Ronald Reagan liked to use the phrase, “Shining City on a Hill” to describe our country. He used that description both on the eve of his election in 1980 and in capping his eight years in office by discussing its meaning in his farewell address from the presidency in January 1989. The origins of that phrase came from a Pilgrim named John Winthrop in 1630, who used the term to describe what he hoped America would become. Reagan used Winthrop’s phrase (actually “Shining City upon a Hill”) to describe how America is different from other countries.
In his 1980 speech leading up to the presidential election, some of what Reagan said could be said about our country today: “Many of us are unhappy about our worsening economic problems, about the constant crisis atmosphere in our foreign policy, about our diminishing prestige around the globe, about the weakness in our economy and national security that jeopardizes world peace, about our lack of strong, straight-forward leadership.” Reagan hoped to return to “…a better America, a vision of society that frees the energies and ingenuity of our people while it extends compassion to the lonely, the desperate, and the forgotten.” He indicated that this could be done by controlling and limiting the growth of federal spending and relieving labor and business of burdensome, unnecessary regulations while maintaining high standards of environmental and occupational safety. He also believed in peace through the strength and unity of our people.
In his farewell address from the presidency on January 11, 1989, Reagan concluded by addressing what he meant by the “Shining City”: “I’ve spoken of the shining city all of my political life, but I don’t know if I ever quite communicated what I saw when I said it. But in my mind, it was a tall, proud city built on rocks stronger than oceans, wind-swept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That’s how I saw it, and see it still.” He then concluded by saying, “And how stands the city on this winter night? More prosperous, more secure, and happier than it was 8 years ago. But more than that: After 200 years, two centuries, she still stands strong and true on the granite ridge, and her glow has held steady no matter what storm. And she’s still a beacon, still a magnet for all who must have freedom, for all the pilgrims from all the lost places who are hurtling through the darkness, toward home.”
As we approach the 2024 presidential election, our “city” is not shining quite as brightly. Unfortunately, neither political party is proposing solutions which will make America exceptional again. While the pandemic helped initiate some of our problems, the spending of our past two administrations has driven up our debt to almost unmanageable levels, spurring on inflation that is hurting all Americans. The amount of regulation by our current administration has made business more difficult and stifled growth. In addition, the tariffs proposed by both parties will likely drive up prices and hurt our competitiveness.
While Donald Trump promises to “Make America Great Again,” the 2024 Republican Platform flies in the face of many of the things that have made America great. While the current southern border is indeed out of control, immigration has been an important element of America’s success. By creating an immigration environment of “us vs. them, “We will no longer be the country that welcomes immigrants to pursue the “American Dream” and help propel the country forward. The tariffs proposed reek of protectionism, making our country unable and unwilling to compete on a balanced playing field. Greatness is demonstrated by winning, not by isolating. An unwillingness to tackle Social Security and Medicare is just one more example of mortgaging our future for short-term populism.
So, how do we make America exceptional again and return us to our status of the “Shining City on the Hill”? It is hard to say, but David Brooks gives us the start of a roadmap in a column he wrote last week (July 18) in the New York Times, which sounded like it had been written for the Wall Street Journal. His column is entitled “What Democrats Need to Do Now.” Because its recommendations are out of Reagan’s playbook, I doubt that the Democrats would adopt them, but let’s hope they (or somebody) do, and here are some of the better ones:
- Be active in places like Ukraine; keep the “bad guys,” like Putin, at bay
- Secure the border first, which will allow for continued immigration that will work for America
- Stand up to protectionism; Tariffs not only raise costs, but they also breed laziness and mediocrity by buffeting companies from competition
- Throttle back on regulation; current regulatory environment has stifled innovation
While this may seem more like a political column than a business/economic column, it is not. Policy has a significant impact on business, and what has made America exceptional is its entrepreneurial and free market environment. It is time to bring it back, so our city will shine again!
