Wednesday, July 22, 2009

Economic Lessons from the Amish

By Dan McLaughlin for the Ludwig von Mises Institute. Photos from the NPR article, "A Mortgage Banker In Amish Country".

The Amish are interesting people. They make a conscious choice to live without most of the modern conveniences that Americans take for granted. Different communities have varying perspectives on what is allowable and what is not, but they all have a common belief that they must maintain a separation from the world and worldly things. They provide lessons to us that they may not intend, but are valuable nonetheless.

They generally don't use insurance, but they share risk in a different way. They have a strong sense of internal community, and in time of disaster, they are drawn together to help their neighbors. When someone's barn burns down, there is a barn raising, where the whole community gathers to build a new one. It is an amazing display of cooperation.

Many people view full employment as the primary purpose of society. It is a concept that animates much of the discussion in economics and politics. If full employment truly is the primary goal of our society, then we should follow the lead of the Amish. They have developed a social structure that provides full employment for every member. In fact, the problem is not too little employment, but too much employment. They have to have large families with many helping hands to absorb all of the employment that the lack of modern equipment affords them.

Because they do not use tractors, they need many hands to plow, cultivate, and harvest the fields. Milking cows by hand is time-consuming manual labor. Shoveling manure by hand provides employment for some of the less fortunate members of the family. Cutting, transporting, and stacking wood for heat and cooking provides more work that can keep someone busy and sweaty for a considerable period of time.

By being fairly self reliant, rather than maximizing the benefits of national and international divisions of labor, they choose to be less efficient and to perform activities that subtract from the time they can devote to what they do best. By shunning modern labor-saving devices and technologies — such as electricity, hay bailers, power equipment, and modern milking facilities — they choose to live with less of everything. Many fall within the modern definition of poverty. Nearly all use child labor. They would starve without it.

Living with less is not necessarily a bad thing. Most Amish do not regret the choices they made and find their lives quite rewarding. They are generally people of character who stand up for what they believe in, for the whole world to see.


"No dream comes true until you wake up and go to work" -- Amish Proverb

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