The American Story is One of Progress Forged in Suffering and Resilience

The Present is no Exception Nor Will the Future Likely Be

“The changes in the human conditions are uncertain and frequent. Many, on whom fortune has bestowed her favours, may trace their family to a more unprosperous station; and many who are now in obscurity, may look back upon the affluence and exalted rank of their ancestors.”

—ALEXANDER HAMILTON, June 28, 1788

Source: Image of Alexander Hamilton courtesy of the New York Public Library.

I distinctly remember sitting on the couch with my wife during the depths of the COVID-19 pandemic. I had recently devoted myself full time to writing a book on the financial history of the United States. I had virtually no income and her job at a company that was struggling financially seemed increasingly uncertain. The future looked bleak.

Yet I remember turning to her and saying, “You know, things really don’t seem that bad right now.” I wasn’t minimizing what we—or countless others throughout the world—were experiencing. The pandemic and its aftermath were real sources of suffering. Moreover, our personal anxieties were not imaginary. My point was simply that we tend to judge our circumstances against the best years of our own lives rather than against the full span of hardship endured by previous generations.

By that standard, the 2020s didn’t seem as bleak. I had spent the previous three years immersed in more than two centuries of American history. As much as I could, I tried to relive the experiences of the people who lived it. I envisioned what it was like to live through the financial devastation of the Panic of 1819, the Hard Times of the 1840s, the carnage of the Civil War, the corruption and lawlessness of the Gilded Age, the despair of the Great Depression, and the unimaginable sacrifice of two world wars.

By the time I arrived back in the present, suffering still existed everywhere. But on average, the death, destruction, poverty, and hardship seemed comparably less severe than what previous generations had endured. Despite all of our problems, both the nation and our family had inherited a world that was, in many important ways, better than the one our ancestors knew. And it was because of their sacrifices and resilience that we received this gift.

America’s Volatile But Reliable Path of Progress

Source: Image of the Battle of Iwo Jima courtesy of the Library of Congress.

In a few days, the United States will celebrate its 250th birthday. At the present, there seems to be two competing perspectives on the nation’s past, present, and future. Some see America primarily through the lens of its vices. They describe a nation defined by violence, exploitation, and corruption. Others see it primarily through the lens of its virtues, celebrating its history as though its progress were the product of pure altruism, flawless markets, and pristine politics.

Having slowly read myself to the present, I have concluded with high conviction that neither perspective is complete. The uncomfortable truth is that America is the product of both. But—and this is the important part—over the past 250 years, the nation’s virtues have repeatedly proven stronger than its vices. Progress has been uneven, often painfully so, but it has been remarkably reliable over the long run.

Each of us must decide how to live in a world of chronic imperfection. My study of history has taught me to appreciate humility and patience because I have concluded that human nature was never destined to be perfected within a single lifetime. Moreover civilizations are destined to evolve slowly, advancing through countless setbacks over many generations.

My faith in the American people does not rest on a belief that we are uniquely virtuous. It rests on a track record that is grounded in an insatiable desire to become more virtuous. Time and again, Americans have demonstrated an extraordinary capacity to confront failure, correct mistakes, and move closer to our ideals. That does not mean progress is inevitable, nor does it guarantee that future generations will continue this tradition. But after studying 250 years of American history, I find little reason to believe that America’s better instincts are nearing their end.

The United States of America is a microcosm of humanity itself—imperfect, often divided, and frequently disappointing. Yet with each generation, Americans have continued striving toward something better. The journey is uneven, and every generation has stumbled. But each generation has also moved the nation forward in their own unique way toward its founding ideals.

That history is worthy of celebration, and it warrants gratitude for the suffering and resilience of our ancestors. But, perhaps most importantly, it is reason to remain faithful in the nation’s future.

On that note, Happy 250th Birthday to the United States of America!

Source: Image of bald eagle and eaglets courtesy of StockCake.

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Disclaimer: This is a personal newsletter written by Mark J. Higgins, CFA, CFP, in his individual capacity. The views expressed herein are solely those of the author and do not necessarily reflect the views, opinions, or practices of IFA or any other organization or entity with which the author is affiliated. This content is intended for informational and educational purposes only; it does not constitute professional investment advice, an offer, solicitation, or endorsement of any specific financial strategy, product, or service. The discussion contains the author’s opinions based on publicly available information and should not be interpreted as factual or predictive of future events.

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Any references to future economic or monetary outcomes in this newsletter are speculative and based on historical analysis and public information. Comparisons to past events, like the Great Inflation or post–World War I inflation, are meant to provide context, not predict the future. Readers should view these discussions as hypothetical and not rely on them for financial decisions. Always consult a qualified professional for advice.