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The Origins of Totalitarianism: Interlude Defining Elites

Previous posts in this series:

The Origins of Totalitarianism Part 1: Introduction.

The Origins of Totalitarianism Part 2: Antisemitism

The Origins of Totalitarianism: Interlude on the Tea Party

The Origins of Totalitarianism Part 3: Superfluous Capital and Superfluous People

The Origins of Totalitarianism: Interlude on The Commons

Capitalism Versus The Social Commons (published at Naked Capitalism; discusses privatization using Rosa Luxemburg theory)

The Origins of Totalitarianism Part 4: Humanity under Totalitarianism

The Origins of Totalitarianism: Interlude on Right-Wing Authoritarianism

The Origins of Totalitarianism Part 5: Artistic and Intellectual Elites and the Rise of Fascism

In Part 5 I discussed Hannah Arendt’s view of the role of the elites in the rise of fascism. She defines the term elites as the artists, composers and intellectuals in Germany and Austria in the late 19th and early 20th Centuries. We use the term “elites” more broadly today. Depending on the context, it might mean some or all of the following:

1) a few very rich people. This group is described by Robert Reich as

…the major corporations, their top executives, and Washington lobbyists and trade associations; the biggest Wall Street banks, their top officers, traders, hedge-fund and private-equity managers, and their lackeys in Washington; the billionaires who invest directly in politics; and the political leaders of both parties, their political operatives, and fundraisers.

2) the people whose views are most respected in some scientific field or some academic area;

3) pundits, writers, media people, and the talking heads and experts who appear in their outlets. The experts themselves fall into two categories. One group comes from academia, and generally are actual experts. The other comes from think tanks, national issue-oriented organizations and other holding pens where they try to influence policy and wait for an opportunity to move into government.

4) top government people, including those in the legislature and their top staffers, top administration officials and of course, the President. This group also includes members of the deep state, the permanent group of military and security officials and bureaucrats who stay on election to election.

Taking these groups together, we have a working definition of the Establishment, and by separating them along the lines of their political party identifications, we have the Republican and Democratic Establishments.

You’ll note there is no mention in my list of artists or composers, and no mention of “intellectuals”. We have a complicated relationship with any kind of intellectualism, as Richard Hofstadter explains in Anti-Intellectualism in American Life, a book I read in college, reread later, and kept, I thought, until I went to look for it. Nicholas Lemann discussed it in an article in the Columbia Journalism Review, from which the following is taken.

It helps in understanding Hofstadter to know what [Hofstadter] takes intellectualism to mean. Here is a passage that comes as close as any in the book to a definition:

It accepts conflict as a central and enduring reality and understands human society as a form of equipoise based upon the continuing process of compromise. It shuns ultimate showdowns and looks upon the ideal of total partisan victory as unattainable, as merely another variety of threat to the kind of balance with which it is familiar. It is sensitive to nuances and sees things in degrees. It is essentially relativist and skeptical, but at the same time circumspect and humane.

I’m not sure how well that definition works with Arendt’s general description, but there certainly was a group of intellectuals in the late 19th and early 20th Century, and I think there would be general agreement on its members. Today, we don’t actually have many intellectuals in that sense. Instead, we have experts, people wired into the economic and social structure who are thought to have special expertise in some area of study. Judge Richard Posner of the Seventh Circuit wrote a book about this issue, Public Intellectuals: A Study in Decline. This is from a review in the Economist:

He starts off by ruling out what most of us would take as archetypal intellectuals: scientists who explain science to lay people (eg, Steven Weinberg), philosophers with an influential vision of society (eg, John Rawls or Robert Nozick) and literary intellectuals of high Bohemia (eg, Susan Sontag). No, his public intellectuals are really pundits: people who opine about issues of the day on television or in newspaper columns. On the theory that if it’s real it must be countable, he ranks what he calls the top 100 on the basis of scholarly citations, media mentions and web hits.

Here’s Posner’s expanded list of over 600 public intellectuals. Arendt made the list, and it’s fun to see the people who are quoted or sought on the internet 15 years ago; for example, David Brooks and David Broder are there, next to each other. Posner says the problem is that the then current crop of pundits (who are a subset of that list) is really bad at opining. As you would expect from the founder of the Law and Economics movement, he explains this with simplistic ideas about supply and demand. He says there are too many commentators, and that they are not held accountable for their errors, which is obviously true.

There have been a number of studies of the ability of experts to predict the future. In this review in the New Yorker Louis Menand (also on the list, and deservedly) discusses Expert Political Judgment: How Good Is It? How Can We Know? by Philip Tetlock, a Berkeley psychologist and researcher. It turns out experts aren’t good at predicting the future either in their own fields or in other areas.

Posner is quite right that those who spout what Paul Krugman (on the list) calls zombie ideas are never held accountable for being totally wrong. Instead, their views are considered highly valuable by policy makers. This, of course, shows how badly Posner has missed the real problem. Pundits and experts who shriek about deficits and inflation in today’s economy are prized by those who serve the interests of the rich, and who provide their PR.

Until the last few years, the elites have generally agreed on policies on most issues. You can see a good example in the way the New York Times discusses the refusal of the Republicans to govern, as in this astonishing piece by Jennifer Steinhauer. The destruction of institutional norms that once made government work under our ancient Constitution is now perfectly normal for our elites. For another, and more dangerous example, there is nearly universal agreement among the elites that prosecuting bank executives for their crimes that crashed the economy would not be possible. In fact, the elites generally agree that none of them can be held accountable for any of their actions, regardless of the damage done . We can no more punish Rick Snyder for poisoning Flint families than we could punish anyone for Iran-Contra or the top executives of American Water for failing to notice that the water they had privatized and sold to the people of Charleston WV was sickening. It mustn’t be done.

That kind of consensus indicates that the large bulk of our public intellectuals are completely indifferent to and unaware of the level of anger at the corruption that affects every aspect of our public lives. Zephyr Teachout explains corruption succinctly: the use of public office for private gain. Our elites refuse to accept this definition. There is no better proof that we need new elites.

Note: this post was updated by expanding paragraph 1) above.

The Origins of Totalitarianism Part 5: Artistic and Intellectual Elites and the Rise of Fascism

Previous posts in this series:

The Origins of Totalitarianism Part 1: Introduction.

The Origins of Totalitarianism Part 2: Antisemitism

The Origins of Totalitarianism: Interlude on the Tea Party

The Origins of Totalitarianism Part 3: Superfluous Capital and Superfluous People

The Origins of Totalitarianism: Interlude on The Commons

Capitalism Versus The Social Commons (published at Naked Capitalism; discusses privatization using Rosa Luxemburg theory)

The Origins of Totalitarianism Part 4: Humanity under Totalitarianism

The Origins of Totalitarianism: Interlude on Right-Wing Authoritarianism

Arendt uses the term “elites” to mean the highly trained and educated intellectuals in Germany and Austria, and artists and composers and writers who together make up the intelligentsia. She begins by describing the breakdown of the class structure in those countries, “…when the smugness of spurious respectability gave way to anarchic despair….” The elites hated the pretensions of the bourgeoisie, hated the class structures they imposed to support their positions and oppress the rest of the people, and hated the bogus morality they proclaimed in public and ignored in private. For decades, they assaulted the bourgeoisie, sometimes with satire, sometimes more directly, with attacks against their conventional religion and philosophy. They welcomed the First World War, hoping that it would wipe out the existing culture. After the war they hrejected restoration of the prior structures.

Arendt attributes two desires to individual members of the post-war elites: the desire for anonymity, for losing themselves in the midst of the people; and a yearning for violence to wipe out any remaining influences of the old bourgeoisie morality and respectability.

These people felt attracted to the pronounced activism of totalitarian movements, to their curious and only seemingly contradictory insistence on both the primacy of sheer action and the overwhelming force of sheer necessity. This mixture corresponded precisely to the war experience of the “front generation,” to the experience of constant activity within the framework of overwhelming fatality. P. 331.

The violence of the totalitarian movements was attractive to these elites precisely because it seemed to be a “ …kind of philosophy through which to express frustration, resentment, and blind hatred, a kind of political expressionism which used bombs to express oneself, which watched delightedly the publicity given to resounding deeds and was absolutely willing to pay the price of life for having succeeded in forcing the recognition of one’s existence on the normal strata of society.” P. 332 Arendt refers to this as a temporary alliance between the mob and the elites. In Part 3, we saw the distinction between the mob and the masses. The former are the unemployable, who at least shared some of the morality and attitudes of the class to which they once belonged or aspired to. The elites were thrilled to see the mob attack respectability, for example, when the steel barons were forced to accept the housepainter Hitler.

Arendt claims that the elites believed that all of the theories they were raised to accept had failed utterly and spectacularly and had caused enormous damage. Even the bourgeoisie had only the public appearance of morality. In private their morals were those of the mob. It thrilled the elites to see the academic theories that had nurtured them, theories like dialectical materialism, replaced with crackpot ideas and conspiracy theories. In this atmosphere it was wonderful to shove the faces of the bourgeoisie in their hypocrisy, and to express the anger and cruelty hidden behind their public faces. There were no limits to this decadent idea, as the French writer Celine showed in his Notes for a Massacre, in which he proposed to kill all the Jews.

Andre Gide was publicly delighted in the pages of the Nouvelle Revue Frangaise, not of course because he wanted to kill the Jews of France, but because he rejoiced in the blunt admission of such a desire and in the fascinating contradiction between Celine’s bluntness and the hypocritical politeness which surrounded the Jewish question in all respectable quarters. How irresistible the desire for the unmasking of hypocrisy was among the elite can be gauged by the fact that such delight could not even be spoiled by Hitler’s very real persecution of the Jews, which at the time of Celine’s writing was already in full swing. P. 335.

The current form of this idiocy is the ranting from the Republicans about political correctness. We don’t have time for political correctness, says Trump, merely speaking more frankly than his dog-whistle competition, and handing out a license to his followers to express their misogynist, homophobic, racist and other irrational hatreds.

Arendt also tells us that the elites recognized that the bourgeoisie were deeply cynical about the government. They operated it for their benefit in secret, and publicly claimed that all of their policies would benefit the rest of society. This blatant hypocrisy added to the hatred of the elites for the rich. Once they were content with the teachings of Karl Marx, who thought that the state would wither away. After WWI, that wasn’t radical enough for the elites. They wanted action at the price of anarchy and violence. But when the leftists tried to overthrow the bourgeoisie and the post-WWI government, the Social Democrats sicced the right-wing Freikorps on them and killed them and their intellectual leaders, including Rosa Luxemburg.

Of course the project of dismantling the 19th Century morality and certainty of the middle classes continues today among some of our elites. Just look at the ideas about truth espoused by Richard Rorty (a follower of John Dewey), or the attacks on fundamentalist religion from Sam Harris and others, or this from the New York Times Magazine:

In person, [Rachel] Bloom comes across as someone who takes honesty to its natural conclusion. “I like deconstructing things, ….. I like cutting the legs out from under something that feels secret. Something that’s like — ‘Oh, breasts are sexy.’ They’re floppy, Jell-O-filled sacks! In high school, I was once watching the surgery channel and ended up watching a breast reduction. The inside of a breast is disgusting. It looks like the inside of a couch.”

Arendt’s elites have been playing this game of epater le bourgeoisie, shock the middle class, for decades, and there is no end in sight. It’s a fun game, with no physical violence, and no real effect on politics or public life. Today, it’s pretty much self-neutering. Elite discussions of performance art or post-structuralism are irrelevant to the lives of practically everyone.

There are many lessons in Arendt’s story for the Sanders wing of the Democratic Party and for Trump Republicans. Among them is the simple fact that the rich and powerful people will use every tool to preserve their power and wealth.

The Origins of Totalitarianism: Interlude on The Commons

Previous posts in this series:

The Origins of Totalitarianism Part 1: Introduction.

The Origins of Totalitarianism Part 2: Antisemitism

The Origins of Totalitarianism: Interlude on the Tea Party

The Origins of Totalitarianism Part 3: Superfluous Capital and Superfluous People

In Part 3, I discussed two problems created by unrestrained capitalism, superfluous wealth and superfluous people. These twin problems are evidence of the damage done to people and societies by capitalism: the creation of large numbers of citizens with no role in the productive system of a nation-state, and the enormous wealth and power of the rich capitalists and the aristocracy. Arendt offers an explanation.

The decisive point about the depressions of [the 1860s and 70s], which initiated the era of imperialism, was that they forced the bourgeoisie to realize for the first time that the original sin of simple robbery, which centuries ago had made possible the “original accumulation of capital” (Marx) and had started all further accumulation, had eventually to be repeated lest the motor of accumulation suddenly die down. In the face of this danger, which threatened not only the bourgeoisie but the whole nation with a catastrophic breakdown in production, capitalist producers understood that the forms and laws of their production system “from the beginning had been calculated for the whole earth.” P. 148 fn omitted.

The motor of accumulation is a nice image for the idea that capital must move, must be constantly active, or it becomes useless and dangerous. The idea of the constant motion of money is similar to an idea we encounter later in the book, along with the idea of superfluity. The word “bourgeoisie” is slippery as commenter Bevin noted in response to Part 3, and can easily lead to confusion. For the purposes of the above quote, I think Arendt means the richest capitalists and aristocrats, and perhaps their financiers.

This is one of the footnotes I omitted:

According to Rosa Luxemburg’s brilliant insight into the political structure of imperialism {op. cit., pp. 273 ff., pp. 361 ff.), the “historical process of the accumulation of capital depends in all its aspects upon the existence of non-capitalist social strata.” so that “imperialism is the political expression of the accumulation of capital in its competition for the possession of the remainders of the non-capitalistic world.” This essential dependence of capitalism upon a non-capitalistic world lies at the basis of all other aspects of imperialism, which then may be explained as the results of oversaving and maldistribution (Hobson, op. cit.), as the result of overproduction and the consequent need for new markets (Lenin, Imperialism, the Last Stage of Capitalism, 1917), as the result of an undersupply of raw material (Hayes, op. cit.), or as capital export in order to equalize the national profit rate (Hilferding, op. cit.).

Here is the Wikipedia entry on Luxemburg. She was a revolutionary communist and a Marxist intellectual. Arendt refers to her book, The Accumulation of Capital, dated 1923, several years after Luxemburg was executed by the German Freikorps. I think Arendt might be referring to this book, and here’s a quote matching her description of Luxemburg’s thought.

Accumulation is impossible in an exclusively capitalist environment. Therefore, we find that capital has been driven since its very inception to expand into non-capitalist strata and nations, ruin artisans and peasantry, proletarianize the intermediate strata, the politics of colonialism, the politics of ‘opening-up’ and the export of capital. The development of capitalism has been possible only through constant expansion into new domains of production and new countries. But the global drive to expand leads to a collision between capital and pre-capitalist forms of society, resulting in violence, war, revolution: in brief, catastrophes from start to finish, the vital element of capitalism.

This analysis springs from Luxemburg’s reading of Marx, who, she says, was unable to show how accumulation of capital could occur in a purely capitalist system. Luxemburg says that accumulation of capital is only possible when the capitalist can find some new area to exploit. Arendt agrees.

I did not see any discussion of this issue in Jevons or in the bits and pieces of other 19th and early 20th century economists I have read, and I certainly can’t find it in the textbooks of Mankiw or Samuelson. Apparently this is not an issue of interest to economists. But the question does not disappear just because the self-described experts don’t want to talk about it. In The Great Transformation Polanyi describes the enclosure of the commons in England as a precursor to the Industrial Revolution. The enclosures were an example of the exploitation of a pre-capitalist strata made up of peasants and smallholders, to accumulate capital in the hands of the rich and vicious. One of the demands of the armed thugs in Oregon is that federal land, our joint land, be given to them for their personal exploitation and profit. They’re just more blatant than the Koch Brothers and Exxon.

One of the primary goals of neoliberals is to take over the commons. The medical system and wide swaths of the prison system have been turned over to the profiteers already. They play a huge role in the military state and the national security state. With the help of the rich and powerful, they are working to take over the education system with their charter schools and their for-profit colleges. They are all over the place, always scraping away at things we can do for ourselves cheaply and well through government, and routing taxes (which they don’t pay) and profits to themselves at the expense of the people who actually do the work.

The facts today support the views of Arendt and Luxemburg. This is no surprise. The conditions today are similar to the unrestrained capitalism of the late 1800s through the 1920s, with monopolies, oligopolies, vast disparities of income and wealth, and a government responsive only to the demands of the rich.

The Origins of Totalitarianism Part 3: Superfluous Capital and Superfluous People

Previous posts in this series:

The Origins of Totalitarianism Part 1: Introduction.

The Origins of Totalitarianism Part 2: Antisemitism

The Origins of Totalitarianism: Interlude on the Tea Party

In Part 2 of The Origins of Totalitarianism Arendt discusses the history of European Imperialism, primarily focused on England, France and Germany.

“Expansion is everything,” said Cecil Rhodes, and fell into despair, for every night he saw overhead “these stars … these vast worlds which we can never reach. I would annex the planets if I could.” He had discovered the moving principle of the new, the imperialist …); and yet in a flash of wisdom Rhodes recognized at the same moment its inherent insanity and its contradiction to the human condition. Naturally, neither insight nor sadness changed his policies. P. 124, fn omitted.

The driving force of imperialism the search for profits, The people pushing it were the bourgeoisie, the principal capitalists. Until the 1870s, the bourgeoisie were content to leave politics to others, and focus on manufacturing and infrastructure in the home country. Politicians were generally wary of the push into foreign countries.

Beginning in the 1870s as the money invested in foreign lands increased, the risks to the bourgeoisie and their money increased, as nations expropriated their assets or refused to cooperate, or threw them out. The bourgeoisie liked the enormous profits of these investments, but were not interested in taking the risks. They demanded that the nation-state provide the armed forces necessary to protect their profits, and the nation-states complied. Arendt says that this demand for intervention was its assertion of control of the government. She dates the Imperialist period to 1889-1914.

The goal of imperialism was neither assimilation nor integration.

Expansion as a permanent and supreme aim of politics is the central political idea of imperialism. Since it implies neither temporary looting nor the more lasting assimilation of conquest, it is an entirely new concept …. [T]his concept is not really political at all, but has its origin in the realm of business speculation, where expansion meant the permanent broadening of industrial production and economic transactions characteristic of the nineteenth century. production of goods to be used and consumed. P. 125-6.

The goal was to impose a system of capitalist production on the conquered territories for the enrichment of the capitalists. The power behind this drive for expansion was superfluous capital.

Imperialist expansion had been touched off by a curious kind of economic crisis, the overproduction of capital and the emergence of “superfluous” money, the result of oversaving, which could no longer find productive investment within the national borders.

The money was superfluous in the sense that it had no utility within the nation-states. There were no profitable investments that could absorb it, and there was little to purchase with it. The newly rich wanted income from their wealth even though neither the money nor the investments would provide anything of value to the nation-state or its citizens. They invested their money abroad and the nation-state protected their investments at enormous cost to the rest of their citizens. Arendt calls the bourgeoisie parasites.

Superfluous capital is not the only problem with unrestrained capitalism.

Older than the superfluous wealth was another by-product of capitalist production: the human debris that every crisis, following invariably upon each period of industrial growth, eliminated permanently from producing society. Men who had become permanently idle were as superfluous to the community as the owners of superfluous wealth. That they were an actual menace to society had been recognized throughout the nineteenth century and their export had helped to populate the dominions of Canada and Australia as well as the United States. P. 150.

Arendt calls these superfluous people the mob. They are not the same as the nascent working class, but were the people who could not find work at all, whether because of disability or some personal defect or just plain bad luck. The mob included refuse from all social classes. Polanyi refers to this as well. There were the working people, and everyone else. The impoverished and the unemployed able-bodied people were both in this group.

Imperialism provided a partial solution to the problem of superfluous men. They could be pushed into the armies and navies needed to protect the wealth of the rich, and they could be used as supervisors and workers in the mines and factories and on the transport ships carrying the investments of the capitalists and the products of those investments.

The mob of the mid to late 1800s is similar to the “masses” that emerged after WWI.

The relationship between the bourgeois-dominated class society and the masses which emerged from its breakdown is not the same as the relationship between the bourgeoisie and the mob which was a by-product of capitalist production. The masses share with the mob only one characteristic, namely, that both stand outside all social ramifications and normal political representation. The masses do not inherit, as the mob does (albeit in a perverted form) the standards and attitudes of the dominating class, but reflect and somehow pervert the standards and attitudes toward public affairs of all classes. The standards of the mass man were determined not only and not even primarily by the specific class to which he had once belonged, but rather by all-pervasive influences and convictions which were tacitly and inarticulately shared by all classes of society alike. P. 314.

The rich, with their superfluous and restless capital, demand profits with no responsibility to the society from which the wealth sprang. The constant movement of capitalism, generated by that demand, destroys the lives of superfluous people, who have no place in that society, and feel no obligation to it. The nihilism that infected the mob and the masses eventually infected the bourgeoisie, destroying any remaining social values. This destructive combination was fertile ground for the rise of the Nazis.

The Origins of Totalitarianism: Interlude on the Tea Party

As I noted in this post, Arendt says that the great frauds and swindles of the 1870s led to the rise of Antisemitic political parties in Germany, Austria and France. The Grimdungsschwindel in Germany and Austria involved public offerings of investments in what we would call start-ups corporations in railroads, mining, steamships, docks, and so on. The perpetrators were capitalists and aristocrats. Jews were implicated only as financial facilitators. The big losers in these scams was the lower middle class, according to Arendt.

However, another group of people besides noblemen, government officials, and Jews were seriously involved in these fantastic investments whose promised profits were matched by incredible losses. This group consisted mainly of the lower middle classes, which now suddenly turned antisemitic [sic]. They had been more seriously hurt than any of the other groups: they had risked small savings and had been permanently ruined. There were important reasons for their gullibility. Capitalist expansion on the domestic scene tended more and more to liquidate small property-holders, to whom it had become a question of life or death to increase quickly the little they had, since they were only too likely to lose all. They were becoming aware that if they did not succeed in climbing upward into the bourgeoisie, they might sink down into the proletariat. Decades of general prosperity slowed down this development so considerably (though it did not change its trend) that their panic appears rather premature. For the time being, however, the anxiety of the lower middle classes corresponded exactly to Marx’s prediction of their rapid dissolution.

The lower middle classes, or petty bourgeoisie, were the descendants of the guilds of artisans and tradesmen who for centuries had been protected against the hazards of life by a closed system which outlawed competition and was in the last instance under the protection of the state. They consequently blamed their misfortune upon the Manchester system, which had exposed them to the hardships of a competitive society and deprived them of all special protection and privileges granted by public authorities. They were, there/ore, the first to clamor for the “welfare state,” which they expected not only to shield them against emergencies but to keep them in the professions and callings they had inherited from their families. Since an outstanding characteristic of the century of free trade was the access of the Jews to all professions, it was almost a matter of course to think of the Jews as the representatives of the “applied system of Manchester carried out to the extreme,” even though nothing was farther from the truth.

This rather derivative resentment, which we find first in certain conservative writers who occasionally combined an attack on the bourgeoisie with an attack on Jews, received a great stimulus when those who had hoped for help from the government or gambled on miracles had to accept rather dubious help of bankers. P 36-7, fn omitted.

The Marxist class analysis doesn’t fit our social structure today, but translate the lower middle class to the mid- to upper middle class, and the parallel couldn’t be more clear. The big losers in the Great Crash of 2008 were the top part of the middle class, who were losers in the stock markets, and perhaps even lost their homes, and many of whom, particularly those over 50, lost jobs. The rest of the middle class saw their pensions pounded down by Wall Street. Then the rich led an attack on public pensions, and other pensions, further wounding the middle class. There’s one scene in The Big Short where one of the characters points this out. Many people I knew referred to their 201K plans, and others talked about the number of years they would have to work to make up for their losses. As a bankruptcy lawyer, I also saw a number of people who had to file to protect whatever they had left. Not all but many people in similar situations were ready to blame someone besides themselves for trusting the stock market and the economy.

The Tea Party manipulators found a scapegoat: the people who took out mortgages from Countrywide, New Century, WaMu, Taylor Whitaker and Bean, and all the rest of the scumballs. They successfully deflected attention from the people who actually caused the Great Crash: the packagers, the rating agencies, the brokers who sold the garbage, the fiduciaries who stuffed the garbage into mutual funds and pension plans, the bankers who loaded up on it. The banks and their servants blamed the poor slobs who bought houses they couldn’t afford, the strippers in Las Vegas who had 5 houses and a condo (per The Big Short), the families with two jobs and good credit who borrowed to renovate their homes and then lost one or both jobs. You know them, they’re your neighbors. The bankers even got one of their own on the Financial Crisis Inquiry Commission, Peter Wallison, whose dissent became the defense of the cheats and frauds. And Obama and his Treasury Secretary Geithner and his Attorney General Holder and the odious Lanny Breuer foamed the runways for the banks with the lives of millions of formerly middle class people, and excused the bankers with their false explanation of the difference between fraud and greed.

In the DotCom Bubble, the damage fell mostly on upper middle class people who thought they needed to bolster their retirements, or who were sold garbage by sleazy brokers, or for whatever reason. Then they got hammered again by the same people in the Great Crash. Today, their funds are being stuffed with unicorns and other fictional creatures.

On January 2, 2011, I wrote a post titled “What We Lost Because Obama Didn’t Prosecute Banksters”. I argued that people who didn’t know better would believe those lies from the financial empire, and that perp walks and trials would enlighten those who could be enlightened. Obviously that isn’t everyone. But there is no doubt the Tea Party would have had a much harder time getting started if the bankers were being carried off on tumbrils.

Just as the financial scandals of the 1870s started political parties aimed at someone besides the perpetrators, the financial scandals of the 2000s led to the Tea Party, which aims its rancor at people who weren’t the cause of the crisis. History doesn’t repeat itself, but it sure seems self-similar.

The Origins of Totalitarianism Part 2: Antisemitism

Previous posts in this series:

The Origins of Totalitarianism Part 1: Introduction.

In section 1 of The Origins of Totalitarianism, titled Antisemitism, Arendt describes the history of the Jews in Europe. Beginning with the rise of the nation-state in the late 18th and early 19th centuries most, Jews who were long-term residents of nation-states were given the status of citizen, although they never achieved social status, and were always suspected of allegiances outside the nation-state.

Wealthy Jewish bankers historically were treated more or less civilly, because of their utility in providing loans to governments. This group received various privileges, but generally was not admitted to society. They were more interested in remaining part of the Jewish Community, Arendt says, and did not seek assimilation. Many of the sons of the middle class Jews were highly educated. This group, the intellectual Jews, saw themselves as heirs to the traditions of educated Europeans, and sought assimilation. The great masses of poor Jews were isolated in most nations, by choice to enable them to maintain their religious practice, or by custom or by force.

Antisemitic parties grew in Germany, France and Austria beginning around 1880. Arendt attributes the rise of these parties in Germany in part to the creation of the German state by Bismarck who had always maintained working relations with the Jews. The aristocracy hated him because he ended their remaining feudal privileges, and they found it easy to attack him on Antisemitic grounds. Arendt says French Antisemitism is deeply rooted, and even though there was support for citizenship, there was always a great deal of suspicion throughout French society.

Arendt thinks a more important factor in the rise of Antisemitic parties was the massive corruption and fraud that came with the rise of capitalist systems, and which led to a financial crash in 1873 that lingered for years. The frauds were not perpetrated by Jews or by Jewish banks, but were enabled by the financial sector which was dominated by a few Jews. Arendt says that much of the loss fell on the lower middle class, small merchants and artisans. P. 37. The Jews who made loans to individuals among the lower middle classes were not the wealthy Jews who dealt with the nation-state, but small lenders who lived in local communities. They were thought to have political ambitions, seeking to rise to power on the backs of small, non-Jewish, borrowers. Antisemitic parties were a response to these perceived ambitions.

The essence of the first section may be the title of the second part: “Between Pariah and Parvenu”. As noted, some Jews were admitted to society and to roles in the State and intellectual life, but the Jewish people as a whole were excluded. Even social classes prepared to accord those masses a degree of legal, economic and even political equality would not accept Jews into social equality. Most Jewish people of Europe were never fully integrated, and were always on the edge of attack, as the Dreyfus Affair reveals. For those not familiar with this matter, there is a short description of the main facts beginning at P. 89. Arendt doesn’t say so, but Dreyfus’ granddaughter Madeleine fought in the French Resistance, was captured by the Nazis, and murdered in the Holocaust. Her name is on the family’s tombstone in a crowed corner of the Montparnasse Cemetery in Paris. I’ve seen it.

The Dreyfus Affair split French society between the Anti-Dreyfusards who supported the Army in its quest to punish Dreyfus even after it was established he was framed; and the Dreyfusards, who stood for the rule of law fairly applied. Here’s an absolutely fascinating discussion from the New York Times in 1904 of one well-known Anti-Dreyfusard, Madame de Loynes, whose portrait by Amaury-Duval hangs in the d’Orsay in Paris, and is one of my favorites. After Zola produced his J’accuse, people were in the streets on both sides. Leading Anti-Drefusards organized the Butcher Brigades, largely groups of Parisian butchers, to attack the Dreyfusards wherever they gathered, ostensibly on the grounds that they were opposed to the Army, and thus to the nation. See P. 111. This group is a precursor to the Brownshirts, who used violence to attack forces arrayed against the economic establishment in Germany, or the Blackshirts in Italy in the early 20s.

Arendt’s history is much more complex, and even a bit troubling in its emphasis on the role played by Jewish bankers. This brief discussion is intended to point out two of the ideas that resonate throughout The Origins of Totalitarianism. First, it demonstrates the importance of economic issues in creating political movements. The main cause of the financial crash was the unrestrained market organization of the economy, led by the Aristos and the rich Capitalists. The lower middle class supporters of the Antisemitic parties were deflected from identifying the actual cause, in large part because of centuries-old distrust and hatred of the Jews. Thus, the position of the capitalists and the Aristos was never seriously threatened.

It also highlights a crucial point about assimilation. European Jews were always available as a scapegoat in times of crisis. The status of French citizen didn’t protect French Jews, even the famous, like the family of Nissim-Camondo, from being deported to Auschwitz by the Vichy Government.

The Butcher Brigades offer a parallel to the Klan and others who attacked and murdered Black people for decades. They’re like the Pinkertons and the militias attacking union workers across the US for decades. The dead African-Americans, these dead union members and their families, found that they had no political rights despite their putative status as US citizens. We might even see echoes of the attacks on the antiwar protesters in the 60s and Black Lives Matter today, or gun-toting anti-Muslim morons.

Here’s a good example of fear of immigrants from President Wilson’s Third Annual Message to Congress in 1915:

I am sorry to say that the gravest threats against our national peace and safety have been uttered within our own borders. There are citizens of the United States, I blush to admit, born under other flags but welcomed under our generous naturalization laws to the full freedom and opportunity of America, who have poured the poison of disloyalty into the very arteries of our national life; who have sought to bring the authority and good name of our Government into contempt, to destroy our industries wherever they thought it effective for their vindictive purposes to strike at them, and to debase our politics to the uses of foreign intrigue. … Such creatures of passion, disloyalty, and anarchy must be crushed out. They are not many, but they are infinitely malignant, and the hand of our power should close over them at once. They have formed plots to destroy property, they have entered into conspiracies against the neutrality of the Government, they have sought to pry into every confidential transaction of the Government in order to serve interests alien to our own.

According to Wilson, the crime of participating in politics is at the heart of the damage done by these immigrants. They have no right to object to government policies or to argue for one side or the other in WWI. They have no right to organize as unions and take on the capitalists. These are equally grave crimes to Wilson. And his 1915 speech could easily have been given by any of today’s Republican presidential candidate about all immigrants.

And it goes without saying that there is one group of US citizens who have never been assimilated.

The Origins of Totalitarianism Part 1: Introduction

The Origins of Totalitarianism is Hannah Arendt’s analysis of the rise of totalitarian governments, the Nazis under Hitler in Germany and the Communists under Stalin in Russia. It was published in 1951, though it was largely completed in 1945. In its original form it focused primarily on Nazism, and as more detail emerged about Stalinist Russia, the book was revised. There are three sections, Antisemitism, Imperialism and Totalitarianism. The book can be read here. Page numbers at this link correspond to the page cites I’ll be using.

Rationale

Why this book? Anyone following current US politics has seen references to a fascist turn in Republican politics, and in the crowds surrounding at least one of the candidates. Similar but much smaller outbreaks occurred at campaign appearances of Sarah Palin in 2008 and at other Republican and conservative gatherings. One early user of the term fascism was @billmon1 on the Twitter, also here. Arendt’s detailed exploration of the rise of fascism, particularly in Germany, is a tool to help us understand its genesis, and perhaps see certain parallels to today.

In Modernity on Endless Trial, Leszek Kolakowski says:

If we are to believe Hegel – or Collingwood – no age, no civilization, is capable of conceptually identifying itself. This can only be done after its demise, and even then, as we know too well, such an identification is never certain or universally accepted. Both the general morphology of civilizations and the descriptions of their constitutive characteristics are notoriously controversial and heavily loaded with ideological biases, whether they express a need for self-assertion by comparison with the past or a malaise in one’s own cultural environment and the resulting nostalgia for the good times of old. Collingwood suggests that each historical period has a number of basic (“absolute”) presuppositions which it is unable clearly to articulate and which provide a latent inspiration for its explicit values and beliefs, its typical reactions and aspirations. If so, we might try to uncover those presuppositions in the lives of our ancient or medieval ancestors and perhaps build on this basis a ” history of mentalities” (as opposed to the “history of ideas”); but we are in principle prevented from revealing them in our own age, unless, of course, … we are living in the twilight, at the very end of an epoch. P. 3.

Maybe so, but I think most ages are blessed with a few people capable of identifying at least the central points of a civilization, as they write the first drafts of history from the perspective of those who lived through it. They give us signposts for thinking about the best way to proceed into the future, and ways of understanding aspects of we humans and our societies that seem ineradicable. I’m also dubious about the term “historical period”, because there are few ideas that ever really disappear once installed in human minds. Instead they hide in the corners of society until conditions are ripe for another outbreak.

Arendt and Polanyi both wrote near the end of WWII. Both were Jews, educated in Europe after WWI, and both left Europe as Antisemitism struck at their ability to work and to live. Arendt left Germany in 1933, first to Czechoslovakia and then Geneva, then Paris. She was picked up by the Vichy regime in France, and interned in a camp. She was permitted to leave France in 1941 and moved to the US using an illegal visa issued by a US diplomat, Hiram Bingham, and with the aid of a noted rescue worker, Varian Fry. Polanyi left Vienna in 1933, and moved first to London, and then to the US. After WWII, he was unable to obtain a visa because his wife was a former Communist, so they moved to Canada and Polanyi commuted to New York where he taught at Columbia.

The technique adopted by Karl Polanyi in The Great Transformation was to look far back into history to show the wave that swept over European nations with the Industrial Revolution and the rise of capitalism as the dominant form of economic organization. Foucault uses the same technique, for example in Discipline and Punish, which describes the impact of the Industrial Revolution on the working people of France. Arendt uses the same technique. She gives a broad historical perspective to the rise of fascism and communism and their transformation of Germany and Russia into totalitarian states. This technique offers a way to begin to identify a civilization, or a social structure, to get at its roots. Thus, all three follow Kolakowski’s model.

In this post, I described Polanyi’s discussion of the rise of fascism in Germany. It is similar to Arendt’s analysis in The Origins of Totalitarianism. They both see the destruction of social roles of huge numbers of people, primarily from the lower and middle classes, as a crucial element of that change, though they use different sources and different language. Polanyi points to the large numbers of people who lost status and social position and roles in the sweeping changes of the Industrial Revolution, and in the wake of the Great Depression. As we will see, Arendt points to the dislocation of millions as the Industrial Revolution progressed, and to the dislocation of the lives of many Germans in the wake of defeat in WWI, exacerbated by hyperinflation in the early 20s and then worsened by the Great Depression.

It seems to me that the wave of neoliberalism that rose to new heights under the Reagan and Thatcher administrations and has wedged itself in our minds since, is a cultural change, not of the magnitude of the rise of totalitarian states or the Industrial Revolution, but still with an enormous impact on the lives of individuals. For many in the upper class, the neoliberal turn has removed any sense of responsibility to society or to the planet. For others in the upper class, there is increasing fear for the future because of global warming and the rise of oligarchy.

In the case of the lower and middle classes, that impact has been much more concrete. After years of stagnating wages and pointless wars followed by a frightening financial crash, and more wars and political deadlock, the middle class is disappearing. People experience dropping from the middle class as a loss of status, of a place in society, a role, and even a purpose. There is nothing in US society to replace that status, or to provide a new sense of belonging. These dislocated people are not in any way organized. The neoliberal system dismisses them as moochers and leeches seeking handouts while taking no responsibility for themselves. People who are nominally still middle class are feeling similar pain as their future prospects and those of their children dwindle.

The parallels to today are uncertain. But I think it’s worth examining this argument in detail to see if we can learn something useful.

General Plan

The Origins of Totalitarianism is divided into three sections: Antisemitism, Imperialism, and Totalitarianism. I intend to focus on Totalitarianism. I see the first two sections as setting up the third. One of the central ideas in the section on Antisemitism is that the Jews in Europe were never assimilated. There are several forces described in the section on Imperialism that reach full flower in Totalitarianism. Among others, these include the idea of superfluous humans and superfluous capital, which are associated with Arendt’s categories of the mob and the masses, and the whirlwind of capitalism. I’ll take those up briefly, and quite incompletely, before turning to the main discussion.