Apr 16, 2019

April 15, 2019: Meaning of Happiness, “Emerging Oligarchy,” We've Already Arrived



The New York Times published an essay by Michael Tomasky concerning this litmus test introduced by MSNBC referred to in the previous post. It involves confronting each candidate with the question of whether they are capitalists or socialists. As stated earlier, it has become vogue in the media to begin the interrogatories with this question as if there were no other than a binary choice.

Tomasky, who is currently a columnist for The Daily Beast and editor of Democracy: A Journal of Ideas, as well as a contributing opinion writer contributed a piece in today's Times congratulating South Bend mayor Pete Buttigieg's handling of the question. (1)

Pete Buttigieg,” writes Tomasky, “who's shown an impressive knack for putting matters well in these early days of the 2020 presidential race, nailed it recently when Chuck Todd of NBC asked him about capitalism. Of course I'm a capitalist, he said; America 'is a capitalist society.'

But, he continued: 'It's got to be democratic capitalism.'

Mr. Buttigieg said that when capitalism becomes unrestrained by democratic checks and impulses, that's no longer the kind of capitalism that once produced broad prosperity in this country. 'And if you want to see what happens when you have capitalism without democracy, you can see it very clearly in Russia,' he said. 'It turns into crony capitalism, and that turns into an oligarchy.” (2)

Precisely, although the United States has never been a purely capitalist society. It began with a largely slaveholding economy and has morphed into a rather mixed economy. Even in the heyday, as noted in previous posts, governments, state and federal, heavily subsidized and protected through tariffs major industries. But the good mayor of South Bend might have added, as regards emerging Oligarchy, that we have already arrived.

Tomasky then takes us through a brief, though incomplete, history lesson. He invokes, quite rightly, the example of Thomas Jefferson who within months of penning the Declaration of Independence was busy writing legislation in the Virginia House of Delegates abolishing the Commonwealth's medieval laws concerning “entail” and “primogeniture”, which served to keep great estates in tact upon the death of the principle, ensuring a dominance of the few landed aristocrats spanning generations.

Was it mere coincidence Tomasky asks, “that he moved quickly from writing the founding document of democracy to writing a bill abolishing inheritance laws brought over from England?”

Hardly,” Tomasky answers. “He believed, as the founders did generally, that excess inherited wealth was fundamentally incompatible with democracy”.(3)

Tomasky then proceeds to cite John Adams: “All elements of society, he once wrote, must 'cooperate in this one democratical principle, that the end of all government is the happiness of the People; and in this other, that the greatest happiness of the greatest Number is the point to be obtained.' 'Happiness' to the founders meant economic well-being, and note that Adams called it 'democratical'”. (4)

Tomasky even evokes Adam Smith, the political economist who founded modern Capitalism and one “whom conservatives invoke constantly today but who would in fact be appalled by the propagandistic phrase 'death tax'--in their time, inherited wealth was the oppressive economic problem” (5)

He is quite right in his reporting, although incomplete. Smith would argue that large concentrations of wealth passed from generation to generation would stifle initiative, ossify markets and strangle innovation. This is precisely what is happening in the United States as large big-box operations drive out small town merchants, killing off the old main streets and nightly vacuuming the proceeds out of town, leaving communities with only the starvation wages paid to workers. Even that isn't enough for the likes of the Walton's who build their stores on the backs of their labor force and at taxpayer expense to the tune, on average, of a million dollars a year in tax breaks and social services. The question facing any budding entrepreneur is: would you risk your life savings on a hardware, grocery store, clothing or any of a number of retail opportunities on the chance that they drop a big box down next to you and take your business? Of course not. And the numbers show. Not only has main street suffered but fewer of the young are going into business or plan to go into business than at any time in the last century. The markets are being stifled as the likes of Walmart and Amazon take over retail. This bodes ill for the greater society.

But let's get back to the founding fathers. Like Smith they would and indeed did support taxation. And, as mentioned in an early post in these columns, Madison, Hamilton and Jay argued in The Federalist Papers for taxation to be based primarily on property rather than a poll or head tax precisely because it was, for the time, the most progressive form of taxation. That is, the wealthier you were in those days the more property you owned since wealth was largely tied to land.

These points are best understood by reading Arthur Schlesinger's The Age of Jackson. Not only Jefferson and, as Tomasky reports, Adams deeply concerned with concentrations of wealth but so were the Masons and Lees of Virginia along with Patrick Henry, Alexander Hamilton and John Jay.

This was no mere coincidence as any cursory reading of The Federalist Papers reveals. The founders were serious students of history and references to the ancient regimes of Athens and Rome as well as medieval experiments in republican government populate the pages. The closely studied how these republics were constituted and what they came to understand were the reasons for their failure.

And that brings us back to where Tomasky began, his reference—albeit brief—to Aristotle.

Tomasky mentions the Greek philosopher only in passing, a nod that Aristotle defined the Oligarchy implying disapproval. There was more to it than that. What he should have acknowledged is that Aristotle who was, in a manner of speaking 'present at creation,' was a democrat because he witnessed how oppressive were the concentration of wealth. What Tomasky failed to mention—because he didn't do his homework and it isn't taught in American schools—is that the Greeks invented democracy not simply to give the citizen power but to give the citizen power so as to bring to heel the Oligarchy. It was to achieve these ends—the happiness of the People—through wealth redistribution that democracy was created in the first place. This is why the rich are always, at base, anti-democratic, and this is why the lessons of history are not taught in the schools.

Please note that happiness here is not meant to be seen as the happiness of the individual. It was Adams who first laid down the dictum of “the greatest good for the greatest number” in explaining what was meant, a refrain echoed a century later back across the Atlantic by Jeremy Bentham as England struggled to rid itself of the old medieval order. It is the happiness of the “People” further underscored by the preamble to the Constitution in which the founders charged the new order with, among other things, providing for the “General Welfare”.

Tomasky is, however, quite right arguing as he does that the understanding of democracy as given to us by our schoolmarms must change. The “word has come to mean the existence and exercise of a few basic rights and principle. The people—the 'demos'--are imbued with no particular economic characteristic. This is wrong. Our definition of democracy needs to change.” (6)

Until then the Russian and American Oligarchies sleep well when they aren't up all night scheming of ways to give the screws another turn.

An Br'er Putin, he jus' laugh and laugh'

Impeach and Imprison

_________________

  1. Tomasy, Michael. “America's Coming Oligarchy” The New York Times. Monday, April 15, 2019. Page A23
  2. Ibid
  3. Ibid
  4. Ibid
  5. Ibid
  6. Ibid

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