Showing posts sorted by date for query mugwumps. Sort by relevance Show all posts
Showing posts sorted by date for query mugwumps. Sort by relevance Show all posts

Thursday, March 26, 2015

Thoughts on the Mugwumps

I just sent the following email to a colleague who was talking about the Mugwumps. The Mugwumps were a group of elite Republicans who switched sides and voted for Grover Cleveland in 1884.  The name derives from a bastardization of a Native American word for chief, but the above cartoon suggests a different interpretation.

I don't consider them moderates. They switched party because of strong political belief, specifically in rational government. They were laissez faire Republicans, and many had been abolitionists. There was nothing moderate about them even though they switched sides.


The confusion many people have about today's two extremist parties leads to the mistaken impression that if you don't favor either party you are in between.  The crank TV newscaster Bill O'Reilly makes a similar claim.  He is moderate because he splits the opinions of the two big parties.  


The two parties are close, and they are both extreme in their support for big government. By historical standards, today's America occupies the extreme Whig end of the spectrum, and that's true of both parties. Only an extremist can call two parties that both advocated lending as much as $29 trillion to Wall Street to be moderate.  Today's America is an extremist, authoritarian state. There is no Aristotelian mean here.

This is the email to my colleague:

The first book I read on the Mugwumps was Nancy Cohen’s Reconstruction of American Liberalism 1865-1914, which is an intellectual history that gives a good overview. You can piece together a libertarian perspective from it.  See http://www.amazon.com/Reconstruction-American-Liberalism-1865-1914/dp/0807853542/ref=sr_1_1?ie=UTF8&qid=1427393591&sr=8-1&keywords=nancy+cohen+progressivism .

The third book I recommend is a little different. It is Burton Bledstein’s Culture of Professionalism: The Middle Class and the Development of Higher Education in America. http://www.amazon.com/culture-professionalism-development-education-America/dp/0393055744/ref=sr_1_3?ie=UTF8&qid=1427393672&sr=8-3&keywords=bledstein . It traces the creation of professionalism in a host of fields.  Professionalism was intimately connected to the Mugwumps’ interest in civil service reform. The impetus for rationalization led directly to Progressivism. Once the commitment to organized professions took hold, it was a small step to building legal standards and regulations for the professions.  That, in turn, was linked to the development of universities. Hence, big government, the organized professions, and universities have always been linked.


The institution of the modern university in 1876 via the founding of Johns Hopkins came near the heart of the Mugwump era, which was in 1884, during the election of Grover Cleveland.  I don’t think historians have a clear understanding of why the Mugwumps opposed James Blaine and turned against their own Republican Party to support Cleveland.  [My colleague] may be right that there was a laissez faire impetus, but showing that would require a new, or at least clearer,  historical treatment of it.  Among the interesting Mugwump figures (see Cohen) were EL Godkin, David Ames Wells, and William Graham Sumner.


I also don’t believe that historians have a clear understanding of the role of the greenbacks in stimulating the expansion of industry in the Civil War era and what the economic effects were on bondholders, so the post-1873 gold deflation, which harmed other asset holders (likely Western and Southern farmers as well as stockholders) and generated Populism and Bryan (and which Friedman calls “the crime of 1873” in an article that was published in the Journal of Economic History), may have been a reaction to the post-Civil War inflation. Godkin writes about his anger at the effects of inflation on redistributing wealth to Jay Gould and others. 


One question that no one has asked is whether there was a relationship between Wall Street and Bryan or the Populists.  Mark Hanna, a high school friend of John D. Rockefeller,  was, of course, McKinley’s close adviser. On the other hand, it may be that the election of McKinley (as propped by Wall Street) was not really opposition to silver, but rather it may have been preemptive and done in the hope for the central bank that was recommended fourteen years later, in 1910, by the same Rockefeller (with Morgan and Kuhn Loeb) interests.  It is unlikely that there is much public information on something like this.


In any case the 1896 election had an opposite dynamic from what today’s pro-inflation banking community offers, and I suspect that something is not being said about who the Populists were and, more importantly, who their opponents were.  Was a central bank being quietly considered by ‘96? 


The same is true of the conflict within the Democratic Party between Bryan and the Bourbon Democrats,* of whom Cleveland was the chief representative. Wilson had been a Bourbon Democrat, and I think that he voted for a third party, the Gold Democrats, in 1896.  His connection to Morgan is mentioned in my paper on colleges, and I suspect that his signing of the Federal Reserve Act came from his relationship with Morgan.  An interesting point in the biography of Frank Vanderlip is that Wilson dropped him as a friend, and Wilson would have nothing to do with Vanderlip once Wilson was elected. Wilson did not want to seem to be linked to bankers.  I wonder who thought up that plan of action.  Wilson went from voting for gold in 1896 to refusing to have to do with bankers so he could propose the Federal Reserve Bank.  As a result of secrecy, it may be hard to get data. But was the opposition of the banking community to silver a strategic one?
  

*Wikipedia: Bourbon Democrat was a term used in the United States from 1876 to 1904 to refer to a conservative or classical liberal member of the Democratic Party, especially one who supported Charles O'Conor in 1872, Samuel J. Tilden in 1876, President Grover Cleveland in 1884–1888/1892–1896 and Alton B. Parker in 1904. After 1904, the Bourbons faded away. Woodrow Wilson, who had been a Bourbon, made a deal in 1912 with the leading opponent of the Bourbons, William Jennings Bryan; Bryan endorsed Wilson for the Democratic nomination, and Wilson named Bryan Secretary of State. The term "Bourbon" was mostly used disparagingly, by critics complaining of old-fashioned viewpoints.

Monday, November 7, 2011

Miami Herald's Leonard Pitts Unschooled on Race and Conservatives

Leonard Pitts, Jr. writes a spin piece in today's Seattle Times (h/t Adam Schmidt on Facebook).  Pitts  argues that African Americans would be insane to support conservatives because conservatives have always been anti-Black. 

Pitts illustrates the historical ignorance that characterizes the American left and its pitiful media. Social conservatives in New England were the leaders of the abolitionist movement.  For example, John Brown's father was associated with Oberlin College, where Charles Finney, leader of the Second Great Awakening, was president. Oberlin, a Calvinist Presbyterian School, was the first college to admit African Americans in 1835.  Wikipedia writes of Charles Finney:

In addition to becoming a popular Christian evangelist, Finney was involved with the abolitionist movement and frequently denounced slavery from the pulpit. In 1835, he moved to Ohio where he became a professor and later president of Oberlin College from 1851 to 1866. Oberlin became active early in the movement to end slavery and was among the first American colleges to co-educate blacks and women with white men.[8]

Pitts is also wrong because, later in the 19th century, the Mugwumps, who tended to support laissez faire as well as reforms such as the Pendleton Act, tended not to be anti-Black. They were the post-bellum Republican elitists during the period of carpetbaggers and Reconstruction.  During Reconstruction, the Ku Klux Klan's first victims were African American Republicans.  George Wallace, the leader of 1960s racism, was a Democrat and a supporter of Franklin D. Roosevelt.

As Pitts points out, the worst racists were Democrats. Although Pitts calls them conservatives, the racist Democrats voted for Democrat Franklin D. Roosevelt just as the northerners did. Pitts's argument is circular:  racism is conservative, therefore, conservatives are racists.  But the advocates of limited government were not necessarily more racist than the supporters of big government and big business--the GOP.  On the one hand, it is true that Andrew Jackson, the founder of today's Democratic Party, was a racist and that his Supreme Court Chief Justice Taney was responsible for the Dred Scott decision.  But the New York labor unions were probably more anti-African American than Jackson was.  That The Miami Herald's syndicated columnist Pitts is apparently unfamiliar with the Draft Riots and organized labor's sympathy for the South during the Civil War is an embarrassment to the pathetic legacy of American journalism. 

Pitts's argument is tautological:  racists are conservative, therefore conservatives never stood up for blacks.  In fact, the first “conservatives” might be said to have been the pro-laissez faire Mugwumps, who favored the gold standard, opposed tariffs, and favored limited government.   The founder of The Nation, EL Godkin, was not overly supportive of African Americans, but he was no racist.  The Republican Party in the late 19th century was a big government, pro business party, and mostly laissez faire (at least in words).  

At the same time, the Progressives, especially Woodrow Wilson, were frequently overt racists.  Eugenics was a significant facet of Progressivism, and as C. Vann Woodward points out in The Strange Career of Jim Crow, Jim Crow exploded during the Progressive era, not the Gilded Age, which was characterized by policies and leadership that conservatives support today. 

One source of Pitts's confusion (besides being due to an ideologically extremist university and educational system that indoctrinates in left wing groupthink rather than educates, leaving people like Pitts ignorant) is that popular lingo confuses laissez faire with conservatism and social democracy or socialism with liberalism. Thus, the Wikipedia article calls Charles Finney "progressive," but he would be considered a social conservative today. 

On the one hand, the first big government socialist president in American politics was Theodore Roosevelt, and he was not a racist. On the other hand, the first president who was a conservative (defined in opposition to the first "liberal," Roosevelt) was William Howard Taft, and he wasn’t a racist either.  Roosevelt backed Taft before he learned that Taft would not support regulatory solutions to the trust issue—that he would instead support a litigated settlement in the Standard Oil case.  The Taft Supreme Court (Taft was the only president to later become Chief Justice) was  conservative.  Roosevelt ran against Taft in 1912, electing racist-cum-Progressive Woodrow Wilson in Taft’s place.  Wilson began the American socialist project by pushing through the income tax and the Federal Reserve Bank the following year, 1913.  He also implemented Jim Crow in Washington, DC.

Princeton, of which Wilson had been president, has been well known as the most anti-Semitic of the Ivy League universities.   Here is what Wikipedia says about Taft:

Taft met with and publicly endorsed Booker T. Washington's program for uplifting the black race, advising them to stay out of politics at the time and emphasize education and entrepreneurship. A supporter of free immigration, Taft vetoed a law passed by Congress and supported by labor unions that would have restricted unskilled laborers by imposing a literacy test.[63]

Moreover, the Southern Democrats, the racists,  repeatedly supported left-wing Democrats. They voted for Woodrow Wilson, Franklin D. Roosevelt, and Adlai Stevenson.  It was not until the 1960s that racism and the Republican Party crossed paths.  By then, both parties had become advocates of Progressivism and supporters of the Roosevelt/Rockefeller agenda. In 1944, the entire Jim Crow South voted for the paragon of American socialism, Franklin D. Roosevelt.  Alabama, for example, the state remembered for Rosa Parks and the Montgomery boycott of the 1950s, voted 81% for FDR.  In 1952 and 1956, the most social democratic candidate between FDR and BHO was Adlai Stevenson.  In 1956, the ONLY states in which Stevenson won were the Jim Crow states:   Missouri, Arkansas, Mississippi, Alabama, Georgia, South Carolina, and North Carolina.

So Mr. Pitts, you're a doody head.

Friday, September 10, 2010

Leo Strauss, American Ethical Decline and Aristotle's Highest Hope

I was just reading Leo Strauss's magnificent Natural Right and History.  Strauss is a first rate thinker, on a par with the great libertarians, yet I disagree with a large chunk of his perspective.  I must say that the early chapter on Max Weber is of tremendous importance to the work I have been doing on business schools' teaching of justice as the core management competency and the Aristotelian and Nietzschean traditions in mangement theory.  Strauss's arguments in favor of natural right and law are profound and explicate a core insight at which I arrived in my undergraduate years. That is, that the justification of ethics is inherent in the socio-biology of humanity.  Natural right and natural law are socio-biological constructs.  Conventionalism, the notion that ethics is arbitrary, can be disproved empirically.  Strauss makes invaluable arguments along those lines.  As well, Strauss outlines the very concept I have been thinking about and am working toward: the crucial importance of decentralization to the development of the virtuous and liberal state.  I am glad I am reading Strauss now after I have outlined the project in my mind.  Although the idea is my own independent of Strauss, Strauss must be given major credit for conceptualizing the project in 1953.

I do not agree with Strauss in a number of ways. Most important among these is his emphasis on human differentials with respect to the prospects of attaining virtue.  Strauss's emphasis on this aspect of Plato and Aristotle leads to elitism which I do not share.  This elitism is very much in the Progressive and Marxist traditions.  I do not agree that there are people who have a special claim to virtue.  Anyone who thinks so can try to fix their own plumbing or their own cars.  Just because someone can go to Harvard does not make them more valuable than a plumber.  When my pipes go, I care about a plumber, not a philosopher or a politician. Sorry, Ayn Rand. What I want is a virtuous plumber.  And a virtuous plumber will not go home, drink a 12-pack of beer, and wash his hands of what has happened to the nation.  Rather, America has declined because of the elitism inherent in Progressivism.

Coincidentally Jim Crum sent me Andrew Malcolm's LA Times article that suggests that America is indeed in serious moral decline due to the Progressive and socialist policies that the Democratic and Republican Parties advocate.  The article finds that 41 Obama appointees have not paid their taxes.  As well, federal employees in general owe a billion dollars in unpaid taxes, and 638 workers on capitol hill owe $9.3 million in unpaid taxes. As Treasury Secretary, who is in charge of collecting taxes, Obama appointee Timothy Geithner owes $43,000 in unpaid taxes.  As well, within the department of homeland security  "4,856 people owe $37,012,174."

Aristotle argued that the role of the city state is to educate moral citizens.  Clearly American society has failed in this elementary task. The problem is not just with dysfunctional schools which systematically fail to teach the three 'rs along with basic morals; nor with the decaying family, harmed by the Wall Street economy that has destroyed job opportunities in general but especially for men and has fractured the family by forcing women to return to work at an early age.   It is also due to the miasma of bad ethics that imbues the casino economy; the get-rich-quick psychology of Federal Reserve Bank-financed Wall Street speculation and the carry trade; the mentality that one gets rich by sucking at the tit of the state rather than working hard.  All of this is nothing new.  For decades the Progressive state structure has systematically rewarded fast-talking corporate types with smooth interpersonal but limited productive skills and penalized those who take legitimate risks. The Federal Reserve Bank churns out easy credit made available to speculators in stocks and real estate but the government taxes work (through the income tax) and thereby inhibits small scale capital accumulation, creating a bank-dominated economy that is inherently corrupt.  All of this tends to manipulation of paper and cheating, at which Republicans like Rick Lazio as well as Democrats like Timothy Geithner excel.

A nation which allows cheats like Lazio and Geithner to attain high office has failed Aristotle's highest hope for the city state.  The nation is failing morally and the fault is Progressivism. Moral failure will lead to collapse. The Founding Fathers knew Aristotle and they were aware of this point.  So were the Mugwumps of the Gilded Age.  Because of its fascist economy, the nation has foresaken its moral foundations.

Sunday, February 28, 2010

How Limousine Liberals Support the Rich

I just sent this letter to the editor of my local newspaper, the Olive Press. I have been writing to them each month:

A number of Olive residents have questioned my claim that limousine liberals favor the wealthy, i.e., themselves. The financial elite has often been called the military industrial complex (MIC) but is more accurately a nexus of real estate, Wall Street and commercial banking with the MIC and so I will refer to it as the banking elite.

Gabriel Kolko in his Triumph of Conservatism shows that the establishment of the Federal Reserve Bank was part of a larger movement, Progressivism, that reflected the banking elite's interests. This followed three decades of cumulative politicization of the economy by the Mugwumps and Populists of the 1880s and 1890s. One fruit of these movements, the 1890 Sherman Anti-trust Act, supported increasing concentration of industry. Martin J. Sklar provides detailed documentation in his Corporate Reconstruction of American Capitalism 1890-1916. The Federal Reserve Act in 1913 further enhanced the banking elite's domination, which was accelerated in 1932 when Franklin D. Roosevelt abolished the gold standard and confiscated all privately held gold.

The way that the Federal Reserve Bank helps the banking elite at the expense of the average American is that it increases the number of dollars in circulation, distributing them to the banking system. The banking system takes the reserves that the Fed gives it and expands the reserves further through fractional reserve banking. Briefly, when the fractional reserve banking system receives a Federal Reserve deposit (created out of thin air) of one dollar, it can expand the number of dollars by ten. Thus, the Federal Reserve Bank, which the banking system legally owns, can create deposits (reserves) out of thin air and then the banks can lend up to ten times the reserves also out of thin air. In other words, the Fed and the banking system cheapen the dollars that you own.

Economists, who are on the banking elite's payroll through consultancies, endowed chairs, and appointments to the Federal Reserve Bank staff, serve as an important propaganda source. They claim that the reserves are distributed evenly throughout the economy. Of course, this claim is absurd. Limousine liberals like William Greider (author of Secrets of the Temple) claim: (a) the Federal Reserve Bank helps the middle class but (b) the Federal Reserve Bank gives hundreds of billions of dollars to Bunker Hunt, Wall Street speculators and recipients of foreign investment. Limousine liberals never question how it might be possible to give hundreds of billions to Wall Street banks and at the same time help the average American.

Thus, at the foundation of big government is big subsidy to the banking elite. But that's the least of big government's subsidy to limousine liberals. A bigger way is the Fed's bloating of the stock market. The way the Fed's monetary expansion bloats the stock market is by reducing interest rates. Low interest rates mean higher stock prices. The present value of future dividend payments are higher at a lower interest rate. Since stocks are present value indicators of a firm's future profits, lower interest rates reduce the discount factor and raise stock prices.

The income inequality about which limousine liberals shed crocodile tears is due to the system which they put in place: by keeping interest rates low, stock prices are buoyed and wealthy limousine liberals like George Soros and Warren Buffett become richer. The way that interest rates are kept low is by the Fed's and the banking system's increasing the amount of money. The increasing amount of money leads to higher prices (inflation). Higher prices mean the average American becomes poorer. Thus, the inflation adjusted wages of workers are reduced while stock prices are increased and the wealthy become wealthier. No source has advocated this system more aggressively or for longer than the New York Times.

The period of the Fed's greatest power began in 1971 and continues today. During this 39 year history, American workers' wages began to stagnate in the early to mid 1970s. They continue to stagnate today. American workers today earn per hour what they earned in 1971. Prior to 1971, real hourly wages increased 2% per year. The post 1971 period saw massive increases in stock prices and increasing income inequality. All of this is due to the policies of limousine liberals, beginning with Franklin D. Roosevelt, who abolished the gold standard, and Richard M. Nixon, who declared "We are all Keynesians now."

Sincerely,


Mitchell Langbert

Friday, April 10, 2009

The Unity Philosophy Failed Because Laissez Faire Succeeded

In the US, the notion that there needs to be a strong central state began with the Federalist Papers. The Federalists left a considerable degree of decentralized authority with the states, but from the beginning there was ambiguity as to how decentralized decision making ought to be. Centalization was re enforced with the Civil War, which further strengthened the federal government and opened the door to Progressivism. The Progressives were not necessarily centralizers. However, the key federal legislation that came from Progressivism, the Hepburn Act, the Federal Trade Commission, the federal income tax and the Federal Reserve Bank as well as imperialist ventures like the Spanish American War were all centralizing. On the other hand, much of the Progressive legislation, such as Workers' Compensation, housing codes and wage and hours laws respecting women and children proceeded at the state level. The New Deal served as a centralizing force on Progressivism, and may be viewed as the culmination of 160 years of Hamiltonian federalism.

The centralizing trend came about because of conflicts about morals and economic opportunism. As Charles Beard and other Progressives argued, much of the motive for the federal Constitution was economic gain to domestic manufacturers, which Hamilton wholeheartedly supported as did Madison and Jefferson to a lesser degree. But abolitionism and then concern about trusts led to moralizing about the economy. Until the post-bellum era Protestantism had been associated with local community as in John Winthrop's City on a Hill. The states were separate religious communities and did not aim to impose their religious-based moralities on other states. But slavery posed a national moral problem, as did the central bank. Thus Calvinist morality took on a national scope. The notion that the nation was a moral community took hold. Among the advocates of this notion were the late nineteenth century Mugwumps, who were among the first media-based national moral movements. The Mugwumps were mostly Protestant, although there were a few Catholics and Jews among their ranks as well (there were few Jews in America in the 1870s but there was a handful of notable Jewish Mugwumps, such as Simon Sterne). The Mugwumps were not necessarily religious, but they had been religiously trained and applied the morality of their education to the economic problems facing America, for instance, the corruption associated with the railroads, the Greenback inflation and most of all the need for a civil service to counteract the urban corruption of the political boss system. Although the Mugwumps were laissez faire in ideology they were very much the precursor to the Progressives in that they focused on national issues and saw national solutions in terms of the need to rationalize government.

The trend toward centralization thus came out of the Civil War and was re enforced by one outcome of Progressivism: the intensification of Jim Crow laws, especially in the South. As the results of Jim Crow became evident in the early twentieth century, the need to counteract it took hold in a reincarnation of the Civil War in terms of the Civil Rights movement. As well, the Roosevelt administration saw economic problems as resolvable at the federal level. Thus, Social Security, labor law, wage and hour laws, securities regulation, agricultural regulation and public works took hold in the public mind.

This was occurring precisely as it became evident to managers in America's large industrial firms that centralization does not work. This was noted by Alfred Chandler in his book "Strategy and Structure", especially with respect to Alfred Sloan. Sloan modeled General Motors after the federal government, downloading responsibility to the automotive and other manufacturing divisions just before Roosevelt saw fit to centralize decision making in Washington.

As it turned out, Sloan was right, although subsequent generations of General Motors executives dropped the ball. As General Motors re-centralized it failed to be able to compete with innovations of the much smaller Toyota Automotive in the 1950s. These innovations were known as lean manufacturing. As well, Toyota was able to adopt the ideas of Edward I. Deming.

As American industry found that decentralization was necessary to competent management, the federal government became more insistent on centralization. Part of this was due to intensification of the Civil Rights struggle in the 1960s, but part was due to the egos and greed of politicians and academics who oversaw federal policy. Thus, plans like Medicaid and Medicare which could have been experimentally adopted at the state levels, with the best results revealed, were thrown into existence in a slipshod manner at the federal level without the pragmatic advantage of state-based experimentation. Policies concerning health care, social security, pension regulation, health and safety regulation, auto safety, pollution and most of all monetary policy were adopted at the federal level, typically with poor to mediocre results.

The failure of the Great Society Programs; the mismanagement of social security; the crippling effects on inner city blacks of urban renewal and labor laws; the instability due to monetary policy under Richard M. Nixon and the early years of the Carter administration might have given the centralizers pause. But it did not.

Unwilling or unable to grasp the reasons why centralization does not work, they continue to push for dramatic, centralized solutions to America's problems. The result: the sub-prime crisis; the series of bubbles that occurred in the 1990s and 2000's; declining real hourly wages; a failing social security system (or a social security that fails to provide an adequate retirement benefit despite 14% annual contributions by workers and their employers); and declining career opportunities for young people.

Despite these and other failures, the "progressives" continue to agitate for the same failed, centralized approach. This should be called the "pathology of centralization".

Thursday, March 19, 2009

Americans Fed Up

Phil Orenstein of Democracy Project has blogged about Glenn Beck's new protest group. Phil writes:

>"When I stood up to speak, introducing myself as a Republican and promoting certain candidates for public office as potential standard bearers for disenfranchised American patriots like us, I could sense the overall disdain for politicians and political parties. I got the idea that they have no use for the Republican, Conservative or Libertarian parties or the corresponding labels that define their alleged principles. They see their elected officials and party leaders mostly as petty, self serving, unprincipled charlatans, except perhaps for Rep. Peter King. Nothing I said regarding translating their anger into action at the polls in November, made any sense to them."

The disenfranchisement of many Americans stems from the excessive size of the Amnerican federal republic. When the nation was founded it had 3 million people and the states had an average of 231,000 people each. In 1995 and 1996 231,000 foreign immigrants came to New York City alone. 231,000 is the population of Plano, Texas. Los Angeles and Chicago alone have populations of about 3 million.

The nation has become too large to govern. The problem is aggravated by the conflicting commitments to democracy and to the welfare state. Both are incompatible with ever-increasing size. Service delivery must respond to local needs so that nationalized programs like Social Security are too inflexible. Democracy requires that voters have some input into electoral processes. But the small effect of a single vote in a nation with 50 states and an average population of six million per state means that voters have no reason to believe that their voice counts. Size stifles voice. Thus, voting rates tend to be low and voting is dominated by people with something to gain from advocacy of state wealth transfers. American government therefore discourages creativity and progress by taxing production. The federal government has become a cancer on the promise of American life to provide increasing improvement in technology and standards of living. For the past 36 years, since 1971, real hourly wages have declined as government spending has mushroomed.

The problem is compounded by practical limits on the size of Congress. In a state with 231,000 people, each Senator could represent 115,000 people. In a state with six million people, each Senator reprsents three million. Each Senator today has the same representation ratio that the president had in 1790. The first House of Representatives had 59-64 members. That is one Congressman for every 48,000 citizens. The 110th Congress had 434 members. That is one Congressman for every 691,000 citizens. The ratio has increased fourteen fold.

The Federalists based much of their thinking on Montesquieu, who argued that democracy was possible only in a small republic. Madison argued otherwise in the Federalist Number 10, that the potential magnitude of the United States would support democracy because factions or special interests would counteract each other.

The Montesquieu effect is that an individual's voice has greater effect the smaller the republic becomes. The likelihood of political action increases with decreasing size because action has efficacy. Personal reputation, public respect, and economic gain are more likely to be achieved. However, crowd emotion threatens democracy. In larger republics, such as the United States in 1790, interest groups form and counteract each other. The nation is still small enough that individuals can influence interest groups. Large size makes communication and transportation difficult. There is less responsiveness due to the larger size than in the smaller democracy. But the large size has the advantage of permitting dissidents to exit and encourages more reasoned discussion by interests. The Madison effect outweighed the Montesquieu effect in 1790 because interest groups can correspond to a legitimate range of public needs.

However, there is no reason to believe that this will be so indefinitely, that size can increase infinitely and the Madison effect will continue to outweigh the Montesquieu effect. It is quite likely that the Montesquieu effect will begin to outweigh the Madison effect when interest groups are too large to motivate individuals to participate or skewness in benefits from organization become marked.

Mancur Olson has outlined this process. When the benefits from organization outweigh the organizational costs to each individual, then organization is likely. Small groups with large benefits tend to be better at organizing. They contribute to politicians and have the most access. Politics increasingly becomes a matter of economic opportunism. Specific financial arrangements that depend on special interest organization, for example the monetary creation powers of the Federal Reserve Bank, governmental privileges of health care providers, laws protecting trial attorneys and the like delineate the contours of power. General public concerns become mired in cross conflict because reward structures are unclear. Interests such as Wall Street arrange $2.5 trillion subsidies while defense, government operations, education, and other governmental responsibilities are botched or co opted by specific interests. Thus, there is a tipping point where the Montesquieu effect outweighs the Madison effect. This began to occur a century or so ago. In 1884 the Mugwumps were still willing to organize a national outcry against supposed corruption of a presidential candidate, James G. Blaine. In 2008, corruption by congressmen occurs with impunity.

There are other factors that modify size effects, specifically the development of technology. It would seem that centralized media changed the Montesquieu effect. This may be why as America grew to large population in the 19th century the republic was able to function. Yellow journalism bound the nation together. This was reinforced by radio, then television. Centralized media made the nation smaller so that its large scale was less of an impediment. The effect of the corrupting influence from centralized economic actors, railroads and other large corporations, led to a Madisonian response: reforms proposed by the Mugwumps, the Progressives and the Roosevelt New Deal. But such reforms were ineffective. They assumed away the scale and rationality problems that confront large organizations. This was because the idea of cognitive limits on management was unknown. The Progressives, moreover, chiefly focused on state reform. By the 1930s, naivete about the management possibilities of large scale had escalated even business enterprise had arrived at decentralizing responses to limits on the ability to manage large organizations. The Roosevelt New Dealers claimed that they could surmount scale impediments to competent management that had stymied America's best managers.

The centralizing trend of the federal government continued unabated. There are numerous reasons why this trend would result in destructive, suboptimal outcomes. The interest group problem becomes exacerbated. Competent execution of programs is difficult. One program after the other has either failed to be discarded; has failed to respond to public needs; has responded instead to particular needs of special interests; and/or has been mismanaged.

Thursday, February 5, 2009

Evolution of Progressivism as Elitist Paradigm

The debate between individualists and social democrats centers on the effects of centralization and the scope of rationality. Social democrats or "progressives" argue for enhanced centralization and the possibility of broad rationality in policy making. The rationality is accomplished through elite experts who claim to have superior, scientific knowledge obtained through university education. Individualists, in contrast, argue for the necessity to coordinate economic activity through decentralized, autonomous producers who are coordinated via price and motivated by private property. The debate between advocates of price versus hyper-rationalistic human planning through a centralized government agency would seem to have been settled in the 1980s. None of the socialist states was able to successfully implement centrally planned economies. Moreover, the tyranny associated with communism confirmed the worst fears of Milton Friedman and others. Yet, as late as 1972, when it had become evident that the Chinese communists had murdered approximately 25 million people, leading advocates of rational planning, John Kenneth Galbraith and Wassily Leontief, argued for the virtues of the Chinese communist system in the pages of the New York Times Magazine. Within a decade the Chinese themselves admitted that their approach to communism had failed, yet this had escaped the expertise of American universities' most famous economists. Now, 20 years after the final failure of Soviet communism, American academics and the Democratic Party continue to argue for state coordination and elitist-conceived solutions to elitist-conceived problems.

The question of centralization and decentralization has a long history in the United States. Its advocates hearken back to the ideas of Steuart and Shaftesbury and Hume, who was an anti-rationalist in epistemology and ethics but a rationalist in economics. Alexander Hamilton adopted the ideas of Hume and aimed to implement the mercantilist model. The Federalists believed that elite business people had exceptional rationality so that they could transform paper money into enhanced real wealth. This idea came from Hume. In turn, the elitist centralizing and hyper-rationalist idea was adopted by the Whigs, Henry Clay and then Abraham Lincoln, and carried forward by the Republicans in the form of advocacy of high tariffs and national banking. Although the Republicans voiced the ideology of laissez faire in the late nineteenth century, their reform impulses, as reflected in the National Banking Act, the Morrill Act, high tariffs, and the Pendleton Act reflected a centralizing interest in rationality. In turn, the early twentieth century Progressives advocated rationality and centralization, and this theme was reenforced by the New Deal.

If one looks at the social origins of the centralizing rationalists in American history there was a transformation in the late nineteenth century. Hamilton and Clay were a Federalist and a Whig who came from modest origins. Hamilton was an orphan who had won the support of businessmen in Nevis who financed his education and Clay was from a frontier middle class background, although he claimed to be poor. This was William Henry Harrison's response to the Jacksonian common man ideology of which Louis Hartz writes and that Abraham Lincoln carried forward.

A shift occurred in the Gilded Age. The Mugwumps did not identify themselves as having come from poor backgrounds. Their interest in rationalization of civil service and contempt for corruption was a reaction to Jacksonian democracy. They were college educated and saw themselves as differentiated from the mass of Americans and immigrants because of their education. They conceptualized themselves as a self conscious elite, and were other-directed. Their opposition to James Blaine in 1884 was group and media derived. It was fashionable. Among the Mugwumps was Theodore Roosevelt. Roosevelt rejected the laissez-faire philosophy of the older Mugwumps and carried forward the view of morality as an elitist obligation. Progressives saw reform as a class-linked moral prerogative. However, Roosevelt also advocated support for big business, centralized authority and the use of rationality as he defined it, for the ends that he defined as moral. The Progressives applied moral skepticism with respect to the natural rights philosophy, but moral dogmatism with respect to their social vision. They were other-directed in that the Progressive vision consisted of ad hoc propositions, news and whim of the elite itself. It claimed to be pragmatic, but refused to permit its dogmas to be falsified. Roosevelt initated a century long claim to superior mental ability of those who advocate the Progressive or liberal dogma.

The claim of superior mental capacity of a superior class follow through Hamilton, Clay and the Mugwumps, into Progressivism and the New Deal. Hamilton and Clay believed with Jefferson that there was a natural aristocracy. Hamilton and Clay both believed that government support for the elite would foster social goals because the elite could best use public wealth. The Mugwumps transformed the claim to superior knowledge from business to control of business via the state. This coincided with the increasing complexity and knowledge required to succeed in business. As technology grew more complex, the centralizing elitist philosophy dispensed with the claim that superior knowledge was needed to found and run business, and transformed into the claim that it was needed to regulate and dominate business.

The Mugwumps were the first group to identify altruistic or moralistic elitist aims. This came about because of their horror at the boss system and what they identified as pathologies of immigration and urbanization--slums and corruption. They sought to rationalize government.

Roosevelt was thus the product of the increasing wealth of American society. Unlike the early nineteenth century Federalists and Whigs, the Progressives made no pretense of humble origins but rather claimed an aristocratic elitism. Jane Addams was a social worker who aimed to altruistically help immigrant poor through a superior social position. Labor was viewed as ineluctably trapped in inferior class status. Class and group differences were viewed as inevitable, with the Progressive leadership expressing the altruism of the elite class. Government support for and rationalization of big business, the good trusts and the Federal Reserve Bank, the Workers' Compensation laws that limited employer liability in the name of altruistic concern for workers expressed the new elitism.

Wednesday, February 4, 2009

Asymmetric Pluralism

Andrew Jackson created the concept of pluralism. William Appleman Williams in Contours of American History argues that Herbert Hoover did nearly a century later, but the elements of Hoover's notion that labor and management represent distinct interests that require representation through the state were very much present in Jacksonian democracy. Jackson saw the Democratic Party as the means by which common economic interests could be galvanized or represented against the institutionalized power of paper money and speculation. His creation of the party system along disciplined lines was meant to form resistance to the tendency of economic elites to establish central banking and fractional reserve systems. In this, the spoils system provided economic incentives to party activists that paper money inflation provided to speculators and economic elites. The party system evolved into bossism. Elites were able to characterize it as corrupt, but paper money as altruistic or not corrupt. This was accomplished by identifying paper money issuance with agriculture in the late nineteenth century. This attempt failed in part because the remnant of the Jacksonian philosophy was sufficient to resist it. In the Democratic Party this was through the Bourbon Democrats of Grover Cleveland and in the Republican Party it was through the Mugwumps, the philosophical descendants of Adam Smith and Jackson. The reversal of roles is a pattern seen elsewhere in American political history. For example, in the early twentieth century the Republicans came to advocate reform and progressivism, but by the 1930s this became the pretense of the Democratic Party and the Republicans were painted as the party of business.

The failure of pluralism with respect to the working class in both its major forms, the party or spoils system of the 19th century and the labor movement of the late 19th and 20th century has forestalled the ability of American democracy to be representative. That is, as Jackson foresaw, the "monied" interests have a natural incentive to support banking and paper money, but the working class has a looser interest in institutionalization of its interests. This is in part because the interests of workers are not so well defined and are subject to fluctuation because of changing economic arrangements so that institutionalization is quickly outmoded. It is also the case that the working class has less organizational ability and so allows its representative institutions to be co opted and often corrupted.

There has never been a stigma associated with advocacy of paper money as there was with political bossism or with labor unions. Yet, paper money and fractional reserve banking involve a greater degree of deception and fraud than either of these institutions. Labor unions are depicted not only as corrupt (as in the cases of the Teamsters, longshoring, hotel and restaurant and various construction unions) but also violent. The violence of labor unions is not contrasted with the systematic fraud of fractional reserve banking and paper money. Likewise, the political boss system was painted as corrupt.

The Progressives were the ones largely responsible for attacking the patronage and boss system. This began with the Mugwumps in the 1880s and the Pendleton Act, the establishment of the federal civil service. All states followed suit. This was done in the name of expertise. It is questionable that government bureaucrats have any special expertise or that if Bernanke was replaced by a random name taken from the Albuquerque phone book that the Fed would do any worse than it has. A key result of the emphasis on expertise was the severance of direct incentives to fulfill working class needs from the political leadership. Finding a job for a constituent no longer could be a priority because jobs were now to be filled through rational methods, namely civil service exams. Favors for constituents could now be viewed as corrupt.

The case of Robert Moses in New York illustrates the class-driven asymmetry of Progressivism and its sister movement the New Deal with respect to rationalization. On the one hand, a series of bureaucracies utilizing rational hiring methods was established to build the bridges, parks, highways, housing complexes and tunnels that Moses built. On the other hand, strategic choice concerning where to build, the nature of housing and urban redevelopment continued to occur on the basis of personalistic choice, cronyism and the spoils system.

This is equally true of the Federal Reserve Bank. The Bank claims to scientifically or rationally determine the quantity of money, but the distribution of new money to specific banks is purely due to special interest capture and caprice. A pretense of science overlays the asymmetric spoils system.

Over time, American pluralism has fashioned two forms of representation for the working class. The first, Jacksonian democracy, indeed forestalled the central bank. Until the late 1890s American workers saw rising real wages. The system did not work well for business, property or farm owners, who saw asset values depreciate due to inflation. Populism was a movement of farm and other asset owners, it could not have been otherwise for farm labor had no stake in credit availability. Populism was a movement of land speculators, failed or otherwise, but it also served the interests of Wall Street and business owners, who had been complaining of overproduction for several decades in the late nineteenth century. This was occurring because of innovation and because of deflation, which increased labor's savings (its "demand for money). In turn, labor was able to withstand layoffs because it had savings.

William Jennings Bryan proposed to overturn the Jacksonian system in 1896. McKinley, an advocate of high tariffs, defeated the Populist platform. It was not until 1933 that free silver found its quiet adoption in hyper-charged form via Franklin D. Roosevelt's abolition of the gold standard and illegalization of ownership of gold. This was accomplished with little fanfare because by then the media had been completely co opted and the notion that "experts" could better derive decisions in areas like money and banking had been hammered in the public discussion and in increasingly utilized schools for several decades. As well, the establishment of the Federal Reserve Bank in 1913 inured the public to the use of paper money. The class interest involved in adoption of a pure paper money system was ignored both by the media and by Roosevelt's supporters, who argued, as did John Maynard Keynes, that reduced wages were in workers' interest. They argued this in somewhat arcane terms such as the claim that "aggregate demand" needed to to stimulated. This would be accomplished by eliminating savings by reducing interest and increasing the money supply. The Keynesian system is silent as to the chief issue inherent in paper money issuance--who gets the new money. By default, Keynesianism is a class-based, elitist philosophy that subsidizes banks at public expense. It does so by claiming, as does William Greider in his book Secrets of the Temple, that low real wages are good because they help owners of construction companies and land owners. Greider's book is rife with the double talk characteristic of the Keynesian argument, such as that on the one hand billions are given to interests like the Hunt brothers, corrupt foreign governments like those of Mexico and even more is squandered on frivolous investment and speculative schemes on Wall Street, but that nevertheless inflation helps the poor and middle class, as though the large sums handed to banks come from thin air.

Progressive pluralism thus hobbled the working class in two steps. First, it attacked the ward and spoils system, the basis for working class participation in party politics. It did not eliminate the spoils system for elite jobs but rather for the jobs that would attract working class activism. Second, it created labor unions as representative institutions. This was essential to the Progressive agenda of the National Civic Federation in the early twentieth century, the employer association in which "responsible" big business, labor unions and the public claimed to be represented; it was advocated by Theodore Roosevelt; and it was codified in the 1920s by the Railway Labor Act and in the 1930s by the National Labor Relations Act and the National Recovery Act.

Progressives believed that labor unions would represent workers' interests as employer lobbying, employers' associations and government institutions like the Fed represented employers' interests. However, this was not to be. The Department of Labor is an ineffectual bureaucracy, not a money-printing machine like the Fed. Labor unions were saddled with a primary responsibility of representing workers through collective bargaining and a secondary responsibility of representing their interests in the public policy process. There is an inherent conflict of interest across workers. Public works, for instance, subsidize construction and public sector workers but are paid for by private sector workers. Many workers do not conceptualize themselves as part of a bargaining unit subject to collective representative but rather as individual agents and either part of management or with distinct professional interests. The bargaining responsibilities are inherently at odds with the pluralist responsibilities. Moreover, and most importantly, employers have an incentive to oppose unionization at the shop floor level. There is no such incentive with respect to employers' organizations. Workers have no reason to oppose the ability of the National Association of Manufacturers to represent small industrial firms. But employers have an economic incentive to oppose labor representation of workers because collective bargaining costs the employers in two ways: through loss of profitability and through loss of discretion. Thus, Progressivism never did provide workers with a symmetric voice in the pluralistic process.

Friday, December 12, 2008

David Horowitz on the Birth Certificate: An Anti-Federalist's Response

David Horowitz recently wrote an important Frontpagemag editorial that argued that conservatives should drop the birth certificate issue:

"64 million Americans voted to elect Barack Obama. Do you want to disenfranchise them? Do you think it's possible to disenfranchise 64 million Americans and keep the country? And please don't write me about the Constitution. The first principle of the Constitution is that the people are sovereign. What the people say, goes. If you think about it, I think you will agree that a two-year billion dollar election through all 50 states is as authoritative a verdict on anything as we are likely to get. Barack Obama is our president. Get used to it."

David and I exchanged several e-mails over this point last week. I disagree not so much with the possibility that the birth certificate may be ok (who knows?) but with David's claim that democracy ought to trump constitutional parameters and restrictions.

Majority rule was not contemplated when the nation was founded. The Progressives such as Herbert Croly argued for Rousseauean general will and unlimited democracy. Whether their agenda was this or whether Croly and his partner Walter Weyl were just re-processed Fabian socialists interested in furthering a Europeanized American elite is a matter for debate. But Croly's and the other Progressives' contempt for the founders together with their advocacy of unlimited, socialist-style state power reflected the essence of European statism and remain the essence of American P(p)rogressivism. Weyl's and Croly's Progressivism cannot be called conservatism in the American sense, yet the leadership of the Republican Party has discarded the last remnant of Jacksonian democracy, the "Reagan revolution", and adopted the Progressive platform. Thus, today we have no conservatives in Washington but rather a Progressive Party and a progressive one.

When the current Constitution was framed there were two schools of thought, the Federalists and the anti-Federalists. We remember the Federalists such as Hamilton and Madison, who wrote the Federalist Papers and the Constitution, but we don't have so clear a memory of the anti-Federalists, to include George Clinton, Robert Yates, Sam Adams and Richard Henry Lee. The anti-Federalists were in a number of senses more modern, or perhaps post-modern, than the Federalists.

The Federalists were proto-typical Progressives in the sense that they advocated centralization and a strong federal government. They were advocates of economies of scale that carried forward via the Progressives into the twentieth century. But the Federalists, like Madison, did not reject the basic notion of limited government. Madison argued that a durable Constitution would serve as a more potent limit on tyranny than would Jeffersonian generational revolutions.

The Federalists feared what de Tocqueville called "tyranny of the majority", and the most important theme that runs through the Federalist Papers, such as number 10, is fear of faction, specifically (emphatically) including majority faction. The Federalists did not advocate rule of the majority. They limited popular vote to vote for the House. The Senate was to be elected by state legislatures and the president by the Electoral College. Article II Section I of the Constitution does not provide for popular election of the president:

"Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector."

Although the Electoral College has received a great deal of criticism among pissant progressives, the recent election seems to me to confute the progressives' claims for unlimited democracy. The absence of a competent media in the United States means that popular opinion is misguided and that democracy necessarily devolves into a contemptible failure here. Conservatives ought to begin to fashion alternatives to the Progressive propaganda into which they have been indoctrinated at Columbia and elsewhere.

As unlikely supporters for ignoring the Constitution as were the Federalists, the anti-Federalists would have been much less likely to support ignoring Article II's natural born citizenship requirements (were they alive today) for they were opposed to a central government period. They would have scorned the idea that popular elections would have any meaning for the very reasons I adduce: the public has no way of evaluating candidates elected on so vast a scale, so large scale democracy must fail. 64 million Americans must be wrong because it is impossible to obtain good information. This is because of constraints on the media's ability to ask relevant questions, its cognitive limits on rationality, not just because it is owned by media conglomerates and biased in the progressive direction.

The anti-Federalists favored small batch production, small units, and local responsiveness. They were post-modern (as well as pre-modern). They favored local democracy in many cases, but not national democracy, an idea that they would have scorned.

There is a true question that no historian has asked as to whether adoption of hyper-decentralization in that early period, as the anti-Federalists favored, would have resulted in a more dynamic, more competitive and more productive American economy than the centralizing approach that Hamilton advocated. Progressivism has claimed that big business makes consumerism possible, but the facts do not seem to support this claim. Production methods of the 21st century are more consistent with the idea of "just in time" decentralization than with large-batch centralization. Perhaps the sub-optimal centralization of the Federalists and the Progressives could have been avoided. A more decentralized America would not have permitted as much lackadaisical big business, waste, railroad-related corruption and big city sleaze of the very kind that resonates today in Chicago.

Jefferson was on the fence. He was often a fellow traveler of the anti-Federalists and objected to centralization, but as president bought Louisiana and acted like a Federalist, establishing the navy and avoiding legislative restrictions on executive privilege and advocating use of state level sedition acts against his opponents.

The anti-Federalists lost the constitutional debate, although they are memorialized in the Bill of Rights, but the election of Jefferson in 1800 was a reassertion of a fossilized anti-Federalism within the Federalist system. Jefferson's election ended the Federalists as a political force, and both of today's political parties descend from Jefferson's Democratic Republicans. But both have rejected the decentralization in which Jefferson believed in principle.

Neither party has been perfect. The Democrats under Andrew Jackson smashed the central bank and emphasized states' rights, albeit for the wrong reasons. The centralizing, aristocratic, elitist element has always been present in American politics via the Whigs and the Republicans. But the decentralizing, anti-elitist element that started with the anti-Federalists and to which Jefferson and Jackson were sympathetic has all but died. This is the tragedy of American politics: our greatest tradition to which conservatism ought to be committed has been replaced by a pale copy of European monarchy, centralization and Fabian socialism via Weyl and Croly. The Republicans have become the Progressive Party and the Democrats the progressive Party. Meanwhile, the American people are scratching their heads.

The great confusion began with Abraham Lincoln, who was a Whig and a centralizer, but who adopted Jacksonian rhetoric that was carried forward by the Mugwumps. The Mugwumps such as Charles Sumner, EL Godkin and David Ames Wells adopted Jacksonian economics and favored the gold standard. But they had two interests that were consistent with their Whig roots and were the basis for the reassertion of centralization that was carried forward via the Progressives. These were a desire to rationalize government via civil service and an interest in establishing professions such as law and medicine.

The Mugwumps' fixation on professionalization and universities led directly to the modern American university's adoption of European standards, which in turn has been the major force for statism in American history. Thus, the modern university is a direct product of American political forces, notably the Republican Mugwumps' fascination with economic and sociological theory led them to send as many as 10,000 Americans to German and European graduate schools in the late nineteenth century. These young graduates came back and established anti-laissez faire centers at Johns Hopkins, Wisconsin and elsewhere via European-trained economists like John R. Commons and Richard T. Ely.

The Republicans thus reasserted themselves as a centralizing force in the late 19th century (the Republican cooptation of Jacksonian Democracy having lasted no more than 35 years, from the 1860s to the 1890s) and then the Progressives became the centralizing elitist force out of the remains of the late nineteenth century Mugwumps and Bourbon Democrats.

The Progressives were smart enough to assert European values in the name of the common man and trust busting, even though the effects of their programs were not so straightforward, and the Democrats then copied the Progressive Republicans in the 1930s, claiming to be for unions and the poor when they were really for Wall Street. The most important step Roosevelt took was abolition of the gold standard and freeing the Fed to create money, the greatest subsidization of business in American history.

Thus, by the 1930s the centralizing force had won, and the decentralizing, anti-elitist force ceased to be a political power except on the fringe. Of course, many and perhaps a majority of Americans still believed in the anti-elitism of Jackson and had decentralizing instincts, but the rhetoric of American politics became riddled with double talk, lies and deception ever since the Progressive era. The wealthy were able to pull off a centralizing coup, securing monetary-creation power for themselves while telling everyone, including idiots like William Greider, that the creation and handing of money to business interests was in the poor's interests. In a sense, through sleight of hand, a fringe elite has been running the nation ever since.

As a result, today we can truly say that America is a one party system, the Republicans who advocate for the Fed on behalf of the wealthy and say they are for free markets and competition, and the Democrats who advocate for the Fed on behalf of the wealthy but say they are for the poor.

So what does all this have to do with the Birth Certificate? The Constitution is in extremis. Ignoring Article II is one more nail in the Constitution's coffin. If you look back to the anti-Federalists, they warned of an over-powerful Supreme Court, fearing it would turn into a force for an aristocratic elite. Likewise, they opposed the central bank for the same reason. They were right. The Federalists believed that the Constitution would prove durable and serve as a restraint on centralized power.

But today even conservatives have forgotten that America is first a nation of liberty, not a democracy. Nor was it intended to be a democratic one, except according to the fringe Progressives who have come to dominate the central government, the very outcome against which the anti-Federalists warned.

Tuesday, September 9, 2008

Similarities Between President Grover Cleveland and Sarah Palin

In 1884 Democrat Grover Cleveland defeated Republican James G. Blaine. Cleveland was what was then called a "Bourbon" Democrat, a laissez-faire liberal who favored low taxes, the gold standard, de-regulation and low tariffs. He represented honesty in government, like Sarah Palin. The elite New York and Boston Republicans, known as Mugwumps, backed Democrat Cleveland over Blaine. They were called Mugwumps because they were early "professionals" of the same kind that flowered in the twentieth century--professors, lawyers and physicians as well as businessmen. Some were independently wealthy. "Mugwump" means "Chief" in a Native American dialect, I believe Algonquin.

Here are some similarities between Grover Cleveland and Sarah Palin:

o Cleveland was governor of New York for two years before becoming president. Palin will have been governor of Alaska for two years before she swears in as vice-president.

o Cleveland was Mayor of Buffalo for less than a year before being governor. Palin was Mayor of Wasilla for four years before becoming governor.

o In 1873 Cleveland had an affair with 35-year old Maria Halpin and she bore Cleveland's son, Oscar Folsom Cleveland, out of wedlock. Sarah Palin's 17-year-old daughter, Bristol Palin, is currently pregnant out of wedlock

o Grover Cleveland's opponent, James G. Blaine, was accused of lying about his relationship with the Little Rock and Fort Smith Railroad and the Northern Pacific Railroad. Barack Obama has been accused of lying about his background, in his book, about his birth certificate and about his relationship to George Soros.

o Grover Cleveland favored lower taxes and less regulation. Sarah Palin favors lower taxes and less regulation.

o Grover Cleveland attracted bolters from the Republican Party (the Mugwumps) who believed that Blaine was corrupt. Palin is attracting bolters from the Democratic Party who believe that Palin best represents women and that her opponents are corrupt.

President Grover Cleveland was the last true laissez-faire liberal to be elected to the presidency. During his presidency, the average real wage increased by 10-20%. Big business and the left complained incessantly about "depression" but millions of immigrants flocked here to take advantage of the tremendous opportunities that laissez-faire offered the poor.

Wednesday, August 20, 2008

The Paradox of Economies of Scale and Government Bounties to Big Business

One of the key arguments that economists and historians have traditionally made in favor of big business, and one that the public has generally accepted, is that it is necessary because of economies of scale. This image was exemplified by the Ford production plants of the 1920s, which could produce thousands of cars per week. The reason that economists and the general public have traditionally believed that economies of scale are important is that the fixed costs of production, costs that will be there whether one or a million units are produced such as advertising, rent, and administrative staff costs, when spread over a large number of units of output become lower per unit. The argument for scale amounted to an argument for centrally planned economies. In his book "Managerial Revolution", written in the 1930s before the murderous nature of Nazism had been fully revealed, James Burnham argued that a new managerial class was independent of owners and he cheered the advent of national socialism in Germany because government control and guidance of large industry reflected the realities of the new managerial power. Thirty years later, in the early 1960s, John Kenneth Galbraith described the economy of big business as based on planning by a "technocratic" elite in his book New Industrial State.

But while the public has accepted the argument that big business is necessary for consumerism because only large firms can produce large numbers of outputs, big business has tactically demanded and likely required government subsidies in order to survive. And there is a paradox. For if big business is most efficient, then why does it need subsidies? In his 1977 book Politics and Markets Charles Lindblom argued that business occupies a "privileged position". More fundamentally, ever since the days of Hamilton, and with the exception of some business interests in the late nineteenth century, much of American business has asked for two crucial kinds of subsidies: protectionist tariffs and monetary expansion. When Jackson abolished the Second Bank in the early 1830s he limited the degree of monetary expansion. That period, from the 1830s to 1900, was the period of greatest innovation in technology and strongest gains in real hourly wages of workers of any in American history. It was also a period of uncertainty, volatility and conflict between labor and management. However, even in the nineteenth century monetary expansion associated with the Civil War facilitated expansion of credit and therefore enhanced the size of business. By the late nineteenth century the Mugwumps, traditional, mostly Protestant (there were some Catholics and Jews as well in their ranks) Yankee elites in Boston and New York protested the support to speculators like Jay Gould that the monetary expansion had provided, coupled with erosion of their annuities and bank accounts.

The expansion of the railroads contributed mightily to the expansion of US markets into a single whole, and were the crucial step in making big business economically viable and efficient. But the railroads were largely the product of subsidy, and the canals that preceded them were government public works projects, not private enterprise. Neither the railroads or canals were entirely responses to market demand. Rather, they were made possible by land grants and rights of way granted by often corrupt state and local governments. An example is New York, where Jay Gould was so indebted to Boss Tweed that he paid Tweed's bail when Tweed was arrested for corruption. Thus, the Civil War inflation and government subsidies to railroads made expansion of the railroads possible. In turn, the railroads coupled with high tariffs made expansion of business possible. In turn, business enjoying both these supports and economies of scale, consolidated in the nineteenth century.

Late nineteenth century big business was poorly managed. It is likely that the labor conflicts and inefficiencies of the large firms were due to their too-rapid expansion. In management, experience is the foundation on which expansion depends. In a laissez-faire market, a firm becomes large as its managers gain expertise in one market and then duplicate the success in subsequent markets. An example is McDonald's. The founders of McDonald's, Dick and Mac MacDonald owned a single store in San Beranardino, California. Ray Kroc, a multi-mixer distributor, read about their success and visited the store. Kroc's vision of a national chain of stores led to his agreement with the McDonald brothers. But it took Kroc many years to make McDonald's a success. He had to learn the importance of standardization through multiple false starts in California. He had to learn the importance of professionalization of the franchisee relationship through mismanagement of franchises by his friends from his country club who did not focus on managing the stores. He had to learn how to use real estate investment to help finance store expansion and contribute to profit margins from Harry J. Sonneborn. He had to learn how to standardize equipment and the size of French Fries. Kroc did not conceptualize almost any of the food offerings, most of which were the result of suggestions from franchisees. He did not create the clown, which was the result of a local advertising campaign by one of his large Washington, DC franchisees.

Would any of the steps that McDonald's took have been made had there been a massive tariff on hamburgers or if state governments, in return for bribes, had offered exclusive distributorships to Ray Kroc, or if credit expansion through the Federal Reserve Bank had benefited McDonald's as it does Wall Street today? Would any of the innovation in McDonald's have occurred?

In the early 1960s Ronald Coase wrote about the reason that organizations reach a given scale or size. He argued that, like much else in economics, it is due to an equilibration of costs and benefits. The costs of scale include ability to manage, incentives to top management, conflicts between labor and management, difficulties in obtaining information about operations, inflexibility in changing direction when markets change and office politics. The advantages of scale include economies of scale and economies of scope, i.e., the ability to share information learned in one business to a different business, much as Time Warner's AOL unit was able to share information with Roadrunner (that's a joke; the Time Warner and AOL units were in constant conflict after their ill-advised and incompetently executed merger).

The subsidies to big business have increased, not diminished, over time. The Democrats have inadvertently or not, been big business's best friend by demanding regulation, supposedly in support of big labor, that squelches smaller firms by further increasing the advantages of scale economies. They have also established the Federal Reserve Bank, which once the Republicans realized was actually the most important of all the subsidies to big business went on a binge and nearly doubled the rate at which the money supply grew after 1971. The Democrats have never complained, and have follwed the same course since. Thus, both parties have seen subsidization of Wall Street and big business at public expense as the cornerstone of their economic policies. The Democrats came up with the idea and the Republicans enhanced it. I became a Republican because the Democrats are better at initiating big government programs that subsidize big business. They do it by telling everyone that they support the poor and that the regulation supports the poor. But there were no segregated inner cities before the Democrats began to "support" the poor.

Which will outbalance the other--office politics or economies of scale and scope? Clearly, if government is providing support to big business, the amount of support needs to be subtracted from the gains from economies of scale.

Moreover, time has revealed that scale is not the most important factor in management. The Japanese were able to defeat big American business not because of scale but because of skill. Wal-Mart was able to defeat K-Mart not because of scale (it was a smaller firm until the 1990s) but because of skill. In particular, management of information, incentives, labor relations, inventory, factory management, total quality management, technology, product design and marketing, and similar factors can generate competitive advantages. Large firms like Nike have found it necessary to emulate small firms. They outsource their manufacturing and reserve the product design and marketing for themselves. In effect, they are consultants who control the business. These ideas have been circulating for many years. Yet, they bring into question whether scale provides much of an advantage. Coca Cola has found that local manufacturers can out-think them with respect to understanding local tastes, and has had to scramble to decentralize in order to compete globally. Its original vision of a one-world market drinking trillions of gallons of Coca-Cola was illusory.

Thus, the American idea, rooted in the expansion into the frontier, that scale and the expansion of markets is necessary results in a paradox. If scale is the source of economic gains, then why are such extensive subsidies to big business necessary? And if scale is crucial, why has there been so much volatility in world business?

Saturday, August 16, 2008

Social Democracy and the Achievement Motive

There may be a deepening rift between American culture and its political structure. The cause is the shift from what Louis Hartz calls the Horatio Alger psychology of late nineteenth century America to the credentialism and "rationalization" that Progressivism initiated in the early twentieth century. I put rationalization in quotes because although the Progressives and their predecessors, the Mugwumps, along with early management theorists like Frederick Winslow Taylor and Fayol believed that bureaucracy, tight structure, merit-based systems and the like fostered efficiency, this was only a partial truth. Merit and structure foster efficiency where change is limited but may not be so important where change is rapid. Also, the measurement of ability is riddled with error, even when it is done properly, which it rarely is. The best measures of ability explain 25-30 percent of the variance in performance for a specific job. There has never been any serious effort to predict long-term, say life-long achievement. There are measures that may predict future success, but the book "Millionaire Next Door" suggests that the key variables, ethics, time preference, thrift, interpersonal skills, type B personality, and a stable family are not generally discussed in the personnel psychology literature or tangentially so. But most firms do not utilize valid criteria in hiring. So even the modicum of rationality that the Progressives advocate have not been implemented in most firms.

More importantly, American society has chosen to replace achievement and market success with college and graduate school diplomas in making selection decisions. This removes achievement from the equation, and stratifies society. Part of selection into college is family background, and part is IQ as tested by the various scholastic aptitude tests. Neither of these is identical with achievement. The correlation between IQ and job performance is about .55, which means that about 30 percent of the variance in job performance is due to IQ, 70% is not. The correlation becomes much weaker when one looks at life success over the long term. Success and short-term job performance are two different things. Ethics and the Aristotelian virtues (courage, prudence justice and sophrosunae, self-control, balance or moderation) play a significant role over the long term. The point isn't to diminish the importance of IQ or raise the importance of ethics. Rather, the point is that structure rather than market have increasingly predetermined outcomes, and rough measures of potential rather than human excellence have been rewarded. In the nineteenth century Whig philosophers could argue that wealth reflected religious or moral virtue. In the twentieth century, one can argue that wealth reflects gaming some corporate HR department's slapdash interview process or the Scholastic Aptitude Test, which is only a hair better.

Thus, rather than achievement creating economic success, Progressivism decreed that success would be administered. The attack on achievement that began with the Progressive movement's emphasis on rationalized human resource management criteria and the related emphasis on professional degrees was carried forward by the social democracy of the New Deal, which reflected the ultimate fulfillment of the Progressives' agenda. The New Deal established the paradigm that experts can rationally determine the equitable distribution of wealth; that the very wealthy can retain their wealth intergenerationally through family trusts but that up-and-coming entrepreneurs would be heavily taxed upon death; that the use of coercion in the redistribution of wealth is acceptable; that the monetary system can and should be used to redistribute wealth as well as various compulsory welfare systems, such as social security and unemployment insurance.

The "conservative" attack on the New Deal focused on the unemployment insurance. In effect, the Democrats forced the Republicans into the same corner that Jefferson forced Hamilton, and the Republicans took the bait. The Republicans did not frame their complaints about the New Deal in terms of its bias toward the wealthy, in part because the Democrats were able to sufficiently cloak the bias by throwing up red flags that likely they anticipated the Republicans would charge. Social insurance is a small matter, and it could have been done voluntarily as many firms such as General Electric had been demonstrating by the 1920s through welfare capitalism. The public works of the Hoover and Roosevelt administration were nothing new. They had characterized American government since the pre-revolutionary days, and if anything were more voluntaristic than the approach that was often used in colonial America: forced labor.

What changed during the Progressive era was increasing subsidization of big business (which had always been subsidized) through the establishment of the Federal Reserve Bank, which increasingly became a conduit for subsidization of big business at the expense of small and at the expense of taxpayers. This can be coupled with regulation such as securities regulation, pension regulation, and health and safety regulation which purported to help small investors and employees but served the purpose of excluding entrepreneurial initiative and further consolidating power in the hands of large corporations and banks, which have through the twentieth century proved decreasingly efficient.

Thus, Progressivism attacked the achievement motive in two ways. First, by rationalizing selection for elite jobs, first through civil service and then through inept but rigid personnel requirements involving college diplomas that reflect IQ and class but not achievement. Second, Progressivism instituted a progressive process of regulation whereby elites could secure their position in the name of helping underprivileged groups whose lot became increasingly worse the more the social democrats helped them.

As a result, and because the debate between the advocates of achievement and social democracy devolved into a debate between two parties that advocate social democracy, the Democrats and the Republicans, the political and economic elite, through Progressivism, slowly wrenched America's heart out of its casing, and ate it, blood dripping from its Progressive chin. In effect, in the twentieth century Progressivism reversed the democratic and laissez-faire achievements of the nineteenth.

Louis Hartz wrote the following about those nineteenth century achievements:

"Freedom from state control went hand in hand with the religion of opportunity, which in the broadest sense democratized economic power and made it acceptable to the egalitarian ethos of a liberal society. Technically, of course, this correlation was not essential. One could have the Horatio Alger dream functioning in the context of the old Whig paternalism: Ragged Dick could dream of making his million in a business fostered by the government itself, and we cannot excuse Hamilton from his failure to grasp the Alger secret by referring to the state of the American economy. There was sheer blindness, sheer failure to understand America in the Hamiltonian attitude. At the same time the capacity of Whiggery to dispense with the state, or at least a portion of the state, did make certain things possible. One was a full appropriation, or perhaps one should continue to say "confusion" of the Jeffersonian and Jacksonian symbolism. That symbolism had assailed the state for granting the corporate charter and thus interfering with individual enterprise. Now, with the reliance on the state diminished, the capture of this symbolism was facilitated. The granting of the corporate charter could be confused with corporate regulation, the corporation could be confused with the individual, and Jackson could be turned inside out. The antagonism of state and individual, originally created to disadvantage the corporation, could be twisted to its defense. Down to the present day it is the genius of this achievement to convert the ideological Jefferson into his own worst enemy."*

Hartz's point is brilliant although his history is inaccurate in several ways. The point is that the corporation became a vehicle for individual achievement. But through a process of increasing government support as well as economies of scale and foreign trade advantages, the corporation became ever-increasing in size. Rather than demand that corporations prove themselves in the market, the Progressive era established exponentially greater supports for big business. This enhanced support had a range of economic and social effects. One of these was an attack on the achievement motive through credentialism, regulatory obstacles to new enterprise ideas, and the inheritance tax, which excludes the economic elite through the institute of family trusts, restricting the inter-generational evolution of family firms.


*Louis Hartz, "Government-Business Relations" in Economic Change in the Civil War Era: Proceedings of a Conference on American Institutional Change, 1850-1873, and the Impact of the Civil War Held March 12-14 1964. David T. Gilchrist and W. David Lewis, editors. Greenville, Delaware: Eleutherian Mills-Hagley Foundation.

Monday, August 4, 2008

The Progressives' Sleight of Hand

In the nineteenth century, "progress" meant technological and economic progress. Whig economists like Henry Carey believed in progress and were optimistic as opposed to the pessimism of Malthus and the Manchester school. However, by "progress" Carey meant technological and economic progress. He did not see politics as important. The idea that progress ought to occur through the political system was introduced in the late nineteenth century in several ways. First, the Mugwumps argued that rationalization of public administration through Civil Service laws meant progress. Populists argued that large scale industry must be broken up by government edict. Americans such as Henry Carter Adams, Richard T. Ely and John R. Commons, educated in Germany began to argue for social democratic intervention. Thus, the Progressives identified progress with governmental reform. Which is more important: breakthrough technologies and better management methods that increase wealth, or government policies that rationalize government operations and redistribute wealth? The Progressives seem to not have realized that there was a trade off. In particular, the policies that implement redistribution and regulation forestall entrepreneurship because their costs rest most heavily on small business entrepreneurs. The result is that the Progressives adopted an anti-progressive attitude toward technological and market progress, which was carried forward through the New Deal. The twentieth century saw a slowing of technological progress because of monetary, regulatory and redistributive reforms of the Progressive and New Deal era.

Sunday, August 3, 2008

Daniel Walker Howe's Political Culture of the American Whigs

Daniel Walker Howe. The Political Culture of the American Whigs. Chicago: University of Chicago Press. 1979. 404 pages. Available from Amazon.com for $26.60. Available used and new from $14.00.

This is a fine book. Interesting, highly informative, fun to read. Howe's writing is lucid. Books like this inspire us to learn. Howe's insights about the American Whig Party, their ideas, religion and culture are wonderful, and he covers a lot of ground. He uses a biographical approach that covers a wide range of Whig Party politicians beginning with John Quincy Adams (who became a Whig after his presidency and during his post-presidency Congressional tenure) and ending with Abraham Lincoln, not only the best-remembered Whig but also the best-remembered 19th Century politician, except perhaps for Jefferson. Of course, the Whig Party expired in 1856 and Lincoln gained the presidency as the first Republican, but his allegiance to Henry Clay never diminished.

I read the book because I became curious about the continuity of American elitist and pro-Central Bank ideology between the 18th and twentieth centuries. This book makes clear that there are many linkages between the Whigs and the Progressives, hence the New Deal (which is my own conclusion, not Professor Howe's). Nancy Cohen makes clear the link between the Mugwumps and the Progressives, and in his concluding pages Howe mentions that the Whigs mildly reasserted themselves via the Liberal Republican Party in the 1872 election, which is often referred to as an early phase of the Mugwumps' activism. Although Howe characterizes the Whigs as the "country" party, it is clear that many former Federalists became Whigs in the 1830s. It also is clear that the economic elite was associated with the Whigs just as they had been with the Federalists, niceties about political ideology aside. Thus, there is a clear line from the Federalists to the Whigs, then to the Mugwumps and then to the Progressives. The speeches of Theodore Roosevelt, himself a one-time Mugwump, make clear the connection between his own ideas and those of Franklin Roosevelt's.

One of the nice things about this book is that Howe covers the religious and evangelical elements in the Whig philosophy along with the economic and political. It is fairly clear that the evangelical social concerns, linked of course to abolitionism, form the basis of today's social democrats' concerns. The evangelical religious impulse developed in several ways, one of which was through Social Gospel Christianity, through to Progressivism and then the social welfare elements of the New Deal. The emotional commitment of social democrats to their programs can be explained in this evolution of religious feeling that has been displaced into social democracy.

This book, written as a solid piece of history, does not suggest that there is a continuous party that has favored economic centralization from the Federalists to the New Deal Democrats. But it seems clear from the evidence. For most of its history, with the exception of the Mugwump period, the centralization party has favored a central bank, public works (which were characteristic of not only of Hamilton's Federalist program but also of Henry Clay's American system, of Theodore Roosevelt's ideas and of the New Deal) and business. The Whigs, the Mugwumps and the Progessives were ambivalent about big business, although their moral concerns seem to have been easily displaced. There is little doubt that the tariffs that the Whigs implemented were in large part responsible for big business in America. The Mugwumps, at least in some instances, were willing to repeal the tariffs but the Progressives amounted to a reassertion of more aggressive Whiggery than had existed since the end of the Civil War. In the Mugwump period the urban elite became hostile to corruption of some big business. In turn, the Progressives and New Dealers in increasing progression used anti-business rhetoric to cloak their centralist orientation. The centralizing party favored tariffs in the Hamiltonian and Clay periods, then divided over tariffs during the Mugwump period. The anti-tariff position won thereafter to the extent that reductions in tariffs did not hurt American business interests.

American history occurs in cycles, with each cycle involving various combinations and variations on the issues of economic centralization, central banking, protectionism, and support for industry. Progressivism aggressively asserted the centralizing position against the late nineteenth century elitists' deviant laissez-faire philosophy. I call it deviant because in all other periods other than the late nineteenth century American elites have opposed laissez-faire in favor of corporatist, centralizing mercantilism, Progressivism and finally so-called "liberalism". It is a tribute to the power of laissez-faire that a movement that was backed primarily by working-class and small farmer Jacksonians from say 1825to today really, and had the backing of economic elites only during the post-bellum period that ended in the late 1890s, continued to provoke so much distress from university-trained economic elites, business and banking interests, organized labor and other proponents of elitist centralization through to the present.

Like the Whigs, the Progressives were advocates of a return to the corporatist mercantilism of the 17th and 18th centuries represented by Anthony Ashley Cooper, the Earl of Shaftesbury in the 17th century and Sir James Steuart in his "Inquiry into the Principles of Political Oeconomy", published in 1767. As William Appleman Williams aptly points out in his classic Contours of American History :

"...it is possible to gain a vital insight into that contemporary liberalism which defends the right of private property and asserts the supremacy of individual liberty while at the same time advocating the general welfare. For although such liberals show superficial similarities to the mercantilists, they are considerably removed from that conservative tradition of the common good. Such liberals usually label Karl Marx a heretic and consider socialism a heresy, but the reverse is much closer to the truth. The liberal tradition stems from the triumph of laissez-faire individualism over corporate Christianity. Marx and other socialists reasserted the validity of the original idea in response to the liberal heresy. That is indeed one of the basic explanations of socialism's persistent relevance and appeal in the 20th century."*

Williams's point can be expanded a bit, because not only socialists but also Whigs and Progressives rejected the laissez-faire heresy.

As opposed to laissez-faire, the Whig Party (p. 16) "advanced a particular program of national development. The Whig economic platform called for purposeful intervention by the federal government in the form of tariffs to protect domestic industry, subsidies for internal improvements, and a national bank to regulate the currency and make tax revenues available for private investment...The Democrats inclined toward free trade and laissez-faire; when government action was required, they preferred to leave it to the states and local communities. The Whigs were more concerned with providing centralized direction to social policy...The most important single issue dividing the parties, and the source of the most acute disappointment to the Whigs after President Harrison had been succeeded by Tyler, concerned the banking systemm. Jackson's veto of the recharter of the Second Bank of the United States in 1832 became the point of departure for a generation of political partisanship". By 1860 Abraham Lincoln favored reinstitution of a central bank but was unable to effect it, and a central bank was not reinstituted until 1913, under Woodrow Wilson, who was the first of several Democratic Party Whigs.

Howe goes on to point out (p. 17):

"The banking-currency issue (that is, the right of banks to issue their own paper money) mattered at the state as well as the federal level. Many states redrafted their constitutions during the Jacksonian period and had to decide whether they would authorize state banking monopolies (usually mixed public-private corporations), specially chartered banks, free banking, or no banks of issue at all. As time went by, the parties tended to polarize with respect not only to rechartering a national bank but to the function of banking in general. The Democrats generally became more committed to hard money (specie or government-issued currency), while the Whigs became defenders of the credit system (in which banks were the issuers of currency)."

"When Democratic "Martin van Buren complained during the Panic of 1837 that people looked to the government for too much," (Whig) Henry Clay retorted that the people were "entitled to the protecting care of a paternal government." This is very much in the tradition of mercantilism.

But while on economic issues the Democrats were anti-inflation and pro-democracy, on the race issue the Democrats were pro-slavery and racism while the Whigs were less racist and more anti-slavery.

Howe argues that (p. 20):

"there is danger in calling the Whigs champions of the positive liberal state. It makes them sound too much like twentieth-century liberals. Actually, the differences between the Whigs and twentieth century liberals are more important than the similarities. Whig policies did not have the object of redistributing wealth or diminishing the influence of the privileged. Furthermore, the Whigs distrusted executives in both state and federal government (they had been traumatized by the conduct of Jackson), whereas twentieth century liberals have endorsed strong executives more often than not. For all their innovations in economic policy, the Whigs usually thought of themselves as conservatives, as custodians of an identifiable political and cultural heritage. Most deeply separating the Whigs from twentieth century liberals were their moral absolutism, their paternalism and their concern with imposing discipline...the Whigs proposed a society that would be economically diverse but culturally uniform; the Democrats preferred the economic uniformity of a society of small farmers and artisans but were more tolerant of cultural and moral diversity."

Taking the last point first, economic diversity is not an issue of importance today, but cultural uniformity is. Perhaps invisibly to Howe, twentieth century social democrats have aimed to foist a cultural uniformity on America. In the mid twentieth century they claimed that liberalism reflected the national consensus. By the 1980s they advocated political correctness. Political correctness is a moralistic impulse with Whiggish religious roots. Moreover, although the twentieth and 21st centuries have rejected the sexual morality and Aristotelian virtues characteristic of the Whigs and earlier, they have replaced these with a host of politically correct moralities with which they replace faith and tradition, to include animal rights, global warming and similar causes.

It fascinates me that Howe's argument begs the argument of Murray Rothbard, Ronald Radosh and Martin J. Sklar in New History of Leviathan that twentieth century liberalism did not aim to redistribute wealth but only used social democratic rhetoric to re enforce elitist goals. In terms of culture, there is no doubt that 20th and 21st century liberalism repudiates 19th century Whiggish elitism as well as 19th century Democratic Party racism in favor of a revised elitist philosophy based in part on similar impulses, such as claiming special status for the educated, especially the professions. Changing technology and extensions of knowledge created new economic interests in the late nineteenth century that changed the emphasis of the Whigs' descendants, the Mugwumps, into emphasizing the role of the professions, Whiggish forms of government intervention in support of the professions and rationalization of industry and government (which the Whigs would have supported). Naturally, economic conditions altered the form elitist centralization took just as religious and moral emphasis and alliances shifted.

But on the following page Howe puts the statist essence of the Whigs into focus (p. 21):

"Because of their commitment to 'improvement', Whigs were much more concerned than Democrats with providing conscious direction to the forces of change. For them, real progress was not likely to occur automatically; it required careful, purposeful planning...Whig morality was corporate as well as individual; the community, like its members, was expected to set an example of virtue and to enforce it when possible. A third recurring theme in Whig rhetoric was the organic unity of society...the Whigs were usually concerned with muting social conflict."

Seventy years later, when Frederick Winslow Taylor advocated a "mental revolution" between labor and management as part of his system of scientific management that aimied to rationalized industry, like a good Whig Progressive (and Herbert Croly specifically endorsed Taylorism) he was arguing for the organic unity of society.

The Whigs liked to draw an analogy between the human body and the political system (p. 29): "An essential feature of the analogy for the Whigs was the parallel between regulating the faculties within an individual and regulating the individuals within society. Faculty psychology tgaught an ideal of harmony within diversity...The model ruled out laissez-faire as a social philosophy, emphasizing instead the mutual responsibility of individuals and classes. The ideal society, like the ideal personality, improved its potential in many directions. Economic development promoted a healthy diversity, which 'furnishes employment for every variety of human faculty.' The conception implied an active, purposeful central government, administering the affairs of the nation according to its best judgment for the good of the whole and all parts of the whole."

This explains the difference between the Whigs and their later descendants, the Progressives and the New Dealers, as to the importance of the chief executive. By 1900 the federal government was becoming too complex to permit a legislature to make managerial decisions. Hence, advocates of centralization had to choose between no centralization and a strong legislature or centralization and and a strong executive. Obviously, centralization was more important to the centralizing party than was a weak executive. As a practical matter, centralization is impossible without a strong executive once government reaches a certain level of size and complexity. Since the Whig/Progressive/New Deal Party has been focused on expanding government to satisfy the economic interests of the professional and managerial classes, the issue of a powerful executive is a trivial one compared to the issue of increasing size and complexity of government. You can't have both.

Moreover, the Whigs anticipated today's liberal New Deal Democrats in their claim that the educated had the right to special privileges and that the educated ought to rule over the uneducated (p. 30):

"John Locke had written that people who lacked the opportunity to cultivate their higher faculties (such as women and the poor) could not become fully rational and therefore justly held subordinate positions within society...The American Whigs were less explicit than Locke, but they shared his general view that those who had not had the opportunity of education should defer to the leadership of those who had received it..."

Today, the claim of elite privilege by the educated has reached a fever pitch. I doubt that a single Congressman or member of the President's cabinet lacks a college degree. This is so even as the intellectual demands of a college education have dwindled to next to nothing and college graduates today know less than high school graduates of 100 years ago. Compare this with an observation by Herbert Hoover in 1922**:

"That our system has avoided the establishment and domination of class has a significant proof in the present administration in Washington. Of the twelve men comprising the President, Vice-President, and Cabinet, nine have earned their own way in life without economic inheritance, and eight of them started with manual labor."

Andrew Jackson and the Democratic Party violated the "politics of deference" characteristic of early American society through extending the spoils system to all classes (p. 31). This tradition continued through Hoover's time, but the Progressives and their New Deal descendants put in place policies that were less democratic. This repositioning of elitism to focus on education rather than on the traditional land and wealth criteria occurred during and before the Mugwump period. The Mugwumps emphasized the rationalization of civil service, a concept which the Progressives developed into scientific management.

To support business, Whigs supported tariffs and the central bank (p. 32). These stands appealed to wealthy business interests but not to the poor. In order to appeal to the poor, the Whigs emphasized ethnic (specifically, WASP) identity politics, and moral issues that cut across social classes. Part of this involved the evangelical Second Great Awakening as well as appeals to basic morals (p.33):

"The Whig party's electoral campaigns formed part of a cultural struggle to impose on the United States the standards of morality we usually term Victorian. They were standards of self-control and restraint, which dovetailed well with the economic program of the party, for they emphasized thrift, sobriety and public responsibility...They looked upon the Democratic voters as undisciplined."

The Whigs extended this moralism to a belief in central planning and opposition to free markets (p. 34):

"Running through Whig political appeals was the concept of consciously arranged order. This was characteristic of their reliance on government planning rather than the invisible forces of the marketplace. It was characteristic of their reliance on government planning..."

The Whigs emphasized public education, in part through the activities of Horace Mann, a Whig (p. 36): "A believer in uniformity and conscious planning, Mann wanted more centralization in school systems. Democrats, resenting higher taxes and loss of control, frequently opposed Mann and other Whig educational reformers."

In contrast to Democrats, who aimed to end economic privilege through systemic reform such as the abolition of the central bank (p. 37):

"Whig reforms were frequently altruistic efforts to redeem others rather than examples of self-help. Whigs supported Dorothea Dix's campaign for federal aid to mental hospitals; Democrats opposed. Whig prison reformers sought to make prison a place of redemption as well as retribution...Democratic prision reformers, on the other hand, were usually concerned with economy, efficiency and deterrence."

The parallels to Progressivism and the New Deal seem clear.

The Jacksonian Democrats were the ones who oppressed the Indians. For instance the Cherokee case, where the rich lands of the Five Tribes in Georgia led to their expulsion via the famously tragic "trail of tears" was a partisan Democratic policy. "Chief Justice John Marshall delivered the judgment of the United States Supreme Court in Worcester et al. v. Georgia on March 3, 1832. He found Georgia's action unconstitutional: the state had no right to legislate for the Cherokee Nation...But Georgia defied the Court's decision...and went ahead with the expulsion of the Indians. Jackson made it clear that he would never enforce the Court's mandate, and loopholes in federal appellate procedure enabled him to avoid doing so. Meanwhile, he used the Army to facilitate the dispossession of the Indians, not to protect them." Chief Justice Marshall was, of course, a Whig.

In part because of their emphasis on moral development that coincided with their belief in economic development, Whigs emphasized history to a greater extent than Democrats (p. 72). Whigs believed that a generation could bind a later generation, lending acceptability to long term mortgages. Again, we seen a hint of future big government social democracy. For instance (p. 72) the Whig William Henry Seward recommended a series of internal improvements in New York.

Thomas J. DiLorenzo of the Ludwig Von Mises Institute quotes a Edgar Lee Masters's biography of Lincoln that states that the internal improvements of the Whigs involved a considerable degree of corruption:

"Henry Clay was their champion, and he represented 'that political system which doles favors to the strong in order to win and to keep their adherence to the government. His system offered shelter to devious schemes and corrupt enterprises.' They advocated 'a people taxed to make profits for enterprises that cannot stand alone.' The Whig party had 'no platform to announce, because its principles were plunder and nothing else.' These men 'adopted the tricks of the pickpocket who dresses himself like a farmer in order to move through a rural crowd unidentified while he gathers purses and watches.'...Lincoln in the 1830s succeeded in having the legislature allocate $12 million in an absurd make-work scheme to turn Illinois into one vast system of government-subsidized canals and railroad lines...The scheme was a colossal failure as virtually all of the money was stolen or squandered. Lincoln's law partner, William Herndon, called the scheme 'reckless and unwise' and a disaster that 'rolled up a debt so enormous' that it impeded Illinois' economic growth for many years. 'The internal improvement system, the adoption of which Lincoln had played such a prominent part, had collapsed,' Herndon wrote in his biography of Lincoln."

These points contradict some in Howe's book, but Howe does not address the issue of corruption in the actual implementation of the public works projects that Whigs like Lincoln did implement. It is not surprising that corruption was involved, nor is it surprising that ideologically the Whigs might not have addressed this issue despite or rather because of the moralism in their belief system. On the other hand, Howe's evidence does not support DiLorenzo's claim that the Whigs did not have a platform. On some issues, such as treatment of the Indians, Whig opposition to the Mexican War (which was a Jacksonian plicy) and abolition, there was considerably more overlap between the Whigs' position and the libertarian one that DiLorenzo advocates. Nor is it fair to dismiss the mercantilist view as one that intentionally encouraged corruption. The economic development of Britain between 1600 and 1840 was one of the dramatic feats of economic development in the history of the world, and it occurred under a primarily mercantilist ideology. It might have been better to have adopted the ideas of Murray Rothbard in 1600, but it also might have been better if jets and cellular phones had been available to Clay, Biddle and Lincoln.

Like Libertarians, Jacksonian Democrats feared the emergence of a plutocratic elite. However, the Whigs saw a threat "in the perversion of the political process by demagogoues taking advantage of the loss of an independent spirit among the people" (p. 76) and they saw Jackson himself as a demagogue. Like the Federalists, the Whigs emphasized not democracy but balance. In their view (p. 77) "the purpose of government is not to implement popular will but to balance and harmonize interests." Balanced government, of course, is the theme of the Federalist Papers. The Whigs emphasized the national origin of the Constitution. They did not believe that the Constitution originated with the states. The federal government is mixed, neither wholly federal nor wholly consolidated.

(p. 77) "The most salient characteristic of American Whig political thought was that it remained within the tradition of the "commonwealthmen," that remarkable group of English and Scottish writers...Two favorite writers in the tradition were James Harrington and Viscount Bolingbroke."

(p. 78) "That the Whigs who advocated industrialization and economic development should have identified with a political heritage called 'country' may seem at first anomalous. Actually, however, the word 'country' was understood more in opposition to 'court' than in opposition to 'city'. Within the English 'country party' not only landed gentlemen but also bourgeois Protestant Dissenters were prominent...As a group that included both townsmen and commercial farmers, and as inheritors of the religious tradition of English Dissent, the Whigs found the country-party tradition congenial."

p. 90 "Both Whigs and Democrats claimed to be heirs of the Republican Party of Jefferson though both in fact contained some some former Federalists. Ex-Federalists like Daniel Webster became willing to cite Jefferson as an opponent of executive power once they had become Whigs. The closest ideological predecessors of the Whigs seem to have been not the Federalists but the 'moderate' or 'nationalistic' wing of the Republicans. This group combined, as the Whigs did later, a country-party respect for consitutional balance, legal tradition and executive restraint with belief in federally sponsored economic development and government 'for' rather than 'by' the people. The archetypal representative of this brand of Republicanism, and the patron of Whiggery, was James Madison. It is well known (or it should be) that Jefferson disapproved of Jackson's candidacy in 1824; it is even more significant that Madison and Gallatin, who were still alive in 1832, when the issues of the Jacksonian era had been clearly drawn, supported Clay for president that year."

"The Whig defeat in 1844 entailed consequences of imponderable magnitude, leading as it did to war with Mexico and exacerbated sectional antagonism. War was traditionally an evil in country-party ideology, dreaded not only for its cost in blood and money but because it provided an occasion for executive aggrandizement. President Polk's devious and provocative conduct, both before and afterthe beginning of hostilities, provided plenty of confirmation for such fears" (p. 92)

Howe provides fascinating biographies of two Whig entrepreneurs: Nathan Appleton and Henry Carey. Appleton founded various textile mills, including most famously an early joint stock company called the Merrimack Manufacturing Company. Appleton named the company town "Lowell" after a deceased partner. The firm made early forays into human resource management on a dramatic scale:

"The company built homes for the households of its male supervisory employees and boardinghouses for its unamrried female operatives; it supplied the town with a school, a hospital and a library, whose resources made possible the magazine the employees put out, the famous Lowell Offering. It was by no means sufficient for the proprietors to provide what they thought were wholesome working and living conditions at Lowell. They desired to preserve the morals of the people there to be gathered. With this in mind, they built or subsidized eight churces, exercised strict supervision over the workers' private lives and founded a savings bank...Lowell Massachusetts represented social innovation as much as technological innovation. In its original conception, it was to be not only a company town but also an experimental utopia...Lowell illustrates the Whig desire to remake the world...most of the workers were isolated from their families and lived regimented lives of hard work, chastity and diligent uplift...the workers would be women...By hiring women the Merrimack Manufacutring Company could pay lower wages than British industry was paying men..."

(p. 104) "In reply to Democratic charges that corporations were conspiratorial and elitist, Whig defenders of corporations (mixed or private) insisted that they conferred great benefit on savers of modest means by allowing them to participate with the rich in the profits of incorporated business. This was why John Quincy Adams could speak of the 'truly republican institution of joint stock companies.'"

Appleton and his associates founded a private banking system based in Boston. As a result, New England was not dependent on the bank of the United States for a uniform circulating medium. "Member banks in many New England towns would desposit sufficient funds to guarantee their notes at the Suffolk Bank in Boston. In consideration for the use of their money, the Suffolk Bank would redeem the notes of the out-of-town banks at par instead of discounting them. Thus a uniform circulating medium and banking reserve requirements were maintained within the region..." (p. 106).

Henry Carey (p. 109) "identified himself with what might be called the commercial wing of Jeffersonian Republicanism, advocating internal improvements, a protective tariff, a national bank, and reconciliation with the Federalists--in short, the Madisonian Platform." Carey was a moral philosopher and economist (p. 111) "who believed America would be a better place to live if it could industrialize." He believed that "genuine full employment was both the means to economic progress and, for Carey, the end of economic progress. Carey was a feminist and argued that economic development held out considerable promise to women (p. 112). He believed in a mixed economy, capitalism combined with government intervention (remember, this was the 1830s--the idea that a mixed economy was "progressive" was a claim of the 1900's-1930s, 70-100 years after Carey). "Government policy should add...what is today called social overhead--a transportation network and an educational system. To keep the economy expanding, the burden of taxation should not be oppressive, but in the United States in Carey's time there was little danger of this. Carey laid the most stress on a plentiful money supply and a protective tariff to prevent this money from being drained off...Taken together, trhese policies would secure investment capital, increase productivity and raise wages..."

"Carey looked to technology to solve the differences between capital and labor" (P. 113). Carey's philosophy had Christian and moral overtones (p. 114). He believed in progress and opposed Malthus and the Manchester school. He advocated a culture of progress (by which he meant economic as opposed to political progress).

Whigs may have been the first advocates of suburbanization. "Whiggery was an outlook more appropriate to villagers or townsmen than to either frontiersmen or city dwellers....in many parts of the country where the Whig party was strongest it was asociated with a longing to recreate the early New England town settlement." (p. 116). Whig candidates generally outpolled Democrats in the cities (p. 117). "The Whig desire to preserve rural values within an urban context eventually led to important developments in urban park and cemetary landscape architecture, culminating after the Civil War in the genius of Frederick Law Olmstead". Olmstead was a Mugwump associate of EL Godkin.

Le Corbusier is generally recognized as the ideological forerunner of Robert Moses, but Moses seems to bear some things in common with the Whigs, specifically, the notion of the need to introduce country-like super-blocks would seem to echo Olmstead's concept of a park within a city (although when Olmstead designed Central Park it was on the northern end of the city). Moses would seem to have fulfilled the Whiggish tradition, both in terms of being a master public works builder and one who introduced urban America to the suburbs through highway building and superblocks.

Carey opposed trade, viewing it as parasitic and exploitative. He viewed the Irish potato famine as indicative of the problems that trade can cause (p. 118) "The same Carey who praised the small-to-medium-scale capitalism of the town deplored the large-scale capitalism of the metropolis. A trading economy corrupted its own society...Within cities a submerged 'proletariat' appeared...The trading classes lived by appropriation of wealth created by others." The Whig ideology had an anti-capitalist flavor at times, which parallels Progressivism seven decades later. Carey believed that the evils of trade could be overcome with a protective tariff. Protectionism led to "a diversified economy" which would "provide a healthy human environemnt for varied talents." A diversified economy secured people's independence against intimidation. (p. 122) "The great triumph of Carey's life came with the passage of the Morrill Tariff of 1862, commencing a century of American protectionism that would last until the Kennedy round of economic conferences. Yet instead of a decentralized 'middle zone' of opportunity and morality, economic consolidation and further urbanization characterized the high tariff era. The idea that protection was only a transitional phase for infant industries was ignored." This brings us back to the Rothbard/Radosh thesis. Were the Whigs merely fools to advocate tariffs to encourage "a diversified economy" instead of big business, or were they merely front men for big business interests?

Henry Clay

"Henry Clay believed in stability and order" (p. 123). (p. 139) "The Bank issue brought into sharp focus the conflict between the two views of the nation's destiny: Clay's vision of economic development planned centrally by a capitalist elite and the Democratic vision of a land of equal opportunity. Even after the Bank's charter finally expired in 1836, banking and currency remained the subject of bitterest partisan debate." (p. 146) "The conjunction of commerce with Christianity was typical of the Whig version of imperialism". Clay adopted the ideas of Henry Carey. He (p. 137) advocated revenue sharing or distribution of federal money to the states. His American System "was predicated on the basis of a harmony of interests" 9P. 138). The Whigs argued for class harmony and mutuality of interests.

Lyman Beecher

Lyman Beecher represented the evangelical dimension of the Whigs. "The tradition of Edwardsean eschatology had been transmitted to Beecher via Timothy Dwight, Edwards's grandson, who became president of Yale during Beecher's undergraduate years. The continuity of evangelical thought remained unbroken during the time of the Whig party; the providential interpretation of history that one finds in Edwards' accounts of the Reformation or the Glorious Revolution appears in the writings of Whigs as late as the 1840s...Like Edwards--and John Quincy Adams--Beecher believed in postmillennialism, the doctrine that the Second Coming will occur at the end of the thousand years of peace...The Second Coming was not far off...One last big effort would do it--or rather two: the establishment of foreign missions to complete the conversion of the world and the moral renovation of American society to give Christ a beachhead for His return." (p. 152)

p. 152-3: the one hopeful source that the Whigs had was postmillenial theology. Their other sources were the classical writers and some economists who were pessimistic. The secular authors the Whigs read "espoused a limited view of the possibilities for human achievement...The evangelical movement supplied Whiggery with a conception of progress that was the collective form of redemption: like the individual, society as a whole was capable of improvement through conscious effort. Nineteenth century evangelicism, even more than eighteenth century evangelicism, demanded the moral regeneration of society, not simply of the individuals within it. Again, there are hints of Progressivism.

p. 154 "When Lyman Beecher declared that 'the stated policy of heaven is to raise the world from its degraded condition' he had in mind not only its spiritual but also its intellectual and material condition..."

p. 156 "In his 'Lectures on Political Atheism'...Beecher begins by arguing that Christianity is the ally of social progress and liberty...Biblical Christianity, that is Protestantism, promotes schools, morality, economic enterprise and relative social equality..."

The Whigs' ideology was institutionalist and evolutionary, as was that of Progressives like John R. Commons and John Dewey. The Democrats saw institutions as threatening liberty. (p. 182) "Whigs, however felt that institutions provided the structures that made freedom meaningful. Institutions could evolve to cope with changing circumstances; they could serve as intermediaries for redemption, as the benevolent societies did. Whig institutionalism was by no means incompatible with antislavery...European conservatives in the nineteenth century sometimes found that progressive legislation suited their purposes, as Bismarck and Disraeli well illustrate. Lord John Russell put their policy nicely: 'There is nothing so conservative as progress.' This attitude--that a measure of progress is desirable to forestall more drastic upheavals--was certainly not unknown among the American Whigs...'True conservatism,' a party spokesman affirmed, operates not by indiscriminate resistance to change, but the intelligent and seasonable combination of Order and Improvement."

(p. 182) "The economic, social, cultural and moral proram of the Whigs can be characterized in a broad sense as that of a modernizing elite, a bourgeois elite that was open to the talents of an upwardly mobile Lincoln or Greeeley...the modernizing of social organization during this time was pioneered to a great extent by paternalists...(Jackson) and his Democratic Party were primarily defending a society of independent yeoman and artisans, who were threatened by the kind of modernization the Whigs envisaged...As exemplars of Whigs who were deliberate modernizers, Horace Greeley and William Henry Seward serve well."

I disagree with Howe there. Although the Whigs claimed to advocate modernization, the most important modernizing steps occurred outside of the "American System" of Clay and Lincoln. These included the inventions of the late nineteenth century which occurred despite government not because of it. Because historians tend to emphasize institutions, philosophers, ideologues and political structures they fail to see the spontaneous change that occurs because of the Jacksonian impulse. This institutionalist bias in history results in mistaken and destructive policy conclusions that are drawn from failure to grasp the role of markets. Getting back to Howe:

(p. 187) "Greeley favored workers' cooperatives, supported the ten-hour day, and joined the printers' union; yet anything that smacked of class conflict was abhorrent to him. He advocated collective bargaining but felt that it should lead to binding arbitration rather than strikes. Since capital and labor did not seem to Greeley to have opposing interests, arbitration commended itself to him as peaceful, rational and just.

"Social reform did not, for Greeley, necessarily mean opposition to the interests or wishes of capitalists. He supported limited liability and the Whig Bankruptcy Act of 1841, admired the Lowell textile mills, and endorsed industrialization in general...Greeley belonged to a generation that could think of business itself as a moral cause." (p. 188)

"It makes it easier to understand Greeley if we note his remarkable similarity to the 'progressives' of the early twentieth century. Like them, he wanted to rationalize the existing social order and make it more humane. Through the Tribune he advocated such protprogressive casues as a national presidential primary, an income tax, the abolition of capital punishment, and the direct election of United States Senators...Almost alone among American newspapers, the Tribune gave thorough coverage and serious attention to the women's rights movement...Like most Whigs, Greeley retained a strong sense of the moral qualities of rural and small town life, even while favoring industrialization" (p. 195).

William H. Seward was a Whig who supported subsidies to business. Like Warren G. Harding, who supported subsidies to the merchant marine 80 years later, "He endorsed subsidies for the Collins Steamship Company to help it compete against the British Cunard Line...Seward's interest in American commercial activity in the Pacific was not without prcedent among the Whigs. Daniel Webster, when he was secretary of state, extended the scope of the Monroe Doctrine to include the Hawaiian Islands.

The Whigs combined an interest in "improvements" with a fundamental conservatism, and they emphasized "protecting property, maintaining social order, and preserving a distinct cultural heritage." Whigs and pro-bank Democrats were called "conservatives" in the 1830s, a usage that does not seem altogether different from the way the term is used today. "As a party, the Whigs wanted conservatism and progress to blend their harmonious action" (p. 210). Daniel Webster, one of the best-remembered Whigs, "has aptly been called a broker-state politician who thought of government policy in terms of adjusting the claims of propertied interests to government favors...In his mind, social organization legitimated encouraging economic modernization through special favors to property."

Again it is a serious mistake to confuse policies that encourage modernization with modernization itself. The abolition of the central bank may have caused more modernsization than the conscious policies of the Whigs. Conscious policies may be destructive if our minds are not capable of grasping the complexities of market phenomena, a contribution of Friedrich A. Hayek and Ludwig von Mises in the 1920s and 1930s.

Abraham Lincoln was especially attracted to internal improvements. "Of all items in the Whig program, internal improvements held the greatest appeal for the young Lincoln.He shared the typical Whig aspiration for humanity to triumph over its physical environment. His first political platform, announcing his unsuccessful candidacy for the legislature in 1832, stressed the need for internal improvements, adi to education, and easy credit in promoting the development of the West...Lincoln was also an orthodox Whig on the crucial tariff and banking issues...In the 1830s and 1840s Lincoln consistently defended both state and national banking. To him, the assault on the Bank of the United States was part of a general breakdown of respect for property and morality that was also manifesting itself in lynch law...Lincoln was still arguing for the constitutionality of a national bank as a congressman in 1848 and even raised the issue several times in his great debates with Douglas a decade later."

"Believing that only those who paid taxes should vote, he opposed universal manhood suffrage. In an aggressively male society, he advocated votes for women."

Quoted, p. 266, from Robert Kelley "Ideology and Political Culture from Jefferson to Nixon", American Historical Review, 82, June 1977, 545.

Lincoln was a big supporter of Henry Clay. When the Republicans replaced the Whigs, the new party system "revealed a recombination of the cultural elements that had made up the old one. Douglas Democrats had come to endorse economic development, while Republicans now endorsed the westward movement. On strictly economic issues, there was little difference between them save for the tariff." (p. 289)

Lincoln synthesized elements of Jacksonian political thought with Whiggery. "Lincoln took over what was best in Jacksonian Democracy, the commitment to the rights of the common man." Lincoln reasserted the importance of the Declaration of Independence and "the proposition that all men are created equal" became a positive goal for political action" (p. 291).



*William Appleman William, The Contours of American History. Chicago: Quadrangle Paperbacks, 1966, p. 38.

**Herbert Hoover, American Individualism. New York: Doubleday, Page and Co., 1922, p. 21.