But what concerns me most is Trump’s disruption of the institutions that are necessary for the functioning of society. Trump’s “MAGA” (Make America Great Again) agenda is, of course, not about restoring the moral leadership of the United States. It embodies and celebrates unbridled selfishness and self-absorption. MAGA is about economics. But that forces us to ask: What is the basis of America’s wealth?
Adam Smith tried to provide an answer in his classic 1776 book The Wealth of Nations. For centuries, Smith noted, standards of living had been stagnant; then, toward the end of the 18th century, incomes start to soar. Why?
Smith himself was a leading light of the great intellectual movement known as the Scottish Enlightenment. The questioning of established authority that followed the earlier Reformation in Europe forced society to ask: How do we know the truth? How can we learn about the world around us? And how can and should we organise our society?
From the search for answers to these questions arose a new epistemology, based on the empiricism and scepticism of science, which came to prevail over the forces of religion, tradition, and superstition. Over time, universities and other research institutions were established to help us judge truth and discover the nature of our world. Much of what we take for granted today — from electricity, transistors, and computers to lasers, modern medicine, and smartphones — is the result of this new disposition, undergirded by basic scientific research (most of it financed by government).
The absence of royal or ecclesiastical authority to dictate how society should be organised to ensure that things worked out well, or as well as they could, meant that society had to figure it out for itself. But devising the institutions that would ensure society’s wellbeing was a more complicated matter than discovering the truths of nature. In general, one couldn’t conduct controlled experiments.
A close study of past experience could, however, be informative. One had to rely on reasoning and discourse — recognising that no individual had a monopoly on our understandings of social organisation. Out of this process emerged an appreciation that governance institutions based on the rule of law, due process, and checks and balances, and supported by foundational values like individual liberty and justice for all, are more likely to produce good and fair decisions. These institutions may not be perfect, but they have been designed so that it is more likely that flaws will be uncovered and eventually corrected.
That process of experimentation, learning, and adaptation, however, requires a commitment to ascertaining the truth. Americans owe much of their economic success to a rich set of truth-telling, truth-discovering, and truth-verifying institutions. Central among them are freedom of expression and independent media. Like all people, journalists are fallible; but, as part of a robust system of checks and balances on those in positions of power, they have traditionally provided an essential public good.
Since Smith’s day, it has been shown that a nation’s wealth depends on the creativity and productivity of its people, which can be advanced only by embracing the spirit of scientific discovery and technological innovation. And it depends on steady improvements in social, political, and economic organisation, discovered through reasoned public discourse.
The attack by Trump and his administration on every one of the pillars of American society — and his especially aggressive vilification of the country’s truth-seeking institutions — jeopardises its continued prosperity and very ability to function as a democracy. Nor do there appear to be checks on corporate giants’ efforts to capture the institutions — the courts, legislatures, regulatory agencies, and major media outlets — that are supposed to prevent them from exploiting workers and consumers. A dystopia previously imagined only by science fiction writers is emerging before our eyes. It should give us chills to think of who “wins” in this world, and who or what we might become, just in the struggle to survive.
The writer is Professor at Columbia University and the 2001 recipient of the Nobel Prize in Economics. His new book, People, Power, and Profits: Progressive Capitalism for an Age of Discontent, will be published this month by W W Norton and Allen Lane. ©2019 Project Syndicate