Wednesday, September 24, 2008

Socialism is the wrong word

From: Brady Wiseman in Bozeman MT writes to note, "Bailing out the banks is not socialism. The government and the Fed are not becoming exactly the creditors of the banks. Because the numbers are so large, they are now partners. It's not a bailout so much as a merger. What do you call the merger of government and corporations? Mussolini called it fascism."
Wiseman is quite right. We let ourselves get caught in the rhetoric of the day in which you can call anything you don't like socialism, but god forbid you use the term fascism. In the past, however, we have addressed this matter: Sam Smith, 2006 - One needs to look not at Hitler but at the founder of fascism, Mussolini. What Mussolini founded was the estato corporativo - the corporative state or corporatism. Writing in Economic Affairs in the mid 1970s, R.E. Pahl and J. T. Winkler described corporatism as a system under which government guides privately owned businesses towards order, unity, nationalism and success. They were quite clear as to what this system amounted to: "Let us not mince words. Corporatism is fascism with a human face. . . An acceptable face of fascism, indeed, a masked version of it, because so far the more repugnant political and social aspects of the German and Italian regimes are absent or only present in diluted forms.". . . Adrian Lyttelton, describing the rise of Italian fascism in The Seizure of Power, writes: "A good example of Mussolini's new views is provided by his inaugural speech to the National Exports Institute on 8 July 1926. . . Industry was ordered to form 'a common front' in dealing with foreigners, to avoid 'ruinous competition,' and to eliminate inefficient enterprises. . . The values of competition were to be replaced by those of organization: Italian industry would be reshaped and modernized by the cartel and trust. . .There was a new philosophy here of state intervention for the technical modernization of the economy serving the ultimate political objectives of military strength and self-sufficiency; it was a return to the authoritarian and interventionist war economy." Lyttelton writes that "fascism can be viewed as a product of the transition from the market capitalism of the independent producer to the organized capitalism of the oligopoly." It was a point that Orwell had noted when he described fascism as being but an extension of capitalism. Lyttelton quoted Nationalist theorist Affredo Rocco: "The Fascist economy is. . . an organized economy. It is organized by the producers themselves, under the supreme direction and control of the State.". . . Article 48 of the constitution of the Weimar Republic stated, "In case public safety is seriously threatened or disturbed, the Reich President may take the measures necessary to reestablish law and order, if necessary using armed force. In the pursuit of this aim, he may suspend the civil rights described in articles 114, 115, 117, 118, 123, 124 and 153, partially or entirely. The Reich President must inform the Reichstag immediately about all measures undertaken . . . The measures must be suspended immediately if the Reichstag so demands." It was this article that Hitler used to peacefully establish his dictatorship. And why was it so peaceful and easy? Because, according to Childers, the 'democratic" Weimar Republic had already used it 57 times prior to Hitler's ascendancy. There are eerie similarities between Article 48 and George Bush's approach. When you add to this the remarkable incompetence of the current regime, the collapse of both traditional liberal and conservative politics, and the economic crises, it feels like a new Weimar Republic setting the stage for awful things we can not at this point even imagine. It may be that history has something to tell us after all.

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