew Research Center asked a broad range of demographic public understanding of the most important issues facing our state and nation. By
groups the following question: “Generally, do you think proclaiming Truth, we aim to foster faith, family, and freedom, teach citizenship,
and renew the spirit of 1776.
people are better off in a free-market economy, even though
 The next popular flare-up came in the summer of 2009, chose the first option, hypothetically foregoing $50,000 People who feel successful are much happier than people Vo i c e s o f C C U
in response to the administration’s health-care proposals. per year simply to maintain a position of relative affluence. who feel they are not. In 1996, the General Social Survey
Citizens flocked to town-hall meetings to confront their Progressives have always taken these results at face asked 500 American adults, “How successful do you feel in HOW WE TEACH
legislators about a proposed health-care plan that threatened value: Inequality brings misery. Even worse, they believe your work life?” Some 45 percent answered “completely POLITICAL SCIENCE
to place their health-care choices in the hands of the inequalities are more likely to result from discrimination, successful” or “very successful.” The rest said that they
government. Liberal politicians and their media sympathizers luck, and exploitation than from hard work, excellence, and were “somewhat successful” or less so. Among the first By Derek R. Wilson
again tried to marginalize the protestors, dismissing them dedication. The 2005 Maxwell Poll on Civic Engagement group, 39 percent said they were very happy in their lives; in "Democracy is two wolves and a lamb
as extremists or agents of and Inequality asked if people agreed with the the second group, just 20 percent. voting on what to have for lunch.
the health-care industry. But Most Americans following statement: “While people may begin This difference in happiness levels is not explained at all by
Liberty is a well-armed lamb contesting
the vote." Those words of Benjamin
a January 2010 poll found
that 51 percent of Americans
believe hard work with different opportunities [in America], hard
work and perseverance can usually overcome those
differences in income. Imagine two people who are the same Franklin resonate with my political
in income, as well as in education, age, sex, race, religion, science classes in the CCU College of
oppose the president’s pays. But affluent disadvantages.” politics, and family status. But one feels very successful, Adult and Graduate Studies, because our
health-care plan, with only 39 students are in life. Balancing career and
percent in favor. liberals are doubtful. Eight in ten Americans agreed, as well as more Free enterprise is the other does not. The
family responsibilities with their studies,
than nine in ten political conservatives. Among successful person will they experience Franklin’s insight in practical ways.
That same month, the voters of Massachusetts took part those who disagreed, however, we find more than a third traditional in values, be about twice as likely These midlife students are both impacted by, and impact-
in a poll of their own, voting into “Ted Kennedy’s Senate of political liberals with above-average incomes—the hard as the other to report
seat" the then-little-known Scott Brown. Brown won not core of the 30-percent coalition. yet perpetually new feeling “very happy” ing, current politics. They daily live the symbiotic rela-
tionship that is between the consenting people that make
by declaring himself an apparatchik Republican, but by So it is that redistributionists conclude that a world defined in outlook. about his or her life. up this nation and the government and body of laws that
running as a moral enthusiast for free enterprise. by economic equality will be both a fairer and a happier Now, the self-described “completely successful” or “very govern it. They see the erosion of our economic, politi-
successful” person may well also be richer than the cal, and personal freedoms. They sense what is right, and
“What made America great?” he demanded of the one. What’s more, if inequality is the goal, then bringing
recall a time when things were both done differently and
Massachusetts electorate: “Free markets, free enterprise, the top down is every bit as good as bringing the bottom “somewhat successful” person. That’s because money taught differently. Our goal at CCU is to cultivate learn-
manufacturing, job creation. That’s how we’re gonna do up. And, forced redistribution has another major benefit generally follows success. But it’s not the money that brings ers who understand not only how the American political
it, not by enlarging government.” His victory in liberal for progressives: The taxes levied from citizens provide the feeling of success (and hence happiness). The money is process works, but also why Christians must take an active
Massachusetts was not just a repudiation of the Democrats’ government with the resources to do all the other things just a metric of the value that the person is creating. role. We teach from a biblical worldview as applied to
unpopular health-care bill. It was also a rejection of the that progressive governments want to do. contemporary problems.
Of course, it’s easy to confuse the two—money and earned
culture of big government programs, higher taxes, and This is why redistributionists are willing to offer policies success. Money, though, is important not for what it can I define politics as the process by which we make authori-
growing debt. tative decisions that allocate the costs and benefits to our
that sacrifice entrepreneurship for higher taxes, self- buy but for what it says about how we are contributing,
society. This is a discipline we cannot afford to abdicate
Keeping Up with the Joneses? government for growing bureaucracies, individual what kind of a difference we are making. That’s why already to somebody else. What does it mean to be a Christian,
Progressives are correct when they say that free enterprise achievement for powerful unions, and private businesses well-off entrepreneurs continue to work so hard. They an American, and a citizen? CCU adult students are chal-
leads to unequal outcomes and that income inequality has for federally managed corporations. As they do so, they already have enough money to meet every need they could lenged to think the question through. Thus prepared to
know government power will increase apace and, in fact, ever have. But they still crave earned success like the rest tackle the significant issues facing us today, our graduates
been increasing in America. But they’re wrong when they
believe that this represents true progress on all fronts. of us, and so they are driven to create value at greater and can—with God’s grace—change the course of this nation.
say this is unfair and makes Americans unhappier. Such
claims are based on a misinterpretation of the data and, The Power of Earned Success greater heights. "It is religion and morality alone which can establish the
principles upon which freedom can securely stand," wrote
more importantly, a misreading of the human heart. A careful reading of the data demonstrates a vital truth that In a country like the United States where people are above John Adams. “If this cannot be inspired into our people in
Let’s start with the data—which at first blush do indeed many progressives (and even many conservatives) fail to the level of subsistence, a poor man who believes he has a greater measure than they have it now, they may change
appear to support the link between poverty and unhappiness. grasp: Inequality is not what makes people unhappy. successfully created something of value will be much better their rulers and the forms of gov-
The 2004 General Social Survey, for instance, found that, if off than a rich man who has not earned his success. The big ernment, but they will not obtain a Centennial
To understand the power of this fact, we need to understand problem is not that unhappy people have less money than lasting liberty." Colorado Christian Institute
you have an annual salary of less than $25,000, you are less the concept of earned success. Earned success is the ability to University agrees completely. ■ Colorado Christian University
than half as likely as someone earning more than $75,000 others. It is that they have earned less success.
create value honestly—not by winning the lottery, not by Derek R. Wilson has taught politics at CCU's Southern Colorado Center in
to describe yourself as “very happy.” And a famous inheriting a fortune, not by picking up a welfare check. It It’s Not the Economy After All
Colorado Springs since 2007. An Illinois native, he holds a master's degree from
experiment at Harvard University’s School of Public Health doesn’t even mean making money itself. Earned success is The discomfort Americans feel with the direction of our Northern Arizona University and is pursuing an MBA at Colorado Christian
in 1995 showed that simply having less money than others the creation of value in our lives or in the lives of others. country is not just due to the fact that our leaders’ attacks University.
makes us unhappy. on our free-enterprise system will lower economic growth
In the Harvard experiment, a group of students and faculty CENTENNIAL REVIEW is published monthly by the Centennial Institute at
rates (although they will). The problem runs much deeper. when the Ayers-McHenry company asked Americans
were asked to choose between earning $50,000 per year Colorado Christian University. Designer, Danielle Hull. Illustrator, Benjamin American citizens cherish free enterprise so much because during the depths of the recession in 2009, “Overall, would
while everyone else earned $25,000, or earning $100,000 Hummel. Subscriptions free upon request. Write to: Centennial Institute, 8787 they know intuitively that it allows them to earn their success, you prefer larger government with more services and higher
W. Alameda Ave., Lakewood, CO 80226. Call 800.44.FAITH. Or visit us online at
per year while others made $200,000. The prices of goods www.CentennialCCU.org. and in turn to achieve the greatest levels of happiness. taxes, or smaller government with fewer services and lower
and services would be the same in both cases, so a higher This is why, even as the unemployment rate in the private taxes?” Twenty-one percent favored the former, while 69
salary really meant higher purchasing power. Please join the Centennial Institute today. As a Centennial percent preferred the latter.
donor, you can help us restore America’s moral core and prepare sector soared in January 2010 and Wall Street scandals
However, the results showed that those materialistic tomorrow’s leaders. Your gift is tax-deductible. Please use the erupted, Gallup still found that six in ten Americans prefer Free enterprise emphasizes creativity, meaning, optimism,
envelope provided. Thank you for your support.
perquisites mattered little to most people: 50 percent - John Andrews, Director to work for business than for government. It is also why, and control in one’s own life. It seeks to escape from under
Centennial Review, July-August 2010 ▪ 2 Centennial Review, July-August 2010 ▪ 3
 The next popular flare-up came in the summer of 2009, chose the first option, hypothetically foregoing $50,000 People who feel successful are much happier than people Vo i c e s o f C C U
in response to the administration’s health-care proposals. per year simply to maintain a position of relative affluence. who feel they are not. In 1996, the General Social Survey
Citizens flocked to town-hall meetings to confront their Progressives have always taken these results at face asked 500 American adults, “How successful do you feel in HOW WE TEACH
legislators about a proposed health-care plan that threatened value: Inequality brings misery. Even worse, they believe your work life?” Some 45 percent answered “completely POLITICAL SCIENCE
to place their health-care choices in the hands of the inequalities are more likely to result from discrimination, successful” or “very successful.” The rest said that they
government. Liberal politicians and their media sympathizers luck, and exploitation than from hard work, excellence, and were “somewhat successful” or less so. Among the first By Derek R. Wilson
again tried to marginalize the protestors, dismissing them dedication. The 2005 Maxwell Poll on Civic Engagement group, 39 percent said they were very happy in their lives; in "Democracy is two wolves and a lamb
as extremists or agents of and Inequality asked if people agreed with the the second group, just 20 percent. voting on what to have for lunch.
the health-care industry. But Most Americans following statement: “While people may begin Liberty is a well-armed lamb contesting
This difference in happiness levels is not explained at all by the vote." Those words of Benjamin
a January 2010 poll found with different opportunities [in America], hard differences in income. Imagine two people who are the same Franklin resonate with my political
that 51 percent of Americans
believe hard work work and perseverance can usually overcome those in income, as well as in education, age, sex, race, religion, science classes in the CCU College of
oppose the president’s pays. But affluent disadvantages.” politics, and family status. But one feels very successful, Adult and Graduate Studies, because our
health-care plan, with only 39 students are in life. Balancing career and
percent in favor. liberals are doubtful. Eight in ten Americans agreed, as well as more
than nine in ten political conservatives. Among
Free enterprise is the other does not. The
successful person will
family responsibilities with their studies,
they experience Franklin’s insight in practical ways.
That same month, the voters of Massachusetts took part those who disagreed, however, we find more than a third traditional in values, be about twice as likely These midlife students are both impacted by, and impact-
in a poll of their own, voting into “Ted Kennedy’s Senate of political liberals with above-average incomes—the hard as the other to report
yet perpetually new feeling “very happy” ing, current politics. They daily live the symbiotic rela-
seat" the then-little-known Scott Brown. Brown won not core of the 30-percent coalition. tionship that is between the consenting people that make
by declaring himself an apparatchik Republican, but by So it is that redistributionists conclude that a world defined in outlook. about his or her life. up this nation and the government and body of laws that
running as a moral enthusiast for free enterprise. by economic equality will be both a fairer and a happier Now, the self-described “completely successful” or “very govern it. They see the erosion of our economic, politi-
successful” person may well also be richer than the cal, and personal freedoms. They sense what is right, and
“What made America great?” he demanded of the one. What’s more, if inequality is the goal, then bringing
recall a time when things were both done differently and
Massachusetts electorate: “Free markets, free enterprise, the top down is every bit as good as bringing the bottom “somewhat successful” person. That’s because money taught differently. Our goal at CCU is to cultivate learn-
manufacturing, job creation. That’s how we’re gonna do up. And, forced redistribution has another major benefit generally follows success. But it’s not the money that brings ers who understand not only how the American political
it, not by enlarging government.” His victory in liberal for progressives: The taxes levied from citizens provide the feeling of success (and hence happiness). The money is process works, but also why Christians must take an active
Massachusetts was not just a repudiation of the Democrats’ government with the resources to do all the other things just a metric of the value that the person is creating. role. We teach from a biblical worldview as applied to
unpopular health-care bill. It was also a rejection of the that progressive governments want to do. contemporary problems.
Of course, it’s easy to confuse the two—money and earned
culture of big government programs, higher taxes, and This is why redistributionists are willing to offer policies success. Money, though, is important not for what it can I define politics as the process by which we make authori-
growing debt. tative decisions that allocate the costs and benefits to our
that sacrifice entrepreneurship for higher taxes, self- buy but for what it says about how we are contributing,
society. This is a discipline we cannot afford to abdicate
Keeping Up with the Joneses? government for growing bureaucracies, individual what kind of a difference we are making. That’s why already to somebody else. What does it mean to be a Christian,
Progressives are correct when they say that free enterprise achievement for powerful unions, and private businesses well-off entrepreneurs continue to work so hard. They an American, and a citizen? CCU adult students are chal-
leads to unequal outcomes and that income inequality has for federally managed corporations. As they do so, they already have enough money to meet every need they could lenged to think the question through. Thus prepared to
know government power will increase apace and, in fact, ever have. But they still crave earned success like the rest tackle the significant issues facing us today, our graduates
been increasing in America. But they’re wrong when they
believe that this represents true progress on all fronts. of us, and so they are driven to create value at greater and can—with God’s grace—change the course of this nation.
say this is unfair and makes Americans unhappier. Such
claims are based on a misinterpretation of the data and, The Power of Earned Success greater heights. "It is religion and morality alone which can establish the
principles upon which freedom can securely stand," wrote
more importantly, a misreading of the human heart. A careful reading of the data demonstrates a vital truth that In a country like the United States where people are above John Adams. “If this cannot be inspired into our people in
Let’s start with the data—which at first blush do indeed many progressives (and even many conservatives) fail to the level of subsistence, a poor man who believes he has a greater measure than they have it now, they may change
appear to support the link between poverty and unhappiness. grasp: Inequality is not what makes people unhappy. successfully created something of value will be much better their rulers and the forms of gov-
The 2004 General Social Survey, for instance, found that, if off than a rich man who has not earned his success. The big ernment, but they will not obtain a Centennial
To understand the power of this fact, we need to understand problem is not that unhappy people have less money than lasting liberty." Colorado Christian Institute
you have an annual salary of less than $25,000, you are less the concept of earned success. Earned success is the ability to University agrees completely. ■ Colorado Christian University
than half as likely as someone earning more than $75,000 others. It is that they have earned less success.
create value honestly—not by winning the lottery, not by Derek R. Wilson has taught politics at CCU's Southern Colorado Center in
to describe yourself as “very happy.” And a famous inheriting a fortune, not by picking up a welfare check. It It’s Not the Economy After All
Colorado Springs since 2007. An Illinois native, he holds a master's degree from
experiment at Harvard University’s School of Public Health doesn’t even mean making money itself. Earned success is The discomfort Americans feel with the direction of our Northern Arizona University and is pursuing an MBA at Colorado Christian
in 1995 showed that simply having less money than others the creation of value in our lives or in the lives of others. country is not just due to the fact that our leaders’ attacks University.
makes us unhappy. on our free-enterprise system will lower economic growth
In the Harvard experiment, a group of students and faculty CENTENNIAL REVIEW is published monthly by the Centennial Institute at
rates (although they will). The problem runs much deeper. when the Ayers-McHenry company asked Americans
were asked to choose between earning $50,000 per year Colorado Christian University. Designer, Danielle Hull. Illustrator, Benjamin American citizens cherish free enterprise so much because during the depths of the recession in 2009, “Overall, would
while everyone else earned $25,000, or earning $100,000 Hummel. Subscriptions free upon request. Write to: Centennial Institute, 8787 they know intuitively that it allows them to earn their success, you prefer larger government with more services and higher
W. Alameda Ave., Lakewood, CO 80226. Call 800.44.FAITH. Or visit us online at
per year while others made $200,000. The prices of goods www.CentennialCCU.org. and in turn to achieve the greatest levels of happiness. taxes, or smaller government with fewer services and lower
and services would be the same in both cases, so a higher This is why, even as the unemployment rate in the private taxes?” Twenty-one percent favored the former, while 69
salary really meant higher purchasing power. Please join the Centennial Institute today. As a Centennial percent preferred the latter.
donor, you can help us restore America’s moral core and prepare sector soared in January 2010 and Wall Street scandals
However, the results showed that those materialistic tomorrow’s leaders. Your gift is tax-deductible. Please use the erupted, Gallup still found that six in ten Americans prefer Free enterprise emphasizes creativity, meaning, optimism,
envelope provided. Thank you for your support.
perquisites mattered little to most people: 50 percent - John Andrews, Director to work for business than for government. It is also why, and control in one’s own life. It seeks to escape from under
Centennial Review, July-August 2010 ▪ 2 Centennial Review, July-August 2010 ▪ 3
 Centennial Institute

Re
Centennial Review

gis

Ar ich enve serva

an eak ernC
Colorado Christian University

He Bro Mal ly 10 Summ

ter

th el r, tiv
d M in D on
sp West

a r oks kin .
ur le Ju e
a
8787 W. Alameda Ave.

t
Lakewood, CO 80226

Return Service Requested

Principled Ideas from the Centennial Institute Publisher, William L. Armstrong
Centennial Review Volume 2, Number 6 • July-August 2010 Editor, John Andrews

it.
July-August 2010

The Battle:
Free Enterprise vs.
Big Government
By Arhur C. Brooks Come hear Arthur Brooks speak on "The Battle" at the
Earned success and limited govern- WESTERN CONSERVATIVE SUMMIT  July 9-11  Denver Marriott South
ment are the happiness preference Centennial Institute invites you to Colorado for our first annual leadership
conference on setting America right. Keynoters include Michele Bachmann,
for 70 percent of Americans. Why
Dick Morris, Dennis Prager, Michelle Malkin, and Gen. Jerry Boykin.
do the other 30 percent set policy?
Register today at www.WesternConservativeSummit.com or call 303.963.3424
the heavy hand of the state. It is traditional in its American
values, yet perpetually new in its outlook. It naturally disdains
the soul-sapping nature of Big Bureaucracy and the protected
mediocrity of Big Labor. It has a healthy suspicion of the
Faustian tendencies of Big Business—divorced from the
entrepreneur’s ethics—to crawl into bed with the government.
In short, free enterprise is an act of self-expression and a
declaration of what we hold dear.
Americans do not naturally talk about free enterprise in such
rhapsodic terms. And as a result, redistributionists have been
Centennial Review, July-August 2010 ▪ 4
able to set the terms of the national debate by characterizing
free enterprise as just one economic alternative among many
(and a harsh, unfair one at that).
The truth is that free enterprise is not just a money machine—it is a
happiness machine. The 70-percent majority may use the language
of commerce and business to show that Obamanomics is
inefficient and will be bad for the economy. But in order
to truly win the new American culture war, we must do
more. We must show that free enterprise is an expression of
American values and grounded in an understanding of the
human heart. ■
co
m
THE BATTLE: there may be severe ups and downs from time to time, or
don’t you think so?” Almost 70 percent agreed that they
FREE ENTERPRISE vs. were better off in a free-market economy. Only 20 percent
BIG GOVERNMENT disagreed that America is better off with a free-market
economy.
By Arthur C. Brooks
Similar majorities believe that government should make
free enterprise easier, not harder. In a 2009 poll by the
When President Barack Obama
firm Ayers-McHenry, 63 percent of Americans agreed
addressed the graduating seniors at
that “Government policies should promote opportunity
Arizona State University on May 13,
by fostering job growth, encouraging entrepreneurs, and
2009, he had a word of warning for
allowing people to keep more of what they earn.” Thirty-
them: Don’t “fall back on the formulas
one percent disagreed, favoring instead, “Government
for success that you have been peddled
policies should promote fairness by narrowing the gap
so frequently,” he told them. Instead,
between rich and poor, spreading the wealth, and making
it was time to reject the pursuit of “the
sure that economic outcomes are more equal.”
usual brass rings” and the materialism
“that has been in our culture for far too long.” Any way you cut it, only about a third of Americans think
As he spoke these words, Mr. Obama was With his agenda to we would be better off without the
free-enterprise system. Yet the views of
in effect declaring a new culture war in
America. Not a struggle over God, guns, 'spread the wealth,' this “30-percent coalition” are currently
being foisted on the 70-percent
or gays, important as those issues are for Obama has declared
majority. And that’s why Americans
many of us (and, of course, on which
the president has his own strong views). a new culture war. (of all political parties and even those
not previously politically active) are
No, this new culture war centers on free enterprise—the
beginning to rebel against President Obama’s kulturkampf
principle at the core of American character.
on free enterprise.
What is it about free enterprise that so many American
The populist uprising began in the spring of 2009 with
progressives find objectionable? In short, it is the unequal
the Taxed Enough Already (“tea party”) protests. The
outcomes it produces. And for many of them, inequality
media tried to portray these grass-roots demonstrations
is an indicator of injustice. The way to solve this problem,
against growing government power as the work of radicals
as candidate Obama famously told Samuel Joseph
outside the American mainstream. But according to a poll
Wurzelbacher (“Joe the Plumber”) on the campaign trail
conducted less than a week after tax day 2009, more than
in October 2008, is by “spreading the wealth around.” In
half of Americans viewed the protests favorably, and, of
other words, government will decide who gets what. The
these, 32 percent viewed them “very favorably.”
government will “level the playing field” and thereby build a
fairer, more egalitarian, more just culture in America.
Arthur C. Brooks is president of the American Enterprise Institute, a former
Perverse Policies in a 70–30 Nation
professor of business and government policy at Syracuse University, and the
The redistributionists aim to remake America in their own author of seven books, most recently The Battle: How the Fight Between Free
Enterprise and Big Government will shape America's Future. He had a career as a
image. But they face an uphill struggle—and they know it.
classical musician before earning his doctorate from the Rand Graduate School.
Why? Because poll after poll shows that a large majority
This essay is based on his speech during an AEI-Centennial Institute seminar on
of Americans prefer the free-market system over the democratic capitalism, March 19, 2010, in Denver.
alternatives. For example, in March 2009 the non-partisan
Centennial Institute sponsors research, events, and publications to enhance
Pew Research Center asked a broad range of demographic public understanding of the most important issues facing our state and nation. By
groups the following question: “Generally, do you think proclaiming Truth, we aim to foster faith, family, and freedom, teach citizenship,
and renew the spirit of 1776.
people are better off in a free-market economy, even though