American Economy and the End of Laissez-Faire – 11 of 13 – Woodrow Wilson and World War I

The American Economy and the End of Laissez-Faire: 1870 to World War II

11. Woodrow Wilson and World War I
Lecture by Murray N. Rothbard

Where did Benjamin Strong – head of the Fed – come from? Rothbard continues to reveal the individuals who shaped our world and wars. Morgan’s empire brought us the irrational and useless WWI. Foreign policy today rests upon this Morgan outlook. The Versailles Treaty was a harsh thoughtless division of lands and economies. Many powerful politicians get their start under Wilson.

Roosevelt and Hoover were both progressive Wilsonians. 1913 gave us the Fed and the income tax.

Lecture 11 of 13 presented in Fall of 1986 at the New York Polytechnic University.

This lecture as a Podcast: http://enemyofthestate.podomatic.com/

Sourced from: https://mises.org/library/american-economy-and-end-laissez-faire-1870-world-war-ii

Source: American Economy and the End of Laissez-Faire – 11 of 13 – Woodrow Wilson and World War I – YouTube

http://www.readrothbard.com/american-economy-and-the-end-of-laissez-faire-11-of-13-woodrow-wilson-and-world-war-i

TRANSCRIPT

00:00
a guy who was appointed on the Federal
00:03
Reserve Board the original Federal
00:04
Reserve Board of Wilson appointed had
00:05
horses a big shot and it goes from full
00:08
Warburg was too low of an office of
00:10
other people well the guy really ran the
00:11
system from 1914 until he died 1928 a
00:15
guy named Benjamin strong and everybody
00:19
admittedly he ran the system he seized
00:21
power as head of the Federal Reserve
00:22
Board in New York he was in control of
00:24
all the bond operations in Wall Street
00:26
which is the key to this whole thing he
00:27
ran it with an iron hand for about let’s
00:29
say so he died so who was a Benjamin
00:32
strong most historians on looking to he
00:33
they they say way that he’s very
00:35
inflationary he he doubled the money
00:37
supply with during the war they were by
00:39
financing the war basically American
00:42
participation the war he kept inflating
00:45
during the 1920s and support England’s a
00:47
crazy long systems I hope to get through
00:49
before term was over is crazy monetary
00:51
system and their virus was possible for
00:54
the Great Depression but he kept
00:55
inflating during the twenty and the
00:57
reaction came in line please a lot to
01:00
answer for store and a question of who
01:01
was they the question but something like
01:03
myself or that ok strong was very
01:05
probably ran the whole system who the
01:06
hell was he really come from what was he
01:08
before he had been head of the Fed
01:10
really running his head when he was a
01:12
vice president and president Bankers
01:15
Trust Company bankers trust companies
01:18
we’ve seen the Morgan a JP Morgan
01:21
institution which created around 1901 or
01:23
so in order to buy trust this remote
01:26
switch in the new instrument then trust
01:27
learned and trade and trust instruments
01:29
that’s the very important there he set
01:31
up a trust a trust a high-powered
01:33
protected or an instrument in other
01:35
words the government can invade trust
01:38
very well he set up a trust it’s
01:40
protected a lot of government intrusion
01:42
so any rate the Bankers Trust Company is
01:45
a Morgan institution Benjamin strong was
01:48
a disciple of Henry P Davison is an
01:50
investor friend of Henry Henry P Davison
01:51
Morgan partner he lives an angle with
01:54
New Jersey which those days were very
01:56
wealthy suburb live right next door to
02:00
Davis and I think there’s other close
02:03
friends or commerce W Lamont
02:06
Morgan partner and Dwight Morrow Morgan
02:10
partner its feed breasts
02:12
in the world of mentors I guess I think
02:14
Davison mentor anyway we’d best tried to
02:16
mentor the world partners of JP Morgan
02:18
and company he joined the Country Club
02:20
race swanky Country Club they would join
02:23
separate separate when he got the gets
02:25
the nod Colonel house of course being a
02:27
Morgan person running manipulating the
02:30
old Wilson’s appointments he gets the
02:33
nod the offering head of Iceland thro
02:36
Reserve Bank of New York he doesn’t want
02:37
to take it if you worthy not sort of
02:39
stuff yeah see I’m not really a million
02:40
president mangers trust he was persuaded
02:43
to take it by Davison LeMond tomorrow no
02:46
no he got to take it we need you about
02:48
Lonnie and he takes it in other words
02:50
Benjamin strong live his entire life on
02:52
the Morgan and JP Morgan but very close
02:54
to the top Morgan person his policies
02:57
every guy the offers were totally
02:59
consonant with Morgan isms in the word Z
03:00
he followed DP Morgan’s basic policies
03:03
which I now get to now brings up the
03:06
world war one JPMorgan Empire was
03:09
getting into economic trouble remember
03:11
Morgan was heavily involved in railroads
03:13
and we’ve had been railroads are
03:15
beginning to collapse 1900 on begins the
03:18
long secular decline of railroad
03:19
industry JP Morgan even though they’re
03:22
in the industry to was lying behind Khun
03:24
lo of when I got the underwriting and
03:26
being investment bankers for industry
03:28
come love with her jump it’s like with
03:30
old monopolies a quasar monopoly there
03:32
it can’t they don’t spot the new trends
03:34
coming in very well and so Morgan’s
03:36
didn’t spot the industry trend you lag
03:37
behind Khun lo cumin was doing better in
03:40
1914 Morgan’s very important New Haven
03:42
Railroad of four hundred million dollar
03:44
railroad went bankrupt and we began to
03:47
see than the right hand writing on the
03:48
wall and Morgan Empire might totally
03:49
collapse might be a total destruction
03:51
for the Morgan vast Morgan Empire when
03:55
World War one comes happily from Morgan
03:57
we had World War one JP Morgan always
04:00
had tremendous very close ties of the
04:02
Bank of England and the English Finance
04:04
English international bankers and as
04:06
soon as the war was declared over
04:07
thinking fourteen Henry P Davison more
04:10
important I guess on the boat that’s on
04:11
the ship I guess they call it no plane
04:14
afford ago Concorde this Oh jet you guys
04:17
how they ship
04:17
rushing us to London it makes a deal
04:20
with a Bank of England and the English
04:21
government a JP Morgan a company got the
04:24
total monopoly
04:26
all underwriting of British and French
04:28
government bonds in the United States
04:30
unbelievable situation in the word
04:32
British French are going heavily into
04:34
debt in order to finance the war effort
04:36
the United States is expected to buy
04:37
most of the modern American put the
04:39
second one was the Blanc JP Morgan a
04:41
company against the total monopoly of
04:42
underwriting and all the big commissions
04:45
which is long cannot believe
04:48
underwriting British and French
04:49
government bond they then happily began
04:52
to float edition of that it’s all
04:55
happening most of the war equipment most
04:57
of the war industry which America’s now
04:58
began to ship to Britain and France
05:00
specially Britain steel and all sorts of
05:02
we’re especially Morgan companies US
05:04
Steel
05:04
Bethlehem various arms equipment for as
05:09
a morning company so here we have GP
05:10
Morgan a company very heavily invested
05:12
now in the victory of the French and
05:14
British World War one and in both both
05:17
of the government bond underwriting
05:18
because of the war equipment
05:19
underwriting of the war exports very
05:24
heavily involved cold it’s essentially
05:25
pull the Morgans out of a financial
05:27
depression but now Morgan the Morgan
05:30
Empire is now totally committed to the
05:33
importance of British and French victory
05:34
the Germans that won the war the entire
05:37
Morgan apart would have collapsed as a
05:39
bond with him worth worthless and all
05:41
the rest of the war equipment industry
05:42
etcetera etcetera so the Morgan begins
05:45
at math like JP Morgan at the very
05:47
beginning some of the war started JP
05:51
says he said it later to I think in a
05:54
congressional congressional vestigation
05:56
he said from the very big start we did
05:58
and we mean his morgan empire we did
06:00
everything we could to contribute to the
06:02
cause of the allies and there was
06:03
everything we could
06:04
dragging the United States in the war on
06:06
the side of Britain and France becomes a
06:08
Morgan project and the entire Morgan
06:11
Statesman so to speak gets involved in
06:13
this thing using all our f1 Woodrow
06:16
Wilson to get him into the war including
06:17
Colonel house lying to Wilson custody in
06:20
orders brought a gun in the war
06:21
ambassador page master the London was
06:24
conniving with a British Secret Service
06:26
and with the British Foreign Office and
06:28
with and with house drag Wilson in the
06:33
world so instead of the domed ominously
06:35
that’s not that he’s unwilling but he’s
06:36
a little bit reluctant and
06:40
the mortgages are all have powerful
06:42
implements to try to do this as as
06:47
Secretary of Treasury McAdoo said it was
06:50
the course again a Morgan person totally
06:52
fully wrapped up with Morgan our
06:54
prosperity is dependent upon all
06:56
continued and in large foreign trade the
06:59
reserve valley must do everything we can
07:00
to assist our customers to buy to
07:02
maintain our prosperity we must finance
07:04
it what the hell does that mean it means
07:06
that we what I mean we have to pronounce
07:07
that what he’s saying is the basis of
07:09
foreign aid program still exist our huge
07:12
quantities that for our export industry
07:15
to be prosperous quote unquote the
07:18
American taxpayer in other words look at
07:22
the situation here here’s exporter in
07:25
the streams those days Morgan control
07:27
because they’re not getting too many too
07:30
much business we the American taxpayer
07:31
has to be have to be taxed the money has
07:34
to be shipped abroad to Vera to Britain
07:36
France and go lower you know whatever
07:38
happens to be whatever a dictatorship or
07:40
whatever is wrong and then these these
07:42
dictators then buy American export and
07:44
use the dollars to run our exports so
07:47
our prosperity is finance – finance for
07:49
our foreign aid what is this who’s the
07:50
hour who’s the we and who’s the hours
07:51
very much like the Keynesian nonsense
07:54
about we then actually the public debt
07:56
is good national debt of goods we only
07:58
owe it to ourselves the question is
07:59
who’s the we and who they are sells the
08:01
we the ourselves here is the is the
08:04
Morgan interest underwear the taxpayers
08:06
being financed at each step of the way
08:09
taxpayers have thought the American
08:10
taxpayer pay through the nose for who’s
08:14
mad but first of all the American
08:16
government takes its handling charge and
08:17
with bureaucrats get some money out of
08:20
this they get their salary the son of
08:22
the foreign against Tyson Walker US
08:23
government the rest of it gets spent of
08:25
Britain France by year you name it you
08:28
underlying Pakistan whoever happens to
08:30
be they get their cut they build up
08:33
their bureaucracy dictatorship whatever
08:35
it is they take the rest of the dollars
08:36
and buy American exports US Steel
08:39
General Electric whatever happens to be
08:40
in other words a whole foreign aid
08:43
process is the process by which the
08:46
American taxpayer is suckered into
08:48
subsidizing American export company and
08:51
plus other bureaucrats the market
08:53
bureaucrats at Farm Bureau and so Morgan
08:55
and Morgan partners a leading the way
08:57
and war propaganda they set up an aerial
09:00
patrol there was an aerial patrol aerial
09:02
coast patrol 1915 the war starts in 1914
09:06
1915 Henry P Davison Morgan partner as I
09:10
made a deal with the Bank of England
09:11
probably one of most important people in
09:12
twentieth-century America almost unknown
09:15
now how many people he figure so he he
09:19
sets up the aerial coast Patrol to get
09:22
and verrucas in this and so forth to get
09:25
Americans to look for German planes and
09:27
they stand there on that on the rooftop
09:29
in New York or somewhere I guess the
09:31
design of what a German plane looks like
09:32
looking at spot your monsunos German
09:34
plane they’re looking looses its war
09:37
history on a part of public yeah yeah
09:40
yeah as the Germans like so creating a
09:44
civil war were climbing charles schwab
09:47
the head of Bethlehem Steel producing
09:50
all of plate hey we got a great now
09:51
inviting summer propaganda to have a big
09:53
Navy need a big Navy they even leave Oh
09:56
shipped US Navy ships and of course
09:57
using armor plate who they gonna buy on
09:59
earth – roughly him steel of course so
10:02
you have these guys these munitions
10:04
manufacturers and Morgan’s setting up
10:07
warhead work propaganda agencies of
10:10
Plattsburgh New York way upstate New
10:12
York uses for a universal military
10:13
training zone these guys set up a camp
10:16
to have the grass and prepare the way
10:19
for conscription which is it’s really
10:21
probably unconstitutional the Morgans
10:23
love this thing for example in the
10:25
aerial coast patrol and the Plattsburgh
10:27
is called a business man’s training camp
10:30
we’ll leave Morgan pipes are up there
10:31
training and getting everybody else to
10:33
come in and military training who is
10:36
running it will look straight Morgan
10:38
partner I was a publisher of New
10:39
Republic robert bacon Morgan partner
10:43
Teddy Roosevelt Morgan tool Henry have a
10:45
large Morgan person
10:47
Elihu root Morgan lawyer these guys by
10:50
1915 are pushing for a declaration of
10:51
war against Germany maybe in a very
10:55
short period time original pro-war types
10:58
DuPont was big arms manufacturer of
11:02
course along favored heavy ammunition
11:03
spending and all the rest of it
11:06
the Morgan Morgan against that we agree
11:11
that we should do all that was legal it
11:13
lawfully in our power to help the Allies
11:14
win the war as soon as possible it was
11:16
like in 1514 the how does why does War
11:22
break out in order because I want to
11:23
talk about this because it’s really the
11:25
beginning of wolf as I said last time
11:27
the beginning of all farm policy all
11:28
farm policy of this day rest on the home
11:31
world war one experience so to speak but
11:35
you really have the real problem whether
11:36
Germany in Russia had a sort of cozy
11:38
alliance for a long time neither would
11:40
attack the other they’re both bizarre
11:42
like Kaiser or cousins or the same
11:45
German family and so a piece of Europe
11:48
continued for quite a while then well
11:49
then happens is we the Russians Russia
11:54
gets taken over by up top Lloris
11:58
fanatics we’re who are especially
11:59
generals and pan-slavic types believe it
12:03
was the holy Russian holy Russian
12:05
mission in life that run into all of
12:08
Slavic people’s
12:09
everything any a value of as a slob the
12:12
destined by God to be won by the
12:13
Russians are so inspired perpetual drive
12:19
by Russian take over the Balkans any any
12:23
place which has Slavs in it the German
12:26
part of Poland the Balkans with
12:28
austria-hungary after Harry area and
12:30
pirates and bad shake that a
12:31
multi-ethnic kind of situation the
12:35
Russians began to alive a kingdom of
12:37
Serbia which was then you know poop of
12:41
huff tops serves the wanted to take over
12:42
all the Serbs in the crow in the
12:43
austro-hungarian Empire living in
12:45
Croatia Bosnia and other places in
12:47
Eastern Europe we had in other words
12:49
that Russia Russian first of all Russia
12:51
was the most imperialist power like
12:53
continent for most of the 19th century
12:54
costly taking over more than several
12:57
Asia of what ash can run along home
13:00
whole bunch of areas Central Asia
13:04
you had an imperialist Russian drive now
13:06
it takes a group the movement on the
13:08
book it will take over Turkey to take
13:09
over the Bulgaria or whatever so this is
13:13
an one with host the cold Balkan area
13:15
there by coming to immediate conflict
13:17
lost on austria-hungary me
13:20
the French their own great they want
13:23
Reese’s a little rain which have been
13:25
taken over by the Germans in 1871 on the
13:28
french-german border it’s a complex
13:32
situation basically what happened was
13:33
that Louie Napoleon have been the
13:35
Emperor of France went to war against
13:39
the German I guess Germany and after
13:42
being kicked back having been defeated
13:43
the Germans took over Alsace and
13:45
Lorraine and the case for Alsace is
13:47
pretty strong I think I was I was out to
13:49
basically German s likely German
13:52
speaking German Lorraine probably cases
13:54
weaker but any rate the result of
13:55
loyalists the stop in France a desire
13:58
for my old party for resilience Rivage a
14:01
revenge an Englishman the room on sheet
14:05
so we have that among especially among
14:08
the French right right-wing for 30 years
14:11
or 40 years agitation quite go to war
14:13
against Germany the route through the
14:15
Reese’s Alsace Lorraine – was not very
14:20
much like as France and France is
14:22
Republican and only other countries were
14:23
monarchy in that time France was
14:26
considered a commie because they were
14:27
Republican but France and Russia finally
14:30
form a faithful alliance around 1890s on
14:33
the basis of this common ground because
14:35
Germany’s allies an Austrian with
14:37
austria-hungary
14:38
begins to develop a mighty block
14:41
situation with Russia and France a law
14:44
and other cuz they like each other
14:45
because they had a common enemy namely
14:46
Germany austria-hungary and so they get
14:51
the war situation being developed
14:52
between these two blocks Great Britain
14:55
I mean time coming very very anti German
14:58
because Germany is rising up
14:59
industrially and Britain came and also
15:02
had the idea only Britain and have a
15:03
large Navy
15:04
oh my god had the Creed only Britain and
15:06
I’m a Navy German even gets the bill of
15:08
naveen
15:08
Britain hysterical that’s high admiral
15:12
fisher the head of the british fleet one
15:13
of the bomb the German fleet 1907 or
15:16
1906 a German fleet was located a little
15:18
coca Copenhagen in Denmark and he had a
15:22
serious kind of vomit it’s like that’ll
15:24
destroy it and it’s finally overruled
15:27
was called Copenhagen operations the
15:29
German fleet any right so Britain
15:33
becomes an ally of
15:34
France and Russia and in the situation
15:39
undeveloped we’re after the server a
15:43
member of the Serbian secret police past
15:46
nice an Austrian Archduke and no known
15:51
as Yugoslavia the Austrians one of
15:54
actually what happened was the Austrians
15:55
one of serves to punish this and faster
15:57
than serve refused to do it and award a
16:00
velocity in Austrian Serbia the Russians
16:01
coming on the part of Serbia and the
16:04
French coming on the part of funding the
16:07
Russians Germans coming on part of
16:08
Austria and the British come in and all
16:10
of a sudden bingos War World War I
16:12
August 1914 the war which is useful from
16:16
any rational point of view and no no
16:18
rational objective in other words
16:20
there’s no justification I can in moral
16:22
justification for any grounds no nobody
16:24
kind of conquer the world
16:25
there’s no none of this stuff these are
16:28
imperial Imperial disputes for ignoble
16:35
and no territorial gain whatever the
16:39
feeding competition by by by mojo a
16:41
fight and in this fight there’s no
16:43
question about a time in my mind the
16:44
major culprits are Russia and France and
16:47
then Britain Germany and austria-hungary
16:49
Germany the least guilty a little with
16:51
natively states the one who dragged in
16:53
because they had a peaceful alliance
16:55
with Austria Hungary
16:57
any rate both I think it will be over in
17:01
six weeks or so quick war will win and
17:03
by Christmas
17:04
famous phrase I was out of the trenches
17:07
by Christmas and what Bertha wasn’t over
17:10
saying we drags on for four and a half
17:11
years for four and a quarter years and
17:15
as it drags on the war gets tougher and
17:17
tougher more and more kale means hope
17:18
the wars unbelievably destructive I mean
17:20
by the end of the war the political
17:22
systems and social assistant economic
17:24
system the loss of life of enormous
17:26
fantastic loss of life and total
17:29
disruption of everything and an either
17:33
side where they have a cup of mice peace
17:34
that they all say I would have to win we
17:36
think we have a holy honor though once
17:38
that once one soldier at one country
17:40
gets kellian said we have to revenge
17:41
this guy’s death and goes on is
17:43
escalating situation and there was
17:45
almost a compromise peace 1916 and would
17:48
Benedick one of the most noble actions
17:51
so no no we have to win crush them so in
17:57
this situation the same Morgan was
18:02
heavily wrapped up in French and English
18:06
victory in addition of that to Lola was
18:10
Pro German school avec une world company
18:12
with German investment bankers they cite
18:15
an era emotionally in favor of Germany
18:17
so that the fight World War one fight
18:19
then becomes a situate and Warburg
18:20
example squeeze out a Federal Reserve
18:21
Board I think procurement we have a
18:23
situation now where the Morgan can use
18:26
the World War one not just have got a
18:27
lot of profit but also the crush kun
18:29
lullaby them to make it much less
18:31
effective when the feeding their German
18:34
investment banking competitors so any
18:38
right so there’s the the reason for the
18:42
war there’s no good reason for any for
18:44
any anybody’s for the war in these sets
18:46
the United States had at least reason
18:47
possibly under the warranty and at all
18:49
because they were trading with both
18:51
sides
18:52
no no territorial I mean our own mission
18:55
no nothing
18:56
so the Morgan is trying to get Wilson
18:59
into the war on the side of the British
19:01
and French and the the big propaganda
19:03
was a submarine Walker trouble thing in
19:05
German was using submarines well a
19:07
situation was that the British are
19:08
proposing a blockade in other words
19:10
don’t let any good though the British
19:13
were seizing American ships with any
19:15
American ship which went to Germany was
19:17
being with see the British kept
19:18
violating American international rule
19:21
and American shipping rightful upon was
19:26
what we were sending a ships native
19:27
Germany’s British would confiscate it
19:29
and the Germans however it’s the British
19:34
command of the sea
19:35
had all the surface ship the Germans had
19:37
submarine thing isn’t some reason can’t
19:38
surface thinking about submarines of its
19:41
surfaces in other words if you have a
19:43
surface ship if they have a destroyer or
19:45
whatever and you’re a battleship you can
19:47
command the ship you know he’s too and
19:50
whatever and you can capture the ship
19:53
you can say okay we’re taking men
19:55
onboard supper buddy you can do that
19:57
some we can’t do it the submarine
19:59
surfaces it gives the order they can be
20:00
destroyed
20:01
Maryna some ringing on a surface of
20:03
totally vulnerable no weapon okay so the
20:06
submarine and what the British would do
20:08
then if it’s submarine try to get a
20:09
British merchant ship merchant ships
20:11
were armed by the way of course the
20:14
British submarine surfacing and said go
20:16
to the merchant ship immediately destroy
20:17
the submarine we maybe shoot it so
20:19
sudden we had to torpedo the ships
20:21
there’s no way today getting there was
20:23
ahead they couldn’t surface and give a
20:25
warning because then they’d be smashed
20:27
so submarine warfare since the Germans
20:30
were forcing a submarine warfare as I
20:31
couldn’t have any didn’t have any
20:32
surface ships worth much and they were
20:34
forced in the situation I had a ship
20:36
pedo use the torpedo first without
20:38
surfacing and giving warning so it was
20:41
easy to whip up propaganda emotional
20:43
propaganda against the Germans in the
20:44
United States I think look the Germans
20:46
are probably they’re not fighting fair
20:47
cuz a submarine E&I; using torpedoes and
20:50
that’s surfacing to give warning I
20:51
couldn’t give warning and the whole
20:52
point is whole point of a submarine is
20:55
impossible for them to do it but
20:57
actually the British were interfering
20:59
which war with American shipping and
21:00
Germans were and we were out to defend
21:02
the rights of international law on
21:04
neutrals etc they should have won a war
21:06
against the British not against the
21:07
Germans clear-cut nobody was advocating
21:13
however going to war on the side of the
21:14
German World War one
21:17
so the what then it also happened was
21:20
elusive painting the famous incident
21:22
occurred in 1912
21:23
I’m Sydney 1916 1916 with a Lusitania on
21:28
British arm merchantman both from New
21:31
York to once in London
21:34
arm in other words it was perfectly
21:36
legitimate for submarine to destroy to
21:38
shoot it the torpedo in an international
21:41
war but it was an armed merchantmen it’s
21:42
not peaceful merchantman Americans went
21:45
on boarded American passengers went in
21:47
it you know they knew was know I’m
21:48
richer than them they were a peculiar
21:52
situation and British sucked them into
21:53
and say yes this was perfectly safe and
21:55
so on I get a lot of big shots out of
21:57
American big shots on it the ship was
22:00
then sunk by the german for peter by
22:02
german submarine had to drive immense
22:04
Astari in the United States go to war
22:06
with Germany later American lives were
22:08
lost well the first little walk that you
22:09
get on America non-english merchantman
22:11
which is a war with Germany obviously
22:13
here at risk why these jerks and
22:15
something’s I haven’t study the specific
22:18
question why didn’t know it I think they
22:20
were sucked into a mine for my pumping
22:21
anima the government perfectly safe on
22:24
Loblaw now there was some evidence this
22:26
has been disputed it’s not been accepted
22:28
yet and some evidence in fact what some
22:31
Churchill then Secretary of the Navy
22:34
secretary the Navy in England there was
22:36
he was the first war the Admiralty
22:38
deliberately created a situation where
22:40
misleading the British the campin
22:43
Lusitania and not telling that they were
22:45
German submarines in the area so that
22:47
would be sunk other words the British
22:48
wanted to create an incident which would
22:51
where they could use the sinking rumor
22:53
of a British ship with America’s honor
22:56
to tank Germany war propaganda this is
22:59
not been a fully established I wouldn’t
23:00
put a past Churchill an earache it’s
23:03
possible that he’d literally did this
23:05
not warning that sending warning of the
23:07
German submarines in here allowing it so
23:09
to speak to be sunk and the creating a
23:11
tremendous war history in the United
23:13
States the British my weight deny there
23:15
was an arm ritm and although of course
23:16
it was some other things
23:19
so and it was the submarine warfare
23:25
question again which which induces a
23:27
which got the climate of opinion
23:29
Saturday night Wilson that welcome to
23:31
Claire war against Germany and enter the
23:33
war for the tune of the huge amount of
23:35
American lives lost plus property plus
23:37
total destruction of nineteenth century
23:41
civilization really creation of
23:42
conditions we’ll see next time
23:44
allowing the garage of bringing about
23:46
the rise of Nazism and communism there
23:48
would not be any Bolshevism in Russia
23:50
and not be any Nazis in Germany if not
23:52
for World War one well all created the
23:54
conditions for the whole connieyc
23:55
century stop home were Crusades
23:58
perpetual war all the rest of it okay
24:01
we’ll take that up Tuesday I’ll start
24:04
talking about the exam I think I’m gonna
24:05
have essay questions next week read I
24:12
guess will use for the final reading
24:13
read on the war the final chapter of
24:17
Weinstein
24:18
magnificent pilot a person who will
24:21
award fulfillment Sasser Capra great
24:25
beauty
24:27
and also one of the best chapters in
24:30
Hugh’s chapter 23 on the command economy
24:33
World War one what this is this
24:36
possessive so-called revisionist view
24:37
World War one on the economic front
24:41
until Weiss I wrote my cocoa has similar
24:45
the coca I was when he talked about the
24:46
war stops more or less with the war
24:49
before this was considered the
24:52
progressive the rest of the Aeropress
24:54
progressive reform I was was ended by
24:58
World War one where he has great
25:00
progressive movement and helping the
25:02
mankind on rest of it and welfare state
25:04
and all that and then all of a sudden
25:06
war comes along as killed progressivism
25:08
and well why sign points on a contrary
25:10
to wrestling war was the culmination of
25:12
the progressive movement a little bit
25:13
key thing to provide a little thing they
25:15
wanted in spades and they realize that
25:17
they’re all in favor of except for one
25:19
of the two people is except for couple
25:20
of Mavericks who didn’t like the idea
25:22
most of the progressives love the war
25:24
and they told us in the great we’re
25:25
greatest thing that ever happened in the
25:27
United States we’ll get into that in a
25:28
minute
25:28
and he was also talked about that the
25:31
war the command economy so it’s a very
25:39
different view of the rest of movement
25:42
namely the stateís movement which is
25:43
favor any kind of state action including
25:45
person including a war similar thing
25:47
happened with the No Deal Perry in World
25:50
War two generally considered that
25:52
Roosevelt said when we enter the world
25:55
war two the doctor New Deal is now
25:57
Gorman replaced by Baca win the war
25:59
this assume that the war put an end of
26:02
the New Deal ISM there’s quite the
26:03
contrary the war was before film in the
26:05
movie okay maximize state power eleven
26:08
media wanted to do and came from a
26:11
permanent heritage of a massive state
26:13
after that what’s happening in American
26:15
history is basically that if you want to
26:18
have sort of a diagram of government
26:20
power which is very different I can’t
26:22
really precisely
26:23
obviously measure it one-half
26:25
the government powering over society and
26:29
the economy it’s usually pegged along
26:32
first at a low level
26:34
Peggle or until a total war pops up in
26:36
other words crystal war of 1812 big
26:39
increase in taxes and government control
26:41
on the rest of us government’s budgets
26:43
or we spent 30 years rolling back
26:46
Jacksonian Democrats spent about 30
26:49
years getting rid of the effects of
26:50
World War of a war of 1812 excise taxes
26:53
several Bank equation airy banking
26:57
person the money supply a big increasing
27:00
I mean the Army Navy and somewhere it’s
27:02
owned by the eighteen forties expect to
27:04
wipe that and we become also there on a
27:07
low level to a civil war him a massive
27:10
increasing government power the income
27:13
tax comes in the draft comes in huge
27:16
excise taxes on liquor and tobacco big
27:18
increases in the budget high tariffs
27:20
government subsidies all the rest of it
27:22
and we take another thirty years trying
27:24
to wash that out never really totally
27:26
went back but we never got really
27:30
protective tariffs and certain customs
27:32
by the way the neat by the 1840s as
27:35
before 1840 there’s no national debt
27:39
Jefferson had paid off the national debt
27:41
before that almost no tariffs very very
27:45
low new parent very little government
27:48
breeze no income tax either there’s
27:51
almost no taxes I know and and so then
27:55
we have a big increase and also pre pre
27:58
banking system more or less and then we
28:01
have a massive government money and so
28:03
if we’re we only partially watch that
28:05
out by 1890 that comes World War one you
28:07
have another tremendous increase in
28:08
government power she never again when we
28:11
lose a little bit and we’re one to
28:12
another huge increases when we reduce a
28:14
little bit so in other words they have
28:15
like a ratchet effect the reason for
28:17
government growth of government
28:18
chorionic States and against the society
28:21
and the economy as was war more times
28:24
this is basically it except for a few
28:26
like the progressive Perry where was no
28:28
more than a preparation for war to this
28:29
peak it’s not the only exception of that
28:33
the the worker as Randolph Bourne the
28:37
great of the carrion
28:39
writer said around during world war one
28:40
war of the health of a state nor it was
28:43
alive the state excuse for massive
28:45
expansion there’s a great new book
28:48
coming out which I recommend everybody
28:49
it’s not hasn’t been published yet
28:51
I can’t require you to read it so come
28:53
out of the summer my Robert Higgins well
28:56
Isis and Leviathan which deals with how
28:59
the economy and society have a
29:01
tremendous increase in government power
29:03
because of wartime really should be a
29:06
blockbuster he’s one of the very few
29:09
social scientist he’s an economic
29:11
historian one of racing social
29:12
scientists and both premark both Pro
29:15
free market and anti-war it’s a very
29:17
small number of people take that
29:19
position although in the 19th century
29:20
everybody Fremont
29:21
all the free market people are anti-war
29:23
that’ll about 1900 1905
29:26
at any rate for unison economy of World
29:31
War one well I finish up on the wars I
29:35
mentioned last time the war broke out
29:38
largely because of Russian imperialism
29:41
in the Balkans the tensions that we kind
29:44
of run all the Slavs and the Balkans or
29:46
any any Slavic consider the Russian
29:48
naturally naturally born Russian
29:50
tutelage and Frances desire to grab a
29:52
lot the reigning back in England’s
29:55
desire to crush Germany makes sense
29:57
German competition industrial might and
29:59
Navy as a result World War one breaks
30:01
out each sausage hero can win great
30:03
quickly Wilson a penalty steps in a
30:07
preventive ago she ate at peace in 1916
30:09
which would have at least prevented most
30:10
of the devastation listen by Owen at
30:12
this time 18 you get into the war on the
30:13
side of the Allies because of the Morgan
30:15
object in the Morgan connection also
30:18
does the books and I affirm world global
30:20
salvation through quiet as designers if
30:23
we make the world America might
30:27
importance of biases dedicated clientís
30:31
type so we have a fusion of Pietism
30:35
progressivism Pietism and we’re
30:38
independent applying on the world level
30:40
are not just an American level I just
30:42
stamp out thin
30:43
American levels in the world level then
30:45
was defined by the Boltzmann me anything
30:47
woulda kradic in other words what he
30:49
want is every country to be democratic
30:50
some way
30:51
centrist neither Marxist nor monarch
30:55
istic they’re both both monarchies and
30:57
are absolute monarchies and Marxian
31:01
government violated his Creed or what
31:02
both who thinks thinks the world should
31:04
be cheated but thought the world should
31:05
become basically Wilson by the way
31:07
stepped forth all of American foreign
31:09
policy presenters actually been both
31:10
Sonia regardless of the party even the
31:13
1920 evenly Republicans the nineteen
31:16
twenties were basically wilsonian
31:17
certainly Secretary of State Hughes a
31:20
Rockefeller person little Sony else
31:24
Richard Nixon became president the first
31:26
thing he did was to put the picture of
31:28
Wilson up on the ID over his desk his
31:30
inspiration so the whole event will come
31:32
he has ever since that and we will sunny
31:34
doesn’t meaning the United States has
31:35
become some kind of god-given mandate
31:37
see to it everybody in the world of them
31:40
democratic with our democracies
31:41
everywhere and all the world shake stop
31:44
recording United States desires and so
31:48
he Stephanie preventible know she had a
31:50
piece and World War one but that time
31:51
his idea was every every ethnic group
31:53
should have national self-determination
31:55
that’s a question if this was a 19th
31:58
century liberal view national
32:00
self-determination opposition to
32:02
imperialism each nation if nationality
32:07
should have a throne school and language
32:08
his own government for what so on the
32:10
problem is this was done through
32:12
coercion other words through America
32:14
imposition from above and at Versailles
32:17
after the war was over tremendous
32:19
devastation of the war a Victor’s piece
32:22
of court written by the victors
32:24
the map of Europe was redrawn allegedly
32:27
according to a both Sony and principle
32:29
national self-determination however and
32:32
had an expert so these historians were
32:34
appointed by Colonel house about a year
32:37
or two before the end of the war called
32:39
the inquiry who much of actually could
32:41
was signed as an historian signing how
32:44
to carve off the map of Europe he’s a
32:45
beautiful with the beautiful opportunity
32:47
for intellectuals to take over here they
32:49
know intellectually were given for the
32:50
first and last time perhaps the power
32:52
lead you all a map of Europe only almost
32:54
at will and you can and they did it
32:56
can’t imagine how they botch it up in
32:58
other words if they they’ve been blind
33:00
if they’ve been play the what they call
33:01
it in the donkey and there’s knocking
33:03
yeah I take
33:03
that of Europe and auditorily you know
33:06
blindfold 1000 and number truly picked
33:08
out weight carving up the map of Europe
33:11
but purely blindly it could have done a
33:13
worse job and I did unbelievable with
33:15
him these few things that the
33:16
questioning has a create a perpetual war
33:19
from then on that’s the 20th century but
33:22
it was done it wasn’t really ran and was
33:24
done with a certain amount of malice
33:25
aforethought it was under Colonel house
33:27
and all of them
33:28
historian especially in the Morgan ambit
33:30
and it was carved up and put you Europe
33:34
with cargo to put you away at the
33:35
benefit maximum benefit the British and
33:37
French imperialism the curious thing is
33:39
what happened in Europe at that time in
33:41
Eastern Europe began to set the stage
33:44
for the rest of the funniest century but
33:46
I think for the first and last time in
33:48
world history I cannot at least modern
33:49
history a very peculiar situation
33:52
developed in Eastern Europe namely
33:53
usually when a war or no war launched
33:57
either one side when the other side or
34:00
both sides went on a work thighs aren’t
34:01
a stalemate situation either once I wins
34:05
both sides are stalemate because the
34:09
peculiar situation in Eastern Europe and
34:11
World War one both thighs lost I can’t
34:15
think of another situation both sides
34:16
are crushed what happened what happened
34:19
was that Germany here’s Russia and the
34:29
other tomb it can become bats and also
34:32
austria-hungary forces also having a
34:34
cotyledon
34:34
demolish totally that’s really like Mike
34:38
wiped out by the Allies who’s carved up
34:42
some Germany first crushed Russia Russia
34:44
was kind of massive on me huge army and
34:48
they what they simply lost their worth
34:50
they were smashed and as they were
34:53
smashed what happened by the intro the
34:54
end of the war was it simply a 1917 it
34:57
exposes that walked off they shot their
34:59
officers and left they walked home mass
35:02
mutinies and there on the Russian front
35:04
and even though Russia was probably
35:07
behind the warm in oil favor of until
35:09
they won that’s by the way typical of
35:10
States in general as long as the country
35:12
is winning everybody loves it long as we
35:14
crush Grenada every month
35:15
thank you if I have a costume start
35:19
coming back a body count goes up support
35:21
for the war begins to dwindle and as
35:24
Russia started losing the war they all
35:25
they all left you have a massive mutiny
35:27
and rushing across Eastern Front
35:30
so here’s Russia losing the war and a
35:33
massive disaster every point you’re
35:35
accusing the lead increases they get out
35:36
and we’ll say no we’re committing some
35:38
recurring out of the war effort
35:39
including the Bolshevik Party which was
35:41
– that’s in the very beginning it’s an
35:43
imperialist war Russia shouldn’t engage
35:45
in it Bolsheviks paying the same damn
35:48
thing and saying no no German
35:49
imperialism or Lavoie by this time by
35:50
the way the United States propaganda
35:52
machine claimed I think they really
35:54
believe it by the time the Kaiser
35:56
without for world domination
35:57
throughout the conquer the world
35:58
therefore any any moment can invade the
36:00
United States literally impossible
36:03
absurd begin with and therefore she the
36:05
Kaiser that was the center of all evil
36:07
have to crush the Kaiser at old course
36:09
so all the parties were racking up
36:12
disastrous policy including a Bolshevik
36:15
Party when Lenin returns from exile
36:18
arrives of famous Finland station
36:20
running your honor
36:22
early in frame nineteen I think a book
36:23
17 he says what is it what is this
36:26
matchup we should get the hell out and
36:27
get the hell out of the war the public
36:28
once again out of warm it’s the only
36:29
rational thing the majority the
36:32
Bolshevik Party are against them much
36:33
like everybody I think finally happen by
36:35
sheer mental force he had to persuade
36:38
the yellow from them Oh serving party
36:41
who convinced them change their position
36:43
so finally in Fermat’s two or three
36:44
months he’s able to do it the Bolshevik
36:47
Party then became the only important
36:48
Russia to say we got to leave the war
36:50
and the basic reason for the Bolshevik
36:52
takeover
36:53
remember in 1917 that their only party
36:56
so we gotta leave the war gonna quit
36:57
everybody else the Social Democrats
36:59
official revolutionaries the Mensheviks
37:01
or supreme Darras could that bully fear
37:04
the whole group whole spectrum i
37:05
collapse i were committed to the end of
37:07
the war effort throw more resources than
37:08
battling the evil germans so only limits
37:12
that we got to get out that’s the basic
37:14
reason for london victory the Bolshevik
37:16
Party was small but they were the only
37:18
ones that said now we gotta get out of
37:20
the war and it grew a lot of people
37:22
through the Bolshevik ranks and finally
37:23
a movie even will take over the other
37:27
the other slogans are part of Lenin’s
37:29
they’re the only ones
37:30
the peasants getting their land back
37:31
from the year from the landlords the
37:34
peasant party president have a big party
37:36
of social revolutionary party supposedly
37:39
a peasant interest get rid of human and
37:41
serfdom rest of the press I think the
37:44
effective surface I mean being landlord
37:47
seizure present land they were a
37:50
favorite present land so half of the
37:51
summer of 1917 and growing chaos in the
37:53
world losing the war the peasants are
37:55
taking over their own land I was
37:57
shooting the junior landlords are taking
37:58
their land back and social revolutions I
38:02
want their favoritism principle we can’t
38:04
wear this is too anarchic we gotta wait
38:06
for a parliament to be established if
38:08
there wasn’t a meeting Palma several
38:09
years feather the peasant party turning
38:12
out the peasants himself once again only
38:13
Lenin both should make sure against
38:16
everybody ethic step – oh no no we can
38:18
ratify it it doesn’t throw a great great
38:19
shaping there all right there’s a
38:21
revolution sharing group of this point
38:23
violating the principle of the marks of
38:25
them which is only anti peasant I mean
38:27
Marxist Marx himself supports both of
38:28
the peasants were just rabble and the
38:31
really progressive classes of industrial
38:33
to co-op Harriet Industrial Workers the
38:35
cousins a reactionary agent should be
38:37
disposed of anyway but when on being or
38:39
be keen political entrepreneurs at its
38:43
peak I think override as marks of them
38:45
so now that we this is the change we got
38:48
a night with a puzzle
38:49
so when and was the only person all of
38:50
Russia was saying the peasants are right
38:52
the only leader the president right in
38:54
there and we got to get out of the war
38:56
and then those two bases land and peace
38:58
a Lenin is able to take over thought
39:00
that everybody and rush your red dot
39:02
copy Paul come in as an FSO team the
39:04
only one of the Rays of the correct
39:06
position here is any rate when he
39:09
finally took over it was a big struggle
39:10
to get out of the war even within the
39:13
Bolshevik Central Committee
39:15
Lenin said we got a ratify current
39:18
borders there was getting out of the
39:19
ward let’s say okay we get we conclude
39:22
piece of it with a current board at that
39:24
time the Germans have taken over the
39:25
Ukraine and White Russian and set up by
39:28
the way a columnist for the first and
39:31
only time that Ukraine is and white
39:33
Russia had been independent like in many
39:35
centuries during this brief period about
39:37
six hundred six months of Germany Nakia
39:40
pilot and set off for allowed
39:44
crane Ian and white Russian nationalism
39:46
take over so the Lenin – no we got to
39:51
conclude a piece the entire Bolshevik
39:52
Committee almost went to stir up all on
39:54
this point no no he can’t do we have to
39:55
crush German imperialism rolled back
39:56
holy German soil
39:57
probably Russians saw all the stuff
39:59
félicité of bourgeois nationalistic
40:01
views trusty and all these double Connie
40:05
also no no we ever continue the war
40:07
instead of that Lenin just over rows of
40:09
them and concluded with famous
40:11
appeasement piece of Brussels of tusks
40:13
and March 1918 which Russia Russia
40:17
successfully got out a war quit so as
40:24
America at the situation when Germany
40:26
occupy of Ukraine and wait Russia Russia
40:28
Russia was out of it and then we’re in
40:30
Russia and when will feed it Emily a law
40:33
in the United States Britain France can
40:34
conduct a massive offensive and defeated
40:37
Germany in November 1918 the Germany was
40:40
defeated and this meant that both
40:42
Germany and Russia to great power the
40:44
Great Powers nation you’re a little both
40:46
defeated both prostrate
40:47
prostate there’s a very unusual
40:49
situation with two mighty superpowers
40:51
both beaten this left the power vacuum
40:54
in Eastern Europe a power of anguish the
40:56
Allies Britain France United States and
40:58
took advantage of a set up client stage
41:00
of quasi puppet state in Eastern Europe
41:03
the idea was to have these states be the
41:06
buffer zone to keep down Germany and
41:09
Russia Germany would hate over they were
41:11
they were the enemy they were defeated
41:13
okay Russia invading is a communist
41:15
gotten out of the war he had two enemy
41:18
country so to speak moocher big Russia
41:20
and Germany the idea was they have set
41:22
up the space in Eastern Europe which
41:24
would perform the function of keeping
41:27
them permanently Germany and Russia and
41:29
keeping the subjugated countries the
41:34
idea that was crazy in the long run if
41:36
these countries have been heavily didn’t
41:38
have the resources to do it just totally
41:40
totally idiotic the long-run proposition
41:43
but that was the idea keep down so they
41:47
set up in Eastern Europe one of those
41:49
independent stations laugh it’s going to
41:52
be like oh we need it but basically set
41:54
up Poland as the client state
41:57
Eastern Europe making : as strong as
42:01
possible that including with any problem
42:03
not just ethnic Poland which would have
42:04
been perfectly legitimate a principal
42:06
national self-determination allow
42:08
independent grant under penofin ethnic
42:11
poetry more what something like this
42:13
what stall lunch area Polish heartland
42:17
instead of just giving you the penis’ of
42:18
that they gave Poland a huge amount of
42:21
territory
42:21
one white Russian and Ukrainian huge
42:26
chunks white Russia Ukraine each chunk
42:28
of a selenium and huge chunk of Germany
42:31
which is which were sliced off from the
42:33
German heartland namely a east
42:37
each Russia hilarya huge parts of Russia
42:42
and especially weapon use chapter
42:45
pressure by Lygia big : area a sous
42:49
baton in Germany so that you land an
42:51
area so all this would put place under
42:54
Poland okay so the when I was growing up
42:57
with a map the European map the 1930s
42:59
Poland which we consider the kid lost
43:02
Poland by its natural function really
43:04
only about half of it was Poland that’s
43:06
a village huge chunks of Germany
43:08
white Russia and praying all whom hate
43:10
of the poles of course for the good
43:12
reason at this point so we had then
43:14
Poland would be the power center keeping
43:18
down the Russians Germans in Eastern
43:20
Europe check lavake it was also carved
43:22
out here we had our macchia the Czechs
43:26
were our clients think check we love the
43:28
Czechs Mazurek was here in the eyes
43:31
facing them it’s the only thing will
43:32
commence ever etc so we had no he has a
43:36
check and the Slovak for whom hate of
43:38
the Czechoslovak hated each other’s guts
43:40
for centuries hey each other’s got
43:42
financial you place in one country for
43:44
the Czechs dominating the throwbacks and
43:47
also the call castle ukrainians really
43:49
do cranium the whole chunk the Czechs
43:52
were given power over the people around
43:54
around half a charge of ocular check
43:56
let’s live actually they dominate it and
43:58
with carpaccio training is nominated
44:00
checks and you were sloppy it was set up
44:03
carve out of austria-hungary with with
44:07
the servants or our clients that
44:11
the service dominating the other half
44:12
like a great wish a Croat Slovene
44:15
Montenegrin macedonian said all whom
44:20
hate that sir against a good reason they
44:23
had a service about half the population
44:26
terrorizing over the regular country
44:28
they have a check Stern eye though the
44:30
checks let’s check some checks with
44:33
Serbs and polgár our favorite state
44:34
they were the client spike and I
44:36
supposed to keep down Russia and Germany
44:38
and their peripheral it was small anyway
44:39
second of all they were in a huge amount
44:41
of friction within their own country and
44:44
its setup no one set up a permanent
44:46
problem or permanent friction or an
44:48
problem of domination and resentment
44:51
among people being done that so instead
44:53
of granting national self information
44:55
every group there only granted three
44:56
estimate groups the restroom were put
44:58
under the domination of the people they
45:00
hate it exactly the long-run setup ok so
45:05
there’s no such thing as you books loft
45:08
or those the thing is check Oh slobs see
45:10
all this is American English and French
45:12
propaganda there are checks there are
45:13
slow Lacs there a co-op of Serbs gonna
45:16
hate each other’s guts stuff where and
45:18
so on for a while Russia was being
45:20
crushed nothing worked for a while
45:21
United States and I say France and
45:26
that’s a frantic Japan all invaded
45:29
Russia try to overthrow Bolshevism this
45:33
really cemented voters the Russians
45:35
didn’t like being invaded for obvious
45:37
reasons and it’s really both their
45:40
Bolshevism our lines are overthrowing it
45:42
and the pose invaded Russians see the
45:44
whole bunch of cheeses eastern Ukrainian
45:46
Russian zone here
45:49
so when Russia had finally got out of it
45:51
when when trucky build up the Red Army
45:53
you finally beat back the Allied forces
45:54
obviously a lot of hatred between what
45:58
East and worked already so we have none
46:01
of those conditions were beautifully set
46:02
up for another war for a second world
46:04
war because the German German a foreign
46:06
policy then became for the rest of the
46:08
twenty years and gets back of territory
46:09
there were caused up at us and we’re
46:12
territories carved up the Allies force
46:15
the German allies impose them food
46:18
blockade
46:18
he almost this was almost it was
46:22
apparent remember 11th 1918
46:24
until the peace treaty was signed the
46:26
following year I think September or
46:28
August is something the allies impose a
46:30
food blockade British and French
46:31
blockaded German through the mass
46:32
starvation in Germany in Central Europe
46:34
after the war about nine months after
46:36
war was over
46:37
so that Germany could find the famous
46:39
war guilt clause confessing to prove
46:41
award guilt they were the only guilty
46:43
parties and roll along for I’ll be the
46:45
Bologna probably they were the least
46:47
guilty of any of the states Fanta sign
46:49
of solar Wardell klog so to rub the salt
46:51
on the wounds so in other words now that
46:54
the rain was taken away from Germany
46:55
they speak German areas and they going
46:57
on taking away the Polish card or paying
47:00
away and also the colonies and Africa
47:03
and some German foreign policy
47:06
regardless of what party right left or
47:08
Center for the next 20 years the vote of
47:10
the getting back the country the
47:11
territories that we are Menken you know
47:14
Alice almond look imposed on Germany
47:15
also Versailles Treaty and and and they
47:19
attempt they then the idea forget the
47:20
territory back on the English for a long
47:24
time was saying yes they really right
47:25
you have to we can’t do just those
47:26
because it’s all and give them a
47:27
territory by another person that did it
47:28
so an Russia was crying against their
47:31
territory back then was the goal of
47:32
Russian foreign policy both countries
47:34
both Russia and Germany became revision
47:36
of countries in Versailles Treaty and
47:40
the idea then what’s the rush you want
47:41
to get its territory back in Germany
47:43
wanna get it started regardless of
47:44
ideology or they want to get the
47:45
territory back and so the pain of Hitler
47:48
Stalin panic in 1939 should not have
47:50
been a surprise anybody the big shocker
47:52
though like those in the United States
47:54
it sure was a very easy to understand
47:56
for the Russians there they got there
47:57
they’re carrying back eastern Poland
47:59
which is really part of Russia I got the
48:02
Finland I’ve got the Estonian laughing
48:04
Alania back and the Germans about that
48:05
territory back for if they also had it
48:07
some more obviously but the point is it
48:10
reached their objectives and the unity
48:12
the common ground they are regardless of
48:14
the ideological differences so it’s set
48:17
up the none of the whole rest of the
48:18
20th century the Cold War’s was set up a
48:21
cousin of Versailles Treaty
48:23
total total total flagrant disaster any
48:27
rendition of that to get to them back to
48:29
the economic aspects all the boring
48:32
countries I mean Russia I mean Germany
48:34
and the France United States in England
48:36
conduct of the war ever
48:38
different ways in which they conduct a
48:39
war before for that first place war was
48:43
not really total or was really more
48:45
gentlemanly sort of foot the armies for
48:48
the ending kill civilians there was a
48:49
so-called international law was
48:51
developed seventeen 18th century if you
48:53
have to fight don’t kill civilians don’t
48:55
interfere with neutral train or rest of
48:57
it the way the world is cause right now
48:59
in a total war civilians were sort of
49:01
fair game and also each war was running
49:05
a collectivist bases because the entire
49:06
economy is collectivized by each side by
49:10
the United States by England my France
49:12
Reich Germany and you know they all
49:13
loved that they came out of the war this
49:15
is great they have a collective system
49:17
we have kartalija the thumb that we have
49:19
the impose yeah controller in all of
49:23
Industry we impose price control
49:24
production control in post coming forth
49:27
trade association have the whole fascist
49:29
or corporate earth system and now
49:30
imposing and in the name of the war
49:33
effort you have to have a war up in well
49:34
yeah therefore we have to run no other
49:36
war let’s pull it that way or other wars
49:37
are for by your tax arguments like them
49:40
resources away from the privates that
49:41
green just fight the war
49:42
now the ideology of no no you have to
49:44
total control all the economy in order
49:46
to fight the wars alone II didn’t have
49:48
to have it
49:48
it just has fit in with of course the
49:50
whole ideology of Progressive Era namely
49:53
the Morgan and the United States the
49:54
Morgan Rockefeller who know of drive for
49:57
state domination for government Kartal
49:59
is a shoe and they impose public
50:01
correlation World War One World War
50:03
collectivism and they loved it what do
50:05
they love it president yeah finally hand
50:08
government planning you had
50:09
intellectuals running in system
50:10
historian economist and technologist
50:12
than you engineers all running
50:14
everything what do they love it but
50:16
several hundred thousand people were
50:17
killed Americans are killed in the war
50:18
many millions of Europeans that I was
50:21
unfortunate life are they love the war
50:22
system and so from then on after the war
50:28
is over they try to ever come back to it
50:30
all the guys were running in the war and
50:32
it will pretty young son raising in
50:34
their 30s sometimes they have 20s the
50:36
rest of their lives which been into the
50:38
current period they try to restore the
50:39
war system I work I liked the veloute
50:41
can’t have a war have it the fight
50:43
depression have it the fight inflation
50:44
if something have a government planning
50:45
system the government business
50:47
partnership big government setting
50:49
fixing try
50:50
production and so forth having trade
50:52
associations of businessmen and then
50:54
unions running labor force corralling
50:58
labor forces of partners
50:59
quite quite by car in agreement so and
51:02
miscellany for channel it’s called
51:04
fascism and cannot make sphere but
51:06
basically the the New Deal was very
51:08
someone whose he was a prime of a store
51:09
they all or more to system than they get
51:12
permanent okay look we get to the actual
51:15
setup I mentioned that there was a
51:19
little X for Prosperity before the we
51:21
enter the war from nineteen fourteen and
51:23
seventeen just give you a few figures on
51:25
that example through August 1914 when
51:30
the war started till March 17 on the end
51:33
of the war total war munitions export up
51:38
in the US for the Britain Britain and
51:40
France with 2.2 billion enormous and
51:43
that though they like called about 16
51:45
billion now 700 million dollars worth of
51:49
explosives for 220 million dollars worth
51:51
of iron and steel for and 85 million
51:54
dollars of copper manufacturing meaning
51:56
Guggenheim’s etc etc forty percent of
52:01
the ammunition DuPont and we’re here
52:02
DuPont cause for a war build-up for the
52:05
defense contract and all that and and
52:08
makes 40 percent of the ammunition
52:10
well in addition of that in nineteen
52:13
thirteen and fourteen of the rear and a
52:15
big recession through the previous bank
52:18
credit expansion unemployment with
52:21
fairly high as many factories and only a
52:23
sixty percent capacity and so the the
52:25
war orders that came in from 1914 was a
52:28
very welcome and they will leave people
52:29
a this is a great point against super
52:32
Andrew Carnegie write the letter the
52:34
Wolfson November 1914 saying this is
52:36
great stuff we have a very distressing
52:37
financial and economic conditions and
52:39
here these export orders are really
52:41
helping us out and of course
52:43
Benjamin strong the newly developed
52:45
Federal Reserve System begins to inflate
52:46
a lot nor the will permit all the things
52:49
that happen to commit the big foreign
52:50
loans loans to Britain and France
52:53
expansion of ammunition a war industries
52:57
and so forth so long all this is
52:59
rendered permissible by the big
53:01
expansion of inflationary
53:03
money
53:04
money in banking retort then double the
53:06
price level by nineteen by the end of
53:07
the World War one and a profits go up in
53:14
the war industry for example Ireland
53:16
steel exports for example us Ireland
53:22
steel exports were two hundred and fifty
53:25
million dollars in 1914 and by 1917 when
53:31
we enter the war was 1.1 billion of the
53:34
four five fold expansion in iron and
53:37
steel and export the urna steel profits
53:40
went way up as a result the average
53:43
profit rate in 1915 we have Ireland’s
53:46
deal was seven and a half percent by
53:50
1917 it was twenty nine percent a big
53:54
expansion of profits even more than
53:57
almost about the same of the exports so
54:02
we had on the worth enormous increase in
54:04
profit the result of the the war
54:07
production war exports additionally a
54:10
Morgan underwriting a monopoly
54:12
underlining of German British and French
54:13
bonds there were also morgan loaned
54:15
eight hundred twenty three million
54:17
dollars dependents figure knows they
54:19
have a single loan in late sixteen early
54:22
seventeen to Great Britain so when the
54:24
war was what when what working about it
54:26
was a massive collectivization of of the
54:28
administrators usually illegally most
54:30
cases Wilson’s gonna be appointed
54:32
somebody in the Czar of some ministry
54:34
and we’re illegal then they got the
54:35
Congress of being month later to ratify
54:37
it by passing a law things is okay
54:40
there’s certain jockeying for power and
54:43
eventually by March 1918 Bernard Baruch
54:45
as I mentioned became the sole head of a
54:48
warmth of industries board
54:50
collectivizing all of Industry and they
54:52
would set up commodity section where
54:54
each commodity has commodity sections or
54:56
about I think ninety of them say it were
55:02
over at sixty over sixty commodity
55:04
section of different commodities iron
55:05
steel copper or whatever had section
55:08
these are called commodity sections
55:11
which were headed by a certain number of
55:14
people to be a four or five whatever
55:15
government appointees
55:18
running each section say let’s say iron
55:20
steel on the iron steel people would
55:23
negotiate with trade associations if
55:26
they didn’t have a trade association
55:27
they encourage them it’s sort of forcing
55:29
the have one well you you guys got a
55:30
former representatives we can negotiate
55:32
so the young iron and steel industry of
55:34
encouraged them to have who were like
55:36
representative so to speak and they
55:39
would negotiate over prices in
55:40
production with the iron steel
55:41
committees I’m gonna government
55:43
committee section section Chiefs and
55:47
this would happen and copper and
55:49
everything all machine tools also the
55:51
oil industry they’re called much a
55:52
different industry each of which would
55:54
have government and pointy
55:55
section Chiefs and committees
55:57
negotiating prices and production of
55:59
these committees trade association a
56:02
question of who are these guys to cover
56:03
they were big shot on some big shots in
56:05
the same industry in other words they
56:07
appoint these guys let’s say the head of
56:09
US Steel would be appointed head of the
56:10
steel come next section he would then
56:12
negotiate with his cousin of USD or to
56:15
it the other types in other words the
56:17
very cozy car color arrangement and the
56:19
government officials are simply the same
56:21
you know heads of various firms of them
56:23
they get a dollar a year if that boy
56:25
were really sacrificing the war after
56:26
only getting a dollar a year from the
56:27
government but they have a power also
56:29
they keep getting salary something from
56:31
an escrow whatever from they from the
56:34
industry from the firm anyway so they
56:37
and the negotiating apart whether were
56:39
the people from their own their own
56:41
buddy from they from the big shots and
56:42
steel and construction copper and lumber
56:45
or whatever now this way the whole guy
56:48
in the whole government the whole
56:49
industry they planned my by these
56:51
government association collaboration
56:53
government in this peak design toast the
56:55
restrict production keep prices up and
56:57
you can expand more production to be
56:58
restricted in a sense of keeping making
57:00
sure that prices go way up a profits are
57:03
guaranteed of once don’t want so they
57:06
all love that except for individual
57:07
firms that kind of break the cartel an
57:10
individual firm kind of bust the
57:12
agreement and lower prices or expand
57:14
production there was they have minimum
57:17
quotas and a maximum problem maximum
57:22
minimum prices and maximum production
57:24
most case if some permit right now
57:28
compete immediately smashed and they be
57:31
crackdown by the government there
57:34
maverick Sioux who refuse to one little
57:36
hurdle they call it the these work or by
57:38
the way these representatives of poor
57:40
war service committees the industry
57:43
groups the cold war service commits
57:45
evenly the governmental quote commodity
57:47
sections they’re about 300 for service
57:51
committee oshi everyone by about 60 or
57:53
so commodity sections and the Chamber of
57:55
Commerce which is set up by the
57:56
government and assets remember half of
57:59
the idea Torrey enemas Regina set up an
58:02
industrial group which we then sort of
58:04
negotiate with government and Wilson
58:06
they were just about they just about
58:07
came into being out of time Wilson came
58:09
in so the Chamber of Commerce sort of
58:12
oversee this whole thing in other words
58:13
sort of a point of the war service
58:15
committee of God Oh got the got the
58:17
copper industry you get together and I
58:19
like this war service committee people
58:20
or appoint them the same recover sort of
58:22
acting as a government business liaison
58:24
through this whole situation US Chamber
58:27
of Commerce a very cozy situation R
58:31
example Robin our Clarkson who was I
58:33
think the Secretary of War industry
58:34
board wrote a book about the experience
58:37
after the war was over they all loved
58:38
this experience it was just great and
58:40
Clarkson will participate in it it’s
58:43
very interesting but I mean of course
58:44
love the whole Sicily he’s nothing wrong
58:46
lording the whole thing it’s cool I
58:48
think you’re on industrial production in
58:50
America of the AIA and the war it’s a
58:53
great quote from Clarkson maker could
58:54
reveal inquiry he’s talking about the
58:57
war collectivism businessman holy
58:59
consecrated the government service
59:01
there’s a lot of baloney to raise their
59:03
own profits this in the government this
59:06
is my holy country to consecrated the
59:07
government service but full of
59:09
industrial of understanding of the
59:11
problems of industry now faith that
59:14
that’s the guys on the commodity section
59:15
he’s a businessman consecrated the
59:17
government service holy constant
59:19
consecrated a government server but full
59:21
of understanding of the problems of
59:23
industry now faced businessman wholly
59:25
representative industry that’s these
59:26
guys in war service committees they’re
59:29
buddies but sympathetic with a purpose
59:31
of government was it suppose like all
59:33
them raise a very cozy partnership here
59:35
cartel rising partnership and he goes on
59:38
the commodity sections were businessmen
59:39
operating government operating
59:41
government business
59:41
come on good scratch the common good get
59:45
the much better view of it
59:47
the War Committees of Industry knew
59:49
understood and believed in the commodity
59:52
Chiefs they were of the same piece was
59:55
it the same people they were buddy there
59:56
are close friends and whatever coming
60:00
from the same firms and then cozily
60:01
getting together with a power of
60:03
government to run the system again he
60:06
says the commodity sections were
60:07
industry mobilized and drill and Mumbai
60:11
and drill responsive keen and fully
60:13
staffed
60:14
they were militant they were militant
60:15
and answer 8 lakhs post be military
60:19
analogy here lot that they were they’re
60:21
all organized he says it one other point
60:24
of that if any maverick try to undercut
60:27
the system trying to compete in other
60:28
words he was roped and branded and for
60:30
someone with a hurt and was repeated is
60:32
that they were cattle the Maverick
60:35
leaves the hurdies for fighting another
60:37
one Shepherd whoever at the you know the
60:40
cattle would cowboy way to come in and
60:41
fortunately to join with the rest of his
60:44
group the commodity section he says were
60:47
industry yah as they were system of
60:49
concentration of commerce industry and
60:50
all the powers of government was without
60:52
compare among all the other nations well
60:54
the other nations were pretty or pretty
60:56
well active that way shows its anywre
60:59
who was in the war industries board
61:02
well peruca that savers with chairman
61:04
alright Guggenheim to love we now know
61:07
it but many years of mystery the vice
61:11
chairman Alexander leggy another very
61:13
interesting person pops up later very
61:15
important figure Abreu
61:17
all these guys by the way who have had a
61:19
lot of solidarity coming out of the war
61:21
they all loved it you know like each
61:22
other they were got along very well and
61:23
after the war the next 20 years they’re
61:25
trying to recapture we established these
61:27
institutions of peace time Alexander
61:29
legi vice channel that war on this reef
61:31
board had been chairman of water
61:34
president whatever about International
61:36
Harvester
61:37
but one of the pop Morgan trust in other
61:42
words our emphasis Morgan he was vice
61:47
chairman the war industry board
61:48
Robert bookings with a charge of price
61:50
fixing the wealthy st. Louis lumber
61:53
magnate and found
61:55
fucking institution around that time
61:57
another guy who’s another team of brute
61:59
tool from next 20 years and also founder
62:02
of a farm block George peak the vice
62:06
president of beer and company later the
62:11
Moline cloud company a Moline with the
62:13
second largest at form Equipment
62:16
Manufacturer International Harvester of
62:18
the leading former prison manufacturer
62:24
so peak and general Johnson was a the
62:27
Olson fearing company and will leave our
62:29
company later became the founders of a
62:31
farm block after the war was over by
62:33
1920 1919 peak and leggy and Pekin
62:37
Johnson came out with a book called
62:39
equality for agriculture which a call
62:42
for the use of government to raise
62:43
especially their farm price support for
62:45
buy crops cotton wheat etcetera the
62:48
raise of farm prices now these are not
62:51
dirt former their worm farm equipment
62:53
manufacturers and then realized of
62:54
course we want to subsidize farm
62:56
equipment manufacturing the best thing
62:57
to do for the government of supply the
62:58
farmers internal meant by farm equipment
63:01
so and booth by the way is also the
63:05
brand old man service to give the farm
63:08
coffee on fight support program was a
63:11
big land speculator he bought a lot of
63:12
rural farmland of course if you have
63:15
farm price support for the government
63:16
tremendously raising the price of farm
63:19
farmland so there’s a personally
63:23
economic interest involved here as well
63:24
as an ideological
63:26
drive towards statism there’s a railroad
63:30
administration in charge of the
63:31
railroads and we’ll see you next time
63:33
there where are the national eyes on the
63:34
government federal government at the
63:37
behest of the railroad they love
63:38
nationalization you think the government
63:40
the railroads wouldn’t like to be
63:41
nationalized they loved it because what
63:42
happened in World War one I think I
63:45
mentioned the last time we were talking
63:47
before that the railroad the wolf
63:48
control the ICC it set up the ICC they
63:50
were running it for many years by 1900
63:53
1905 or so these shippers began a
63:55
control of the organized shippers of
63:57
course wanted to keep railroad rates low
63:59
all of a sudden right the railroad final
64:01
revelation alone didn’t like the ICC
64:02
anymore
64:03
and so they in order to get out from
64:05
under the ICC the railroad promoting the
64:07
idea that government should national
64:08
the government nationalised the railroad
64:10
took them over I think was head up on
64:13
the railroad administration
64:14
LAN LAN the trains and all that and hurt
64:19
all the operating in court and the rail
64:20
was about guaranteed profit otherwise
64:22
railroad got there whatever that’s six
64:24
percent percent profit something but
64:25
doing nothing well of course were incur
64:27
by the government deficits to them the
64:29
taxpayer picked up with the Friends of
64:30
paid off the railroad they loved it
64:32
great way to be nationalized guaranteed
64:34
profits and of course and also Herbert
64:37
Hoover is in charge of the food
64:38
administration is dissolving food
64:41
industry Hoover has been a British
64:44
connected miner geologist and copper and
64:50
oil miner and other mines and was an
65:01
England then they took charge of Belgian
65:04
war relief for what you became a none of
65:07
the food food maven he’s appointed by
65:09
Wilson is big bloke Sounion became the
65:11
foods are the man he has a little power
65:14
of all who didn’t even have a commission
65:15
over just ran the whole of food farms
65:19
wholesale retail anything else and what
65:22
he did is he impose a whole licensing
65:23
requirement you have a in order this in
65:25
the food as we had to have a license
65:27
federal license which was issued by the
65:29
food administration if they didn’t like
65:30
what you were doing he didn’t abide by
65:31
the the pricing and production
65:33
agreements your private license you you
65:35
put on a business every powerful weapon
65:38
by Hoover Hoover has much more of a
65:40
dictator over who than the other guys
65:42
were all over industry it has a huge
65:43
federal licensing network well so Hoover
65:46
I think invented the the system of being
65:50
called fake volunteerism we would he
65:52
didn’t was he had all these price and
65:55
production they price restriction price
65:57
control put on by Hoover food price got
66:01
to be certain amount of weren’t so on
66:02
had certain minimum then he got the
66:05
public too volatile food with the beanie
66:07
enforce unpaid and forces nobody
66:09
mobilize the public would be like
66:10
Friends of the Friends of the Food
66:14
Administration I think he had some come
66:16
Sam kind of logo of a who’s of a by by
66:20
each restaurant each food
66:21
grocery store houses logo a Food
66:23
Administration you mobilize everybody
66:25
the report the spy on their neighbors
66:27
finally every restaurant every grocery
66:28
store make sure they didn’t cut prices
66:30
or whatever if they did cut price and
66:31
report them the Food Administration does
66:34
that called mass espionage Network one
66:35
paid Patriots were spying on there are
66:39
food administration regulation that’s
66:42
what that’s what Hoover called
66:42
voluntarism cue your kind of laws was
66:45
like having voluntary very good stop
66:49
spying in a neighbor and the regulations
66:52
that he put in with caramelizing
66:53
regulation of the word example you had a
66:56
big bread campaign of course before that
66:58
if your wholesaler is our baker sold
67:01
bread to the retailers in there because
67:02
doesn’t solo libretti but turn them for
67:05
the free of charge like newspapers
67:07
newsstands now return on the unsold
67:09
paper for the newspaper use the orders
67:13
in paper people so they could return the
67:15
breading a pay for it so Hoover insisted
67:18
put the government regulation no no from
67:19
now on they the retailers spot for
67:21
unsold Brenda what’s trying to get them
67:23
to sell its stale bread to the public
67:25
the name of the war effort but what it
67:27
does is it means restricting the supply
67:29
decreasing the quality are typical
67:32
Carter lives I think cut the quality and
67:33
raise the price so these were some of
67:37
the measures again Clarkson talking
67:42
about this whole system says another
67:44
quote from Carson business will the
67:46
throne domination Fortis bonds and
67:49
police atone subjects that was there was
67:52
bitter and school there were bitter and
67:53
stormy protests here and there the
67:55
occasional obstruct ur fled from the
67:58
mandate of the board only to find
68:00
himself ostracized by his fellows in
68:02
history in other words anybody broke the
68:04
side of the solid Wheaton young so fresh
68:07
bread instead of feel better cut the
68:08
price of what ever was then ostracized
68:09
and the other people in the industry is
68:12
violating the cartel agreement and also
68:14
of course he could Hoover mobilizing the
68:16
public miss the the looted public to spy
68:20
on and try to put out for these guys out
68:22
of business
68:23
another thing that food administration
68:25
did and also not an industry in the name
68:28
of the war effort the lemonade varieties
68:30
of products without also industry by the
68:32
way
68:33
compulsory core elimination of waste and
68:37
for you against waste waste and that for
68:38
the war effort
68:39
so they in the name of women aiding
68:41
waste they had compulsory sanitization
68:43
of all sorts of stuff gearshifts bread I
68:45
mean whatever why did we think of in
68:47
other words there were 50 different 50
68:49
different varieties a certain prog I’m a
68:50
big fortune I have only 10 things like
68:52
that by doing that major eliminating
68:55
small businesses you’re hurting changing
68:58
the shape of in the streets and I have
68:59
to reduce the number of opportunities
69:02
available to the consumer you have your
69:05
you’re having a smaller number of
69:07
products and then a larger size for each
69:10
product know if you’re benefiting large
69:11
businesses expensive smaller businesses
69:13
which meet different parts of the market
69:16
and this was Cariocas was continued
69:18
during the 1920s by who ruining
69:20
Secretary of Commerce continuing this
69:21
compulsory standardization of industry
69:23
as the reduce the number of styles a
69:25
number of fashions a number of different
69:27
grades of things and then and thereby
69:29
cut competition cut the supply curves to
69:32
the left pushing to final laugh and help
69:34
push out a business a whole bunch of
69:36
competing firms especially especially
69:38
small business this was done mostly
69:41
about a conservation division war
69:43
industries board all the country the
69:45
name of conservation at Carson says
69:47
about the conservation of vision he says
69:49
he says advaithic reduction of number of
69:52
styles and sizes of product can only
69:53
have that eight kinds of gear shift of
69:56
years instead of 20 or whatever he said
69:59
quote the world war was a wonderful
70:01
school the conservation division alone
70:04
show the me lead a stripped from trade
70:05
and industry the lumber a futile
70:07
customer me conscious and the
70:09
incrustation of useless variety to then
70:11
bring about us as a great thing in other
70:12
words the eliminate of a consumers
70:14
warner which is a lot of variety for
70:18
example there were
70:19
conservation division outlawed 250 kinds
70:22
of plows and 750 kinds of grills well a
70:25
lots of different drills are there for
70:27
meeting different pace no no i can only
70:28
have a few kind of five a few kinds of
70:30
drills and then a and the carson goes on
70:34
this would be this then would be the
70:36
goal of the next quarter of the 20th
70:38
century to standardize american industry
70:39
to make a wartime necessity a matter of
70:42
peacetime advantage with the perpetuated
70:46
stuff
70:47
during peace and then he then Clarkson
70:51
talked about how they people the warning
70:52
board wanted to perpetuate this whole
70:53
thing forever he said and says from
70:57
their meditations arose dreams of an
71:00
order economic world they conceived of
71:02
America’s commodity section permanently
71:05
commodities section for the control of
71:08
world trade if he hella okay to the
71:10
world
71:10
carefully computed and registered in
71:12
Washington and a word a national mind
71:15
and will confronting international trade
71:18
and keeping its own house in business or
71:19
business like order if Harry wheeler who
71:24
is head of a Chamber of Commerce talked
71:27
about the future based on this Warren
71:29
Street war thing he said the war
71:31
Services Committee system quote promises
71:34
to form the basis for a truly national
71:36
organization industry the integration of
71:38
business the expressed aim of the
71:40
National Chamber is in sight war the
71:43
stirring teacher war the third feature
71:45
that is driving home the lesson of
71:48
cooperative effort what breaks out is
71:52
tremendous the European countries are
71:55
blockading each other and so that by
71:57
each other as food as they used to and
71:58
so they’re buying the Americans from the
72:00
marklar neutral war until 1918 1917 so
72:03
you have a tremendous increase in price
72:05
the quantity I’m commendeth increase the
72:08
demand for American agricultural
72:09
products and so there’s note you have a
72:14
huge increasing could fly big increase
72:17
in price so the price goes up and I mean
72:19
the war starts there’s a big American
72:21
demand for food etc etc and foreign aid
72:24
and all the rest of it you have a
72:25
tremendous increase in agriculture both
72:27
in production and in price though they
72:30
have a huge increase in the man huge
72:31
increase in price and it stimulates the
72:33
big increasing American cotton and wheat
72:35
and all that well the war is over now
72:37
the blockade is gone finally and
72:39
Europeans are growing their own food and
72:41
trading here they own the American
72:42
agriculture that much demands her for
72:45
agriculture but was backing in and
72:47
prices fall and after every big war ii
72:50
i’ve always have a fall and farm prices
72:52
first the prices go up during the war
72:53
safety have an effort of poliana quarrel
72:56
1815 big drop in demand for agriculture
72:59
a big
73:00
prices well of fly or cultural prices
73:02
the former star griping of course
73:05
farmers want to be kept in established
73:08
become accustomed during wartime and the
73:11
farmers are sellable not that organized
73:13
yet the farmers are not had not didn’t
73:15
have a powerful farm block that they
73:16
have today the first guy is calling for
73:18
government subsidies agriculture farm
73:21
price of fourth in other words a
73:22
government taxpayer mind farm product at
73:24
him thrive in price but Johnson and peak
73:27
in Muruga is their Godfather so to speak
73:30
we’re good I guess was the the Jewish
73:32
Godfather was home woman speak so
73:36
Johnson and peak right this thing okay
73:39
neither works farm equipment
73:40
manufacturers soil from the rate
73:41
beginning the advantage of the farm
73:43
price support another worth event in
73:44
other words if you give the farmers more
73:46
money they will buy more farm equipment
73:48
and so there’s a farm equipment
73:50
manufacturing the first one to both for
73:52
farm price supports
73:53
but Ruth himself was a farm speculator
73:55
wanting them engaging mining of course
73:57
which also farm land or theme or a lot
74:00
of real estate speculation and then the
74:02
farm prices were support of his land
74:04
went way up so we have a combination
74:06
here farm speculators and farm equipment
74:09
manufacturers being the first one to
74:12
engage in this form block process so the
74:18
they started that says agitation from
74:21
farm price supports no one doing all the
74:23
way in 1920 this picks up support among
74:25
formally organized farmers making into
74:27
it and Herbert Hoover was also a Baruch
74:30
I me also problem Wilsonian more ever
74:32
other words these are nominally a
74:35
Republican but nobody even know if he
74:36
was he was the foods are we won’t wonder
74:39
than when he mentioned and I’m also a
74:42
big pro farmer person he told her yet
74:44
farmer that he ever got to be President
74:46
even immediately instituted this farmers
74:47
new system of farm price supports which
74:49
he did the first thing you get as
74:51
president he gets in in March 1929
74:53
immediately pushes through this farm
74:55
price program which of course is still
74:58
with us is still a big disaster we’ve
75:00
gotten worse but I mean basically he
75:01
started it
75:02
Hoover basically was major person
75:05
responsible
75:05
so again bipartisan Hoover when Hoover
75:10
entered politics Hoover had been in Bell
75:13
he would
75:13
big jielong big mining geologist is what
75:16
he was basically an enterpreneur and
75:19
promoter of copper mines and other mines
75:21
throughout the world he lived in London
75:23
for many years and during World War one
75:28
who’s had a boat immorally which was
75:30
using food in the political weapon the
75:33
feet only builders and not German that
75:35
sort of stuff I’m the pretense of me a
75:36
Christian pro food person doesn’t care
75:39
what who’s being relieved at any rate
75:42
when America entered the war Hoover was
75:45
made foods are theirs both by five votes
75:48
the most unloved Hoover Hoover loved
75:49
Wilson and over the bull Sonia for the
75:52
for the hilt and in his career his
75:55
political career begins you’ve already a
75:57
multi-millionaire he wants to devote
75:58
himself to politics only about 40 I mean
76:01
like that and he becomes a head of food
76:04
though he insisted by the way but Rukh
76:05
at least have a as head of the war
76:07
industries board Hoover its dissident I
76:10
want no I know boards I’ve got to be the
76:12
sole power and Wilson court gave it to
76:14
him I go to make Colonel house as
76:16
foreign policies are for the speak I
76:19
don’t have them Morgan associate but
76:24
worse I have to be the food garden
76:26
Hoover heads up the food administrator
76:27
in the food administrator and use that
76:30
say I mentioned this the licensing power
76:32
to license everything connected with
76:33
food no the federal government license
76:36
every restaurant every food
76:38
wholesaler manufacturer everything
76:40
farmers everything was well any
76:42
processor with license then of the the
76:45
restaurant or the public read
76:48
manufacturer whatever didn’t obey the
76:49
food administration regulation the
76:51
cartel regulations that you have to
76:52
place has to be certain in that
76:54
production sweet serve residents a
76:55
license was taken away that couldn’t
76:57
they were put out of business they’re
76:58
very powerful licensing is a very
77:00
powerful weapon it’s like the FCC can is
77:03
decides a radio station or TV stations
77:05
unbias or something and they can remove
77:07
the license so Hoover also pioneered in
77:13
the use of crony voluntarism
77:16
in other words to use the massive used
77:19
the public unpaid supporters of the
77:20
unpaid enforces of government
77:22
regulations so he’d say well
77:25
every restaurant had to have a certain
77:27
price regulations maximum prices minimum
77:30
prices whatever and if the and they had
77:34
to put up a sign saying we have made the
77:36
regulation some kind of symbol which
77:38
Franklin Roosevelt later used for the
77:41
you know Newton National Recovery
77:42
administration coldly and blue eagle the
77:44
NRA of illegal sign put the blue eagle
77:47
up on the window show you actual America
77:49
so anyway then they use a master that
77:52
will enforce it nobody Hoover encouraged
77:55
volunteer organizations of citizen to go
77:57
out there and police the food stores and
77:59
ran a restaurant to make sure that
78:00
prices were no higher we’re no lower
78:03
then the regulation okay so this is a
78:06
and then to report back to the local
78:08
government food administrators and there
78:09
was the using public as a group of
78:11
unpaid spies so to speak this was not
78:14
also and civil liberties front the
78:16
public is encouraged to turn in and
78:18
quote German agents are German spies I
78:19
call this the beginning of the whole spy
78:21
of stereo a key part is still with us
78:22
World War one I mean thought everything
78:24
world one begins the whole the whole FBI
78:26
just staring at dogs been and everybody
78:32
not only or a lot of them not only is
78:33
this the beginning of the FBI and
78:34
immoral it really starts slightly after
78:37
the war but basically begins then but
78:39
the whole idea that we’re talking
78:41
minutes from foreign agents begins in
78:43
this period and people are encouraged to
78:45
turn everybody in everybody anybody was
78:48
speaking German with this was of those
78:49
days are fair game matter of fact the
78:52
use of the German language with you
78:53
through the German language the teaching
78:55
of German was outlawed in Seattle five
78:58
points low points
79:00
World War one the German was considered
79:02
an enemy language therefore nobody will
79:03
have a teach it the great big step
79:05
forward human not much in it such a
79:08
monsters any right this is the and so
79:10
you’re Maga be taught in the public
79:11
school system because so-called enemy
79:14
language and sauerkraut was neat was
79:19
renamed Liberty Liberty cabbage victory
79:22
campus which was south I had read German
79:24
name Beethoven was barred from being on
79:26
the radio because German composer
79:29
and I thought just a unbelievably
79:32
monster home the whole set the whole
79:34
world wanted begins all the evil go 20th
79:37
century economically foreign policy and
79:42
civil liberties all the rest of it and
79:44
those those historians that also begins
79:46
the idea of intellectuals working for
79:49
the war out there working for the
79:49
government to to to runlets when these
79:53
that the run the system economists the
79:55
run the economy
79:56
historians are propping in eyes why the
79:58
Germans have an evil in the sixteenth
80:00
century or whatever and and and and
80:05
social workers no all erected of the
80:08
whole the whole group clerk will
80:10
scientist Oliver become part of the of
80:12
the government machine let’s take the
80:15
war machine particularly those
80:17
intellectuals have gotten phd’s in
80:19
Germany historian the economist clerk
80:21
will sign it leading the parade and
80:23
saying old German culture has medieval
80:24
since several hundreds of years writing
80:28
craze pamphlets they’re little start of
80:31
Luther and everybody’s been evil ever
80:33
sent old you’re moving walking from
80:34
what’s on but they said sang a very
80:36
different tune you know five years
80:37
before that but this is the each one was
80:40
trying to prove they’re a hundred
80:41
percent Americanism a two hundred
80:42
percent American whatever any professors
80:45
who didn’t belong with us were driven
80:47
out of the university system and Richard
80:49
Keeley one of my least favorite people
80:51
in American history is like me
80:52
symbolizes much of this is a pop
80:57
progressive economist founder of the
81:00
major family the American Economic
81:01
Association to lead the economic
81:04
profession away from lays a fair and
81:05
toward the statism
81:07
head of the founder of the Wisconsin
81:09
idea and this is tution list and
81:13
whatever got a PhD in German and Berlin
81:17
was one of the leading war propaganda
81:19
some cracking down the idea of any
81:21
anybody any I’m gonna make freedoms and
81:23
professors more excellent he also
81:26
considered me any pro-peace agitator any
81:29
anti-war imitation is a German espionage
81:31
agents of the Kaiser
81:34
by the way when Lenin popped up when I
81:36
first met a fight they’re still nutty
81:40
historians right now I think that Lenin
81:42
was essentially a German agent other
81:44
words the old Bolshevism wasn’t with a
81:46
kite caught by the Kaiser this is the
81:48
birth of the Russian war effort the
81:52
[Music]
81:53
stole it stole it was an entirety of one
81:56
and a few years ago that’s how the same
81:57
thing essentially a plot hyzer plot so
82:06
so all these knives were I would say
82:08
they all started with Sony and Wilson
82:10
provided Lee that’s sort of the
82:11
intellectual looks like himself as it
82:14
the only PhD has ever been president
82:16
that hope it will may not be any other
82:18
one piece is representative of what
82:21
happened a PhD becomes president you
82:23
only as a professor PhD distinguished
82:26
historian and political scientists and
82:30
and he sets of course the idea that
82:32
that’s America’s role in the world has
82:35
remake the entire world and then
82:36
American image every Oh everybody
82:38
democratic and everybody was found the
82:40
other thing centrist
82:41
not to this not to left way not to a
82:43
right-wing everything’s got to be fixed
82:44
and redrawing a map of Europe and in
82:48
that in that image so who were nobody
82:54
knew which which party who were belong
82:57
toes matter of fact one in 1920 when
82:58
Hoover when Wilson’s family second term
83:01
was up it was already pretty ill a lot
83:05
of people are a lot of Democrats when
83:06
booming Hoover’s prefer Democrat for the
83:08
Democratic nomination for president
83:09
didn’t know what according was they
83:10
assumed Murphy to break I’m a few
83:12
Democrat he later studies Republican the
83:15
point of it would have surprised nobody
83:18
which party he belonged to the same
83:19
thing have an Eisenhower at the World
83:21
War two know he’s being boomed from both
83:23
party nominations and so really didn’t
83:27
make that much difference
83:28
this is a 20th century by part of the
83:30
man sort of speak we could swing either
83:32
way they’re really technic rats
83:34
since both parties were progressive on
83:36
quote both parties committed the same
83:37
kind of a little Sony and foreign policy
83:39
and progressive and domestic policy
83:40
doesn’t really make much difference what
83:42
party you’re dealing with
83:44
Oh another person another politician
83:46
gets his start
83:47
Wilson assistant secretary of the Navy
83:50
remember since the second of those days
83:52
was pretty powerful poses like number
83:54
two man Franklin D Roosevelt courts
83:57
later becomes then run for Vice
84:01
President I think in 1920 and defeated
84:04
and then president he also broke Sony’s
84:08
not a fact that was on Hoover even
84:09
though most of storing their consider
84:10
them a mortal enemy they really they
84:13
were pretty friendly or a close friend
84:14
of Merkel’s Sony and they won’t knew
84:15
each other and after the war was over
84:18
Wilson and a little-known event Hoover
84:21
and willfully didn’t Hoover in Franklin
84:22
was about collaborated in the group
84:23
formed a group called the American
84:25
construction council in the object of
84:29
which was the court allies a
84:29
construction industry in other words
84:31
construction history always been highly
84:33
competitive there’s always been a lot of
84:35
real contractors involved work the idea
84:37
was to bring them all together in one
84:38
council so they can restrict production
84:41
raise prices and the rest of them
84:43
usual cartel of science didn’t work on
84:45
the construction it was not since is not
84:47
did not have government backing it
84:49
didn’t work I mean voluntary cartels
84:51
never working for she didn’t work in
84:52
this okay so it died out after about two
84:54
or three years but these two guys they
84:56
were the president one less president
84:57
along with Vice partner yeah which is
84:58
which so wrote on Hoover revocable Sony
85:02
ins both progresses book well way to be
85:05
known as new dealers as a matter fact
85:07
the entire New Deal policy start up a
85:09
Hoover will be partly the old program of
85:12
keeping out wage rates by government
85:16
coercion
85:17
expanding cheapening credit expanding
85:19
the money supply using expanding public
85:22
works the product Canada over the
85:23
recession as well begins with a Hoover
85:25
just as Roosevelt inform price support
85:27
program begins with Hoover Roosevelt
85:29
Roosevelt just did more of it
85:30
quantitatively did more of them
85:33
qualitatively in other words looking at
85:35
each program who were really start on
85:36
the whole thing there’s no there’s no
85:37
program there was of us thought of
85:38
Hoover didn’t stop before that deficit
85:41
spending overly begins with Hoover
85:44
the another thing which I must have
85:47
almost forgotten to mention here another
85:48
key thing which happened Mikey 13 in
85:51
addition the Federal Reserve Act which
85:53
paved the way for financing the war
85:54
report the income pack of all of that
85:56
income tax she begins with leave begins
85:59
the 1913 with the Wilson administration
86:01
but it was made constitutional under the
86:04
past administration 1908 to the
86:06
basically both party began are
86:08
responsible for this income tax before
86:12
that but there was no income tax we
86:14
didn’t have to fill out any 1040 forms
86:16
and April 15 here like that there were
86:18
tariffs when the Democrats came in the
86:21
pants are pretty low and that was about
86:23
it
86:25
in other words government was very small
86:27
didn’t have income tax with cycling
86:29
things or when the income tax first came
86:32
in the critics of the income tax claim
86:36
that the you if you start with a income
86:38
tax you might eventually get a tax rate
86:40
as high as 10% that’s crazy of course
86:42
another group episode one percent two
86:44
percent maximum five highest minyan air
86:48
level okay the rest of course is history
86:51
so again with any as with any government
86:54
power especially revenues sorts so thank
86:56
you revenue gathering sort it starts
86:58
small you keep expanding it we’re always
87:00
having the government start smaller get
87:01
your foot on the door and you get people
87:04
desensitized or than your wide nuttin
87:07
grab more loop yoke started I’m I need
87:10
the Sun income tax right away obviously
87:11
be a revolution you start with 5 and
87:13
wind your way up so anyway and of course
87:16
now it’s part of the American Heritage
87:18
the actually income tax wasn’t used that
87:23
much until World War two what happened
87:25
at World War two was the finance world
87:27
war to see the old days you have to you
87:29
have to Corp up your entire lump sum
87:31
arch the 15th if the saver up you have
87:35
to pay five thousand dollars in income
87:36
tax a let’s say the whole thing haven’t
87:37
pay a month up and obviously nobody
87:39
could you know very few people that do
87:41
that x-rays had to be kept fairly low
87:51
you

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