FDR: The Real Record vs Revisionism

Franklin Delano Roosevelt has been getting slammed by both conservatives and libertarians as representing “big government” meddling with private enterprise. If he used to receive acclaim for rescuing the American economy from the Great Depression, now the current rightwing historical view is he made the depression worse than it would have been otherwise, that is, if the “free market” were left alone to pull the United States out of the abyss.

Jim Powell, a senior fellow with the Cato Institute writes typical misleading information on FDR:

In recent decades, however, many economists have tried to determine whether New Deal policies contributed to recovery or prolonged the depression. The most troubling issue has been the persistence of high unemployment throughout the New Deal period. From 1934 to 1940, the median annual unemployment rate was 17.2 percent. At no point during the 1930s did unemployment go below 14 percent. Even in 1941, amidst the military buildup for World War II, 9.9 percent of American workers were unemployed. Living standards remained depressed until after the war.

source: http://historynewsnetwork.org/article/3800

The actual record of FDR’s administration on unemployment shows that unemployment in 1933 when he took office was 25% and had been reduced to 10% by 1941 before the U.S. had taken action in World War II (the first military response after the Pearl Harbor Attack on Dec. 7, 1941 was in Jan. 1942). By 1945 unemployment was 4% and had been 1% in 1944. The cliché repeated ad nauseam on conservative news media outlets is that World War II ended The Great Depression, not FDR’s New Deal policies. The fact is that The New Deal reduced unemployment by 60%, from 25% to 10%. World War II’s contributions to employment took this 10% and reduced it to 4%. New Deal: 15 point reduction; World War II, a 6 point reduction in unemployment.

One thing you never hear from rightwing free-market revisionists is how the New Deal grew the economy. In the pre-war years, 1933 to 1941, the GDP (Gross Domestic Product) more than doubled, the actual figure being 110.6%. The average annual GDP growth rate before World War II was a staggering 10.99%. To say that the economy did not improve until World War II is a flagrant revisionist lie, a lie important to the ideology that detests government intervention in the economy.

 

How the 1% Divides and Conquers the 99% with Culture Wars

Most of us will acknowledge that tyrants of some sort exert power over the lives of the masses, or non-wealthy people. The big partisan difference is the nature of these tyrants. Conservatives blame “liberal elites” or “big government” as the evildoers. They claim that business people are the victims of these evildoers, who are the elitist snobs in “big government”. The conservative version of reality has a sharp divide between big government and business. Business is good when allowed to govern itself and within the free market. Government is bad and makes up rules to interfere with business.

The possibility that people from big business may enter government and make laws and regulations favorable to their interests and proft-maximization is left out of the picture. Maybe the problem is big business is running big government and the so-called “free market” is a distorted market advantageous to these big businesses whose leaders infiltrate big government.

The question I, as a liberal, ask is: Whom does government serve? Both conservatives and liberals may agree that common folks are not being represented in government. If government is viewed as some megalithic inherently dysfunctional system that automatically taints its participants, then the “solution” is consider government as the enemy and therefore put an “outsider” in it.

A fundamental misunderstanding of recent American history, of the major impact of big government programs, of policies now commonly condemned as “socialist”, allows the conservative narrative to prevail and guide people’s decisions in the voting booth. The unparalleled economic American economic growth from 1933 to 1973, saw a sevenfold increase in GDP, with an average annual GDP increase of 4.88%. From 1973 to 2016, economic growth was considerably slower, as the socialist components were trimmed away and replaced with trickle-down policies of lower taxes for the rich and slashing of social programs along with those dreaded “regulations”. In these 43 years of reduced socialism the GDP only tripled and the average annual GDP growth was 2.77%. Furthermore, the high growth rate from FDR to Nixon was more equally shared among all income levels. From 1973 on, workers’ average compensations have leveled off whereas most economic growth falls into the pockets of the rich.

The reality of big government’s success encountered the turmoil of the 1960’s countercultural movement and the recession of 1973 to 1975. By the mid 1970’s, the malaise had set in with a crooked president who had to resign in disgrace, with the ongoing Vietnam War, and “change”, the perpetual populist slogan, meant at that time the embrace of the free market and getting government off your back. Even before Reagan, Carter had numerous trilateral commission members in his cabinet, and deregulated trucking and the airlines. Also, during Carter’s term, the big tax revolt began with Howard Jarvis.

The Introvert’s Clumsy Improv Persona

Intro:

The persona, or social mask, by its very nature is the essence of extraversion. Introverts live an in extraverted world and are often clumsy in their efforts to make a persona. The extravert lives and breathes as their persona. I explore the differences in personas between extraverts and introverts.

Introverts are forced to adapt to extraverted society

Introverts are defined in terms of how they fail to be extravert – “quiet”, “to themselves”. Interestingly enough, introverts know extraverts better than extraverts know introverts. While we are quiet, we are immersed in an extravert-dominant world, and forced to adapt to it or suffer the consequences, being marginalized, excluded from the cool peer groups, whether we seek such isolation or suffer from it due to not behaving like extraverts. The choice for us is find a role in friendships or social situations or being isolated to the point of psychopathology, not knowing how to fit in. Therefore, I describe our attempts to fit in as a “clumsy improv persona”. Given a situation with specific people, we improvise a means of interacting with these people. With certain people a social mask is created and this may differ considerably from the true personality of the introvert, thus rendering it “clumsy”.

The Extravert’s Well-Crafted Persona

With extraverts, a single persona is the norm. The energy of connecting to people can be focused and organized into a coherent whole. People in the extravert’s social circle “know” him or her by virtue of this personality. Through trial and error, the extravert hones and crafts his/her persona, which engulfs the entire psyche. Due to frequent practice the extravert can perfect a single persona, his or her personality known to his/her family, friends, and acquaintances.

Introverts’ Personas

In the specific situations of creating friendships, seeking peer-group participation, and general social interaction, introverts must adapt to the behaviors and personalities of specific people. Typically an extravert will assume a dominant role, thereby forcing the introvert please him or her, that is, attempt to please him or her. Often the social context is games or sports. The extraverts outside are playing baseball, football, riding bikes, etc and the introvert must participate in whatever activity is taking place. I recall being indoors as a 6 year old, hearing kids play outside, riding their bikes. I understood at that time, learning to ride my bike was mandatory and therefore under that stimulus, I learned to ride my bike. In early education settings, playtimes, recess, introverts figure out what they enjoy, make their friendships, figure out which roles they play. The leaders of games are the extraverts and their specific personalities are what we adapt to.

My first coherent persona, albeit clumsy, was class clown. With regularity I could elicit laughter and/or approval by saying or doing funny things. This persona ebbed and flowed depending on the kids surrounding me at each grade level. Some grades were quiet periods, like 3rd grade, when I dealt with the embarrassment of getting glasses. By the 5th grade I reached the peak level of class clown, to a pathological degree, being disruptive and extreme, being known as mischievous, having mental health issues. In the 6th grade, this dysfunction veered into delinquency, breaking windows, being kicked out of the library, being told by my teacher I was “no good” as she looked at my lengthy file of misbehaviors. This was in spite of my good grades, manifest intellectual capacity. My social ineptitude constituted a different existential realm from my private life of reading encyclopedias, almanacs, wanting to learn about the world, master the world in my own odd intellectual way.

Perhaps more typical, is a quiet pleasant conforming persona, not making waves. By creating drama with my clumsy persona, my outward life undermined any successes of my inner life. The world’s rules are made by extraverts. If you do not obey these rules, you suffer, regardless of your private intellectual attainments. I was always self-educated and only intermittently got good grades. In later years, I very gradually matured into an adult with a more social skills, with a more “normal” persona, though I always kept my improvisational wit and humor.

The Introvert’s Advantage

My advantage, being a very inquisitive, curious introvert, is that I know extraverts, their world, better than they know my inner world. We are all forced to adapt to the outer world, crafted by extraverts. By contrast, there is no incentive for extraverts to adapt to the inner worlds of introverts, except in the rare cases of intimate friendships and relationships. Such adaptations may not be necessary, given that the introvert may totally play the subservient role, pleasing the extravert while keeping the private realm private. The real life option is venturing into various public realms with other people, society at large, while having the safe harbor of one’s own private realm of interests and hobbies. To the extent that the introvert chooses to make this private realm public, he/she becomes more extraverted, develops and enriches his/her personality. To me, the option of these two worlds is better than being stuck in the outer world, with “the pressure to perform”. We introverts feel fatigue from too much social interaction, while understanding a certain degree is mandatory. We feel drained by social or interpersonal demands whereas extraverts are energized by this. With social media being prevalent, we introverts can selectively interact, then withdraw, as we see fit. I see this as an advantage. But I am obviously biased.

Tinted Window Drivers

Why do so many people tint their car windows? What are the specific reasons one needs to hide behind these tinted windows? I can make assumptions, which I will state later. Now, I will state my observations:

At four way stops, I notice how often tinted window drivers sneak through, don’t come to a complete stop and skip their turn. You can’t make eye contact with them or communicate non-verbally to them. That’s the whole point, no? They want to sneak through without any unpleasurable feedback from another driver who does not sneak through 4-way stops.

Many times as a pedestrian, I find myself waiting to cross the street, and there’s a tinted window driver a few feet away, not using a turn signal, and I don’t know which way they are going. This is important to know because they will gladly turn their car on a collision course towards me, knowing they are far safer than I. Thus, by necessity, I have developed quick reflexes, not only because of tinted window drivers, but because people text while they drive and sometimes come close to hitting me. I once had a guy make contact with my extended left hand as he made a left turn while I was crossing the street. The dude might kill somebody less attentive than me.

Just the other day, a tinted window driver turned right into my path, just a few feet away in a congested parking lot, forcing me to put on the brakes. Of course, he or she avoided my menacing stare of disapproval. He or she got away with this rudeness. That’s the whole point of tinting your windows, no?

Now for my guesses: 1) They want to smoke a blunt; 2) Concealing sex of some sort, oral, self-pleasuring, or something else; 3) They eat their boogers; 4) They smoke crack, meth, etc.; 5) They are on parole, ex cons, wanted for actual crimes; 6) They are paranoid for various reasons, have emotional issues for which hiding behind tinted car windows is therapy.

As a non-tinted window driver, I feel the necessity to make eye to eye contact with other humans at times, be they other drivers or pedestrians. This improves safety and is part of common courtesy. Sometimes people need to make face-to-face contact even when in their cars. I feel no need to hide from people in my car even though I might want to at times.

Sports as Religion

Every year, the hype surrounding the Super Bowl increases. Hyping this major sports event is not enough. The half-time show must get hyped. Super Bowl commercials must get hyped and be assembled into TV shows prior to the Super Bowl. This is evidence of sports as religion. In the basketball realm, we’ve had the biggest sports celebrity of all time, Michael Jordan and now we have “King James”, LeBron James, who just topped Kareem Abdul Jabbar for the all-time scoring record. Prior to Michael Jordan, the all-time sports hero or god, was Babe Ruth, although Tiger Woods had a few years of mega-fame before tumbling down to earth in 2009 with his car crash and extramarital affairs and not being able to reach Jack Nicklaus’s 18 majors championships.

Yes, I have participated in the worship of sports heroes, whether it’s Patrick “Houdini” Mahomes, or the great Kentucky basketball teams who won national championships in 1978, 1996, 1998, and 2012. I recall Queen’s “We are the Champions” being used as Kentucky’s theme song in 1978.

Bread and circuses were the formula of ancient Rome’s success. Rome actually grew lots of wheat in North Africa, made this into bread for the peasants and provided gladiator games to entertain all its citizens. Filling huge colosseums with fans worked 2000 years ago and continues to work now. Football, like gladiator games, is capable of fatal injuries and shortening lifespans for many NFL players whose bodies and brains are damaged by the violent sport.

When I watch sports commentators, I see their rabid devotion to various superstars, cherry-picked stats supporting their case. Commentators engage in heated debates, finding the flaws of their opponent’s superstar. A prime example is when Skip Bayless advocates Michael Jordan as GOAT over LeBron James when debating Shannon Sharpe. I would offer up alternative GOATS: Wilt Chamberlain’s career points-per-game average is the same as Jordan’s, 30.1 but Chamberlain’s 22.9 rebounds per game obliterates Jordan’s 6.2. I would say Bill Russell could be the GOAT considering he won 11 NBA titles, including 2 in which HE COACHED HIS TEAM. Russell played 13 seasons, won 11 NBA championships and is seldom mentioned in GOAT conversations. True, he had an iconic coach, Red Auerbach, but he was brilliant enough to be chosen by Auerbach to succeed him as coach. I think Russell deserves more worship, given his leadership skills, his unrivalled championship resume.

Sports (Britain uses the singular term “sport” where Americans say “sports”) is a very tribal phenomenon, where people refer to their favorite team as “we”, even when they are not on the roster. There is some psychotherapeutic effect where self-esteem is boosted by victories or championships. Sports provides great drama along with self-esteem enhancement. Many games are decided by quirky unpredictable plays or “bad” referee calls determining the outcome. The great Tom Brady can lose a Super Bowl, entering it with an undefeated record. All it takes is the miraculous “helmut catch” of David Tyree. Odd things can happen where Eli Manning wins both Super Bowls against Tom Brady. A “David” can beat a “Goliath”. A 1980 U.S. hockey team can beat the Soviet Union in the Olympics, “the miracle on ice”.

I think when people get into debates over religion vs science or religion vs atheism, we should count sports as religion. People engage in various sacraments, like tailgating, painting themselves in the team’s colors, showing insane adoration indicative of religious fervor when attending their team’s games. People descend into barbarism at games, their ids uncensored, hurling beer bottles onto the field, pouring brews upon the opposing team, getting into fights with opposing fans. The circus extends into fans vs fans, not just teams vs teams.

Sports allies itself with another great American tradition, er “religion”, drinking alcohol. I went to many a Kentucky football game, smelling whisky, as many fans snuck flasks of bourbon in their winter coats to booze it up at the game. Of course, beer is the fave sports beverage where friends gather together to drink while watching games. The various sacraments attached to sports are dressing up, boozing it up, attending tailgate parties, gluttony, acting like a lunatic (Dionysian pagan reveler), and identifying with your team in a paganistic fashion. Consider the now taboo Atlanta Braves fans tomahawk chops or that Kansas City Chiefs fans continue to do this. These are religious rites, not just overenthusiastic lunacy.

Yeah, Sports is the American religion.

Inflation BS

To understand the “state of the union”, we need to understand inflation as we await President Biden’s speech tonight.

US energy giant ExxonMobil posted an annual profit of $55.7 billion, the largest ever for any US energy company. This was $10 billion more than its previous high of $45 billion in 2008 and its return on capital was 25 percent. ExxonMobil share prices rose 80 percent last year. Only tech giants Apple and Microsoft have reported higher profits so far. Chevron reported record 2022 profits of $35.5 billion. ConocoPhillips, Marathon Petroleum and other major energy companies are also expected to report record or near record profits. Shell made a record profit of almost $40 billion in 2022, more than double that of the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

When big corporations engage in price gouging, creating record profits, while also adversely inpacting the economy at large, the obvious consequence is higher inflation. To maintain a given profit margin a fossil fuel company mandates a certain price for gasoline. If that price results in profits being doubled, then obviously this is price gouging, profiteering to the detriment of American consumers, except for the oil companies and their major shareholders. As this price gouging is taking place, we the people, get incessant MSM reporting on the “horrors” of inflation. Then we hear about the Fed raising rates, and inflating mortgage and car payments. This amounts to price gouging for the big banks, mortgage lenders. Yes, the non-wealthy sector of the population suffers, but we get BS news on our infotainment media sponsoring such “news”. The most powerful corporations  use the pandemic as an excuse to spike prices, furthering the welfare of the wealthy and beggaring everyone else.

To get to the crux of the matter, our economy is run by the superwealthy in the system of casino capitalism. It is pump and dump. The conventional language is bull and bear markets, where pumping upward is the bull market and dumping causes the bear market. In the 1970’s the stock market was dismal, as this decade was marked by oil shocks and stagflation, and the international gold standard of Bretton Woods was ended by Nixon in 1971 when America’s gold reserves had become insufficient for Europeans wanting to cash in their dollars for gold at $35. By January 1980, the dollar plunged to 1/850 of an ounce of gold (meaning that gold spiked to $850 an ounce on Jan. 21, 1980). Inflation means dollars are worth less. Therefore, Paul Volcker had to crush inflation via his “dollar shock therapy”. The U.S. was faced with the possibility of horrific hyperinflation a la 1923 Weimar Germany. So Volcker “saved the dollar” by raising the fed funds rate to 20% in March 1980. He briefly lowered it in June. When inflation returned, he raised the rate back to 20% in December and kept it above 16% until May 1981. That extreme and prolonged interest rate rise was called the Volcker Shock. It did end inflation while simultaneously causing the 1981-82 recession.

From this point forward we’ve had casino capitalism, a series of bull markets interspersed with periodic recessions or crashes, the worst crash being in 2008, when the subprime mortgage bubble burst. Last year, a correction of 15% occurred, perhaps due to covid supply chain disruptions along with inflation hurting businesses with declining sales (with the obvious exceptions of big oil, big tech, and other price gougers).

Getting back to economic fundamentals: Inflation benefits lenders. The entire economy is based on debt and the biggest players are the big banks on top of the societal/economic power pyramid. The pump and dump scheme means that an alliance of the big banks and corporate vultures find the right time to cash in their portfolios, triggering panic selling by the masses, thus triggering a market correction or a major crash. When stocks plummet the fat cats buy them up at bargain basement prices and start the pump cycle all over again.

In prior eras, before the New Deal and Great Society programs existed to help common folks, there was no real strategy to deal with crashes or “panics” as they were called then. A global depression began in 1873 and lasted over 20 years. Deflation was a catastrophic problem for Americans then. Crop prices plummeted, this reducing purchasing power for rural Americans comprising the bulk of the population. During the Great Depression from the fall of 1930 to the winter of 1933 the Fed reduced the money supply by nearly 30 percent. This was an epic fail. Secretary of Treasury Andrew Mellon advised President Hoover to “liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. Purge the rottenness out of the system. High costs of living and high living will come down… enterprising people will pick up the wrecks from less competent people.” This was emblematic of classic “pump and dump” economics. Ruining the lives of the non-wealthy was simply collateral damage as part of the business cycle. Keynesian “social democratic” policies were not yet tried.  Unemployment peaked at 25% in 1933 (was reduced down to 10% in 1941 before WW2 “saved the economy”) and wages plummeted also, meaning that aggregate demand plummeted. Companies cannot survive when people earn less or earn nothing. Without government intervention there is no method for recovery. Less spending leads to less profits leads to more people laid off and so on. The big lesson learned was Keynesian economics of deficit spending to give people money to buy stuff to boost companies’ profits so they can hire workers, pay higher wages. Of course, World War II skyrocketed aggregate demand and unemployment fell to 2%. But social democratic “big government” policies doubled the GDP from 1933 to 1941. Inflation is part of this restorative scenario. In periods of deflation, plunging wages and plunging profits, we have a true disaster for all involved.

Let’s learn about inflation in its historical context and realize deflation is far worse.

SOURCES:

Price-gouging drives record profits at US energy giants – World Socialist Web Site (wsws.org)

Shell profits double to record $40 billion (msn.com)

Paul Volcker, His Shock, Rule, and a New Bretton-Woods (thebalancemoney.com)

From the 1974-75 Recession to the ‘Volcker Shock’ – A Critique of Crisis Theory (wordpress.com)

Long Depression – Wikipedia

The Great Depression | Federal Reserve History

Were There Any Periods of Major Deflation in U.S. History? (investopedia.com)

Andrew Mellon – Wikipedia

Culture Wars: Trump-Muricans Triggered by the “Woke Mob”

Introduction: Culture Wars are integral for the maintenance of power by the white patriarchal plutocracy, the de facto ruling class of American society. Examples of these include the Willie Horton prison furlough video, used in a political ad,  which got George Bush Sr elected in 1988 after once trailing Michael Dukakis by 17 points in the polls. Rush Limbaugh was the godfather of a-hole culture warriors. He lamentated political correctness, denied global warming, derided tree huggers, and  spewed misogynistic, racist, and homophobic hate fueling the culture wars, amplifying anger in the white male population, thus providing a roadmap for the white male capitalist cabal to maintain and solidify its political power as the U.S. entered the internet and social media eras, where disinformation (bigotry, misogyny, homophobia) could circulate at warp speed.

In the ongoing Dark Age of Retro-Murica, lowlighted by Trump’s presidency, the attempted capitol coup,  and now his bootlickers taking power in the House of Representatives, we have culture wars promoting the values of the White Aristocratic Male Asshole Tyrants, WAMATs, and their female sycophants like Marjorie Taylor Greene (a WFAT) who continue to hold disproportionate political power despite all the gains made by woman, people of color, and the LGBTQ community.

What conservative culture warriors do successfully is trigger rage against various “far left” groups or any aspect of culture that has progressed beyond the Retro-Murica of the 1950’s, populated by white suburbanites, homemaker moms, breadwinner dads in homogenous white neighborhoods with two-car-garage houses and minorities segregated to “ghetto” neighborhoods.  When the Countercultural Revolution of the 1960’s threatened the hegemony of the WAMAT, white male asshole tyranny, Neoliberalism commenced, ushered in by the Lewis Powell memo, a manifesto for the white male aristocracy to crush labor unions and send jobs overseas to boost profits for old white corporate CEO’s and board members. Only recently have women  exceeded 10% as CEO’s of Fortune 500 corporations.

The white supremacist governor of Florida, Ron DeSantis, foaming at the mouth with white rage,  promissed to defund diversity, equity, + inclusion (DEI) programs in all colleges and universities. This is after he already blocked a new AP African American History course. In service to male white supremacy, his goal is to restore white male Euro-American-centric history as evidenced by his rage shared by Trump-Muricans against the “woke mob”.

Anger stewing within the white male patriarchy was revealed when Obama was elected in 2008. Even though his republican predecessor George W. Bush had cratered the global economy just before the election, Obama was burdened with cleaning up Bush’s mess. Fox Noise was outraged by Obama’s “big spending” and facilitated the Tea Party, a special group of  WAMATs who “wanted their country back”, astroturfed by FreedomWorks, Americans for Prosperity and other groups.

Trump gained traction by seeking Muricans angry about Obama being elected, and demanded he provide a “valid” birth certificate. When Obama ridiculed Trump at the 2011 White House Correspondents’ Dinner, the enraged failed business tycoon was motivated to run for president. His “refreshing” off-the-cuff commentary critical of John Cain, Jeb Bush, Marco Rubio, and other establishment republicans endeared him to angry whites wanting “change”. A political sea change was underway, including befuddled whites impaired by cognitive dissonance who switched allegiance from Bernie Sanders to Donald Trump. Many white Americans distrust mild-mannered intellectuals like Obama, and his blackness added to this distrust, so why not go with Trump who speaks like an arrogant 3rd grader? Uncensored inarticulateness was so refreshing to MAGATS (even before this term was invented).

In this new Murican Dark Age, hardcore anti-semitic white nationalists such as Stephen Miller and Richard Spencer jumped on board the Trump Train. Spencer gave a Sieg Heil (Hitler-style) salute at the August 2017 Charlottesville rally. “You will not replace us” was the white paranoid mantra there. White supremacists all came out of the woodwork for Trump and conventional two-party politics was demolished.

Add to this Murican snafu, the disenchantment of many liberals for Hillary Clinton, the rise of Bernie Sanders, and the end result was many Obama voters stayed home, which tilted enough states to Trump for an electoral college vote victory, even though he lost the popular vote by 2.9 million.

In the debacle of the Trump presidency of unprecented falsehoods and ineptitude that amplified the Covid pandemic and brought on the 1/6/21 attempted capitol insurrection, we suffer from this Retro-Murican Dark Age that persists to this day. Whatever influences emanate from the “woke mob”, the fact remains that WAMAPs maintain power via the lingering power of Trump sycophants in elected office, a situation not unlike the Mafia. Fear is the main modality of power in an organized crime structure. Whatever policies a mob lieutenant may at one time espouse must eventually vanish before subordination to that boss, Trump, even those his many crimes are well known and documented, as we await the legal process to come to fruition and put this dimitted despot in jail  where he belongs.

SOURCES:

Ron DeSantis targets diversity programs, tenured professors in “unhinged”​ attack on higher ed | Salon.com

DeSantis’ rejection of AP African American history shows his true self (usatoday.com) 

Final Proof The Tea Party Was Founded As A Bogus AstroTurf Movement | HuffPost Latest News

Women CEOs Lead More Than 10% of Fortune 500 Companies For the First Time (yahoo.com)

Health Care for Profit in a Nutshell: Updated

Update 1/30/23: I wrote this blog essay 3/28/12. Much of it remains true and relevant today. One issue is the replacement of Bisphenol A with similar xeno-estrogens. The awareness of sugar’s hazardous effects is much greater today than 11 years ago. “Keto” is a popular label on various foods, nutritional supplements, and diets, and like the Atkins Diet, focusses on minimal carbs and high protein. Legitimate ketogenic diets consist of 70% calories from fat, 20% from protein, and 10% from carbs. I know from experience the difficulty of following this. Still, Americans are hooked on carbs and don’t realize the basic facts of the glycemic index. I suggest Robert Lustig’s writings and videos for a primer on how to eat and what foods to avoid -> Professor Robert Lustig speaking at Emery Pharma January 13, 2023 – YouTube

As the Supreme Court gets ready to nix “Obamacare” (or at least some components of it) as unconstitutional, I want to lay out in simple terms the basic system of American “health care” for profit. It starts with the indulgent instant-gratification lifestyle of Americans, who eat mass-produced comfort, junk, and fast foods loaded not only with awful things like trans fats and refined carbohydrates such as high fructose corn syrup, but thousands of artificial additives, chemicals that may be detrimental to humans despite classification as “generally recognized as safe”.

The next lifestyle contributor is the digital revolution, being connected to the digital stream, living online, being glued to one’s personal digital device. Sitting in one place for 6 or more hours has been shown to be bad for cardiovascular health. The saddest aspect of this, to me, is seeing a whole generation of fat kids who rarely play outside anymore and in many cases are not required to have physical education. Very sad indeed.

The health care system, truly a misnomer, is shown to be failing, when we have epidemics of obesity, type II diabetes, heart disease, asthma, autism, chronic fatigue syndrome, fibromyalgia, lupus, celiac disease, other auto-immune disorders, etc. The writing has been on the wall for years and people refuse to acknowledge it. The system we have in place is to comfort ourselves with food and pills and a sedentary lifestyle. This is NOT “health care”. The United States lags behind other developed nations in lifespan, infant mortality, and other vital statistics assessing health. The United States also has a government that subordinates itself to the proft-motives of rapacious drug companies whose express goal is not merely to treat symptoms in a superficial manner but also to see that the underlying lifestyle causes remain unaddressed and untreated. For a person to engage in moderation at mealtime does not yield nearly as much profit as does excess followed by one or more pills. For example, Person A eats 2 chili dogs, fries covered with cheese, and a large Coke and takes a bunch of Rolaids afterwards or perhaps, better yet profitwise, a proton pump inhibitor drug to cut off stomach acid. Person B eats one chili dog, not so terrific, but with a green salad and some spring water. He does not get indigestion, but he does not generate nearly as much profits.

Now if the drug companies truly were motivated to provide health care, they would not encourage people to gorge themselves and take drugs that reduce or eliminate stomach acid which is essential for digestion, including the absorption of such minerals as calcium and magnesium, and the stomach acid does kill bacteria. Gorging on crappy food and taking acid blockers is a prescription for disaster because the food rots instead of being digested. As for acid reflux, that is typically caused by a hiatal hernia when overeating is not the cause. A hiatal hernia is easily treated by a chiropractic adjustment, far less profitable than decades of taking acid blockers. Another thing to consider is treatment of overeating with digestive enzymes. These are readily available in pill form and addresss the problem instead of making it worse.

Among the most hazardous practices in the food indulgence industry is the indiscriminant widespread use of antibiotics fed to factory farm animals whose mass production entails the diminution of health for each animal. Add to this abomination the indiscriminant overprescription of antibiotics and maybe we gain some understanding as to why digestive and immune disorders are increasing exponentially in this country.

As for drugs in general, go beyond side effects when examining what they do and how they do it. An antacid impairs digestion. An antibiotic kills essential bacteria required for immune functioning and consider if your doctor ever takes this into account and prescribes a probiotic along with your antibiotic. Bone density drugs, bisphosphonates, work by disrupting the body’s bone recycling process whereby old bone cells are broken down and recycled into new ones. Bone density is not the same thing as strength. Birds possess very strong bones that are not dense. Also consider the incidence of atypical femur fractures and jaw bone death that occur with bisphosphonates. These alarming things occur by virtue of the drugs interfering with the body’s essential homeostatic mechanisms.

Consider cholesterol-reducing drugs, the statins, lipitor, crestor, pravachol, etc. As http://www.3dchem.com/molecules.asp?ID=92 notes:

“Cholesterol is not a life-threatening toxin, but a medium-sized molecule that is really a building block for important parts of the body. In particular it is an essential component of cell membranes. Cholesterol also stabilizes a cell against temperature changes. It is a major part of the membranes of the nervous system, the brain, the spinal cord and the peripheral nerves. In particular it is incorporated into the myelin sheath that insulates the nerves from the surrounding tissue. Cholesterol is also the forerunner of important hormones such as the female sex hormone, oestradiol, and the male sex hormone, testosterone, and of vitamin D, which we need in order to utilize calcium and form bone. Nearly all body tissues are capable of making cholesterol, but the liver and intestines make the most. We require cholesterol to produce the bile we need to digest the fats in our food, and the name itself comes from the Greek words for ‘bile solids’.”

So consider what a drug actually does. Ask your doctor how a certain drug “cures” a given ailment. Then do your own research and ask more questions.

Now let’s get to food contamination. Remember the outcry against trans/hydrogenated fats? Well, it seems people have forgotten about these or, at least, the food companies have. More and more snack and dessert items contain (partially) hydrogenated fats than a few years ago. The label can list 0 grams trans fats if a serving has 0.5 gm per serving or less.

Most canned foods contain Bisphenol A, despite all the negative publicity that this xenoestrogen has received.

Wikipedia http://en.wikipedia.org/wiki/Bisphenol_A notes:

Bisphenol A is an endocrine disruptor, which can mimic the body’s own hormones and may lead to negative health effects. BPA is controversial because it exerts weak, but detectable, hormone-like properties, raising concerns about its presence in consumer products and foods contained in such products. Starting in 2008, several governments questioned its safety, prompting some retailers to withdraw polycarbonate products. A 2010 report from the United States Food and Drug Administration (FDA) raised further concerns regarding exposure of fetuses, infants, and young children.[1] In September 2010, Canada became the first country to declare BPA a toxic substance.[2][3] In the European Union and Canada, BPA use is banned in baby bottles.[4]

Okay, we have explored some unhealthful indulgences and a few drugs. Then there’s fee-for-service profit-maximization.  Treatments are obviously supposed to cure, right? Problem is that a truly effective cure does not make much profit. Eating healthy and exercising are profit reducers. Gluttony and sedentary-web-surfing maximize profits, because they clog arteries and make heart attacks, and thereby make surgeries possible. Arterial stents have been shown to be ineffective. And surgeries do save lives, to be sure, but that’s after lives have been already been ruined by our profit-maximization system comprised of instant-gratification and the resulting maladies requiring hospitalization, surgery, chemo, radiation, along with super expensive pills.

The field of epigenetics has shown that heart disease and cancer can be prevented, that disease-causing genes can be turned off by the proper lifestyle. The fact remains that a healthy lifestyle is not profitable for Big Pharma, hospitals, and surgeons. So the temptation to impose the doom of “bad genes” on people is too much. Billions of dollars are made by keeping you on lipitor or any drug for life. Also consider, how often people with a 10% chance of 5-year-survival get the chemo and radiation to “hope against hope” for a miracle. Consider why the “effectiveness” of cancer treatments is 5-year survival rate. Hmmm, maybe because relapse is a fairly common occurence. The “cure” is not really a cure.

Just consider the recurring theme I have exposed in American “health care”. How healthy is this nation compared to what it should be? Compare us to Europe, Japan, Canada, civilized nations where health care is considered in terms of morality and not profit. Don’t take what I say for granted. Ask questions. do your own research.

The First “Libertarian” Economists: The Neoclassical School (Menger, Walras, Jevons)

This blog was originally posted on 3/13/2012 –

Lest there be any confusion, I write this as a “left-winger” who believes in “social democracy”,  that is, a strong role of the government in striving for an economy maximizing the growth and freedom potential of ALL citizens regardless of the hierachical  forces of wealth, status, position, ethnicity, gender, etc. that synergize to promote advancement of some select few people to the detriment of the majority of the people. The fundamental economic talking points of conservatives pertaining to economics were originated in what is commonly called the “Austrian” school of economics. These talking points include the condemnation of the government’s involvement in the economy and center upon the idealization of  “the market”, namely that system of allocating resources based on fundamental economic factors, such as supply, demand, and price,  without government influence or regulations or other external sources of interference. These factors, so it turns out, serve to create a falsified idealized self-regulating society of individuals where the facts of  the powerful unconscious, irrational, and exploitative forces dictate outcomes such as depressions, genocidal wars, massive oil spills, famines, pandemics, and other disasters dismissed within a social darwinistic framework and ethics of the “law of the jungle”.  In lay terms, we are accustomed to hearing in the speeches of republican politicians the evils of “big government”, “getting the government off our backs”, etc. This populism has been very successful in evading the crucial and essential questions as to the ultimate source of tyranny, the transnational corporate behemoths wielding irresistible influence, if not coercion, behind in the scenes where the de facto deciders write our laws and dictate the actions and policies of our elected officials. This anti-government populism emanates from and legitimizes itself via “Austrian economics” and, therefore, I find it essential to initiate an exploration as to what this type of economics entails.

The term, “Austrian economist” usually refers to either Ludwig von Mises or Friedrich Hayek, those revered by Ron Paul and many other followers of the libertarian school of thought. But my essay here is on the original “Austrians”, the men whose intellectual contributions were essential to the idealization of the “free market” and the denigration of the government in terms of maximizing human freedom and potential for wealth and material success.

Of course Adam Smith is the father of “free market” or classical economics, even though he had a place for government participation in the market while extolling the basic mechanisms of the market in his 1776 magnum opus, The Wealth of Nations. And David Ricardo followed in 1817 with his On the Principles of Political Economy and Taxation in which he explained free trade, diminishing marginal returns, and how printing excess money caused inflation, a crucial justification or rationale for the gold standard still bellowed forth today by Ron Paul and his supporters in condemnation of the fiat-currency-producing Federal Reserve.

THE FIRST THREE “LIBERTARIAN” ECONOMISTS: CARL MENGER, WILLIAM STANLEY JEVONS, AND LEON WALRAS

Now only one of the three men I’ll be discussing, Carl Menger (1840-1921), was an Austrian, because he studied and published in Vienna, though he was born in Poland. William Stanley Jevons (1835-1882) was English and (Marie-Esprit-) Leon Walras (1834-1910) was Swiss.  These three men are accredited with what is called The Marginal Revolution whereby the labor theory of value was rendered obsolete by the newly proclaimed law of diminishing marginal utility, also referred to as the marginal or neoclassical theory of value. In plain English this means both the utility and value of each additional unit of a commodity, that is, the marginal utility, possesses less value to the consumer. The Concise Encyclopedia of Economics http://www.econlib.org/library/Enc/bios/Jevons.html explains: ” When you are thirsty, for example, you get great utility from a glass of water. Once your thirst is quenched, the second and third glasses are less and less appealing. Feeling waterlogged, you will eventually refuse water altogether. “Value,” said Jevons, “depends entirely upon utility.” Further details of this are laid forth here:

http://en.wikipedia.org/wiki/Marginal_utility#The_Marginal_Revolution

Wikipedia gives us synopses of these 3 “Marginal Revolutionaries”:

William Stanley Jevons first proposed the theory in “A General Mathematical Theory of Political Economy” (PDF), a paper presented in 1862 and published in 1863, followed by a series of works culminating in his book The Theory of Political Economy in 1871 that established his reputation as a leading political economist and logician of the time. Jevons’ conception of utility was in the utilitarian tradition of Jeremy Bentham and of John Stuart Mill, but he differed from his classical predecessors in emphasizing that “value depends entirely upon utility”, in particular, on “final utility upon which the theory of Economics will be found to turn.”He later qualified this in deriving the result that in a model of exchange equilibrium, price ratios would be proportional to not only to ratios of “final degrees of utility” but costs of production.

Carl Menger presented the theory in Grundsätze der Volkswirtschaftslehre (translated as Principles of Economics) in 1871. Menger’s presentation is peculiarly notable on two points. First, he took special pains to explain why individuals should be expected to rank possible uses and then to use marginal utility to decide amongst trade-offs. (For this reason, Menger and his followers are sometimes called “the Psychological School”, though they are more frequently known as “the Austrian School” or as “the Vienna School”.) Second, while his illustrative examples present utility as quantified, his essential assumptions do not.[11] (Menger in fact crossed-out the numerical tables in his own copy of the published Grundsätze.[40]) Menger also developed the law of diminishing marginal utility.[14] Menger’s work found a significant and appreciative audience.

Marie-Esprit-Léon Walras introduced the theory in Éléments d’économie politique pure, the first part of which was published in 1874 in a relatively mathematical exposition. Walras’s work found relatively few readers at the time but was recognized and incorporated two decades later in the work of Pareto and Barone.

Of the 3 Marginal Revolutionaries, Menger comes off as the best as per the Concise Encyclopedia of Economics assessment of him:

“Unlike Jevons, Menger did not believe that goods provide “utils,” or units of utility. Rather, he wrote, goods are valuable because they serve various uses whose importance differs. For example, the first pails of water are used to satisfy the most important uses, and successive pails are used for less and less important purposes.

Menger used this insight to resolve the diamond-water paradox that had baffled Adam Smith (see marginalism). He also used it to refute the labor theory of value. Goods acquire their value, he showed, not because of the amount of labor used in producing them, but because of their ability to satisfy people’s wants. Indeed, Menger turned the labor theory of value on its head. If the value of goods is determined by the importance of the wants they satisfy, then the value of labor and other inputs of production (he called them “goods of a higher order”) derive from their ability to produce these goods. Mainstream economists still accept this theory, which they call the theory of “derived demand.””

On the other hand, Carl Menger, has some fascinating quirks, like pioneering an “empirical” theory that was not really empirical, though well-intended, I am sure. The source for this is a libertarian one, http://mises.org/daily/2799

” He (Menger)  tried to trace the causes of the properties and laws under scrutiny back to the simplest facts. His purpose was to demonstrate that the properties and laws of economic phenomena result from these empirically ascertainable “elements of the human economy” such as individual human needs, individual human knowledge, ownership and acquisition of individual quantities of goods, time, and individual error.[11] Menger’s great achievement in Principles of Economics consisted in identifying these elements for analysis and explaining how they cause more-complex market phenomena such as prices. He called this the “empirical method,” emphasizing that it was the same method that worked so well in the natural sciences.[12]”

“To the present reader, this label might be confusing, since it is not at all the experimental method of the modern empirical sciences. Menger did not use abstract models to posit falsifiable hypotheses that are then tested by experience. Instead, Menger’s was an analytical method that began with the smallest empirical phenomena and proceeded logically from there.”

A nice little bio on Menger: http://www.econlib.org/library/Enc/bios/Menger.html

Now the key selling point for Leon Walras seems to be his devising the General Equilibrium Theory essential for purporting the harmony of markets in being able to balance or regulate themselves. In contrast to other neoclassical (Austrian) economists, Walras was heavily into math to support his ideas. The Concise Encyclopedia of Economics notes:

http://www.econlib.org/library/Enc/bios/Walras.html

“Before Walras, economists had made little attempt to show how a whole economy with many goods fits together and reaches an equilibrium. Walras’s goal was to do this. He did not succeed, but he took some major first steps. First, he built a system of simultaneous equations to describe his hypothetical economy, a tremendous task, and then showed that because the number of equations equaled the number of unknowns, the system could be solved to give the equilibrium prices and quantities of commodities. The demonstration that price and quantity were uniquely determined for each commodity is considered one of Walras’s greatest contributions to economic science.

But Walras was aware that the mere fact that such a system of equations could be solved mathematically for an equilibrium did not mean that in the real world it would ever reach that equilibrium. So Walras’s second major step was to simulate an artificial market process that would get the system to equilibrium, a process he called “tâtonnement” (French for “groping”). Tâtonnement was a trial-and-error process in which a price was called out and people in the market said how much they were willing to demand or supply at that price. If there was an excess of supply over demand, then the price would be lowered so that less would be supplied and more would be demanded. Thus would the prices “grope” toward equilibrium. To keep constant the equilibrium toward which prices were groping, Walras assumed—highly unrealistically—that no actual exchanges were made until equilibrium was reached. If, for example, people who wanted to buy ketchup wanted more than sellers were willing to sell, then they would buy none at all. This assumption limits the usefulness of Walras’s simulated process as an aid to understanding how real markets work.”

The oddity for the second great marginalist thinker, Leon Walras, was that AT ONE TIME HE SEEMS TO BE A COMMUNIST!!! I kid you not! “Walras also inherited his father’s interest in social reform. Much like the Fabians, Walras called for the nationalization of land, believing that land’s value would always increase and that rents from that land would be sufficient to support the nation without taxes.” source: http://en.wikipedia.org/wiki/L%C3%A9on_Walras If by “nationalize” we mean that the state assumes ownership of the land then Walras did in fact espouse, at least one time in his life, communist propensities.

As for William Stanley Jevons, he is noteworthy for his Jevons Paradox. It started with his book The Coal Question which “covered a breadth of concepts on energy depletion that have recently been revisited by writers covering the subject of peak oil. For example, Jevons explained that improving energy efficiency typically reduced energy costs and thereby increased rather than decreased energy use, an effect now known as the Jevons paradoxThe Coal Question remains a paradigmatic study of resource depletion theory. Jevons’s son, H. Stanley Jevons, published an 800-page follow-up study in 1915 in which the difficulties of estimating recoverable reserves of a theoretically finite resource are discussed in detail.

http://en.wikipedia.org/wiki/William_Stanley_Jevons

The Concise Encyclopedia of Economics notes ” he wrote that Britain’s industrial vitality depended on coal and, therefore, would decline as that resource was exhausted. As coal reserves ran out, he wrote, the price of coal would rise. This would make it feasible for producers to extract coal from poorer or deeper seams. He also argued that America would rise to become an industrial superpower. Although his forecast was right for both Britain and America, and he was right about the incentive to mine more costly seams, he was almost surely wrong that the main factor was the cost of coal. Jevons failed to appreciate the fact that as the price of an energy source rises, entrepreneurs have a strong incentive to invent, develop, and produce alternate sources. In particular, he did not anticipate oil or natural gas. Also, he did not take account of the incentive, as the price of coal rose, to use it more efficiently or to develop technology that brought down the cost of discovering and mining (see natural resources).”

As I wind this essay up, it is important to note that other important “Austrians” or neoclassical economists have not been mentioned yet. Not just Ludwig von Mises or Friedrich Hayek, but others like Friedrich von Wieser (1851-1926), who notably was born in Vienna, or the British Alfred Marshall (1842-1924), and Eugen  Böhm-Bawerk (1851-1914).

This essay is to be taken merely as a point of entry into deeper study or at least a means of clarifying some basic points about what “Austrian Economics” means both conceptually and historically.

Fascism and Bolshevism

Fascism was born as the bitter enemy of socialism and communism in Mussolini’s Italy. His new movement was comprised of interventionists who advocated Italy’s entry into World War I. Syndicalist subversives of the radical left joined Mussolini as early as 1915 in the clamor for war. But the leaders of Italian Socialism maligned him and his followers as Marxist renegades. The orthodox Marxists envisioning global unity of the proletariat opposed the fascist interventionists-nationalists. This deviation from Marxist orthodoxy rendered these nationalists as bourgeois right-wingers. Those staying true to the internationalist-proletariat orthodoxy are designated as left-wing. The final insult for Italian Marxists was the fascists March on Rome, Oct. 28, 1922 followed by the King declaring Mussolini prime minister the next day.

The Marxist unity of the world’s workers was affirmed at the Congress of 2nd International in Basil in November 1912. The Congress solemnly declared: “workers consider a crime to shoot each other for the increase of profits of capitalists, dynasties’ ambitions or for the glory of secret diplomacy agreements.” This unanimously adopted manifesto called the proletariat to gather all efforts to avert a bloody war, but it failed.  As World War I began, they defended the imperialist   policies of their own bourgeois governments. In the early days of WWI, August 1914,  Mussolini claimed the Second International of socialists had failed in the face of the crisis. European Marxists had opted to defend their respective bourgeois nations against the bourgeois of other nations. The socialists of the International were bereft of a uniform and specifically doctrinal response. By and large, each nation’s socialist political organization tended to support its respective government. None of the major socialist organizations chose to martyr their own country on the altar of Marxist principle. Lenin attempted to contrive his own version of Marxism, touting Russia’s nationalism as true, because they created a revolutionary class.  The Russian proletariat, he propagandized, could take national pride in the fact that they, not the Germans or the French, would lead the international revolution. Just as Marx decided the revolutionary baton had passed over time from the French and British to German workers, Lenin decided that revolutionary responsibilities in the current imperialist era had transferred from the German to Russian workers. Lenin insisted that the imminent world revolution required for its success the most advanced theory, the one supplied by the party he led, the Bolsheviks. Lenin argued that all socialist parties of Europe had shamelessly betrayed the revolution

The ideological basis of the totalitarian Soviet Union called “Marxism-Leninism” was actually a fascist ideology that began only two months after Mussolini’s fascist Italy. On Oct. 29, 1922, the Italian king appointed Mussolini prime minister. The Soviet Union was created on Dec. 29, 1922.

By 1914 Mussolini had risen to the leadership of the Italian Socialist Party, which would be designated as left-wing, though he was the leader of its radical intransigent wing, perhaps properly labeled “right”. Lenin had followed the intraparty struggle on the Italian peninsula and welcomed Mussolini’s movement to its leadership role. Mussolinism shared many of the doctrinal properties of Leninism. The Italian leader favored Lenin’s elitism in his work, “What is to be Done”. Mussolini and Lenin both  felt that a minority of intransigent revolutionaries bore the special responsibility of informing the masses of  their historic obligations and inspiring them to their discharge. World War I was midwife to the emergence of both Leninism and Fascism. Mussolini read Marx but disagreed with the claim capitalism had exhausted its potential. He also took issue with Marx’s bourgeoisie and proletariat classes, found it presumptious to understand the psychology of entire classes. The heterogenous nature of these classes renders stereotypical definitions problematic. Individual members of any given class have their own unique set of motives. Social revolution grows out of an act of faith, not a mental scheme or simple calculation. Marxism as theory was neither necessary nor sufficient to make social and political revolution.

The socialist movement had been historically antimilitarist and internationalist and therefore opposed workers serving as cannon fodder for the bourgeois governments at war, this was especially true since the Triple Alliance comprised two empires while the Triple Entente gathered France and Britain into an alliance with Russia. Karl Marx’s Communist Manifesto had stated that “the working class has no country” and exclaimed  “Proletarians of all countries unite.” Massive majorities voted in favor of resolutions for the Second International to call upon the international working class to resist war if it were declared.

Nevertheless, within hours of the declarations of war almost all the socialist parties of the combatant states announced their support for the war.  The only exceptions were the socialist parties of the Balkans  and the British Labour Party. To Vladimir Lenin’s  surprise, even the Social Democratic Party of Germany  voted in favor of war credits. The assassination of French Socialist Jean Jaurès on 31 July 1914 killed the last hope of peace by removing one of the few leaders who possessed enough influence on the international socialist movement to prevent it from segmenting itself along national lines and supporting governments of national unity.

Socialist parties in neutral countries mostly supported neutrality rather than total opposition to the war. On the other hand, during the 1915 Zimmerwald Conference Lenin organized opposition to the imperialist war into a movement that became known as the Zimmerwald Left and published the pamphlet Socialism and War in which he called all socialists who collaborated with their national governments social chauvinists, i.e. socialists in word, but chauvinists in deed. The Zimmerwald Left produced no practical advice for how to initiate socialist revolt.

The International divided into a revolutionary left and a reformist right, with a center group wavering between those poles. Lenin condemned much of the center as social pacifists for several reasons, including their voting for war credits despite opposing the war. Lenin’s term social pacifist aimed in particular at Ramsay MacDonald, leader of the Independent Labour Party in Britain, who opposed the war on grounds of pacificism, but did not actively resist it.

Discredited by its passivity towards world events, the Second International dissolved in the middle of the war in 1916. In 1917, Lenin published the April Theses which openly supported a revolutionary defeatism, i.e. the Bolsheviks  pronounced themselves in favor of the defeat of Russia which would permit them to move directly to the stage of a revolutionary insurrection.

Lenin touted the Russians’ nationalism as true, because they created a revolutionary class. The Russian proletariat could take national pride in the fact that they, and not the Germans or the French, would lead the international revolution. Just as Marx had decided that the revolutionary baton had passed, in the course of time, from French and British to German workers, Lenin decided that in the imperialist epoch, revolutionary responsibilities had been transferred from the German to Russian workers. Lenin insisted the that the imminent world revolution required for its success the most advanced theory to be supplied by Bolshevism alone.

The Third or Communist International  (Comintern), emerged from the three-way split in the socialist Second International over the issue of World War I.  A majority of socialist parties, comprising the International’s “right” wing, chose to support the war efforts of their respective national governments against enemies that they saw as far more hostile to socialist aims. The “centre” faction of the International decried the nationalism of the right and sought the reunification of the Second International under the banner of world peace. The “left” group, led by Vladimir Lenin, rejected both nationalism and pacifism, urging instead a socialist drive to transform the war of nations into a transnational class war. In 1915 Lenin proposed the creation of a new International to promote “civil war, not civil peace” through propaganda directed at soldiers and workers. Two years later Lenin led the Bolshevik seizure of power in Russia and in 1919 he called the first congress of the Comintern, in Moscow, specifically to undermine ongoing centrist efforts to revive the Second International. Only 19 delegations and a few non-Russian communists who happened to be in Moscow attended this first congress; but the second, meeting in Moscow in 1920, was attended by delegates from 37 countries. There Lenin established the Twenty-one Points, the conditions of admission to the Communist International. These prerequisites for Comintern membership required all parties to model their structure on disciplined  lines in conformity with the Soviet pattern and to expel moderate socialists and pacifists.

The traditional binary classification of political ideology has Marxism on the left and fascism on the right. This is not by accident of course and due to historical events that created a consensus narrative that persists to this day, although a considerable number of scholars don’t accept this and have their interpretations, some of whom I studied for this blog post. Marxism did not measure up to its assertions and predictions about capitalism, even while Marx was alive, as other socialist movements, such as the socialist democratic party in Germany, the implementation of the first welfare state by Otto von Bismarck, along with other reformist movements, like Fabianism in Britain, came along to give more rights to workers and deal with tyranny of industrial capitalists. Along with the growth of capitalism, there was a simultaneous growth of nationalism in the late 1800’s which nourished fascist ideology until it came to political fruition under the regimes of Mussolini, Hitler, Franco, and others.

The early ideological seeds of fascism as an ideology were widespread in the 19th century long before the actual 20th century  political manifestations of Mussolini, Hitler, and Franco occurred. I discuss some of these proto-fascist thinkers in an introductory blog post on fascism back in April 2018–http://bohemiantangents.com/?p=778.

Simply put, fascism is the political movement that grew out of the influence of nationalism, prominent in the 19th century into the 20th, and as a reaction to and/or revision of Marxist thought. The German anthropologist and proto-fascist Ludwig Woltmann theorized that technological innovation, the basis of historical materialism, was the result of human creativity and talent which was differentially distributed among extant human races. By combining Darwinism with Marxism Woltmann transformed Marx’s economic determinism into bio-economic. He saw evidence that the races displayed unmistakable differences in heritable intellectual and creative gifts. He noted Marx’s letters to Engels: “The Spaniards are indeed degenerate” along with harsher condemnations of Mexicans. Engels opined that the American expansion into the West “served the interests of civilization” since the “lazy Mexicans… did not know what to do with it”. The energetic Yankees, on the other hand, opened the entire region to trade and industry. Engels viewed the highly developed industrial nations as destined to bind “tiny crippled powerless nations together in a great Empire”. Marx and Engels believed there were peoples who never have a history of their own and were destined to be forced into the first stages of civilization through a foreign yoke, due to lacking vitality. Marx said the Chinese were afflicted with hereditary stupidity. Engels deemed the Slavs of eastern and southeastern Europe as ethnic trash. These opinions of some races superior to others were consistent with the Social Darwinism of that era, which was integral to nationalism, particularly that of imperialist nations whose colonies had “inferior” races worthy of “civilizing”.

Woltmann believed Nordics, tall, long-headed, narrow-faced, depigmented Europeans to be humankind’s most creative racial community, the race most responsible for economic and cultural revolution. He undertook “empirical studies” to measure Germanic or Nordic genetic potential to be found among the minorities of France and Renaissance Italy, and correlated that with their respective creativity. In his “anthropological theory of history” he found the Aryan race, Nordic in features and talent, has been responsible for virtually all the world’s cultures. His expanded Aryan reach included India, Persia, Hellas (Greek empire of Alexander the Great), the Italian peninsula, Gaul, as well as northern, eastern, and southeastern Europe. Woltmann’s heterodox Marxism included human and social evolution. The social dynamics of historical materialism were overlayed with the technological inventions of superior races. Though inspired by Marxism, this new revisionism was so altered to be justifiably called Marxist “heresy”. Woltmann claimed that if the secular process of which all Marxists spoke was a function of the intellectual and creative talents of a racial minority of human beings, then the security, sustenance, and fostering of that race became a moral imperative of the highest order.

The concepts of both fascism and communism are subject to much confusion and actually closely related, far more similar than the left-right bipolarity suggests. Throughout the 20th century both fascism and Marxist-Leninist communism were committed to the creation of ” a new revolutionary order”, having nothing to do with “the old rotten, decadent preceding regime”. Fascism, like communism, advocated the achievement of a new revolutionary order, a new society, and, even a new man. Both fascism and Marxist-Leninist systems have demonstrated an abiding distrust of electoral and parliamentary representation. Both required that individuals and groups of individuals to submit to the authority of the hegemonic state, and that this would be the hierarchical non-representative state, in pursuit of a great national destiny. All the attributes of totalitarianism had antecedents in Lenin’s Russia: an official, all-embracing ideology, a single party headed by a leader, and dominating the state; police terror, the ruling party’s control of the means of communication and the armed forces, as well as central command of the economy.

The Marxist unity of the world’s workers was affirmed at the Congress of 2nd International in Basil in November 1912. The Congress solemnly declared: “workers consider a crime to shoot each other for the increase of profits of capitalists, dynasties’ ambitions or for the glory of secret diplomacy agreements.” This unanimously adopted manifesto called the proletariat to gather all efforts to avert a bloody war, but it failed.  As World War I began, they defended the imperialist   policies of their own bourgeois governments. In the early days of WWI, August 1914,  Mussolini claimed the Second International of socialists had failed in the face of the crisis. European Marxists had opted to defend their respective bourgeois nations against the bourgeois of other nations. The socialists of the International were bereft of a uniform and specifically doctrinal response. By and large, each nation’s socialist political organization tended to support its respective government. None of the major socialist organizations chose to martyr their own country on the altar of Marxist principle.

The Italian Socialist Party had self-described Marxists who became the first official fascists. By 1914 Mussolini had risen to the leadership of the Italian Socialist Party, but he was also the leader of its radical intransigent wing. Lenin had followed the intraparty struggle on the Italian peninsula and welcomed Mussolini’s movement to its leadership role. Mussolinism shared many of the doctrinal properties of Leninism as Mussolini favored Lenin’s elitism in “What is to be done?”. Inspired by Sorel and the syndicalists, Mussolini, like Lenin, spoke candidly of the “struggles within human society” as “being and have always been a struggle of minorities”. Mussolini and Lenin shared the view that a minority of intransigent revolutionaries bore the special responsibility of informing the masses of their historic obligations and inspiring them to their discharge. The First World War was midwife to the loathsome appearance of both Leninism and Fascism.

Mussolini held that the Marxists of the late 19th century, having read Das Kapital, conceived of capitalism as having exhausted its potential, while other socialists believed industrial capitalism completed its historic trajectory. He felt it had not yet exhausted its potential transformations. Reality, so to speak, was far more subtle than any doctrine, including Marx’s. Mussolini took issue with Marx’s bourgeosie and proletariat classes, found it presumptuous to to understand the psychology of entire classes. The heterogeneous nature of these classes renders stereotypical definitions problematic and individual members of any given class have their own unique set of motives. Social revolution grows out of an act of faith, not a mental scheme or simple calculation. Marxism as theory was neither necessary nor sufficient to make social and political revolution.

On March 23, 1919, Mussolini founded the first of a planned network of Fasci Italiani di Combattimento, Italian Combat Leagues in Milan, Italy, to keep the spirit of the Great War’s trenches alive. The fledgling movement’s mission was to give rise to a militant vanguard dedicated to the total transformation of Italy in the spirit of extreme self-sacrificial patriotism of veterans, especially the army’s elite assault troops, the Arditi, who had survived the horrific conditions of trench warfare in the mountains long enough to witness the Entente victory. Within weeks the new force in Italian politics was being called ‘Fascism‘, the connotations of the Roman symbol of state authority, the Fasces, came later, and by 1922, a new generic term, ‘fascism’, entered the political lexicon. Mussolini’s successful bid for state power was the October 22, 1922 March on Rome.

Left-wing Italian intellectuals saw the Fascists as a repressive reactionary movement, including violence against the working-class movement mass strikes, factory occupations, and establishment of factory councils. In April 1920, Turin metal-workers at Fiat plants went on strike demanding recognition for their factory councils, a demand that the Italian Socialist Party (PSI) and General Confederation of Labor (CGL) did not support. The revolutionary socialist movement peaked in August-September 1920 when armed metal workers in Milan and Turin occupied their factories in response to a lockout by their employers. About 500,000 workers occupied factories in socialist revolt. The PSI and CGL were passive, but the industrial crisis forced employers and the fascist movement to react, as there were massive layoffs and wage cuts. The “Red Two Years” (Biennio Roso) were the conflict the revolutionary left and militant nationalists. The left-right polarity arose as the leftist Bolshevik sympathizers battled the right-wing Fascists. At the specific time in history, Bolsheviks were known as leftist internationalists vs. the militant right-wing fascist nationalists. In 1922, Italian socialist Giovanni Zibordi published Critica socialista del fascismo which described the Fascist assault on the left as a counter-revolution of the big bourgeoisie against the “red revolution”, where the middle classes revolted against the socialist (Marxist) regime. Zibordi defined fascism reductively as “a socio-political movement of the big bourgeoisie”.  The Soviet interpretation, which was stated in the 1922 and 1924 international meetings, the Cominterns, declared that the West’s entire liberal democratic system was devoted to maintaining capitalism and de facto in collusion with fascism because Mussolini acted as a democratic head of a liberal parliamentary state between 1922 and 1925 before becoming dictator of Fascist Italy.

Lenin attempted to contrive his own version of Marxism, known as Marxism-Leninism, touting Russia’s nationalism as true, because they created a revolutionary class.  The Russian proletariat, he propagandized, could take national pride in the fact that they, not the Germans or the French, would lead the international revolution. Just as Marx decided the revolutionary baton had passed over time from the French and British to German workers, Lenin decided that revolutionary responsibilities in the current imperialist era had transferred from the German to Russian workers. Lenin insisted that the imminent world revolution required for its success the most advanced theory, the one supplied by the party he led, the Bolsheviks. Lenin argued that all socialist parties of Europe had shamelessly betrayed the revolution.

After Vladimir Lenin died, so did the notion of inciting revolutions outside of the Soviet Union. His successor, Josef Stalin, created “socialism in one country”, essentially a Bolshevik variant of fascism, in which he ceased attacks on the bourgeoisie and the bureaucracy. The bureaucratic bourgeoisie was transferred as a strategic functional elite into the “socialist system” with wages sometimes 20 twenty times greater than that of simple working man. Notions of referendum and recall were totally abandoned; a parody on universal suffrage (voting rights) was introduced with all effective control passing not only out of the hands of the people, but out of the hands of the Communist Party itself into the “exceptional leader” and “universal genius”, Josef Stalin. Labor unions and associations of peasants ceased to advocate for working class interests and became agencies of Communist Party tyrannical control. Once Trotsky was defeated, the socialism-in-one-country employed nationalist strategies in mobilizing the masses. By 1934, the Red Army was no longer swearing allegiance to the “international proletariat”, but to the “Socialist Fatherland”. At the same time, the Soviet Union was regularly called “Our Great Fatherland”, as the kinship to Hitler’s fascist Deutsches Vaterland became manifest. By 1936 references to the Soviet Union population were to the “working people” rather than to the Marxist classes of proletariat and bourgeoisie, signaling an effort by the Communist Party to produce a single-minded nationalist community, also in harmony with fascist regimes elsewhere. Faithfulness to the Soviet Fatherland became a core Stalinist virtue in his domineering state machinery, hierarchically organized and bureaucratically controlled, analogous to that of a fascist state.

By the mid 1930’s it was clear that both the Soviet and Fascist states exercised political and juridicial dominion over all classes, strata, and organized interests. Internationalism was the “moral” pretext for economic imperialism. Either that, or it served as the last refuge of timid souls. Fascists perceived very little substance in the internationalism of Marxism-Leninism. There was absolutely no evidence that proletarian masses identified themselves with any expression of internationalism. World War I demonstrated that human beings identified anticipatory judgments advanced years before by the Italian National Syndicalists and the heretical Marxists among the Fascists. The so-called proletarian revolution as manifested in the incipient Soviet Union bore little or no resemblance to the works of traditional Marxism. The nonregime Marxists in Europe, including those “defecting” into Fascism, had been correct about the Soviet Union’s state and party-dominant system being totally unrecognizable to Marx or Engels. Stalinism had no traces of the left-wing frenetic anti-nationalism, anti-statism, and anti-militarism of the early days when socialism was the mortal enemy of right-wing nationalism. Stalinism had dialectically thrown overboard the principles in whose name the Bolshevik revolution had been undertaken. Marxist-Leninist principles had been transformed into their opposites, that is to say, the ideas contained within Mussolini’s Fascism. Fascist theoreticians noted that the Soviet society’s organization with the inculcation of military obedience, self-sacrifice and heroism, totalitarian regulation of public life, party-dominant hierarchical stratification, all under the dominance of the inerrant state, corresponded in form to the requirements of Fascist doctrine.

In sum, reformist socialism succeeded where revolutionary socialism preached by Marx did not. A democratic welfare state was created in Bismarck’s Germany without a revolution while the “Communist” revolution in Russia implemented by the Bolshevik coup in Oct. 1917 resulted in an ultimately fascist totalitarian state. Marxism had degraded by that time into the rhetoric of tyrants seeking public support for totalitarian rule. The role of aiding workers and peasants having democratic forms of governance existed in stark contrast to the totalitarian regimes called “socialist” or “communist”.

SOURCES:

Fascists by Michael Mann

Fascism, Totalitarianism, and Political Religion by Emilio Gentile

https://slate.com/news-and-politics/2017/01/how-italian-fascists-succeeded-in-taking-over-italy.html

https://www.revleft.space/vb/threads/5258-Basel-Manifesto-(1912)-and-the-traitors-communism

https://encyclopedia2.thefreedictionary.com/Basel+Manifesto+of+1912

https://en.wikipedia.org/wiki/Communist_International

https://en.wikipedia.org/wiki/Social_Democratic_Party_of_Germany