Originally published: 1999
292 pages | Chapter
11
PROPERTY AND FREEDOM
Richard Pipes |
Without property in all its forms there wouldn't be much need of law. As
John Locke observes in The
Second Treatise on Civil Government,
The great chief end, therefore, of men uniting into commonwealths,
and putting themselves under government, is the preservation of
their property.
The existence of property leads to enormous
social and legal complexity; the ability to possess property was established
in pre-history-first by might, later by religious precept, and finally
through civil authority. Of the Ten Commandments, two deal directly with
ownership-"Thou shalt not covet thy neighbor's house" and
"Thou shalt not steal." Neither would be proclaimed if there was
no private right to some "thing" that should not be coveted or
stolen. With the aid of philosophers, lawyers, politicians, academics,
economists of every stripe, and, of course, clerics, humanity has tried to
get its imagination around the concept of property for millennia. Most
attempts failed because individuals sought to define and circumscribe
property in order to make it fit into civil society. Many did not see the
truth: to be viable a civil society must conform to the reality of property.
The contrast between these antithetical approaches became palpable with the
advent of the Enlightenment (c. 1750) and the implosion of property rights
during the French Revolution of 1789.
Property is the basis of virtually all human
interaction. Up to this juncture we have focused on
human individuality and
freedom, and
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how those two aspects of life are defined by means of formal
social organization-mostly connoted as government and law. We have also
investigated the relationship between our economic interests and efforts and
government's ever-present (mostly political) "need" to regulate
such. But essential to fully understanding all of these relationships is a
concomitant cognition of where private property fits into public discourse.
And to understand property's place it is essential to comprehend what
property is and how it came to be, and then how property and politics became
inextricably intertwined.
Richard Pipes explores these steps in Property
and Freedom. In the space of a few hundred pages he cogently and
compellingly explicates the seminal relationship between people, their
possessions, their government, and society as it developed over millennia.
At the same time he philosophically and chronologically addresses the
maturing of human associations and goals that are the core subject matter of
First Principles. Property and Freedom is simply one of the
most valuable tools available to aid in comprehending how modern society
developed and how it functions.
In prehistory, when man was attempting to order his
relationships with his neighbors (in the era when might was giving way to
right), the main issue revolved about who owned what, who had a right to
what, etc. As law developed, the power of the state grew as well-both to
enforce the law and to order society. But at this early point the object of
social organization was to settle the
relations between men. Over time as has been and will be seen the state took
on a life of its own and it began to claim a right to the property of the
citizenry in order to "improve" the lives of all over whom it
ruled. In the modern era the questions of a person's right to his property
are not largely questions to be resolved between citizens but between the
citizen and the state. In other words, while questions of property rights
among men have become mostly settled, the right to property and the right of
disposition or use of an individual's property are contests between people
and their governors. Issues of taxation and regulation of citizen property
are now the main battleground of modern politics. As Lao Tsu (a countryman
and near contemporary of Confucius) observed about government (c. 500 BC):
"The more restrictions and limitations there are [by government], the
more impoverished men will be."
In order to understand both the evolution (some
would say devolution) of property rights and the growth of statist views of
government's purpose, which views denigrate and devalue individual
rights,
it is
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productive to start at the beginning and follow the course of property
and its social meaning and effect as it developed over the centuries.
Early in his book Pipes introduces his readers to
Jean Bodin, Hugo Grotius, and James Harrington, three relatively obscure
philosophers not often acknowledged in twenty-first-century political and
intellectual discussions. Nevertheless, their contributions were crucial to
the development of modern property and political hypotheses. Their theories
evolved out of historical truths that when applied rationally helped
successfully mold ordered social relationships. Because what these men
described worked, their designs were restated in successive generations. The
self-evident value and utility of these arrangements became accepted
doctrine.
Most of the authors of modern political practice
drew from their predecessors as they developed their own theories. The
Hebrew, Greek, Roman, and Christian philosophers (like practicing democrats,
republicans, and parliamentarians throughout modern history) did not bring
forth a complete and comprehensive system of government. Each built on what
had been tried before by modifying, expanding, or discarding the works and
thoughts of previous generations. For example, one cannot read Cicero
without thinking of Socrates or understand Thomas Jefferson without
considering Thomas Hobbes. This is the beauty of the history of
governance-what we have today works as well as it does because it has been
tested from so many angles for so many centuries. John Locke did not create
out of thin air the concept of natural law or property rights, or the
ordered relationship that was necessary between the sovereign and his
subjects. He was well versed in the lessons of history before he ever put
the first pen stroke on foolscap.
The concepts forged by Harrington, Grotius, and
Bodin at the beginning of the Enlightenment (when early thoughts regarding
representative, democratic government were forming) were very, very new.
Pipes gave these philosophers talking parts in his book to acknowledge
governance as an evolving process guided by seemingly small but sometimes
hugely consequential ideas. It is a truism that theories, no matter how well
conceived in the mind, are of little value until tested in the real world.
The hypotheses of these three men were necessarily subjected to the human
condition and the law of unintended consequences once they entered the
marketplace. At that point we began to have an idea of how effective they
would be as tools of governance.
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Beginning in prehistory and continuing for more
than ten thousand years, people grappled with the idea of property-well
before formal religion and organized states began to exert their influence
on a person's relationship to his possessions. Most of that history is
unrecorded but the evolution resulted early in unquestioned personal control
of labor's products. Pipes observes that as civilization developed,
initially by means of tribal formations, later in larger agglomerations of
people, the story of property involved the increasing dominion over the
people's resources by monarchs, oligarchs, dictators, and totalitarian
rulers. Along with the rise to power of these sovereigns (who possessed
widely varying levels of autonomy, authority, and control) there developed
two antithetical circumstances with which these rulers had to deal: first,
they had to raise "money" (in the form of diverse resources) to
fight wars and protect their own possessions and position; second, they had
to contend with the natural law principle that people are always reluctant
to surrender the fruits of their labor to whichever strongman comes along.
These contrary factors compelled the leaders of
myriad cultures to cooperate-negotiate really-slowly and ever grudgingly,
with whatever tribal leaders or feudal aristocracy existed in order to gain
the riches they needed to remain in power. Once the crack was opened so that
the nobility's control over its own property was recognized as a right (not
simply a fact) their leverage grew-because rulers needed economic support to
achieve their ends. Ultimately, of course, the monarchies shrank and then
folded. The nobility (and centuries later, the people) began governing
themselves-through this right to property. The story of this
transition by way of systematic fits and starts over the last two thousand
years is as much the story of property as it is of the right of
self-governance and individual freedom. Property and Freedom, like The
Roots of American Order (Chapter 4), is fundamental to understanding
how we got from history's anarchy to a workable, if imperfect, conception of
civil society.
Jean Bodin, the first of Pipes's relatively unknown
philosophers, lived in the mid-1500s. He established the idea that an
absolute sovereign, though not limited by the actions of his/her subjects,
is constrained by natural law. This concept gave both rights and power to
the people in relation to their property because such was theirs through a
mechanism not grounded in their relationship to the monarch. These
possessions were their natural right.
In the early 1600s Hugo Grotius brought forth an
even more profound change when he classified
personal property as alienable
or
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inalienable. The former encompassed "things which can belong to one
person as well as another:" i.e., tangible possessions. Far more
importantly, however, Grotius postulated that inalienable property includes
all "those things which belong so essentially to one person that they
cannot belong to another, such as a person's life, body, freedom, or
honor." Thus was born the idea that's one's essence cannot be removed
from one's physical being, that that essence, that dignity, is the property
of each individual.
Finally Pipes comes to James Harrington, a
mid-seventeenth-century scholar who was the "first political theorist
to view political power as a by-product of economics, or, more specifically,
of the distribution of property between the state and the populace."
Manifest in Harrington's observations is the need to discuss taxation and
the apportioning of power to determine issues of social control. These
relationships are tersely summarized by Harrington's axiom: "he who
controls the country's wealth controls its politics. . . ." Later, of
course, as the sanctity of the individual and the concept of Grotius's
inalienable rights became established and codified in the English and U.S.
Constitutions, Harrington's equation underwent modification as people
recognized that governance isn't just about
property. However, his innovative premise, namely, that property and its
control are the foundation of politics, is the important point to consider
today.
Around the middle of the seventeenth century,
Grotius's concept of personal rights, something "owned" in an
intangible sense, began to significantly complicate the already contentious
subject of property. As Pipes observes,
[T]he term "property" underwent a metamorphosis, revolutionary in
its implications, by being broadened to mean not only material objects
but everything which the individual had a natural right to claim as his
own . . . his life and freedom.
This conceptual triad of the person, the state, and the physical contents
of each human being's life has been uneasy and unstable for much of the time
since Grotius.
When we think about property we think first of the
obvious-what might be in our pockets or under our feet. But our most
important possessions are our life, our liberty, and our prerogative to do
with each as we wish. The idea that we have a property right in our own
lives was truly an
epiphany, especially after thousands of years of
subjugation
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in the form of institutionalized slavery and law without rights
found in virtually every society. Henceforth, the insistence that a person's
life belonged to him, that neither one's life nor the liberty to act freely
(subject to not interfering with others) could be arbitrarily taken away by
the state, changed relationships between rulers and the ruled. As Pipes
comments, history arrived at the point where there were two sovereigns in
the land: the monarch and the individual. The clash between the two is the
modern history of the development of freedom and property-the essential
elements of an ordered civil society.
Grotius's idea that human beings should be masters
of their persons was an outgrowth of the concept of natural law, a law that
Pipes defines as "rational, unchanging, unchangeable." Natural
law, in other words, is above mankind and its machinations and cannot be
altered by temporal governors. Pipes further notes that considerations
regarding natural law as applied to physical property gave rise to two
opposing opinions around the middle of the eighteenth century: proposition
one: the unequal distribution of property resulting from human differences
in ability, personality, and situation causes human oppression and strife;
proposition two: property is the root of progress because its individual
possession is the source of the alleviation of human suffering. The
acquisition and personal control of property, founded in a quest for
security and satisfaction, allows for a cascade of benefits to all, albeit
in differing proportions. This enables property, because of, not in spite of
its unequal distribution, to be a universal good.
Which judgment is correct? The answer is both. Or,
as any good attorney would respond, "it depends."
Pipes comments that as these two propositions were
forming there arose in France a philosophical movement toward
"rectifying" life's earthly inequities-in other words, wholesale
acceptance of proposition one. This impulse resulted in an obvious conflict
between a person's freedom to control his life and property and the state's
right to control the citizenry and its possessions-for the benefit of
"all." French intellectuals of the mid-eighteenth century, known
as the philosophes, advocated the abolition of private property through the
equal distribution of all
possessions. However, this effort to change human affairs by changing the
basis of political, economic, and interpersonal relations utterly missed the
point-and caused enormous devastation in its wake.
Inequality does not reside in property or its
distribution, for property itself is neutral; it is only
human activity that
creates inequities that can
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be perceived as negative or positive. If one
person accumulates more property than another, a perceived inequality can
come to the fore. The accusation of oppression even arises. The allegation
may persist until one investigates how inequality is defined, how the
accumulation was achieved, and to what use the accumulation will be put, or
what effect it will cause. It isn't the essence of property that causes this
effect, but the essence of human nature, and human inequality, that is at
work. The accumulation of property, or capital, is what allows the economic
multiplier effect to occur. That effect usually results in two quite
positive consequences-employment for an increasing number of people and a
proliferation of products and services, and a rising living standard for all
involved. If the incentive that allows progress is removed, if equal
ownership of property is the goal, if success is taxed heavily, then
progress of any kind is more difficult-and life is as well.
One example encompasses the core of proposition
two: Consider the proportionally greater risks taken, effort expended, or
genius applied by those who obtain more than others-because people want what
is created by those few. Different levels of reward appear more
"fair" when viewed from the perspective of how much went into the
accumulation, and how much the citizenry as a whole benefited, rather than
how much an individual ultimately gathers. In essence, the accumulation
itself is often the result of unequal effort or talent and is not
necessarily an "unfair" result (unless it is contended that the
very differences between individuals are "unfair," even if
natural-a calamitous suggestion, at best). How we reward the inventiveness,
imagination, and risk-taking of those who improve the lives all (whether
through airplanes, art or arithmetic) is not black and white.
There are numerous reasons for beneficial unequal
results. When viewed in the larger context that encompasses all of society
these factors offer a useful and workable clarification of how property is
distributed in a modern setting. These ideas, which explore both human
potential and social "designs" versus individual rights are
investigated in several other chapters in this symposium (Capitalism
and Freedom [Chapter 25], Wealth
and Poverty [Chapter 27] are but two). Fully understanding these
ideas is essential to gaining a comprehension of the larger picture
presented by the existence of property and its sometimes allegedly unequal
or unfair distribution.
When taken to its furthest point, the actual
foundation of inequality is the person, and his or her
ability to earn,
produce, create, etc. The
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intellectual war, fostered by the misunderstanding
or misrepresentation of the causes and often beneficial effects of unequal
results, continues today as it has for centuries. This battle draws its
energy mostly from the emotional reaction to physical differences in
people's lives. Pipes's investigation of the permutations of this conflict
and of the historical perspectives on the two views of the
"problem" of property is comprehensive and more than marginally
useful in today's political environment.
Pipes proceeds from his discussion of essential
concepts (gleaned from both obscure and well-known authors who wrote before
and during the Middle Ages) to address examples of how various political and
economic theories of property have complemented or undermined one another in
an evolutionary development that still continues. He then comments on the
substantive contributions of famous theorists such as Locke, Rousseau, and
Hobbes. Although Pipes clearly wants his readers to understand the breadth of the subject, the period of
time, and the number of places out of which he drew his conclusions, he also
expects readers to realize that political theorizing is never complete. He
makes clear that his observations on the understandings of others are
essentially only a way-station.
Pipes ultimately arrives at a consideration of the
problems and opportunities of property theory in the modern era. Whether
overt and wholesale (as in socialism) or covert and piecemeal (as in state
welfarism) he concludes that equality attained through governmental
redistribution of property is theoretically achievable, but obviously
impractical and contrary to human nature. Communist schemes (an extreme
example of anti-property movements, many of which are yet alive and well in
the developing world) seek to eradicate personality in the belief that human
beings, through sheer will and the guidance of their re-educators, can be
made to dissociate themselves from their individuality.
What one gains in this fashion is (theoretically)
equality of physical possessions; what one loses is the individual's essence
and humanity, for when the psychological dimension of ownership is denied
people change and their relationships to property and to one another also
change on a fundamental level. Of course, none of this discussion even
begins to address what happens to property itself-the destruction of its
value-when the incentive to create it or possess it is abolished.
Ultimately, the effects of modern redistributionist schemes (whether in the
form of the welfare state
or overt socialism, etc.) are the same-
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frustration, eventual anger, and then dissociation. The
redistributionists, as will be seen at several points in this book, want to
redistribute wealth that, using their philosophy and schemes, cannot be
created.
Pipes gives example after example of how much life
is altered when property rights are denied. On the individual level, one
crucial illustration is that the concept of privacy emanates from property.
Privacy entails being able to withdraw to one's own space. But with no right
to property no one can own anything or exclude anyone from any private
space. Thus, in order to have privacy there must be private property.
Pipes observes that the modern state is an
organization that theoretically defends the property and the rights of its
citizens in return for the revenues it collects (taxes). The transition from
the absolute monarch of prehistory to one constrained by the aristocracy to
one eventually subordinate to citizens followed a logical course. In
England, for example, the state became organized around the sovereign. As
noted earlier, the king needed resources to maintain the monarchy and to
wage war and he had to give up some control in order to gain consent to
taxation of those who supported him. He ultimately had to abandon any claim
to absolute power because the people began to value their possessions as
much as they valued the protection of the king. Thus they began to resist
his call for fiscal support.
More to the point, as the citizenry created
property they understood that they could use their resources to protect
themselves without the king; ultimately they found they could protect
themselves from the king as well; the extreme means of protection
from the king, of course, was revolution. It was the people's growing wealth
and the king's increasing dependence on it that compelled the crown to grant
his subjects rights and freedoms in order to get their agreement on imposts.
This is the story of how private wealth came to restrain public authority.
Resolute royal power faced the people's absolute property right in what they
had created; the king blinked and property won. However, as gratifying as
that relationship sounds and irrespective of how many centuries it endured
the story does not end there.
Pipes explains that as the twenty-first century
dawned the power of property had receded. Property itself could no longer
claim easy precedence over government. Pipes refers here not to the
reduction of power of the very wealthy, but of the ordinary citizen-who
should be secure in his smaller venue. This was as remarkable a story as the
one of how property itself became owned rather than just possessed. Pipes
quotes a fellow student of property rights:
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Private property once may have been conceived as a barrier to
government power, but today that barrier is easily overcome . . . .
Under the present law the institution of private property places
scant limitation upon the size and direction of government activities
characteristic of the modern welfare state.
(Richard A. Epstein, Takings, 1985)
This convolution occurred partially because there was so much private
property created by capitalistic enterprise that liberal politicians saw it
as an unlimited resource for doing "good." The harm their efforts
caused-by encouraging a culture of dependency and hastening the erosion of
personal responsibility, accountability, and incentive through the
ever-increasing goods and services government could offer-for
"free"-was either ignored or denied. In the last ninety pages of Property
and Freedom Pipes discusses the progressive wearing away of property
rights over the course of the last fifty years, especially in the United
States.
In his dialogue, Pipes sees us confounded, even
flummoxed, by the encroachments on our freedom evidenced in the growing
obligations placed on the body politic. These constraints require taxpayers
to work longer each year to support the welfare state-a palpable restraint
on the citizen's resources, time, and right to the products of his own
labor. The liberal establishment unflinchingly denies the necessity and
utility of property to the social construct and the protection of such as a
prime premise of governance. It has instead demoted property to a vehicle to
be used to achieve equalitarian goals. Pipes sees organic harm done to
society by the intentional degradation of property. This devaluation occurs
when property is turned into something to which everyone is equally entitled
in some substantial measure, no matter the circumstances. The liberals
insist on the truth of their proposition in spite of more than a millennium
of evidence to the contrary. By means of their inversion of the fundamental
concept of property a public culture of "entitlements" has been
substituted for an obligation of reciprocal duty.
One asks how the derogation of property rights
(therefore personal rights and our personal freedom) has been so easily
achieved. The simple answer is found in political manipulation of the public
by both the ignorant and the feckless. Pretentious accusation by the
"anointed" (those who claim to know better than we do how our
lives should be
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run) was the tool of choice. The public was
informed of how
it had failed in its "duties" to the less fortunate, while the
duties of the less fortunate were ignored or found not to exist at all.
These denunciations were implemented by those whose motives and agenda ran
the gamut from guilt to greed. Their misunderstanding or misrepresentation
of basic economics and their absence of fealty to human dignity were clear,
and in the larger picture simply sad. But, no matter their means, when
combined with the public's gullibility or indolence, these demagogues cowed
an unsuspecting and complacent citizenry into a line of thinking that could
only be changed by massive evidence of failure.
Such was the case with welfare reform in the U.S.
during the 1990s. Forty years and five trillion dollars after its
massive implementation the welfare impulse was found not only to have not
helped those toward whom it was aimed, but to have made matters much worse.
Thus, policy was
revised; welfare became "workfare" and limits were placed on how
long the able-bodied could remain within the system. Making the welfare
impulse rational, such as was achieved in that instance, was hard won. The
effort required fidelity to purpose and facts in the face of deceptive, even
false, opposition accusations of the citizenry's unworthy self-interest in
their own lives; sometimes there were even charges of economic, social,
racial, or cultural discrimination.
Pipes's quotation from U.S. Supreme Court Justice
Louis D. Brandeis best captures how damage is wrought by sometimes
well-intentioned but naive politicians and their self-serving demagogue
compatriots:
Experience should teach us to be most on our guard to protect liberty
when the Government's purposes are beneficent. Men born to freedom
are naturally alert to repel invasion of their liberty by evil-minded
rulers.
The greatest dangers to liberty lurk in the insidious encroachments by
men of zeal, well-meaning but without understanding.
(Olmstead v. United States [1927])
In mid-twentieth-century America, as Pipes points out, men of supposed
good will but "without understanding" did more to destroy freedom
and property in the name of benevolence than had many totalitarian
revolutionaries. When their policies failed the excuse of this cadre of
ideologues was that they meant well, or that not enough had been done, that
even more was needed. As Pipes notes, at least when a totalitarian ruler is
dethroned his regime and rules go with him. Not so
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in a
society of laws-once
the laws are enshrined in the ledger book, no matter that those who enacted
them are defeated electorally, the laws themselves present the utmost
difficulty in their repeal.
The ultimate insult to the body politic, of course,
is that those politicians who follow in the steps of the original
malefactors often believe repeal is not feasible for social (meaning
political) reasons. Thus they simply tweak the system in a futile attempt to
make it work and create an even greater cascade of unintended, and
untenable, consequences. The public is further misled because it believes
these new politicians, in not deconstructing the false state, apparently
support the overall the system and believe it to be viable-even worthy. It
is not. At that point one has to consider Barry Goldwater's campaign pledge
in 1964, "My aim is not to pass laws, but to repeal them," (Chapter
18) regarding the kind of peaceful but intentional revolution that is
needed to effect true change.
Pipes reviews the history of how and why the
American governing impulse changed so dramatically during and subsequent to
the Great Depression of the 1930s. He explains that the expectations of
government did not simply evolve they actually morphed as the scope of
governmental activity grew. By mid-century, concomitant with an
ever-diminishing social role for individual responsibility, the Democrats
had bought into the concept of President Lyndon Johnson's Great Society. The
underlying philosophy of this system was that government was obligated to
care for all who allegedly were not being cared for. However, there were two
political fallacies in these programs: First, there was no proof that people
could not care for themselves-there was only limited evidence that
some had not. Second, not only was nothing asked from those helped at
public expense, it was insisted that nothing was due. It was claimed that
society had done this to its own members thus society would pay the bill.
This was the dawn of political correctness-the
crafting of a social view that people were not responsible for anything that
happened to them; it was someone else's fault, or it was society's fault.
All of these conversations went well beyond accepting the need for a social
safety net; the arguments were much larger than that and much more
political.
Prior to the enactment of the Great Society
programs there had been a window of opportunity to recognize the difference
between a "handout" and a "hand up." This window slowly
closed, primarily for political reasons, during and after the Great
Depression and Franklin Delano Roosevelt's years in the White House. The
concepts of personal
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discipline and responsibility that are the foundations
of self-actualization began a metamorphosis in the 1930s as Roosevelt
grappled with the severe economic effects of the Depression. By the time of
President Johnson's election in 1964 the notions of public obligation were
woven into grand designs. The definitions of both responsibility and
discipline were inverted and used as political weapons against those who
espoused the traditional American value of self-reliance. It had become the public's
responsibility to aid the individual; it was through civic discipline
that those who failed to care for themselves would be cared for. This
politically expedient (thus electorally successful) approach to social
welfarism found its voice in Johnson's new, even more majestic Democrat
agenda.
This philosophy was the culmination of three
decades of political effort that had not reduced the effects of bad economic
policy, which earlier had extended the consequences of the Depression far
beyond what was necessary. This extension of economic malaise through the
1930s had profoundly negative effects on the U.S. economy and psyche for the
following seventy years-and the last of the damage is yet unseen.
Along with many others, Pipes observes that the
Depression itself could have been ended sooner with appropriate government
action; i.e., decreased taxes, free trade, and reduced government spending.
These measures would have encouraged the economy by means of basic
free-market incentives to expand to re-employ the millions who were out of
work. Instead, the times were made worse by exactly the opposite: higher
taxes (the lowest bracket income tax rate more than quintupled between 1931
and 1941); the Hawley-Smoot tariff imposts (which caused retaliatory, deadly
tariffs to be implemented around the world); and massive government
expenditures (primarily by the Public Works Administration which built
thousands of public buildings, dams, bridges that consumed roughly one-half
of the Roosevelt Administration's mid-30s budget and caused it to
balloon from $4.6 billion in 1932 to $8.2 billion in 1936 [including a $4.4
billion deficit in that year alone]) that had little, if any, economic
multiplier effect. By the mid-1930s when their measures did not end the
Depression those in power assumed government simply had not done enough and
they proposed even more intervention. The truth of the matter was that
government had already "done" too much and to do more would
further increase market distortions and undermine any progress toward
regaining economic equilibrium.
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There was an additional, wholly unintended and more
devastating consequence of the actions of President Roosevelt and his Brain
Trust (as his closest advisors were known). When the free-market economies
of the West came close to collapsing-and in the view of the leftists had
collapsed-the contention was made that the theories and predictions of Karl
Marx had been validated. Marx said that capitalism was rotten from within
and that its vices-greed and dominance-would cause it to fail as power
accumulated at the top of the economic pyramid and oppression grew at the
bottom. Ultimately Marx contended that social and political revolution would
become the only logical consequence. As economic matters worsened during the
30s and more and more inappropriate responses were crafted by the
politicians an almost inevitable
conclusion was reached and proselytized as capitalism faltered-that
socialism and communism were the answers to human needs.
Obviously economically and socially the West not
only recovered-through the unfortunate mechanism of the Second World War
that put everyone back to work-its economies flourished in unprecedented
fashion when the war was over. But politically the stage was set for a five
decade Cold War that came close to eliminating civilization. In the U.S. and
other Western countries the economic myopia that prolonged the Depression
invited government centralization after the war (the theory being that the
governors needed ever more control to fix what they'd already broken) and
began to substitute the welfare state to counter (philosophically,
politically, and economically) the free lunch that was being offered by the
communists and socialists in European states. That there was no free lunch,
that such was not economically possible over the long term could not be
disproved by the example of the strident communist governments during this
era because the communists had closed their books and their borders to
ensure hegemony over both information and emigration. The philosophical
recovery of not only free-market capitalism but freedom itself was much
longer in coming because the supposed results socialistic enterprise was to
achieve took fifty years to finally fail. But the foundation for the battle
lay in the policies invented in an earlier era: the more government had
meddled in the 30s the more inept it and the capitalistic system appeared;
and the more succor and apparent validity that was given to the false claims
of the socialists. It was this economically ignorant meddling the prevented
the system from righting itself.
Thus what was so devastating for the West as a
whole was the long-term political effect rather than just the economic
failures of Roosevelt's
176
policies. Socialism and communism could claim their half century in the sun because the contention that their
counterpart-capitalism-was fatally flawed appeared to have merit. It
appeared to have merit because bright, thinking, well-intentioned people
thought they knew what they were doing in the 1930s. And what they were
doing was reducing freedom and attempting to control a mechanism-the free
market-that suffers no master in its infinite convolutions. In its thrashing
about to find political answers to economic problems the Roosevelt
administration's nascent welfare state began the downward
bureaucratic/welfare spiral that is now the main battleground as
twenty-first-century governing and economic verities are yet again tested
and measured by false premises. To be fair, many of those in Congress and
the White House during the decades that followed Roosevelt's term in office
were more than complicitous (again, mostly for political purposes) and just
as ignorant in constructing and enlarging the modern welfare state, so it is
necessary to look at the whole picture in this arena before judging the
actions of those in power in the 1930s and 40s.2
It is unfortunately easy to see how the Roosevelt
era's responses were constructed out of whole political cloth. By the early
1940s when economic recovery was as far from achievement as it had been ten
years earlier Roosevelt was trying ever harder to solve what his
administration had made worse. "Freedom from want," a new and even
more extreme gesture was the phrase that launched his 1941 State of the
Union address. It was a sentiment that ominously found its footing in the
continuing widespread poverty of the Depression. Initially, politically, it
had seemed a not unreasonable claim (considering the climate that had
already been created). That is, as Pipes notes, until the public realized
that the only way to achieve this freedom was at
_________________________
Although scholars have treated President
Roosevelt harshly as a student of economics, it would be unfair to leave
only this impression of
Roosevelt
in the reader’s mind.
Roosevelt
is also considered the finest commander-in-chief the nation has had during
wartime. His strategic
decisions, from his use of U.S. troops in North Africa at the beginning of
World War II in order to divide Hitler’s resources in Europe without
expending human capital in unconscionable numbers, to his resolute support
of the immense efforts to create an atomic bomb at the end, decisions that
often went against his own military’s best judgments, are seen today as
both necessary and masterful. The
political and policy mayhem that was extant during the years Roosevelt was
president—the economy was in shambles, communism’s allure was on the
rise, Hitler in Germany and Tojo in Japan threatened to overrun the free
world—forced him to juggle so many conflicting options that it was
foreordained that both his detractors and his chorus would have many
opportunities for judgment and conclusion.
It is up to the reader to assess
Roosevelt
, but only after understanding all of the circumstances of his
presidency—the complete range of which is not offered within this text.
_____________________________
177
the expense of those who had not relinquished their sense of self-discipline and responsibility,
those who had not embraced "the notion of entitlement in the absence of
contribution or sacrifice." Those who were termed by William Graham
Sumner, the nineteenth-century polymath and philosopher, "the forgotten
men" of political discourse. "The forgotten man…He works, he
votes, generally he prays, but his chief business in life is to pay."
So that there is no misunderstanding about this
situation Pipes clearly demonstrates it was not "the people" who
demanded freedom from want; this was a political fabrication. During the
Depression the citizens of the U.S. were always willing to work. They
felt no sense of society's obligation to support them; they understood it
was their responsibility to support themselves. That was not only our
history, but our culture. They just wanted jobs. Despite this truth the
political atmosphere at that time became such that citizens were told that
the consequences of not being able to work would be remedied by the
government. Thus was born the political (not social) culture of dependency.
What could have eventuated was a return to a free-enterprise economy
but as Pipes points out that was not politically profitable and perhaps not
even economically comprehended.
As Pipes argues, the politically voiced assertion
of a "right" to freedom from want was a supposed "right"
to life's necessities at public expense. It was a "right" to
something that was not one's own. A skeptical public accepted the political
reality and the Rooseveltian handout because for many the times still seemed
desperate. But the public was not convinced of the truth of the concept.
Nevertheless, the camel had his nose under the tent. As elections came and
went the right to "freedom from want" metastasized into calls by
the politically astute (that is, those who sought power for its own sake)
for redistribution of goods and services. This unearned redistribution (the
range of which grew as new politicians were elected and felt the continual
expansion of what government did was the purpose for which they were sent to
Washington) was to be done at public expense, of course. Those doing the
"giving"-the taxpayers-were berated as unsympathetic, or greedy,
or bigots, or worse if they found these programs unwarranted; those on the
receiving end became inured to the "failures of society" and the
redress of those failures in the form of freedom from want and both groups
voted accordingly. As might be expected, the implementation of the welfare
state preempted any thought of what could be done with a hand up rather than
a handout.
178
In Pipes's view the carnage is yet unfinished and
will get worse if the lessons of the Kirks and Hayeks and Meyers and Mises
and Friedmans are not heeded. The only solution is for the citizenry to take
control of the electoral process in toto to insert rationality back
into fiscal opportunities. Changes along these lines were begun in the 1990s
but between political backsliding and the neoconservative electoral
expediency in evidence since the turn of the twenty-first century steps
toward progress have been less than hoped for. What Pipes explicates is that
if we do not take
action in our own defense and in the defense of our children, we will get
the government we deserve.
A final note on these issues: Pipes does not imply
criticism of a social safety net as he reviews the sequence of events
America experienced during and since the Depression. He only offers reproach
of state welfare that goes beyond need and lands directly in politics. He
proposes that governmental involvement applied rationally (not emotionally
or politically) would be workable if its provisions were tied to concomitant
obligations. These obligations include the responsibility to take care of
oneself to the extent possible, to better oneself as opportunity arises, to
offer work for what one receives if one is able, and to not rely on
state-sponsored beneficence beyond basic need. But, as Pipes observes, the
liberals' care-for-all approach has operated to extinguish awareness of both
obligations and opportunities with regard to those being helped. This was
the result of a false political assumption: that every person who lived in
poverty was there not through any action of his own and was utterly
unable to help himself. In other words, the condition of poverty was
completely a societal failure. This is the essence of political correctness.
Pipes's contention is clear: the liberals in
America have lost sight of square one. They cannot see and even go so far as
to refuse to acknowledge how our economic system and society actually
function. Unfortunately liberals have used poverty as a political lever. But
in so doing they have conveniently ignored the fact that poverty and
relative poverty are as often stage-of-life related phenomena as much as
they are social consequences. The young, in particular, are often less well
off because of their inexperience and less developed comprehensions but they
move upward through the economic scale as they work and age; the lowest
economic class does not contain a static population. Of course, there are
many factors at work in such investigations, the details of which are beyond
the scope of Pipes's observations and conclusions. Additional resources can
be consulted regarding these
179
issues, and the validity of some politically
motivated economic and social assertions can be analyzed. For an
investigation of poverty see Thomas Sowell's brief review of this issue in Fewer
(Chapter 43), and Economics
of the Free Society (Chapter 23).
(With reference to economic misrepresentations and
misunderstandings, especially as regards the manipulation of economic
statistics, one should read Basic Economics by Thomas Sowell. This
book is not part of First Principles but it exposes the
methodological and statistical [and thus philosophical] exploitation of
economics. It also explores politically motivated economic theory for those
untrained in this field.)
As Frederic Bastiat notes in 1850 in The Law
(Chapter 7),
See if the law takes from some person what belongs to them, and gives
it to other persons to whom it does not belong. See if the law benefits
one citizen at the expense of another by doing what the citizen himself
cannot do without committing a crime.
This perversion of law is exactly what is seen in the utopian mirage
created sequentially by Franklin D. Roosevelt, Lyndon Johnson, and
mid-twentieth-century Congressional Democrats. All of these players seem to
have had little appreciation of rational economic foundations, the sanctity
of private property, or individual dignity-primarily because these concepts
were not politically useful. Pipes completes his explication of these modern
conditions by discussing the corruption of governmental purpose:
The notion that every need creates a "right" has acquired a quasi-
religious status in modern America, inhibiting rational discussion.
Need one say more? Probably not. Need one do more? Without question.
180
About the Author
Richard Pipes, Baird Professor of History (now Emeritus) at Harvard
University for more than forty years, was born in Silesia in 1923. He lived
in Warsaw, Poland at the beginning of World War II and watched the city
bombed mercilessly as the Germans invaded. He and his family escaped to
America via Italy where he excelled in the world of academia after serving
in the U.S. Army Air Corps and earning educational credentials. He is the author
of numerous books and essays, including The Russian Revolution, Russia
Under the Bolshevik Regime, and Property and Freedom. In 1981-82,
he served President Reagan on the National Security Council--where policy
decisions were anything but unanimous or insignificant--as adviser on
Soviet and East European Affairs. In 1992 he was an expert witness in the Russian
Constitutional Court's trial against the Communist Party of the former
Soviet Union. Pipes was a key anti-Soviet crusader in the 1970s and 1980s,
and from 1968-73 he served as Director of Harvard's Russian Research Center.
He is a member of the Council of Foreign Relations and sits on the editorial
boards of Strategic Review, Orbis, International Journal of Intelligence
and CounterIntelligence, Continuity, Journal of Strategic Studies, East
European Jewish Affairs, and Nuova Storia Contemporanea. He lives
in Cambridge, Massachusetts, and Chesham, New Hampshire.
Available through:
Vintage Books, a division of Random House
New York, NY 10019
www.randomhouse.com/vintage
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