Sunday, September 26, 2010

Mini-Review: Blessed Among Nations

Eric Rauchway’s “Blessed Among Nations: How the World Made America” takes a sledgehammer to the myth of American exceptionalism and, when that proves insufficient, picks up a crowbar and blowtorch to finish the job. America, Rauchway writes, is indeed special—but only by the good graces of the rest of the world.

Nineteenth century America was a promising start-up. Foreign banks, British ones especially, poured capital into the country, funding its westward expansion and its ever-growing railroad network. Surviving the Civil War enhanced America’s reputation as a good bet. Junius Morgan advised his son to “Always be a ‘bull,’ on America,” words that the young J. Pierpont took to heart. Money from Morgan and other bankers propelled the American economy from pushover to powerhouse.

Along with the flow of foreign money came another, much more visible stream: millions upon millions of immigrants. They came not because America was a mythic “land of opportunity” but because it was a land of actual, concrete opportunities, the manufacturing jobs created by European investment. What made this diaspora unique was not volume—Canada had a larger immigrant population by percentage. The difference was diversity. Immigrants to America came from Austria and Italy, Russia and Germany, England and Norway—a smorgasbord of humanity that, as Rauchway points out, precluded the development of working class solidarity.

America benefited from an early form of globalization, gorging on capital and labor from abroad. But, Rauchway argues, America has refused to pay its debt. Instead of acknowledging what we owe the world, we have done our best to throttle the very global network that made us rich. Our punishing tariffs and restrictive immigration laws have smothered the impulse toward globalization.

You—and certainly I—might not agree with Rauchway’s prescription. He thinks we need more regulations and an expanded welfare state, the better to soothe average Americans into accepting globalization. Still, even if his solution might be off the mark, his diagnosis is worth a look.

1 comment:

JohnInPune said...

I am sure Eric Rauchway’s “Blessed Among Nations: How the World Made America” is more complicated than my critique. Still – it seems to me that the influx of foreign investment money and people into America in the 19th century was a direct by-product of America’s exceptionalism.

Foreign bankers did not invest in America as a charity cause. Presumably they were profit seeking capitalist who wanted to invest their money where they felt they could safely get the highest return. America - with its focus on individual opportunity – had the best prospects for dynamic growth. America’s respect for the rule of law – as demonstrated by numerous peaceful changes in government – provided a stable investment environment. In short America WAS a good bet. But not by accident – it was precisely America’s exceptionalism that made it a better bet for those 19th century bankers than say, Russia, Japan or even other European countries.

Of course immigrants came to America for solid, non-mythic reasons! They could find work here and - just as important – they had the prospect of enjoying the fruits of their labor with minimal interference. Another argument for, rather than against exceptionalism.

Paying debts? WWII, the Marshal Plan, the containment of Russia during the cold War and the bulk of the world’s technology and medical innovation through the 20th century to name a few. I think the debts have been paid with interest.