Communal living — the utopian dream that never dies

Did you know that when the Puritans first arrived in America, they set up a commune?  I didn’t, but that’s what John Stossel says happened:

When the Pilgrims first settled the Plymouth Colony, they organized their farm economy along communal lines. The goal was to share everything equally, work and produce.

As with all exercises in Communism, it didn’t work:

Why? When people can get the same return with a small amount of effort as with a large amount, most people will make little effort. Plymouth settlers faked illness rather than working the common property. Some even stole, despite their Puritan convictions. Total production was too meager to support the population, and famine resulted. Some ate rats, dogs, horses and cats. This went on for two years.

Only when the Pilgrims made a conscious effort to abandon their socialist enterprise and put a little self-interest into the mix did they have the kind of harvest for which they could give thanks:

“So as it well appeared that famine must still ensue the next year also, if not some way prevented,” wrote Gov. William Bradford in his diary. The colonists, he said, “began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery. At length after much debate of things, [I] (with the advice of the chiefest among them) gave way that they should set corn every man for his own particular, and in that regard trust to themselves. … And so assigned to every family a parcel of land.”

The people of Plymouth moved from socialism to private farming. The results were dramatic.

“This had very good success,” Bradford wrote, “for it made all hands very industrious, so as much more corn was planted than otherwise would have been. … By this time harvest was come, and instead of famine, now God gave them plenty, and the face of things was changed, to the rejoicing of the hearts of many. … “

Stossel’s conclusion is one worth remembering as the Democratic candidates make their constantly recurring promises to take our money and spend it “wisely” on our behalf:

When action is divorced from consequences, no one is happy with the ultimate outcome. If individuals can take from a common pot regardless of how much they put in it, each person has an incentive to be a free rider, to do as little as possible and take as much as possible because what one fails to take will be taken by someone else. Soon, the pot is empty and will not be refilled — a bad situation even for the earlier takers.

What private property does — as the Pilgrims discovered — is connect effort to reward, creating an incentive for people to produce far more. Then, if there’s a free market, people will trade their surpluses to others for the things they lack. Mutual exchange for mutual benefit makes the community richer.

Secure property rights are the key. When producers know that their future products are safe from confiscation, they will take risks and invest. But when they fear they will be deprived of the fruits of their labor, they will do as little as possible.

That’s the lost lesson of Thanksgiving.

To which I say, Amen!