Throughout the history of the United States, socioeconomic issues have been debated in many ways by thinkers, politicians, and reformers. While some economic philosophies of past centuries have endured, others have faded into history. During the mid- to late-1800s and even into the early 20th century, Social Darwinism, as promoted by Herbert Spencer and William Graham Sumner, played a key role in shaping society’s economic dynamics. Their central idea was that the “fittest” survive—meaning that the rich and powerful were naturally the most capable—and that government should avoid interference.
Many critics opposed this view, arguing that unrestricted competition harmed the vulnerable and enabled the upper classes to exploit others. In my personal opinion, society should be based on hard work, determination, perseverance, destiny, and merit—not on inherited privilege. A person should succeed because of effort and character, not merely because they were born into wealth.
During the 1700s and 1800s, several influential economic philosophers shaped the foundations of social and economic thought in America:
Robert Owen envisioned a utopian society in which property was collectively owned within cooperative settlements. He believed people were selfish because they lived in a “dog-eat-dog world.” In my view, this ideal would be unworkable today, as people place too much pride in their possessions and the acquisition of capital.
Adam Smith introduced the laws of supply and demand and emphasized competition as a natural regulator of the economy. As demand for a product rises, so does its price; when demand falls, prices decline. Competition, he argued, improves quality and keeps prices fair. This system still shapes our economy today, though modern consumer behavior is also driven by brand recognition—people often buy what they see advertised, regardless of quality or price.
David Ricardo proposed the “iron law of wages,” asserting that when labor is plentiful, wages decline, and when labor is scarce, wages increase. This concept remains visible today: jobs requiring advanced degrees, such as law or medicine, often pay more because the labor pool is smaller and training is expensive.
John Stuart Mill criticized the extremes of laissez-faire economics, warning that unchecked capitalism could harm society. While he supported limited government interference, he believed the state should act to protect public welfare. I agree that some government oversight is necessary to prevent corporate abuse, though in modern times the closeness of government and corporations raises its own concerns.
Thomas Malthus argued that poverty was inevitable because population growth would outpace food supply. While his theory never fully materialized on a global scale, poverty remains an issue even though modern technology and agricultural innovation have largely prevented famine in developed nations.
Among Social Darwinists, Herbert Spencer believed that human society mirrored the natural world—those with superior intellect, self-control, and adaptability were the “fittest” and deserved to thrive. He favored a laissez-faire society with minimal government interference, opposing public welfare programs and state-supported education. Industrialists such as Andrew Carnegie and John D. Rockefeller embraced Spencer’s philosophy, seeing their wealth as evidence of their fitness.
William Graham Sumner combined the Protestant ethic, classical economics, and Darwinian natural selection. He argued that industrious, temperate, and frugal individuals were the most “fit” for success. He believed that wealth should be preserved within families and viewed millionaires as products of natural selection—society’s chosen few. Sumner opposed most government intervention, fearing it would lead to socialism, and believed social evolution could not be engineered through legislation.
These ideas faced significant criticism. Richard Ely, in The Past and Present of Political Economy, rejected the notion that economics should serve the wealthy at the expense of laborers. He condemned using laissez-faire to justify inaction while people suffered. In 1885, Ely and colleagues founded the American Economic Association, advocating for government as a force for social progress.
Simon Patten, another critic, challenged the wage-fund theory and emphasized the need for adapting economic policies to industrial society. Reformers like Henry George argued that competition was necessary but also saw progress hindered by inequality created by civilization itself. Edward Bellamy, in Looking Backward, proposed nationalizing industries to eliminate the brutalities of competition, claiming that the competitive system brought out the worst in all classes.
A significant reform movement during this period was the Social Gospel, led by clergymen such as Washington Gladden, Lyman Abbott, Walter Rauschenbusch, and others. Observing urban poverty and harsh labor conditions, they sought to bridge the gap between harsh individualism and socialism by advocating for cooperation between employers and workers. They emphasized Christian principles of goodwill, mutual aid, and gradual reform rather than unrestrained competition.
In my view, Spencerian social theory is deeply flawed because human society cannot be governed by the laws of the jungle. Economic systems must balance competition with fairness and protection for all. I support the ideals of the Social Gospel movement, which promoted cooperation in the workplace—an approach that can lead to shared prosperity.
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