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Ray Dalio Ray Dalio @raydalio · 1.5K subscribers
Post #175 596
Originally shared on July 4th

I love everything about the 4th of July, and the 250th anniversary is especially great for me because I am joining with family and friends for a reading of the Declaration of Independence, a BBQ, and fireworks.

As I reflect on what has happened over the 250 years that followed July 4th, 1776, it seems like an impossible dream come true. Think about it. Imagine that at the outset on July 4th, 1776, you were asked what odds for success a country would have if it would be mostly made up of poor immigrants coming from all different countries with very different cultures and religions and it would be governed by a political system in which the leaders reported to these people who themselves had to vote, compromise, and submit to life-changing decisions that many disagreed with. Would you bet that it would do exceptionally well and improve for 250 years? I would have thought that virtually impossible, yet America has been exceptional for 250 years.

I also see that it was shockingly terrific and lucky for me to have lived through the best part of those 250 years because I was born four years after the 1945 post-World War II beginning of the new American world order, which gave me the best time in history in the best place in the world.
These reflections give me a deep appreciation for the principles and practices—the secret sauce—that created and sustained this remarkable American story, a fear that we are losing sight of them, and a sense of responsibility to contribute to sustaining them.

Added on July 6th
I wanted to expand on the thinking I expressed on July 4th when I talked about the remarkable secret sauce that produced the exceptional success that the United States has had over the last 250 years. It consisted of bringing together 1) a mixture of relatively poor, hardworking immigrant people with their diverse cultures who one might have thought would have clashed but instead worked well together, 2) an exceptional amount of freedom that one might have thought would have caused disorder and breakup but instead led to a chaotic, rapid evolution, and 3) a democratic federalist government system in which the masses ruled over the leaders that one might have thought would have led to constant fighting and political stalemates but instead led to compromises and rule-following even when many thought the decisions were wrong and against their interests.

Rather than believing that the United States is intrinsically successful, I believe that it, like all successful countries throughout history, has been successful because of the causes (i.e. its secret sauce) that brought about its success and that there is a high risk of losing sight of those causes and the success they brought about. From studying history, I've learned that while there were many secret sauces that have worked, those that worked best for all countries throughout history have three essential ingredients: 1) educating children well so that when they grow into adults they have what it takes to be productive and the civility to be good with each other so that they can be collectively successful and share the rewards of their success, 2) having a good total system for government that consists of an effective political system, an effective legal/governance system, and an effective money/economic system that benefits most of its people who appreciate and support the system, and 3) staying out of wars--both civil and international--that are big enough to ruin the country, or winning them. I have been a great beneficiary of experiencing those things and admire all countries that have them because they are the most fundamental ingredients for most countries’ and most of their peoples’ successes. At the same time, I find that by my objective indicators (see my Country Power Index), the United States is weakening in some key ways.
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