11. The concepts of Individualism, Responsibility, Government, and Fairness in the American social context Flashcards
bootstrap mentality
The bootstrap mentality refers to the belief that individuals can achieve success through their own hard work and determination, without relying on external help. This idea is deeply rooted in American individualism and the work ethic, emphasizing self-sufficiency and personal responsibility.
invisible hand
The invisible hand theory (coined by Adam Smith during the Industrial Revolution) is the idea that in a free market, individuals acting in their own self-interest unintentionally contribute to the overall economic good, as if guided by an “invisible hand.” In simpler terms: when people and businesses make decisions that benefit themselves (like trying to make a profit), they end up helping the economy without meaning to. It’s like how a bunch of people selling things they think will make them money ends up creating jobs, lowering prices, and increasing overall wealth for everyone, even though that’s not their goal. It’s supposed to work because everyone is free to make their own choices, but… yeah, sometimes it doesn’t go quite as smoothly as advertised.
Big vs. Small Government in the US Economically (simple):
Laissez-faire (Small Government): Republicans push for smaller government, fewer regulations, lower taxes, and more market freedom.
Keynesian (Big Government): Democrats often advocate for a larger government role, especially in social welfare, infrastructure, and market stabilization.
American values
o individual freedom and self-reliance
o equality of opportunity (and competition)
o (hard work)
How do the core American values shape the views on work ethic, economic policy and the government’s role in regulation?
Individual Freedom and Self-Reliance: Americans prioritize personal freedom, autonomy, and the belief that individuals are responsible for shaping their own lives. This stems from the country’s founding principles, including the Declaration of Independence, which emphasized liberty and the rejection of external control.
Equality of Opportunity and Competition: The ideal of equal access to opportunities is foundational, although it often overlooks systemic inequities (race, gender, socioeconomic background). The competitive spirit is seen as a driver of success, with significant emphasis on individual merit.
Hard Work as a Virtue: The “Protestant work ethic” remains a cultural touchstone, promoting the idea that success is earned through diligence and perseverance.
What is the core idea behind the “invisible hand” theory?
The core idea is that individuals pursuing their self-interest inadvertently contribute to the overall good of the economy. This occurs in a free market with minimal government interference.
What are some reasons why the “invisible hand” theory was believed to be effective?
Self-interest was seen as a driver of economic growth and efficiency.
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It was believed that minimal government intervention was best for economic prosperity.
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The theory aligned with American values of individualism and self-reliance.
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It was historically supported during a time when businesses had significant power.
What historical event challenged the “invisible hand” theory?
The Great Depression revealed the limitations of the theory, showing that the market was not always self-regulating and that government intervention was needed.
What is “laissez-faire” economics and how does it relate to the “invisible hand” theory?
Laissez-faire economics advocates for minimal government interference in the economy, allowing the market to self-regulate. It is closely connected to the “invisible hand” theory, which suggests that such a system works best when left alone.
How did the Great Depression change views on the role of government in the economy?
The Great Depression led to the rise of the concept of “big government,” where government intervention is considered necessary to regulate businesses, protect consumers, and address social problems. The New Deal was a key example.
What is the difference between “small government” and “big government” perspectives?
Small government advocates for minimal governmental involvement, lower taxes, and decentralized authority, emphasizing individual responsibility.
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Big government refers to an active government that regulates industries, provides social safety nets, and intervenes in economic issues to ensure equality and welfare.
What are the typical views of Republicans and Democrats on government intervention in the economy?
Republicans generally favor small government, free markets, deregulation, and low taxes.
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Democrats tend to support big government, with regulations and social programs to address inequality and protect citizens.
How does the idea of the “invisible hand” connect to American values?
The idea connects to the American values of individualism, self-reliance, and hard work. It supports the idea that individuals should succeed through their own efforts and the government should not interfere.
Is the “invisible hand” theory considered fully successful today?
No, the theory in its purest form is not considered fully successful. History has shown that unchecked markets can lead to crises and inequalities, and some government regulation and intervention is often necessary.
What is the “bootstrap mentality” and how does it relate to the “invisible hand?”
The “bootstrap mentality” insists that anyone can succeed through hard work. It aligns with the “invisible hand” theory’s emphasis on self-reliance and minimal government help. However, it ignores systemic inequities and can lead to victim-blaming for those who struggle.
What was the primary debate between Alexander Hamilton and Thomas Jefferson regarding government size?
Hamilton (Federalist): Advocated for a strong central government to support a robust economy and national bank.
Jefferson (Democratic-Republican): Favored states’ rights and a smaller federal government, fearing central power would trample individual freedoms.
What was the purpose of the First Bank of the United States (1791), and how did it relate to government size?
First Bank of the U.S. (1791): Established by Hamilton to stabilize and improve the nation’s credit and handle war debt.
Relation to Government Size: Represented a big government move by centralizing financial power under federal control.
How did the Civil War impact the size of the U.S. federal government?
Impact of Civil War: Expanded federal government significantly under Lincoln to manage wartime efforts, including raising armies and funding the war.
Relation to Government Size: Marked a shift toward bigger government with increased federal authority over states.
What was the significance of the Wagner Act (1935), and how did it reflect big government principles?
Wagner Act (1935): Also known as the National Labor Relations Act, it guaranteed workers the right to unionize and bargain collectively.
Relation to Government Size: Reflected big government by expanding federal intervention in labor relations.
Describe the Social Security Act (1935) and its role in government expansion.
Social Security Act (1935): Established a system of old-age benefits, unemployment insurance, and welfare programs.
Relation to Government Size: A cornerstone of the New Deal, it significantly increased federal government’s role in social welfare.
How did the Interstate Highway System, initiated by Eisenhower, reflect big government policies?
Interstate Highway System: A massive federal infrastructure project to build a nationwide network of highways.
Relation to Government Size: Expanded federal government’s role in infrastructure and transportation.
What was Reagan’s approach to government size, and what key legislation exemplified this?
Reagan’s Approach: Advocated for small government with reduced taxes and deregulation.
Key Legislation: The Economic Recovery Tax Act of 1981 cut income taxes significantly, emphasizing smaller government by limiting federal revenue and oversight.
Explain the Affordable Care Act (2010) and its impact on federal government size.
Affordable Care Act (2010): Aimed to expand healthcare coverage through mandates, subsidies, and insurance exchanges.
Relation to Government Size: Increased federal government’s role in healthcare regulation and social services.
What was the purpose of the American Rescue Plan (2021), and how did it reflect big government ideology?
American Rescue Plan (2021): A COVID-19 relief package providing direct payments, extended unemployment benefits, and vaccine funding.
Relation to Government Size: Embodied big government through substantial federal spending to support the economy and public health.