American socialism, where Bernie meets Trump
I am sometimes asked by my good friend Hallerin Hilton Hill to appear on his afternoon radio talk show. On more than one occasion he said “You are a republican?” And I answer yes because it is the only one of the two major parties that pays lip service to free markets. But that day may be past. Maybe it should now be that only one party used to pay lip service to the markets. I guess I have always been a conservative. My parents, my college and graduate school education all embraced conservative values. I used to be a fan of the Heritage Foundation under the leadership of Ed Feulner and Edwin Meese. Their mantra dovetailed nicely with my own values: “free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.” No more.
Those values are the same that I learned from my parents who steadfastly loved America even though living in the south under Jim Crow and the starkest racial discrimination. But my folks talked of how far we had come as a people, were optimistic about the journey we had taken and realistic about how far we had to go. Both Mom and Dad’s grandparents were slaves giving credence to that journey. Both would tell us of the progress made from one generation to the next and only in America could that journey be made. They were republicans because they could not be in the same party and the racist democrats. Southern republicans were probably racist too but they kept a low profile and were mostly invisible in those days.
So when I went to the University of Georgia and had my first economics course, the text was Alchian and Allen’s University Economics. I still have that book today. In contrast to Paul Samuelson’s text, Alchian and Allen was one of market economics and taught the virtues of free markets, limited government and individual freedom. I knew immediately that I would major in economics. Georgia it seems only had market economists. I went to Ohio State to write under the great Karl Brunner who was an even stronger market economist and was good friends with Milton Friedman. No wonder I am who I am.
But today conservatism has been co-opted by something alien. Most congressional republicans have seemingly gone over to the dark side. The Heritage Foundation has abandoned basic principles and is losing many of its scholars, some going to Mike Pence’s think tank. Heritage is now aligning itself with the principles of Donald Trump. It flew the American flag upside down when Trump was convicted in New York. What Heritage has become is what many who call themselves “republicans” have become and that is a Trump “republican”. This is a new conservative and it is too bad that the term “neocon” is already taken.
Mind you, there is much to like about this president. But this is a president that has abandoned traditional conservatism and has dragged the republican party along with him. This is no leader espousing free enterprise and limited government like Ronald Reagan. This is a president (with Bernie Sanders) who wants to impose a 10% cap on credit card interest rates, have his own version of quantitative easing by buying $200 billion in mortgage bonds (Janet Yellen), buy shares in private firms and dictate their actions (Sanders again), let chipmakers sell to the Chinese but take part of their profits, set pharmaceutical prices (any democrat), confiscate Venezuelan oil and dictate who gets the spoils for its sale, stop investors from buying single family homes (Elizabeth Warren) and stop stock buybacks (again any democrat).
What bothers me is that Trump in many ways is emulating left wing socialists in feathering his own nest. While in office Forbes says that his personal wealth has increased by an estimated $3 billion. In the rare earth deals where the government has taken a position in private firms, Trump’s son Don, Jr.’s 1789 Capital venture fund invested in one of the companies months before the administration announced its funding and equity stake. Commerce secretary Lutnick said “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.” What Lutnick didn’t say was that Cantor Fitzgerald, which is chaired by his son Brandon was hired to raise private financing. Trump himself bought stock in Paramount/ Netflix while they were engaged in takeover talks. Some call this crony capitalism. I have other names in mind.
All the while most republicans have kept their mouths shut (with the exception of Rand Paul). Bernie Sanders has voiced his approval. Yet the same silent bunch would be up in arms had Joe Biden or Barack Obama done the same things. Republicans have abandoned their principles in the maelstrom that is Donald Trump. Some call this “populism”. I call it American socialism which is embraced by members of both parties and forebodes that future presidents both democrat and republican will likely expand socialism to the determent of limited government and market economics. Ronald Reagan said “The scariest words you can ever hear are ‘I’m from the government and I’m here to help you.’” Trump actually believes this. I am hugely disappointed in the republicans for not standing up for their principles but I will never go over to the dark side. I am a Reagan republican will continue to support “republican” candidates because the alternative is much much worse.
haroldblackphd.com 
Times have changed, and parties. Used to be all the political fighting was just for our entertainment. But now we welcome division..
Thanks to your sainted mother, when Black History Week was explained on TV.. I knew about its roots; I also agree with her assessment of Week and Month. It is probably the last Republican rational opinion..
Republicanism meant curling- that’s right, the 40 lb rock on ice- because my Boston Republican wing believed in William F’s philosophy- conservatives don’t look for trouble. No radical ideology to embrace..
Eldridge Cleaver- Black Panther, ‘Soul on Ice’, who in history will be remembered as a theologian and Reagan Republican, broke with radical ideals for the very reasons some might recognize today..
….”What was really decisive was I didn’t like what I saw in communist countries. I didn’t like the dictatorships. I didn’t like the military and the police all over the country controlling people. The red tape. The bureaucracy. The arrogant attitude toward the people.
“Marxism doesn’t hold theories or opinions…
Because Marx put forth his theories , he did it like an Old Testament prophet … didn’t leave any room for discussion…..”
Text copied fm the original source:Boston Globe 1982
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Speaking of William F., have you read his Blackford Oakes novels? I love the Cleaver quote and wonder if Bernie would embrace Marxism if we forced him to live in Cuba and not be part of the ruling class?
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I have not seen these novels- but I am discovering daily more of the depth of this man..
I’ve mentioned before- that WFBJr didn’t stand on reputation, how his son mentioned when $$ ran out, WFBJr took in a boarder..
Bernie would be as loud in Cuba as he is here. Can’t help himself..
Just to confirm : that Marxist quote, would today be why EC would take a different view of the Republican Party- filtered thru Trump.
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I have a question regarding socialistic policies. The last admin in concert with some liberal states and European Union decided to try and change the direction of a large consumer market -Transportation. Seeing as how Stellantis, Ford, GM as well as Mercedes and others are now writing down over a hundred billion in lost values, How can we hold the decision makers accountable for the impacts of their stupidity. It would be one thing if the entire government agreed – both parties but this considerable loss in value is chargeable straight to progressive law makers. In effect they have stolen value form the stockholders in these corporations. Theft is still a crime in the US and Europe?
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Great point. I wonder what would be the outcome of a shareholder lawsuit against all those companies that incurred huge losses running after government subsidizing market failures? But government seldom pays a price for its follies.
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I’m printing this out to place on my wall. You captured perfectly how I feel.
Our Econ 101 textbook was the Samuelson manual, and we were fed healthy helpings of Keynesian philosophy the first year. Very fortunately, however, I had several professors who offered a more balanced view, showing the weak spots in all arguments, and leading us to actually think. Another topic for another day.
I’m incensed by the corruption and cronyism in the Trump family, and equally incensed by the Pelosi, Omar and recently disclosed Alyssa Pressley largesse. Few things seem to inflame anger like self enrichment.
Where are the true conservatives??? The modern day neocon is a con indeed….
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Isn’t it amusing that the “Justice” department is investigating the surge in wealth of Omar while overlooking Trump’s even bigger surge in wealth? I like your last sentence. How true.
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I’m printing this out to place on my wall. You captured perfectly how I feel.
Our Econ 101 textbook was the Samuelson manual, and we were fed healthy helpings of Keynesian philosophy the first year. Very fortunately, however, I had several professors who offered a more balanced view, showing the weak spots in all arguments, and leading us to actually think. Another topic for another day.
I’m incensed by the corruption and cronyism in the Trump family, and equally incensed by the Pelosi, Omar and recently disclosed Alyssa Pressley largesse. Few things seem to inflame anger like self enrichment.
Where are the true conservatives??? The modern day neocon is a con indeed….
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I agree that in a perfect world free markets would reign.
Unfortunately the Chinese Communist have tried to seize the means of production from our free market system.
The worst decision in the last 30 years was allowing them to join the World Trade Organization.
To unwind the damage, we have had to counter some of their Socialist moves to prevent them from completely dominating us.
Imagine if they had seized Taiwan and dominated the Chip manufacturers like they have many other manufacturers.
I too yearn for the good Ole days of free Markets. But I have opened my eyes to the subversive Chinese and their 100 year plan.
Thankfully others opened their eyes too before it was an even bigger problem.
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Again we are in disagreement on much of this. But I understand your sentiment. I think that the Taiwanese chip industry keeps the Chinese at bay. That expertise would likely flee. Also I have argued before that if Taiwan were an easy market the Chinese would have invaded long ago.
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The Chinese have plenty of home grown talent now though. We naively educated them with optimistic hopes of them joining the free markets.
This is a good read
https://thehundredyearmarathon.com/
Most of our Military leaders see China as the biggest threat. We must pay attention to their fears and give ourselves all the advantages we can. We can’t sit back and “hope”.
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