By Jack Parkos | United States
In 1776, the Founding Fathers signed the Declaration of Independence, breaking away from tyrannical British rule. Thirteen years later, they ratified the Constitution after years of fighting and many deaths. The Founders differed on many issues, but agreed on the ideas of self governance and limited government. They also believed in the idea of inalienable rights that government could not take. They were heavily influenced by “The Wealth Of Nations” by Adam Smith, which was published in the same year America declared independence. This book created the idea of Laissez-Faire Economics. The Founding Fathers wanted a capitalist nation with a limited government. This government system, of course, would be a Constitutional Republic.
The Rise of Mussolini
However, the 19th and 20th Centuries saw the rise of extreme ideologies, most notably Marxism and reactionary movements. One such movement was fascism. Nowadays, fascism gets thrown around commonly as a buzzword without a full understanding of its meaning. Fascism is a highly nationalist ideology, consisting of a mixed economy, militarism, and an authoritarian government. Fascism rose in between the world wars. One of the most famous fascists was Benito Mussolini.
Fascism should more appropriately be called Corporatism because its the merger of state and corporate power.
Mussolini’s quote explains a lot about fascism, which partners the state and corporations over the people. Mussolini promoted heavy elitism and bureaucracy, which resulted in his totalitarian state.
Economically, corporatism supports private ownership of the means of production. The state very tightly controls production of goods. But once produced, distribution is generally controlled less.
Now we look at modern America: where are we on this spectrum? Are we the limited government the Founders wanted, or are we under a totalitarian state? Of course, we are not one hundred percent either. But we are now closer to Mussolini’s ideology than the Founders’. We do differ from Mussolini in ways, yes. We still have elections, political freedom, and some civil liberties. But our socio-economic system is a near replica of Mussolini. This is not an attack on one party or one politician. Both parties are guilty of corruption. Let us first examine the economics.
American Corporatist Economics
What economic system is America? Most people think we are capitalist. However, we are only capitalist in name. Modern American economics is closer to cronyism and corporatism (though it often may be called “mixed economics”) than capitalism. We truly haven’t had true capitalism in long time. People associate capitalism with corporate rule and bailouts for the rich as this is what our government does. But this isn’t capitalism at all!
Capitalism promotes a free market with voluntary transactions. Members of Bernie Sanders’ movement often call out the merger of big corporation and our government. And they are right, this is a problem! But they are wrong in calling it capitalism. Mussolini called for state and corporate merging. Mussolini was not a capitalist. Capitalist philosophers like Adam Smith (who influenced the Founders), Ayn Rand, or Milton Friedman would simply never promote cooperate and state merger.
America’s history of corporatism and cronyism really starts with the New Deal, when President FDR started getting the government involved in the affairs of businesses. People who support this say that government and business merging would help untie the classes of the people. That has not worked out. It is true that the rich are getting richer. However, this isn’t the result of capitalism. This is the result of the government imposing heavy taxes on the people, but then allowing corporations to be exempt with loopholes. Your average big corporation can buy a politician in congress and manipulate the economy. The state and business can do whatever they please to “benefit society”. A small business owner or middle class family does not have this power.
This Isn’t What the Founders Wanted
Does this sound like what the Founders wanted? The men influenced by Adam Smith, the men who fought for freedom? Of corse not. There are examples of them speaking against this. One example of this is Thomas Jefferson. He actually stated:
The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed corporations.
But Mussolini would have liked this. Through the way the corporations and state may have differed, Mussolini would have loved the result. Having the power to control the economy. Remember him saying his ideology (fascism) is the merger of corporation and state? Is that not modern America? America may not have an autocratic leader, but do we truly have the republic our Founders gave to us? Perhaps not.
Mussolini, of course, wanted a strong, authoritarian, and imperialist government. This is not at all what the Founders wanted. Now the elephant in the room, the federalists. They wanted a “strong” government yes, but not even close in comparison to Mussolini’s government or even modern America’s government.
Just How Far Down the Road are We?
Is America the complete totalitarian state Mussolini dreamed up? No. But we are closer to that than we are the Founders. The Supreme Court, the branch that was supposed to block the government from growing and taking away liberties, allowed it. The Founders believed in God giving unalienable rights and that the sole purpose of the government as to protect those rights. Now, the view has shifted to “Government given rights”. Such a belief entails the notion that the government decides what rights we do and don’t have.
There are also similarities in foreign policy. The Founders wanted peaceful relations for nations. Mussolini, on the other hand, was very aggressive on foreign policy. Fascist Italy was very militaristic. Mussolini wanted to “recreate” the Roman Empire. What about modern America? We are essentially the world police, which The Founders never wanted. Of course, no fascist ever reached this status. But becoming the world police is closer to creating another Roman Empire than it is to peaceful relations.
Thus, the early and modern American governments are not remotely similar. It is truly sad that we have drifted closer to fascism, rather than maintaining the beautiful country so many fought and died for. Today, the patriots need to take a stand and work to go back to those days when freedom rang.
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