The Economic History of the United States 8

The Economic History of the United States 8 Ben Franklin Mark Skousen

1. Benjamin Franklin, Father of American Capitalism
Mark Skousen
Doti-Spogli Chair of Free Enterprise, Chapman University
[email protected]
“I know of no country, indeed, where wealth has taken
a stronger hold on the affections of men.”
– Alexis de Tocqueville

2. Benjamin Franklin
(1706-1790)
–“The Greatest American”
(Ken Burns, Documentary Producer)
–“The world’s most versatile genius”
(Michael Hart, author, “The 100”)
–“Father of American Capitalism”
(Jack Bogle, founder, Vanguard Funds and
first stock index fund)
–“America’s original entrepreneur”
(Baylor Professor Blaine McCormick)
–“First Scientific American”
(Harvard Professor Joyce Chaplin)
–America’s first diplomat and
Grandfather of Our Country
–First Postmaster General

3. America as the Promised Land
British America vs. Latin America
Religious freedom
Individual vs. the State
Democracy (self-rule) vs. Monarchy (kingdom)
Seeking gold and silver

4. Benjamin Franklin as the Ideal
Representative of American Dream
1.Self-made man…the Rise of the Common Man
2.Defender of commercial society and big city life
3.Useful inventions and technology
4.Doing good: private wealth to be used for public
benefit (invisible hand doctrine)
5.Government policy: encourage individual
success and independence

5. Franklin on Good Business Management
1.“The Way to Wealth: Industry, thrift and
prudence” (1757)
2.“At the workingman’s house hunger looks
in, but dare not enter.”
3.“A penny saved is a penny earned”
4.“Genius without education is like silver in
the mine.”
5.“Beware of little expenses, a small leak
can sink a great ship.”
6.“Drive thy business! Let not it drive you.”
“See thou a man diligent in his business?
He shall stand before Kings.” – Proverbs 22:29

6. How to Turn Private Actions into Public Good
Franklin retired at age 42 to engage
in scientific experiments and civil affairs.
“It is incredible the quantity of good that may be done in a
country by a single man who will make a business of it.”
– Benjamin Franklin

7. How to Turn Private Actions into Public Good
•“Junto,” the society of useful knowledge
•First fire department
•First hospital
•Orphanage
•Philadelphia Academy (University of Pennsylvania)
•Negro School of Philadelphia
•First public library
•Pennsylvania militia
Civil Activities in Philadelphia

8. “Doubtlessly, faith has its use in the world; I do not desire
to see it diminished, nor would I endeavor to lessen it in
any man. But I wish it were more productive of good
works than I have generally seen: I mean real good works,
works of kindness, charity, mercy, and public spirit; not
holiday-keeping, sermon-reading or hearing, performing
church ceremonies, or making long prayers, filled with
flatteries and compliments, despised even by wise men,
and much less capable of pleasing the Deity.”
“Many have quarreled about
religion that never practice it”
– Benjamin Franklin;
In Poor Richard's Almanac

9. Franklin on Government Policy
“I am a mortal enemy to arbitrary government and
unlimited power. I am naturally very jealous for the
rights and liberties of my country, and the least
encroachment of those invaluable privileges is apt
to make my blood boil.”
“The system of America is commerce with all and
war with none.”
“I had no doubt of our finally succeeding in this war by the
blessing of God. This is the greatest revolution the world has
ever seen.”
“A virtuous and industrious people may be cheaply governed.”

10. Franklin on Government Policy (continued)
“Laissez nous faire: Let us alone….Pas trop gouverner:
Not to govern too strictly.”
“No country was ever ruined by trade.”
“Paper money in moderate quantities has been found
beneficial; but when more than the occasions of
commerce require, it depreciates and is mischievous and
the populous are apt to demand more than is necessary.”
“Our cause is the cause of all mankind. God grant that
not only the love of liberty but a thorough knowledge of
the rights of man may pervade all nations of the earth so
that a philosopher may set his foot anywhere on its
surface and say, this is my country!”

11. “I have sometimes almost wished it had been my
destiny to have been born two or three centuries hence,
for inventions of improvement are prolific, and beget
more of their kind. The present progress is rapid.”
“America will, with God’s blessing, become a great and
happy country.”
Is America a rising or setting sun?
Benjamin Franklin on the Future of America

12. “Only a virtuous people are capable of freedom. As nations
become corrupt and vicious, they have more need of
masters....There is a constant warfare between the governing
and the governed. Generally, the ruling power carries its point,
and we see the revenues of princes constantly increasing, and
we see they are never satisfied, but always in want of more. I
am apprehensive, therefore, perhaps too apprehensive, that
the government of these states may in future times end in a
monarchy, and a King will sooner be set over us.”
– Benjamin Franklin