Scrooge &
Marley, Inc. -- The True Conservative Agenda
by Thom Hartmann
"That liberty [is pure] which is to go to all, and not to the
few or the rich alone."
--Thomas Jefferson to Horatio Gates, 1798.
There is nothing "normal" about a nation having a middle
class, even though it is vital to the survival of democracy.
As twenty-three years of conservative economic policies have now shown
millions of un- and underemployed Americans, what's "normal" in
a "free and unfettered" economy is the rapid evolution of a
small but fabulously wealthy ownership class, and a large but poor working
class. In the entire history of civilization, outside of a small
mercantilist class and the very few skilled tradesmen who'd managed to
organize in guilds (the earliest unions) like the ancient Masons, the
middle class was an aberration.
If a nation wants a middle class, it must define it, desire it, and
work to both create and keep it.
This is because a middle class is the creation of government
participation (conservatives call it "interference") in the
marketplace, by determining the rules of the game of business and of
taxation, and by providing free public education to all. And it wasn't
until 1776, when Thomas Jefferson replaced John Locke's right to
"life, liberty and property" with "life liberty, and the
pursuit of happiness" that the idea of a large class of working
people having the ability to "pursue happiness" - the middle
class - was even seriously considered as a cornerstone obligation of
government.
(That was also the first time in history that "happiness" had
ever appeared in any nation's formative documents. As Jefferson wrote in
1817 to Dr. John Manners, "The evidence of this natural right, like
that of our right to life, liberty, the use of our faculties, the pursuit
of happiness is not left to the feeble and sophistical investigations of
reason, but is impressed on the sense of every man.")
Thomas Jefferson laid out in an 1816 letter to Samuel Kerchival what
today would be a blistering attack on the conservative/corporate war on
labor and Bush's union-busting planned privatization of over 700,000
government positions.
"Those seeking profits," Jefferson wrote, "were they
given total freedom, would not be the ones to trust to keep government
pure and our rights secure. Indeed, it has always been those seeking
wealth who were the source of corruption in government. No other
depositories of power have ever yet been found, which did not end in
converting to their own profit the earnings of those committed to their
charge."
He added: "I am not among those who fear the people. They, and not
the rich, are our dependence for continued freedom. ... We must make our
election between economy and liberty, or profusion and servitude. ...
[Otherwise], as the people of England are, our people, like them, must
come to labor sixteen hours in the twenty-four, ... and the sixteenth
being insufficient to afford us bread, we must live, as they now do, on
oatmeal and potatoes; have no time to think, no means of calling the
mismanagers to account; but be glad to obtain subsistence by hiring
ourselves to rivet their chains on the necks of our fellow
sufferers."
A totally "free" market where corporations reign supreme,
just like the oppressive governments of old, Jefferson said could
transform America "...until the bulk of the society is reduced to be
mere automatons of misery, to have no sensibilities left but for sinning
and suffering. Then begins, indeed, the bellum omnium in omnia, which some
philosophers observing to be so general in this world, have mistaken it
for the natural, instead of the abusive state of man."
As Jefferson realized, with no government "interference" by
setting the rules of the game of business and fair taxation, there will be
no middle class.
Although this may come as a sudden realization to many, we've really
known it all our lives.
For example, every year, millions of Americans revisit Charles Dickens
"A Christmas Carol" about Ebenezer Scrooge and Bob (and Tiny
Tim) Cratchit. Yet somehow Americans fail to realize the subtext of the
story (and so many of Dickens' other works). That subtext is that the
middle class is not a normal thing: exploited workers are the norm. In
fact, in the six-thousand-year history of the "civilized" world,
a middle class emerging in any nation has been such a rarity as to be
historically invisible.
As Dickens pointed out, Cratchit lived the typical life of that day's
English working poor. He couldn't afford medical care for Tim, dooming his
son to death or a lifetime of deformity. He had no idea where his
Christmas dinner may come from, let along how to get gifts for his
children, and always lived on the edge of the terror of unemployment and
homelessness. Although he had a full-time job at Scrooge & Marley,
Inc., he was so desperately anxious to keep his job that he worked
weekends and evenings and put up with years of daily abuse from his
employer.
This demonstrates the true liberal/conservative divide. Conservatives
believe what business does is business's business, and government should
keep its nose out of it, even when it leads to centuries of Tiny Tims and
terrified-of-job-loss employees. As the Wall Street Journal noted in 1997,
Alan Greenspan sees one of his main jobs as being to maintain a high
enough level of "worker insecurity" that employees won't demand
pay raises and benefits increases, thus provoking "wage
inflation." ("CEO inflation" is fine with the cons.)
Liberals, on the other hand, subscribe to the notions of the founder of
today's Democratic Party -- Thomas Jefferson -- that if the government
doesn't actively participate in regulating how the game of business is
played, the middle class (what in Jefferson's day were the
"yeomanry") would vanish.
The United States has had two great periods of what we today call a
middle class. The first was from the 1700s to the mid-1800s, and was
fueled by virtually free land for settlers. People owned the means of
their production (their farms), could sell their surplus, and had time to
be among (as deTocqueville pointed out) the most well-educated,
politically active "non-aristocrats" in the world.
As big business grew in the 1800s after the Civil War, the farm-based
middle class collapsed, in large part because the early progenitors of
companies like today's Cargill or ADM came to control the sale and
distribution of farm produce. Middle class farmers rose up, created the
Grange movement as part of their own way of competing with the big ag
companies, and -- seeing that their "representative government"
was being taken over by the largest corporate interests -- launched the
Populist and Progressive movements.
Step one was to limit the size of corporations to limit their power --
thus the Sherman Anti-Trust Act of 1881 (still law, but unenforced for all
practical purposes since Reagan.)
Step two was to take Teddy Roosevelt's advice that, "We must drive
the special interests out of politics. The citizens of the United States
must effectively control the mighty commercial forces which they have
themselves called into being. There can be no effective control of
corporations while their political activity remains." Progressives
pushed hard, and in 1907 a law was passed (still on the books) making it
illegal for corporations to give money to politicians. It needs to be
expanded.
The last parts of the progressive agenda included a direct election of
the U.S. Senate (Senators had been pointed by political machines in the
states) so the progressives may get more democracy and representation, and
the hope that when women voted (besides it being the morally right thing)
they may help break up the old boy's club of big business. (These goals
were achieved in 1913 and 1920.) And, even in the face of corporate
violence that often escalated to murder, Americans struggled to bring
together the budding union movement.
But the middle class of the farmers never really again recovered their
middle class status in America (although there are dying pockets of it
still about, supported by Willie Nelson, Farm Aid, and other groups), and
the Gilded age saw a very Dickens-like America -- a small group of very
wealthy business and land owners and a very large class of desperately
poor workers.
It took the leadership of FDR for government to again take a hand in
creating a middle class, this time via industrialized labor instead of
land (times change, and we'd taken about all the land we could from the
Native Americans).
The Wagner Act of 1935 guaranteed Americans the right to form a union
and bargain collectively with their corporate employers. Combined with the
later G.I. Bill that sent millions of young men and women to college and
technical schools in the late 1940s and early 1950s, not only did America
recover its prosperity, but a second great middle class began forming. A
middle class that wouldn't have existed without "government
interference" in the game of big business.
(Some say WWII was the stimulus out of the depression, and it was an
economic stimulus from which many, like the Bush family benefited [even to
the extent of helping out Hitler], but the real events of the 1930s and
1940s that set the stage for a second American Middle Class were primarily
the Wagner Act, the G.I. Bill, and tax changes ranging from raising the
top rate on the most rich to 90 percent to offering an emerging middle
class home interest tax deductions. Spending money on weapons that serve
no useful purpose after they're used doesn't stimulate an economy the way
building roads, bridges, houses, or domestic consumer industries, which
"keep on giving," does.)
And to stimulate that domestic economy, we instituted progressive
taxation, which gave workers more to spend, thus stimulating demand for
more goods and services.
Progressive taxation has a long history: As Jefferson said in a 1785
letter to James Madison, "Another means of silently lessening the
inequality of property is to exempt all from taxation below a certain
point, and to tax the higher portions of property in geometrical
progression as they rise."
But the conservatives -- who since the days when John Adams called
working people "the rabble" and Alexander Hamilton suggested
they should play no (or only a token) role in government -- fought back. A
true middle class represented a threat to the aristocrats and
pseudo-aristocrats of America's conservatives. They may have to give up
some of their power, and some of the higher end of their wealth may even
be "redistributed" - horror of horrors - for schools, parks,
libraries, and other things that support a healthy middle-class society
but are not needed by the rich who live in a parallel, but separate, world
among us.
At the height of early participation in the newly empowered union
movement (at one point 35 percent of American workers were union members),
in 1947, over Truman's veto, congress passed the Taft-Hartley Law that
significantly weakened union protections defined (and working well) under
the 1935 Wagner Act. Taft-Hartley was (and still is) a powerful weapon for
employers over employees (banning sympathy strikes, etc.), and was used,
although most aggressively in the southern states (who declared themselves
"right to work" states under another provision of Taft-Hartley)
until Reagan declared a national war on unionization with his attack on
PATCO in 1981.
The cons had first launched their attack on labor in 1947, and Reagan
brought it to full fruition: education was next.
Today, although there are still some educational benefits to GI's
(Jessica Lynch joined the army to get financial aid to go to college to
become an elementary school teacher, for example), they're minimal and
hard to both accumulate, track, and take advantage of (and must be paid
for in most cases). Although Jefferson started the University of Virginia
with the notion that part of building a middle class (necessary to a
democracy, he said) would require people with some education, and
advocated a national program of free education up to and including
university levels, the last state to fall from that ideal was when
Governor Ronald Reagan ended free enrollment in the University of
California system.
Jefferson said, in an 1824 letter: "This degree of [free]
education would ... give us a body of yeomanry, too, of substantial
information, well prepared to become a firm and steady support to the
government."
The attack on higher education was being won (and continues with cuts
in college grant programs), and the cons moved to attack the third
requirement for a society to produce a middle class: progressive taxation.
This, of course, infuriates the elite cons who seem to truly believe that
a CEO actually works 500 times harder than his employees (or is 500 times
smarter).
But history shows that the third pillar of creating a middle class
requires a modest control of how wealth is distributed. The richest, who
benefit the most from our society, pay proportionately more, so the middle
class can have home interest deductions, child tax credits, free public
education, and health care. Progressive taxation has helped create every
middle class in the First World, and without it the middle class will
vanish (to Steve Forbes delight, apparently).
As Thomas Jefferson wrote to James Madison in 1784, "Taxes should
be proportioned to what may be annually spared by the individual."
And, as earlier noted, as wealth rises, so should taxes --
"geometrically."
But as president, Reagan cut the top tax rate for billionaires from 70
percent to 28 percent, while effectively raising taxes on working people
via the payroll tax and using inflation against a non-indexed tax system.
It was another hit to the already-beginning-to-shrink middle class, to be
followed by more "tax cut" bludgeons during the first three
years of the W. Bush administration.
Nonetheless, a never-ending parade of conservative economists and
commentators march through our living rooms daily via radio and TV,
assuring us that it is good for American workers to go along with the
Wal-Martization of America, accept lower pay and few benefits, and fear
for their health, so multinational corporations can "level the
playing field" for labor.
They say it will create winners in the system, and they are right. The
winners are the multinational corporations, and the losers are the rest of
us. No matter, say the TV commentators -- nearly all millionaires
themselves. "Free trade" sounds sexy; "protectionism"
sounds downright selfish. And it's all too complicated to explain in 20
seconds, even quoting Jefferson.
But, unless we repeal Taft-Hartley; start enforcing the Sherman act,
provide free education for Americans (and not just Iraqis); abandon
WTO/GATT and NAFTA; restore progressive taxation (including on dividend
income); force corporations to pay their fair share; and go back to
selective tariffs to protect domestic industries and stop offshoring to
explicitly bring home the ability for us to make our own clothes,
furniture, autos, and electronics, the conservatives will have won and the
middle class -- and, thus, democracy -- will lose.
As Jefferson warned in an 1826 letter to Will B. Giles, even then some
conservatives "now look to a single and splendid government of an
aristocracy, founded on banking institutions, and moneyed incorporations
under the guise and cloak of their favored branches of manufactures,
commerce and navigation, riding and ruling over the plundered ploughman
and beggared yeomanry. This will be to them a next best blessing to the
monarchy of their first aim, and perhaps the surest steppingstone to
it."
Jefferson's vision rose to fruition in the Gilded age, was fought back
by FDR, and again rose its antidemocratic head under Reagan, the first
Bush, GATT/NAFTA Clinton, and Dubya.
If conservative economics are allowed to continue, and we fully revert
to the way life was lived by the average person in America in 1890 or
Dickens' England (over 40 million in America already have, by the way,
many in the past 3 years), there will be no more middle class, just a few
more rich CEOs and Bushies, and a lot more terrified workers living in
slavery to debt and terrified of unemployment or a serious health crisis.
It'll be a marvelous thing for the profits of the multinationals
(including those who supply our "news"), but the end of a way of
life in America, and possibly around the world, since so many nations
imitate our lead. And only you and I - the ploughman and yeomanry - can
stop them and restore an America where it's possible to raise a family on
one income and still have enough for housing, transportation, food,
education, vacations, health care, and a decent retirement.
The middle class is not a "normal" thing: it's just the core
that holds together democracy and an informed, healthy, and active
citizenry.
To bring it back from its steady decline since the Reagan era is going
to take a lot of active work spreading the word (call talk radio, blog,
forward this article and similar ones, write a letter to the editor to
your local paper), and participation in or contact with elected officials
at all levels (writing elected officials, joining and volunteering to help
your favorite local political party or activist organization, showing up
for rallies, etc.). We must get out the vote and remove the whole con
bunch from the White House and Congress, repeal Taft-Hartley, get
corporate money and lobbyists out of our governmental processes, restore
progressive taxation, rebuild our schools, return to the tariff system
that protected American industries (and jobs and communities) from 1786
until 1996, strengthen Social Security, and turn Medicare into a universal
single-payer health system (among other things).
Are you willing to join? Or would you prefer to re-read "A
Christmas Carol" to your children, so they can understand the future
America that conservatives have in mind for them?
Thom Hartmann (thom at thomhartmann.com) is a Project Censored
Award-winning best-selling author and host of a nationally syndicated
daily progressive talk show that runs in 57 markets from coast-to-coast. www.thomhartmann.com.
His most recent books are "Unequal
Protection: The Rise of Corporate Dominance and the Theft of Human Rights,"
"The
Last Hours of Ancient Sunlight," "We
The People: A Call To Take Back America," and "What
Would Jefferson Do?: A Return To Democracy."
##