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Toward Socialist America
An Analysis of America's slide into Collectivism
 
by Robert D. Gorgoglione
 
 
The American people will never knowingly adopt Socialism; but under the name of liberalism, they will adopt every fragment of the Socialist program until America will one day be a Socialist nation without knowing how it happened.
 
Norman Thomas six-time Socialist Party candidate for President
 
Americans may not be willing to vote for a program under the name of “socialism,” but put it under another party label – whether liberal Republican or Democrat – and they’re by and large in favor of the idea....
 
Earl Browder, General Secretary of the Communist Party USA
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WHAT IS SOCIALISM? (Collectivism)
Economic control of people by government.
 
Since there are several major forms of Socialism, it is important to begin with a good definition:
Socialism: Government control and/or ownership of the means of production and distribution of goods and services.
Or simply: Economic control of people by government.
 
In order for government to regulate and control economic activity, it must first control people, for it is people buying and selling in the market place that make up the economy.
 
The above  definition of Socialism includes democratic socialism, Fascism [Corporate Socialism], Naziism  (National Socialism) and Communism (International Revolutionary Socialism).
 
It was 40 years ago that I began to realize that the United States had already moved far down the soul-destroying road of Socialism. Little did I realize that I was not alone in coming to such an unpopular and "politically incorrect" conclusion.
 
Let's turn to the evidence that will prove that we are and have been on the road toward a Socialist America since at least 1933 (Roosevelt’s New Deal).
 
Bernard Baruch, Wall Street financier and key advisor in Frankliln Delano Roosevelt's New Deal and chairman of the War Industries Board during the First World War, stated the following in an August 1918 speech:
Every man's life is at the call of the nation and so must be every man's property. We are living today in a highly organized state of socialism. The state is all; the individual is of importance only as he contributes to the welfare of the state. ( The New American magazine,"The One Party State", Oct. 4, 2004)
Baruch would have made a great speech writer for Adolf Hitler, Benito Mussolini and Joseph Stalin!
 
Baruch's statement is not at all as extreme as it sounds when one takes into account the amount of socialistic regimentation and controls congress and President Woodrow Wilson's administration put on American industry and resources during World War 1.
 
In 1936, in an attempt to show the striking parallels beween the Socialist and Democrat Party platforms, Al Smith, a former democratic presidential candidate, declared:
Make a test for yourself. Just get the platform of the Democratic Party and ... the Socialist Party and lay them down ... side by side and ...scratch out the word Democrat and scratch out the word Socialist and let the two platforms lay there ...
The Republican Party is in need of its own Al Smith as we shall see.
 
SOCIALISM: THE ROAD TO COMMUNISM
 
Earl Browder, then general secretary of the Communist Party USA, in an address before the National Press Club in Washington D.C., in August of 1936, told assembled reporters:
The program of the Socialist Party and the program of the Communist Party have a common  origin in the document known as the Communist Manifesto. There is no difference, so far as the program is concerned and final aim...
The Socialists follow the lead of the Communists, the Democrats follow the lead of the Socialists, and the Republicans follow the lead of the Democrats. At the end of the road is complete Socialism which is Communism. Before we can go Communist, we must first go socialist.
 
EARL BROWDER: "America is getting socialism on the installment plan."
 
In 1966, 30 years later, Earl Browder was quoted in the Pittsburgh Press as follows:
America is getting socialism on the installment plan through the programs of the welfare state. There is more real socialism in the United States today than there is in the Soviet Union [Union of Soviet Socialist Republics].
 
Americans may not be willing to vote for a program under the name of "socialism," but put it under another party label - whether liberal Republican or Democrat - and they're by and large in favor of the idea ...
 
We have no real socialist party, no socialist ideology, but we have a large-and growing-degree of what 50 years ago would have been recognized as socialism.
NORMAN THOMAS: "The United States is making greater strides toward socialism ..."
 
By the mid 1950's, Norman Thomas, six time candidate for President of the U.S. on the Socialist Party ticket, proclaimed that practically all of the planks of the Socialist Party platform of 1932 had been adopted by both the Democrat  and Republican parties. In 1957, the Harvard Times-Republican” of April 18 quoted Norman Thomas as follows:
The United States is making greater strides towards socialism under Eisenhower [a Republican] than under Roosevelt.
US News and World Report of July 14, 1969 noted:
The late Norman Thomas ... observed in 1964 that the Democrats “have through the years taken over measures once regarded as Socialist, but then so have the Republicans but to a slightly less degree.
HAS THE U.S. ADOPTED THE "TEN POINT PLANK"
OF THE COMMUNIST MANIFESTO?
 
In order to comprehend, more fully, just how far down the Socialist road (under both Democrat and Republican presidents) we have traveled, consider the following from the Ten Point plank of the Communist (Socialist) Manifesto of 1848:
1. Abolition of property in land and application of all rent of land to public  purposes.  (Confiscation and ownership of vast areas of land by both the Federal and state governments with the remaining private lands under intense restrictions and regulations.)
 
2. A heavy progressive or graduated income tax. (The Federal Income Tax was adopted in 1913. Many of the states have since adopted their own versions of the graduated income tax.)
 
5. Centralization of credit ... by means of a national bank with state capital and an exclusive monopoly. (The Federal Reserve Banking System is a national bank with a very powerful and “exclusive monopoly.”)
 
6. Centralization of the means of communication and transport in the hands of the state. (i.e. government FCC regulations on radio and television and the ICC regulations on the railroads, trucking companies, and the airlines etc. Amtrak and Conrail are owned by the Federal Government. Some bus and transportation services are owned by state governments and regional metropolitan areas.)
 
10. Free education for all children in public schools. (Government public schools, colleges and universities.
WERE WILLIAM Z. FOSTER'S PROPOSALS ["TOWARD SOVIET AMERICA"] ADOPTED IN THE UNITED STATES?
 
In 1932, William Z. Foster, Chairman of the Communist Party USA authored the book Toward Soviet America. Beginning on Page 277 he declared that there would be:
....revolutionary nationalization or socialization (such as environmentally restrictive controls and regulation) of the large privately–owned ... factories, mines and power plant, ... railroads, waterways, airways, bus lines  [and] ... the whole body of forest, mineral deposits, lakes, etc. ( National Parks and forests etc.)
On page 281, he added:
There will also be ... social insurance against unemployment, old age [Social Security], ...free medical services (Medicare, Medicaid etc.) ...All houses and other buildings will be socialized. (regulated and government owned housing).
Now comes the shocker beginning on pages 316 - 317:
Superstition (religion) will vanish in the realm of science; ... class ideologies ... will give place to scientific materialist philosophy (Humanism). ....the schools, colleges and universities will be grouped under the National (Federal) Department of Education ... studies will be revolutionized being cleansed of religious, patriotic, and other features of bourgeois [middle class] ideology.
 
Science will become materialistic, hence truly scientific: God will be banished from the laboratories as well as from the schools. ....there will be a great organization of science, backed by the full power of the government. (Sound familiar?)
On page 318 we read:
A National Department of Health (the Department of Health and Human Services) will be set up. A free medical service ... will be established. ( National Health Care).
HAS THE UNITED STATES ADOPTED PORTIONS OF THE    "NATIONAL SOCIALIST WORKERS PARTY" PLATFORM?
 
Now we come to the National Socialist (Nazi) parallels that exist in the United States. Many of the famous Twenty-five Points of the National Socialist German Workers Party (NAZI) have been echoed by both Republicans and Democrats alike. Here are a few: 
1. ....provide work and the means of livelihood for the citizens of the state....
 
2. We demand an extensive development of provision for old age. (Social Security).
 
3. The State must undertake a thorough reconstruction of our national system of education, with the aim of giving to every capable and industrious [citizen] the benefits of a higher education.... We demand educational facilities for specially gifted children of poor parents ...  at the expense of the State. (Think of the Federal “Goals 2000" and “No child left behind.” etc.) 
 
4. The State must concern itself with raising the standard of health in the nation.... (National Health Care, Medicare, Medicaid, etc.)
 
5. The Party ... is convinced that our nation can only achieve permanent well-being from within on the principle of placing the common interest before self-interest. (Special interests  and “group rights” replace “individual rights.”)
Other points included such things as – are you ready – gun control [registration and confiscation], federal welfare, and yes, day-care. They even had their own National Endowment for the Arts.
 
Now we will let Adolph Hitler have the last word:
We are socialist, we are enemies of today's capitalistic economic system for the exploitation of the economically weak, with its unfair salaries, with its unseemly evaluation of a human being according to wealth and property instead of responsibility and performance, and we are all determined to destroy this system under all conditions. (Speech of May 1, 1927. Quoted by J. Toland in Adolph Hitler, Garden City, N. Y. : Doubleday.)
STRIKING SIMILARITIES BETWEEN FDR'S "NEW DEAL" AND MUSSOLINI'S FASCISM (CORPORATE SOCIALISM)
 
Charlotte Twight’s scholarly America’s Emerging Fascist Economy (Arlington House, 1975)  page
20, points to Fascist Pretenses about property rights, which are in turn abrogated by license, regulation, limiting competition etc. Twight explains that:
To sustain its power and achieve its economic ends, fascism seeks to make its people economically and psychologically dependent on the government. [This] enhances the governments ... control over its’ citizen’s economic activities.
 
Fascism also installs the mandatory government licence as a central economic weapon, for compulsory government licensing of businesses allows the political hierarchy to control the nation’s economy without the appearance of totalitarian coercion.
 
Altruistically phrased, vague licensing standards such as the national or community interest, local needs, or the personal qualifications of the applicant preserve a facade of justice and due process to conceal unlimited governmental power. Exactly such elastic standards for government licenses prevailed in Nazi Germany.
Unfortunately, these same Corporate Socialist controls and regulations are now in full bloom here in our beloved country, the United States of America.
 
Many of the principles of Mussolini’s Italian Fascism as well as Hitler's German National Socialism have also been adopted in the United States by both the Republican and Democrat Parties. Please notice that what follows has striking parallels to what we have already covered!
 
It was Franklin Roosevelt, a Democrat, who wrote:
I have wanted the ... government, above all, to give great care to the social legislation needed to carry out our part of agreed international programs for industry and for those who bear the future of industry .... in fact, it has ratified the laws for the eight-hour day, for obligatory insurance, for regulation of the work of women and children, for assistance and benefits, for after-work diversion and adult education, and finally for obligatory insurance against tuberculosis. All this shows how, in every detail in the field of labor, I stand by the ... working classes. All that it was possible to do without working an injury to the principle of solidarity in our economy I have set out to do, from the minimum wage to the continuity of employment, from insurance against accidents to indemnity against illness, from old age pensions to the proper regulation of military service. There is little which social welfare research has not already been advanced by me. I want to give every man and woman so generous an opportunity that work will be not a painful necessity but a joy of life ...   
Pure "New Deal" philosophy!
 
Now I have to confess. The author of the foregoing was not Roosevelt. It was the Socialist Benito Mussolini. (My Autobiograhy, New York, Charles Scribner's Sons, 1928). You have to admit that it sure sounds like Roosevelt.
 
In Architects of Conspiracy by William P. Hoar, on page 127, we find the following shocker:
The economics of Fascist Italy were soon being imported into this country by President Franklin D. Roosevelt, whose C.C.C., W.P.A., P.WA. and other Depression-era schemes proved so damaging. Indeed, in his 'memoirs' former President Herbert Hoover told it as it was: 'Among the early Roosevelt fascist measures was the National Industry Recovery Act (NRA) of June 16, 1933 .... [these ideas] were adopted by the United States Chamber of Commerce. During the campaign of 1932, Henry I. Harriman, president of that body , urged that I agree to support these proposals, imforming me that Mr. Roosevelt had agreed to do so. I tried to show him that this stuff was pure fascism; that it was a remaking of Mussolini's corporate state and refused to agree to any of it. He informed me that in view of my attitude, the business world would support Roosevelt with money and influence. That for the most part proved true. (Western Islands, 1984)
As was the case in corporate socialist Italy, and Germany, American corporations were financing and organizing corporate socialism right here in the United States in an effort to consolidate and control, i.e., monopolize, the wealth and productivity of the American economy for themselves. This was the essence of the "New Deal".
 
It should also be made clear that Naziism and Fascism are classified as Corporate Socialism, a political and economic system by which giant corporations and banks maintain their monopolistic control of a nations economy through government regulatory regimentation and financial control. That is, government interventionism as opposed to competitive free enterprise. Remember, socialism is not a share-the-wealth program, but is in reality, a tool by which monopoly capitalists consolidate and control the wealth. - See Appendix
 
Now we will let Benito Mussolini have the last word:
"Fascism should more appropriately be called Corporatism because it is a merger of State and corporate power." (In other words, Corporate Socialism!)
Even many Republicans have been and are supporting these corporate socialist principles and programs.
 
Now for the Republicans.
 
RICHARD NIXON'S "GREAT SOCIALIST REVIVAL"
 
One of the most startling articles ever to appear in an American magazine appeared in the September 21, 1970 issue of New York Magazine entitled "Richard Nixon and the Great Socialist Revival." by the very liberal (socialist) Harvard Professor John Kenneth Galbraith.
 
Galbraith began by procaiming:
Certainly the least predicted development under the Nixon Administration was this great new thrust to socialism. One encounters people who still aren't aware of it. Others must be rubbing their eyes, for certainly the portents seemed all to the conrtary. As an opponent of socialism, Mr. Nixon seemed steadfast ....
Further on in his article, Galbraith writes:
But I had come reluctantly to the conclusion that socialism, even in this modest design, was something I would never see. Now I am being rescued by this new socialist upsurge promoted, of all things, by socialists not on the left but on the right. And they have the blessing, and conceivably much more, of a Repulican Administration.       
Professor Galbraith, in making reference to the British Fabian Socialist "doctrine of the commaning heights" wrote:
 
        The new conservative socialism in the United States has taken over the strategy of the commanding 
        heights with a vengeance. (Richard Nixon: The Man Behind the Mask, Western Islands, 1971)        
 
It was during the Nixon Republican administration that the following steps (among others) toward Socialism  were taken:
1. The socialistic Environmental Protection Agency was created by an unconstitutional executive order, thereby passing Congress, and giving the federal government virtual control and power over all land, air and water.
 
2. Federal Revenue Sharing, which has led to a greater and more direct federal control of state and local governments, and therefore greater socialistic concentration of political and economic power.
 
3. The total and complete elimination of any remaning gold backing of our currency which has further facilitated the weakening of the value of the dollar, thereby creating greater price inflation (rising prices).
 
4. Socialistic price controls leading to growing shortages which nearly led to rationing.
 
5. Greatly increased treasonous foreign aid, trade and financial credit and loans to our communist enemies. (Particularly Soviet Russia and Communist China.)
 
6. Greatly increased spending for unconsitutional socialistic programs such as social services, entitlements, medical care, education, foreign aid and other socialistic transfer-of-the-wealth schemes etc. (The sharing of someone elses wealth, of course.)
And lastly, Richard Nixon's economic and fiscal policies can be summed up as follows:
"I am now a Keynesian in economics" - Richard Nixon 
Was President Nixon a socialist?
 
So now you can see clearly that both the Republican and Democrat Parties have become very effective vehicles for pushing the United Stated toward complete socialism. Unfortunately the process continues even under the George W. Bush administration. 
 
PRES. BUSH: "... a Republican administration will continue and complete the work of a Democratic (Clinton) administration."
 
One of the major policy areas where President Bush is continuing and expanding the work of the Clinton administration is in the area of socialistic environmental regulation. Bush stated:
And now, a Republican administration will continue and complete the work of a Democratic administration.
Of course this statement can be applied to most if not all major policy objectives such as:

1. Education: In January 2002, Mr. Bush signed into law the "No Child Left Behind Act," which radically increased   the  federal  role in education. In his most recent budget proposal, the fiscal 2005 budget, Mr. Bush proposed  spending $64.3 billion for the Department of Education, as compared to $35.7 billion in 2001, the year he assumed     office — an 80.1 percent increase.

2. Foreign Aid: In March 2002, Mr. Bush called for a 50 percent increase in "core development assistance" over three years. In his fiscal 2005 budget, he proposed $16.6 billion in total spending for "international assistance programs," as compared to $11.8 billion in 2001.

3. Agriculture: In May 2002, Mr. Bush signed into law a gargantuan farm bill he supported that increases direct farm program spending by $73 billion over 10 years and also contains $243 billion for food stamps.

4. Health Care: In December 2003, Mr. Bush signed into law a new prescription drug entitlement program he championed. When passed by Congress, the administration estimated that the program would cost $400 billion over 10 years. Subsequently, the administration revised the $400 billion estimate upward to $530 billion. (The New American magazine,"Whom Do We Elect", July, 12, 2004)

For a preview of what a second Bush administration would do to continue and expand on the socialistic policies and programs of the previous Clinton democratic administration, hear what liberal Republican columnist Andrew Sullivan had to say:
The (2004 GOP Convention) began with a series of speeches trumpeting vast increases in federal spending: on education, healthcare, AIDS, medical research, and on and on,... No, these were not Democrats. They were Bush Republicans, extolling the capacity of government to help people, to cure the sick, educate the young, save Africans from HIV, subsidize religious charities, prevent or cure breast cancer, and any other number of worthy causes.(The New American magazine, "The One Party State", October 4, 2004)
Pure Socialism!
 
"There ought to be limits to freedom."
Governor George W Bush, May 21, 1999
 
Is President Bush a Socialist?
 
Notice how much these programs parallel those of NAZI Germany, Fascist Italy and William Z. Foster's Toward Soviet America.
 
A very good way to measure the growth and advance of socialism in these United States is to look at the growth of federal spending and the size of the Federal budget. It took well over 100 years for the federal budget to reach about 1 billion dollars in 1916, just before entering the First World War. 46 years later in 1962, it reached about 100 billion. Now, 42 years later, in the year 2004, under a Republican administration, the federal budget is rapidly approching 3 Trillion dollars. Even with price inflation factored in, this is astronomical. Less we forget, the national debt has now surpassed the 7 trillion dallar level!
 
Now if you think these figures are staggering, start adding up the exploding growth of all state and local spending and debt.
 
Now imagine how prosperous and rich we would all be had the Federal Government's spending been frozen at the 100 billion dallar level of 1962, while being forced to return to its strict Constitutional limits.
 
CONCLUSION AND SOLUTION
 
In conclusion, all of the above is a perfect description of the political and economic realities that exist  in the United States today!
 
In Nazi Germany, Fascist Italy, and the Union of Soviet Socialist Republics, socialistic and welfare-state ideas were developed in the name of socialism. But here in the United States, socialism was promoted in the name of: “social reform,” “social justice,” “equality,” “civil rights,” and liberalism, etc.
 
Republican and Democratic administrations come and go, but the show remains the same. The rapid growth and increasing size of tyrannical taxes and very burdensome regulatory controls of government and the loss of most of our precious God-ordained rights to individual liberty continue no matter which party is in power. The lock-step march toward complete socialism (Communism) continues unabated.
 
We Americans should never forget the wise counsel of the Father of our beloved country, George Washinton:
Government is not reason; it is not eloquence; like fire, it is a dangerous servant and a fearful
master.
And now this from the great Thomas Jefferson:
....it would be a dangerous delusion were a confidence in the men of our choice to silence our fears for the safety of our rights; that confidence is everywhere the parent of despotism; free government is founded in jealousy and not in  confidence; it is jealousy and not confidence which prescribes limited constitutions to bind down those whom we are obliged to trust with power; that our Constitution has accordingly fixed the limits to which and no further our confidence may go; ....In questions of power, then let no more be heard of confidence in man (officers of government) but bind them down from mischief by the chains of the Constitution. ( The Kentucky Resolutions, 1798)
If we as a people and a nation do not return to those principles and precepts of our divinely inspired Constitution and Competitive Free Enterprise System, and once again worship the God of the land, who is Jesus Christ, we will pass into oblivion and history as have other great civilizations before ours.
 
But let us not dispair. There is still great hope if we will but seek wisdom and counsel from the great Benjamin Franklin who was instrumental in helping to guide and steady the Framing Constitutional Convention of 1787 to a great and succesful conclusion. At a time when the Convention was on the verge of breaking up, and the new infant nation was close to sliding into anarchy, as is the case for us today, Benjamin Franklin gave the following wise counsel: 
We indeed seem to feel our own want of political wisdom, since we have been running about in search of it ... In this situation ... groping as it were in the dark to find political truth ... how has it happened, sir, that we have not hitherto once thought of humbly applying to the Father  of lights [God] to illuminate our understandings? ... I have lived, Sir, a long time, and the longer I live, the more convincing proofs I see of this truth--that God governs in the affairs of men. And if a sparrow cannot fall to the ground without his notice, is it probable that an empire can rise [or survive] without his aid?... Henceforth [let us pray for] the assistance of Heaven, and its blessings upon our deliberations... (Constitutional Convention, 1787)
It was with the assistance and inspiration of Heaven that our Forefathers settled this choice land and brought about the birth and rise of this nation with faith and great sacrifice. Now may we follow their great example, and walk in their footsteps; pick up where they left off and restore our country to its former greatness and glory; that we may once again be a shining light of Liberty and hope for a world in darkness and bondage, for this is our destiny! 
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Contact me at robegorgolio@aol.com . For more information go to:
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APPENDIX
 
The following excerpts from the late Antony Sutton will give greater insight and historical perspective to the above work. 
 
"On the other hand, it may be observed that both the extreme right and the extreme left of the conventional political spectrum are absolutely collectivist. The national socialist (for example, the fascist) and the international socialist (for example, the Communist) both recommend totalitarian politico-economic systems based on naked, unfettered political power and individual coercion. Both systems require monopoly control of society. While monopoly control of industries was once the objective of J. P. Morgan and J. D. Rockefeller, by the late nineteenth century the inner sanctums of Wall Street understood that the most efficient way to gain an unchallenged monopoly was to "go political" and make society go to work for the monopolists — under the name of the public good and the public interest. This strategy was detailed in 1906 by Frederick C. Howe in his Confessions of a Monopolist.1 Howe, by the way, is also a figure in the story of the Bolshevik Revolution."
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"Consequently, one barrier to mature understanding of recent history is the notion that all capitalists are the bitter and unswerving enemies of all Marxists and socialists. This erroneous idea originated with Karl Marx and was undoubtedly useful to his purposes. In fact, the idea is nonsense. There has been a continuing, albeit concealed, alliance between international political capitalists and international revolutionary socialists — to their mutual benefit. This alliance has gone unobserved largely because historians — with a few notable exceptions — have an unconscious Marxian bias and are thus locked into the impossibility of any such alliance existing. The open-minded reader should bear two clues in mind: monopoly capitalists are the bitter enemies of laissez-faire entrepreneurs; and, given the weaknesses of socialist central planning, the totalitarian socialist state is a perfect captive market for monopoly capitalists, if an alliance can be made with the socialist powerbrokers. Suppose — and it is only hypothesis at this point — that American monopoly capitalists were able to reduce a planned socialist Russia to the status of a captive technical colony? Would not this be the logical twentieth-century internationalist extension of the Morgan railroad monopolies and the Rockefeller petroleum trust of the late nineteenth century?"
 
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"These are the rules of big business. They have superseded the teachings of our parents and are reducible to a simple maxim: Get a monopoly; let Society work for you: and remember that the best of all business is politics, for a legislative grant, franchise, subsidy or tax exemption is worth more than a Kimberly or Comstock lode, since it does not require any labor, either mental or physical, for its exploitation" (Chicago: Public Publishing, 1906), p. 157.
 
From Chapter 1, Wall Street and the Bolshevik Revolution by Antony Sutton Arlington House, 1974.
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THE ORIGINS OF CORPORATE SOCIALISM

"Old John D. Rockefeller and his 19th century fellow-capitalists were convinced of one absolute truth: that no great monetary wealth could be accumulated under the impartial rules of a competitive laissez faire society. The only sure road to the acquisition of massive wealth was monopoly: drive out your competitors, reduce competition, eliminate laissez-faire, and above all get state protection for your industry through compliant politicians and government regulation. This last avenue yields a legal monopoly, and a legal monopoly always leads to wealth."

"This robber baron schema is also, under different labels, the socialist plan. The difference between a corporate state monopoly and a socialist state monopoly is essentially only the identity of the group controlling the power structure. The essence of socialism is monopoly control by the state using hired planners and academic sponges. On the other hand, Rockefeller, Morgan, and their corporate friends aimed to acquire and control their monopoly and to maximize its profits through influence in the state political apparatus; this, while it still needs hired planners and academic sponges, is a discreet and far more subtle process than outright state ownership under socialism. Success for the Rockefeller gambit has depended particularly upon focusing public attention upon largely irrelevant and superficial historical creations, such as the myth of a struggle between capitalists and communists, and careful cultivation of political forces by big business. We call this phenomenon of corporate legal monopoly—market control acquired by using political influence—by the name of corporate socialism."

____________________

"The monopoly economic system based on corruption and privilege described by Howe is a politically run economy. It is at the same time also a system of disguised forced labor, called by Ludwig von Mises the Zwangswirtschaft system, a system of compulsion. It is this element of compulsion that is common to all politically run economies: Hitler's New Order, Mussolini's corporate state, Kennedy's New Frontier, Johnson's Great Society, and Nixon's Creative Federalism. Compulsion was also an element in Herbert Hoover's reaction to the depression and much more obviously in Franklin D. Roosevelt's New Deal and the National Recovery Administration."

"It is this element of compulsion that enables a few—those who hold and gain from the legal monopoly—to live in society at the expense of the many. Those who control or benefit from the legislative franchises and regulation and who influence the government bureaucracies at the same time are determining the rules and regulations to protect their present wealth, prey on the wealth of others, and keep out new entrants from their business."

____________________

"In brief, regulatory agencies are devices to use the police power of the state to shield favored industries from competition, to protect their inefficiencies, and to guarantee their profits. And, of course, these devices are vehemently defended by their wards: the regulated businessmen or, as we term them, 'the corporate socialists.' "

"This system of legal compulsion is the modern expression of Frederic Bastiat's dictum that socialism is a system where everyone attempts to live at the expense of everyone else. Consequently, corporate socialism is a system where those few who hold the legal monopolies of financial and industrial control profit at the expense of all others in society."

____________________

 
"What was the philosophy of the financiers so far described? Certainly anything but laissez-faire competition, which was the last system they envisaged. Socialism, communism, fascism or their variants were acceptable. The ideal for these financiers was "cooperation," forced if necessary. Individualism was out, and competition was immoral. On the other hand, cooperation was consistently advocated as moral and worthy, and nowhere is compulsion rejected as immoral. Why? Because, when the verbiage is stripped away from the high-sounding phrases, compulsory cooperation was their golden road to a legal monopoly. Under the guise of public service, social objectives, and assorted do-goodism it is fundamentally 'Let society go to work for Wall Street.' "
 
From Chapter 5 of Wall Street and FDR by Antony Sutton, Arlington House, 1975.
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The Following excerpts from Frederic Bastiat's classic THE LAW will give a greater insight into the nature and principles of socialism and its consequences
 
Socialism Is Legal Plunder
 
"Now, legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, minimum wages, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole --with their common aim of legal plunder -- constitute socialism.
 
"Now, since under this definition socialism is a body of doctrine, what attack can be made against it other than a war of doctrine? If you find this socialistic doctrine to be false, absurd, and evil, then refute it. And the more false, the more absurd, and the more evil it is, the easier it will be to refute. Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. This will be no light task.
 
 "But it is upon the law that socialism itself relies. Socialists desire to practice legal plunder, not illegal plunder. Socialists, like all other monopolists, desire to make the law their own weapon. And when once the law is on the side of socialism, how can it be used against socialism? For when plunder is abetted by the law, it does not fear your courts, your gendarmes, and your prisons. Rather, it may call upon them for help.
 
"To prevent this, you would exclude socialism from entering into the making of laws? You would prevent socialists from entering the Legislative Palace? You shall not succeed, I predict, so long as legal plunder continues to be the main business of the legislature. It is illogical -- in fact, absurd -- to assume otherwise." (THE LAW, p. 22 - 23)
Try Liberty
 
"Away with their atrificial systems! Away with the whims of governmental administrators, their socialized projects, their centralizations, their tariffs, thir government schools, their state religions, their free credit, their bank monopolies, their regulations, their restrictions, their equalizations by taxation, and their pious moralizations!
 
"And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgement of faith in God and His works."
 
And Finally:
 
"The State is the Great fiction through which everybody endeavors to live at the expense of everybody"
 
Frederic Bastiat, "The Law" 1850, Following the French Communist Revolution of 1848.
(To study "THE LAW" go to www.bastiat.org/en/the_law.html )
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The following is taken from:
 
The Proper Role of Government
by Ezra Taft Benson,
Secretary of Agriculture - 1953-1961
 
Chapter 8 of "An Enemy Hath Done This", 1969, Parliament Publishers
To study the The Proper Role of Government
 
 Things the Government Should Not Do
 
"A category of government activity which, today, not only requires the closest scrutiny, but which also poses a grave danger to our continued freedom, is the activity NOT within the proper sphere of government. No one has the authority to grant such powers, as welfare programs, schemes for re-distributing the wealth, and activities which coerce people into acting in accordance with a prescribed code of social planning. There is one simple test. Do I as an individual have a right to use force upon my neighbor to accomplish this goal? If I do have such a right, then I may delegate that power to my government to exercise on my behalf. If I do not have that right as an individual, then I cannot delegate it to government, and I cannot ask my government to perform the act for me.

"To be sure, there are times when this principle of the proper role of government is most annoying and inconvenient. If I could only FORCE the ignorant to provide for themselves, or the selfish to be generous with their wealth! But if we permit government to manufacture its own authority out of thin air, and to create self-proclaimed powers not delegated to it by the people, then the creature exceeds the creator and becomes master. Beyond that point, where shall the line be drawn? Who is to say "this far, but no farther?" What clear PRINCIPLE will stay the hand of government from reaching farther and yet farther into our daily lives? We shouldn’t forget the wise words of President Grover Cleveland that "… though the people support the Government the Government should not support the people." (P.P.N.S., p.345) We should also remember, as Frederic Bastiat reminded us, that "Nothing can enter the public treasury for the benefit of one citizen or one class unless other citizens and other classes have been forced to send it in." (THE LAW, p. 30; Prophets, Principles and National Survival,  p.350, Publishers Press Salt Lake City, Utah, 191993)

The Dividing Line Between Proper and Improper Government

"As Bastiat pointed out over a hundred years ago, once government steps over this clear line between the protective or negative role into the aggressive role of redistributing the wealth and providing so-called "benefits" for some of its citizens, it then becomes a means for what he accurately described as legalized plunder. It becomes a lever of unlimited power which is the sought-after prize of unscrupulous individuals and pressure groups, each seeking to control the machine to fatten his own pockets or to benefit its favorite charities – all with the other fellow’s money, of course." (THE LAW, 1850, reprinted by the Foundation for Economic Education, Irvington-On-Hudson, N.Y.)

The Nature of Legal Plunder

Listen to Bastiat’s explanation of this "legal plunder."

    "When a portion of wealth is transferred from the person who owns it – without his consent and without compensation, and whether by force or by fraud – to anyone who does not own it, then I say that property is violated; that an act of plunder is committed!

    "How is the legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime…" (THE LAW, p. 21, 26; P.P.N.S., p. 377)

As Bastiat observed, and as history has proven, each class or special interest group competes with the others to throw the lever of governmental power in their favor, or at least to immunize itself against the effects of a previous thrust. Labor gets a minimum wage, so agriculture seeks a price support. Consumers demand price controls, and industry gets protective tariffs. In the end, no one is much further ahead, and everyone suffers the burdens of a gigantic bureaucracy and a loss of personal freedom. With each group out to get its share of the spoils, such governments historically have mushroomed into total welfare states. Once the process begins, once the principle of the protective function of government gives way to the aggressive or redistribute function, then forces are set in motion that drive the nation toward totalitarianism. "It is impossible," Bastiat correctly observed, "to introduce into society… a greater evil than this: the conversion of the law into an instrument of plunder." (THE LAW, p. 12)

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The following is taken from:

"The Constitution: A Heavenly Banner"

1989, Deseret Book Company, Salt Lake City, Utah

by Ezra Taft Benson,

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The Source of Human Rights

The third important principle pertains to the source of basic human rights. Thomas Paine, back in the days of the American Revolution, explained:

"Rights are not gifts from one man to another,nor from one class of men to another. . . . It is impossible to discover any origin of rights otherwise than in the origin of man; it consequently follows that rights appertain to man in right of his existence, and must therefore be equal to every man."

The great Thomas Jefferson asked:

"Can the liberties of a nation be thought secure when we have removed their only basis, a conviction in the minds of the people that these liberties are of the gift of God? that they are not to be violated but with his wrath?"

The feelings of these great men are in keeping with the revelation of God through his prophet, who said:

"Men are free according to the flesh . . . and they are free to choose liberty and eternal life ...or to choose captivity and death." (2 Nephi 2:27.)

Rights are either God-given as part of the divine plan, or they are granted by government as part of the political plan. Reason, necessity, tradition, and religious conviction all lead me to accept the divine origin of these rights. If we accept the premise that human rights are granted by government, then we must be willing to accept the corollary that they can be denied by government. I, for one, shall never accept that premise. As the French political economist Frederick Bastiat phrased it so succinctly, "Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, property existed beforehand that caused men to make laws in the first place."

We must ever keep in mind the inspired words of Thomas Jefferson, as found in the Declaration of Independence:

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed."

People Are Superior to Governments

The fourth basic principle we must understand is that people are superior to the governments they form. Since God created people with certain inalienable rights, and they, in turn, created government to help secure and safeguard those rights, if follows that the people are superior to the creature they created. We are superior to government and should remain master over it, not the other way around. Government is nothing more nor less than a relatively small group of citizens who have been hired, in a sense, by the rest of us to perform certain functions and discharge certain responsibilitIes we have authorized. It stands to reason that the government itself has no innate power nor privilege to do anything. Its only source of authority and power is from the people who have created it. This is made clear in the Preamble of the Constitution of the United States, which reads:

 "WE THE PEOPLE . . . do ordain and establish this Constitution for the United States of America."

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The "Wall Street" series by Antony Sutton

Click on to any chapter and do some great reading and research!

For additional research go to www.antonysutton.com

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Wall Street and FDR

By

Antony C. Sutton

 
 
Roosevelts and Delanos
Politics in the Bonding Business
FDR: International Speculator
FDR: Corporate Promoter
Making Society Work for the Few
Prelude to the New Deal
Roosevelt, Hoover, and the Trade Councils
Wall Street Buys The New Deal
FDR AND THE CORPORATE SOCIALISTS
FDR; Man on the White Horse
The Corporate Socialists at 120 Broadway, New York City
FDR and the Corporate Socialists

 

Socialists on Wall Street
• Why many Wall Streeters who invested in the Bolshevik Revolution also bankrolled FDR
• The NRA: Wall Street's reward for dumping Herbert Hoover?
• The powerful men who commuted between the White House and 120 Broadway • FDR's 11 corporate directorships
• How Wall Street insiders turned the Federal Reserve System into a money machine for the elite • Unearthed: the 1841 NRA-like scheme written by a 19th-century cousin of FDR
• FDR translates government contracts into personal profits: the case of the naval guns • How Wall Streeters in New Deal guise helped buy off Big Labor - then used it
• The international financiers who liked Mussolini and loved FDR • The Swope Plan: blueprint for the corporate state
• Why some money men backed FDR in 1932 • FDR's vending machine interests
• The "Butler Affair": the truth about the plot to install a dictator in the White House • The three musketeers of the NRA. Their Wall Street ties
• How politics helped make FDR rich in the bond business • FDR attempts to revolutionize the construction industry. Why he failed
• Huey Long's prophetic warning about Bernard Baruch and other New Deal financiers • FDR's scheme to profit from confiscated German patents
• How FDR tried to profit by hyperinflation in the Weimar Republic • How the captains of industry running the NRA punished their fellow businessmen
• FDR's $200,000 debt to the money men • Wall Street's attempt to create a private army of 500,000 men to "support the President"
• The dime's worth of difference between corporate socialists and radical socialists • Strange facts surrounding the Warm Springs Foundation, FDR's biggest investment
• Was FDR really the friend of the common man?  

Copyright ©1975 by Arlington House Publishers, New Rochelle, New York.

This work was created with the permission of Antony C. Sutton.

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WALL STREET AND
THE RISE OF HITLER



Comments: Steven Montgomery

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Last Updated on ... March 18, 2007