Celebrating 250 Years of American Innovation

In this video celebrating 250 years of American innovation, Ken Fisher, a market historian and biographer, traces the evolution of global capitalism and technological advancement. He notes that while capitalism was rooted predominantly in Britain at the beginning of the 19th century, a major shift occurred toward the end of that century and into the 20th century, with America increasingly becoming the epicenter of innovation.

Fisher highlights the American Industrial Revolution of the 1880s as a pivotal moment, emphasizing how American inventions and techniques made products cheaper, better, and more accessible to people. He then discusses a significant but overlooked regulatory change in 1912 when New York began eliminating the 'par value' requirement for stocks. This shift fundamentally changed how investors valued companies—moving from thinking about asset value to considering the net present value of future earnings streams. Though this change occurred just before World War I disrupted markets, it subsequently fueled a robust stock market boom.

Fisher catalogs numerous American innovations—the light bulb, the airplane, the Farmall tractor, the semiconductor, and the laser—while acknowledging that not all innovations originated in America (noting Lego as a Danish example). However, he argues that America overwhelmingly dominates in both the scale and impact of innovation. As evidence, he presents a striking comparison: of the 25 largest European companies by market capitalization, none are younger than 50 years old, whereas of the 25 largest U.S. companies, 13 are less than 50 years old. Furthermore, nearly all companies globally with market capitalizations exceeding $200 billion are American, from Uber to Amazon.

Fisher attributes this American advantage to a unique cultural phenomenon he calls 'crazy people with crazy ideas that sometimes work and change the world'—a form of entrepreneurialism and risk-taking that is rare outside the United States. He concludes by emphasizing that American capitalism has not only benefited Americans but has improved lives globally by introducing innovative products, creating less tedious work, and enhancing overall quality of life. He calls for celebration of this achievement on the nation's 250th anniversary.