fascism then, fascism now
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Observing political and economic discourse in North America since the 1970s leads to an inescapable conclusion: The vast bulk of legislative activity favours the interests of large commercial enterprises. Big business is very well off, and successive Canadian and U.S. governments, of whatever political stripe, have made this their primary objective for at least the past 25 years.
Digging deeper into 20th century history, one finds the exaltation of big business at the expense of the citizen was a central characteristic of government policy in Germany and Italy in the years before those countries were chewed to bits and spat out by fascism. Fascist dictatorships were borne to power in each of these countries by big business, and they served the interests of big business with remarkable ferocity.
These facts have been lost to the popular consciousness in North America. Fascism could therefore return to us, and we will not even recognize it. Indeed, Huey Long, one of America's most brilliant and most corrupt politicians, was once asked if America would ever see fascism. "Yes," he replied, "but we will call it anti-fascism."
By exploring the disturbing parallels between our own time and the era of overt fascism, we can avoid the same hideous mistakes. At present, we live in a constitutional democracy. The tools necessary to protect us from fascism remain in the hands of the citizen. All the same, North America is on a fascist trajectory. We must recognize this threat for what it is, and we must change course.
Business tightened its grip on the state in both Italy and Germany by means of intricate webs of cartels and business associations. These associations exercised a high degree of control over the businesses of their members. They frequently controlled pricing, supply and the licensing of patented technology. These associations were private but were entirely legal. Neither Germany nor Italy had effective antitrust laws, and the proliferation of business associations was generally encouraged by government. This was an era eerily like our own, insofar as economists and businessmen constantly clamoured for self-regulation in business. By the mid 1920s, however, self-regulation had become self-imposed regimentation. By means of monopoly and cartel, the businessmen had wrought for themselves a "command and control" economy that replaced the free market.
It is always dangerous to forget the lessons of history. It is particularly perilous to forget about the economic origins of fascism in our modern era of deregulation. Most Western liberal democracies are currently in the thrall of what some call "market fundamentalism." Few nowadays question the flawed assumption that state intervention in the marketplace is inherently bad. As in Italy and Germany in the '20s and '30s, business associations clamour for more deregulation and deeper tax cuts. The gradual erosion of antitrust legislation, especially in the United States, has encouraged consolidation in many sectors of the economy by way of mergers and acquisitions.
The North American economy has become more monopolistic than at any time in the post-WWII period. U.S. census data from 1997 shows that the largest four companies in the food, motor vehicle and aerospace industries control 53.4, 87.3 and 55.6 per cent of their respective markets. Over 20 per cent of commercial banking in the U.S. is controlled by the four largest financial institutions, with the largest 50 controlling over 60 per cent. Even these numbers underestimate the scope of concentration, since they do not account for the myriad interconnections between firms by means of debt instruments and multiple directorships, which further reduce the extent of competition.
Our collective forgetfulness about the economic nature of fascism is dangerous at a philosophical level. As contradictory as it may seem, fascist dictatorship was made possible because of the flawed notion of freedom that held sway during the era of laissez-faire capitalism in the early 20th century. It was the liberals of that era who clamoured for unfettered personal and economic freedom, no matter what the cost to society. Such untrammelled freedom is not suitable to civilized humans. It is the freedom of the jungle. In other words, the strong have more of it than the weak. It is a notion of freedom that is inherently violent, because it is enjoyed at the expense of others. Such a notion of freedom legitimizes each and every increase in the wealth and power of those who are already powerful, regardless of the misery that will be suffered by others as a result. The use of the state to limit such "freedom" was denounced by the laissez-faire liberals of the early 20th century. The use of the state to protect such "freedom" was fascism. Just as monopoly is the ruin of the free market, fascism is the ultimate degradation of liberal capitalism.
Digging deeper into 20th century history, one finds the exaltation of big business at the expense of the citizen was a central characteristic of government policy in Germany and Italy in the years before those countries were chewed to bits and spat out by fascism. Fascist dictatorships were borne to power in each of these countries by big business, and they served the interests of big business with remarkable ferocity.
These facts have been lost to the popular consciousness in North America. Fascism could therefore return to us, and we will not even recognize it. Indeed, Huey Long, one of America's most brilliant and most corrupt politicians, was once asked if America would ever see fascism. "Yes," he replied, "but we will call it anti-fascism."
By exploring the disturbing parallels between our own time and the era of overt fascism, we can avoid the same hideous mistakes. At present, we live in a constitutional democracy. The tools necessary to protect us from fascism remain in the hands of the citizen. All the same, North America is on a fascist trajectory. We must recognize this threat for what it is, and we must change course.
Business tightened its grip on the state in both Italy and Germany by means of intricate webs of cartels and business associations. These associations exercised a high degree of control over the businesses of their members. They frequently controlled pricing, supply and the licensing of patented technology. These associations were private but were entirely legal. Neither Germany nor Italy had effective antitrust laws, and the proliferation of business associations was generally encouraged by government. This was an era eerily like our own, insofar as economists and businessmen constantly clamoured for self-regulation in business. By the mid 1920s, however, self-regulation had become self-imposed regimentation. By means of monopoly and cartel, the businessmen had wrought for themselves a "command and control" economy that replaced the free market.
It is always dangerous to forget the lessons of history. It is particularly perilous to forget about the economic origins of fascism in our modern era of deregulation. Most Western liberal democracies are currently in the thrall of what some call "market fundamentalism." Few nowadays question the flawed assumption that state intervention in the marketplace is inherently bad. As in Italy and Germany in the '20s and '30s, business associations clamour for more deregulation and deeper tax cuts. The gradual erosion of antitrust legislation, especially in the United States, has encouraged consolidation in many sectors of the economy by way of mergers and acquisitions.
The North American economy has become more monopolistic than at any time in the post-WWII period. U.S. census data from 1997 shows that the largest four companies in the food, motor vehicle and aerospace industries control 53.4, 87.3 and 55.6 per cent of their respective markets. Over 20 per cent of commercial banking in the U.S. is controlled by the four largest financial institutions, with the largest 50 controlling over 60 per cent. Even these numbers underestimate the scope of concentration, since they do not account for the myriad interconnections between firms by means of debt instruments and multiple directorships, which further reduce the extent of competition.
Our collective forgetfulness about the economic nature of fascism is dangerous at a philosophical level. As contradictory as it may seem, fascist dictatorship was made possible because of the flawed notion of freedom that held sway during the era of laissez-faire capitalism in the early 20th century. It was the liberals of that era who clamoured for unfettered personal and economic freedom, no matter what the cost to society. Such untrammelled freedom is not suitable to civilized humans. It is the freedom of the jungle. In other words, the strong have more of it than the weak. It is a notion of freedom that is inherently violent, because it is enjoyed at the expense of others. Such a notion of freedom legitimizes each and every increase in the wealth and power of those who are already powerful, regardless of the misery that will be suffered by others as a result. The use of the state to limit such "freedom" was denounced by the laissez-faire liberals of the early 20th century. The use of the state to protect such "freedom" was fascism. Just as monopoly is the ruin of the free market, fascism is the ultimate degradation of liberal capitalism.
-- Paul Bigioni, Toronto Star (2005/11/27)
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posted by þΛųL jØŋαŦhΛŋ @ 10:45
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