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Exploring American Stories: Insights from Economic Prism

Wish that I was on ol’ Rocky Top
Down in the Tennessee hills
Ain’t no smoggy smoke on Rocky Top
Ain’t no telephone bills

Once I had a girl on Rocky Top
Half bear, other half cat
Wild as a mink, but sweet as soda pop
I still dream about that

Rocky Top, As performed by the Osborne Brothers

Rise and Fall

This tale stretches back over a billion years, to the time of the Proterozoic Era. To grasp the profound duration of this period is to understand the process of sedimentary rock formation and your connection to the natural world through time.

Over hundreds of millions of years, deposits of clay, silt, sand, gravel, and calcium carbonate accumulated on the ocean floor, shaping the ancient margin of the North American continent. These sediments solidified over time, resulting in layers of sedimentary rock reaching depths of more than nine miles.

As the African tectonic plate pushed against the North American plate, these originally horizontal rock layers twisted and folded upwards, forming the Appalachian Mountain range that stretches from Newfoundland, Canada, to Alabama.

Massive, ancient rocks were thrust northwest, over younger formations, along a nearly flat-lying fault called the Great Smoky Fault. Limestone deposits in Cades Cove, within the Smoky Mountains, still contain fossils of tiny crustacean shells that swam in ancient waters over 450 million years ago.

It is believed that at one time, these mountains soared as high as the peaks found in today’s actively colliding continental zones, such as the Himalayas, where Mount Everest stands at over 29,000 feet above sea level.

However, nothing withstands the test of time forever. With each rise comes an inevitable decline. Today, the Appalachian Mountains are but a shadow of their former glory, with the tallest peak barely exceeding 6,680 feet. Geologists estimate they erode at a rate of around two inches every thousand years.

Nonetheless, the beauty that remains is truly awe-inspiring.

Overmountain Men

The Southern Appalachian region is more accurately depicted by its ancient landscapes than by any political boundaries. For clarity, we will refer to the southern Appalachian area as defined by the U.S. Forest Service, which encompasses West Virginia, southwestern Virginia, eastern Kentucky, East Tennessee, western North and South Carolina, northern Georgia, and northeastern Alabama.

The early settlers of Appalachia during the 18th-century westward expansion of colonial America were primarily Scots-Irish, groups who had faced rejection twice, first in Ulster where they were utilized by King James I of England to displace the Irish, and later fleeing British rule that infringed upon their Presbyterian beliefs. They sought refuge in America.

By the 1770s, it is estimated that over 250,000 Scots-Irish had settled in the American colonies, many establishing their homes in the hills and mountains of Southern Appalachia. They brought with them fiddle music, dance traditions, and the craft of whiskey distilling. Mark Sohn, in his book “Appalachian Home Cooking: History, Culture, and Recipes,” notes:

“For the Scots-Irish, whiskey-making was linked to freedom. They came to Appalachia in search of freedom, and they brought not only their whiskey-making knowledge but also their worms and stills.”

This pursuit of freedom was worth fighting for. On October 7, 1780, the Overmountain Men traversed over 330 miles from Sycamore Shoals, near present-day Johnson City, Tennessee, and decisively defeated British loyalists at the Battle of Kings Mountain in South Carolina.

To the British, this makeshift militia seemed “more savage than the Indians.”

Camp Hillbilly

Life in rural Appalachia continued much like it had in the 18th century, persisting into the 20th century. Many areas lagged behind the economic growth that flourished in other parts of the nation.

That is not to say there was no industry; coal mining and logging booms intermittently altered the landscape and character of the region. Nevertheless, the wealth generated by these resources rarely translated into widespread prosperity.

Communities remained scattered and isolated, divided by rugged hills, and the development of modern roads and infrastructure was sporadic.

By the 1960s, the coal industry was shedding jobs, and alternative economic opportunities were scant. Julius Duscha wrote in the Washington Post at the time that the lack of infrastructure had “left the mountain areas in the backwash of modern civilization.”

Descendants of the early pioneers were often labeled negatively as hillbillies—backward, uneducated, violent, and inbred.

While there may be some truths behind these stereotypes, they fail to accurately represent an entire region. Misconceptions can lead to surprising outcomes. Over time, the narrative of being “backward” has evolved into one of being “forward” and vice versa.

For instance, various coastal cities in America have incurred self-destructive behaviors over the past 30 years. Despite striving to be modern and progressive, they have become places rife with extreme wealth disparities, a declining middle class, high crime rates, and a volatile social climate. In contrast, Camp Hillbilly today is perceived as a more civilized, pleasant, and rational environment.

Just Another American Story

Today, much like other regions across America, the foundational culture of Southern Appalachia has diminished. Change is a constant, and cycles of history invariably repeat.

North Carolina boasts the highest percentage of Scots-Irish ancestry, with 2.9 percent of its population identifying as such, followed by South Carolina and Tennessee at 2.4 percent.

Of course, every individual has their unique American story to recount.

Your humble editor hails from San Diego, with roots that trace back to central Kansas, possibly even back to Presbyterian Scotland. His lovely wife was born in Mexico City and raised in Los Angeles, with ancestral ties to Pre-Columbian Aztec heritage.

Their children were born in Long Beach, then transitioned during middle and high school years to the East Tennessee hills of Southern Appalachia, specifically to Scruffy City, USA.

But these geographical notes are merely a backdrop; the essence of these stories resides within the places they originate from.

America, as envisioned by the founding fathers, represents an idea rather than a geographical location. Yet, sadly, the liberties once enjoyed by Americans have largely waned over the past century.

However, in some secluded pockets—those so-called backwaters—remnants of this freedom endure, reflected in a sense of attitude and historical cultural imprint, if not always in practical application.

Thanksgiving, as a uniquely American holiday, serves as a moment for gratitude and introspection, inspiring the sentiments expressed here.

“How many things there are that I do not want,” Socrates remarked, circa 425 B.C.

At Economic Prism, we are indeed thankful for the myriad blessings bestowed upon us. Yet, we find ourselves even more grateful for the challenges and losses that have shaped our path.

[Editor’s note: In our current climate, unconventional investing ideas are more important than ever. Discover how to safeguard your wealth and financial privacy by utilizing the Financial First Aid Kit.

Sincerely,

MN Gordon
for Economic Prism

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