Rad Geek People's Daily

official state media for a secessionist republic of one

Posts filed under Taxes

In which I fail to be reassured

The other day, I posted some remarks on why the Freedom Train metaphor bugs me, and why I think that market anarchists should generally think about aligning themselves with, you know, anarchist organizations, rather than minarchist efforts like the Libertarian Party and Chairman Ron’s Great Libertarian Electoral Revolution. Brian Doherty kindly took notice of my post over at Hit and Run. Like most posts at Hit and Run, it provoked a lot of comments, mostly from the usual suspects, and mostly not going much of anywhere productive. (Several minarchist commenters apparently didn’t bother to read the post, as they would rather spend their time rehashing the minarchist-anarchist debate from the get-go. Did you know that anarchy might work on the small scale, but will never work in a big, industrialized society? Or that anarchy will never work in practice because people will have to recreate the State to keep the Mafia from running everything? Man, I never heard that stuff before. Sign me up for some of that limited government!)

However, there are a few that are worth some remark.

NoStar offers the following encouraging thought on anarchist-minarchist unity:

How about we both fight and defeat them before we then turn and fight each other.

Think of Mao’s communists and Chang Kai-Chek’s nationalists combining to fight the Japanese.

Once the common foe is gone, we can nitpick the details.

— NoStar, 25 January 2008, 8:35pm

Call me a nattering nabob of negativism, but somehow I fail to be entirely reassured by the thought of being Chiang Kai-shek to the minarchists’ Mao Zedong. Or, for that matter, vice versa.

Moderate or pragmatist limited government libertarian Nick has this to say:

The way to effect change is to build a coalition of people who are dedicated to the change you want to make and then work to convince the normal people in the middle. Ron Paul is a great example of getting a coalition together, altho his campaign could use some work in convincing moderates to his side.

— Nick, 26 January, 10:24am

Well then.

In the interest of diplomacy, I will just kindly suggest that if Ron Paul’s triumphant single-digit, third-to-fourth place primary campaign is your idea of a great example of getting a coalition together and making change through the power of numbers, I will be holding out for a better proposal.

Meanwhile, limited governmentalists are just full of suggestions for how anarchists can help the cause of anarchy by … not talking about anarchy, and spending their time and energy on building up limited-government organizations instead. Apparently wanting to work on promoting your own cause, rather than other causes with fundamentally different ideas about ultimate goals, is a sign of a self-destructive fetish for purity. Of course, the fact that this going-along-to-get-along in the name of political realism only seems to go in one direction — I don’t hear any minarchists talking about how they plan to swallow their love of small governments in order to sign up for going anarchist efforts, like, say, CopWatch — might lead one to be just a little suspicious of the motives behind the appeal. But, anyway.

Brandybuck, for example, is not an anarchist. But he’s sure that if he were an anarchist, he’d be perfectly happy to spend his time working on achieving minarchy rather than anarchy. He asks:

He is unwilling to compromise any of his political points. But such an unwavering demand for pure anarchy is going to net him only misery. Is this a man who would reject a 50% tax cut because it would leave the remaining 50% of taxes in place? I think it might be.

— Brandybuck, 25 January 25 2008, 9:38pm

Brandybuck’s got another think coming.

I would quite happily take a 50% tax cut, if I could get it; and I would consider a 50% reduction in Leviathan’s pirated wealth to be a massive step in the right direction. I would much rather that the whole thing were done away with, but in the meantime, I will take what I can get.

But what I would not do is waste my time trying to build up a think tank or political party that are devoted to the goal of cutting taxes by 50% and no further. That’s hardly the only way in the world to make concrete progress towards cutting taxes by 50%, and if you think that it is, you need to think harder about how social change, or even basic negotiations, actually work in the real world. (As for negotiations, if you start out asking for what you actually want, rather than what you think you can get, you’ll often end up getting less than you wanted in the end. But you’ll do a damn sight better than if you start out asking for what you think you can get, and then bargain down from there. As for social change, there are a hell of a lot more movements that have made substantial social changes than there are political parties or party caucuses. If you think that the only way to get things done is to jump into a political party, then your lack of creativity is a problem for you, not a problem for me.)

Brandybuck is also incensed that I would claim that limited government libertarians actually do believe in government:

Personally, I have no desire to join any movement whose members [minarchists] will turn around and shoot me in the end.

This is a vile mischaracterization of minarchists. Minarchists are not statists. They are anti-statists. What makes them different from anarchists is the pragmatic realization that anarchy is not viable. If a state is inevitable, then let’s see to it that it will be as small and as unobtrusive as possible.

— Brandybuck, 25 January 25 2008, 9:38pm

This is, to be blunt, complete nonsense. If minarchists believe in limited government, then they believe in the right to make anarchistic arrangements not viable by prohibiting at least some individual people from seceding or otherwise withdraw their allegiance from the minimal state in favor of competing defense associations, or in favor of individual self-defense. If Brandybuck believes that I have the right to tell his limited government to go to limited hell, and to withdraw entirely from it to make my own arrangements, then his imagined minimal state is really not a sovereign state at all, but rather one voluntary defense association amongst many, and Brandybuck is no minarchist, but rather an anarchist. (In which case, welcome, comrade!) But if he does believe that a limited government has some right to make me use or pay for its services, even if I would prefer to withdraw from it and make arrangements of my own, then, like any other government program, this one is going to take the use of force or the threat of force by limited government cops. In which case my characterization of the minarchist political platform as including a plank on shooting anarchists, whether vile or not, is an accurate one. There is no third option. (Of course, minarchists accept a right of free speech, meaning that they will not shoot anarchists who just talk about anarchy. But in order to maintain a minimal state, they have to be ready to shoot anarchists who actually attempt to do something about it. And I care about the latter at least as much, if not more, than I care about the former.)

A bunch of people seem to have misinterpreted my argument as an argument for not doing anything, or for anarchists never to work together with minarchists on issues of common concern. Thus, for example:

Great. The metaphor’s nonsensical. Let’s stop working together against the great breadth of government power.

— Vent, 25 January 2008 7:43pm

Of course, if I had made an argument to the effect that working together with limited statists was always and everywhere destructive to the cause of freedom, then replying to the argument this way would be about as sensible as saying Great. Let’s stop trying to put out this fire by pouring gasoline on it. Well, yeah, that’s what you should do. If working together requires you to make trade-offs that actively impede the goals you’re supposedly working for, then you should stop trying to work together. The primary goal of libertarianism ought to be freedom, not maximizing the number of self-identified libertarians working together. The two are not the same, and if latter interferes with the former, then the former is always more important.

That said, that’s not the argument that I made. I’m not proposing that anarchists sit around and do nothing; I am proposing that they choose different means in order to get things done. Nor am I proposing that anarchists never work together with minarchists on anything. I’m willing to work with all kinds of people. I am proposing that we reconsider the scope of the cooperation, and the terms on which we do the work. As I said in the original post:

I would certainly agree that market anarchists should be willing to work together with coalition partners on particular issues of concern — the drug war, corporate welfare, the war on Iraq, etc. — whether those coalition partners are minarchists, or state Leftists, or whatever else. But who you’ll work with in issue-based coalitions is a different question from whose movement you’ll participate in, or what formations you’ll make the primary venue for your broader organizing and activism.

Here, as elsewhere, I’d argue that there’s a lot to be said for making things with small pieces loosely joined. There are plenty of times when it makes sense for anarchists to work together with statists of various stripes, as part of a common front for a common cause. But when we do, I’d suggest that the cooperation should be limited to fighting to win on the issue at hand — not spending years building up multi-purpose, long-term institutions or political parties whose goals have nothing in particular to do with anarchism. And I’d suggest that when we work in coalition, we do so through organizations of our own, on our own terms, and speaking for ourselves, not through centralized, non-anarchist smaller-government organizations that require us to spend our time talking about everything but, y’know, anarchy, in order to participate.

Probably the most common critical reply, though, is a claim that anarchists should work to build up minarchist parties because (1) in the current political climate, the practical differences between anarchistic and minarchistic politics are triflingly small (minarchists want to get rid of about 99% of existing government; anarchists want to get rid of the remaining 1% too); (2) where there are differences in ultimate goals, in the current political climate, the stuff that only the anarchists want to get rid of can’t realistically be gotten rid of, whereas some of the stuff that both anarchists and minarchists want to get rid of can realistically be gotten rid of (the war on drugs, or marginal tax rates, or whatever); and (3) once we have gotten rid of the 99% of stuff that anarchists and minarchists agree on, whenever that happens, then getting rid of that last 1% will be much easier for anarchists to pull off than it would be to get rid of that stuff now.

Thus Zeph, in comments here:

A minarchist system would have minimal ability to block the tracks, even if it had an interest in so doing.

Sisyphus old lad, would you rather push a pebble or a planet up a hill?

And Brandybuck, who, while a minarchist, is ever helpful to inquisitive anarchists:

I also suspect that it would be much easier to achieve true anarchy if you start from a minarchist state than from an maxarchist state.

On the train anarchist kerem tibuk:

Besides when the time comes when a minarchist government agresses against an individual it is much easier for that individual to fight back since the state would be much less powerless and the individual much more powerfull.

prolefeed:

Ummm, when we get to a government that is about 1% the size it is now, this will become a relevant question. Not exactly holding my breath over that happening. Until we effing reverse the growth of government, the 0%ers and the 0.01%ers and the 1%ers and the 50%ers and even the 99%ers should all be pretty solid allies.

But accepting this argument would depend on my accepting a number of premises whose evidence is weak at best, or which are definitely wrong.

I would, for example, have to accept that a smaller, more limited government would have a harder time suppressing anarchistic activity than a larger, less limited government would. It might seem like this is obvious: bigger governments have more money, more hired thugs, more surveillance spooks, and more tyrannical laws that they can exercise in order to suppress anarchists than smaller governments do. But, on the other hand, bigger governments also have much more to do than smaller governments do. Under the present system, government cops fritter away time, attention, and energy trying to enforce all kinds of asinine laws. Under a minarchy, the government police forces would still exist, but they would have basically nothing to do with their time other than (1) dealing with small-time property crime, and (2) suppressing anarchistic activity. I think there’s very little guarantee that it would be easier to establish and sustain institutions that counter certain kinds of state power when the state is lean and mean, than there is now when it’s large, bloated, and corrupt.

In a similar vein, I would have to accept that the most likely way to significantly reduce the scope and power of government is to spend the next several decades working from within the state system in order to prune away this or that invasive policy — drug laws, abortion laws, immigration laws, the war in Iraq, especially stupid provisions of copyright law, egregiously high taxes, the most outrageous parts of immigration law, or whatever — and then only to go after the supporting pillars of state power — government policing and prisons, government courts, government military, government border control, the existence of even minimal taxation, etc. — once all the policy issues have been cleared out of the way. That may seem obvious, but actually it’s a substantial claim in need of defense, and I have not yet been given any reason to believe that this is true.

Of course, it’s true that if you have already committed yourself to making change through the vehicle of electoral politics, then partial reform on the particular policy issues is going to be much closer to being within your grasp than, say, abolishing government policing in favor of voluntary defense associations. But that’s only if you’ve committed yourself to electoral politics already; it certainly can’t be invoked as an argument for jumping into the Libertarian Party without assuming part of what it needs to prove. In point of fact, if options other than electoral politics are allowed onto the table, then it might very well be the case that exactly the opposite course would be more effective: if you can establish effective means for individual people, or better yet large groups of people, to evade or bypass government enforcement and government taxation, then that might very well provide a much more effective route to getting rid of particular bad policies than getting rid of particular bad policies provides to getting rid of the government enforcement and government taxation.

To take one example, consider immigration. If the government has a tyrannical immigration law in place (and, just to be clear, when I say tyrannical, I mean any immigration law at all), then there are two ways you could go about trying to get rid the tyranny. You could start with the worst aspects of the law, build a coalition, do the usual stuff, get the worst aspects removed or perhaps ameliorated, fight off the backlash, then, a couple election cycles later, start talking about the almost-as-bad aspects of the law, build another coalition, fight some more, and so on, and so forth, progressively whittling the provisions of the immigration law down until finally you have whittled it down to nothing, or as close to nothing as you might realistically hope for. Then, if you have gotten it down to nothing, you can now turn around and say, Well, since we have basically no restrictions on immigration any more, why keep paying for a border control or internal immigration cops? Let’s go ahead and get rid of that stuff. And then you’re done.

The other way is the reverse strategy: to get rid of the tyranny by first aiming at the enforcement, rather than aiming at the law, by making the border control and internal immigration cops as irrelevant as you can make them. What you would do, then, is to work on building up more or less loose networks of black-market and grey-market operators, who can help illegal immigrants get into the country without being caught out by the Border Guard, who provide safe houses for them to stay on during their journey, who can help them get the papers that they need to skirt surveillance by La Migra, who can hook them up with work and places to live under the table, etc. etc. etc. To the extent that you can succeed in doing this, you’ve made immigration enforcement irrelevant. And without effective immigration enforcement, the state can bluster on as much as it wants about the Evil Alien Invasion; as a matter of real-world policy, the immigration law will become a dead letter.

When anarchists participate in compromise efforts, such as the LP or the Ron Paul campaign, those efforts pretty much always only allow one of these two routes: the policy-reform-first route. They don’t allow for the evasion-first route because to set up and sustain the kind of resources that are necessary to enable evasion and resistance of government laws, you’re already trying to take the train to a station where the minarchist passengers don’t want to go: that is, you’re creating counter-institutions that are directly competing with, and attempting to undermine, precisely those state functions (law enforcement, the courts, military and paramilitary defense of the state against its declared enemies) that minarchists intend to keep. But why should we prejudge the contest in favor of the minarchist-friendly route? After all, which of these is the better strategy for getting rid of immigration laws? Well, as far as effectiveness goes, I don’t actually think that that’s a very hard question to answer. Look at all the practical success that the immigration reform movement has had in liberalizing immigration laws over the past thirty years or so. Here, I’ll make a list for your convenience:

Now, compare the success that illegal immigrants, state-side family members, coyotes, good samaritan ranchers, off-the-books employers, et al. have had in getting people across the border in defiance of immigration law, while avoiding or minimizing government interference:

Estimated number of illegal immigrants in the United States

Here's a graph showing 3,000,000 people in 1980; 3,300,000 in 1982; 4,000,000 in 1986; 2,500,000 in 1989; 3,900,000 in 1992; 5,000,000 in 1996; 8,400,000 in 2000; and 11,100,000 in 2005.

Source: Pew Hispanic Center, via CNN

From a practical standpoint, if I’m looking for a going concern, I’d say that the root-striking approach seems to be making a lot more concrete progress than the branch-pruning approach, at least on the specific issue of immigration.

Of course, there are concerns other than practical success. For example, many minarchists are likely to believe that there is a moral advantage to working from within the political system, and convincing those around you to change their votes, rather than consorting with criminals and making an end-run around the law. That’s reasonable enough, and may be a reason to stick to electoral reform — if you are a minarchist. But, of course, I’m not: I’m an anarchist; I think that government laws have no color of authority whatsoever; and I don’t think that people who evade or defy immigration laws are criminals in any sense worth caring about. And my earlier post was directed mainly towards other anarchists on a point of anarchist strategy; so if your counter-argument starts out by presupposing a certain level of respect for government law, then it’s going to be a non-starter as a response to my argument.

Setting moral concerns aside, there is a pragmatic concern that strategies that bypass legal reform in order to evade the law are more risky. Electoral reform campaigns may not get the results as quickly or as extensively as black markets do, but they’re also less likely to get you shot or thrown in jail by the government. That’s true enough. But, on the other hand, it’s easy to overestimate the risks of black market activities; the fact is that tens of millions of people get away with this stuff every day already, and the more talented and resourceful people turn their attention towards evading and resisting tyrannical laws rather than pouring their resources down the toilet of political reform campaigns, the more people will be able to get away with, and the more reliably they’ll be able to get away with it. Moreover, just as there is far more to political campaigning than just the act of voting or declaring a candidacy or lobbying or filing suit — there’s also fundraising, crafting and running ads, house parties, holding debates, canvassing, op-eds, buttons, bumperstickers, and the rest — there is also much more to an evasion strategy than direct participation in black market activities. There is also moral agitation and advertising aimed at convincing people of the legitimacy, or at least the unimportance, of so-called criminal activity, with the usual set of op-eds, buttons, bumperstickers, debates, etc.; there’s legal education and legal defense funds; there’s nonviolent civil disobedience; there are grey market activities that provide arguably or completely legal services that nevertheless help black market operators evade detection; and any number of other things, too. No doubt lots of us can’t or won’t take the risks involved in direct black market activity — because our circumstances or our temperament prevent us from taking it on — but if you can’t take on that much risk, you can still do plenty of things to concretely aid the broader strategy, without putting yourself in the path of the law.

Now, for all that I’ve said, it still may be the case that, for some other issues, the branch-pruning approach is more likely to be effective than the root-striking approach. But if you are an anarchist, then I think it would behoove you to think carefully about whether this really is the case, before you start putting your limited time and energy into a branch-pruning political campaign. Certainly there are plenty of examples I could cite other than illegal immigration. Compare the concrete progress of lobbying and litigation for liberalizing copyright law to the concrete progress of music and movie pirates in simply evading the enforcement of copyright law. Or compare the concrete progress of lobbyists at liberalizing drug laws to the concrete progress of drug smugglers and drug dealers at moving drugs to willing customers in spite of the laws against it. However many policy issues there may be that will be more easily addressed by the route of legal reform, rather than by the route of undermining the state’s capacity to detect and retaliate against law-breaking, I think there is every reason that they will be few enough, and far enough between, that it just doesn’t make practical sense for anarchists to spend their limited resources on open-ended, long-term commitments to building up smaller-government institutions. Not if the price is deferring talk about the illegimacy of the State as such, or about the right of people to evade its laws, or about the right of people to create counter-institutions to defend themselves against its law enforcement, in order to keep our outreach palatable to more or less limited statists. Anything that is worth getting through that kind of co-operation can be got through limited-scope, issue-driven coalitions. And we can do that kind of outreach and activism without signing onto intra-party Accords that sacrifice anarchist rhetoric or practical action in the name of taking one for the party.

Anarchism is about anarchy. The activism, agitation, and organizing that we do ought to reflect that. If it doesn’t, then you may very well be wasting your time and talents.

Two brothers

There’s a famous midrash about two brothers. One was single and the other had a wife and children. Each night each one would go out in secret to deliver a gift of wheat to his brother’s home. The brother with the family would figure: I am so fortunate to have a family; my brother has nothing; let me at least give him some extra wheat. The single brother would figure: I live alone, but my brother has a family to support; I have no need for all this wheat; let me give him some of the extra. One night, while each was delivering wheat to the other, they met on the road, cried, and embraced. The place where they met became the Temple Mount.

There’s a modern version of this midrash. Each night the two brothers go out in secret to take wheat from his brother’s field. The single brother rationalized: my brother is so fortunate to have a family; I have nothing; at least let me have a larger portion of wheat. The brother with the family rationalized: I have a family to support, but he lives alone; he has no need for all that wheat; let me take some of the extra for myself. One night, while each was walking home with the wheat he had taken from the other, they met on the road, cried out, and fought. The place where they met became the site of Parliament.

(Thanks to Micha Ghertner @ The Distributed Republic 2007-12-24.)

“What kind of victory is that?” Jane Rule on Government-approved Gay Marriage

Jane Rule, a feminist before the Second Wave and a pioneer lesbian novelist before Stonewall, died last month at the age of 76. She was born an American but moved to Canada with her lover Helen Sonthoff, where they would live for the rest of their lives, in order to escape the persecution of the McCarthy era. In her novels, she was known for her nuanced and sympathetic portraits of lesbian characters’ lives–one of the first novelists to write books about lesbians in which her characters lived through ordinary human problems, were not punished for their sexuality, and were not treated as psychological freaks. Her essays, columns, and correspondence were notable for her generosity, patience, and also vigorously independent thought. Although she wrote passionately and movingly about her own life-long love affair with Helen, she was sharply critical of the gay rights movement’s efforts to win State recognition for gay and lesbian marriages. Here is what she wrote for the Spring 2001 issue of BC Bookworld; while I’d urge a radical people-power solution to problems of welfare, based on mutual aid between workers rather than State redistribution, the rest of the essay is almost entirely right-on. The solution is not to lodge same-sex relationships firmly under the eyes and the bootheels of the marital State; it is to free everything that’s valuable in both straight and gay love, intimacy, and commitment from the State’s stifling embrace.

The Heterosexual Cage of Coupledom

Over thirty years ago, when homosexual acts between consenting adults were decriminalized, Trudeau said that the government had no business in the bedrooms of the nation.

Until a few months ago that privacy was respected.

Now the government has passed a law including gay and lesbian couples as common-law partners with the same rights and responsibilities as heterosexual common-law partners. Any of us who have lived together in a sexual relationship for over two years must declare ourselves on our income tax forms, or we are breaking the law.

With one stroke of the pen all gay and lesbian couples in Canada have been either outed if they declare or recriminalized if they do not. Our bedroom doors have come off their legal hinges.

Why then is there such support for this new law among gay people? Svend Robinson spoke in favor of it the House. EGALE, the national organization for gays and lesbians, encouraged its passing.

It is celebrated by all of them as a step along the road to total social acceptance, to a day when those of us who wish to can be legally married, our relationships just as respectable as those of heterosexuals.

But common-law partnerships were never about respectability. They were forced on couples as a way of protecting women and children from men who, by refusing to marry, were trying to avoid responsibility, free to move on when they felt like it without legal burdens of alimony and child support, without claims on their property or pensions.

There are some gay and lesbian couples raising children who, because they are not allowed to marry, may find a common-law partnership useful for benefits in tax relief, health benefits, pensions, if they can afford to expose themselves to the homophobia still rampant in this country. The law may also protect those who are financially dependent on their partners from being cast aside without financial aid.

But the law, far from conferring respectability, simply forces financial responsibility on those perceived to be irresponsible without it. What about those poor who are unable to work because they are single parents or ill or disabled?

The single mother on welfare has long had her privacy invaded by social workers looking for live-in men who should be expected to support her and another man's children. Now single mothers must beware of live-in women as well. The ill and disabled will also be forced to live alone or sacrifice their benefits if their partners have work.

Over the years when we have been left to live lawless, a great many of us have learned to take responsibility for ourselves and each other, for richer or poorer, in sickness and in health, not bound by the marriage service or model but on singularities and groupings of our own invention.

To be forced back into the heterosexual cage of coupledom is not a step forward but a step back into state-imposed definitions of relationship. With all that we have learned, we should be helping our heterosexual brothers and sisters out of their state-defined prisons, not volunteering to join them there.

We should all accept responsibility for those who must be dependent, children, the old, the ill and the disabled, by assuring that our tax dollars are spent for their care. We should not have any part in supporting laws which promote unequal relationships between adults, unnecessary dependencies, false positions of power.

No responsible citizen should allow the state to privatize the welfare of those in need, to make them victims to the abilities and whims of their legal keepers. Human rights are the core responsibility of the government.

The regulation of adult human relationships is not.

To trade the freedom we have had to invent our own lives for state-imposed coupledom does not make us any more respectable in the eyes of those who enjoy passing judgment. We become instead children clambering for rule, for consequences to be imposed on us instead of self-respecting, self-defining adults.

Those of us who want to legalize our relationships for the protection of our children, for our own security, for whatever reason, should have the right to do so but not at the expense of imposing that condition on all the rest if us.

What we have now is neither the right to marry nor the right to remain private and independent in our relationships.

What kind of victory is that?

— Jane Rule, BC Bookworld (Spring 2001): The Heterosexual Cage of Coupledom

Via Women’s Space / The Margins 2007-12-02.

Alexander Hamilton and the birth of American state capitalism

The most recent issue of the Boston Review has an interesting article from William Hogeland on Alexander Hamilton and his recently-acquired fan club among the court intellectuals of the Beltway Consensus — with Hamilton’s recent biographers and neo-conservativecreepy spendthrift fascist David Brooks at the fore. The article is almost entirely right-on; here’s one of the most important parts, on the political economy that was brought forth in the early Constitutional period, through the ministrations of the newly empowered central government:

David Brooks, for his part, embraces the thrust of Hamilton's finance plan, writing that Congress's decision to fund the federal debt at Hamilton's urging formed the basis of the fluid capital markets that are today the engine of world capitalism. The quick-and-dirty textbook version is that Hamilton gave the country sound credit. What that means is rarely made explicit: the first treasury secretary found ways to support, at all costs, the federal bondholders whom he and Morris had been frustrated in supporting in the 1780s. In 1791 Hamilton finally got the U.S. Congress to commit to paying reliable interest on its debt instruments, halting both their face-value depreciation and the free-for-all speculation in them, making them articles of rational trade in high-finance marketplaces. (Following British models, Hamilton also used proceeds of the U.S. Post Office to create a sinking fund; such funds were dedicated to paying down each issuance of a public debt, making bonds reliable.) Hamilton's idea, bold and creative, was to let the government get its hands on easy money by letting bondholders and traders grow American fortunes lending that money.

Brooks also associates Hamilton's authorship of modern capitalism with what historians call assumption: Hamilton persuaded Congress to assume the states' war debts in the federal one, thus swelling the federal obligation to massive proportions. But that idea wasn't original with Hamilton, and by overlooking its history Brooks and other Hamiltonians obscure its purposes. Robert Morris too had wanted the Confederation Congress to assume state debts, placing all public debt in federal hands and making it so big that federal taxes would have to be levied to pay interest on it. That dream came true when the U.S. Congress, having agreed to assume state debts, ran up a deficit, as Hamilton was happy to report in December of 1790.

A new tax, Hamilton told Congress, was the only way to solvency. He proposed not only expanding duties on imports (the old, embattled impost had finally been passed in the first session) but far more significantly, he urged Congress to impose the first federal tax on an American product. Just as Morris had hoped, assumption of state debts had become the wedge for opening the purses of the people, enforcing domestic federal taxation to support federal bondholders. In fact, passing a federal domestic tax (on distilled liquor, a fact that has helped obscure its real purpose) was so important that in the first funding proposal he submitted to Congress Hamilton appended a fully drafted bill. It was characteristically Hamiltonian (and reminiscent of health-care-reform-era Hillary Clinton), replete with distilling and tax-policy minutiae and overwhelmingly, even patronizingly, thorough, with every loophole closed, every question pre-answered, every problem sure to be caused by Congress's financial ineptitude solved. The bill was controversial, and Hamilton's patience must have been tried when Congress, seeming to bumble, passed funding and assumption yet ignored the whiskey tax—the brilliant law that would pay for them. But he was becoming a politico. In reporting the deficit, he calmly referred Congress back to the tax law he'd already written for them almost a year earlier. They were politicos too. They passed it—now that they had to—almost unmodified.

The structure of that tax sharply qualifies assertions made by Brooks and others that Hamilton wanted government power to enhance opportunity, mobility, and democracy. The reasons Hamilton gave Congress for going beyond a foreign impost and imposing domestic taxation are telling, both for what he said and for what he left unsaid. In the same 1790 report Hamilton reminded Congress that merchants, naturally, paid import duties, and that since merchants had always been the class most committed to American nationhood, taxing them further would be onerous and disaffecting; hence the need for a new tax not on imports but on a domestic product. What he did not explicitly point out was that the merchant class was also the bondholding class: they'd long been nationalists because federal power—the very kind Hamilton was wielding now—had long seemed to be where their interest lay. Today we might expect investors to be content with steady, tax-free income (there was, of course, no income tax). For Hamilton, shoring up and concentrating bondholders' wealth meant paying that income with funds drawn not from the small bondholding class but from a tax collected from the large class of people who would never own a bond. And he structured the tax around aspects of the distilling process itself, so that big-time distillers (industrialists, members of the bondholding class) would be charged a lower tax while small-time producers (people engaged in a wide variety of work as farmers and artisans, with whiskeymaking often their sole source of cash and credit) would be charged a substantially higher tax, in many cases a crushing one. It was no accident. The bill was modeled on a series of whiskey taxes passed by British governments. Driving small and occasional producers out of business served imperial economic aims of efficiency and consolidation. In the same year that Congress passed Hamilton's whiskey tax, the Irish Parliament stopped merely dis-incentivizing small distilling, and made it illegal to operate a still of less than 500-gallon capacity.

Hamilton wanted to turn the country into an efficient global competitor. As he would argue before Congress in his famous 1791 Report on Manufactures (which was far less successful than his funding plan but just as eager to stun all comers with its depth of research on hemp, nails, hats—wool hats, fur hats, and also fur-and-wool hats—and so on), labor power should not be dissipated in small, generalist farms and one-man artisan shops but efficiently marshaled, stabilized, and deployed on commercial farms and in factory towns like the one he founded in Paterson, New Jersey. And of course he wanted to use federal power to achieve that national vision.

The effect of the whiskey tax was precisely to render American distilling efficient through consolidation bordering on cartelization: even as the tax threatened to ruin small producers, Hamilton busily restructured army buying practices to make it impossible for small distillers to sell to army commissaries. In western Pennsylvania, where small distillers had managed to gain an economic toehold, Hamilton went even further: he made the region's richest, largest-scale distiller the federal tax collector. Paid both a federal salary and a commission on what he took from his less successful neighbors, and charged with enforcing the federal tax that directly benefited his business, this distiller/collector had close relatives—again, federally commissioned, correspondents of both Hamilton and Washington—in the commissary office of the local army post. Business was sewn up.

Brooks routinely characterizes Hamilton's use of federal power as intended to spur competition and furnish opportunity. But the control of business near the Ohio headwaters by a government-connected family and its pals was a direct consequence of Hamilton's policy, and it was anything but unintended. Government is really bad at rigging or softening competition, Brooks has written by way of praising Hamilton's economic policies. Yet the rigging inherent in Hamilton's tax aggravated ordinary people's existing problems. Farmers and artisans who were losing their weak grip on economic well-being and falling into foreclosure, as federally connected commercial farmers, Eastern real-estate speculators, and entrepreneurs in brick, glass, iron, and other rising industries—the sort Hamilton always said he wanted to promote—bought up more and more of the best Western land. Descendants of the pioneers who had cleared the land found themselves working as day laborers in the factories of their creditors, which was anything but a bleak outcome by Hamilton's reckoning.

Thus did the first federal domestic tax—linchpin to Hamilton's finance plan, culmination of nationalists' decade-long efforts to unite the country, first step in making the American economy a global competitor—operate regressively, comprehensively, and deliberately. Its avowed purpose of wealth concentration and industry consolidation was intended to restructure the country along the modern American lines now hymned by so many neo-Hamiltonians. Such extreme and systemic results can't be what Jason Bordoff and others at the Hamilton Project mean to support by invoking Hamilton's legacy. But it is what Morris meant by opening the people's purses, and it's what Congress made law, at Hamilton's behest, in 1791.

In his June 8 column, Brooks pits his Hamiltonians against modern populists who want, he says, to fundamentally rewrite the rules and obstruct policies they see as benefiting only the rich. He would brand as populists the many former foot soldiers of the Revolution who rose up against the whiskey tax—the so-called whiskey rebels. To them, American independence now seemed to have been gained for the exclusive benefit of a military-industrial cartel run by and for the privileged and staffed by the well-connected. Western Pennsylvania populists wanted a fair shot at modern America too. They wanted access to cash and credit. They wanted to grow their businesses. They were not anti-tax. They were against taxes that straitjacket markets, restrict opportunity, reduce competition, punish small operators, cripple local economies, and offer government cronies bonanzas at the direct expense of other citizens. Most important, they were against what they called taxes that don't operate in proportion to property.

At least that's what they said they were against, in published resolutions, letters, and petitions. Brookhiser and Chernow caricature them as drunk hillbillies (Brookhiser) whom scholars study merely because they are colorful (Chernow). But the essential fact remains that, during the nation's formative years, the explicit idea that an essential promise of republican democracy lies in fostering opportunities for economic advancement and upward mobility is found not in Hamilton's funding plan, but in the resolutions of the ordinary people who became whiskey rebels.

So how have neo-Hamiltonians managed to remake Hamilton in their own image, diminishing his outrageous charisma and ruthless political intelligence in the process?

One way today's Hamiltonians connect their hero's economics to the American Dream is through the needle's eye of his disadvantaged background and remarkable success. Hamilton came from nothing, Brooks wrote in his New York Times Magazine piece, and spent his political career trying to create a world in which as many people as possible could replicate his amazing success." Or, as one of the PBS talking heads informs viewers, Hamilton believed that "if you worked hard, you should get ahead.

It's more likely that Hamilton believed exceptional, bright boys like him should erupt like meteors across the night sky. Blending creative genius with an almost mad degree of thoroughness and tenacity, he strove to dominate everyone he encountered, a quality that brought enormous success but also marred his life and may have shortened it. The idea that Hamilton spent his career trying to create conditions for replicating such a rise seems fantastic. One searches his letters and public statements in vain for thoughtful reflection on ordinary families' economic struggles or respect for their goals and hopes for their children's betterment. He is unconcerned about using government power to encourage the rise of laborer's descendants and would not have related upward mobility to democracy—a dirty word to Hamilton.

Brooks cites remarks from Report on Manufactures as evidence of Hamilton's hope that people would advance socially by moving from agrarian scatteredness to industrial centralization. When all the different kinds of industry obtain in a community, Hamilton argued, each individual can find his proper element. He also defined as a goal of industrial policy to cherish and stimulate the activity of the human mind, by multiplying the objects of enterprise. Where many founders were farmers and planters, Hamilton (like Franklin and Samuel Adams) was an urbanite, and he made an appealing case for the creative synergy to be found in cities. He certainly wanted people mobile enough to get off the farm, out of the artisan shop, and into the mill, and he had a forward-looking fondness, at once emotional and practical, of encouraging meritocracy over aristocracy in responsible government positions.

But it is a feat of intellectual acrobatics to ascribe to Hamilton, on the basis of these remarks, a broad policy of encouraging, much less sustaining, widespread upward social mobility through hard work among succeeding American generations. For Hamilton, the hard work/get ahead equation, which revivalists want to call a democratic legacy, applied only to the sort of people he deemed it wise to encourage. He had cogent national and financial reasons for carefully dismantling the few ways—which already involved manufacturing and selling—that people had of getting ahead. They involved consolidating land, money, opportunity, and power in the West, while obstructing both mobility and democracy. He was explicit about this.

Chernow, straining to detect Hamilton's sympathy for the impossible difficulties faced by the debtor class, misreads a minor Federalist essay, number six. He suggests that Hamilton felt sorry for Daniel Shays, leader of a 1787 debtor uprising in Massachusetts, arguing that federal assumption of state debts was intended to relieve small-farming debtors. While it's true that Hamilton objected to vacillations from leniency to aggressiveness in Massachusetts finance policy, his essay as a whole makes clear his disdain for the vaunting ambition and criminal tendencies of all such as Shays, on whom he lays personal blame for the anti-creditor movement sweeping the western part of the country, the real basis and wide scope of which Hamilton always impatiently declined to acknowledge.

To the extent that he thought about it at all, Hamilton wanted people to stop talking nonsense about their own economic aspirations and get ahead his way and his way alone, by becoming efficiently organized laborers and farm workers for the financiers and industrialists. If people wouldn't do that, he'd make them.

— William Hogeland (2007), Inventing Alexander Hamilton, in Boston Review (November/December 2007)

Kropotkin on the real French Revolution

Those of you who watch the front page may have noticed a new epigraph added to the rotation. It’s from Peter Kropotkin’s book on the French Revolution; I encountered it recently thanks to a post at The Picket Line. Thus:

After the night of August 4, these urban insurrections spread still more. Indications of them are seen everywhere. The taxes, the town-dues, the levies and excise were no longer paid. The collectors of the taille are at their last shift, said Necker, in his report of August 7. The price of salt has been compulsorily reduced one-half in two of the revolted localities, the collection of taxes is no longer made, and so forth. An infinity of places was in revolt against the treasury clerks. … In this way the people, long before the Assembly, were making the Revolution on the spot; they gave themselves, by revolutionary means, a new municipal administration, they made a distinction between the taxes that they accepted and those which they refused to pay, and they prescribed the mode of equal division of the taxes that they agreed to pay to the State or to the Commune.

It is chiefly by studying this method of action among the people, and not by devoting oneself to the study of the Assembly's legislative work, that one grasps the genius of the Great Revolution — the Genius, in the main, of all revolutions, past and to come.

–Pyotr Alexeyevich Kropotkin (1909) The Great French Revolution 1789–1793, p. 108. Trans. by N. F. Dryhurst.

Besides being good on its own merits, the quotation is also a natural complement to one of my other epigraphs, a quotation from Proudhon on parliamentarism and social economy.

Anticopyright. All pages written 1996–2024 by Rad Geek. Feel free to reprint if you like it. This machine kills intellectual monopolists.