Genre

Tuesday, February 17, 2015

A 1964 Answer to Conservatives Seems True Today (essay)



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In the 1968 California Democratic Primary, I was able to vote for Senator Eugene McCarthy, whose campaign in New Hampshire had led to Lyndon Johnson’s decision not to run for re-election, because of the quagmire in VietNam.  I should have read McCarthy's 1964 book, A Liberal Answer to the Conservative Challenge, back then in 1968, but I have been glad to read it recently.  It is surprisingly relevant in 2015, when liberals might think an "answer to the conservative challenge" is as much needed as it ever was.

Many of McCarthy’s statements about the “challenge” from conservatives and about the 1964-68 state of affairs turn out to be relevant to conservatives’ values, initiatives, and actions of today.   Many statements about his own time, in other words, could be made with equal force in our own time.

This is true, I think, for two reasons: (a) the fact that Gene McCarthy's statements in 1964 were so very perceptive in their own time, and (b) the fact that the tension between liberal principles and perceptions and conservative principles and perceptions is an enduring – if not permanent – feature of American culture.

2

McCarthy’s “Answer to the Conservative Challenge” is divided into several parts:

Introduction: The Banner Yet Waves
I.    The Scales of Economic Justice
II.   Of Payrolls and Property, and
III. The Responsibilities of Responsible Government.  

Along the way, throughout his 1964 book, McCarthy mentions several universal principles:

"The idea of 'survival of the fittest' does not apply to human society... ." [p. 35]

"Technical processes, which includes business and economic processes, must be directed to human ends." [p. 35]

“It has been argued that once the federal government moves to meet a particular problem, complete federal control or operation inevitably follows.  The overwhelming weight of evidence in our national history is against this assertion.” [p. 65]

“When we see the misery and hopelessness in which too many of our people now live, economic theories should not divert us from the simple, positive response that justice demands.  Evasion of their just claim for help is faulty democracy as well as bad economics.” [p. 45]

"To oversimplify and to misapply slogans is to do a disservice to the whole decision-making process in a democracy." [pp. 28-29]

 “Basic to the operation of the legislative branch of the government is … rule by majority vote.  Frustrating the majority by prolonged debate was in no way sustained or supported at the Constitutional Convention...” [p. 89]

3

McCarthy contrasts Liberals and Conservatives generally:

“Liberals have been accused of being materialists - conservatives of believing in economic determinism; liberals of lacking faith - conservatives of having no trust in human reason; liberals of perpetuating and sharpening the class struggle - conservatives of advocating unlimited competition, the survival of the fittest as the dynamic of life and progress in society.” [p. 8] 

"In political campaigns it is customary for liberals to charge that government has not done enough for the economy, and for conservatives to charge that the government is attempting to do too much."  [p. 32]

“The basic ideas or concepts [in the American founding documents] are self-determination, equality, liberty, and the positive role of government.  Of these basic concepts the only one subject to serious debate is the last – that of the role of government.  It is on this point that liberals and conservatives in the United States come closest to ideological or doctrinaire – as well as practical – disagreement.” [p. 10]

4

McCarthy addresses a few topics in some detail, contrasting for example liberals’ views to conservatives’ positions on Economic and Fiscal Policy:

“…The federal government should stand ready with emergency public works programs to help meet the very special problems of recession or unusual temporary disturbances in the economic life of the country.” [p. 47]

"There are three widely and strongly held conservative ideas which bear importantly on [the discussion of economic and fiscal policy]:  One, that a balanced budget is an ultimate good; two, that absolute control of inflation is not only an economic good but also a moral good; and three, that government expenditures by their very nature are wasteful and noneconomic." [p.19]

"A balanced budget may be good or it may be bad." [p. 20]

"Is a balanced or an unbalanced budget good or bad?  The answer must be that neither is economically or morally good or bad in itself, but that each budget must be judged in relation to the whole pattern of facts and forces." [p.28] 

"...Liberals are not in any absolute or moral sense in favor of unbalanced budgets... [or] inflation - galloping or creeping – and...liberals do not believe that governmental expenditures are never wasteful." [p.20]

"In the years between 1953 and 1960 - the Eisenhower administration - the budget was unbalanced in five out of eight years, and the national debt increased by roughly $20 billion." [p. 21]  Note: In all eight Reagan years, the federal deficits were high.

"Deficit financing and the extension of credit are vital to the American economy.  Credit is one of the instruments which have contributed greatly to the growth of Western civilization and certainly to the growth of the United States." [p. 21]

5

McCarthy reveals consistent differences between liberal ideas and conservatives’ stands on Taxes:

“The principles of sound taxation have not changed since they were stated by Adam Smith in 1776.  A sound tax system, he said, should raise enough revenue; it should be just; it should be easy to administer; and it should stimulate growth.” [p. 13] 

“The progressive income tax is a special target of the conservatives.  Some even advocate the repeal of the 16th Amendment.”  [ p. 13]

"…Many [of the rich] benefit from special dividend credits and deductions now provided in the law.  Many have changed their investments so as to be able to take advantage of the capital gains provisions of the law.”  [p.14]

“Although there is a continuing debate even among liberals as to whether the [tax] rates themselves are proper or defensible, it is generally accepted by liberals that tax rates should reflect in some degree the taxpayer’s ability to pay; that is, the rate should be higher for those in high income brackets.  The top rate in the federal income tax scale has been, for many years, 91 percent. [p.14] (emphasis added) 
Note: This one statement is not at all true today, when the rich and super-rich pay less than 25% in federal income taxes.  In the 1950s and 60s, when the rich paid such high percentages in federal tax, the economy was booming, the era coming to be known as The Great Prosperity.  And of course, the economy is not booming today.

6
 
On the government’s role in Commerce, McCarthy shows key differences between Liberals and Conservatives:

"Leon Keyserling [Council of Economic Advisers, 1945-1953]... insists that reasoned judgment be applied to the economy and the business community and to its problems; and that to leave these problems to nature or to the operation of economic laws (which, with some oversimplifications, is called the conservative approach) is to declare for the irrational."  [p. 35]

"...Some of the early and simple rules of competition, which work well when there are many small producers competing in a free and open market, do not work as effectively when great concentration of economic power is involved.  We must acknowledge that with an increase in power there must be corresponding increase in responsible control." [p. 36]

"... American business is primarily motivated by search for profit and individual or corporate advancement, and cannot be expected to respond to all of the demands of a social or economic nature... . Government, on the other hand, has primary responsibility for the common good and, therefore, must assert itself when private interests seriously threaten or interfere with the efforts to achieve it."  [p. 30]

"Regulatory powers serve a number of purposes:  They may protect the public, insure a free competitive economy, or promote business activity."  [p. 30]

"Almost without exception, federal intervention in the economic life of nation has followed abuse of privilege, or neglect or failure on the part of extra-governmental institutions or individuals to meet the needs of the country."  [p. 31]

"'Get the government out of business" is a popular conservative political slogan.  ...[And yet] the federal government has been actively involved in the business and economic life of the country since the beginning of our nation's existence."  [pp. 29-30]

7

Likewise, Liberals and Conservatives, McCarthy writes, differ on the topic of Helping the Poor and Unemployed:

“We have been challenged to work out devices and procedures under which every person can have a claim and a share of that which is produced.” [p. 55]

“…The federal government should stand ready with emergency public works programs to help meet the very special problems of recession or unusual temporary disturbances in the economic life of the country.” [p. 47]

 “…There is no doubt that poverty is still a fact of life in the United States.” [p. 37]

“Under such conditions does government have any obligation?  The conservative position generally is that it does not; the liberal position is that it does have a responsibility.” [p. 38]

“When we see the misery and hopelessness in which too many of our people now live, economic theories should not divert us from the simple, positive response that justice demands.  Evasion of their just claim for help is faulty democracy as well as bad economics.” [p. 45]

“Unemployment is in many ways the most difficult if not the central problem of our free economy and our free society.” [p. 42]

“What is the conservative answer? … that there always must be workers changing jobs, industries declining as others rise, and a ready labor supply available for new products or extra shifts…[or] that current unemployment is temporary…[or] that the problem is local [and] it should be left to industry or to the states.” [p. 45]

“The liberal position emphasizes federal responsibility.” [p. 45]

“Work is an activity which for most…is an expression of the human person.” [p. 50]

“In a liberal view, ‘the right to work’ is too closely related to basic human rights to be used as a mere slogan against unionization.” [p. 48]

“In the middle of the 19th century, John Stuart Mill, writing as a philosopher of liberal economics, said that there cannot be a more ‘legitimate object of the legislator’s care than the interests of those who are sacrificed to the gain of their fellow citizens and prosperity – those displaced by changing methods of production.’” [p. 52]

8

Health Care and Education in 1964, as in our own time, were topics on which Liberals and Conservatives took different positions:

“…[The legislators’] decision may be to establish or maintain national programs of security; to improve the social security program so as to make it more effective, to have a national program of health insurance, to have a more satisfactory unemployment compensation program based upon national standards.” [p. 54]

“There are those who argue that private insurance, together with state aid for the indigent sick, is adequate.  The obvious answer is that, for many, this has not been the case.”[p. 66]

“The state as an institution concerned primarily with the temporal good of man has a right and an obligation to set up standards for education, and the right to require its citizens to meet these standards insofar as it is possible to do so.  The standards, of course, must be reasonable and must leave open great areas of freedom for the pursuit of truth and individual fulfillment.” [p. 74]

“…For the nation, increasing the quality and availability of education is vital to both our national security and our domestic well-being.’ ” [p. 76]

9

McCarthy’s liberal principles, contrasted with conservatives’ interests, are stated broadly:

“President [Franklin] Roosevelt expressed his view…in his State of the Union Address of 1944: ‘We cannot be content, no matter how high the general standard of living may be, if some fraction of our people – whether it be one-third or one fifth or one tenth – is ill-fed, ill-clothed, ill-housed, and insecure. …Necessitous men are not free men.’” [p. 40-1]

“These have been the elements of the liberal program and, to the extent these needs are not met, they remain as essential parts of the liberal program.” [p. 42]

In our own time, conservatives seek to “starve” government in order to prohibit what they see as the liberal inclination to use government as a fundamental tool for pursuing social justice – quality public education, accessible health care, individual civil rights, protection of the average American, and security for the poor and the aging – issues which, my goodness, are the very problems we are trying to deal with in 2015.

Eugene McCarthy's observations way back in 1964 seem true, wise, even prescient.  We can only hope that "the banner yet waves" today.

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