Charles Murray of the Cato Institute just loves to be controversial and his latest book American Exceptionalism is true to form. There has been a lot of talk about American exceptionalism with the emphasis placed on America being extraordinary and special. America as above other countries. Murray argues differently. He believes America is exceptional as defined by uniqueness. America was an experiment in government which was foreign and different from what had been tried and what was expected. The focus is not that America is better but it has been unique and if the factors that drove this uniqueness change, America will no longer be exceptional.
This work is consistent with the view that economic development is driven by institutions and institutions are driven by the behavior of individuals. Institutional structure matters for growth and if there is a convergence in institutional structures there will be a convergence of growth.
So what made America exceptional (unique)? It was the first country to translate ideology of individual liberty in a governing creed and restricted the power of government to control people. It was unheard of to have a leader like George Washington step down from power. The experiment worked and thrived. European viewed America as exceptional. It was Stalin who used the term American exceptionalism. The rest of the world viewed America as someplace different. Outside observers declared that America was unlike any other nation. It was a fact in the past and not something that you could believe in. The issue is whether America will be exceptional going forward. The future of exceptionalism is based on the behavior of the populace.
Murray argues that focus on individual liberty with a government controlled by the governed is based in practice on its civic culture. The American civic culture was unique because of its four special traits, industriousness, egalitarianism, religiosity, and the combination of philanthropy and volunteerism. If these traits diminish or change, there will be a loss in American exceptionalism and it will become more like other countries.
Industriousness is the assumption that getting ahead is a function of hard work and making a better life for oneself and your family. The long work hours in America is the empirical manifestation of industriousness. The trait was also represented by economic independence. The falling work force participation is the signal that this characteristic is in decline.
Eglaitariansim as defined by the traditional view is the absence of class. Most Americans always viewed themselves as middle class even those who were in upper income levels. There is not an aristocracy in the US; however, education and wealth differences may be showing this to be in decline.
Religiosity is the importance Americans place on religion. There has never been a state religion so joining a religion was an expression of individuality. There is no counterpart in Europe where there are state religions. It served as a moral foundation for government and behavior in America. Currently, levels of church attendance is declining and religion is playing a lesser role on social behavior.
Community life is the final factor which makes America unique. America has been a country of volunteers for both charity and local government. America is a country of joiners. This neighborliness was a substitute for government. We have seen a decline in volunteerism in the country, so again the level of exceptionalism versus other countries is in decline. There has been a high degree of social trust.
When we look at how citizens interact with government and with the overall community, we are seeing dramatic change from past behavior. It is unclear whether exceptionalism will be a characteristics of America in the future.
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