Thanksgiving: A Celebration of the Early Death of Socialism
I used to hand out Ben Powell's story and similar stories to my students before Thanksgiving.
For about the last 15 years I taught at the Naval Postgraduate School, if I was teaching in the fall quarter I handed out a reading similar to the one below. I told the students that at Thanksgiving gatherings, people often refrain from discussing politics, including economic policy, and that that’s generally a good idea. But, I added, if you want to blow your relatives’ minds, tell them this story.
Here’s an excerpt:
In 1620 Plymouth Plantation was founded with a system of communal property rights. Food and supplies were held in common and then distributed based on equality and need as determined by Plantation officials. People received the same rations whether or not they contributed to producing the food, and residents were forbidden from producing their own food. Governor William Bradford, in his 1647 history, Of Plymouth Plantation, wrote that this system was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. The problem was that young men, that were most able and fit for labour, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. Because of the poor incentives, little food was produced.
Faced with potential starvation in the spring of 1623, the colony decided to implement a new economic system. Every family was assigned a private parcel of land. They could then keep all they grew for themselves, but now they alone were responsible for feeding themselves. While not a complete private property system, the move away from communal ownership had dramatic results.
This is from Benjamin Powell, “The Pilgrims’ Real Thanksgiving Lesson,” Independent Institute, November 25, 2008.
And what were the results? Before reading on, ask yourself what you would expect. Before the change, if there were n people in the plantation, everyone got 1/n of the overall output. So with n being relatively large, 1/n of your additional output from working would be relatively small. After the change, your share of your additional output would be 100%.
So what would be the results? Anyone? Anyone? Bueller?
Powell continues:
This change, Bradford wrote, had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been. Giving people economic incentives changed their behavior. Once the new system of property rights was in place, the women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability.
Once the Pilgrims in the Plymouth Plantation abandoned their communal economic system and adopted one with greater individual property rights, they never again faced the starvation and food shortages of the first three years. It was only after allowing greater property rights that they could feast without worrying that famine was just around the corner.
Incentives matter. Socialism kills.
400 years later, lesson still not learned.
Wonderful.
This was a great little addition: "So what would be the results? Anyone? Anyone? Bueller?"
Love the reference. :-)