48. RELATION OF GOVERNMENT TO BUSINESS.--Since our material well-being rests upon an economic basis, the public has a vital interest in business. The rise of great corporations and the necessity of safeguarding the public from monopolistic abuses make necessary a careful examination into the relation of government to business. We shall meet with this question: Shall the government regulate, or actually own, businesses of vital importance to the public? Equally knotty, but fully as interesting, is the tariff question. Should Congress tax foreign goods entering this country, and, if so, upon what principles should this tax be determined? This will bring us to the general problem of taxation, a subject to which the American people will probably devote an increasing amount of attention in the next few decades. The question of conserving our natural resources must also be discussed. Last in this group of problems may be mentioned the question of money and banking. In discussing this important subject we shall notice, among other things, the interesting Federal reserve system, which, it is hoped, will protect us from panics in the future.

49. PROBLEMS IN EFFECTIVE GOVERNMENT.--The economist has good reason for declaring that the getting of a living is one of the most fundamental concerns in life; on the other hand, no people can long get a comfortable living without the aid of a helpful system of government. Government must be made effective. This introduces us to another series of problems. First of all, who shall share in government? And how may we improve the methods by which we select the agents of government? How may corruption and inefficiency be eliminated from American government? What is the significance of the Initiative, the Referendum, and the Recall?

These questions must prove of fascinating interest to those who think of democracy as a living inst.i.tution which is constantly growing, developing, adapting itself to changed conditions.

50. WHAT IS THE PROMISE OF AMERICAN LIFE?--Rich in natural resources, ample in extent, encouraging to man's helpful efforts, America fulfills the first condition of national greatness. Intelligent and industrious, law-abiding and, devoted to the building of homes, our population fulfills the second condition.

Here we have all the raw materials out of which to build a great nation. Already we have made marked contributions to civilization, and yet it should not be forgotten that our chief claim to national greatness rests upon the promise which we show of being able to perfect American democracy.

To what extent will this promise actually be realized? As a nation we are yet young, as a people we have scarcely begun the greatest experiment in democracy which the world has ever seen. Shall we endure, shall we attain to a half-success, shall we succeed gloriously?

Much depends upon the extent to which each of us a.s.sumes the responsibilities of citizenship. Those who have gone before us conquered a wilderness, expanded and preserved the Union. But it is not for us complacently to accept the result. Much has been done, but much more remains to be done. Our goal is the greatest possible perfection of our economic, social and political life. Each age may be said to have its peculiar burdens and responsibilities: the prime task of the colonist was to foster the tender shoot of democracy; that of the western pioneer was to fashion homes out of a wilderness; the burden of our generation is to grapple with the present-day problems of American democracy. Without a high sense of personal responsibility, coupled with an intelligent and consistent effort, we can never reach the high goal admittedly possible.

51. THE POINT OF VIEW IN PROBLEM STUDY.--To see American democracy and to see it as a whole should be our aim throughout the remainder of this book. Now this is not easy. The danger is that the unwary student will interpret the large amount of s.p.a.ce devoted to "problems" as meaning that American life is preeminently unsettled and defective.

This is a temptation to be guarded against. Though we shall uncover many defects, it should be remembered that we are predominantly a normal, healthy, prosperous people. But our virtues demand our attention less urgently than do our defects. If we seem to be overconcerned with the defects of American life, the student should not conclude that American life is primarily defective. Rather, he ought to realize that it is precisely because a situation involves a problem that our attention is challenged.

Nor should problems be looked upon as something to be ashamed of.

Where life is dull and civilization static, there are relatively few problems; where life is progressive and civilization steadily advancing, problems are numerous and pressing. Problems imply adjustment, development, the desire for improvement and advancement.

They are signs of progress, the growing pains of civilization. If we bear this in mind, we shall be in a fair position to see American democracy in true perspective, without undue distortion of our viewpoint, and without prejudice to our judgment.

QUESTIONS ON THE TEXT

1. Why is there nothing to be gained by debating whether or not American democracy is imperfect?

2. Why has the circle of our problems been steadily widening during the last century?

3. Trace the relation between an enlarged social conscience and the number of problems confronting us.

4. What is one danger of paternalism?

5. Give a definite example to ill.u.s.trate the complexity of our modern problems.

6. Discuss the importance of the economic background in problem study.

7. What problems may be included under the term "industrial reform"?

8. What problems arise in connection with public interest in business?

9. Name some of the problems arising in connection with the need for effective government.

10. What is the importance of individual responsibility in studying the problems of American democracy?

11. Outline clearly the point of view to be maintained in studying these problems.

REQUIRED READINGS

1. Williamson, _Readings in American Democracy_, chapter v.

Or all of the following:

2. Bryce, _The American Commonwealth_, vol. ii, chapters ci, cxiv, cxix, and cxxii.

3. Dunn, _The Community and the Citizen_, pages vii-xii.

4. McLaughlin, _Steps in the Development of American Democracy_, chapter viii.

QUESTIONS ON THE REQUIRED READINGS

1. What, according to Lord Bryce, are the essential intellectual traits of the ma.s.ses of the American people? (Bryce, pages 825-826.)

2. Lord Bryce says that "there are elements in the life of the United States which may well make a European of any cla.s.s prefer to dwell there rather than in the land of his birth." What are these elements?

(Bryce, pages 870-873.)

3. What comment does Lord Bryce make upon the quality of humor in the American character? (Bryce, page 876.)

4. What three advantages does the United States have over European countries in the matter of grappling with modern problems? (Bryce, page 912.)

5. Explain the statement that "Democracy rests on faith." (McLaughlin, pages 181-182.)

6. What is meant by the statement that "Democracy is fundamentally a matter of human relationships"? (McLaughlin, pages 189-190.)

7. What, according to Lord Bryce, are the four chief defects of American democracy? (Bryce, page 632.)

8. What are the essential qualities which civic education should aim to cultivate? (Dunn, pages xi-xii.)

TOPICS FOR INVESTIGATION AND REPORT

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1. Make a list of the problems which in any way affect you as a citizen in the community. List these problems in the order in which they occur to you, or are discovered by you. Comment upon the confused and disorderly appearance of the problems so listed.

2. Cla.s.sify the problems on your list according as they are economic, social or political.

3. Cla.s.sify the problems on your list according as they are local, state or national.

4. Comment upon the complexity and inter-relationship of the problems so cla.s.sified.

5. What agencies, public, semi-public, or private, are studying the problems on your list?

6. What difference of interest do the citizens of your community show in local, state and national problems?

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