Pax Americana

Law and order vital to economy

History can be a great teacher, if we pay attention to it. It is worth remembering that Pax Romana began with the Roman emperor Augustus and lasted over 200 years. Called the Roman Peace, this period emphasized the critical importance of law and order. And, as we know, the Roman empire reigned as the dominant empire of the time.

A similar situation developed during the 1800s and early 1900s with the British empire. Modeled after the Roman empire, Pax Britannica touched nearly every corner of the globe. The fact that English is the international language is testimony to the extent of British influence. The victory over Napoleon in 1815 left the British without any serious rivals worldwide. The Royal Navy patrolled the seas, and Britain dominated international trade. All of this began to come to an end at the conclusion of World War I, culminating in decolonization at the end of the World War II.

Both of these empires demonstrated the value of control of the sea routes in the development of power through international trade.

Pax Americana, the “American Peace,” began to develop with the conclusion of World War II. The victory of the Allies was due in no small measure to American industrial power that produced military equipment and munitions in quantities that were heretofore unimaginable. America was queen of the ocean routes, and everyone knew it. There were no challengers and have not been until the dawn of the 21st century.

The United States made sure the sea lanes were safe, and as a result, international trade mushroomed. Companies know that when they put merchandise on a ship, it will arrive safe and sound. Except for some Somali pirate activity, this has been the case for nearly 80 years. This is likely to continue, but a challenger is on the horizon. China is flexing its muscles and has naval aspirations of its own.

The whole point is that peace and order matter. The rule of law is important both nationally and internationally. If the sea lanes are safe, and disrupters are dealt with swiftly, order remains, and economic growth and development are enhanced.

The same can be said for any domestic economy. When civil strife, corruption, and disorder reign, bad things happen economically. All we have to do is look at some major American cities where disorder has become the norm to see what happens. Citizens flee, businesses flee, tourists don’t want to visit, and the social and economic fabric of the city deteriorates.

One of the powerful hallmarks of American society has been the rule of law. Motorists dutifully wait at stoplights when no one is coming in any direction. Well over 150 million Americans file their tax returns each year, and most are honest in their reporting even though they know they have a faint chance of being audited.

John Adams famously said, “Morality and virtue are the foundation of our republic, and necessary for a society to be free.” For a republic to be strong and vital, its citizens must be attentive to the law.

When criminals run the streets, neither citizens nor the merchandise they produce and sell will be safe. There is a serious social and economic price to pay for this behavior. The loss of grocery and general merchandise stores in certain areas of our cities seriously degrades the quality of life and causes citizens to flee.

All of this only makes matters worse. They are fleeing because of the breakdown of law and order which reduces the quality of life. In addition, all the bad news hammers tourism and business travel, and conditions deteriorate further.

The principle is immutable. International peace and safety promotes international trade and development across the globe. Domestic tranquility promotes jobs, economic growth, prosperity, and the quality of life. John F. Kennedy’s quote, “A rising tide raises all boats,” is quite applicable here.

We must keep the peace in our communities and remember that law and order are essential to our social and economic future.

Dr. David F. Rankin is president emeritus at Southern Arkansas University where he’s been a longtime professor of finance and economics. For the past 26 years, he has been chairman of the Governor’s Council of Economic Advisors and is the author of “The Economics of Freedom” and “What Every American Needs to Know about Economics.” He may be reached through www.rankineconomics.com.