United States history in high school is taught as a series of disconnected facts and snippets. Students memorize Shay’s Rebellion (1786-87), The Whiskey Rebellion (1794) and Populist Party presidential candidate William Jennings Bryan “Cross of Gold” speech (1896).
However, if we connect the dots of these disconnected facts we find an underlying strain of populism:
‘Populism” is a political ideology the central tenet of which is the conviction that governments ought to concern themselves with providing the conditions for the greatest good for the greatest number. Populists typically are opposed to both oligarchy or government by the few, and plutocracy, or governments by the wealthy
Shay’s Rebellion, the Whiskey Rebellion and the formation of the Populist Party had in common legitimate economic grievances. In each instance farmers and working men were protesting policies of the eastern elites. For example, Shay’s Rebellion was in response to a wave of western Massachusetts farm foreclosures, high state taxes, governmental salaries and court costs, and an inflexible monetary system that favored eastern Massachusetts banking and commercial interests. Similarly, the Whiskey Rebellion and the formation of the Populist Party were in response to economic policies that penalized farmers and the working man. Once again, the rebellion targeted eastern elites, the federal government and national banks.
Modern Day Populism
One modern example of populism is the Tea Party Movement. This movement has focused on deficit spending, wasteful stimulus spending (“pork”), health care reform, high taxes and threats of increased taxation. But is this a true grass roots movement? Some view it as a Republican or conservative public relations initiative designed to pressure and embarrass the Obama administration.
Irrespective of the Tea Party Movement, I believe an authentic strain of populism is alive and well in the United States. Fuel for populism includes:
- Dissatisfaction with both major parties: they are viewed as irresponsible handmaidens of special interests.
- Taxpayer funds used to bailout banks and other financial and industrial enterprises (American Express, GE, AIG, etc)
- Favoritism toward the unions in the GM and Chrysler bailouts
- Record deficit spending
- A zero interest rate policy that punishes savers and retards economic recovery
- Bonuses to executives of nearly failed enterprises
- Health care reform proposals that favor insurers, drug companies and trial lawyers
- Failure to focus on creating good paying, private sector jobs as real unemployment (U-6) hovers at 17%
Flawed and elitist process has added to populist fervor. Bank bailouts, stimulus and health care bills were negotiated in secret, favored special interests, disregarded public opinion, and may have bypassed constitutional and legal safeguards.
Cross of Gold Redux
If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.
Bryan was inveighing against Eastern Banker interests who would not relax the gold standard and allow the currency to inflate to help farmers. Ironically, we have been off the gold standard since 1971, but the same societal problems of elites prospering at the expense of the remainder of the economy exist. Despite its liberal trappings the Obama administration is blatantly favoring bankers and Wall Street, who represent the core of the Eastern Ivy League elite, at the expense of the rest of the economy.
Anger is growing. The Republican and Democratic Party duopoly may face a serious challenge. A recent voter telephone survey revealed that 35% of respondents favor creation of a new political party because the Republicans and Democrats are too alike.
Seventy-five percent (75%) of voters are at least somewhat angry at the government’s policies, up four points from late November and up nine points since September. The overall figures include 45% who are Very Angry, also a nine-point increase since September. Sixty percent (60%) of voters that neither Republican political leaders nor Democratic political leaders have a good understanding of what is needed today. Source – Rasmussen Reports.
Modern day elites who dismiss the rising tide of voter discontent do so at their peril. While I am skeptical about the Tea Party Movement, it may portend an authentic response to a current broad and deep popular anger.
Now all we need is a credible incarnation of Mr. Bryan to focus the anger on the elites who are crucifying the public on a cross of zero interest rates and endless bailouts.
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Related posts:
- The Tragedy of the Commons Part II: Modern Finance and BP
- The Tragedy of the Commons Part I: Modern Finance and BP
- You Say You Want a Revolution Part I
- One Year of Blogging
- Faux Powerlessness Part Deux
Tags: Cross of Gold, populism, Shay's Rebellion, Tea Party Movement, Whiskey Rebellion, William Jennings Bryan
