Tag: Fascism

Critical Thinking: Mixed Economies Are All We Have

Mixed Economy

[This is the fourth blog entry in a series on critical thinking which lays out ten guidelines for critical thought. My previous two entries addressed the first rule of critical thought, “Think Systemically.” That rule holds that we can’t really remove our culture’s blinders unless (without prejudice) we’re clear about the meaning of the key systemic terms: capitalism, Marxism, socialism, communism, mixed economy, and fascism. So having already dealt with capitalism, the last installment tried to explain Marxism, socialism and communism in fewer than 1000 words. This week’s episode finishes Rule One by explaining mixed economy and fascism in just three points each. Next time we’ll move on to the second rule of critical thinking, “Expect Challenge.”]

MIXED ECONOMY

Following the Great Depression of the 1930s, the world as a whole has moved away from attempts to implement either pure capitalism or pure socialism. Instead, the trend virtually everywhere has been towards selecting the best elements from each system in a “mixed economy.” As the phrase implies, this involves (1) some private ownership of the means of production and some public ownership, (2) some free and open markets and some controlled markets, and (3) earnings typically limited by a progressive income tax.

Of course what we have in the United States is a highly mixed economy. The U.S. government is, after all, the largest land owner in the nation. Drug, alcohol, food, and medical care markets (and many others) are highly regulated. Following World War II, Americans earning more than $400,000 were taxed at a rate of 91%. Currently, the top income tax bracket is 34%. None of that would be possible under pure free market capitalism.

Similarly, countries claiming to be “socialist” (like Venezuela) or “communist” (like Cuba) have mixed economies. Private enterprise is a key part of both.

Does this mean that the economic systems of the United States and Cuba for example are the same? Not at all. True, both economies are “mixed.” But they differ in terms of whom they are mixed in favor of. The United States economy is mixed in favor of the wealthy and corporations. This is illustrated by consideration of the recipients of recent government bailouts – basically large corporations and Wall Street firms rather than middle or lower class people. The theory at work here is “trickle down.” That is, it is believed that if the wealthy prosper, they won’t hide their money under their mattresses. Instead they’ll invest. Investment will create jobs. Everyone will benefit. So mixing an economy in favor of the wealthy is not sinister; it’s done for the benefit of all.

Cuba, for instance, has a different approach. Its theoreticians observe that historically the wealth hasn’t trickled down – at least not to people living in the Third World (the former colonies). So, (the theory goes) the economy must be mixed directly in favor of the poor majority. The government must adopt a proactive posture and interfere directly in the market to make sure that everyone has free education (even through the university level), free health care, and retirement pensions. Food is subsidized to ensure that everyone eats. And the government is the employer of last resort to provide dignified employment for everyone, so that Cubans are not simply on the dole.

In summary, then, all we have in the world are “mixed economies.” Today, most of them are mixed in favor of the wealthy (once again, on the “trickle-down” theory). Some, like Cuba’s, prioritize the needs of the poor.

FASCISM

What about fascism then? Today the word is thrown around on all sides, and seems to mean “people I disagree with,” or “mean people,” or “those who force their will on the rest of us.” There’s talk of Islamo-fascists. President George W. Bush was accused of being a fascist. Recently President Obama has been similarly labeled.
None of those really capture the essence of fascism. Benito Mussolini, who claimed fascism as a badge of honor in the 1930s (along with Adolph Hitler in Germany, Antonio Salazar in Portugal, and Francisco Franco in Spain), called fascism “corporatism.” By that he meant an alliance between government and large business concerns or corporations.

In terms of Rule One of Critical Thinking, then, we might understand fascism as “capitalism in crisis” or “police state capitalism.” That is fascism is the form capitalism has historically taken in situations of extreme crisis, as occurred in the 1930s following the Great Stock Market Crash of 1929.

More accurately however (in the light of our previous section on mixed economies), we might call fascism police state economy mixed in favor of the wealthy. Fascists are always anti-socialist and anti-communist.

The three elements of fascism then include: (1) A police state (2) enforcing an economy mixed in favor of large corporations, (3) characterized by extreme anti-socialism and anti-communism, and by scapegoating “socialists,” “communists” and minorities (like Jews, blacks, gypsies, homosexuals . . .) for society’s problems.

HUMAN RIGHTS

Both economies mixed in favor of the rich and those mixed in favor of the poor claim to respect human rights. They also blame their opponents for not following suit. The truth is, however, that both types of economies both respect and disrespect human rights. That is, despite claims to the contrary, no system of political-economy has shown consistent respect for all human rights. Instead all systems prioritize them according to what they consider the most basic. This means that capitalism respects some human rights more than others. So does socialism.

Capitalism puts at the top of its list the rights to private property, the right to enter binding contracts and have them fulfilled, as well as the right to maximize earnings. These rights even belong to corporations which under capitalism are considered persons.

On the other hand, capitalism’s tendency is to deny the legitimacy of specifically human rights as recognized, for example, by the U.N. Declaration of Human Rights. For this reason, the United States has never ratified key protocols implementing the Declaration, or other key documents asserting rights beyond the corporate. Moreover, if capitalism’s prioritized rights are threatened, all others are subject to disregard, including the rights to free elections, speech, press, assembly, religion, and freedom from torture. Historical references in the blog entries which follow this one will support that observation.

Similarly, socialism heads its own list with the rights to food, shelter, clothing, healthcare and education. In the name of those rights, socialism relativizes rights to private ownership and the rights to enter binding contracts, and to maximize earnings. If the rights socialism considers basic are threatened, history has shown that it too, like capitalism, will disregard all others.

CONCLUSION

What’s the “take-away” from all of this? Simply this: capitalism is both a simple and complicated system; so is socialism. Both can be summarized quite simply, as can mixed economies, Marxism, communism, and fascism. Capitalism respects some human rights, while disregarding others. The same can be said of socialism and systems that call themselves “communist.”

Critical thinkers should remember those simple summaries and truths about human rights. Doing so will help cut through many of the misunderstandings and distortions that characterize discussion of today’s key issues.

Fascism Is “Capitalism in Crisis”

Princess Bride

This is the third installment in a series on “How Hitler Saved Capitalism and Won the War.”

[Last Monday this series on the Second Coming of Adolf Hitler tried to connect Hitler and the response to the tragedies of September 11th, 2001. In the aftermath of those events, the U.S. Vice President’s wife, Lynne Cheney and her American Council of Trustees and Alumni identified university and college professors as “the weak link in the fight against terrorism.” They found it particularly offensive that some of the latter had identified the September 11th attacks as “blowback” for “American” Hitler-like policies in the Third World. Such response inspired me to do some research on the question paying particular attention to data found in a standard Western Traditions textbook used in many institutions of higher learning, Jackson Spielvogel’s “Western Civilization.” This third installment attempts to clear up some common misconceptions about fascism which many see as threatening to take over the U.S. today just as it did Germany in the early 1930s. (Unless otherwise indicated, all references are to Spielvogel’s text.)]

The thesis here is that privatized globalization is a continuation of Hitler’s system of fascism which is understood here as “capitalism in crisis.” To understand that position, it is first of all necessary to clear up prevailing confusions about fascism itself. Not surprisingly, misunderstandings abound concerning its nature. Most correctly identify fascism with a police state, with institutionalized racism, anti-Semitism, and totalitarianism (though they typically remain unclear about the term’s meaning). Most too are familiar with concentration camps, the Holocaust, and, of course, with Adolf Hitler. Some can even associate the Nazi form of fascism with homophobia and persecution of Gypsies. However, rarely, if ever will anyone connect fascism with capitalism. For instance, here is Jackson Spielvogel’s (Western Civilization) textbook description of Hitler’s thought:

“In Vienna, then, Hitler established the basic ideas of an ideology from which he never deviated for the rest of his life. At the core of Hitler’s ideas was racism, especially anti-Semitism. His hatred of the Jews lasted to the very end of his life. Hitler had also become an extreme German nationalist who had learned from the mass politics of Vienna how political parties could effectively use propaganda and terror. Finally, in his Viennese years, Hitler also came to a firm belief in the need for struggle, which he saw as the “granite foundation of the world.” Hitler emphasized a crude Social Darwinism; the world was a brutal place filled with constant struggle in which only the fit survived” (794).

Here it is interesting to note that racism, especially anti-Semitism, nationalism, propaganda, terror and Darwinian struggle are signaled as defining attributes of the Hitlerian system. Capitalism is not mentioned, though “struggle” is. Perhaps, had the term “competition” been used instead of “struggle,” the basically capitalist nature of “Social Darwinism,” and fascism might have been clearer.

Fascism and Communism

Textbooks typically add to the confusion by closely connecting fascist Nazism and Communism. For instance, Spielvogel’s Western Civilization deals with Hitler’s fascism and Josef Stalin’s socialism back-to-back, linking the two with the term “totalitarianism.” Spielvogel’s transition from one to the other illustrates how the merely mildly interested (i.e. most college students) might come away confused. He writes, “Yet another example of totalitarianism was to be found in Soviet Russia” (801). Spielvogel defines totalitarianism in the following terms:

“Totalitarianism is an abstract term, and no state followed all its theoretical implications. The fascist states – Italy and Nazi Germany – as well as Stalin’s Communist Russia have all been labeled totalitarian, although their regimes exhibited significant differences and met with varying degrees of success. Totalitarianism transcended traditional political labels. Fascism in Italy and Nazism in Germany grew out of extreme rightist preoccupations with nationalism and, in the case of Germany, with racism. Communism in Soviet Russia emerged out of Marxian socialism, a radical leftist program. Thus, totalitarianism could and did exist in what were perceived as extreme right-wing and left-wing regimes. This fact helped bring about a new concept of the political spectrum in which the extremes were no longer seen as opposites on a linear scale, but came to be viewed as being similar to each other in at least some respects” (Spielvogel 789).

Here Spielvogel correctly points out “significant differences between fascism and communism. One is radically right, the other radically left. Nazism is identified with nationalism and racism (not, it should be noted, with capitalism). Communism is associated with Marxism and socialism. In the end, however, the two are viewed as “similar to each other in at least some respects.” Thus, clarity of distinction given with one hand seems to be erased with the other. Confusion is the typical result. Such fogginess might have been cleared had Spielvogel employed greater parallelism in his expression – i.e. had he identified Stalinist communism with police-state socialism and Hitler’s Nazism with police-state capitalism.

National Socialism

Nonetheless, history books and teachers are not solely at fault for student confusion. There are other understandable reasons for the distancing of fascism from capitalism. For one, Hitler’s Party called itself the National Socialist German Workers’ Party (NSDAP). As a result, it is quite natural for students who reflect on the question at all, to conclude that Hitler and his party were “socialist,” or even “communist,” since the two terms are almost synonymous for most Americans. After all, well-indoctrinated students would be justified in reasoning that Hitler did such terrible things he must have been a communist.

Lost in such analysis is the historical realization that during the 1930s, all sorts of approaches to political-economy called themselves “socialist.” This is because they supported state intervention to save the market system that was in crisis during the Great Depression. Thus, there were socialisms of the left as found in Soviet Russia. But there were also socialisms of the right, such as Hitler’s in Germany, Mussolini’s in Italy, and Franco’s in Spain. In other words, interventionist economies easily adopted the “socialist” identification to distinguish themselves from laissez-faire capitalism, which in the aftermath of the Great Stock Market Crash of 1929, had been completely discredited. As we shall see below, in such context (were it politically possible) Franklin Roosevelt’s interventionist program to save capitalism could easily have been called National Socialism instead of the “New Deal.”

However, analysis of fascism’s approach to socialism must recognize the national character of the socialism advocated. [Yet even here, according to Spielvogel, Hitler’s program had a distinctly international dimension eerily evocative of promises associated with the current global economy. Spielvogel recalls, “After the German victories between 1939 and 1941, Nazi propagandists painted glowing images of a new European order based on “equal chances” for all nations and an integrated economic community.” (829)] The critical adjective (nationalist) was intended precisely to distinguish the right wing brand of socialism from its left wing international antagonist. In this connection Hagen Schulze writes in Germany: a New History (2001):

“The catch-phrase “national socialism” itself had been created before the First World War as a means to unite a variety of nationalistic organizations in the battle against “international socialism.” The term was designated to appeal to the working class, but it also proved attractive to young people from the middle and upper classes with romantic notions of Volksgemeinschaft, a “popular” or “national” community” (231)

The implication here is that right wing zealots “co-opted” a popular term to confuse the young – a strategy employed to this day with great success. Here as well one should note that “national socialism” is signaled as a direct opponent of “international socialism.”

Fascism as Mixed Economy

Yet another reason disjoining fascism from capitalism is that fascism was not capitalism pure and simple. (The same might be said of Roosevelt’s New Deal – and even today’s U.S. economy.) Both systems were “mixed economies.” That is, if capitalism’s essential components are private ownership of the means of production, free and open markets and unlimited earnings, socialism’s corresponding elements are public ownership of the means of production, controlled markets and restricted earnings. Both Roosevelt and Hitler combined the two approaches to economy.

Once again, in a period when free market capitalism had been widely discredited, both Hitler and Roosevelt performed a kind of “perestroika.” Soviet Premier, Mikhail Gorbachev would later use the term to refer to the restructuring of socialism, in order to save it by incorporating elements of capitalism. The suggestion here is that more than a half-century earlier, Roosevelt and Hitler had done the opposite; they had incorporated elements of socialism into the capitalist system in order to resurrect it. So, while the means of production most often remained in private hands, others (such as the railroads, the postal system, telephones and highways) were nationalized.

Similarly, while the free market was allowed to continue in many ways, its freedom was restricted by measures socialists had long advocated (e.g. rationing, legalized unions, social security, wage and price controls). Finally, high income taxes were used to restrict earnings and garner income for the state to finance its interventionist programs. [Few recall, for instance, that during the 1940s, U.S. federal income tax rates assessed incomes over $400,000 at a rate of 91% (See Howard Zinn’s A People’s History of the United States, 567-8). Government revenue collected in this way paid for populist programs that modestly redistributed income to the American working class and unemployed. Such redistribution found its way into workers’ pay envelopes, but also took the form of “social wage.”]

None of this is to say that Roosevelt’s and Hitler’s interventionist economies were the same. Mixed economies, after all, are not the identical. The key question for distinguishing between them is, “Mixed in favor of whom?” Some mixed economies are mixed in favor of the working class, others, in favor of their employers. As the product of a liberal capitalist, Roosevelt’s mixture successfully sold itself as the former. That is, while keeping most means of production securely in the hands of capitalists, Roosevelt gained the support of the working classes through his populist programs aimed at gingerly redistributing income downward towards those unable to fend for themselves. In other words, Roosevelt’s “mixed economy” was blended so as to facilitate its defense in populist terms – that is, as mixed in favor of the working class. And the defense achieved plausibility with the American people. Despite objections from more overtly pro-business Republicans, Roosevelt was elected four times in succession. His party remained in control of the U.S. Congress for nearly a half-century.

Hitler had another approach. Influenced by Herbert Spencer and (indirectly) by Friedrich Nietszche (see below), der Fuhrer was an extreme social Darwinist whose programs unabashedly favored elite Aryans and despised “the others,” particularly socialists, Jews, trade unionists, non-whites, Gypsies, homosexuals, the disabled and other “deviants.” On the other hand, Hitler despised “liberal” politicians like Roosevelt, with their programs of social welfare. On those grounds, he vilified the Weimar government which preceded his own. During the early years of the Great Depression, Weimar politicians had attempted to gain the favor of the working class, and to sidestep civil war by implementing wealth distribution programs (233). Funding the programs necessitated tax increases, unpopular with middle and upper classes. It meant strengthening unions along with socialists and communists.

The point here is that is it with good reason that few make the connection between fascism and capitalism. A student of Spielvogel, for instance, would have to be quasi-heroic to do so. After all, he or she would be not only resisting the confusion fostered by the text itself, but would also be swimming against the stream of American propaganda, which treats Hitler’s system as the product of an evil individual, and unconnected with any specific economic system (other than, mistakenly, socialism or communism).

Despite such ambiguity, next week’s blog entry will attempt to demonstrate more specifically that even a closer reading of a text like Spielvogel’s makes unmistakable the connection between fascism and capitalism.

The Western Powers Loved Adolf Hitler

Hitler Love

This is the second installment in a series on “How Hitler Saved Capitalism and Won the War.”

Last Monday this series on the Second Coming of Adolf Hitler began with a brief allusion to the special responsibility Christians have to resist Hitlerism without Hitler. That first entry recalled how Karl Barth, Dietrich Bonhoeffer, Martin Niemoller and others formed a Confessing Church to counter the surrender of Germany’s mainstream churches to Hitler’s nationalism. The example of the Confessing Church and the tenets of its Barmen Declaration should be kept in mind as this series progresses. An underlying thesis here is that given the similarities between Hitler’s Germany and the contemporary United States, would-be followers of Jesus should emulate the defiant example of the Barmen Declaration’s authors.

Today’s entry focuses on the relevance of Adolf Hitler to U.S. policy since 9/11/01:

In the aftermath of the tragic events of September 11th, the American Council of Trustees and Alumni, co-founded by Mrs. Lynne Cheney, the wife of Dick Cheney, the former United States Vice President, accused dissident professors of being the “weak link in America’s response to the attack.” To support its accusation, the Council published a list of more than a hundred recorded statements by such professors characterizing them as “anti-American.” Statements ranged from “Any attack on the Pentagon’s got my vote” to “Ignorance breeds hate,” and America should “build bridges and relationships, not simply bombs and walls.”

Of course, any professorial references to “fascism” and “Nazism” connected with U.S. policy were anathema to Mrs. Cheney’s group. Such accusations, it was alleged, revealed an ignorance or suppression of real United States history. A more genuine narrative of the past showed America to be an unparalleled opponent of Nazism and an unrelenting advocate of freedom and democracy in the face of fascism. Schooling in truer, more patriotic history, Mrs. Cheney said, would make students valued assets in civilization’s war against terrorism.

As a teacher of history in a small liberal arts college in the American South, I found extremely welcome the new centralizing of history’s importance. I also welcomed it as an opportunity to explore a suspicion that had been with me for some time – precisely in connection with the categories of terrorism and anti-terrorism, but especially connected to fascism, Nazism and the study of history.

The suspicion came from reading closely and teaching the standard Western Civilization text many professors use at Berea College, where I teach. It is a book of which Mrs. Cheney might approve – Jackson Spielvogel’s Western Civilization. For a long time, I had been finding unmistakable clues there to support the thesis that far from being a beacon of freedom and democracy, the United States is actually the opposite. More specifically, in relation to most of the world, it has since the conclusion of the Second Inter-Capitalist War (aka World War II) embodied Hitlerism without Adolph Hitler.

Put more starkly, the clues in my students’ textbooks indicated that Hitler’s system actually triumphed in World War II. Moreover, his system was police state capitalism, and Hitler was capitalism’s savior. Even more importantly, police state capitalism continues today in the process of globalization and, most recently, in the U.S. “War on Terrorism.”

Such challenging assertions find additional support in conservative histories like Hagen Schultze’s Germany: A New History, and Paul Johnson’s History of Christianity. Support appears as well in statements by U.S. government officials, and in the daily newspaper.

All of these sources indicate that at the beginning Adolf Hitler enjoyed the support of western powers because of his stern opposition to socialism and communism. Hitler was the West’s champion against the Soviets and those who admired Soviet accomplishments. So after his coming to power in 1933, Hitler’s international sponsors quickly rescinded the harshly punitive clauses of the Treaty of Versailles. They forgave Germany’s debt. British prime minister, Neville Chamberlain hastened to align Great Britain with Hitler. Pius XII referred to der Fuhrer as “an indispensable bulwark against the Russians.” Henry Ford loved the man. The admiration was mutual; Ford accepted a medal of honor from Hitler’s hands, as did the founder of IBM. Trans-Atlantic aviator, Charles Lindbergh and movie actor Errol Flynn were prominent among Hitler’s champions.

With such backing, the Western Powers allowed Hitler’s Germany to rearm. But in the end, der Fuhrer lost the support of his capitalist backers, because he went too far. His crime, however, was not gassing Jews. The West proved remarkably compliant with that. Rather, Hitler’s crime was his attempt to establish control of the world economy – over such capitalist competitors as Great Britain, France, and the United States. He proposed a New World Order, which, he promised, would bring prosperity to all. Nonetheless, Hitler’s attempts to impose his order ultimately met with stiff resistance from his opponents’ Allied Forces. The Second Inter-Capitalist War followed.

Afterwards, the United States emerged relatively unscathed from the conflict, and proceeded to establish its own dominance of the world capitalist system, in ways not extremely different from those employed by Adolph Hitler. That dominance of the capitalist world turned to imperial global dominance following the disappearance of the Soviet Union as the lone super-power adversary of the U.S. at the beginning of the 1990s.

In other words, there is surprising continuity between Hitler’s New World Order and the New World Order embodied in the contemporary system of globalization. To understand this perhaps shocking claim, it is necessary to (1) clear up some common misconceptions about fascism, (2) describe the connections between Hitler and capitalism, (3) indicate how fascism triumphed in World War II and its aftermath, and (4) show how Hitler’s system is continued today in globalization and the War on Terrorism.

These points will be elaborated here (on Mondays) during the coming weeks.