As the statue of Saddam Hussein came crashing down, President Bush told the Iraqi people, “You deserve better than tyranny and corruption and torture chambers. You deserve to live as free people. And I assure every citizen of Iraq: your nation will soon be free.” Despite the promise of freedom, mobs of looters and religious extremists challenge public order in Iraqi cities and petty despots wait in the wings. Iraq faces the same difficulties that confronted Americans like Madison, Hamilton, and Washington two and a quarter centuries ago: forming a government strong enough to protect the lives, liberty, and property...