Tag Archives: liberty

Progressivism & Liberty

The narrative of the American experience throughout the twentieth century and into the twenty-first century is marked by a steady increase of the scope, cost, and weight of government. The trend — marked by the birth of the welfare state, of extensive economic regulation, and supremacy of the concept of social justice — is defended by subscribers of a particular umbrella ideology called Progressivism. Such an ideology depends for its coherency certain political, moral, and philosophical assumptions which, as will be argued in this paper, are antithetical to the philosophy of America’s founding; that of Jeffersonian liberty.

Thomas Jefferson, in drafting the Declaration of Independence, enshrined a particular political philosophy congruent with man’s nature; that individuals were, by right of their nature as rational animals, endowed with inalienable rights to the destiny of their own lives. From that axiom grew corollaries like the right to be free of compulsion (liberty), to engage life as one sees fit (happiness), and to keep that which was rightfully earned (property). Thus, “government was instituted among men” for no other reason than to defend man’s natural right to his own life from any corner that may wish to infringe upon it. It was with this philosophical understanding that government was inconsequential to all rights-respecting individuals who kept to themselves or made voluntary agreements with their neighbors. Government’s role was negative in nature; to stop injustice, so justice itself could remain.

This philosophical foundation was reassessed however by the Progressive movement beginning in the late nineteenth century. The Progressive “consensus” was born by discontent with the first “big business,” the transcontinental railroad. Soaked in government subsidies by the passage of the Pacific Railways Act of 1862 [1], the railroad industry was encouraged to over-produce railways so much so to the point where supply far exceeded demand. Yet, instead of prices reflecting this new equilibrium, the monopolistic status granted to railroad corporations by the government assistance, allowed them to arbitrarily set prices.

From this experiment (of meddling in a free market), grew general discontent with the railroad industry in particular and laissez faire capitalism in general. It seemed at the time to many that the rich were getting richer at the expense of the poor; that unregulated capitalism had led to monopolistic conglomerates in the industries of rail and oil and now consumers were paying the (higher) price.

A call for reform echoed across the American landscape in favor of regulation at the Federal level, instituting welfare programs for the poor, and price controls in the forms of laws and tariffs. Herbert Croly, a Progressive intellectual and editor of the magazine The New Republic wrote in his seminal treatise The Promise of American Life:

…the traditional American confidence in individual freedom has resulted in a morally and socially undesirable distribution of wealth. [2]

How, one might ask, could a country in the span of a century go from such staunch individualism as exemplified by the writings of Thomas Jefferson, to varying flavors of Progressivism exemplified by author Herbert Croly?

This fundamental change came from the redefining of liberty as a concept. With the backdrop of the late 1800s, capitalism had seemingly left a majority of the people behind. Liberty as defined as the freedom from force seemed to lose favor. After all, went the narrative, it was the hands-off approach which led to monopolies and wealth inequality. Liberty then seemed not so passive; it required adjustment, adaptation, and progression to deal with changing realities of time. “Life is complex;” Woodrow Wilson would put it in 1912.

[T]he individual is caught in a great confused nexus of all sorts of complicated circumstances, and that to let him alone is to leave him helpless as against the obstacles with which he has to contend; and that, therefore, law in our day must come to the assistance of the individual. [3]

Liberty became a state of being, a standard of living. It became not just the ability to be left alone, but the ability to employ one’s own energies successfully. Wilson likened liberty to a perfectly operating machine, contending that liberty was achieved only when all parts were “associated most skillfully with the other parts of the great structure.” Thomas Jefferson’s “chaotic individualism,” as Croly put it, was far too focused on the wrong side of liberty’s equation. Paradoxically, according to the Progressives, the results of liberty, as opposed to the mechanics and architecture of liberty, defined liberty itself.

From this fundamental assumption (that individuals were entitled to equal results) came a series of policy prescriptions which included the promotion of the poor through welfare programs and the subjugation of the rich through regulation and high taxation; in other words, wealth redistribution. This was completely justified under the holistic reasoning; in order to save the many, a few needed to be sacrificed. To the Progressives, wealth was not tied to productive effort, but was a zero-sum game. The rich could only be so at the expense of the poor, and so these policies were justified in the new definition of liberty.

The year 1913 saw a wave of Progressive reforms on the national level take place; the establishment of the national income tax, direct election of U.S. Senators, and the establishment of the Federal Reserve system just to name a few. During World War I, the Progressives nationalized industries such as railroads and banned alcoholic beverages, two initiatives that would be overturned later by popular discontent — all in the name of fine-tuning the “great structure.”

The Federal Reserve would go on to artificially inflate the money supply which led to speculative bubbles throughout the rest of the century. The direct election of Senators largely removed the states’ ability to check the federal government. The national income tax, despite being reduced after the end of World War I, remained higher than before the war and remained the federal government’s primary source of income. [4]

Some of the consequences of this new chapter of government activity were obvious, like higher taxation and the meddling of natural economic forces. Some of the lesser known consequences however were the introduction of the apparatus for the state to choose winners and losers. By adopting the premise that the government could morally redistribute wealth, competition emerged to secure government favors, benefits, and privileges. J. Brian Phillips writing for The Freeman magazine put it perfectly.

In a capitalist society, in which the government has no control over the economy, there is no benefit to be derived from pressure group politics; in a collectivist society, in which the State controls the economy, pressure groups are a matter of economic survival. [5]

To illustrate this, consider the influx of lobbying in Washington between 1900 and 1920. During this decade known as the Progressive era, the U.S. saw the most interest group organizations form, including the US Chamber of Commerce, National Association of Manufacturers, and the American Medical Association. [6] Moreover, and in particular, the growth rate of non-profit interest groups was greatest during this period. [7]

Progressives, by expanding the state into the business of handing out taxpayer money, would cement the domination of capital to reign over and iniquitously influence politics (which they would later come to despise) giving legitimacy to bribery, blackmail, and cronyism.

These consequences have come to define the recent political discontent with Wall Street and Washington. Despite diverging policy prescriptions, the Tea Party movement and the Occupy Wall Street movement have a general agreement that over the years, the government has picked winners and losers, whether they be the petroleum or the “green” industry, and that such behavior is no longer desirable. But I digress.

The Progressive era reforms that came about during this period marked a tragic scene for liberty’s cause. Now subject to the premise that we were all our brothers’ keepers, that the individual lacked the rational faculties to navigate the complexities of life, and that capitalism was a force to be contained through regulation, liberty’s torch was drenched in a sea of taxation, wealth redistribution, and regulation. The American family would find its hard-earned wealth taxed away, now less free to invest in their future. The poor were rewarded with federal-assistance programs funded by taxes meant to pay for the legitimate roles of government, like a military and the police. Businessmen were now expected to burn the candle on both ends — to increase wages and benefits while simultaneously increasing employment, regardless of economic realities. They were now less free to operate their business as they saw fit.

Egalitarianism inherently circumvents liberty. By ignoring the natural heterogeneity of the human race, Progressives sought to impose equality where it naturally could not fit. Humans are unique in talent, skill, and culture. This uniqueness has allowed a division of labor into specialized groups that has brought untold wealth and prosperity to the entire race. It is this uniqueness, along with our rational faculties, that makes our race what it is. Circumventing that uniqueness has a substantial cost: the liberty of others.

Jeffersonian liberty, the bedrock of America’s founding, rests on the idea that individuals are means to their own ends, never the ends of others; that individuals should be free to engage in voluntary acts of mutual agreement with each other; and that they deserve that which they produce. Progressivism represents the antithesis of these simple concepts. Its dawning on the American polity during the turn of the nineteenth century brought about structural changes that gave rise to iniquitous lobbying that dominates politics even to this day; to the administrative state that continues to circumvent natural economic forces; and to a fundamentally new and perverted definition of liberty and America’s founding philosophy.

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[1] Library of Congress. Primary Documents in American History. June 30, 2010. http://www.loc.gov/rr/program/bib/ourdocs/PacificRail.html (accessed November 2011).
[2] Croly, Herbert. The Promise of American Life, 21. Northeastern, 1989.
[3] Wilson, Woodrow. The New Freedom. 1912.
[4] National Taxpayers Union. History of Federal Individual Income Bottom and Top Bracket Rates. 2009. http://ntu.org/tax-basics/history-of-federal-individual-1.html (accessed November 2011).
[5] Phillips, J. Brian. “Capitalism at a Crossroads: 1875-1900.” The Freeman 37, no. 9 (September 1987): 348-351. http://www.thefreemanonline.org/columns/capitalism-at-a-crossroads-1875-1900/ (accessed November 2011).
[6] Hrebenar, Ronald J., and Bryson B. Morgan. In Lobbying in America: A Reference Handbook, 15. Santa Barbara, CA: ABC-CLIO, 2009.
[7] Walker Jr., Jack L. In Mobilizing Interest Groups in America: Patrons, Professions, and Social Movements, 63. Ann Arbor, MI: University of Michigan Press, 1991.

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Collectivism and the OWS Movement

The architecture of liberty is comprised of the same simple concepts illustrated by the Declaration of Independence — that man has a right to his own life, that individuals are sovereign entities entitled to the pursuit of their own happiness so long as such pursuits heed to the sovereignty of others. This individualism defines the standard for which society is to be evaluated. This is why the saying goes “justice is blind” in that the rule of law applies equally to all men, regardless of race, creed, religion, or stature; why we are free to buy or not buy goods based on our own needs and desires (i.e. free market capitalism); why we value such ideas as privacy, free speech, and uncoerced association. All of these stem from one singular concept: the sovereignty of the individual.

But the Occupy Wall Street (OWS) movement seems to have done away with individualism in their rhetoric. Instead, they plead for the alleviation of society’s needs, the woes of the 99%, the voice of the community. To the occupiers, it seems, America is a homogeneous organic body working in harmony towards a goal of loosely defined progress. Society is thus much like a symphony with individuals working together towards a single composition. When this holistic thinking becomes the standard of evaluation, it doesn’t seem so outrageous to sacrifice some parts to save the whole. After all, wouldn’t any sane person opt to surgically remove a cancerous tumor in order to keep living if given the choice?

We see this today with the words echoed in metropolis centers across America by the OWS — that the top earners in this country have unfairly acquired too much wealth; that corporations are sitting on trillions of dollars worth of capital they should be spending; that more social services like free Health Care are readily practical if only taxes were high enough, and so they should be — all in the name of society’s progress.

In the wake of Progressivism lies the shattered rights of individuals. The rich man suffers from the premise that he is not entitled to his wealth, society is. Businesses suffer from the premise that the jobs they provide aren’t theirs to adjust in times of economic turmoil, they are entitlements to society. Every taxpayer suffers from the premise that if they sacrifice their own happiness and an ever-growing portion of their paycheck to the state, its for the (morally) greater happiness of society.

Progressivism views individuals as a collective and treats it as such. As a result, liberty’s true definition gets muddled, sacrifice becomes a moral virtue, and individual rights become easy to brush aside. America was founded on the ideal of individualism because man’s right to his own life was an axiom based in nature, not a dated and malleable concept. Until the OWS movement embraces that axiom, their message will always be hard to swallow by individuals who value liberty.

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The President’s Half-Truths & Expired Theories

On Wednesday, Harvard’s campus newspaper The Harvard Crimson ran an opinion piece by the President addressing the economy and student loan debt. Unfortunately, the op-ed was riddled with flawed logic, inaccurate statements, and deficient ideology that the American people shouldn’t endure.

First of all, it is worth noting that state-centric approach the President has taken to solve the woes of our time. Speaking to his jobs proposals that did not fair well on the hill, the President said “the best way to attack our economic challenges and put hundreds of thousands of people back to work is through bold action in Congress.” The idea, and the hubris needed to accept it, that the federal government wields sufficient power over the fourteen and a half trillion dollar U.S. economy and can, at will, micromanage it back to health is a bit disconcerting. Such ideas stem from overconfidence in government action and a flawed understanding of a market economy.

Hubris aside, the President bolsters the case for his jobs bill by repeating a faslehood tackled by the watchdog group FactCheck.org. He says:

[…] it’s been so disappointing to see Republicans in Congress block jobs bills from going forward—bills that independent economists say could create millions of jobs though the kinds of proposals supported by Democrats and Republicans in the past.

According to FactCheck.org, “the median estimate in a survey of 34 economists showed 288,000 jobs could be saved or created over two years under the president’s plan.”

Secondly in his piece, the President addressed student loan debt with this:

Living with that much debt forces you to make some tough choices. And when a big chunk of every paycheck goes towards student loans, it isn’t just painful for you—it’s painful to our economy and harmful to our recovery.

Here, the President is insinuating that the economy is suffering from a lack of spending in the private sector as graduated college students make down payments on the loans with money they would have otherwise spent. Unfortunately for Mr. Obama (and for his Keynesian cohorts), that is not the case. According to economic data, personal consumption is at much higher levels today than prior to the recession. And furthermore, consumption is not the engine of an economy, it is production that makes wealth. We should be removing all barriers for the producers of this economy to continue and expand production. With one of the highest corporate income taxes in the world, mounting regulation, and massive deficit spending, accompanied with a growing movement in the downtown regions of many U.S. cities which demand further sacrifice from producers, it is no wonder why the economy is stagnant.

Progressives, such as President Obama believe in a perverted understanding of liberty.  According to them, liberty was not just the freedom from oppression by others, it was the freedom to achieve the most in one’s life — that all peoples were entitled to explore themselves and grow to be the best they can be. From this shore, progressives justified extraordinary breaches of individual liberty including the establishment of the welfare state, extensive regulation of commerce, and atrocious distributions of wealth.

The President seeks to accomplish the same thing as he echos the cries of the Occupy Wall Street hippies for the wealthy to “pay their fair share” in taxes in order to help the country eliminate its deficit problems; as he designs to spend more money we do not have on stimulus projects that do not work.

The President should not get carte blanche to propagate half-truths and expired economic theories. The President can do us all a favor by doing two things: instruct the federal government to move out of the way of the producers of this country and let the marketplace restore itself, and reconcile his progressivism with Jeffersonian liberty in favor of the later.

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