between 1951 and 1997 the proportion of government expenditure on defense fell from 24 percent to 7, while the proportion on health and welfare rose from 22 percent to 53. And that’s before New Labour came along to widen the gap further.24

Those British numbers are a bald statement of reality: you can have Euro-sized entitlements or a global military, but not both. What’s easier to do if you’re a democratic government that’s made promises it can’t afford— cut back on nanny-state lollipops, or shrug off thankless military commit-ments for which the electorate has minimal appetite?

In the grim pre-Thatcher nadir of the 1970s, the then Prime Minister, Jim Callaghan, confided to a pal of mine that he thought Britain’s decline was irreversible and that the government’s job was to manage it as gracefully as possible. He wasn’t alone in this: an entire generation of British politicians, on both sides of the aisle, felt much the same way. They rose onward and upward, “managing” problems rather than solving them. You can already see the same syndrome in Washington. While Obama seems actively to be willing U.S. decline as some sort of penance to the planet, many others have accepted American diminishment as a mere fact of life to be adjusted to as best one can. Yet, as noted, national decline is always at least partly psychological. Even in the long ebbing of imperial grandeur, there was no rational basis for modern Britain’s conclusion that it had no future other than as an outlying province of a centralized Euro nanny state dominated by nations whose political, legal, and cultural traditions are entirely alien to its own. The embrace of such a fate is a psychological condition, not an economic one. Thus, Hayek’s greatest insight in The Road to Serfdom, written with an immigrant’s eye on the Britain of 1944:

There is one aspect of the change in moral values brought about by the advance of collectivism which at the present time provides special food for thought. It is that the virtues which are held less and less in esteem and which consequently become rarer are precisely those on which the British people justly prided themselves and in which they were generally agreed to excel. The virtues possessed by Anglo-Saxons in a higher degree than most other people, excepting only a few of the smaller nations, like the Swiss and the Dutch, were independence and self-reliance, individual initiative and local responsibility, the successful reliance on voluntary activity, noninterference with one’s neighbor and tolerance of the different and queer, respect for custom and tradition, and a healthy suspicion of power and authority.

Within little more than half-a-century, almost every item on the list had been abandoned, from “independence and self-reliance” (40 percent of Britons receive state handouts25) to “a healthy suspicion of power and authority”—the reflex response now to almost any passing inconvenience is to demand the government “do something,” the cost to individual liberty be damned. The United Kingdom today is a land that reviles “custom and tradition,” requires criminal background checks for once routine “voluntary activity” (school field trips), and in which “noninterference” and “tolerance of the different” have been replaced by intolerance of and unending interference with those who decline to get with the beat: Dale McAlpine, a practicing (wait for it) Christian, was handing out leaflets in the town of Wokington and chit-chatting with shoppers when he was arrested on a “public order” charge by Police Officer Sam Adams (no relation), a gay, lesbian, bisexual, and transgender community outreach officer.26 Mr. McAlpine had said homosexuality is a sin. “I’m gay,” said Officer Adams. Well, it’s still a sin, said Mr. McAlpine. So Officer Adams arrested him for causing distress to Officer Adams.

In Britain, everything is policed except crime. The government-funded National Children’s Bureau has urged nursery teachers and daycare supervisors to record and report every racist utterance of toddlers as young as three.27

Like what?

Well, if children “react negatively to a culinary tradition other than their own by saying ‘Yuk,’” that could be a clear sign that they’ll grow up to make racist remarks that could cause distress to the anti-racism community outreach officer. Makes a lot of sense to get all their names in a big government database by pre-kindergarten.

While the gay, lesbian, bisexual, and transgender community outreach officer is busy arresting you for offending the gay, lesbian, bisexual, and transgender community outreach officer, in the broader scene London now has more violent crime than New York and Istanbul. From personal observation, an alarming number of the men on its streets seem to affect the appearance of the bad guys’ crew in Pirates of the Caribbean, shaven headed with large earrings, and the sprightly swagger of a rum-fueled sea dog sighting one of the less pox-ridden strumpets in Tortuga. As for the English roses, at about 2:00 on a Wednesday afternoon, in order to enter a convenience store, I was obliged to step over a girl of about twelve dressed like a trollop and collapsed in her own vomit. But never fear, the government is taking action: in order to facilitate safer binge drinking, police announced that they would be handing out free flip-flops outside nightclubs in order to help paralytic dolly birds stagger home without stumbling in their high heels and falling into the gutter.28

In 2006, on a train in South London, a 96-year-old man was punched in the face and blinded in one eye.29 His 44-year-old attacker had boarded the crowded tram, tried to push past Shah Chaudhury in the aisle and become enraged by the nonagenarian’s insufficient haste in moving out of the way. “You bastard!” he snarled, and slugged him. Much of the commentary concerned the leniency of the sentence. Yet that wasn’t what caught my eye about the story of poor Mr. Chaudhury. In a statement to the court, the the victim “said he had been standing in the aisle of the tram because nobody would give up their seat for him.” He was ninety-six years old and relied on two walking sticks. How can it be that not a single twenty/thirty/fortysomething in the car thought to offer his seat?

Some years ago the livelier members of the Royal Canadian Mounted Police were illegally burning down the barns of Quebec separatists. When this became public, Pierre Trudeau blithely responded that, if people were upset by the Mounties’ illegal barn-burning, maybe he’d make it legal for the Mounties to burn barns. George Jonas, one of our great contemporary analysts, responded that Monsieur Trudeau had missed the point: barn-burning wasn’t wrong because it was illegal; it was illegal because it was wrong.30

That’s an important distinction. Once it’s no longer accepted that something is wrong, all the laws in the world will avail you naught. The law functions as formal embodiment of a moral code, not as free-standing substitute for it. Beating up a 96-year-old isn’t wrong because it’s illegal; it’s illegal because it’s wrong. Not offering your seat to a 96-year-old isn’t illegal at all, but it’s also wrong. And, if a citizen of an advanced western social democracy no longer understands that instinctively, you can pass a thousand laws and issue a million ASBOs (the “Anti-Social Behavior Orders” introduced by Tony Blair) and they will never be enough. British society has come to depend on CCTVs—closed-circuit cameras in every public building, every shopping center, every street, even (in some remote rural locales) in the trees. In some cities, traffic wardens have miniature cameras in their caps to film ill-tempered motorists abusing them for writing a ticket.31 Britain is said to be home to a third of all the world’s CCTVs, and in the course of an average day, the average Briton is estimated to be filmed approximately 300 times.32 So naturally the Croydon trolley had a camera, and it captured in vivid close-up the perpetrator attacking his victim. And a fat lot of good the video evidence did Mr. Chaudhury.

Churchill called his book The History of the English-Speaking Peoples—not the English-Speaking Nations. The extraordinary role played by those nations in the creation and maintenance of the modern world derived from their human capital. What happens when, as a matter of state policy, you debauch your human capital? The United Kingdom has the highest drug use in Europe,33 the highest incidence of sexually transmitted disease,34 the highest number of single mothers,35 the highest abortion rate;36 marriage is all but defunct, except for toffs, upscale gays, and Muslims. A couple of years ago, the papers reported that stabbings are so rampant in British schoolyards that a company that specializes in military body armor is now manufacturing school blazers lined with Kevlar.37 For Americans, the quickest way to understand modern Britain is to look at what LBJ’s Great Society did to the black family and imagine it applied to the general population.

American exceptionalism would have to be awfully exceptional to suffer a similar expansion of government and not witness, in enough of the populace, the same descent into dependency and depravity. As the United Kingdom demonstrates, a determined state can change the character of a people in the space of a generation or two. When William Beveridge laid out his blueprint for the modern British welfare state in 1942, his goal was the “abolition of want,” to be accomplished by “cooperation between the State and the individual.”38 In

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