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conflict, established in its aftermath a new balance that let each King select the
religion of his subjects. Cuius regio, eius religio as the agreements of Westphalia
decided in 1648 - or Whose realm, whose religion. This produced some stability, but
not for long. You could read that line, after all, very personally and see what it
demanded next: My realm, my religion.
In a sense, this revolutionary tumult was necessary to pull power froma
comfortable, established asymmetric arrangement, in which a few people controlled
so much, and into something more symmetric. Luther’s Reformation thinking made
God directly, instantly accessible to anyone. (Just as Copernicus’ scientific way of
thinking gave us, eventually, the ability to question if God existed at all.) Individuals
— and the very birth of the idea of individualism was another heretical slap at the old
institutions - could balance and contend and argue as equals. The notion that men
were “created equal” became increasingly evident in this generation, even as
establishing that equality triggered the French Revolution, the American Civil War
and countless similar conflicts. Democratic systems aspired to enshrine this new
balance, shifting countries from rule-by-birth to rule-by-majorities. In economics,
markets reflected the new picture of power too. How good is that product? What is
the price? Is there demand? became the essential questions, not Which Lord controls
that field. Releasing power into the busy arms of businessmen, politicians, scientists
and artists meant ideas, politics and innovations contended one against the other.
They got better. They evolved. And the sum of all these interacting pieces made
sustained economic growth into a reality for the first time in history. Ina
“commercial society,” Adam Smith explained in The Wealth of Nations, “Every man
lives by exchanging, or becomes in some measure a merchant.” Smith didn’t mean
everyone was really a merchant, rather that in a world of markets each of us - our
labor, our ideas, our capital - is a commodity. We are liberated, but only to compete.
For votes, for jobs, for resources.
If the old faiths and institutions couldn't stand the pressures of these powerful,
equalizing forces, then new ones had to be built. “The scaffolds humans erect,” the
Nobel prize-winning economist Douglass North called these foundations.> The idea
of equality of influence or power - not merely opportunity - demanded new
containers: voting booths, congresses, unions. Rule of law was one of the most
urgently essential: a single code that could be laid down evenly across a society,
demanding that principles of order outweighed the habitual advantages of
prominence or power or birth. Law aspired to make men equal in front of courts.
This, in turn, suggested a new degree of fairness up and down the social order.
Broader literacy, the standardization of measurements or the birth of universal
credit and currencies were all tools for spreading access. Museums, scientific
congresses and industrial fairs helped turn sparks of theoretical knowledge into the
94 In a commercial society: Adam Smith, The Wealth of Nations, (Oxford: Oxford
University Press, 2008) 32
°5 “The scaffolds humans erect”: Douglass C. North, Understanding the Process of
Economic Change, (Princeton, N.J.: Princeton University Press, 2010) 48
69
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