by Monty Pelerin
Monty Pelerin’s World
There is little difference remaining between the United States and a Banana Republic. What differentiated us from so many countries was our Constitution and our legal system. The Constitution prevented government from overstepping boundaries, at least for a while.
The Rule of Law meant that all citizens would have the same rights and expectations regarding how contracts and misbehavior would be treated. The freedom afforded unleashed the creativity and skills of individuals. The US did not become rich or great because it represented God’s chosen people. It became so successful because of freedom and the initiative of its people.
The US would be no different from a Banana Republic save for these conditions. As these conditions disappear we become more like a Banana Republic. The Constitution and the Rule of Law have been under attack almost from the founding of the country. Both are considered inconvenient nuisances by the ruling class. But it exactly these two concepts which made us different from Argentina, Venezuela and most of the rest of the world. (As an aside, Argentina at the turn of the previous century was the third most prosperous country in the world.)