Showing posts with label Right-Wing Libertarianism. Show all posts
Showing posts with label Right-Wing Libertarianism. Show all posts

Monday, December 4, 2023

Inconsistent Populists: Sohrab Ahmari and the Anti-Neoliberal Right

 https://www.dissentmagazine.org/online_articles/inconsistent-populists-sohrab-ahmari-and-the-anti-neoliberal-right/

~~ recommended by emil karpo ~~

(NB note - it never ceases to amaze the lengths that the "right" will go to in order to put lipstick on a pig and disguise their antisocial agendas.  Here is the latest flavor of the day attempting to confuse and convince people that up really is down.)

Thursday, April 15, 2021

Mr. Anonymous and the Not-So-Spontaneous Birth of the Libertarian "Movement" ~~ Anaxarchos (Marxist, labor organizer, writer, researcher)

http://www.thebellforum.net/Bell2/www.thebellforum.com/contentaff6.html?r=14-Not-So-Spontaneous-Birth-of-the-Libertarian-Movement

and 

https://www.scoop.co.nz/stories/HL0812/S00378/mr-anonymous-the-libertarian-movement.htm






William S. Volker (1859-1947)
Mr. Anonymous and the Not-So-Spontaneous Birth of the Libertarian "Movement"

Disclaimer: This is not a conspiracy story, though it has all the elements of one. Anonymous shadowy figures, international "societies", complete political "ideologies" created for convenience alone, social institutions corrupted through the mere distribution of cash (science, politics, universities, governments and even the Nobel Prize), and a global strategy designed to "rule the world" - no doubt about it, this one is better than a novel. But, don't get carried away. There are no secret ceremonies or lizard people in this tale. Nor is it a story about groups named after Italian light fixtures or German beer. It is instead the story of how "everyday conspiracies" work.

Karl Marx wrote that the ruling ideas of any age are the ideas of its ruling class. Looking backward, it is hard to dispute this observation, but how does it actually work? That is what our story is about. It starts with the businessman below and his simple frustration at the success of Marxism as an idea, first among his own workers and then amongst the American establishment whose wide-spread adoption of the appropriately conciliatory "New-Dealism" was entirely in response. In an economic system in which everything is reduced to a commodity, a man of means should be able to simply buy a counter-idea, shouldn't he? So it turns out...

Mr. Anonymous

William Volker, alias "Mr. Anonymous", alias the "First Citizen" of Kansas City, Missouri, "was an extremely modest, enormously wealthy home-furnishings tycoon. He became the unrecognized donor of thousands of gifts, large and small."

Volker was born on April 1, 1859 into a prosperous household in Hanover, Germany. At age 12, Volker's family immigrated to Chicago. At 17 he went to work for a picture frame manufacturer. With the death of his employer in 1882, Volker bought out the company and moved the enterprise to Kansas City. From there, his "little window shade business" grew into a national giant.

In 1911, 52 year old William Volker married. Returning from his honeymoon, he announced he had put one million dollars in his wife's name and, he said, intended to give the rest of his enormous fortune away. Over the next 36 years, he donated millions of dollars, much of it anonymously. When Volker died at age 88 on November 4, 1947, many schools, parks, and public spaces were named for the furnishings tycoon.

So why pick on this guy?

The answer is that the overwhelming priority of Volker's "philanthropy" was focused, not on public spaces but on reactionary ideology. Dismayed by the rise of Socialism in America and doubly dismayed by what he saw as the evolution of government and political thinking towards accommodation and a "new liberalism", eventually personified by the widespread adoption of the economic views of John Maynard Keynes and the New Deal policies of Franklin Roosevelt, Volker set out to create a new and much more reactionary mainstream ideology based loosely around his own ideas of "laissez-faire" capitalism (i.e. a largely unregulated economy) and social Darwinism (the pseudo-scientific notion that in society, unhindered competition would allow the "cream to rise to the top".

In truth, Volker was no great scholar or thinker. The ideology he set out to create was built upside down, starting only with a set of foggy conclusions for which he had a predisposition. From these conclusions, it was the task of Volker's considerable fortune to find a set of justifications, then an enabling ideology or "theory" that gave it all perspective and unity and, eventually, a true philosophical platform from which to launch the whole. But if this task was analogous to building the Great Pyramid, starting from the top, Volker was undaunted. He may not have had a brain but he had money... and he had a personal connection to one of the most reactionary sections of that most reactionary of organizations - the National Association of Manufacturers. Volker's associates, who would all participate closely, included Jasper Crane of DuPont, B. E. Hutchinson of Chrysler, Henry Weaver of General Electric, Pierre Goodrich of B.F. Goodrich, and Richard Earhart of White Star Oil (which through many mergers and aquistions would eventually become Mobil Oil). Moreover, Volker had influence at the leading scholarly institution in his home town: The University of Chicago, founded by none other than John D. Rockefeller and created with a certain ideological predisposition.

In 1932 Volker established the William Volker Fund and, with that, started on the road to becoming perhaps the most significant anonymous asshole of our times. In every way, William S. Volker was the true father of Libertarianism and Modern Conservatism.

For the first dozen years, the fund largely floundered. There is some evidence that Volker may have flirted with Fascism. That ideology though, which attracted such celebrities as Henry Ford and Charles Lindbergh, was thought to have a limited future in America. In the face of Keynesian economics, widespread social spending, and the CIO, what was really required was a return to pre-New Deal economic policy and an anti-communist/anti-union social policy.

Eureka!


The breakthrough came in 1944, when Volker's nephew, Harold Luhnow, took over, first the business and then the Fund. In the same year, Friedrich Hayek's The Road to Serfdom was published. The book was a product of the "Austrian School" of economists, originating at the University of Vienna and first coming to modest prominence at the end of the 19th century in its attacks on Marxist and Socialist economics. Hayek's book was an almost mystical (and hysterical) defense of laissez-faire capitalism and the "free market". According to Hayek, market prices created a "spontaneous order, or what is referred to as 'that which is the result of human action but not of human design'. Thus, Hayek put the price mechanism on the same level as, for example, language". In turn, any attempt at regulation would inevitably lead to "totalitarianism' and in this, both Marxist and New Deal "socialism" were essentially similar. The theory was perfect . Volker and Luhnow had found their ideology. The cash began to flow.

In short order, the Volker Fund and its larger network arranged for the re-publication of Hayek's book by the University of Chicago (a recurring and important connection) despite the fact that it had been almost universally rejected by the Economics establishment. A year later, the book was published in serial form by the ultra-reactionary Readers Digest not withstanding the fact that it was supposed to be a "scholarly text", ordinarily inappropriate for the readership of the Digest, and despite the fact that it had also had been panned by literary critics. In 1950, the Fund arranged for Hayek to secure a position at the University of Chicago and when the University only granted an unpaid position, they arranged for the Earhart Foundation to pay him a salary. Hayek was only the first of a veritable flood of emigre, "scholars".

Recruiting the Homeless

Hayek's teacher in Vienna had been one Ludwig von Mises who, in turn, had been the student of Eugen von Boehm-Bawerk (who had gained fame for his attack on Marxist Economics) and who, in his turn, had been the student of Carl Menger, the founder of the Austrian school. Each of these had published several books that were virulent attacks on Socialism and defended "pure capitalism". It was all very good. Von Mises book was called Socialism: An Economic and Sociological Analysis and it too had been received with yawns when it was published in English in 1936.

While von Mises really had "taught" at the University of Vienna, his was an unpaid position. The University had turned him down on four separate occasions for a paid position. Not surprisingly, in 1940 the nearly destitute von Mises had emigrated to the United States. In 1945, an unpaid "visting professorship" was obtained for him at NYU while his salary was paid by "businessmen such as Lawrence Fertig". Fertig was an associate of the Volker Fund and a friend of Henry Hazlitt, the Fund's friendliest journalist. In all, they would fund von Mises for 25 years and von Mises never would need a "real job".

In fact, this was typical of the Fund's bait and switch tactisc for developing resumes. In the United States, von Mises was the "famed economics professor from the University of Vienna". In Europe, he would become the "famous American economist from NYU".


Uncle Milty

The economist Milton Friedman, during his fifteen minutes of fame, took the opportunity of the publication of his opus, Capitalism and Freedom to decry the shabby treatment that the likes of Hayek and Mises had received from the Economics establishment. On his own similar reception, he wrote in the 1982 preface of his book:

"Those of us who were deeply concerned about the danger to freedom and prosperity from the growth of government, from the triumph of welfare-state and Keynesian ideas, were a small beleaguered minority regarded as eccentrics by the great majority of our fellow intellectuals.

Even seven years later, when this book was first published, its views were so far out of the mainstream that it was not reviewed by any major national publication--not by the New York Times or the Herald Tribune (then still being published in New York) or the Chicago Tribune, or by Time or Newsweek or even the Saturday Review--though it was reviewed by the London Economist and by the major professional journals. And this for a book directed at the general public, written by a professor at a major U.S. university, and destined to sell more than 400,000 copies in the next eighteen years."

It is attractive to believe that Friedman was really this foolish and that his expertise in the politics of fame was similar to his expertise in Monetary Policy. In fact, his separate acknowledgements of the importance of the Volker Fund belie this possibility. In truth, the Fund and its progeny identified Friedman early on, shepherded his career at the University of Chicago, subsidized him through a paid lecture series (which eventually were combined into Capitalism and Freedom), paid his way to Mont Pelerin, arranged for the serialization of his book by Reader's Digest, and bought a signifcant number of the books that Friedman was so proud of "selling".

Friedman was only one of dozens of such local "scholars" who were suddenly discovered through the efforts of the Fund.

The Fund also now began to recruit friendly young "future-scholars" and subsidize their development. Not only was the cause thus advanced, but a modest intelligence network became a part of the Libertarian Movement. One such early recruit was Murray Rothbard, later to become famous as the father of "Left Libertarianism", "Libertarian anarchism", and "anarco-capitalism". Later much castigated for his sellout to the Right-wing Republicans, Rothbard had, from the first, been intimately wrapped up in Anti-Communism, McCarthyism, the Old Right, and the right-wing ideology of the Volker Fund. It was through the Fund that he became an associate of Ayn Rand and a student of Mises.

"Rothbard began his consulting work for the Volker Fund in 1951. This relationship lasted until 1962, when the VF was dissolved. A major part of Rothbard's work for the VF consisted of reading and evaluating books, journal articles, and other materials. On the basis of written reports by Rothbard and another reader - Rose Wilder Lane - the VF's directors would decide whether to undertake massive distribution of particular works to public libraries.

The VF also asked Rothbard to submit reports on particular questions, such as how to rank sundry economists in terms of friendliness to the free market, surveys of the literature on monopoly, Soviet wage structures, etc., etc. Rothbard's memos number several hundred, covering works in economics, history, philosophy, and political science. The memos, which range in length from one page to seventy pages, provide a window into the scholarship of the period - and Rothbard's views on that scholarship. They thereby shed much light on Rothbard's emerging worldview and his systematic defense of liberty."

They also shed "much light" on how the Fund decided which "scholars" to promote, and which to attack. Rothbard later called his work with the Volker Fund, "the best job I've ever had in my life".

Multiplying Like Rabbits

In support of the imported scholars and the new ideology, the Volker Fund also pioneered a process which would become the hallmark of the Libertarian Movement. The Fund started to spin-off organizations by the boatload, each intended, not just to serve specific purposes but to give the appearance of many independent efforts spawned by a "mass appeal". The list of begats is too numerous to chronicle but the first set are illuminating.

Among the very first front organizations of the Volker Fund was the National Book Foundation. While the Foundation's affiliation to the Volker Fund was not hidden, it was circumspect enough to suggest, even to most Libertarians, that it was independent. The fund began modestly enough by distributing free copies of Eugene Böhm-Bawerk's works to thousands of libraries and universities across the country. As the Volker efforts geared up, the Foundation began to distribute millions of books from dozens of authors, all coming from the Fund's stables. Many educational "incentives" were initiated such as "teach a course on Hayek, get 10 (or 100) textbooks for free"...

The Foundation for Economic Education was spun out in 1946, under the leadership of Leonard Read, a leading figure in the Chambers of Commerce. The grand-daddy of all libertarian think-tanks, the FEE initiated the original Mont Pelerin Society meetings. Its own publication, The Freeman, became the founding journal of Libertarianism. The rent was paid by Volker.

The Institute for Humane Studies was created by Floyd "Baldy" Harper, the "ace recruiter" of the Volker Fund, in 1961. The IHS identified and subsidized bright young students and promising scholars friendly to the new Libertarian doctrine. Not only did the IHS fund thousands of students, but it spawned dozens of similar organizations throughout the world. After the Volker Fund was finally closed, subsidies for the IHS shifted to some of the most reactionary organizations in America: The Scaife Foundation, Koch Family Foundations, The Bradley Foundation, and the Carthage Foundation.

The Intercollegiate Studies Institute was founded in 1953 to combat what they would eventually call "political correctness" and "left-bias" in colleges and universities. The organization now consists of 50,000 college students and faculty and through its lavish subsidies, sponsors dozens of programs representing the entire spectrum of right-wing "Libertarian" causes. The first president of the ISI was a young William F. Buckley Jr.

The Earhart Foundation was created by and named for Richard Earhart of White Star Oil, one of Volker's original collaborators in the National Assosciation of Manufacturers. This foundation was used to subsidize various emigres and not only financed Hayek but also Eric Voegelin, yet another Austrian. Through Voeglin, the Earhardt Foundation became connected with the infamous Leo Strauss and, since then, various projects of not just a libertarian but of a neo-conservative perspective have been beneficiaries of the Foundation. In addition, The Earhart Foundation helped to pioneer still another use of the newly-emergent Libertarian think-tanks. As the network of these think-tanks grew, they undertook not only to promote ideology but also specific points of policy, particularly in support of private corporations. The culmination of the Foundation's efforts in this direction came with the founding of the George C. Marshall Institute in 1984. The Institute was initially a foremost proponent of the Strategic Defense Initiative (SDI), heavily promoted by the Defense Industry, and later became the leading non-industry critic of Climate Change. The CEO of the Institute is currently a registered lobbysist for ExxonMobil.
Through the list of organizations, above, the Volker Fund's near-biblical begats encompass nearly every single prominent individual and organization of the Libertarian and New Conservative movements of today.


The Not-So-Secret Society

In 1947, 39 scholars, mostly economists, with some historians and philosophers, were invited by Professor Friedrich Hayek to meet at Mont Pelerin, Switzerland, and discuss the state, and possible fate of classical liberalism and to combat the "state ascendancy and Marxist or Keynesian planning [that was] sweeping the globe". Invitees included Henry Simons (who would later train Milton Friedman, a future president of the society, at the University of Chicago); the American former-Fabian socialist Walter Lippmann; Viennese Aristotelian Society leader Karl Popper; fellow Austrian School economist Ludwig von Mises; Sir John Clapham, a senior official of the Bank of England who from 1940-6 was the president of the British Royal Society; Otto von Habsburg, the heir to the Austro-Hungarian throne; and Max von Thurn und Taxis, Bavaria-based head of the 400-year-old Venetian Thurn und Taxis family.
If the above rings of Bohemian Grove; and similar fodder for conspiracies, it is because informal retreats at out-of-the-way resorts are one of the favorite methods by which the wealthy of many countries formulate a common international policy. What distinguishes the Mont Pelerin Society, however, is that it did not consist primarily of the wealthy. Instead, it was comprised of a majority of marginal, thread-bare "scholars", united only by their common hatred of Socialism and Keynesianism (which were one and the same for most of them) and sprinkled with only a handful of rich patrons and journalists. In fact the Mount Pelerin Society was organized as much by the Volker Fund as by Hayek himself and the Foundation paid the way for all 10 of the American participants.

Once in Switzerland, the scholars agreed on their hatred of Socialism but on little else except to meet yearly to "facilitate an exchange of ideas between like-minded scholars in the hope of strengthening the principles and practice of a free society and to study the workings, virtues, and defects of market-oriented economic systems.

From this not-so-secret-but-thoroughly-right-wing society's more than humble beginnings, the phoenix of laissez-faire capitalism would rise, propelled skyward by unlimited funds. Over a dozen of the scholars who could not previously get a job, a review, or a book deal would go on to win the "Nobel Prize in Economics" (this "epic" story will be told separately). More importantly, the Mont Pelerin Society would itself beget 500 foundations and organizations in nearly 80 countries... again with strategic contributions from Mr. Anonymous. Once transformed into an "international movement", there was no end to what was possible. One example tells the story.

Initiated at Mont Pelerin and copying the FEE, the Institute of Economic Affairs (IEA) was created in London in 1955. Serving as a conduit for both cash and "ideas", the IEA set about the task of "rejuvenating" the dead and decaying British Tories. By 1985, the "Iron Lady", Margaret Thatcher, would positively gush on the occasion of the Institute's 30th Anniversary: "You created the atmosphere which made our victory possible... May I say how thankful we are to those who joined your great endeavor. They were the few, but they were right, and they saved Britain." With that, the IEA begat the Atlas Economic Research Foundation, which in turn created a network of over 50 think-tanks in more than 30 countries.

And what were the scale of these efforts? John Blundell, the head of the IEA, in a speech to the Heritage Foundation, and Atlas in 1990, would identify a rare failure in the Society's efforts. Shaking his head at the abortive attempt to subsidize academic "Chairs of Free Enterprise" in dozens of countries throughout the world, Blundell complained about wasting, "hundreds of millions, perhaps one billion dollars". This was just one initiative among many.


Oceans of Cash

Aaron Director was a lawyer and Ukrainian emigre whose sister had married Milton Friedman prior to the Second World War. That then became the connection which led to the Volker Fund's subsidy of Director and his association with the University of Chicago. He was one of the fund's "imports", alongside Von Mises. Director's collaborator at the University was Edward Levi who would eventually go on to become the President of the University and then Attorney General of the United States. Together, Director and Levi were instrumental in the development of the Chicago School of Economics, or the conquest by the Economics department of the School of Business and the Law School.


The Law School? What does law have to do with economics? The answer was everything according to Director, who developed a theory of "Law and Economics" (called, without tongue-in-cheek, the L&E "Movement"), "stressing free-enterprise principles and the primacy of property law as well as measuring legal rulings with longer-term economic criteria. He founded the Journal of Law & Economics in 1958... that helped to unite the fields of law and economics with far-reaching influence." The journal was of course, funded in large part by what had now become a substantial network of Volker affiliates. Despite the fact that he himself wrote virtually nothing throughout his career, "Director influenced a generation of jurists, including Robert Bork, Richard Posner, Antonin Scalia and Chief Justice William Rehnquist."

One part of what made such a thing possible was not just new territories in which to sell the tired old economic ideas, but also new benefactors who spread the message far and wide. In this case, perhaps the most important new convert was the munitions magnate, John M. Olin and his Foundation:

"...John M. Olin was disturbed by a building takeover at his alma mater, Cornell University. At the age of 80, he decided that he must pour his time and resources into preserving the free market system that had allowed him to acquire his own wealth. The Foundation is most notable for its early support and funding of the law and economics movement, a discipline that applies incentive-based thinking and cost-benefit analysis to the field of legal theory. Olin believed that law schools have a disproportionately large impact on society given their size and to this end decided to focus the majority of his funding there."

Between 1969 and 2005, when the Foundation disbanded, the John M. Olin Foundation disbursed no less than $370 Million, "primarily to conservative think tanks, media outlets, and law programs at influential universities. The Foundation is most notable for its early support and funding of the law and economics movement."

But that was not the only thing that the Olin foundation promoted. Through its contacts at the University of Chicago, the Olin Fund ran into political sciences professor Leo Strauss:
Strauss taught that liberalism in its modern form contained within it an intrinsic tendency towards relativism, which in turn led to two types of nihilism.[2] The first was a "brutal" nihilism, expressed in Nazi and Marxist regimes. These ideologies, both descendants of Enlightenment thought, tried to destroy all traditions, history, ethics, and moral standards and replace it by force with a supreme authority under which nature and mankind are subjugated and conquered.[4] The second type -- the "gentle" nihilism expressed in Western liberal democracies -- was a kind of value-free aimlessness and hedonism, which he saw as permeating the fabric of contemporary American society.[5] In the belief that 20th century relativism, scientism, historicism, and nihilism were all implicated in the deterioration of modern society and philosophy, Strauss sought to uncover the philosophical pathways that had led to this situation. The resultant study led him to revive classical political philosophy as a source by which political action could be judged.

Well, it was not exactly the same thing but it was close enough... and, with its further evolution, neo-liberalism would abandon the "classical liberals" in favor of medieval scholars, thus coming much closer to a "synergy". Meanwhile, for both, "classical political philosophy" was, of course, synonymous with political reaction. The unmentioned irony was that the critique of Straussianism, that it was "crudely anti-democratic, obsessed with secret meanings and in love with white lies told by powerful men to keep the rabble in line" applied neatly as a summation of the "classical liberalism" or Libertarian Movement as a whole. In addition to its Libertarian mission, The Olin Foundation became a founder and one of the principal funding sources for the Project for the New American Century (PNAC).

Extending their reach, the inheritors of Mr. Anonymous' legacy, also set about creating umbrella organizations for Libertarian funding sources dedicated to funding the counter-intelligentsia. These extended from newly created, shadowy and anonymous Foundations to the famous think-tanks (such as Cato, Hoover, and Hudson) to the infamous (such as the Scaife Foundation). As the network has grown, the financing of scholars has been supplemented by the adoption of campaigns, not just in the name of Capitalism, "Freedom", and "Liberty" in general, but on behalf of individual capitalists in particular. Today there is virtually no public campaign, against anti-tobacco legislation, against environmental legislation, rejecting climate change theory, on behalf of HMOs and private health care, against pharmaceutical regulation and so on - outside of industry and trade associations - that does not originate within the network created or touched by Mr. Anonymous. The scale of the cash flowing is not measured in millions or hundreds of millions or in billions, but in tens of billions, and perhaps even more.

But, what about "ideas"?

In our search for cash and connections without parallel, it might be argued that we have missed the great ideas of Libertarianism. The simple explanation is that there are none. Beyond a pro forma agreement on the evils of Marxism, Keynesianism, and "big government" and a thoroughly mystical, near religious belief in capitalism and "free-markets", reduced to paper-thin slogans such as "Personal Freedom" and "Individual Liberty", there is no other point of consensus. Pressed beyond such platitudes, the theoreticians of this movement have always descended into the most bitter disagreements about the most substantial of issues. Such might easily be suspected of an ideology that embraces a political spectrum which includes right-wing Republicans, and neo conservatives and neo liberals and neo-Fascist Ayn Randians, and "classical Liberals" and Libertarian Party members, and "anarchists".

The economic historian, Jamie Peck, in setting out to write a history of the theories of the Austrian School, was dismayed to find that he could not find an "Aha moment" in that history, nor could he see substantial points of agreement between any of the authors (beyond the obvious), nor could he detect a coherent point-of-view that remained constant amongst any one of them for long. "There was nothing spontaneous about neo-liberalism; it was speculatively planned, it was opportunistically built, and it has been repeatedly reconstructed", wrote Peck.

We will deal with this subject in accompanying material, but for the moment it should be said that even the above misses the point. Beyond congenital disagreements, the embrace of Libertarian Economics as political slogan from the beginning meant that the "science" (and it is only as an attempt at economic science that the ideology has ever had even nominal roots) was still-born, no matter how miserable its stock in trade may have turned out to be. Hayek said as much at the time of his "Nobel Prize". He complained that Serfdom had ended his career as an economist and implied that it began his life as an ideologist. No matter what illusions he may have harbored as to his own "destiny", the comment passes down to us as the complaints of a paid shill of the real Libertarian science - the science of propoganda, a wholly owned subsidiary of the Volker Fund - with Hayek only counting as just another whiney paid-professional, complaining about his job-title.

There is no evidence that the much larger irony ever occurred to Hayek:

Tens, perhaps hundreds of billions of dollars, hundreds of millions of books, hundreds of journals, dozens of universities, tens of thousands of people and thousands of professorships, and so on in a network touching virtually everyone in the "Western Democracies" - all of it centrally planned, all of it subsidized, none of it capable of existing by itself in the commercial marketplace or in the "marketplace of ideas" and all of it failing dozens of times until hooked into the river of cash produced by the the simple subsidies of the rich designed to derail the "free" evolution of ideas as they were actually proceeding... is there any such example in all of human history of a movement so far at odds with its own self-proclaimed principles? No problem, though, for William S. Volker, for whom belief was always optional. Mr. Anonymous got exactly what he paid for.

*****

For anyone who would attempt to understand class societies, the unmediated slogans of those same societies are the worst possible places to begin. For feudal societies, slogans such as Chivalry, Honor, Fealty, Chastity, Virtue and the like, underlay a social fabric that was monstrous, arbitrary, and treacherous. In most cases the slogans hid social truths which were the exact opposite of their rhetorical claims. The cruelty of the joke was not fully apparent until the end times of feudalism itself.

In our own times, the slogans which have replaced these are those of Freedom, Liberty, Democracy, Enterprise, Individuality, and so on. It is impossible to know the meaning of these as given and even more unlikely that one may make of them as one may wish. In the present society, they are like virgin forests that one may stumble upon while walking. No matter how pristine and unfettered such may appear, in our contemporary social system that forest is inevitably someone's private property and is thus absolutely resistant to any other appropriation.

So too, it is the same with Freedom and Liberty. No matter how one may "choose" to think of them, in truth they have only one source and one meaning.

The current stakeholder for those terms is the anonymous asshole above, William Volker. He mined the ore, refined the technique, processed the product, and merchandised the result; finally sending the finished commodity out on rivers of cash, no less so than Henry Ford did with his automobiles. As with all other industrial Barons of his time, that he knew nothing of the actual ideas, processes, and practices meant nothing at all. He bought them, he paid for them, he owned them, and in the process, he spawned the liberty industry, a multi-billion dollar monopoly which today owns "the marketplace of ideas". So too, just as with Ford, the complete legacy of his works becomes apparent only now.


Postscript

As far as a postscript goes, we end as we began - with yet more fodder for conspiracy theorists. The William S. Volker Fund closed up shop in 1974, secure in the fact that it's mission had been taken up by others. The last millions in the Fund were passed on to the ultra-conservative Hoover Institution. What were not passed on were the files of the Volker Fund, which mysteriously disappeared. The entire paper trail documenting where the money had come from, how it was spent and who was touched by it, all of this disappeared with a POOF. Three decades after he died, Volker seems to have guaranteed his anonymity in perpetuity and to this day nothing but the vague outlines of this story are known. And so it goes...

By anaxarchos
September 28, 2007

Wednesday, April 14, 2021

The Rise of Right-wing Libertarianism Since the 1950s ~~ CHRIS WRIGHT

https://www.counterpunch.org/2021/04/09/the-rise-of-right-wing-libertarianism-since-the-1950s/

~~ posted for collectivist ~~

Sometimes as I read books I like to simultaneously summarize them in my own words, to facilitate the intellectual digestion. And also to post my notes online later on, in the probably vain hope of diffusing knowledge to young people and non-academics. I’ve been reading a couple of books on the rise of political conservatism in the last several generations, and since nothing is more important to the future than combating conservatism, I’m going to jot down some notes here. As a historian, I’m familiar with the story and have read quite a few works on the subject. (E.g., this one.) Nevertheless, Kim Phillips-Fein’s Invisible Hands: The Businessmen’s Crusade Against the New Deal (2009) and Nancy MacLean’s Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America (2017) are interesting enough to warrant some summarizing.

One of the useful functions of the latter book, in particular, is that it brings force and clarity to one’s prior knowledge of the dangers of right-wing libertarianism, or more generally anti-government and pro-“free market” thinking. In fact, this sort of thinking is an utter catastrophe that threatens to destroy everything beautiful in the world. I know that sounds like an absurd exaggeration, but it’s not. What with society and nature teetering on the brink, it’s the literal truth. I suppose the reason leftists don’t always take right-wing libertarianism as seriously as it deserves—despite their deep awareness of the evils of capitalism—is simply that it’s embarrassingly easy to refute. It’s a childish, simplistic, vulgar hyper-capitalist ideology that, once you examine it a little, quickly reveals itself as its opposite: authoritarianism. Or even totalitarianism, albeit privatized totalitarianism. Noam Chomsky, as usual, makes the point eloquently:

“…Here [in the United States] the term ‘libertarian’ means the opposite of what it meant to everybody else all through history. What I was describing [earlier] was the real Adam Smith and the real Thomas Jefferson and so on, who were anti-capitalist and called for equality and thought that people shouldn’t be subjected to wage-labor because that’s destructive of their humanity… The U.S. sense [of ‘libertarian’] is quite different. Here, every word has taken on the opposite of its meaning elsewhere. So, here ‘libertarian’ means extreme advocate of total tyranny. It means power ought to be given into the hands of private unaccountable tyrannies, even worse than state tyrannies because there the public has some kind of role. The corporate system, especially as it’s evolved in the twentieth century, is pure tyranny. Completely unaccountable—you’re inside one of these institutions, you take orders from above, you hand them down below…there’s nothing you can say—tyrannies do what they feel like—they’re global in scale. I mean, this is the extreme opposite of what’s been called libertarian everywhere in the world since the Enlightenment…”

“Libertarianism,” in short, is a bad joke: morally hideous, theoretically flawed, and empirically without merit. (For instance, it’s well known among economic historians, or should be, that the only way countries have ever industrially developed is through radical state intervention in the economy, which is also the reason that today we have technologies like electronics, the internet, aviation and space technologies, pharmaceuticals, nuclear energy, containerization in shipping, biotechnology, nanotechnology, green technologies, even mass production and electric power.) Still, the simplistic dogma has to be taken seriously and combated because of the incredible damage it has done worldwide, by, for example, justifying state withdrawal of support for vulnerable populations and deregulation of industries that are consequently destroying the natural environment.

Even people and policymakers who aren’t actual libertarians (in the perverted right-wing American sense) have almost always been influenced by pro-market ideologies, because two centuries of global propaganda have made their mark. I don’t want to say markets are necessarily and always, even on small local scales, destructive; I’m only saying that the denigration of government relative to markets is horribly misguided. Besides, what does “the market” even mean? When people talk about “the free market,” what are they talking about? Markets, at least national and international ones, have always been shaped and structured and created and manipulated by states. That’s a truism of economic history. Just read Karl Polanyi’s classic The Great Transformation (1944). “The market” is a meaningless abstraction, an idealization that distracts from the innumerable ways states create rules to govern market interactions, rules that favor certain actors and disadvantage others. No national or international market has ever been “free” of political constraints, structures, institutions, rules that are continually contested and shaped by interest groups in deadly conflict with each other.

Conservative ideologues such as most economists, especially so-called libertarians, always prefer to traffic in idealizations (for instance the neoclassical fetish of mathematical models or the “libertarian” fetish of “the market”) and ignore history because, well, history is inconvenient. Reality mucks up their dogmas. Actual investigation of labor history, economic history, political history, social history leads to such subversive notions as that if workers had never organized, the mass middle class would never have existed. Or that capitalist states have consistently acted for the (short-term or long-term) benefit of the capitalist class or some section of it. Or that classes exist at all! It’s much safer to follow the Milton Friedmans and Friedrich Hayeks and talk only about “freedom,” “economic liberty,” “the market,” “the price mechanism,” “labor flexibility,” and other things that abstract from real-world conditions. It’s also less intellectually and morally arduous. Materialism—historical materialism—leads to revolutionary conclusions, so let’s stay on the level of abstract ideas!

What an obscenity that capitalism is considered synonymous with freedom! When ideologues prate about “economic liberty” or “the free society,” the obvious question is: whose liberty? The liberty of a Jeff Bezos to pay a non-living wage is premised on the inability of millions of people to find a job that will pay more. And when, as a result, they’re (effectively) coerced into taking that minimum-wage job—because the alternative is to starve—their low income vitiates their “liberty” to realize their dreams or have a decent standard of living. Charles Koch, say, has the freedom and ability to influence policymakers at the highest level; in a radically unequal society, most citizens do not have that freedom or ability. A billionaire (who likely inherited a great deal of money) has a heck of a lot more “economic freedom” than the rest of us. But he whines about his lack of freedom because of burdensome government regulations, taxes, and irritating labor unions. If only he could get rid of these obstacles he’d have more freedom—to pay his workers less, fire them for any reason, pollute the environment, and charge consumers more. The “freedom” of the right-wing libertarian is the freedom to dominate others. (More specifically, the freedom of the capitalist to dominate others.)

The truth is that socialism, or popular democratic control of the economy, entails not only more equality but also more widespread freedom. For example, in an economy of worker cooperatives, people would be free from coercion by a boss (because collectively the owners of a cooperative are their own boss). Even in a social democracy, people generally have the means to realize more of their desires than in a neoliberal economy where much of the population lives in poverty. Similarly, the more public resources there are, the more freedom people have to use these resources. Privatization of resources excludes, depriving either all or some people of their freedom to use them.

Needless to say, it took a lot of indoctrination, backed up by a lot of money, to convert untold numbers of people to right-wing libertarianism in the last sixty years. Phillips-Fein starts her story with the famous du Pont brothers who created the Liberty League in the 1930s to fight the New Deal. They didn’t have much success: in the depths of the Depression, it was pretty easy for most people to see through vulgar business propaganda. It wasn’t until after World War II that business was able to regroup and launch successful offensives against the liberal and leftist legacies of the 1930s. You should read Elizabeth Fones-Wolf’s Selling Free Enterprise: The Business Assault on Labor and Liberalism, 1945–1960 for a broad account of this counterrevolution. Phillips-Fein’s focus is more narrow, on the far-right organizations that sprang up to play the long game rather than just immediately beat back unions and Communists and left-liberalism.

One such organization was the Foundation for Economic Education, which “advocated a stringent, crystalline vision of the free market” and disseminated that vision through innumerable leaflets and pamphlets and LP recordings. It was funded by companies both small and large, including U.S. Steel, General Motors, and Chrysler. A couple of the businessmen associated with FEE helped bring Friedrich Hayek, already famous for The Road to Serfdom, to the University of Chicago (the libertarian Volker Fund paid his salary) and assisted with his project of building the international Mont Pelerin Society in the late 1940s. The ideas of Hayek and his mentor Ludwig von Mises (who was hired as a FEE staff member) would become gospel to the fledgling libertarian movement.

It’s remarkable, and testament to the power not of ideas but of money, that a movement that started out with a few scattered malcontents in the business and academic worlds who were fighting a rearguard action against the internationally dominant Keynesian and social democratic paradigm of the 1940s has snowballed to become almost globally hegemonic by the 2010s.

“Over the course of the 1950s,” Phillips-Fein writes, “dozens of new organizations devoted to the defense of free enterprise and the struggle against labor unions and the welfare state sprang into existence.” Ayn Rand, amoralist extraordinaire, had already become “tremendously popular” among businessmen. But some in the business world didn’t like her rejection of Christianity, and they dedicated themselves to shaping religion in a pro-capitalist direction. “We can never hope to stop this country’s plunge toward totalitarianism,” wrote one of them (J. Howard Pew, president of Sunoco and a devout Presbyterian), “until we have gotten the ministers’ thinking straight.” (The usual irony: to avoid “totalitarianism,” we have to get everyone to think like us. Only when every individual is lockstep in agreement, marching behind us, will the danger of totalitarianism be overcome. These ideologues are pathetic, unreflective mediocrities who take it for granted that they have the right to rule—and anything else is totalitarianism.)[1] Pew worked to support an organization called Spiritual Mobilization to get “the ministers’ thinking straight,” and Christian Business Men’s Committees spread in a decade that saw the increasing success of anti-Communist preachers like Billy Graham and the growth of fundamentalism.

One reason for the alliance between religion and capitalism in those years is obvious: they were both anti-Communist. But there are other affinities that are, I think, revealing. What they amount to, at bottom, is the common urge to dominate—an authoritarianism common to both religious and business hierarchies. Most religion by its nature tends to be a rather closed-minded affair (rejection of scientific evidence, doubt, skeptical reasoning), attached to tradition—traditional hierarchies like patriarchy, white supremacy, homophobia. The authoritarian and submissive mindset/behavior it encourages in the faithful can be useful to and coopted by business institutions that similarly demand submission and are authoritarian in structure. (Just as Christianity earlier on was coopted by the Roman authorities (after Constantine), and then by medieval authorities, and then by the early modern absolutist state.)

It’s true that in most respects, market fundamentalism and conservative Christianity are very different ideologies. And their fusion in the modern Republican Party can seem odd. The socially conservative and the economically conservative wings of the party, basically anchored in different constituencies, have by no means always been comfortable with each other. (For instance, libertarian attempts to privatize and destroy Social Security and Medicare have been resisted by the socially conservative popular base.) It’s even more ironic because the religious concern for community, family, and tradition is constantly undermined by capitalism, as has been understood at least since the Communist Manifesto. But the reactionary business elite needs an electoral base, so it’s stuck with the rednecks it despises, because of the interests they have in common. And the “rednecks,” or the social conservatives—but we should keep in mind that plenty of people in the business world are themselves socially conservative and religious—end up allying with business for the same reason. For both groups are opposed to democracy and equality. They want the federal government to stay out of their business, for the federal government has historically done a lot more than state governments to empower the oppressed and undermine reactionary hierarchies. Whether it’s white supremacy, conservative Christian values, or the business desire to avoid taxes and regulation, the federal government has frequently been the enemy—as during the era of the Civil Rights Movement and the liberal Warren Supreme Court. “Small government!” can become the rallying cry for authoritarians if government starts to challenge authoritarianism.[2]

Thus you get the seemingly incongruous but immensely revealing cooperation, starting in the 1950s and continuing today, between white supremacists and “libertarians.” Who thereby show their true colors. Nancy MacLean’s Democracy in Chains is illuminating on this point. Her book describes the career of the influential Nobel laureate economist James M. Buchanan, one of the founders of public choice theory, which is devoted to the impeccably capitalist goal of exposing and explaining the systematic failures of government. MacLean argues that John C. Calhoun, the great nineteenth-century ideologue of slavery, states’ rights, limited government, and “nullification” (the idea that states can refuse to follow federal laws they consider unconstitutional), is an important inspiration for right-wing libertarianism.

“Both Buchanan and Calhoun…were concerned with the “failure of democracy to protect liberty.” In particular, Buchanan and Calhoun both alleged a kind of class conflict between ‘tax producers and tax consumers.’ Both depicted politics as a realm of exploitation and coercion, but the economy as a realm of free exchange… Both thinkers sought ways to restrict what voters could achieve together in a democracy to what the wealthiest among them would agree to.”

Murray Rothbard, among other libertarians, spoke openly of the movement’s debt to Calhoun. “Calhoun was quite right,” he said, “in focusing on taxes and fiscal policy as the keystone” of democracy’s threat to so-called economic liberty, or property rights. Property rights trump every other consideration, including the right of the majority to vote and determine policy. This is why Buchanan worked with Pinochet’s government in Chile to write a radically undemocratic constitution, and why he worked with Charles Koch and others to find ways to limit democracy in the (already very undemocratic) U.S., and why, in general, prominent libertarians have been quite open about their distaste for democracy. The famous economist George Stigler, for example, once told a meeting of the Mont Pelerin Society that “one possible route” for achieving the desired libertarian future was “the restriction of the franchise to property owners, educated classes, employed persons, or some such group.”

The young libertarian movement was energized by the Supreme Court’s Brown v. Board of Education decision in 1954. Why? Not because they supported it (as genuine libertarians, people who authentically value human freedom and dignity, would have), but because, like segregationists, they found it an appalling instance of federal overreach. William F. Buckley and his magazine National Review (funded largely by Roger Milliken, a reactionary textile manufacturer)—not totally “libertarian” but very much in that camp[3]—published articles denouncing the Supreme Court’s “tyranny.” Others were excited by the prospect that the South’s resistance offered to end public education itself. Buchanan, at the University of Virginia, wrote a proposal to sell off all public schools and substitute for them a system of tax-funded private schools that would admit or reject students as they saw fit. His plan never came to fruition, but in the following years, as the Civil Rights Movement gained steam, libertarians—such as Barry Goldwater—could always be found on the side of “states’ rights.” After all, the Civil Rights Act did interfere with property rights, by dictating to businesses what their policies had to be!

Goldwater’s campaign for the presidency in 1964 was a precocious moment for the young conservative movement, and his landslide loss to Lyndon Johnson showed the country wasn’t ready yet for the mainstreaming of far-right politics. Still, all the organizing during the 1950s, from the John Birch Society to the American Enterprise Association (which became the now-well-known American Enterprise Institute), had clearly made an impact. Goldwater’s bestselling book The Conscience of a Conservative helped his cause, as did Milton Friedman’s Capitalism and Freedom. Financial support for his campaign came from conservative businessmen across the country, not only big names like the du Pont family and Walt Disney but also countless small businesses (which are often more conservative than larger ones). The Republican establishment, on the other hand, was hardly fond of Goldwater: Nelson Rockefeller, for example, issued a press release that said, “The extremism of the Communists, of the Ku Klux Klan, and of the John Birch Society—like that of most terrorists—has always been claimed by such groups to be in the defense of liberty.”

To try to get white working-class support, the Goldwater campaign pioneered a strategy that Republicans have used to great effect ever since: capitalize on racial and cultural fears. As one official wrote in a memo, Goldwater should “utilize (and build) fully the one key issue which is working for us—the moral crisis (law and order vs. crime and violence).” Instead of talking about the usual libertarian themes of unions, Social Security, the welfare state, and taxes, he should focus on “crime, violence, riots, juvenile delinquency, the breakdown of law and order, immorality and corruption in high places, the lack of moral leadership in general, narcotics, pornography.” Phillips-Fein comments: “The issues of race and culture, White [the author of the campaign memo] believed, could easily be joined to the politics of the free market. The welfare state, after all, was the product of just the same unrestrained collective yearnings that produced moral chaos.” Exactly. This, then, is another point of contact between free-market ideologues and social conservatives. Both groups want “law and order” and nothing more. (No equality—and no freedom for “undesirables”—only authoritarian hierarchies, whether of class, race, gender, sexuality, or whatever).

As for Buchanan, in the late 1960s, as he was teaching at UCLA at the peak of the New Left, he found himself decidedly unsympathetic to the student protests. To quote MacLean: “Despite ‘my long-held libertarian principles,’ he said, looking back, ‘I came down squarely on the “law-and-order” side’ of things. He heaped praise upon one administrator who showed the ‘simple courage’ to smash the student rebellion on his campus with violent police action.” –What a surprise. A “libertarian” who cheers violent police actions. (Buchanan also supported the Vietnam War, except that he thought it should have been fought more aggressively.)

Meanwhile, he co-wrote a book called Academia in Anarchy that used public choice theory to explain—abstractly, as usual, with no empirical substantiation—why campuses were in an uproar. It had to do, e.g., with students’ lack of respect for the university setting because tuition was free or nearly so. Faculty tenure, too, was “one of the root causes of the chaos” because job security meant professors had no incentive to stand up to radical students. The solution was that students should pay full-cost prices, taxpayers and donors should monitor their investments “as other stockholders do,” and “weak control” by governing boards must end. Such measures would facilitate social control. “In essence,” MacLean comments, he and his co-author were arguing that “if you stop making college free and charge a hefty tuition…you ensure that students will have a strong economic incentive to focus on their studies and nothing else—certainly not on trying to alter the university or the wider society. But the authors were also arguing for something else: educating far fewer Americans, particularly lower-income Americans who could not afford full-cost tuition.” As we now know, the ruling class eventually adopted Buchanan’s agenda.

The tumult of the late ’60s and early ’70s, combined with inflation, recession, and intensifying international competition, is what finally shocked big business into taking action, much broader action than before. The Powell Memorandum, written for the Chamber of Commerce, is symbolic of this panic. Neoconservatives like Irving Kristol argued that, in order to be effective in the sphere of propaganda, businessmen should stop defending only such grubby, uninspiring things as selfishness and the pursuit of money and instead elevate more transcendent things like the family and the church, institutions that (to quote Phillips-Fein) “could preserve moral and social values and had the emotional weight to command true allegiance.” (These neoconservatives also became militant advocates of American imperialism under the slogans of fighting Communism, spreading freedom and democracy, etc.) Nonprofits like the American Enterprise Institute began to get a much more receptive hearing when they pressed businessmen to fund a free-market ideological counteroffensive. The Olin Foundation, among others, disbursed millions of dollars to a variety of conservative think tanks, such as the new Manhattan Institute. The Coors family were the main financers of the Heritage Foundation, created by Paul Weyrich (a conservative young congressional staffer) in 1973, which would take a more pugilistic and culturally conservative stance than the AEI. For instance, it attacked “secular humanism” and defended the “Judeo-Christian moral order” at the same time as it was attacking big government, unions, and the minimum wage.

Incidentally, if this fusion of cultural conservatism and defense of capitalism reminds you of European fascists in the 1920s and 1930s, it’s because reactionaries always use the same ideological bag of tricks. Fascists and Nazis defended capitalism and even, sometimes, “Christianity” while attacking “decadent” bourgeois culture, democracy, effete intellectuals, socialists and Marxists, ethnic minorities (not Blacks, as in the case of American conservatives, but Jews and others), economic parasites—think of Buchanan’s attacks on welfare “parasites.” Most of these American conservatives would have been Nazis had they been German in the 1930s.[4]

Corporate Political Action Committees sprang up everywhere. Phillips-Fein:

“In 1970 most Fortune 500 companies did not have public affairs offices; ten years later 80 percent did. In 1971 only 175 companies had registered lobbyists, but by the decade’s end 650 did, while by 1978 nearly 2,000 corporate trade associations had lobbyists in Washington, D.C. Thanks in part to…the educational seminars sponsored by the Chamber of Commerce and other business organizations, the number of corporate PACs grew from 89 in 1974…to 821 in 1978. They became an increasingly important source of funding for political campaigns, while the number of union PACs stalled at 250.”

Meanwhile, the Business Roundtable “was founded on the idea that celebrity executives could become a disciplined phalanx defending the interests of business as a class.” Its membership was open only to the CEOs of Fortune 500 companies. As its executive director said, “Senators say they won’t talk to Washington reps [e.g., lobbyists], but they will see a chairman.” The Roundtable took a less blatantly reactionary (anti-union, etc.) approach to lobbying than many other business organizations.

The Chamber of Commerce was less genteel: it changed its character in the 1970s, becoming much more activist and politicized than it had been. It “believed in mobilizing the masses of the business world—any company, no matter how large or small, could join the organization. The Chamber rejected the Roundtable’s tendency to seek out politicians from the Democratic Party and try to make common ground. It backed the Kemp-Roth tax cuts [based on the new and controversial supply-side economics of Arthur Laffer] long before most other groups…” By 1981 the group had almost 3,000 Congressional Action Committees; at the same time, it was sponsoring all kinds of projects to indoctrinate students and the general public with conservative points of view on capitalism and such issues as civil rights, gay rights, feminism, and school prayer.

The right-wing counteroffensive was so vast it can scarcely be comprehended. New anti-union consulting companies were founded, and employers became more vicious toward unions. Legions of small businessmen, fed up with the costs of complying with the Occupational Safety and Health Administration’s rules, joined the veritable movement to “Stop OSHA” that was coordinated by the American Conservative Union. Colossal efforts were directed, too, at reshaping the nation’s courts so that, as one crusader said, “the protection and enhancement of corporate profits and private wealth [would be] the cornerstones of our legal system.” Entities like the Liberty Fund, the Earhart Foundation, and many businesses funded Henry Manne’s “law and economics” programs to train lawyers in corporation-friendly interpretations of the law. (By 1990, more than 40 percent of federal judges had participated in Manne’s program at George Mason University.) A few years later, in 1982, the Federalist Society was founded—“federalist” because the idea is to return power to the states, as good white supremacists and libertarians (business supremacists) would want. Within several decades it had completely transformed the nation’s judiciary.

The 1970s was also the decade when “the upsurge of religious fervor that has sometimes been called the Third Great Awakening began to sweep the country” (Phillips-Fein), “shifting the balance of the country’s Christian population toward evangelical and fundamentalist churches and away from the old mainline denominations.” Jerry Falwell, Pat Robertson, and other evangelical leaders preached not only the predictable homophobic, anti-pornography, anti-abortion stuff, but also libertarian ideology—anti-unions, anti-government-bureaucrats, anti-welfare-state stuff. As Falwell said when founding Moral Majority in 1979, part of its job would be “lobbying intensively in Congress to defeat left-wing, social-welfare bills that will further erode our precious freedoms.” (Roe v. Wade, of course, had helped inflame social conservatives’ hostility to the federal government, providing another reason for the affinity with economic conservatives.) Needless to say, the politicization of evangelicals has had some rather significant consequences on the nation’s politics.

And then, as if all this weren’t enough, there was…Charles Koch. Whom MacLean focuses on, together with Buchanan. He’s become even more influential in the last couple of decades—though MacLean surely exaggerates when she says, “He is the sole reason why [the ultra-capitalist right] may yet alter the trajectory of the United States in ways that would be profoundly disturbing even to the somewhat undemocratic James Madison”—but he was already playing a very long game in the 1960s. The son of a cofounder of the John Birch Society, he’s a true ideologue, a fanatical believer in “economic liberty” and Social Darwinism, fiercely opposed to government largesse dispensed to anyone, apparently including (at least in his early idealistic years) corporations.[5] From the early days to the present, one of his favored institutions to help carry out the revolution has been the ironically named Institute for Humane Studies, successor to the Volker Fund in the mid-1960s. But in the late 1970s he founded, with the assistance of the even more fanatical Murray Rothbard, the Cato Institute, to train a disciplined “Leninist” cadre that, unlike most conservatives, would never compromise, never forsake its anti-government principles in any area of policy. (Rothbard supplied the Leninism.) Abolish the welfare state and all government regulations! Abolish the postal service and public education! Legalize drugs, prostitution, and all consensual sex! Slash taxes across the board! End American military intervention in other countries! Much of this was a bit shocking to mainstream conservatives, but Koch wouldn’t stray from his divine mission.

“With a permanent staff and a stable of rotating scholar visitors, Cato could generate nonstop propaganda… Buchanan played a crucial role in such propaganda, for Cato’s arguments generally followed analyses provided by his team. Koch, meanwhile, provided new resources as the cadre brought in recruits with ideas for new ways to advance the cause. They would then be indoctrinated in the core ideas to assure their radical rigor, all of this held together with the gravy train opportunities Koch’s money made available as they pushed their case into the media and public life…”

Koch (and his brother David, who was less political) also supported the Reason Foundation (which still publishes the magazine Reason), a think tank that soon became “the nation’s premier voice for privatization, not only of public education…but also for every conceivable public service, from sanitation to toll roads.” And in 1984—to give just one more example of many—the Kochs founded Citizens for a Sound Economy, chaired by Ron Paul, to rally voters behind their agenda.

The conservative mobilization of the 1970s, combined with the country’s economic woes and liberals’ feckless policies, got Reagan elected—a pretty impressive achievement when the electorate had overwhelmingly rejected his views just sixteen years earlier, in the form of Barry Goldwater’s campaign. But many libertarians were unhappy with his presidency, since he did so little to shrink government. (He did cut taxes, social spending, and regulations, but overall the government continued to expand and, very disappointingly, the welfare state wasn’t destroyed.)

The Cato Institute’s top priority became the privatization of Social Security. Buchanan helped supply a strategy to achieve this wildly unpopular goal. It would be political suicide to just come out and state it openly; instead, devious measures were necessary. First, a campaign of disinformation would have to convince the electorate that Society Security wasn’t financially viable in the long term and had to be reformed. (You may remember this intensive propaganda campaign from the George W. Bush years.) Step two was to “divide and conquer” (in the words of MacLean): reassure those who were already receiving benefits or would soon receive them that they wouldn’t be affected by the reforms. This would get them out of the fight to preserve the existing system. Meanwhile, foster resentment among younger workers by constantly reminding them their payroll deductions were providing a “tremendous welfare subsidy” to the aged. And foster resentment among the wealthy, and thus their opposition to Social Security, by proposing that they be taxed at higher rates than others to get their benefits. Etc. Eventually, popular resistance to “reform” would begin to break down. The financial sector could be enlisted in the fight too because of the windfall of money it would get by Social Security’s privatization.

As always, the ultimate goal was to eliminate all “collectivism,” all collective action and solidarity, which really means to get people to stop caring for each other. The world should consist of private atoms, because that means “freedom”—but more importantly because that means the elimination of resistance to capitalist power. (Ideologues may convince themselves that they’re wonderfully idealistic, but from a Marxian point of view they’re just useful idiots serving the objective interests or dynamics of capitalism to expand everywhere. As I wrote in a brief critique of Corey Robin’s The Reactionary Mind, power-structures basically ventriloquize certain highly indoctrinated people, animating them to speak for them and rationalize them.) It reminds me of Hannah Arendt’s analysis of totalitarianism, according to which the ideal is that everyone is an atom. To shamelessly quote myself:

“As someone once said, the closest we’ve ever come to a society of pure selfishness and individualism was Auschwitz, which was the culmination of a kind of totalitarian collectivism. The ironic parallels between Nazi (and Soviet) collectivism and Randian or Rothbardian individualism are significant: they’re due to the profound atomization that each entails. In the latter, the individual is to treat everyone as a means to his end; in the former, the individual is to treat everyone as a means to the state’s (or the movement’s) ends. In both cases, no human connections are allowed, no treating the other as a being with his own value and his own claims on one’s respect. Hate, mistrust, and misery are the inevitable consequences of both these dystopian visions.”

Cf. Pinochet’s regime, beloved by Hayek and Buchanan.

Anyway, the Cato Institute was hardly the only conservative institution fighting to privatize Social Security, but the war was never won. Democracy and “collectivism” proved too resilient. Unexpected outcome! In the 1990s, the Kochs and other funders, Buchanan, Congressman Dick Armey, Newt Gingrich, and the whole 1994 crop of Republicans at the vanguard of the “free market revolution” struggled mightily to shackle democracy by passing a balanced budget amendment to the Constitution (along with cutting Medicare, “reforming” welfare, and so on), but again, alas, they failed.

Buchanan was particularly incensed by the National Voter Registration Act of 1993 (the so-called Motor Voter Act). “We are increasingly enfranchising the illiterate,” he growled, “moving rapidly toward electoral reform that will not expect voters to be able to read or follow instructions.” It bears noting, by the way, that it’s really superfluous to argue that market fundamentalists hate democracy, because it hardly requires great insight to see that the accumulation of wealth by a minority is itself totally inimical to democracy. And such wealth accumulation is not only an inevitable product of “unfettered” markets but openly celebrated by businessmen and ideologues.

In the meantime, George Mason University, conveniently located right next to Washington, D.C., had become a center of the “Kochtopus,” as people took to calling the vast network of institutions the brothers funded. It was the home, for example, of the Institute for Humane Studies, the James Buchanan Center, Henry Manne’s Law and Economics Center, and the important Mercatus Center. Buchanan himself, who had provided so many useful ideas and academic legitimacy, was effectively pushed out of the movement as Charles and his loyal lieutenants (Richard Fink, Tyler Cowen, and others) took control at the university. And now, at last, the long march of the zealots was about to come to fruition.

The last chapter of Democracy in Chains is chilling. In the words of the economist Tyler Cowen, the reality that is being fashioned for us will see “a rewriting of the social contract” according to which people will be “expected to fend for themselves much more than they do now.” From public health and basic sanitation to the conditions that workers toil in, the goal is to dismantle government, which is to say democracy. As the most extreme market fundamentalists have preached for centuries, only the police and military functions of government, the authoritarian functions, are legitimate. (Adam Smith, by the way, did not advocate this position.)

As hard as it may be to believe, one individual—Charles Koch—really is behind a large part of the destruction that conservatives have wrought in the twenty-first century. He substantially funds Americans for Prosperity, the American Legislative Exchange Council, the State Policy Network, the Mackinac Center in Michigan (worth mentioning only because its lobbying played a significant role in Flint’s water crisis), and, in fact, uncountable numbers of institutions from university programs to legal centers. His loyalists control the Stand Together Chamber of Commerce, a massive conservative fundraising machine, and American Encore, a secretive but powerful nonprofit that funnels money to right-wing causes and advocacy groups. He owns i360, a cutting-edge data analytics company that has precise personal information on over 250 million American adults. It’s so sophisticated it has eclipsed the Republican Party’s voter files, such that the party has had to buy access to it to more effectively bombard voters with personalized messages.

(See this Intercept article by Lee Fang on how Tennessee Rep. Marsha Blackburn used i360 to help “inundate voters with anti-immigrant messages” in her victorious 2018 Senate run. The technology shaped “3 million voter contact calls, 1.5 million doors knocked, $8.4 million spent on television ads, and 314,000 campaign text messages,” all of which gave her a commanding lead over her Democratic opponent.)

In 2016, the “Koch network” of hundreds of wealthy right-wing donors he heavily influences spent almost $900 million on political campaigns, which in effect made it a third major political party—and little of that money was for the presidential election, since neither Clinton nor Trump interested the man at the center. Even officials with the Republican National Committee have grown uncomfortable with the power of Koch and his allies: journalist Jane Mayer reports one of them plaintively saying, “It’s pretty clear that they don’t want to work with the party but want to supplant it.”

Ever since the brilliant journalism of Mayer and others brought the Koch underworld out into the open more than ten years ago, much of the politically conscious public has become vaguely aware of the role of this network in funding and coordinating attacks on everything from climate action to unions to public education. But to get a real sense of the radical evil and effectiveness of this “vast right-wing conspiracy,” it’s necessary to read Mayer’s Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right.

For example, the hysteria in wealthy right-wing circles after Obama’s election precipitated nearly instant mobilizations to create the Tea Party. Citizens for a Sound Economy had tried to create an anti-tax “Tea Party” movement as early as 1991, but these attempts had led nowhere. In 2004 CSE split up into the Kochs’ Americans for Prosperity on the one hand and FreedomWorks on the other, the latter headed by Dick Armey and funded by, e.g., the Bradley Foundation, the Sarah Scaife Foundation, Philip Morris, and the American Petroleum Institute. In early 2009, operatives from these two groups and a couple of others formed what they called the Nationwide Tea Party Coalition to organize protests across the country, using talking points, press releases, and logistical support provided in part by the Heritage Foundation and the Cato Institute. To help get the word out, FreedomWorks made a deal with the Fox News host Glenn Beck: for an annual payment of $1 million, he would read on air content that the think tank’s staff had written. Pretty soon, the increasingly frequent anti-government rallies were filled with racist slogans (“Obama Bin Lyin’”) and racist depictions of Obama—showing, once again, the deep affinity between pro-capitalist ideologies and racism. It’s hard to argue with the Obama aide (Bill Burton) who opined, “you can’t understand Obama’s relationship with the right wing without taking into account his race… They treated him in a way they never would have if he’d been white.”

From these noble beginnings, the Koch network stepped up its funding for and organizing of ever more vicious attacks on Obama’s agenda, such as cap-and-trade legislation and even the conservative-centrist Affordable Care Act. With the help of the Supreme Court’s Citizens United decision in 2010, they met with extraordinary, though not complete, success. And this was in addition to the highly successful efforts to take over state governments. In North Carolina, for instance, Americans for Prosperity (significantly aided by the John William Pope Foundation and other funders, as well as an array of private think tanks) played a large role in the Republican takeover of the state’s government and passage of such measures as slashing taxes on corporations and the wealthy while cutting services for the poor and middle class, gutting environmental programs, limiting women’s access to abortion, banning gay marriage, legalizing concealed guns in bars and school campuses, eviscerating public education, erecting barriers to voting, and gerrymandering legislative districts for partisan gain. State after state succumbed to such agendas. Just between 2010 and 2012, ALEC-backed legislators in 41 states introduced more than 180 bills to restrict who could vote and how.

Thus, a reactionary political infrastructure generations in the making has finally matured, even as its goal of completely shredding the social compact and leaving everyone to fend for themselves remains far in the future (in fact unrealizable). Economic and cultural polarization, consciously planned and financed since the 1950s, has reached untenable extremes. Daily newspaper articles relate the sordid story of Republican state legislatures’ ongoing efforts to decimate the right to vote, as, meanwhile, Koch and his army of allies and operatives frantically work to defeat Democrats’ For the People Act (described by the New York Times as “the most substantial expansion of voting rights in a half-century”). “The left is not stupid, they’re evil,” Grover Norquist intones on a conference call with Koch operatives and other conservatives. “They know what they’re doing. They have correctly decided that this [voting rights act] is the way to defeat the freedom movement.” The class struggle, in short, rages on, with the stakes growing ever higher.

A Marxian, “dialectical” perspective offers hope, however. Being nothing but capitalism’s useful idiots, the vast horde of reactionaries whose handiwork I’ve surveyed is unable to see that history is cyclical. The business triumphalism of the 1920s led straight into the Great Depression, which led to left-populism and the welfare state, which led to the corporate backlash of the 1950s, which helped cause the Civil Rights Movement and the New Left, which bred the hyper-capitalist counterassault of the 1970s–2010s, which is now bringing forth a new generation of social movements. These are still in their infancy, but already they have been able to push even the execrable Joe Biden to mildly progressive positions (though not on foreign policy). To paraphrase Marx, what the radical right produces, above all—in the long term—are its own gravediggers. For Karl Polanyi was right that before society can ever be destroyed by thoroughgoing marketization and privatization, it will always bounce back and “protect itself” (in his words). At long last, we’re starting to see the glimmers of this self-protection.

As for libertarianism—yes, in an authentic form, a philosophy of freedom must guide us. As Howard Zinn said, Marxism provides the theory and anarchism provides the moral vision. But in order to realize freedom, what we need is the exact opposite of the tyrannical Hayekian model of society. We need an expansive public sector, a society of communal and public spaces everywhere, cooperatives and democratic institutions of every variety—libraries and schools and parks and playgrounds in every neighborhood, public transportation and housing and hospitals, free higher education and healthcare, the transformation of corporations into worker cooperatives or democratically run government institutions (whether municipal or regional or national or international). Even in the neoliberal United States, society has (barely) functioned only through hidden economic planning—and corporations embody sprawling planned economies—and without constant local planning, urban planning, scientific planning, political and industrial planning, everything would collapse. “The market” is nothing but a concept useful to bludgeon popular strivings for dignity and democracy. Its ideologues are the enemies of humanity.

What does it mean to be free? A robust freedom isn’t centered around the property one owns; it’s centered around the individual himself. Every individual should have the right to freely and creatively develop himself as he likes, provided he respects the same right in others. To respect others means to take on certain responsibilities to society—which is already a “collectivist” notion, in a sense. To respect others means to acknowledge their humanity, to treat them as you would like to be treated, to do no harm and in fact to do good—to cooperate, to work to advance and protect a society that allows everyone to live a decent life. Rights are bound up with responsibilities. And substantive, “positive” freedom isn’t possible in an environment of significant material deprivation, especially when others have incomparably greater resources and will use them to consolidate power (further limiting the freedom of the less fortunate). So, to permit the flourishing of freedom and thereby respect others’ rights, we all have a responsibility to advocate and work towards a relatively egalitarian, economically democratic, socialist world.

Reverence for “property” (a concept defined by the state and subject to political negotiation) has little or nothing to do with protecting individual liberty. It isn’t impossible to imagine a world in which private property is marginal, the means of production, the land, perhaps even housing being held in common and managed through procedures of direct or representative democracy. That such a world would end up violating people’s freedoms on a scale remotely comparable to that at which our own world does is far from clear, to say the least.

Nor does the radical right’s objection to “discriminatory” taxes on the wealthy make sense. As Peter Kropotkin lucidly argued in his classic The Conquest of Bread, we all benefit from the collective labor of millennia, and of the present. “Millions of human beings have labored to create this civilization on which we pride ourselves today,” he wrote. “Other millions, scattered throughout the globe, labor to maintain it… There is not even a thought, or an invention, which is not common property, born of the past and the present.” Why should a few individuals capture exponentially greater gains from all this labor than everyone else? And if they do capture such gains, why shouldn’t they be compelled to give back more than others to the society that permits them such extraordinary privilege? Right-wing objections are the more absurd in that economists such as Mariana Mazzucato (in The Entrepreneurial State) have shown it is overwhelmingly the taxpayer, not the wealthy investor, who drives innovation forward and has therefore, through the mechanism of government funding and coordinating of research, built the prosperity of our civilization. Capitalist parasites on taxpayers and the collective labor of billions deserve to be driven out of existence through confiscatory taxation—which would give government more resources to invest in publicly beneficial research and development.

“Libertarian” arguments are bankrupt, but that hasn’t prevented the movement from doing incalculable harm worldwide since the 1970s. We can only hope that popular movements defeat it before its environmental consequences, in particular, doom us all.