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Jul 11, 2020 - Antiquity, Democracy, Economics, Historical Accuracy, Lost Cultures, Prescient Warnings    Comments Off on The New Deal: An Old Racket

The New Deal: An Old Racket

About 400 years before Christ, Athens, was perhaps the first republic overtaken by economic depression with widespread unemployment and many flocking to the Agora seeking aid. First the farmers were granted handouts, then came the laborers and others wanting their share. The ancient racket continues unabated today.

The New Deal: An Old Racket

“It is clear from Plutarch’s account that Pericles, the political ruler of Athens, understood the cause of the trouble. Plutarch describes the character of the workers who thronged into Athens clamoring for relief. They were, he tells us, brass workers, wood workers, smiths, moulders, founders, stonecutters, goldsmiths, ivory workers, and painters. It was perfectly obvious that Athens was in a depression because of the collapse of the building industry and particularly the extensive shipbuilding industry at Piraeus, the port of Athens. In other words, the capital goods industry was in a slump.

Its effects spread to others – to farmers, who were the first to get grants in aid through the munificence of the great man, Pericles. This encouraged the idle workmen to demand attention and they were given a dole amounting to six cents a day.

Pericles tried to lessen the effects of the depression by settling the unemployed in distant colonies. He sent 500 to the Isle of Naxos, 250 to Andros, a thousand to Thrace, and others to various colonies of Attica. And Plutarch observes that he did this “to discharge the city of the idle,” who were, by reason of their idleness, “a busy and meddlesome crowd of people.”

All this brought down the scorn of the wealthy conservative, Thuycidides (not the historian), who estimated that some 20,000 citizens one way or another were on the government payroll – which was something of an exaggeration.

In the end, Pericles tried to deal with the depression by a huge program of public works . . . a diminutive empire caught in the grip of those merciless economic laws which torment the far mightier empires of today. Thus trapped in an economic crisis, he turned to the second remedy of a sick society – borrowing.  Pericles decide to “borrow” [public defense funds guarded in the sacred treasury] to set in motion a big building program.

Pericles, the arch politician, insisted that [the defense funds] were in the hands of Athens to be used as it saw fit. He prevailed, and these funds were used to erect that magnificent collection of buildings on the Acropolis . . . But, in the end, Pericles turned to the third and most destructive and evil of the elements of his Athens New Deal – war.

The war with Sparta and her allies lasted for many years and ended with the downfall and humiliation of Athens and provided the tragic climax of this earliest of New Deals. Depression, caused by collapse of the heavy industries; then government doles paid for with taxes; great building and military enterprises to create work paid for with borrowed funds – in this case misused money – and finally war. Thus ended the New Deal in Athens.”

(The New Deal: An Old Racket; Forgotten Lessons: Selected Essays of John T. Flynn, Gregory P. Pavlik, editor, Foundation for Economic Education, Inc., 1996, excerpt pp. 55-56)

The Wheel of Fortune’s Revolution

“In the last days of Pope Eugenius the Fourth, two of his servants, the learned Poggius and a friend ascended the Capitoline Hill; reposed themselves among the ruins of columns and temples; and viewed, from that commanding spot, the wide and various prospect of desolation.

The place and the object gave ample scope for moralizing on the vicissitudes of fortune, which spare neither man nor the proudest of his works, which buries empires and cities in a common grave; and it was agreed that in proportion to her former greatness the fall of Rome was the more awful and deplorable.

Her primeval state, such as she might appear in a remote age, when Evander entertained the stranger of Troy, has been delineated by the fancy of Virgil. This Tarpeian rock was then a savage and solitary thicket: in the time of the poet, it was crowned with the golden roofs of a temple: the temple is overthrown, the gold has been pillaged, the wheel of fortune has accomplished her revolution, and the sacred ground is again disfigured with thorns and brambles.

The hill of the Capitol, on which we sit, was formerly the head of the Roman empire, the citadel of the earth, the terror of kings; illustrated by the footsteps of so many triumphs, enriched with the spoils and tributes of so many nations. This spectacle of the world, how it is fallen! How changed! How defaced!

The path of victory is obliterated by vines, and the benches of the senators are concealed by a dunghill. Cast your eyes on the Palatine hill, and seek, among the shapeless and enormous fragments, the marble theater, the obelisks, the colossal statues, the porticoes of Nero’s palace: survey the other hills of the city; the vacant space is interrupted only by ruins and gardens.

The forum of the Roman people, where they assembled to enact their laws and elect their magistrates, is now inclosed for the cultivation of pot-herbs or thrown open for the reception of swine and buffaloes. The public and private edifices, that were founded for eternity, lie prostrate, naked and broken, like the limbs of a mighty giant; and the ruin is more visible, from the stupendous relics that have survived the injuries of time and fortune.”

(The Decline and Fall of the Roman Empire, Volume III, Edward Gibbon, Modern Library, 1995, excerpt pp. 2426-2427)

The Essence of Piety

Richard Weaver wrote of the modern position of egotism, which seems to permeate all we see, read and hear today.  This develops, he reasoned, “when man has reached a point at which he will no longer admit the right of existence of things not of his own contriving.”  He presents the paradox of man’s continual warring upon nature as “not a sign of superiority to her; it is proof of preoccupation with nature, of a sort of imprisonment by her.”

The Essence of Piety

“[Man’s] immersion in the task of reconstructing nature is an adolescent infatuation. The youth is an intellectual merely, a believer in ideas, who thinks that ideas can overcome the world. The mature man passes beyond intellectuality to wisdom; he believes in ideas too, but life has taught him to be content to see them embodied, which is to see them under a sort of limitation. In other words, he has found that substance is part of life, a part which is ineluctable.

The humbler view of man’s powers is the essence of piety; and it is, in the long run, more rewarding, for nature seems best dealt with when we respect her without allowing ourselves to want too fiercely to possess her.

The second form of piety accepts the substance of other beings. It is a matter of everyday observation that people of cultivation and intellectual perceptiveness are quickest to admit a law of rightness in ways of living differently from their own; they have mastered the principle that being has a right qua being.

Knowledge disciplines egotism so that one credits the reality of other selves. The virtue of the splendid tradition of chivalry was that it took formal recognition of the right to existence not only of inferiors but also of enemies.

The modern formula of unconditional surrender – used first against nature and then against peoples – impiously puts man in the place of God by usurping unlimited rights to dispose of the rights of others. Chivalry was a most practical expression of the basic brotherhood of man. But to have enough imagination to see into other lives and enough piety to realize that their existence is a part of beneficent creation is the very foundation of human community.

There appear to be two types to whom this kind of charity are unthinkable: the barbarian, who would destroy what is different because it is different, and the neurotic, who always reaches out for control of others, probably because his own integration has been lost.”

(Ideas Have Consequences, Richard M. Weaver, University of Chicago Press, 1948, excerpts pg. 173-175)  

Radical Experiment in the District

On January 4, 1867, President Andrew Johnson was preparing his veto of the District [of Columbia] Suffrage Bill, telling his cabinet of issues with the Bill. He pointed out that “New York Negroes were obliged to comply with property requirements not necessary for white voters”, while other Northern States like Pennsylvania and Indiana excluded them from voting altogether.”

Johnson added that “the representatives of States where suffrage is either denied the colored man or grant [voting rights on qualifications being met] . . . should compel the people of the District of Columbia to try an experiment which their own constituents have thus far shown an unwillingness to test for themselves . . .” It was clear to Johnson that the motivation for Negro suffrage was the voting potential they held, and the potential for Republican Party political hegemony in the future. This led to virtually unbroken Republican national rule until Woodrow Wilson.

It is noteworthy that when the Emancipation Bill of April 1862 provided freedom for colored people in the District, which also compensated their owners, Lincoln insisted that the measure be coupled with a $100,000 appropriation to settle the freedmen in Haiti and Liberia.

Radical Experiment in the District

“The question of voting by Negroes had become by this time a burning national issue and one on which the Republican Party was by no means unanimous. Even in the North only six States permitted Negro suffrage without restrictions. Negroes were not permitted to vote in Pennsylvania, Ohio, Indiana and Illinois, and . . . New York still maintained property qualifications for Negro voters.

The Radical wing of the Party, led by [Charles] Sumner and Thaddeus Stevens, was, however, adamant on this issue. It was essential in their opinion that the colored man should be permitted to vote . . . [and] the control of the Southern States by the Republican Party could be maintained by the Negro vote, since it was quite inconceivable that the vast majority of Negroes would vote for any other Party than the Republicans who had freed them.

Realizing the difficulties of achieving Negro suffrage in the States, the leaders of the Radical Wing of the Republican Party began to turn their attention to the District of Columbia over which Congress had jurisdiction.

If Negro suffrage could be achieved in the District, with its large colored population, that would set the standard which some of the Southern States might be eventually be persuaded or compelled to follow.

Thus the municipal politics of Washington and Georgetown were to become a vital issue in the struggle for power between the Radical Republicans in Congress and Andrew Johnson, the Conservative Democrat in the White House.”

(The Uncivil War: Washington During the Reconstruction, 1865-1878, James H. Whyte, Twayne Publishers, 1958, excerpts pg. 37)

Saddled with Another Absolutist Regime

Alexander Hamilton was no friend of the Articles of Confederation and the decentralized republic it represented, but he did know the limits of newly-created federal power within the new constitution. His view was that States retained any authority not specifically delegated, and that State troops, as in 1861-1865, would constitutionally resist any invasion to preserve their independence and sovereignty.

James Madison wrote of this as well, stating that more than one State might band together, as in the later Confederate States of America, to resist any and all encroachments on State sovereignty by the federal agent created by the States.

Alexis de Toqueville, the French traveler in the America of 1831-32, saw firsthand the powers of “this strange new democratic monster” that would within thirty years gain control of the federal government and consolidate all, by force, into one common mass.

Saddled with Another Absolutist Regime

“In Toqueville’s opinion, the many levels of responsibility acted as buffers against the tyranny of the majority that ordinarily characterized democracy. Then United States possessed a centralized government but not a centralized administration.

To what extent American self-government was an outgrowth of the federal constitution, or merely a by-product of their habits and experiences, remains to be seen. This much, however, is clear: no subject so agitated the founding fathers as the possible loss of local responsibility under a federal government. The new constitution had to be designed in a way that maximized State autonomy.

As Hamilton put it in Federalist 62, “The equal vote allowed to each State [i.e. in the Senate] is at once a constitutional recognition of the portion of sovereignty remaining in the individual States, and an instrument for preserving that residual sovereignty.”

Although Hamilton favored a centralized economic authority, he argued that the federal government could not legitimately use the taxing power as an excuse to interfere in the internal government of the States. In Federalist 28, he argued that State militias would be called out to resist invasions of sovereignty.

[James] Madison concurred, and in Federalist 46 suggested that the States would band together to prevent such encroachments. Even the arch-federalist John Marshall declared (in McCulloch v. Maryland) that “no political dreamer was ever wild enough to think of breaking down the lines which separate the States, and of compounding the American people into one common mass.”

Interference in the life of local communities had been one of the complaints against the royal government. The anti-Federalists were afraid that, by adopting the Federal Constitution, they were saddling themselves with another absolutist regime. Mass democracy, as Toqueville realized, was dangerous.”

(The Politics of Human Nature, Thomas Fleming, Transaction Publishers, 1988, excerpts pg. 200)

“Wolves Snapping at the Throat of Democracy”

After a long career as the Commonwealth’s Attorney of Lynchburg, Robert “Cap’n Bob” Yancey’s wife suggested that thirty-four years in that position was long enough and he should retire. But Yancey had been the State’s attorney “for so long that he considered the office his own prerogative.”

In his 1925 re-election bid the regeneration of the Ku Klux Klan became an important issue: that regeneration since 1915 was the result of New Yorker Theodore Roosevelt’s “100% Americanism,” increased foreign immigration since the 1880s, and Woodrow Wilson’s war and its intense anti-German propaganda.

The original late -1860s Ku Klux Klan was a defensive reaction to the Republican party’s Union League intimidation and voter-suppression activities in the immediate postwar. It had no official flag and disbanded in 1869 after Union League activities diminished. Later incarnations of the Klan bore little if any resemblance to the original.

“Wolves Snapping at the Throat of Democracy”

“Nobody thought Father could be elected in 1925 because, in that year, the candidate who opposed him had the support of the Ku Klux Klan. And Father scorned the Ku Klux Klan with the most outspoken contempt.

“Anti-Jew, anti-Catholic, anti Negro!” said my father scathingly. “Why don’t they reduce it to a summary and conclusion and call it anti-Christ!” My father could not fight the Ku Klux Klan hard enough to suit himself. It was an insult to the South that the name Ku Klux Klan had been revived.

Historically, it had been necessary. The only purpose of its existence had been the protection of a defenseless people during a period of national madness. It had been disbanded by its own members as soon as the necessity for it was at an end. It was an insult to the memory of those first, desperate Klansmen that the name should now be made to stand for boycotting the rights of our best American citizens.

Whenever my mother would hear of the things that Father was broadcasting against the Ku Klux Klan, she would shake her head. “If you father really wants to win this election,” she would say, “he had better stop his bitter attacks upon the Ku Klux Klan. The temper of the working people has gradually been changing since the World War. The working classes are tired of paternalism in politics: the people of this new generation want things in their own hands. A good many of them take the Klan seriously. Your father shouldn’t antagonize them in this way.”

My father had a very devoted friend named Mr. Thomas Welch . . . [who was] disturbed about Father’s lack of restraint in his criticism of the Ku Klux Klan.

“Cap’n Bob,” he said, with genuine concern written all over his broad honest face, “Cap’n Bob, sir, I know just exactly how you feel – but you can’t keep this up and be elected. “Taint like it was during Prohibition. The people is different now. The gossip is that a man can’t git nowhere in politics without the Ku Klux backs him. I don’t ask you not to dislike them. I just ask you not to dislike ‘em so loud. If you keep a little quieter I think we can git you elected.”

“Ku Klux!” snorted my father unsubmissively. “Ku Klux! Wolves in sheet clothing! Wolves snapping at the throat of democracy,” said my father in a voice that made my backbone tingle . . . “Well, I won’t keep quiet. The damned thing is too wrong in principle. I won’t be hushed up – elected or not elected: I’ll just be damned if I will.”

And father did continue to give the Ku Klux a fit. And much to everybody’s surprise, he was elected in 1925.”

(The Vanishing Virginian, Rebecca Yancey Williams, E.P. Dutton & Company, 1940, excerpts pp. 265-269)

America’s Slide Toward Totalism

Robert A. Taft, son of William Howard Taft, was the last prominent Republican who might be considered a classical liberal and conservative Republican. Another would not appear until Barry Goldwater in the mid-1960s, and no more to this day. For the 1952 presidential election, he was cast aside by the Republican Party to make way for Dwight Eisenhower, a career military man with no political ideals or experience.

Though a constant critic of Roosevelt’s assumption of powers not granted to the executive, it is difficult to understand how Taft could state that he was an admirer of Abraham Lincoln, who began in earnest the erosion of constitutional principles and whom FDR emulated.

America’s Slide Toward Totalism

“By the time Bob Taft was elected to Congress, the New Dealers’ admiration for the Soviet experiment had diminished markedly, yet there remained the possibility that the United States might slide, almost unwittingly, toward totalist politics.

The maintenance of ordered freedom being the root of Taft’s politics, he never ceased to warn the American public against the erosion of constitutional principles, and he never was deterred by ridicule.

“The trend of thought on forms of government throughout the entire world,” Taft insisted, “has been pushing all peoples consciously or unconsciously away from democracy to different forms of totalitarianism. In Europe, democratic ideals were crushed between the dynamic dogmas of Communism and Fascism.

In the United States, we often lose sight of the real nature of the principles on which freedom depends, in our desire to remake our world according to the popular method of the day – methods formulated for the most part by European socialists.”

The American people had perceived by 1938, he said, that this tendency was most perilous; but the coming of the war diverted public attention from such fundamental concerns. So in speech upon speech, during the Second World War, Taft prodded Americans into vigilance against the encroachment of collectivist ideas and measures at home. Some of the basic principles of American politics already had been damaged, he declared in 1941:

“We have seen during the past twelve years a steady increase in government regulation of business and of the individual, and we have seen, through courts which are hardly independent of the executive, a constant tendency to increase the powers of the federal government over the States, and the powers of the Executive over the individual.”

He saw his prediction[s] fulfilled:

“In our efforts to protect the freedom of this country against aggression from without, we are in a situation today where we must constantly be on guard against the suppression of freedom in the United States itself . . . Unfortunately the [Roosevelt] administration, more than any other in the history of the country, is utterly unscrupulous in its demand for more power . . .”

(The Political Principles of Robert Taft, Russell Kirk and James McClellan, Fleet Press Corporation, 1967, excerpts pp. 62-64)

“Who Shall Restrain the Will of the People?”

The American Founders foresaw the problem of abuse of power and the rise of a president who would cut the shackles of the Constitution, though they more feared sectionalism and an evil combination of the branches of government.

The abuse of power arose with a president who fomented war upon a State, which is treason under the Constitution, raised an army without the consent of Congress, and threatened to arrest and imprison all who defied him. With the formerly federal government afterward under absolute executive and congressional control, the schools educating young citizens on their fealty to national power.

James Louis Petrigu (1789-1863) was a South Carolina Unionist and served as that State’s attorney-general. His stated faith in education as the bulwark of a republic was unfortunately upset by government control of the schools.

“Who Shall Restrain the Will of the People?”

“As Petigru understood it, the United States Constitution confirmed what the Revolution had aimed to achieve. Reversing the Confederation’s dispersal of power was but a minor part of its accomplishment, for it had by its division of legitimate governmental power between the individual States and the federal union ensured the Revolution’s goals of restricting centralized public authority in the interests of individual liberty.

But individual freedom, as Petigru said in his 1844 Fourth of July oration, required positive government as well as restraints on legitimate power. This too the Constitution had accomplished with its system of checks and balances. Without both the powers allotted and the restraints imposed, “there would be no barrier between a dominant majority and the object they mean to effect.”

Thus, by creating a constitutional union that divided sovereignty between State and nation and checked the evil of concentrated power in any one branch of government, the American people had fulfilled the promise of their revolution.

But the problem of abuse of power was not obviated by the broadly democratic underpinning of the American experiment. Nowhere did Petigru more clearly address that dilemma than in the question he asked that Independence Day audience: “For who shall control where all are equal, or how shall the people restrain the will of the people?”

The best means to control the popular passions implied in his question was education. If a republic was to survive, he thought, its government must provide the schools necessary to cultivate in all its citizens the intellectual independence that was “the bright side of Democracy.”

Without access to knowledge, citizens would lack the ability to challenge their government, and individuals the means to protect their freedom . . . [and] withstand the force of majority opinion. And given Petigru’s opinion that “the Majority are wicked is a truth that passed long ago into a proverb,” republican government could not long survive unless it sponsored that learning, for “what hope is there for the human race when there is no minority?”

(James Louis Petigru: Southern Conservative, Southern Dissenter, William & Jane Pease, University of Georgia Press, 1995, excerpts pp. 149-150)

Opinions on State Rights

It is written that what the French took from American Revolution was their theory of revolution, not their theory of government. When French officers were leaving for home, they were cautioned by Samuel Cooper of Boston to “not let your hopes be inflamed by our triumph on this virgin soil. You will carry our sentiments with you, but if you try to plant them in a country that has been corrupt for centuries, you will encounter obstacles more formidable than ours. Our liberty has been won with blood; you will have to shed it in torrents before liberty can take root in the old world.”

Opinions on State Rights

“The true natural check on absolute democracy is the federal system, which limits the central government by the powers reserved [to the States], and the State governments by the powers they have ceded. It is the one immortal tribute of America to political science, for State rights are at the same time the consummation and the guard of democracy.

So much so an American officer wrote, a few months before [First Manassas]:

“The people in the South are evidently unanimous in the opinion that slavery in endangered by the current of events, and it is useless to attempt to alter that opinion. As our government is founded on the will of the people, when that will is fixed our government is powerless.”

Those are the words of Sherman, the man who, by his march through Georgia, cut the Confederacy in two. Lincoln himself wrote, at the same time:

“I declare that the maintenance inviolate of the rights of States, and the right of each State to order and control its own domestic institutions according to its own judgment exclusively, is essential to that balance of powers on which the perfection and endurance of our political fabric depend.”

Such was the force with which State rights held the minds of abolitionists on the eve of the war that bore them down.”

(Lectures on the French Revolution, John Emerich Edward Dalberg-Acton, Liberty Fund, 2000, excerpts pp. 31-32)

Revolutionary Jacobins: French and American

“In 1793, the Jacobins, surfing the wave of Parisian mob violence, intimidated their less resolute colleagues into eliminating both the principle of monarchy and the existence of its politically superfluous incarnation, Louis XVI. Not content with killing a living king, and pronouncing a death sentence in absentia on all princes of the blood who had escaped with their lives, the revolutionaries were determined to rewrite the past by abolishing the enduring symbols of the French nation. Walter Scott, in his Life of Napoleon Bonaparte observes:

“The name of king being pronounced detestable, all the remembrances of royalty were to be destroyed . . . the royal sepulchers . . . were not only defaced on the outside, but utterly broken down, the bodies exposed, the bones dispersed . . .”

Notre Dame’s “gallery of Judean kings” [was] destroyed (the mob supposedly mistook the 28 statues for portraits of French kings).

The revolutionaries wanted to make the past, even more than the future, a tabula rasa on which they can scrawl their puerile obscenities. Even the calendar had to be reinvented. The Jacobins . . . took only a few months before adopting a system that was as “rational” (i.e., inhuman) as it was stupid . . . All over Paris and throughout France, the churches’ precious art treasures were vandalized, and gold and silver communion vessels were stolen and used in mock ceremonies that travestied the Mass.

We must always remind ourselves that the entirely sordid activities of the French Republicans were the fulfillment of the Enlightenment project, whose objects were freedom of thought (that is, the freedom to be a servile follower of the Encyclopedists), social and political equality (the destruction of all authority), and a society based solely upon reason (the destruction of Christian civilization).

And what of Americans, so eager to escape the shackles of their history that they, too, have rewritten both calendar and curriculum?

America, where Martin Luther King, Jr. and his civil-rights “revolution” takes precedent in the calendar over Washington, Adams, Jefferson, and even Lincoln; where Christian symbols are removed from schools and public squares and “Happy Holidays” has replaced “Merry Christmas”. . . where some State legislatures have removed the fine old flag under which brave Americans from the South fought in what they and many non-Southern Americans regarded as the noble cause of constitutional liberty . . .”

What can be said of this America, if not that, over the course of 150 years, we have gradually achieved the revolution which Rousseau imagined and for which Jacobins and Marxists fought and slaughtered?

The way back – if there is to be a way back – will not begin with a counter-revolution that will commemorate its own set of uprisings, heroes, and martyrs but with a quiet determination to restore the Christian calendar in our own lives; to display Christian symbols in our homes, shops and offices; and to teach our children and friends the stories and traditions that the Jacobins have done their best to destroy.”

(Living the Jacobin Dream, Thomas Fleming, Chronicles, March 2003, excerpts pp. 10-11 – www.chroniclesmagazine.org)

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