There is more than ample confusion created by politically motivated uses of Winthrop's sermon aboard the Arbella before the landing of the Separatists at Plymouth.
Especially since the days of Ronald Reagan's quotation of the concept of "a city upon a hill," but on myriad occasions previously in American history, this phrase has been taken out of context and made a pretext for claiming a special place for America among the nations of the world, summoning admiration, emulation, and, in some instances, submission. At the extreme, it has been a proof-text for manifest destiny, an unfortunate offspring of Social Darwinism.
Given these misuses, it is really imperative to return to the original text.
The sermon was entitled, "A Modell of Christian Charity." Replete with early English spellings and therefore awkward to read, the sermon says, " ...the onely way to avoid this shipwracke and to provide for our prosperity is to followe the Counsell of Micah, to doe Justly, to love mercy, to walke humbly with our God, for this end, wee must be knitt together in this worke asa one man, wee must entertaine each other in brotherly Affeccion, wee must be willing to abridge our selves of our superfluities, for the supply of others necessities, wee must must uphold a familiar Commerce together in all meekness, gentlenes, patience and liberality, wee must delight in each other, make others Condicions our owne rejoyce together, mourne together, labour, and suffer together, allwayes haveing before our eyes our Commission and Community in the worke, our Community as members of the same body, soe shall wee keepe the unity of the spirit in the bond of peace...for wee must Consider that wee shall be as a Citty upon a Hill, the eies of all people are uppon us; so that if wee shall deale falsely with our god in this worke wee have undertaken and soe cause him to to withdrawe his present help from us, wee shall be made a story and a byword through the world, wee shall open the mouthes of enemies to speake evill of the wayes of god and all professours for God's sake..."
This is a far cry from Republican "exceptionalism" and its offspring, Neo-conservative appeals for American dominance, which distort the profoundly Biblical injunctions of Winthrop to his fellow Puritan dissenters.
This is not an argument for hegemony; it is a call to selfless service and to a bright witness among the nations of a the world to our commitment to Christian charity as the hallmark of Christian obedience. It is Christianity translated into a more perfect society, and that very much on display for others to judge.

Phillip Cato

Thanks for the Winthrop connection, Phillip. Perhaps I'm one of the few readers of the Cafe that thought Reagan was making a direct reference to Matthew 5:14 rather than thinking of it passed on from Winthrop.

The economist in me always finds it deeply ironic that the communitarianism of the Pilgrims (That can be seen in the appeals Winthrop makes ("we must be knit together, in this work, as one man. We must entertain each other in brotherly affection. We must be willing to abridge ourselves of our superfluities, for the supply of others’ necessities")) nearly resulted in their starvation. This nation has always to return to healthy tension the communitarian and individual impulses.

About my starvation remark:
http://www.fee.org/in_brief/default.asp?id=106

“For this community (so far as it was) was found to breed much confusion and discontent, and retard much employment that would have been to their benefit and comfort. For the young men that were most able and fit for labor and service did repine that they should spend their time and strength to work for other men’s wives and children, with out any recompense. The strong, or man of parts, had no more in division of victuals and clothes, than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labors, and victuals, clothes, etc., with the meaner and younger sort, thought it some indignity and disrespect unto them.

“And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it. Upon the point all being to have alike, and all to do alike, they thought themselves in the like condition, and one as good as another; and so, if it did not cut of those relations that God hath set among men, yet it did at least much diminish and take of the mutual respects that should be preserved among them. And would have been worse if they had been men of another condition."