Lost Republic
"Who would be free themselves must strike the blow."
~ Lord Byron

Archive for July, 2010

Socialism versus European Democracy by Ludwig von Mises

Posted in China, Dictatorship, Hidden History on July 31st, 2010

This fantastic essay casts much light on European history and Marxism.

This article first appeared in the American Scholar (Spring 1943): pp. 220–31. This is its first appearance online.

The nations that have been lucky enough to preserve their democratic way of life are eager to learn what caused the failure of European democracy. They want to be prepared for the defense of their own freedom, and are therefore eager to know the enemy whom they may one day have to fight at home.

Public opinion has viewed the European history of the last hundred years mostly in the light of Marxian legends that badly distort the facts. According to this interpretation the bourgeoisie abandoned the cause of freedom and established the dictatorship of capital. Big business and finance became aware that democracy, the rule of the majority, must necessarily lead to socialism.

Eager to maintain their position as an exploiting class, the capitalists and entrepreneurs plotted against democracy. They hired scoundrels to fight against the people. Their sycophants disparaged democracy and popular government, and their armed mercenaries succeeded in overthrowing the majorities that aimed at government by the people. Modern tyranny is an outcome of capitalist machinations. The only sincere and unswerving supporters of democracy are the socialist proletarians.

Every page of European history contradicts these statements. Let us review the most significant facts and see whether they verify the Marxian interpretation.

French Experience

In February of 1848 the French dethroned Louis Philippe, the Orleans king. They substituted universal manhood suffrage for the special privilege of only 250,000 electors. All adult male citizens of France, roughly 9,400,000, now had the right to vote. On April 23 about 84 percent of them made use of their newly acquired right. They voted quite freely; nobody was in a position to prevent their voting as they pleased, and nobody ventured to try.

The outcome of these elections was a National Assembly in which 90 percent of the deputies unconditionally supported private ownership of the means of production. It was a smashing defeat for socialism. The socialists were forced to realize that only a small minority of the nation approved their plans. Their illusions were dispelled: the sovereign people had decided against them.

[All attempts at socialized life must quickly decide between failure and tyranny. The large the sphere of socialization, the more quickly the decision is forced.]

But they were not prepared to yield to the verdict. Hoping to seize power by violence, they rose up in arms. Of course they were defeated.

The Paris revolt of June 1848 was the most frivolous rebellion ever instigated. A small minority of armed men tried to defy the vast majority of the nation and establish a reign of terror and tyranny. The June conflict was not, as the socialist propagandists like to say, a “cowardly massacre of innocent proletarians by the soldiers of reaction”; it was the defense of democracy against the assault of a small minority. General Cavaignac and his troops safeguarded democracy for the moment against the conspiracies of those who aimed at minority rule.

The experience of June 1848 had momentous consequences. A specter has haunted Europe ever since — not the specter of communism, as the Communist Manifesto asserted in 1847, but the specter of terrorist dictatorship by a fanatical minority.

. . . .

French social and political conditions and thinking have been deeply influenced by the menace of socialist usurpation. This fear was the largest factor in the revival of French militant Catholicism; it fanned the flames of aggressive nationalism, Boulangism, and the anti-Dreyfus campaign. It had its share in the evolution that ended with the capitulation of 1940. There were very few friends of democracy left in France by that time. The rest of the nation was in two hostile camps; both the communists and the nationalists violently opposed democracy.

From France the fear of revolutionary socialist assaults spread to the rest of Europe. The French experience motivated Bismarck’s efforts (1878–1890) to put down the Social Democrats by the same oppressive methods that their own champion Karl Marx approved in the acts of the Paris Commune and recommended in writing.

. . . .

The Bolshevik Mind

The frustration of the revolutionary attempts in France forced new tactics upon the friends of socialism. As they did not want to renounce their ambitions entirely, disappearing from the political scene, they had to acquiesce in the peaceful methods of democracy. They organized political parties and ran for seats in parliament. There were socialist groups in every parliament of continental Europe. The socialists became an important factor in most of those countries. Some optimists were prepared to believe that the Marxists had renounced their spirit of usurpation, giving up their revolutionary inclinations and hoping to realize their plans by parliamentary and democratic methods alone; but this was an illusion.

. . . .

But this success of socialism was not an achievement of the Marxist parties, united from 1889 onward in the second International Workingmen’s Association. New socialist parties sprang up, parties firmly opposed to Marxism. There were Catholic socialists, nationalist socialists, and many other parties seeking social reform and prolabor policies. There were governments eager to restrict capitalism and embark upon social legislation. Foremost among them was the German government, whose new social policy, inaugurated at the end of the seventies and solemnly announced in the old Kaiser’s imperial message of November 17, 1881, shaped the pattern of the later American New Deal.

The Marxists saw themselves outdone by governments and rival parties; they began to realize that notwithstanding their electoral successes their prospects of sweeping the masses with them were but small.

A socialist party always tries to achieve its own brand of socialism, not the simple victory of any socialist group. The socialists do not advocate socialism and planning in general, but only a system of socialist planning in which they themselves are supreme. They regard the rule of another socialist party not as a partial success for their own aspirations, but as a greater evil than the capitalist market economy. The mutual animosity of Stalinists and Trotskyites, of the Marxian socialists and National Socialists, is in a class by itself. It is easy to see the reason for this hatred: as long as there is still a market economy, socialist minorities enjoy civil liberties and are free to propagate their doctrines; in a socialist community they are deprived of this opportunity. Where all assembly halls, newspapers, periodicals, and printing offices are in government hands, and where every citizen depends on the whims of the rulers, there is no room left for opposition activities.

. . . .

In Western and Central Europe the Marxians were prudent enough not to express such opinions in public. It would have jeopardized their chances in election campaigns. They discussed these questions in the inner circle and dealt with them in their writings, which few non-Marxists read. But the majority of the Russian Marxists, the Bolsheviks, openly adopted the principle of the revolutionary elite: a group of professional conspirators must snatch the reins of government and subdue the majority of the nation. Lenin’s and Bukharin’s writings preach the gospel of forcible oppression, dictatorial rule, and totalitarian extermination of dissenters. They too, of course, were ignored by the Western European public until 1917.

It is not necessary to dwell upon the Russian events in the fall of 1917. The Bolsheviks failed lamentably in the electoral campaign; the parliamentary majority was radically opposed to their plans. But they were an armed body of fighters; they dispersed parliament, and firmly established their rule — the rule of an elite, say they; the rule of a gang of murderers, say their adversaries. The knell of European democracy had sounded.

There are people who honestly believe that the Bolsheviks are right, that socialism is a blessing and that capitalism is all wrong. It is not the task of this essay to investigate that problem. We have only to underline the obvious fact that Bolshevism does not mean democracy.

. . . .

German Experience

The outcome of the First World War had destroyed the old prestige of the Hohenzollern family, of the Junkers, the officers, and the civil servants. The democracy of the West had shown its political and military superiority. The war, which according to President Wilson had been fought to make the world safe for democracy, appeared as an ordeal by fire for democracy. The Germans, beginning to revise their political views, turned toward democracy. The term democracy, almost forgotten in Germany for half a century, became popular again in the last weeks of the war. The Germans saw democracy as not only a return to the civil liberties — rights of man — suspended for the duration of the war, but above all the substitution of parliamentary government for monarchical near absolutism. These points, as every German knew, were implied in the official program of the Social Democrats. People expected that the Social Democrats would now put into practice the democratic principles of their program, and were ready to back them in their effort at political reconstruction of the Reich.

But from the ranks of the Marxists came an answer that no one outside the small group of professional Marx experts could have foreseen. “We class-conscious proletarians,” the Marxians declared, “have nothing in common with your bourgeois concepts of freedom, parliamentarism, and democracy. We want not democracy, but the dictatorship of the proletariat, i.e., our own; we are not prepared to grant you bourgeois parasites the rights of man, the franchise, or parliamentary representation. Only Marxists and proletarians shall rule henceforth. You are perplexed: you say you had always thought we were sincere in formulating and advertising the democratic points on our program. That is your fault; if you had studied the writings of Marx more carefully you would have been better informed.”

These revelations were a terrible shock not only to the rest of the nation — the majority of the Germans — but also to the greater part of the people who had long voted the Social Democratic ticket. The eyes of the Germans were opened. Now they learned that everything the Social Democrats had professed for fifty years was a lie. All their talk had had but one end in view: to put Rosa Luxemburg and Karl Liebknecht in the place of the Hohenzollerns. Democracy was evidently a mere term invented for the deception of fools. In fact, as the conservatives and the nationalists had always asserted, the advocates of democracy meant to establish mob rule and the tyranny of demagogues.

The communists grossly underrated the intellectual capacity of the German nation. The very idea of boasting after fifty years of prodemocratic agitation that they had never honestly wanted democracy — of telling the Germans: You dupes, how clever’ we were to take you in! — this was too much even for the old members of the Social Democratic party. Within a few weeks political Marxism — not socialism as an economic system nor Marxism as a sociological doctrine — had lost all its former prestige. The idea of democracy became hopelessly suspect. From that time on the term democracy was, to many Germans, synonymous with fraud. The immense majority solidly rejected communist dictatorship.

. . . .

By October and early November 1918, the nationalists were in a state of utter desperation. But they were quick to see the situation and seize their opportunity. They were quicker than the Marxists in sensing the radical change of mood brought about by the menace of communist dictatorship, and they were ready to profit by it to stage a comeback. They knew what their policy for the immediate future must be. Their most urgent need was to prevent a Red dictatorship and wholesale communist extermination of the nonproletarians.

The nationalists, adamant foes of parliamentary government and democracy, decided to support the cause of freedom and democracy momentarily so that they might overthrow them later. They were ready to cooperate with the right-wing socialists in carrying out the first part of this program, and to support the government that they detested. For purely tactical reasons they offered the nation a program of liberalism and democracy. Marxist methods found imitators; the nationalists had profited from reading Lenin and Bukharin. And, faithful to the revolutionary tactics of the Bolsheviks, they armed for the fight.

In January 1919, the rising of the communists and independent socialists in Berlin was defeated by the not-yet-disbanded cavalry division of the ex-Kaiser’s guards and by volunteer corps made up of nationalists and demobilized soldiers who were not too eager to go back to humdrum civilian work. This battle did not end the civil war; it continued for months in the provinces, and broke out afresh time and again in the capital. However, the victory won by the troops in January 1919, at Berlin, safeguarded the elections for the constituent assembly, the session of that body, and the promulgation of the Weimar Constitution.

William II used to say: “Where my guards set foot, there is no more question of democracy.” The Weimar democracy was of a peculiar sort. The horsemen of the royal guards had fought for it and won it. The Constitution of Weimar could be deliberated and voted only because the nationalist enemies of democracy preferred it to the dictatorship of the communists. The German nation received parliamentary government as a gift at the hands of deadly foes of freedom who were only waiting for a chance to take back their present.

Both the nationalists and the communists saw the Weimar Constitution simply as a battleground in their struggle for dictatorship. Both armed for civil war, and each, trying repeatedly to open the attack, had to be put down by armed resistance. But the nationalists became daily more powerful, while the communists were paralyzed. It was not a question of votes and seats in parliament; the centers of gravity of these parties lay outside parliamentary affairs.

[This reminds me of the very vocal and very publicized struggle between the so-called left, and the so-called right in the Unites States. Each fights for its own agenda and uses the idea of liberty only to criticize the other.]

The nationalists were openly supported by the greater part of the intellectuals, white-collar workers, small business, entrepreneurs, and farmers, and they also enjoyed the secret sympathy of a good many workingmen who still voted for the Social Democrats. They could act freely, were familiar with the problems of German life, and could adjust their actions to the changing political and economic conditions of the whole nation and of each province; the communists, on the other hand, had to obey orders issued by Russian leaders who did not know Germany, and were forced to change their tactics overnight whenever the central committee in Moscow ordered them to.

No intelligent or honest man could endure such slavery. The intellectual and moral quality of the German communist leaders was consequently far below the average level of German politicians. They were no match for the nationalists. The communists’ only role in German politics was that of saboteurs and conspirators. After January of 1919 they no longer had any prospect of success, though of course the ten years of Nazi misrule have revived German communism.

The Germans would have chosen democracy in 1918, if they had had to choose. But as things stood they had only the choice between the two dictatorships, Left and Right. Between these two dictatorial parties there was no third group ready to support capitalism and its political corollary, democracy.

[I think Hoppe would disagree with the last part of the previous sentence.]

. . . .

No Democracy without Democrats

It is not necessary to elaborate with further examples drawn from the history of smaller European nations. What happened in France, Russia, and Germany happened there too.

It is a bold distortion of historical fact to say that the Left, the socialists, were eager to establish popular government and that the Right, the bourgeois capitalists, defeated these attempts. Neither the Marxists nor the other socialists ever aimed at democracy.

(Read more from mises.org)

What real financial reform would look like

Posted in Money/Economy/Taxes on July 31st, 2010

This great article by Patrick Barron explains what real financial reform would look like. Here’s a brief summary: End fractional reserve banking

California Official’s $800,000 Salary in City of 38,000 Triggers Protests

Posted in Corruption, Size of Government on July 31st, 2010

Hundreds of residents of one of the poorest municipalities in Los Angeles County shouted in protest last night as tensions rose over a report that the city’s manager earns an annual salary of almost $800,000.

An overflow crowd packed a City Council meeting in Bell, a mostly Hispanic city of 38,000 about 10 miles (16 kilometers) southeast of Los Angeles, to call for the resignation of Mayor Oscar Hernandez and other city officials. Residents left standing outside the chamber banged on the doors and shouted “fuera,” or “get out” in Spanish.

It was the first council meeting since the Los Angeles Times reported July 15 that Chief Administrative Officer Robert Rizzo earns $787,637 — with annual 12 percent raises — and that Bell pays its police chief $457,000, more than Los Angeles Police Chief Charlie Beck makes in a city of 3.8 million people. Bell council members earn almost $100,000 for part-time work. (Read more from bloomberg.com)

Not New, Not True, Irrelevant or Evil: How Economic Nobel Prizes Are Won

Posted in Austrian School on July 30th, 2010

PFS 2010 – Nikolay Gertchev, Not New, Not True, Irrelevant or Evil: How Economic Nobel Prizes Are Won from Sean Gabb on Vimeo.

Red-Light Cameras Spark Debate in Texas Cities

Posted in Dictatorship, Privacy on July 30th, 2010

“There is a backlash, for sure,” said state Rep. Solomon Ortiz Jr., D-Corpus Christi, who co-sponsored the anti-camera push. “City budgeters are counting on these fines as a revenue stream and simply using the argument of safety as cover.”

Safety claims

That sentiment clashes with the opinion of many engineers and city officials who say the cameras have, unequivocally, improved intersection safety.

The cameras capture images, and sometimes video, of drivers running red lights. The images are vetted by the camera company and, ultimately, by police. Most Texas cities charge civil fines of between $75 and $100 per violation. More studies than not suggest the cameras work, at least to some degree.

“They’ve performed much better than I ever imagined,” said Elizabeth Ramirez, chief traffic engineer for Dallas. The city has witnessed declines in red-light accidents at nearly every one of its 59 camera-equipped intersections since the first wave launched in January 2007, she said.

While camera critics dispute the safety data, the money generated has raised even more questions and intrigue, especially as collections have pushed into the tens of millions. A 2007 state law requires cities to set aside half of all profits to help fund regional trauma care centers. Most cities use their share for traffic safety and enforcement efforts.

Houston police Sgt. Michael Muench, who oversees that city’s red-light camera program, said his department has plowed all revenues into crash-scene investigation equipment, extra traffic patrols, radar guns and other traffic-related improvements. “So far, it’s working,” Muench said. Critics point to large disparities in the profits cities generate as evidence that some are just out to make a buck.

“In College Station, cameras were not put at the most dangerous intersections, but the most profitable ones,” said Jim Ash, a sales representative who began the petition drive to take down the cameras there. (Read more from lewrockwell.com)

Julian Assange: Why the world needs WikiLeaks

Posted in Misc on July 29th, 2010

Ted is often elitist, interventionist, and outright socialist, but this was a good talk:

US says Wikileaks could ‘threaten national security’

Posted in Afghanistan on July 29th, 2010

The US has condemned as “irresponsible” the leak of 90,000 classified military records, saying their publication could threaten national security.

The documents released by the Wikileaks website include details of killings of Afghan civilians unreported until now.

The records also show Nato concerns that Pakistan’s ISI intelligence agency is helping the Taliban in Afghanistan, an accusation Islamabad has denied.

The Pentagon said it might take weeks to ascertain what damage had been done. (Read more from www.bbc.co.uk)

The Real U.S. Government

Posted in Secret Wars, Size of Government on July 29th, 2010

The Washington Post’s Dana Priest demonstrates once again why she’s easily one of the best investigative journalists in the nation — if not the best — with the publication of Part I of her series, co-written with William Arkin, detailing the sprawling, unaccountable, inexorably growing secret U.S. Government: what the article calls “Top Secret America.” To the extent the series receives much substantive attention (and I doubt it will), the focus will likely be on the bureaucratic problems it documents: the massive redundancies, overlap, waste, and inefficiencies which plague this “hidden world, growing beyond control” — as though everything would better if Top Secret America just functioned a bit more effectively. But the far more significant fact so compellingly illustrated by this first installment is the one I described last week when writing about the Obama administration’s escalating war on whistle blowers:

Most of what the U.S. Government does of any significance — literally — occurs behind a vast wall of secrecy, completely unknown to the citizenry. . . . Secrecy is the religion of the political class, and the prime enabler of its corruption. That’s why whistle blowers are among the most hated heretics. They’re one of the very few classes of people able to shed a small amount of light on what actually takes place.

(Read more from salon.com)

On Free Immigration and Forced Integration

Posted in Austrian School, Immigration, Privatized Roads, Property Rights on July 28th, 2010

This is a wonderful essay I recently discovered by Hans Hermann Hoppe. It demonstrates the anarcho-capitalist point of view.

If the government excludes a person while even one domestic resident wants to admit this very person onto his property, the result is forced exclusion (a phenomenon that does not exist under private property anarchism). Furthermore, if the government admits a person while there is not even one domestic resident who wants to have this person on his property, the result is forced integration (also non-existent under private property anarchism).

Competing currency being accepted across Mid-Michigan (???)

Posted in Misc on July 28th, 2010

This is news to me. I had the impression local currencies not pegged to the dollar violate legal tender laws, and the G-men will turn your life upside down if your business doesn’t accept dollars, which is why Ron Paul occasionally introduces legislation to legalize competing currencies.

Schiff for Senate — Linda hiding, and denying Peter even exists.

Posted in Big Media, Election / Politicians on July 27th, 2010

Here’s the video in which Linda McMahon denies Peter’s existence. (@ 1:15)

Public Health as a Lever for Tyranny

Posted in Dictatorship, Healthcare on July 26th, 2010

Another lecture from the 2010 Property and Freedom Society Conference.

PFS 2010 – Anthony Daniels (Theodore Dalrymple), “Public Health” as a Lever for Tyranny from Sean Gabb on Vimeo.

Private vs. Public Science

Posted in Property Rights, Science / Environment on July 26th, 2010

This lecture was given at the 2010 Property and Freedom conference in Bodrum, Turkey.

PFS 2010 – Terence Kealey, Science is a Private Good – Or: Why Government Science is Wasteful from Sean Gabb on Vimeo.

Socialism in the 21st Century by Dr. Yuri Maltsev

Posted in Austrian School, Hidden History, Property Rights, Russia on July 25th, 2010

Here’s the video of the lecture I posted about earlier.

Socialism in the 21st Century by Dr. Yuri Maltsev at the University of Iowa from Michael McKay on Vimeo.

Examining Black Loyalty to Democrats

Posted in Election / Politicians, Hidden History on July 25th, 2010

This video offers a strongly dissenting view of the relationship between Democrats and black people. The most interesting part to me comes at 14:15 when he talks about the 3/5th clause of the Constitution.

Here is the text of article 1 section 2 paragraph 3:

Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons.

Like the narrator of this video, I don’t see this as a statement about the value of human life.

Without independently verifying the claims in the video, here are some of them:
* KKK founded by Democratic Party.
* Martin Luther King was a Republican.
* History is being rewritten. “Democrat” being replaced by “conservative” in historical accounts.
* Truman (D) ended discrimination in public schools on paper for political reasons.
* Eisenhower (R) actually desegregated schools.
* Kennedys helped MLK get out of jail to break black support for Republicans.
* Woodrow Wilson (D) segregated military, hosted KKK film at White House.
* Teddy Roosevelt’s (R) friend Booker T. Washington.
* 3/5 clause hurt slave owners, because they gave them less representation.

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