Showing posts with label economic exploitation. Show all posts
Showing posts with label economic exploitation. Show all posts

Wednesday, July 30, 2008

William Graham Sumner on 19th Century Corporate Fraud and Government Subsidies to Business

The Progressive movement that developed in the 1890s into one of the most important political movements of the twentieth century was in large part a reaction to the development of big business and the trusts of the late nineteenth century. Theodore Roosevelt, a Republican as were the vast majority of Progressives, ultimately believed that nationalization or at least federal licensure of big business firms was necessary to ensure that trusts remained good and reasonable.

But did the very existence of trusts depend at least in part on government subsidies in the first place? This is what William Graham Sumner wrote in 1883 about corporate fraud and government subsidies to business:

"I have said something disparagingly in a previous chapter about the popular rage against combined capital, corporations, corners, selling futures, etc., etc. The popular rage is not without reason, but it is sadly misdirected and the real things which deserve attack are thriving all the time. The greatest social evil with which we have to contend is jobbery. Whatever there is in legislative charters, watering stocks, etc., etc., which is objectionable, comes under the head of jobbery. Jobbery is any scheme which aims to gain, not by the legitimate fruits of industry and enterprise, but by extorting from somebody a part of his product under guise of some pretended industrial undertaking. Of course, it is only a modification when the undertaking in question has some legitimate character, but the occasion is used to graft upon it devices for obtaining what has not been earned. Jobbery is the vice of plutocracy, and it is the especial form under which plutocracy corrupts a democratic and republican form of government. The United States is deeply afflicted with it, and the problem of civil liberty here is to conquer it. It affects everything which we really need to have done to such an extent that we have to do without public objects which we need through fear of jobbery. Our public buildings are jobs--not always, but often. They are not needed, or are costly beyond all necessity or even decent luxury. Internal improvements are jobs. They are not made because they are needed to meet needs which have been experienced. They are made to serve private ends, often incidentally the political interests of the persons who vote the appropriations. Pensions have become jobs...The California gold-miners have washed out gold, and have washed the dirt down into the rivers and on the farms below. They want the Federal Government to now clean out the rivers and restore the farms. The silver-miners found their product declining in value, and they got the Federal Government to go into the market and buy what the public did not want in order to sustain (as they hoped) the price of silver. The Federal Government is called upon to buy or hire unsalable ships, to build canals which will not pay, to furnish capital for all sorts of experiments, and to provide capital for enterprises of which private individuals will win profits. All this is called 'developing our resources' but it is, in truth, the great plan of all living on each other.

"The greatest job of all is a protective tariff. It includes the biggest log-rolling and the widest corruption of economic and political ideas...The farmers have long paid tribute to the manufacturers; now the manufacturing and other laborers are to pay tribute to the farmers. The system is made more comprehensive and complete, and we all are living on each other more and more...

"...Attention is all absorbed by the clamorous interests, the importunate petitioners, the plausible schemers, the pitiless bores. Now who is the victim? He is the Forgotten Man...."

Monday, January 14, 2008

Opiate of the Masses

Merv of PrairiePundit posts Mark Steyn's article about capitalism and change (thanks to Larwyn). He notes that whereas the presidential candidates say that they favor change:

"it's capitalism that's the real "agent of change. Politicians, on the whole, prefer stasis, at least on everything for which they already have responsibility. ts."

But the change thatReInflateoCrat politicians advocate is not make believe. Politicians do create change. Progressive-liberal or political change is reactionary and exploitative. The name "progressive-liberal" refers not to progress or liberalization for the public, rather progress and liberalization for its privileged beneficiaries: lawyers, big business, academics and hedge fund managers.

In aiming to "deconstruct" American values, progressive-liberals aim to supplant them with values that serve their ends. Progressive liberals aim not only to staunch general progress and technological advance, which threatens established economic interests, but to intensify income inequality; shore up inept businesses; protect inefficient health care; make the poor poorer; and make the rich richer. All of this is done in the name of making the economy more efficient; reducing income inequality; providing general health care; and helping the poor. Progressive-liberalism is a vicious philosophy.

Universities have played a critical role in reinforcing exploitative political change . In the 1970s Milovan Djilas argued that communism and left wing ideology served the interests of a new class of journalists and intellectuals.

In America, political use of intellectuals to advocate and support economic exploitation of the poor takes on a specific pattern. American academics argue for cultural change that reinforces their power. They attack religious institutions and traditional values, and argue for a pattern based on groupthink, the "liberal Borg", whereby the New York Times sets an agenda which progressive-liberal cult members mindlessly follow. The progressive-liberal groupthink mentality is a social control process that serves specific economic interests. The new class, academics and journalists, is paid for this pattern with academic jobs, funding and the like.

The effect of the academics' purposed cultural domination and hegemony is to distract the public from state violence and exploitation. The public is made poorer by inflationary policies of the Federal Reserve Bank, while the media advises them that inflation is low. The dollar is artificially propped up and some jobs leave the country, and the media tells the public that free trade is to blame. There is massive waste in government, and the public is told that taxes are too low.

All the while, academia distracts from its exploitative purposes by raising crank political issues: terrorism is justice; defending America is imperialism; crime is justice; taxation creates wealth; free trade makes us poorer, and so on.

The Republicans have been too often part of this process. Republicans, such as Theodore Roosevelt, supported progressive-liberalism. This element never left the Republican Party. In those days, the Democrats were free traders and the Republicans supported exploitative tariffs. Support for hard money was a minority voice in both parties. It was not until 1896 that the Republicans became the hard money party.

It is primarily because of capture of academia that the progressive-liberals have been triumphant in the last century. Now that their ideas have been discredited, it is even more crucial to them to retain control of academia. Without the reinforcement of academic propaganda, it will be difficult for the progressive-liberals to appear to be anything other than what they are: the ideologists of corruption, narrow special interest and economic decline.

Conservatives need to state their case. The Republican Party is not necessarily a conservative or moderate conservative party. It has been a corrupt or progressive-liberal party for much of its history. Conservatives must ponder the way forward.