“My kind of loyalty was loyalty to one’s country, not to its institutions or its officeholders. The country is the real thing, the substantial thing, the eternal thing; it is the thing to watch over, and care for, and be loyal to; institutions are extraneous, they are its mere clothing, and clothing can wear out, become ragged, and cease to be comfortable, cease to protect the body from winter, disease, and death.”

Mark Twain’s words seem especially patriotic in light of our current economic recession.

When I think about patriotism, my thoughts turn immediately to famous images: Marines raising the American Flag on Iwo Jima; Neil Armstrong and the crew of Apollo 11 planting the American Flag into the moon; or, more recently, the New York firemen raising the flag at the heart of the crumbled World Trade Towers. These images are patriotic not only because the American flag is being raised in light of difficult circumstances, but also because the pictures capture a sacrifice that was made by those in the picture.

Financial sacrifice was asked of the American people during WWII, when each American was limited to a half a pound of sugar a week and each family to three gallons of gas and modest portions of meat, fuel oil and coffee. Consumers were instructed to save tin cans, scrap iron, paper and tires. Millions of housewives even signed a Consumer’s Victory Pledge: “As a consumer, in the total defense of democracy, I will . . . buy carefully. I will take good care of the things I have. I will waste nothing.”

In contrast, in 2001 after the September 11 attack, our president and many of our country’s leaders expressed the need for our citizens to purchase. Americans were implored to not let the terrorists interrupt our daily lives. We were encouraged

to support our economy through normal consumption and investment. Americans were asked to purchase, rather than save, to fulfill our patriotic duty. The government also became involved in helping stimulate economic activity and increasing home ownership by reducing interest rates and lowering down payment hurdles. Unfortunately unchecked, the rate environment and lax banking standards led to the housing bubble, which is one of the major factors in the current recession.

Fast forward to the current crisis, “The Great Recession” as it’s now called. Our government is printing and spending money at one of the fastest rates in U.S. history and creating GDP from government spending to make up for the U.S. consumer. Instead of asking the people to spend or save, the government is taking matters into its own hands. While the long-term results have yet to be seen, the short-term implications are that we have avoided a catastrophic or systematic economic collapse. But without healthy or normal economic growth, the recovery will likely languish.

As American citizens, I believe we can do our patriotic duty by acting in our own self-interest. Sounds selfish at first, but stay with me.

Adam Smith states in the Wealth of Nations: “by pursuing his own interest, [the individual] frequently promotes that of the society more effectually than when he intends to promote it.”

If this sounds far-fetched, imagine how it sounded in 1776 when Adam Smith’s Wealth of Nations was first published. Smith continued: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.”

Consider for moment: Henry Ford, J.D. Rockefeller, Andrew Carnegie and, more

currently, Ray Kroc, Bill Gates, Steve Jobs, Walt Disney and Sam Walton. All of these men, while not without fault, are patriots. Each of these men acted in their own self-interest and, by doing so, created products that have enabled millions to live better lives. Imagine where American business would be without their contributions.

I think this principle is even more relevant in our current economic environment, where the government is offering incentives for certain actions (buying or refinancing a home or purchasing a new car, for example). Our economy needs consumers to continue purchasing, therefore the government offering unusual incentives to spur such purchases. Currently, buying is being rewarded.

Now, I’m not suggesting we all go on a spending spree, in the name of patriotism. Some of us should take advantage of the opportunities in the recession and others of us should be paying down debt or selling assets. For those selling, take comfort that you are not alone. A majority of our country should be selling or de-leveraging. But, your decision should be self-motivated.

If I’m loaded down with debt and about to lose my house, then I will need to sell some possessions, cut expenses and get myself back on solid financial footing — all in my own self-interest. If I buy that house (at a remarkable price and incredibly low interest rate), it would be in my own self-interest, as well.

In the spirit of patriotism, we should take time to assess our own financial situation and act accordingly. Hopefully, by acting in our own self-interest, we will create an environment of buying and selling that will help the economy recover, while restoring the principals that make our country great.

Investment advisor Russell Livesay earned his Bachelor’s and Master’s degrees in Accounting from Baylor University. He’s worked in the financial services industry for 10 years and currently serves as a Registered Financial Advisor and partner with Disciplined Investors, LLC. He can be reached at rl@dinvestors.com.