The Self Made Fallacy

No one is self made. Everyone builds on top of what society has given them.

No one succeeds in a vacuum.

No one achieves success on their own.

No one is fully “self made”.

There is a dangerous myth that has become modern American ideology. The myth that those who have made great fortunes or risen to high levels of power did it all on their own. They were scrappy, driven, smart, and they used all of that to turn nothing into everything.

It is this same mindset that leads people to believe that billionaires shouldn’t be taxed on their “hard earned wealth” and that the poor shouldn’t be helped as they “haven’t worked hard enough”. 

This mindset is what rails against unions and ignores systematic inequalities. This is how paying your fair share gets warped into a message of fighting against “income redistribution”.

The problem with this mindset is that it is completely and utterly false.

No one did it all on their own. No one.

Humans gathered together into societies for the betterment of all. By sharing resources, knowledge, and technology, everyone’s lives got safer, healthier, and happier. We don’t start from scratch each generation. We build on top of what our ancestors built. That is the very point of humanity.

Elon Musk didn’t rise from nothing, he used everything the US government provided to build his wealth. His early businesses profited from the internet, a network developed by the US government which was paid for by the taxes of all US citizens.

The US government also developed a wide range of rocket and satellite technology. Technology that Musk took and used to build businesses and rake in billions. Elon also directly took government funding to help build his projects. We all funded Musk’s success.

Roads, telephone networks, power grids, the postal system, the internet, technology investments, subsidies to make food cheaper, trade agreements to better position American products, there are countless ways that every “self made” individual is actually created through society paying for and providing the tools needed for their success.

None of these billionaires built an amazing product by themselves. They leveraged hundreds, thousands, even millions of employees. Amazon had over 1.5 million employees last year. Bezos couldn’t manage the business without them. But as Bezos was buying a yacht for his yacht, hundreds of thousands of Amazon employees were struggling to pay rent and buy food. 

When Amazon employees tried to unionize, Bezos hired anti-union firms to fight against them, intimidate them, and even use illegal tactics to prevent the unions from forming. His business can’t operate without employees, yet he doesn’t want to pay them livable wages. All the while his own wealth has increased to over $125 billion.

America hasn’t always been like this, although it was once before. Back in the days of Rockefeller and Carnegie, America faced a similar situation. Much of the country was struggling and in poverty, yet Rockefeller was worth almost $1 billion at a time when the entire US GDP was only $39 billion.

Then the Great Depression hit. One of the darkest economic times in US history. It was a long struggle for much of our nation, but after coming out the other side, America found itself on a better track.

Unions increased in membership and strength. The US had an 81% marginal tax rate on the wealthiest individuals. Corporate tax rates increased significantly. America was building a better nation for everyone.

By the 1960s, the top marginal tax rate was a whopping 91%, union membership was at its peak, and the minimum wage was a livable wage. By the late 1960s and early 1970s, the middle class was doing the best it ever had, and sadly, the best it ever has.

It was a time of realizing that we all rely on each other. We all benefit from a stronger society and an efficient government.

Then came Reagan and the Reaganites. Unions were attacked on local and federal levels. Pro union laws were weakened. By the 1990s the top marginal tax rate was a measly 28% and the corporate tax rate was on a continual decline. At the same time, the buying power of the minimum wage was weakened. Along with it, the middle class was eroding away.

This is the era where corporations and the wealthy began funneling huge sums of money into political campaigns in order to get favorable laws for them to get ever richer.

Today, some economists argue that America doesn’t have a middle class at all. Not because so many Americans are wealthy, but because so many are poor. 

The rich use their money to fund lobbyists who in turn use money to fund political campaigns. Political races are therefore more expensive so politicians need more money to compete. The politicians reduce the taxes of the wealthy and the regulations for corporations, which in turn incentivizes the rich to put ever more money towards politics.

Social benefit programs are demonized by the lobbying groups. Then those talking points are regurgitated by politicians eager to keep their dark money donations pouring in.

All of that lobbying is money that isn’t going to Americans, that isn’t going to society, that isn’t going to improving lives for anyone other than the top percentage of Americans and the politicians who do their bidding.

Despite America being a mixed market economy, the lie that we are a capitalist nation has become a common accepted truth. Capitalism is not necessarily bad. It leads to innovations, lower prices, increased efficiencies. But capitalism needs regulation and capitalism has no place in governing, only in business.

How do we get America on a better course?

We must continue to erode the false notion that anyone is self made. America has over 25% of all of the billionaires in the entire world. 195 nations and a single nation has over one quarter of all billionaires.

That isn’t a coincidence or an accident. It is because American society has provided a solid foundation for people to build companies, fortunes, and business empires. To believe that those who benefit from these systems don’t owe a meaningful amount of their good fortune back to the society that provided the tools and policies for their success, is foolish.

We need empathy. There is no need for anyone to go hungry when we have such an over abundance of food. America wastes $408 billion worth of food every year, enough for 130 billion meals. Yet people claim it would be too expensive to feed the hungry? 

We can build affordable basic needs housing. We can provide education and job training. A rising tide truly does lift all boats. Lifting millions out of poverty will improve the success, wealth and happiness for all Americans.

Legislation has been written in Congress to remove dark money from politics, to change corporate donation values, even to incentivize candidates to rely at least a portion of their campaign donations on small donors.

These measures keep failing because the existing lobbying money is so powerful, but the people are getting stronger. Personal donations have determined more races in recent years, which in turn creates politicians more focused on the needs of the people. 

Donating to campaigns is important. It doesn’t have to be a lot. If every voting age American donated ~$35 each year, the combined total over four years would cover the cost of both the 2020 and 2022 elections. This isn’t to say that all Americans should be required to donate to politics, but it does highlight the true power of the people versus big money donations.

The last several election cycles have seen Democrats out-fundraise Republicans, all thanks to small money donations. Democrat voters are motivated for change and are donating to create that change.

The donations by the people are so powerful that Republicans have begun to look for very wealthy candidates who can fully fund their own campaigns. A different solution they might consider is appealing to the needs and wants of the public instead of trying to simply outspend the public, but to each their own.

America is a nation and a society. Modern societies pay their fair share of taxes to ensure the entire country is prosperous, protected, and progressing. Until we accept this truth once again, Americans will continue to struggle.