Giving Thanks for America and Capitalism
Political Whisperer
By Robert Hornak
Thanksgiving is an opportunity to reflect on how lucky we are to be living in the greatest country ever created. They say that free-market capitalism is the worst system of governance ever created – except for all the others.
But now our system is under attack, and therefore so is America.
Both were born together, one supporting the other, making this the most successful country in history. We all grew up hearing the story of the Pilgrims and their fateful trip across the ocean to establish one of the first permanent colonies in the new world. What most people don’t know is that this was a business venture, backed by a new investment vehicle called a joint-stock company.
There were three originally, the East India companies established by the Dutch, French and British in the early 1600’s. This was the birth of the modern capitalist system, which established a new way to raise capital for this very risky and speculative venture, exploring the American continent.
Thus, the first modern stock market, the Amsterdam Stock Exchange (now Euronext Amsterdam) was established in 1602. It allowed people to buy and sell shares, and collect dividends, on stock in the East India companies. The success is obvious, leading over time to most of the greatest advancements in human history.
As the United States was coming into existence, so was the New York Stock Exchange in 1792, now the world’s dominant exchange. There is a reason both were born at the same time, as one could not have existed without the other.
America’s success was driven by the incredible opportunity for people to pursue their dreams and be the masters of their own destiny. Not every venture was successful, but this system allowed for the experience of failure to be a teacher for future success rather than an epitaph.
The success speaks for itself, even though you probably take much of this for granted. But literally every modern advancement, comfort, and entertainment was created in this environment, where someone would have an idea, or a dream, and have the space to turn that idea, that dream, into a reality.
This was the beginning of an era of average people who led a revolution in human existence. We called them inventors, but they were classic American entrepreneurs, brilliant and determined, following their dreams.
People like Thomas Edison, who invented the incandescent light bulb, the phonograph, the motion picture camera, the carbon microphone, and developed a way to generate and distribute electricity. Edison was backed by financiers like JP Morgan which led to the creation of the Edison General Electric Company, eventually becoming General Electric, one of the original twelve companies listed on the Dow Jones.
Before Clarence Birdseye had the inspiration for flash freezing food in the 1920’s, people generally only had access to food that was grown or raised locally. He struggled to find buyers for his product, as freezers were not common in American households. Refrigeration had been evolving since the mid 1800’s but was costly.
Introduced by General Electric in 1927, the first refrigerators cost $525, approximately $7500 today, falling to just over $200 ($3000 today) by the 1930’s. Then during the war, as the price continued to drop, the shortage of canned goods helped Birdseye’s products, now owned by General Foods, to catch on, leading to a revolution in frozen food products.
Many uniquely American industries were invented and became wildly popular, including the candy and toy industries. Before Hershey, candy confections were made by hand and solely consumed by the wealthy and royalty. Mars then bought chocolate from Hershey and created M&M’s. Reese bought chocolate from Hershey and invented peanut butter cups.
Before Ruth Handler, dolls were usually stuffed likenesses of babies, there were no action figures or dolls with adult features. Barbie revolutionized the entire doll industry. Board games were not new, but the creation of companies like Milton Bradley and Parker Brothers gave game inventors a way to mass distribute their ideas, leading to some of the best known modern games like Monopoly and Scrabble.
It was the ability for people to be able to take risks and then profit from their success that led to the creation of all these inventions that make modern life what it is, and that only happened because the American system of free-market capitalism is the foundation that allowed it to happen. Capitalism created our world – completely.
At a time when the very foundation of our country and our way of life is under attack by people who only have a track record of failure to point to, we must be clear on what America and its foundation of free-market capitalism has given us, which is surely something we all can be, and should be, thankful for.
Robert Hornak is a veteran political consultant who has previously served as the Deputy Director of the Republican Assembly Leader’s NYC office and as Executive Director of the Queens Republican Party. He can be reached at rahornak@gmail.com and @roberthornak on X.
