The Amateur Financier

America is a young country.  Compared to the long histories of European countries like France, Germany, and Greece, we’re barely teens.  Like these older countries, we’ve created a national mythos that helps define who we are and what we believe.  Images of the patriots in the  Revolutionary War, cowboys in the Old West, and even gangsters from the days of Prohibition are the images we reference in our national conversation.

But there’s one icon that is perhaps more deeply ingrained in the national psyche than any other: the self-made man.  (With apologies to any feminists who argue, correctly, that the modern version should include the ’self-made woman’ as well, I’m going to stick with the male term for simplicity and ease of writing.)  Most prominently popularized by Horatio Alger and his rags to riches stories, the ideal self-made man comes from a poor background, and through hard work and his own efforts, manages to become a tremendous success.  The moral of the story: if you work hard and believe in capitalism, you too will be a success.

There’s only one problem: it’s not the whole truth.

Note: Bootstraps not a good alternative to a supportive, nurturing environment

Now, before you start flooding me with examples of people who started with little and ended with a lot, please understand: I’m not saying that you’re destined to stay in the same social class as your parents for the rest of your life.  Nor am I saying that there aren’t success stories of people from ‘ordinary’ backgrounds gaining fortunes as a result of their efforts.  There certainly are, and they are an inspiration to everyone who hopes to become wealthy one day, myself included.

The Problems with The Myth

The self-made man myth wouldn’t be such a problem if it weren’t for the flaws it creates in your view of  the world.  First, a self-made worldview ignores the roles of society and government in setting the stage for success.  It alters the public conversation about society and government from ‘Is society doing the right things, in the right proportion, to help individuals succeed?’ to ‘Why is the government taking MY money, which I earned entirely on my own?’  It leads to people forgetting the help and advantages provided by a good government (in the form of schools, public utilities, and rules to ensure openness) and an encouraging society (one in which accumulating wealth is not only allowed by private individuals, but encouraged) in building their fortunes.

Second, a self-made worldview ignores the contributions of others in our successes.  From parents who provide an education and solid home life (or at least keep us from working twelve hours a day in the mines) to the employers who give us our first job, there’s a whole array of people who make our success possible, whether we acknowledge them or not.  (To say nothing of the influence of a higher power, for those of use who happen to believe.)  If we feel that all we have is due to our own efforts, we’re that much less likely to help out our fellow people, making it that much harder for them to succeed, as well.

Finally, the idea of a self-made man creates a lack of sympathy for the less fortunate.  If all it takes to be a success is a willingness to work hard, then it stands to reason that people who don’t have much money must be slackers.  As a result, there’s no reason to give charity to them, as their lot in life is the result of their own efforts or lack thereof.  (This is similar to older cultures that believed that material wealth was the result of the favor from the god(s); if you were wealthy, God loved you, if you were poor, it must be because you sinned.)  Such a worldview leads to less charity and more harshness towards the destitute.

The True Lessons of the Self-Made Man

I don’t expect to change one of the American cultural archetypes overnight.  In fact, there are good lessons to be learned from stories of the self-made man, as well.  Hard work, a willingness to not give up, and a positive outlook on your efforts are all good lessons that you can learn from such tales.  (To say nothing of how inspirational they can be to those of us who aren’t incredibly wealthy…yet.)

However, when you read through such a story, or feel the desire to claim that you made it ‘all on your own,’ stop and think for a moment.  Did you benefit from a public school, either for yourself or in not having to start from scratch when training your employees, as a report from some of the nation’s wealthest people touts?  Did you benefit from parents or other mentors who pushed you in the right direction?  Did you have the advantages of wealth and a high class education, or simply the luck of being born in the right place at the right time?

Congratulations, you just realized some of the factors, other than hard work, that go into being a success.  Now, go out and spread the word, and remember that not everyone had the same advantages that were available to you.

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