American Economy and the End of Laissez-Faire – 8 of 13 – Regulation and Public Utilities

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

8. Regulation and Public Utilities
Lecture by Murray N. Rothbard

State dominated cartels used intellectuals as apologists for the government. Big unionism was to transmit orders to the working class. Public utilities were government monopolies for fifty-year terms, run without any checks by the public. It is the function of government to run everything. Regulation was rampant, e.g. prohibition. Social workers wanted to abolish the saloons. German brewers were suspect of weakening soldiers. Constitutional amendment outlawed liquor.

Lecture 8 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 – 8 of 13 – Regulation and Public Utilities – YouTube

http://www.readrothbard.com/american-economy-and-the-end-of-laissez-faire-8-of-13-regulation-and-public-utilities

TRANSCRIPT

00:00
so or rye whiskey so then in 1880s when
00:03
when blended whiskey becomes as first
00:06
discovered so to speak they started
00:07
thinking wiki’s and blending he thought
00:09
it was evil adulteration sin vision what
00:12
he means pure whiskey or pure and any
00:15
any blending man becomes evil and sinful
00:17
and alteration should be outlawed they
00:19
were out when blended whiskey Spock
00:20
really from our point of view but Chris
00:23
Nilan definition somehow the definition
00:25
has to be fixed forever
00:27
maybe you can’t innervate you can’t
00:29
innovate in business the kind of
00:30
technological innovation as this tumor
00:32
brands running a BFA if you take the
00:34
average if you every change that you
00:36
ever change the names and they always
00:38
have to be what you need pure Ryan I
00:40
can’t mean a blend
00:41
so this freezes the the status quo means
00:45
you can’t compete you can’t innovate
00:46
very well the course of the purpose of
00:48
old thing I mean Iran sugar he says that
00:53
United States should be self-sufficient
00:54
in tradition outlaw sugar imports no he
00:57
calls a very high tariff on sugar
00:59
imports and though this is the real
01:00
world Sharia United States sure is not
01:04
economic the gross sugar on states
01:06
especially these much more economical
01:07
import economic in portrait over the
01:09
military Republic and Cuba Hawaii which
01:11
is then up u.s. property accepted
01:13
separate he says no no he actually had
01:15
to color heaven so sufficiency and sugar
01:17
so he he
01:23
of course joins the Republican Party was
01:25
a Republican Party was the party applied
01:27
to them and high tariffs in Middle East
01:30
fits in beautifully beautifully with the
01:31
Republican ideology he becomes a state
01:34
chemist save Indiana and he calls for
01:38
passing a law regulating and manufacture
01:40
and sales chemical fertilizers please
01:42
try to restrict that and then he starts
01:45
only another sugar of manufacturing
01:46
business himself he buys as a function
01:49
Sugar plant beet sugar plant and tries
01:51
to organize a glucose plant Indiana is
01:53
always flops as a total flop arou
01:56
terrible entrepreneur and try to make
01:58
sugar from sorghum cane doesn’t work
02:00
either genu 1883 by this time he’s one
02:06
of America’s leading sugar chemist and
02:08
he gives a speech before Indiana State
02:10
Board of Agriculture
02:12
he says quote consumption of sugar the
02:14
measure of progress in civilization he
02:19
thundered quote childhood without candy
02:21
would be heaven without heart unquote
02:23
and then these days enforcement
02:25
everybody ante sugar it brings a
02:26
beautiful note childhood without candy
02:28
will be heaven without hearts he then
02:31
added without any trace of irony and
02:32
nothing has ever gained for a cause I
02:34
overstatement of his claims he was
02:37
pushing the idea of manufacturing sugar
02:39
from sorghum
02:40
to one of those big sticks a he flopped
02:42
as ahead of burner but he kept pushing
02:44
that many years when finally became a
02:46
total flop Arun he try to get government
02:49
aid and you know government subsidies
02:51
for the support so on at this point the
02:55
federal Commissioner of Agriculture had
02:57
one department one agricultural chemist
02:58
they fired I mean the obstreperous
03:00
notorious kerrigan and dr. Peter Collier
03:02
a big post sorghum man one of the
03:04
specialized subsidized sorghum so the
03:07
sorghum grow was apparently politically
03:09
powerful so when they kicked him out
03:10
they they want to be placing some guys
03:12
also pro sorghum they got Wiley Ana’s II
03:14
as the Agriculture Department housed our
03:16
chemists the chief chemist 1883 and
03:19
takes over and comes up cattle
03:22
government official from thereon
03:24
so immediately of course agitate for
03:26
protective tariffs refresh foreign sugar
03:28
subsidy for the mystic sugar and all
03:30
that he was asked by the way this
03:36
question interesting it’s the horrible
03:37
racist Republican economy he’s asked
03:39
what would happen to foreign sugar
03:41
growers they were put out of work by
03:43
high American protective tariffs
03:45
he said the native he said quote
03:48
sullenly lolling on the Sun can look up
03:51
and see coconuts and bananas
03:52
he will not starve or freeze let us eat
03:55
let me coconut the latitude of the
03:58
Republican Party till the third world
04:01
period and the scientific works for the
04:03
part of Agriculture said most of the
04:04
time and energy trying to subsidize the
04:06
trigger on a straight
04:07
searching for methods to produce sugar
04:09
from sorghum wasting a lot of research
04:11
funds in this effort etc etc by the way
04:15
its sorghum experiments and we’re
04:16
cutting flops
04:17
even though he’s a big shots a more more
04:19
of a big shot during the 1880s
04:21
experiments like trying to get sugar out
04:23
of sorghum as custom peruse this is my
04:25
way often happens in
04:26
roll you find out people swap all the
04:28
time you have to keep rising an eminence
04:30
as they flop some bigger shots at each
04:32
wheel each failure the you got
04:39
congressional appropriations over time
04:40
instead of the plum of Kansas Kansas a
04:42
lot of sorghum growers and so of course
04:44
he kept he kept feeding Wiley funds to
04:48
try to try to you know help out with
04:49
sorghum people and Kansas sort of
04:51
performers anyway but he can’t let us
04:57
say kept growing in M&S; and the
05:00
Cleveland came in 1884 he wasn’t kicked
05:02
out for somewhere you think anything he
05:04
who’s would cleave on the point of
05:06
wildly gold front of the Commissioner of
05:07
Agriculture he and they got something on
05:09
to keep him in office even though he’s a
05:10
Republican
05:11
and anyway by the mid 1890s was clear
05:16
everybody even Wiley the sorghum was on
05:18
the way out couldn’t produce sugar from
05:20
Sauron with any kind of economic
05:22
economically he blamed the misfires not
05:27
on his own crazy schemes or on his own
05:29
consistent string of research phases he
05:32
had been blaming long seems a subsidy or
05:33
the whole idea he blamed on the fact
05:34
that sugar parent wasn’t high enough yet
05:36
to keep increasing his prohibits foreign
05:38
sugar so his other big stick was one
05:43
that says big thing was the subsidized
05:45
American sugar owners can keep out
05:46
furniture another big thing was the
05:48
outlaw impure products what he call
05:50
impure and he meant things like by
05:52
changing definitions like one of the
05:54
whiskey was impure he also was the main
05:58
guy behind the outline of oleo margarine
05:59
he only knows our larger is a big new
06:02
thing in 1890 right looks like butter
06:05
tastes like butter is much cheaper
06:06
therefore course of butter interest will
06:08
headed by the Wisconsin dairy people one
06:10
of our Lord
06:11
Wiley of course leading the pack evil
06:13
place as alterations is changing the
06:15
definitions that’s not really butter
06:17
you’re kind of confused the public and
06:18
so they say levitates special tax and
06:21
only margins mattify only a margarine
06:22
pill 1940s is illegal yeah you have to
06:26
sell it white he couldn’t make it have
06:28
it look like butter and so you could buy
06:30
margarine the stores where Vickie
06:32
White’s or a great color a long whether
06:34
you had a tube of yellow color if you
06:36
can squirt the yellow tube over make it
06:38
look like butter
06:39
was only since world war two of the
06:42
powerful stranglehold of butter
06:44
interests their interest was broken we
06:46
can have decent looking only on
06:48
margarine I mean tasted okay but look
06:50
terrible right of course the butter
06:52
interest knew that they want to keep it
06:53
don’t outlawed the idea of yellow only
06:55
on margarine of course my name is
06:57
Mohammed leading the pack in this thing
07:00
so why he call for National Pure Food
07:04
and Drug Act pure food outlaw D simple
07:06
impurity outlaw changes really Cup
07:09
competition with butter competition with
07:11
with all products but he was on a loan
07:17
he was joined with this idea of a
07:18
national Pure Food and Drug a whole
07:20
bunch so organized retail aligns
07:23
wholesale grocers organized retailers
07:24
organize food interest the for example
07:30
the organized gross the national grocers
07:32
Association and a convention 1888 they
07:34
call for a lower quota protect the
07:36
honest businessman businessmen from the
07:38
competition of the evaporator but they
07:40
Memphis also ate a lot not poisoning him
07:42
off for jog them it somebody was new new
07:44
product like oleo margarine so they met
07:47
the dairy producers said they want a
07:50
protection of such frauds oleo margarine
07:51
a quorum halt grocers and one protection
07:54
against adulterated lar that they call
07:56
it different kinds of large competed
07:57
with heavy butter fat lard heavy heavy
07:59
tree we see received Lord of course
08:03
along with so their interest one of the
08:05
houses outlaw and a grocery interest and
08:07
intellectuals technologists like that
08:09
Wiley you want to have cushy jobs for
08:11
inspectors for chemist than with the
08:13
test and see whether it was an
08:15
alteration in quote unquote the the
08:23
adulterated Lord the log S was already
08:25
long past the Senate the house of sale
08:27
in the Senate of a cottonseed oil and
08:29
for us to work they’re making more of a
08:31
cotton see you kind of large is better
08:33
and tasty or whatever it is cheaper or
08:35
whatever the thing is of course so they
08:36
managed to stop that at any rate the
08:40
after many years of this agitation with
08:45
Teddy Roosevelt coming in there finally
08:47
got their way so we’re going on the farm
08:48
interest the grocery interest very
08:50
interest
08:51
separate plus Wiley and as technologists
08:53
by the way speaking for one of these
08:55
bills before the Franklin assistive
08:57
scientific body dr. Wiley conceded that
09:00
only a small part of food adulteration
09:01
injures a consumer he wasn’t worried
09:02
about that he didn’t say they poison
09:04
consumers is nothing to that said he was
09:07
more worried about the consumer spending
09:08
their money in ways that he while he
09:09
gets that are unwise he was trying to
09:12
send our pocketbook he said the poor
09:15
were purchasing food quote was
09:16
ostensibly pure nutritious but a reality
09:18
valueless the idea is you’re outlaw who
09:21
the technologists are not valuable I got
09:24
on junk food when I knew kids in
09:27
Virginia were raised on coca-cola said
09:28
of notary what do you do I walk over :
09:30
I just really so but see his concern for
09:35
consumers pocketbook very much like
09:37
doctors like physicians one outlaw what
09:38
they considered quite cures the public
09:40
wasting their money on them that’s not
09:42
because it harms the public they said
09:44
they’re wasting our money I’m not doing
09:45
valuable well they could serve as humors
09:47
pocketbook it doesn’t extend their own
09:49
money of course these things they want
09:50
to be the only ones planning on a
09:51
consumer they want any competition and
09:53
radium consumer pocketbook and so the
09:56
name of hopefully the consumers
09:57
protecting us oleo margarine cercanías
10:00
coca-cola so ever absolute blended
10:03
whiskey got yes Econolodge existing
10:05
status quo freezes that is closer to
10:07
speak yeah the same technique is widely
10:17
considered a photo on the call london
10:19
whiskey whiskey but no no the term
10:20
whiskey missus be confined to the ribs
10:22
straight whiskeys impure
10:27
beet sugar association of course they
10:29
all love while he’s going to sugar
10:31
people for their crazy at that the
10:39
anyway when Sonny Roosevelt comes in he
10:42
of course pushes this and there’s a cure
10:45
for the Drug Act why leave agitating for
10:47
for 25 years as I was finally passed and
10:49
of course when it was passed
10:51
rose along via points while as if with a
10:53
drug commissioner I educated for that
10:57
and while he reaches of some out of
10:58
existence 1906 as our first food and
11:01
drug commissioner a first aid will
11:03
happen guess has come up
11:04
so while he’s kind of cute he was a big
11:07
sugar fan I’m you know the big love of
11:10
his life
11:11
the first thing a while he calls for if
11:13
it gets to be commissioner of true for
11:15
the drug Commissioner that Lois Sakura
11:17
Sakura run was courts a big competitor
11:19
sugar and none of those nonsense about
11:22
saccharin causing cancer them the second
11:24
Justin likes a corrector they were
11:25
competitive sugar he says we have to
11:27
lost a crown is impure they’re both
11:29
ERISA it still turn out as Teddy
11:31
Roosevelt used to have takes a crown
11:33
with coffee every morning when the early
11:34
saccharine people so a big clash on this
11:39
Teddy Roosevelt first guys are nuts
11:41
this guy while he lights went out all my
11:43
Sakura what he does is not only does he
11:48
he points a higher board in the form of
11:50
a pass on this he was about and he’s
11:53
funny and he and a special Vig on while
11:55
he goes over while he’s having appoints
11:56
a new commission a new board ascites
11:58
matters as chairman of the board he
12:00
appoints IRA Rumson Lee the the guy
12:03
discovered Sakura inventor discover a
12:04
sack rather special diggin Wiley so
12:07
while I guess has come up on some long
12:08
last and and as the sailors while it was
12:15
a Greek poetic justice Hawaii me
12:17
hoisted another part of Sakhalin big
12:20
sugar thing the biographer Henderson
12:23
Levine by Wiley was an interesting
12:25
biography of them by a guy named
12:26
Anderson Caldwell health of a nation
12:28
Anderson of course loves while he thinks
12:30
the greatest guys in this genus
12:32
practically because interesting
12:33
summation of while I you said about
12:36
Wiley quote science filled the void left
12:39
by loss of sight and we’re here he rose
12:41
up as a biases Campbell like he loses
12:44
his religion but he becomes a salvation
12:45
by science okay
12:47
financial avoid left by loss of faith
12:49
perhaps Riley’s views stem from his
12:51
heritage of evangelical Christianity a
12:53
heritage whose theological
12:55
superstructure had lost its meaning for
12:57
him but his burning zeal for social
12:58
justice remain I mean he’s crushing
13:01
everybody else opposing his power than
13:03
everybody else to a government
13:04
he can call a social justice I’ve got
13:06
another name for it anyway that’s the
13:08
face of basic facts and while he’s
13:11
really kept above all these guy always
13:12
progressive intellectuals and
13:13
technocrats a good case study okay will
13:18
last time the National Civic Federation
13:19
was the main organization of Weinstein
13:21
fun point that which provided the
13:25
impetus for what we call corporatism or
13:27
the new dispensation of government
13:30
industry partnership for government our
13:32
welfare state is my warfare warfare
13:33
sadism it was first founded in Chicago
13:39
Chicago Civic Federation magna 1898 I
13:42
think and they had a conference on truck
13:47
and we generally liked etcetera and
13:50
finally became a was organized in 1900
13:53
out of that Chicago conference that went
13:57
national so to speak to the National
13:58
Civic Federation and the organizers I
14:02
Ralph easily it was a former school
14:04
teacher and journalist and the executive
14:06
director of the outfit in the oddly
14:14
enough she is kind of interesting with
14:16
the Chicago Civic Federation which is
14:19
the starter Wallace first came about
14:25
with some began because of a guy a very
14:29
interesting Englishman very important
14:31
English journalist named Williams he
14:33
said who was the editor of the London
14:36
Times which is what still is and those
14:37
days certainly was the most influential
14:39
English organ and sort of reflects a
14:42
government opinion and and these editor
14:48
at that point of the review reviews he
14:50
became had along the time little bit
14:52
later
14:52
anyway he he was it was a big corporate
14:56
test piping’s it was it was essentially
14:59
a friend of the cycle of Russell Road
15:02
organizing seeking Jose the secret roads
15:04
myrna’s ice roads fellowships and Road
15:07
society to push the idea one of the
15:09
British Empire and two of general
15:11
statism state and capital capital
15:16
government uh partnership and
15:18
intervention
15:19
he’s also a big company came to Chicago
15:22
he’s a big pietistic Cortina Chicago to
15:24
denounce vice gambling and prostitution
15:27
any
15:29
as we’ll see a little bit later this
15:31
also comes into the urban urban
15:33
progressive reform of the rest of period
15:34
the urban reform situation might close
15:36
that door we need jerks plus it’s not a
15:41
hole of higher learning okay
15:48
yeah he was able to rub and we’ll see
15:52
that the Santa little either today
15:53
probably the next time that’s the urban
15:55
reform comes along with us one with a
15:57
general corporate has welfare state idea
15:58
the idea of cleaning up the cities and
16:00
and especially purging ethnic riots I
16:03
think rhetorical and and working-class
16:06
types and seizing control by Pius s
16:09
businessmen thumper clients businessmen
16:12
white signs book talk a lot about that
16:15
of course we been into that a little bit
16:16
later anyway was a math meeting in
16:20
November of Chicago Civic Center coven
16:23
and November 1993 where which stead was
16:27
railing against prostitution and vices
16:29
pepperoni any form of so-called specific
16:31
Church London they try us have the same
16:34
thing up in Chicago and they’re
16:35
interested in this and they set up the
16:37
Chicago Civic Federation as a result the
16:39
president of Charlotte Civic Federation
16:41
Federation will I’m engage later they
16:43
became Secretary of the Treasury
16:44
head of the First National Bank of
16:46
Chicago and a big Rockefeller person
16:48
would you have to realize that
16:52
Rockefeller was was dedicated Baptists
16:55
all his life and so this is fitted in
16:59
very nicely with quite as concerns and
17:03
the secretary this app it was the same
17:04
Ralph easily a later found of the
17:06
National Civic Federation so gets its
17:08
start in 1893 before after said yeah
17:15
First National Bank of Chicago I was
17:18
going to engage it was the president of
17:21
the plan easily was the executive
17:22
director gauge later became secretary of
17:26
the Treasury under McKinley can we
17:28
became president
17:30
so uh another thing about stead is is
17:36
that he is a disciple of John Ruskin was
17:40
a big art critic and medieval socialist
17:43
and was something so yeah they’re very
17:45
very Pro state very anti capitalist yeah
17:49
yeah God you know I was got engaged
17:53
she’s me he was a president the Chicago
17:56
Civic Federation seven Englishmen are
17:58
simply inspired how the Civic Federation
18:01
he spoke and so forth and then he got
18:03
the he inspired he’s business been in
18:05
Chicago to set up a Chicago Civic
18:07
Federation continue the great work said
18:09
if it was like an evangelist he comes to
18:11
Chicago he whips everybody up they form
18:13
this organization and he goes back to
18:14
England
18:15
okay yes sorry that that was on the
18:19
executive committee over several roads
18:22
what happened was at Oxford TEFL Rose
18:29
was also influenced by
18:31
Ruskin and and the idea of medieval do
18:34
meet new for medium of socialism so to
18:36
speak and rows instead form in 1891 a
18:39
secret society called a circle of
18:42
initiative the leader instead of an
18:43
executive committee and most powerful
18:46
people in England became members of this
18:48
group the secret group including Lord
18:52
Rothschild essentially helped finance it
18:54
we now have lately the whole rows of
18:56
person the big diamond magnate the road
18:59
hubs finances and also watch out they
19:01
have a Rhodes Rothschild secret society
19:04
devoted to promoting British imperialism
19:05
number one and to statism in other words
19:07
domestic statism domestic welfare state
19:10
they control of industry and support so
19:12
on anyway the new economist guys like
19:18
Jake’s love what he mentioned and common
19:21
corporate has he kind of spoke of this
19:23
conference in Chicago Civic Federation
19:25
conference in 1900 conference on trusts
19:29
and this inspires I say the success of
19:32
this as far as easily and these guys to
19:34
set up a match to go national set up a
19:35
National Civic for
19:36
raishin to push this thing on
19:38
large-scale they had in this National
19:44
Civic Federation all the big business
19:45
interests the Rockefellers the Morgans
19:46
the Rothschild all don’t want all
19:49
involved in this thing because even
19:52
though they had differences of opinion
19:53
what the state should do what government
19:55
should do they all agreed and government
19:56
intervention is a key a key thing the
20:09
example by 1903 was only founded in 1900
20:12
by 1903 the National Civic Federation
20:14
Federation included representatives of
20:16
one-third of all the large American
20:17
corporation in other words all
20:19
corporations are over 300 they have more
20:22
than 10 million dollars of assets
20:23
one-third of them were involved in
20:25
national Civic Federation George Perkins
20:29
of course probably involved in a being
20:30
Morgan’s main political person and a
20:34
whole bunch of people led route William
20:37
Howard Taft later President Teddy
20:39
Roosevelt I think himself as and it’s
20:40
all gang was in it everybody was in it
20:42
the anyway there was a clash interesting
20:47
later between them and the National
20:48
Association of Manufacturers it all
20:50
started about the same time which in
20:52
those days was a small business group
20:54
nowadays of course in Kruger large as
20:57
long as small business but the N a.m.
21:00
again as a small business anti-union
21:02
group and they soon had big clashes n am
21:06
being which were overlays a fair asset
21:07
of the time and easily right
21:12
interesting interesting a revealing
21:14
point he says he could then the N a.m.
21:22
he said our enemy says our major our
21:25
enemies he wrote he writes us through a
21:27
friend and supporter of a National Civic
21:28
Federation he says quote our enemies are
21:31
the Socialists among the labor of people
21:33
and these were the Marxist etcetera and
21:34
the anarchists among the Catholic what
21:36
he meant by Anika’s is in and I am in
21:38
other words they lazy a fair advocate on
21:41
capitalism which he referred to an
21:42
anarchist so they saw themselves as a
21:44
third fourth and by the way all the
21:46
intellectual
21:47
goal involves us and one hand you have
21:49
lays eggs to here which they can
21:50
to be outmoded or too competitive or
21:54
whatever the other hand he had Marxian
21:57
socialism which is rising up in Europe
21:58
which they were against because it was
21:59
essentially sort of worker proletarian
22:02
oriented and legitly anyway so they saw
22:04
themself these people as a third fork
22:06
between Marxism Leninism on the one hand
22:09
and laziest are examples in the other
22:11
this is a third way the way of
22:15
government industry cooperation of court
22:17
authorization of general monopolies
22:18
corporatism as we can call it in this
22:21
same I so this idea is now in the air
22:22
it’s being held by the Morgans by the
22:24
Rockefeller holehole listed business the
22:26
United States and also in Western Europe
22:28
and we have to realize that seems sort
22:30
of thinking is going on in England and
22:32
France in Germany in Spectras of we have
22:34
a third way and a way where which the
22:37
instead of having class struggle you
22:39
don’t have laziest fair competition but
22:41
and you don’t have class struggle by
22:42
poll parroting of capitalist what you
22:45
have is a nation the organic nation
22:47
headed by the storm state running
22:50
everything healing everything
22:51
collaborating mulling all courses
22:53
together headed by big government the
22:54
kingly the president whoever happens to
22:58
be and collaborating through
23:01
associations businessman Association of
23:03
unions Association intellectuals who run
23:05
the system especially the corporate
23:07
state it was leaning would later call it
23:11
the this idea is now in the air in
23:15
Western Europe and America United States
23:17
I mentioned before the it really starts
23:19
in Germany Bismarck only in the German
23:21
cartellis the first real modern
23:24
compulsory cartel system in 1870s and
23:27
80s or all the firms are forced into a
23:30
cartel association of force of abide by
23:33
the state dominated price and production
23:37
decision the cartels run by the German
23:39
government and the intellectuals of the
23:41
time the German professors were handing
23:43
out the PhDs and American graduate
23:45
students were going to we’re calling
23:47
themselves a Gustav Mahler the famous
23:49
professor a university of history and
23:50
economics university of berlin says very
23:53
proudly we at the university of berlin
23:54
our function is to be the intellectual
23:56
bodyguard of the house of hohenzollern
23:58
other words the intellectual bodyguard
23:59
of the emperor the dynasty so this is
24:03
very
24:03
Frank statement other words the function
24:04
of intellectuals of the apologists those
24:07
colors of the government colleges sort
24:09
of state say this was the absolute
24:10
running everything in a fury and
24:12
everything controlling everything
24:13
associated lecture was the proposes of
24:15
popping and ice for it
24:16
college eyes for and help run it this is
24:19
the great blend that’s thrown an order
24:22
again I know if I mentioned this last
24:24
time which am so out history has a
24:26
throne in order you have a king of the
24:28
government of the president of or of the
24:29
haps would be running everything
24:31
politically taxing controlling building
24:34
up power etc and the Churchill
24:36
intellectual apologizing for it cry out
24:39
them the planet and getting part of the
24:42
loot return from the pool of State in a
24:44
case of course the new gills coming out
24:46
intellectual technocrats they get was to
24:47
get restricting entry in the field mr.
24:50
gantry the medicines are into
24:51
engineering whatever the law that
24:55
increased their income and who state
24:58
privilege he told about medicine with a
25:00
later on housing works in medicine a
25:02
real scandal this is what having a 1910
25:05
with a famous Flexner report totally
25:07
transform the medicine United States at
25:10
any rate the the case of unions the lazy
25:18
affair people against unions National
25:20
Civic Federation or favor of unions
25:21
we’ve already seen a unions hardly exist
25:23
except on cracking except some small
25:25
building trays and small cracking the
25:27
National Civic Federation feel a
25:29
different vision they believe in large
25:30
unions they wanted big unionism so so
25:33
it’s a grunlich to run though your labor
25:35
force to organized labor force in
25:37
collaboration with big business and big
25:39
government other words to be sort of
25:41
like a transmitting orders of the
25:43
working class of speed the really World
25:52
War one as well see the Guardians
25:54
program I essentially created Union
25:55
Matthew United States that are almost
25:58
almost they know those who through World
26:00
War one collectivist two orders of World
26:03
War one collectivism
26:05
another thing is unions helps deal with
26:08
the court eliza system for example we
26:11
delete the head a bit
26:13
the 1930s on the Wagner Act created
26:16
going to effect mask industrial Union of
26:19
the United States
26:20
Jarnell Louis of the United Mine Workers
26:22
Union a cold item of the coal industry
26:24
but essentially did was he says he
26:26
understood about of the man curve and
26:27
went up but in other words he has a
26:29
demand curve for labor and wage rate and
26:34
quantity of labor hired he understood if
26:37
you if you increase you jack up wage
26:38
rates you will unemployed dis employ a
26:40
whole bunch of people he was a favor of
26:42
I didn’t care the Lewis’s viewers but to
26:45
do is you jack up rage rage rage rates
26:46
for these union workers of seniority
26:49
people in the coal coal mines I had like
26:51
20 years seniority
26:52
that’s only cared about the maximize
26:53
their income you didn’t care about the
26:55
unemployment for the younger workers and
26:57
for those who are coming up you know
26:58
people growing up and wanting to become
27:00
earn out of people he collaborated with
27:02
a coal mining industry because he then
27:04
they did is they the collaborating ideas
27:08
pushing out wage racers who essentially
27:11
put out of business all the smaller coal
27:13
mines were higher cost coal mines or
27:15
interfere with competitors we put out a
27:17
business through increasing wage rates
27:18
so what your hand in other words work
27:20
authorization through the industry
27:22
industrial unions an industry-wide Union
27:24
deliberately putting out of business a
27:26
whole bunch of coal miners for the
27:27
benefit of the employers logic we
27:30
launched chrome wires and clean a core
27:33
the unemployment for the younger
27:34
co-workers in that seniority and Johnny
27:37
Lewis or understood this probably well
27:39
and did it in other words the pure
27:40
monopolistic or cartellis act on his
27:42
part along with the wine industry it’s
27:46
often felt by many people like unions
27:48
and businesses are always a clashing
27:49
they’re not necessarily clashing
27:51
sometimes they have common interest such
27:52
as screwing the smaller coal mine
27:55
alright and that sort of the same way it
27:58
was a teamster Union for example the
28:01
teachers union bitterly fought the idea
28:03
of trucking deregulation few years ago
28:05
and deregulation came in in 1978 the
28:09
Teamsters fought along with a large
28:11
trucking people fought the idea there a
28:13
like so didn’t what they didn’t want to
28:14
have small trucks coming in mom-and-pop
28:17
trucks because they obviously not going
28:19
to join the Union so they fought
28:21
bitterly against is a mighty
28:22
collaboration between the large trucking
28:24
interests and the Teamsters Union so
28:26
all the time as you understand that
28:28
understand the way the real world works
28:30
so any rate so as a part of this drive
28:38
the National Civic Federation starts
28:40
pushing for workman’s compensation law
28:42
he’s be very progressive it’s a workman
28:44
if a worker gets injured on a job the
28:47
government should take for it through
28:48
the year fooling with alleged insurance
28:50
or whatever clearly the various firms
28:52
kickin and it was fun yeah they promoted
28:58
unions they also promoted workmen’s
28:59
compensation laws you probably did I
29:04
don’t really know that much about
29:05
British history I think they had the I
29:09
don’t know I don’t know if they had the
29:11
exact exact the name wasn’t the same I
29:14
probably think sort of thing you know I
29:16
would think so yeah yeah yeah I’m sure
29:28
well what happened on the coal industry
29:31
is of the like eat well this is a
29:33
special situation with Elizabeth the
29:35
after World War one after World War one
29:37
is really wacky because the pound pound
29:40
sterling was was always 47 what all made
29:43
sense that had been for a hundred years
29:46
the World War one comes with general
29:48
inflation everybody was goes off for
29:50
those men and flaking over the pay for
29:51
the war effort every country including
29:52
United States which only partially went
29:54
to offer those there any raise the end
29:56
of course we only had war for eighteen
29:58
months year of their award for four
30:00
years at the end of the war by 1920 or
30:03
so the pound had sunk on the free market
30:05
to about 320 everybody want to get back
30:10
to the gold standard generally agreed to
30:11
have a sound international financial
30:13
system image to go back with all the
30:14
rational thing would have been done
30:16
bring on to cut their losses okay the
30:18
pound is appreciated from 47 to 320 you
30:20
go back to the old man SP 20 okay that’s
30:23
it I wasn’t perfect nothing what if the
30:25
no problem was been great
30:27
instead of that these jerks and one of
30:29
the most well the craziest wackiest and
30:31
most unproductive or counterproductive
30:34
decisions in 20th century history so we
30:37
have to go back a little Sam asked the
30:39
original par 40
30:40
because that’s what it always was one
30:42
that was always 47 the pound with these
30:44
verbs the old promise be restored and
30:47
also they accept the procedure the prat
30:50
of a component they wanted to
30:52
re-establish London’s weak financial
30:53
center of the world but if United States
30:54
New York was coming up fast in order to
30:57
do that they insisted on going to back
30:58
to 47 totally wacky and nutty decision
31:01
and no we can’t I don’t think any
31:03
economist in England but let’s go back
31:05
at 3:20 some say we should have your
31:07
Dean will pay for money others most of
31:10
them said we have to go back 487 they
31:11
will call for those non stuff so in
31:14
other words this meant of course of
31:16
British exports if you go back a 487
31:19
British exports now unsellable sources
31:21
are now very high price you’re going
31:23
back a highly it overinflated pound I
31:27
mean a product which would be let’s say
31:30
100 from whatever it is one widget which
31:32
was originally cost 320 in the United
31:34
States and of course 487 because they’re
31:36
going back to highly over valuated our
31:38
value pan so in other words is a very
31:42
deflationary decision in order to make
31:46
this viable I mean they have to have an
31:48
internal deflation they have to have
31:49
contracts of money supply and lower
31:51
domestic prices goes to bring make the
31:53
export competitive the major export is
31:55
coal the other one is text files how I
31:57
got into this cool is there big export
31:59
to in textile so in other words they
32:03
deliberately place a tremendous burden
32:05
on the coal industry and on my effects
32:06
on the street because they were now
32:08
uncompetitive would have had to have
32:09
deflation in a northeast place they want
32:10
to insulate they hear the British
32:13
government insist one on going back to a
32:14
pound
32:15
very over a value of how much would have
32:17
required a big deflation to have the
32:19
export competitive set it as a inflate
32:21
so they haven’t they’re totally screwed
32:23
up they have a totally very very odd
32:25
situation in order to make this
32:27
sustainable I have to try to get
32:28
everything so the know where the England
32:29
had a depression all during the 1920s
32:31
everybody else had a big boom Tony’s
32:33
anyone has a big depression heavy
32:35
unemployment especially in : than their
32:37
text file export industry and the way
32:42
that the way they try to solve this is
32:43
the force everybody else ends flight so
32:46
they wouldn’t lose gold
32:47
fourth united states and with no
32:48
inducing I think flight importantly
32:51
suckered us into a through the Morgan
32:52
connection
32:53
a P Morgan connection the companies in
32:56
Europe which they ran from the League of
32:57
Nations they force the one flight or
32:59
Gary and all these countries they
33:01
literally arm-twisting to get them to
33:03
inflates of the English England would
33:04
gain exports with a horrible situation
33:06
such the feeding of precipitated finally
33:09
the collapse 1931 with old British Pound
33:11
goes bankrupt and we look with oak
33:13
paneling a big depression and anyway
33:15
that’s it all starts with this idiotic
33:16
the fishing or bag of 47 within that
33:20
framework they handle things very
33:21
shrewdly be given the crazy situation
33:26
the union’s work union but what happens
33:28
to the union’s union of them came about
33:31
in any one very World War one because of
33:32
massive unemployment insurance where
33:35
unemployment she was almost equivalent
33:38
to the wage rate so if you had a wager
33:40
of $10 per you know three dollars an
33:42
hour you’ve got an unemployment short of
33:43
PETA’s anti-fur now for a long long time
33:45
which helped the Union sustain a very
33:48
high high high weight excessively over
33:51
over market wage rate your chapter
33:53
realizes unemployment insurance on
33:55
welfare also but they do have subsidized
33:57
unemployment
33:58
it keeps they create unemployment
34:00
basically but they did they prevent
34:03
pressure land employed upon Union wage
34:05
rates at minimum wage rate so anyway
34:08
that was a that was a cold situation so
34:12
anyway they push for what workman’s
34:14
compensation was looking very
34:16
progressive and humanitarian what it
34:17
really meant like to put burdens on
34:19
small firms which haven’t got something
34:22
yeah just a right out of pace fixed
34:24
court to write out the forms everything
34:26
is an excessive cost burden on the
34:28
smaller competitors these big bigger
34:29
businesses so the name of
34:31
humanitarianism put you again help the
34:33
court eliza system like placing height
34:35
course on a small firms for example take
34:38
the liquor industry liquors she’s always
34:40
complaining about high taxes improperly
34:42
so however liquor industry is in favor
34:44
of very high taxes on still in other
34:47
words you pay essentially a six-course
34:50
the fixed feet per still it was
34:52
distillery and liquor so if you pay a
34:54
6-quart whatever the fixed courses let’s
34:56
say five thousand dollars
34:57
still i don’t know what it is she’s
34:59
something like that this means of course
35:00
Seagram’s can pay it pretty easily a
35:02
borrower or or or Jack Daniels but Hiram
35:06
Jones in the milk
35:07
and what Virginia can’t pee only makes
35:09
about 2,000 you can’t I have 5,000 all
35:11
year fee this drives Hiram Jones into
35:13
illegal moonshine production in other
35:16
words the moonshiners or product of this
35:19
fixed fee by which the big liquor
35:20
company squeeze the smaller firms out of
35:23
business you can’t they have a high
35:26
fixed cost per per distillery of per per
35:29
still deliberately done in order to
35:31
screw the ports more competitive poor
35:33
moonshiners enforcing the illegal
35:35
production so another what you put you
35:38
have to look at the welfare state will
35:39
be giving most of the rest of the
35:40
terminal the examples of this in other
35:41
words examples of situations where
35:43
alleged welfare state situation where
35:46
big business gets together to impose
35:48
government regulation in order to screw
35:50
their small competitors the drive
35:51
smaller photos out of business one where
35:52
they are either either officially drive
35:54
them out of business like Medical
35:55
Licensing or opposing high fixed course
35:58
honorable in one way or the other and we
36:03
National Civic Federation what they
36:04
would do is they would push for this
36:06
they would write a model law nor were
36:08
they like their experts or how bright a
36:10
a model worker compensation that is then
36:14
they saw lobbying for every state a
36:15
state governments cost like this as they
36:17
get more times they the work is cut out
36:19
for them they don’t have to write the
36:20
legislation is written for them by the
36:22
National Civic Federation they just
36:24
adopt it so another reason for this is
36:27
the liability question and the common
36:31
law if you’re a worker and you and you
36:34
get an accent on a job your employer is
36:37
liable only if only if the worker
36:40
himself is not responsible or another
36:42
worker is not responsible or he’s not
36:45
wanted what employer is not liable if
36:47
you if you voluntarily assumed the risk
36:48
in other words if you’re you know if
36:49
you’re a high wire construction person
36:51
in you fall off obviously know you’ve
36:53
assumed the risk you know what’s going
36:54
on the Corps is not liable so in this
36:57
kind of common-law structure usually
36:59
employers and most accidents employers
37:01
are not liable
37:01
well the government the government
37:03
started changing the laws about 1900 so
37:06
it’s to make employers liable for more
37:08
and more accidents as a result the
37:10
employers thought of pushing for
37:11
workman’s compensation legislations they
37:13
wouldn’t be liable and then let me let
37:14
the fun pay for it so that was another
37:17
reason for it many right
37:26
another aspect to progressive reform I
37:29
want to mention as public and the public
37:32
utility question again this is now this
37:36
is for many years up until very recently
37:38
as part of it was consider the public
37:39
utilities has to be either
37:40
government-run or government monopolize
37:42
because as a natural monopoly it was
37:44
cool
37:44
natural Nopalea gas and electric
37:46
combination when always on and on set
37:48
there’s always one carnage has had a
37:50
monopoly of all electricity sold in the
37:52
city of New York Columbia University for
37:55
example generates its own electricity
37:56
that’s legal you can have your own
37:59
generator for your own your own building
38:01
it’s illegal however however home
38:04
university is fellow the guy
38:05
across the street you know probably they
38:07
could do it cheaper than Con Ed it’s
38:09
illegal but the content has a
38:10
territorial monopoly and all sales of
38:13
electricity and gas
38:17
so most of courses stuff is restrict all
38:21
kinds of technological innovation if
38:23
carnet has a monopoly on all new york
38:26
city electricity means there’s no
38:27
incentive for anybody discover a way to
38:29
have better descent more efficient
38:30
decentralized electricity because it’s
38:33
illegal you think of the scrim yuccas
38:34
OSI when I thought least at I don’t know
38:36
what kind of event something which turns
38:38
out to be illegal so at any rate the the
38:42
idea of monopoly privileges for public
38:46
utilities only comes down the
38:47
Progressive Era it’s not eternal comes
38:48
in in my 1900 1905 it first was
38:52
established by National Civic Federation
38:53
and the Commission on public ownership
38:55
of public utilities and the the idea is
39:00
this is true for trolleys buses gas and
39:02
electric and for color songs
39:06
idea is that’s the it created a monopoly
39:08
privilege about the government nobody
39:10
else can compete in this in this area ok
39:13
and then you set the rates you regulate
39:16
the rate so it’s a guarantee a certain
39:17
fixed rate of profit quite a guarantee
39:19
anyway the rates are based the rate of
39:23
profits based on the value of capital so
39:26
let’s say it’s 8% looks like the capital
39:29
investment of electric company is a
39:31
million dollars and you set the rate so
39:35
forget given our eighty eighty thousand
39:38
profit right if you have not only your
39:40
profit is the higher the value of the
39:43
capital the higher the government fixes
39:44
the rate the public utility commission
39:46
fixes the rate so the interest of each
39:48
firm each you’re like to see firm or
39:50
Crawley for whatever to keep the value
39:52
of the capital high as high as possible
39:53
so the government then jack up the rate
39:56
Levin Orthodox accounting principles the
40:00
value of capital is based on how much
40:02
the guy becomes the firm paid for a
40:03
certain value certain equipment or plan
40:05
so if you pay a lot of money to
40:08
equipment it’s fixed of that pricing and
40:09
if you only appreciate it much it just
40:11
stays there you can set the rate on that
40:13
basis as a result content for example
40:15
levered appreciates their camp they try
40:17
not to depreciate their capital at all
40:18
keep the capital magic because you
40:20
depreciate it means a regular camel goes
40:21
down they have to lower their rates it’s
40:24
probably crazy systems most firms for
40:27
example like IBM is depreciating all the
40:29
time they wanted appreciate it very fast
40:30
so they got a lot of funds they can plow
40:33
back money the new equipment there won’t
40:34
be obsolete but Con Ed or AT&T; before
40:38
deregulation they did they weren’t
40:39
interested in appreciation because it
40:41
appreciated they have to lower the value
40:43
of that capital and government’s rates
40:44
will go down I mean the rates the
40:46
government set will go down so this is a
40:48
result coned almost ever depreciates
40:50
Connersville hanging on and I think pen
40:52
equipment because they say they
40:54
depreciate equipment the official
40:56
Orthodox accounting value like Apple
40:57
goes down they have to lower their rate
40:59
so that’s why heavily that’s one of you
41:01
I have an exam black assholic on copper
41:05
8 equipment sixty years old if their
41:07
economic interest to do so
41:09
contrast with free markets firms the
41:11
interests of the keep off of composition
41:13
and get as productive as innovative as
41:15
possible not however you if you’re a
41:18
regulated monopoly like is probably a
41:19
thule system stress today the fact that
41:23
progressivism ran those not not just in
41:25
the federal levels in with talking about
41:27
rules on a state and local level the
41:28
whole revolution the united states state
41:32
and local as well as federal regulation
41:37
last time i mentioned public utilities
41:40
there’s no reason why public utility has
41:43
to be monopolistic or nash that there’s
41:45
own natural monopolies or as such it
41:48
should come about naturally not by
41:49
government supply at sea okay what
41:55
happened was the utilities again
41:56
realized this is a good thing and get a
41:59
monopoly franchise for 20 or 50 years
42:03
eurasian or something and guess I’ve got
42:04
Utility Commission to grant a cost plus
42:08
or a maximum a profit that’s a rate at a
42:11
return which guaranteed ur of profit on
42:14
a capital investment the and this was
42:22
pushed by a National Civic Federation
42:24
and other organizations electrical
42:26
utility manufacturers for example to
42:29
push for government monopoly so call
42:32
utility a public utility regulation of
42:34
public utility status the one of the
42:37
first guys on the coming of this
42:40
conclusion was Charles Yerkes with a big
42:42
Chicago traction management especially
42:44
Boston the trolley and he can’t
42:50
inclusion be more profitable with a
42:52
government monopoly than
42:55
free-market company so he so what he did
43:04
is he found out that he couldn’t be you
43:06
you get monopoly for 20 years monopoly
43:08
but he found out his he had a whole
43:10
bunch of monopoly franchises trolleys
43:13
and cetera and he but each time he had a
43:15
broad the City Council money give him
43:17
every time it got renewed and and week
43:21
and so each every couple years of him to
43:23
have a new set of bride in other words
43:25
the renewal would come up and he
43:26
couldn’t slow 20-year bonds because the
43:28
bond whole
43:29
couldn’t couldn’t be guaranteed but he
43:32
keep getting them sloppily status so uh
43:37
but he did that is he had some bills
43:41
introduced the Illinois legislature in
43:43
1897
43:44
being premature person here which would
43:48
extend the beginning of the progressive
43:50
movement quote-unquote aggressive
43:53
movement
43:53
utility franchises instead of having a
43:56
20 year monopoly have a 50 year monopoly
44:00
and have a alleged instead of having the
44:03
City Council set the race the race would
44:05
be set by quote non partisan unquote
44:07
State Utility Commission which would be
44:09
objective and scientific and blah blah
44:12
blah this is by the way as we’ll see
44:13
today one of the big one of the big yard
44:16
goes progressivism in economics and
44:20
industry if the quote take something out
44:22
of politics unquote men would take blank
44:25
out of politics you can fill in the
44:28
blank electric utilities telephone post
44:35
office almost anything can be taken out
44:37
of transportation taking out of politics
44:39
means that the government runs it or run
44:42
to the connection with a monopoly
44:43
company without any public without any
44:45
check by the taxpayers or the voters
44:47
because it then becomes a hermetically
44:52
seal outfit yeah vitaliy a CSU is a
44:59
wasn’t Leda monopoly right it was also
45:00
was a knobbly it was put in by the
45:02
Esprit by the federal government Federal
45:05
Communications Commission regulating it
45:07
was a guarantee monopolies allegedly
45:09
because color phones are supposedly a
45:11
natural monopoly and that’s the only
45:13
case it might have been a case for that
45:14
in 1890 or all the way even then you
45:16
couldn’t could really I mean if
45:18
something is a natural monopoly monopoly
45:19
let it be form naturally not by
45:21
government coercion the argument was
45:24
we’ve seen movies of the boom movies
45:27
about 1900 movies about that period and
45:29
Mexico Italy has everybody has ten
45:31
phones on a desk of the ten different
45:33
phone company okay well I mean so it’s
45:36
more convenient to have one phone come
45:38
in the other hand for homecoming some
45:39
can interlock with each other nothing
45:41
prevents them from school from coy on
45:44
each other’s line and I have an
45:45
interconnecting cable
45:54
let’s okay buddy but it’s free
45:56
competition within that other words like
45:58
using a public road and that’s if you
46:00
pay a fee and the spent on the same one
46:02
it doesn’t make any difference if you
46:04
can have a competition anyway although
46:07
one of those one of the problems one of
46:09
the positive is for the 1880 monopoly
46:11
not only they keep as prevented other
46:13
other companies producing phones for
46:15
example and data interconnect when when
46:18
the a monopoly eliminated about ten
46:20
years ago ten fifteen years ago its beam
46:22
rifle entire new industry call the data
46:23
interconnect industry know all the
46:25
different phone system first within each
46:27
corporation a closed-circuit TV and even
46:31
from York Chicago it was all prohibitive
46:33
because of a monopoly and that’s that
46:35
that eliminating that monopoly you know
46:37
give rights is called enrollment whole
46:39
industry also you can have other other
46:45
other communications systems where
46:47
couldn’t couldn’t occur because it was
46:49
nolo is illegal technologically
46:51
eventually have not you know champion
46:55
has also the phone type of communication
46:57
type systems like you know like TV
47:00
face-to-face TVs in different cities and
47:02
stuff like that all of those things
47:03
going to happen once you eliminate a
47:05
monopoly you allow that to take place so
47:09
you might have eventually I don’t know
47:12
you could go into some phone booth and
47:13
call somebody up and have a face-to-face
47:15
TV conversation it’s technologically
47:17
feasible just not as much in demand yet
47:19
and all sorts of stuff could occur
47:22
adjust and satellite communications on
47:24
those what else except for hibbott
47:26
advice as apt 1880 monopoly fortunately
47:30
that’s now over unfortunately they went
47:32
too far not only do they eliminate an OP
47:34
they also broke up AT&T; there’s no
47:36
reason for that
47:37
breaking out beyond New York phone
47:38
system and 18th Issa preventing as the
47:41
same assets and having a local owner and
47:43
and interstate so no reason for that is
47:46
that was that was just that was just
47:47
exist the instruction on behalf of crazy
47:50
economic theory
47:52
yeah they wanted to have her there we
47:55
want to be able to have low specifics
47:57
this is forcing you to have another
47:58
assembler company even you don’t want it
48:00
most people we having a continual 18c
48:03
both domestic and foreign interstate
48:06
they just can’t do it because the
48:08
interest AT&T; is not allowed to possess
48:10
a mobile phone stuff anymore
48:12
that went too far that was the antitrust
48:15
but he’s the real thing a liberator the
48:18
phone industry was eliminating the FCC
48:20
monopoly event as 15 years ago so any
48:25
right the so first now you can have what
48:32
you can have hundreds of phone
48:33
conversation on the same table there’s
48:35
no reason up a house psychologically
48:37
it’s very easy you don’t have to have 50
48:38
different phone the so what your keys
48:45
want to do is say so have set up an on
48:48
part of the Commission and have a 50
48:50
year monopoly preferred company so you
48:53
would have to keep bribing the City
48:54
Council in every couple of years it will
48:56
reduce his library cost however he came
49:01
a cropper because he didn’t part of the
49:03
of the mystique of urban progressivism
49:06
16 a minute or a taxable corruption and
49:09
this he was of course of Packers being a
49:11
Corrupter on a bribery type his his bill
49:13
was defeated in 1897 only to be
49:16
resurrected as a so-called progressive
49:17
tactic at ten years later the so
49:25
learning from your pieces aboard a
49:26
program Samuel Insull later accuse being
49:29
a crook in late 1920s probably probably
49:33
unfairly Samuel install starts the idea
49:36
for rest of isms learning from your feet
49:38
your pieces mentor in Chicago starts the
49:41
idea of monopoly monopoly public
49:44
utilities he
49:50
in a presidential address before the
49:52
National Electric Light Association June
49:54
8 1998 areas fellow electric utility
49:57
magnates to get the industry of the
50:00
regulated by state Commission’s with
50:01
full power fix rates and quality of
50:03
service and he said he stressed the
50:05
government’s rate making fire rather
50:07
than monopoly monopoly there just was
50:09
more he was more sensitive the public
50:11
relations of poor Yerkes was it was
50:13
obviously just all after the bribe so
50:18
most of the utilities magnates and also
50:21
the purple thing is violating
50:22
laissez-faire but he got a few
50:24
supporters and they set up an
50:25
association committee and legislative
50:28
policy and he got in charge of Chicago
50:32
Edison and Commonwealth electric it was
50:34
pushing this and of course I was saying
50:36
about 10 years became the general public
50:38
utility doctrine the and once again
50:51
Wisconsin the National Civic Federation
50:53
Wisconsin was a leader on this whole
50:54
state progressivism including double
50:56
utility monopoly headed by the Wisconsin
50:59
economist Richard Keeley’s the big
51:03
so-called progressive john arne commons
51:04
as a disciple a whole bunch of them
51:06
these are main economist pushing the
51:09
so-called wisconsin idea which Wisconsin
51:11
progressivism across the whole state Ely
51:16
was also bigshot clientís quietest
51:19
regret a scientist with private type
51:23
post-millennial pie that nobody believed
51:25
of the way to achieve salvation is who
51:27
is through Percy which the government of
51:31
course we have to have in millenium and
51:32
then Jesus will come and this means
51:35
again that and as any does it through
51:37
government for government action a great
51:39
quote from Ely is that the government’s
51:42
God’s major instrument of redemption in
51:44
other words we achieve salvation through
51:45
government actions the government
51:47
controls etc Commons is his disciple
51:51
singing the one so on
51:55
so here’s an Weinstein putting out from
51:58
the book what you should have read
51:59
anyway once I quote about public
52:01
utilities a good quote so by 1909 many
52:04
industry people within public utilities
52:07
I begun to look favorably on regulation
52:09
by state Commission’s and understand the
52:10
advantages of taking utilities
52:12
regulation out of politics once again
52:14
taking out of politics means that you
52:16
have your own cap board it’s so called
52:19
non partisan board to do it and not
52:22
really regulated money provided by the
52:24
people for example Postal Service isn’t
52:27
taken out of policy we start with post
52:28
office the head of the post well used to
52:30
be as a chairman of the Democratic
52:33
Republican National Committee a big
52:34
politician Asaph opposed over those
52:36
tools that’s the way most of the
52:38
patronage on the local level or
52:39
postmasters your loyal Democrat oil
52:42
probably a postmaster well in order the
52:45
six types of posts of post office every
52:46
years had a deficit the post office of
52:48
course also the only after that I think
52:50
on the United States were not only the
52:51
price go up every year but the quality
52:54
of the service goes down usually in
52:56
private industry even if the price goes
52:57
up because of inflation leases service
52:59
goes up the quality goes up and the
53:01
Postal Service every year the quality is
53:04
going down every years gets take longer
53:06
to get a mail a letter delivery when I
53:09
was growing up in 1930 Visa gets to two
53:12
meals a day to delivery today every
53:13
every part every house to the apartment
53:15
are we have to a day without them now
53:17
it’s lucky if it’s one a day and
53:19
Saturday often they drop out things like
53:22
that so take more and more efforts for a
53:26
letter to be sent as you as you well
53:28
know it used to be when I was growing up
53:30
within New York City the price is two
53:31
sets of stamp makes like say sixteen
53:34
cents now the equivalent to H fold
53:36
increase in prices
53:39
three cents and Stanford for regular
53:41
first-class mail court announces much
53:44
higher not only is it my time of the
53:45
service of words we still have air mails
53:47
with special Elena’s been eliminated now
53:50
everything goes by air and therefore
53:51
everything is slower a few years ago in
53:53
order is relatively inefficient Postal
53:55
Service here’s some guy took a letter in
53:58
Philadelphia and wrote a horse from
54:00
Philadelphia reppin up on a Paul Revere
54:02
in uniform and go before Santa why rode
54:04
a horse the washing and
54:06
lit up my hand from the horse took about
54:08
ten hours something like that
54:09
grandma ties in fact takes about two
54:11
weeks to get this good bike high-speed
54:13
electronic and Postal Service so and so
54:21
a few years ago the Postal Service order
54:23
quote make it more efficient unquote
54:24
they took it out of politics the created
54:26
the Postal Service on a so-called rivers
54:28
basis which means the Congress can’t do
54:30
anything about you can’t get to it in
54:31
other words seal off fun we feel also
54:34
administration and so then on the count
54:37
even the voters and taxpayers can’t do
54:40
much about it hermetically see a wall
54:41
called picking it out of politics making
54:44
a businesslike basis so the voters can’t
54:46
get to it same thing was done with
54:48
transportation Astoria in New York
54:50
miserable rotten subway system was taken
54:53
out of politics about twenty years ago
54:54
itself the Transit Authority mental
54:56
confrontation is on a so-called
54:58
businesslike basis meeting state
55:00
legislatures and the voters can’t get to
55:02
it feel lost and oligarchy folks run
55:05
oligarchy and the first payment goes to
55:09
the bondholders by the way what happened
55:12
was they nationalize a subway system and
55:14
it supplies in linking 30 took it over
55:18
we’re losing money because the
55:20
government was fixing the fare five cent
55:22
and first this isn’t a fix of high
55:26
census 1900 so they were losing money as
55:28
prices went up course went up and the
55:31
government then city government took
55:32
over the subway the means and IRT and
55:35
BMC at a very high price big subsidy has
55:38
stockholders not always loved it and
55:41
then they as nez became New York City
55:43
bondholders and then got first lien on
55:45
every subway Reverend when we’re first
55:48
guys we get paid or use as a big subway
55:49
deficit Ron hood gets paid off the top
55:53
and they get paid off an increasingly
55:56
higher rate because their interest rates
55:57
in those days like 3% now that’s what
55:59
they refinance the bonds refinance is 20
56:01
and 12 percent of something you get a
56:02
look the city the city’s subway riders
56:05
are none bus riders on total hostile
56:07
even bondholders from the third from the
56:09
last 50 years this is called putting our
56:11
business this is cool taking a subway
56:13
system out of politics
56:16
anyway continue on the underlying
56:21
principles of the regulatory legislation
56:23
support a responsible private ownership
56:25
and the experts appointed to the new
56:27
commissioner almost invariably
56:28
conservative in that there’s not
56:30
question of framework of utilities
56:31
industry the result there forth
56:34
introduced the ability in the industry
56:35
and the quote raised public morality
56:36
unquote with a move of discriminatory
56:38
rates means a move of competition as we
56:40
all know now the electric utility
56:45
industry was a major trying trolleys of
56:47
the major backers of this by the full
56:50
1913 Ralph easily the head of the
56:53
National Civic Federation’s
56:54
both the president’s us well presently
56:57
the International Civic Federation at
56:59
the great success of the driver public
57:01
utilities regulation 25 years ago he he
57:03
exulted we would have regarded this as a
57:05
species of socialism unquote but now
57:07
utilities are submitting with many
57:09
railways even embracing regulation
57:11
joyfully okay so this is the is joyful
57:15
regulation other words businessmen
57:17
became more and more to see the
57:18
monopolistic advantages of this kind of
57:20
regulation okay and in the National
57:26
Civic Federation will a big shot so will
57:28
the Morgan Morgan and Salta Morgan
57:30
partners Carnegie Rockefeller Charles
57:34
Francis Adams beholdin Mark Hanna the
57:35
whole gang was involved in this thing
57:38
plus the politicians Cleveland passed
57:40
Teddy Roosevelt
57:42
Elihu root and Samuel Gompers in the FFL
57:45
everybody’s involved in this thing one
57:47
big happy family as a couple George
57:50
Perkins of course top corporate um and
57:53
leadership and union leadership but I
57:57
guess I already quoted easily saying our
57:59
enemy the socialist among the labor
58:01
people in the anti gets them on the
58:02
capitalist and even lazy affair types
58:06
okay now get to work with compensation
58:20
and also push by the same people and I
58:23
get to the local government
58:27
please a great quote I can’t avoid US
58:29
International civic Parrish Frank Muncie
58:32
the publisher of Harper’s publishing
58:35
company and Hubbard’s magazine wrote a
58:37
letter to Teddy Roosevelt
58:38
January 1912 and he said quote is the
58:41
work of the state that means the
58:42
government the work of the state to
58:44
think for the people and plans of the
58:45
people to teach them how to do what to
58:47
do when a sustained them of the doing
58:49
the function of government to run
58:51
everything I’m leaving them and this is
58:53
a simple corporate to state corporate to
58:55
progressive at work can we get to we get
59:01
to local government again the theme is
59:03
Oakland state government local
59:05
government to keep to take everything
59:06
out of politics and I was growing up in
59:08
1930s the big slogan was it doesn’t
59:10
matter for the Republican or Democrat
59:12
gets elected because there’s no such
59:13
thing as a Republican or democratic way
59:15
of sweeping a streak so in other words
59:17
all problems become technical no
59:19
political problems anymore no value
59:21
problems everybody Swiss agree in all
59:23
values so all matters of least local
59:26
government become technical and a full
59:28
manners of technical are not valuation
59:30
‘el not political who should take care
59:32
of them a technocrat economist social
59:35
workers engineers separate several
59:37
escape leaves a power vacuum to these
59:39
guys to take over and run everything and
59:40
the basis of so-called non-political
59:43
there’s no such thing as non-political
59:44
government that’s the whole point trying
59:46
to make here but they’re trying to do is
59:48
to take government out of politics is
59:49
what really masochist
59:50
they don’t quite say that because it
59:52
sounds too idiotic but basically what
59:55
they’re doing is the progressive dream
59:56
is to take all government decisions out
59:58
of politics make it scientific quote
60:00
unquote
60:00
and they of course what scientific means
60:02
that the governor bureaucrats run it
60:04
means the government the taxpayer pays
60:06
up everything is monopolized in the name
60:09
of the so-called efficiency or so-called
60:11
long nonprofit a non partisan everything
60:14
becomes non partisan street-sweeping
60:16
local government all these things become
60:18
a rigidly only technical problem they’re
60:20
not technical probable value problems
60:22
government political period citizens are
60:24
not engineers and not garbage disposal
60:27
experts so if all government decisions
60:30
are scientific or technological these is
60:33
no room for voting public not supposed
60:36
to vote
60:36
prior decisions of the technocrats so
60:39
this whole thing is an ideological
60:40
deeply ideological doctrinal in the name
60:43
of non ideology by the progressives and
60:46
it comes at a time remember when after
60:47
1896 there was no lays a fair political
60:50
party political parties themselves are
60:52
becoming unimportant there’s no choice
60:54
no real ideological choices anymore
60:57
after in 1900 and so it leaves a power
61:00
vacuum for the rest of technocrats a big
61:03
business pipes their allies to take over
61:07
in the in local government this meant
61:13
well and generally that meant trying to
61:16
eliminate trying to play down and
61:19
minimize the decisions of the voters and
61:21
minimize voters role of voters how do
61:27
you do that because voters are can be
61:28
course the not part of this whole clique
61:31
voters can be disruptive oh those can be
61:33
a pain in the neck and disrupt dislodge
61:35
all these technocratic decisions if we
61:38
try to play down their own farts
61:39
possible first of all by making the two
61:41
parties about the same as they were
61:43
after 1900 basically both centrist
61:45
status in the word neither very
61:47
fanatical they’re both basically
61:49
progressive both in favor of the
61:52
corporate state big corporate capitalism
61:54
in a court so you see minimize our role
61:57
of voters by having both parties about
61:58
the same and that’s going to achieve
62:00
more or less and you also minimize the
62:05
amount of amount of the range of votes
62:07
for example part of the progressive
62:09
drive after nineteen hundreds of so for
62:12
short ballot movement in the only so
62:15
they see we used to vote up on every not
62:16
every or folks like 100 different you
62:18
have a ballot and you have 100 different
62:21
things you can vote on the idea of the
62:23
short ballot move the people don’t know
62:24
how to vote therefore you should limit
62:25
their voting bill the top of the ticket
62:27
governor what kind of governor call well
62:29
more or less this is an achieved you
62:32
know every rule of vote on anymore
62:33
and even now we can vote on judges and
62:37
they as a bureau technocratic trying to
62:39
get rid of that are always saying the
62:41
government the public is not qualified
62:43
to vote on judges therefore they
62:44
shouldn’t do it if judges should be
62:45
appointed by the poor Association
62:47
whatever the public should only vote for
62:48
the governor who
62:49
judges say this is a this is a doctrine
62:53
allegedly scientific dollar really is
62:55
it’s the limit to minimize the scope of
62:58
the public can have any choice at all
62:59
it’s true the judges are experts and the
63:02
public is in the other hand the judges
63:03
rule over the public publishing has some
63:05
kind of a role in picking the nashua
63:07
we’re choosing our rulers so to speak
63:10
it’s not just like choosing a lawyer or
63:12
engineer in the abstract so the short
63:16
ballot movement in the name of expanding
63:18
democracy in the name of giving the
63:19
public having the public a better choice
63:22
or something like that
63:23
essentially restricting democracy my
63:25
shortening the ballot another thing
63:30
happened was the arrival of super
63:33
Australian ballot before that this is by
63:39
1904 that the ballot was secret but with
63:42
what you did is you everybody
63:44
distributed their own ticket let’s say
63:46
the six candidates for a Norfolk each
63:48
candidate has own ticket his own color
63:50
let’s say again I’m running for governor
63:52
on the independent labor ticketless I
63:55
give you a green I distribute green
63:57
ticket you take whichever taking one put
63:59
it in that put it in the box though
64:02
there was no official ballot so the
64:05
Australian ballot that is a native
64:06
so-called reform the Eliminator that has
64:09
got the ballots and a supply only by the
64:11
government in other words the government
64:12
has a ballot like that and the
64:15
government restricts the number of names
64:17
on it so if you’re at a third party if
64:19
you’re a nice herb party and what trying
64:20
to get on the ballot a big headache
64:22
again on it has to take you know 10,000
64:25
signatures as efficient blah blah blah
64:26
Olli you didn’t have to get there was no
64:28
single ballot so this means a government
64:30
monopoly ballot and if I restrict voting
64:34
the two major basing the two major
64:35
parties very difficult for any third
64:37
party again honor how because because
64:40
the government since the government runs
64:41
the ballot decides who gets on it it
64:43
makes a decision as you know signatures
64:46
on land they try to raise it as much as
64:48
possible
64:48
each state is different yeah
64:51
now surname Alistair keeping keeping the
64:53
balance minimal other words a number of
64:54
main number shortening about me is
64:57
shorten a number of electoral officer
64:59
increasing number of appointed officer
65:01
okay there was shortening number
65:04
election in other words be in the old
65:08
days I say that value used to vote
65:10
probably used to vote on say 50
65:11
different 50 different jobs okay now
65:16
it’s only like five I all of us who are
65:18
now appointed by the governor of
65:19
whatever are the mayor something like
65:21
that
65:22
so you eliminate the anumber of elective
65:24
offices so you have a government athlete
65:28
ballot
65:29
you also have registration requirement
65:32
then we’re not ready facial registration
65:33
requirement the old lady the old days
65:34
everybody could vote wages you say yeah
65:37
my name is Aurora I live on a certain
65:39
address on your vote period you didn’t
65:40
have to go registration okay
65:42
registration came in as a liberal
65:44
attempt to restrict particularly neat
65:47
City voters when it’s example of New
65:50
York the first registration requirement
65:52
only for New York City rural rural
65:54
people upstate didn’t have the register
65:55
the ideas of restrict evil voters New
65:58
York City in the words ethnic liturgical
65:59
voters la mascota
66:01
there’s a part of the Lost Pius s move
66:03
not for domination the registration
66:07
requirements come in to reduce number of
66:09
votes voters remember remember I talked
66:13
about how the Republican is trying to
66:14
eliminate restrict the immigration this
66:16
is one way to do if you know under
66:17
strict immigration or strict the number
66:19
of people that vote our registration
66:21
requirement and also eliminate a lien
66:23
vote the old lazy aliens could vote
66:24
there’s no restrictions he didn’t have
66:27
to be citizen to vote of course this is
66:28
now eliminated so only citizens can vote
66:31
when they increase the amount of time
66:33
again you have to spend before you
66:34
become become a citizen all this is to
66:37
reduce the amount of voting only
66:39
citizens vote so this is the use of
66:46
deliberate attempts to restrict
66:47
Democratic choice from the ramscoop the
66:49
limited to make the ballot short you
66:52
have a monopoly ballot have registration
66:55
requirements eliminate alien vote voters
66:58
those are very cunning is at the same
67:00
time they claim they’re expanding
67:01
democracy by having punt the prime
67:04
as long as the session now have a client
67:07
s about this because it’s become pretty
67:08
obvious what’s happened the old days and
67:11
political parties are important okay the
67:14
political parties then chose their own
67:16
candidate Democrats Republicans whatever
67:18
and chosen either by convention or by
67:19
state committee vote and make different
67:21
so this meant that only a party activist
67:25
could vote on the party activists were
67:26
the ones with party members and activist
67:28
ones who chose the candidate the primary
67:30
system compulsory primaries which is a
67:34
progressive move allegedly to expand
67:36
American democracy and now especially
67:38
have primary for everything this is
67:41
supposed to make everything much more
67:42
democratic but it really doesn’t because
67:44
it means of the neh Mogan voters ever
67:47
kind of Republican ticket you only have
67:48
to sign up as a Democratic Republic
67:49
announcing your actual actual activist
67:51
member so this means anybody can get the
67:54
nomination means and means the
67:55
nomination is decided like five public
67:58
relations by PV as by money whatever it
68:00
is you don’t have to meet the role of a
68:02
party as such the parties as a mechanism
68:05
for gathering collecting ideas and
68:08
principles gets eliminated and recording
68:10
the political parties now just a shell
68:12
Democrats or Republicans party don’t
68:14
mean anything is global cuz of the
68:15
culture a primary system it’s all up for
68:18
grabs and this is now admitted by most
68:20
liberal kind of said he’s a turbo thing
68:22
facing it all came in the nineteen
68:24
sixties it really started coming in 1900
68:26
with a progressive vote primary concept
68:29
this is deliberately done to destroy the
68:33
role of the political party as an
68:35
ideological book gathering movement in
68:38
other words of the group which means
68:39
something the idea is to make the
68:41
party’s meaningless and give her a leave
68:43
a power vacuum for technocrats
68:45
and progressive so-called non non
68:48
partisan sciences his all accomplished
68:53
was goes on very cleverly the and one of
68:58
the things they try to do most of the
68:59
eliminate the Great War on the cities by
69:02
this time the city is almost all ethnic
69:05
over the cities are mostly liturgical
69:07
mostly Irish a Netanya and polish
69:10
etcetera and the rural areas mostly walk
69:12
getting them out of the point
69:15
which is more more true and so the big
69:17
cities become a focus of attack by lost
69:20
classes as the simple per se the nests
69:24
of evil and thin the whole world
69:27
Ursula’s urban thing really comes in
69:28
about this time as an attack on urban
69:31
ethnic and one of the things which come
69:34
most important now again for for wasp
69:37
rises its massive saloon at prohibition
69:40
to eliminate the saloon as a political
69:42
and a political power of s Inc I think
69:45
politics since most ethnic both the
69:50
Italian Irish cetera Catholic people the
69:57
neighborhood saloon still is the focus
69:59
of politics and what most of the
70:01
socializing it’s on the saloon and the
70:04
saloon keeper becomes a major award
70:06
he’ll in terms of political power I ask
70:09
you to vote for if you outlaw that you
70:11
can out me to smash
70:13
I think fashion of the surgical politics
70:17
so prohibition gets restored now as a
70:20
big guy you know as a big objective
70:26
another thing to do is to try to
70:28
eliminate City voting altogether
70:31
eliminate the mayor and put in the
70:34
non-political court on called city
70:36
manager this is a result is pretty
70:39
simple city manager movement City
70:42
Commission movement very powerful took
70:44
over most of the small city united
70:45
states it didn’t went out in New York or
70:47
Philadelphia voice of it
70:48
and most of the small cities Dayton Ohio
70:50
and most about Galveston Texas and now
70:52
have city managers the city manager gets
70:54
a high style rate the mayor gets almost
70:55
no salary
70:56
mega twenty bucks a year or something
70:59
but mayor that far is very little power
71:00
city managers in their full time their
71:02
own bureaucracy and their runs
71:03
everything to doing what mostly to his
71:05
own liking again this is the political
71:10
power by the bureaucrats by the
71:11
technocrat bureaucrat taking over from
71:13
the voters voters almost no saying this
71:16
anymore if you complete with women in
71:18
gray in direct
71:20
the other thing happens is the
71:21
naturalization of the public school
71:23
system public schools until about 1900
71:26
were essentially first of all they were
71:27
not compulsory assigning a wingwoman
71:29
Yankee area to the south
71:31
no compulsory attendance laws and second
71:35
of all the public school remember the
71:37
idea was published it was a Protestant
71:39
idea device if it comes in comes in even
71:40
much more now as progressives if you
71:43
can’t get the cat like adults can tell
71:45
you adults are hopeless and steep and
71:46
thin if we’re gets a kid Christianize
71:49
the Catholics are they cool you get to
71:51
force the kids another public school
71:52
system then follow some ties into the
71:54
public school so the big drive for
71:56
public school expansion of public
72:00
schools in New York of a savage myself
72:04
pulse rate public school attendance and
72:07
many most is an informal requirement and
72:09
most jurisdictions in order to be a
72:11
public school teach you how to be a
72:13
Protestant church member it’s not
72:15
official unofficial burned but just
72:16
through that court in San Francisco we
72:19
had a constant fight for 50 years
72:21
between the cast like something
72:23
Protestants and censors go to control
72:25
the public school system so the city in
72:28
general public school particular the and
72:32
the plan behind the public school
72:34
arrived with a wasp upper class and rot
72:36
upper classes those people and want many
72:40
places coincidental
72:43
so another thing about a public school
72:45
with you is you when you force Catholic
72:47
then do it Christian eyes on
72:49
quote-unquote until you use business
72:51
people began to use the public schools
72:53
as a device to socialize their corn
72:57
there’s an important form of subsidy we
72:59
have to realign one way in which the
73:02
government subsidizes business is by
73:03
socializing the course of business in
73:05
other words taking over some of the
73:06
course
73:07
loading out of the taxpayer for example
73:10
in a time of slavery in the South
73:11
slavery would not have been efficient
73:13
without an economic I should say because
73:15
one of the problems with savory is it
73:17
plays tend to run away you have a
73:18
problem stays running away you don’t
73:19
have a capital equipment packing
73:21
machines don’t decide to run away slaves
73:23
do so in order to get the in order to
73:26
minimize the course of enforcement the
73:27
slave masters loaded onto the shoulders
73:30
of the average white
73:31
taxpayer in the south by having
73:33
so-called play patrol play patrol draft
73:39
every every southerner was required to
73:42
to join a Seifert over two weeks out of
73:45
a year company slave patrols would
73:47
patrol the highway the roads at night
73:48
and catch slaves runaway slave patrol
73:51
like five people in the Patrol
73:52
every black person has to have a benefit
73:55
entity core something like South Africa
73:56
and we would never have an ID card this
73:59
case from your master telling you where
74:00
to go allowing you’re going to kill a
74:03
road you didn’t have an ID carving
74:04
master you’re immediately seized buddy
74:06
if they didn’t know who your slave
74:08
master was play fort old people were
74:10
drafted by all right okay but the way
74:13
they got their jollies was every once a
74:14
while they’d find a slave wouldn’t
74:16
didn’t have a ID card didn’t know the
74:17
play match wasn’t they would then own
74:19
the sleigh assume homestead ownership
74:21
oversight fell asleep at auction and get
74:23
the co see this is the way they got
74:25
their little woo parlor Luke so the same
74:29
way and since the same way that the
74:31
slave masters Regulus the loads of slave
74:33
patrol cost on the hundred shoulders
74:35
early the average white person in the
74:37
south the same way public school system
74:40
socialite a lot of business costs for
74:42
example businessman began and want to
74:45
send a lot of sales number South South
74:47
America they say wanting to get their
74:48
business going to learn Spanish well how
74:51
do they get the kids with gotta learn
74:52
Spanish either has a train in them solid
74:54
at their own court or off you get the
74:55
public school system a teacher
74:56
dispatcher up the house
74:57
loads of course out of the taxpayer so
74:59
the National Nami other business groups
75:02
again agitate the public schools should
75:04
teach Spanish so that then they can take
75:07
the guys already trained and Spanish
75:09
loading the court on the taxpayers of
75:11
amounts to
75:12
so with all listen dishes if you have
75:15
the education professional educationist
75:18
who john doing and other so-called
75:20
progressives we’re talking about a new
75:23
theory progressive education every
75:25
individual instead of becoming
75:26
individual because learns to be part of
75:28
a group part of a collective to the
75:30
state and sits into the collective and
75:32
this supports student very well it’s new
75:34
kind of progressive doctrine sit-ins on
75:36
the collective whatever it is government
75:37
or business agency we’re not causing any
75:39
trouble the holy have a whole municipal
75:43
reform movement
75:46
the public school movement by the way in
75:47
the old days probably school used to be
75:49
decentralized the school boards were
75:51
voted on by each neighborhood the
75:53
parents of each neighborhood they would
75:55
vote for the school boy in that
75:56
neighborhood this is a general way in
75:57
which most schools are operated this is
76:00
the city inefficient on to democratic
76:02
how much in control of a parent the
76:05
theory of aggressive educators was only
76:06
education is know how to teach your kids
76:08
parents oh nothing education is know
76:09
everything they got a PhD in education
76:11
teachers comments okay so you have a
76:15
total grant from power on the part of
76:16
educationist and in part of the graphic
76:19
power ones that you minimize the voting
76:21
procedure first of all we have huge
76:23
school board covering the whole city
76:25
right and their school board hopefully
76:28
appointed by the superintendent of
76:29
school or point about a mayor that
76:32
excuse me a super-dense eliminates the
76:35
parents role altogether in other words
76:36
the whole idea was a huge district where
76:40
parents wouldn’t know who the who the
76:41
administrators are anyway and have them
76:43
of the mayor may have to like the mayor
76:45
no way again around that but you have
76:47
everything then appointed by the mayor
76:48
and Mayor point the superintendent
76:50
school board what everything becomes a
76:52
cozy technocratic saying with the
76:54
parents having notice that we’re saying
76:55
a matter this is versus what happened
76:57
after 1900 progressive situation in 1960
77:02
is a slight movement away from this and
77:04
the whole new left period really New
77:07
York for example we now have regional
77:08
school parent elections with a
77:10
tremendous after tremendous the blockage
77:13
of her tremendous opposition by the
77:15
trench teacher humans were battling this
77:17
to the hill but any rate this is an
77:21
ideological driver name is support line
77:23
you free science value education the
77:25
grant control the kids I’m a part of the
77:28
educational educationist or in will
77:31
upper class lost Heights hoping hoping
77:33
citizen beautifully
77:37
also another thing about urban reform is
77:40
addition of city manager you make for
77:43
that for 1900 you had the the Ward
77:47
district an ample legislature in New
77:49
York City with a water-cooled bore of
77:51
Alderman and you had very a lot of each
77:54
small neighborhood our government you
77:56
have like 400 people on board Walden
77:58
means that everybody more or less knew
77:59
their older money we have a certain
78:01
amount of democratic check on a
78:03
situation you can pressure on your older
78:05
mode or you know who he was you put
78:07
pressure on in order to take power out
78:09
of the hands of ethnic liturgical IRA
78:12
search onions but for ethnic and the
78:15
name of so-called efficiency the
78:16
progressives then change all that to
78:18
make very very small City Council but a
78:22
foreigner of people you have twenty
78:24
people if you reduce that you run them
78:27
preferably at large for the whole city
78:29
but nobody knows principal nobody knows
78:31
any he represented them the second of
78:32
all it’s very costly to run an at-large
78:34
election need to run for whole New York
78:37
or whole San Francisco cost a lot of
78:39
money has to be quite wealthy or how
78:40
wealthy backers do it run from you know
78:43
East Bay orig course very little and
78:45
runs from the whole city course a lot in
78:48
this way they deliberately got rid of
78:49
most of the working-class poor poor
78:51
working-class and ethnic supporters
78:53
wrestling administrators and shifter the
78:56
control of the city through a few
78:57
upper-class washed-up retires lost
78:59
businessmen this is all done the liberal
79:02
a little as well as I’ll quote a few
79:03
things that Weinstein has a lot of this
79:05
and our other other sources are
79:08
interested the there’s all sorts of data
79:15
on this thing this was done in
79:16
Pittsburgh in the morning separately
79:18
their data about how originally say
79:20
Pittsburgh had a lot of working-class
79:22
aldermen and they shift this thing it
79:24
wind up with a few upper class business
79:27
than upper class positions as the in the
79:31
main again of efficiency
79:37
so this is done in Rochester George
79:40
Eastman does it sets up a recent Kodak
79:43
sets up a Bureau of mystical research
79:45
native so-called good government
79:48
business like efficiency it’s all done
79:51
in order to get the shifts the political
79:52
power the liturgical working class
79:55
liturgical and liturgical machine to
79:57
upper classes lost businessmen it all
80:01
especially the ethnic and the economic
80:04
Olson in the Pittsburgh for example the
80:10
the dry for civil reform a web by the
80:13
Civic club and the voters League which
80:15
will both upper-class wash groups and
80:18
potentially businessmen bankers
80:20
corporate officials and their wives and
80:22
physicians usually one or two kept
80:24
positions in this group will come in as
80:29
allies
80:32
so in general before the progressive
80:34
reforms cities would be centralized
80:36
there were considerations of local wards
80:38
they were quite democratic there were
80:41
local working class representatives and
80:43
middle-class representatives and
80:45
Pittsburgh for example 1910 before the
80:47
reform period the City Council’s
80:50
assistance of the 300 members or so
80:53
which two-thirds were small business
80:55
center workers in other words two-thirds
80:57
we don’t toy clerks laborers or Roasters
81:00
and things like that after the reform
81:02
movement took over
81:04
you have almost all of big businessmen
81:07
professional managers wash pipes the the
81:14
all sorts of data on this deal loads to
81:18
have a in City after City Pittsburgh and
81:19
Galveston and Dayton etcetera etcetera
81:21
in Pittsburgh they didn’t want many of
81:24
these cities didn’t want to have a city
81:25
manager city manager reform what they
81:29
did is a safety and the United States
81:31
you have to realizes the cities are a
81:32
pure tool to State and constitutionally
81:34
state has total power with every city
81:37
within the state so in Pennsylvania for
81:40
example and Pittsburgh resisted the idea
81:41
this progressive reform of Pennsylvania
81:43
legislature simply ordered Pittsburgh to
81:45
do it they just took over preferring
81:46
seized its berth kicked out the mayor
81:48
picked out a school board putting their
81:49
own people so for example a Pittsburgh
81:54
got dominated by a new governor simply
81:56
appointed kicked out of City Council
81:58
appointed a new City Council based on at
82:01
large voting and of the nine people in
82:03
it they had six upper-class businessmen
82:06
and to upper-class doctors and one kept
82:09
union official and a schoolboy they
82:11
appointed state appointed in order to
82:13
change this whole school board play they
82:15
again has tended big businessman one
82:18
upper class doctor and one kept union
82:20
official so totally different from the
82:23
way have been elected before that the
82:29
now one of the one of the ways in which
82:31
they did this they one of the areas of
82:35
agitation so for corruption reform
82:38
versus corruption and so one thing we
82:46
have to realize is the most this is
82:48
really an ideological it was an
82:51
ideological attack on the big business
82:53
on the big city machines your poker
82:55
oblong quote actually there no more
82:57
cross than others just more visible I
83:00
mean for example if some small-time
83:03
upstate New Yorker corrupt the three
83:05
small New York City’s robbers we’ve seen
83:07
recently excuse me hundreds of hundreds
83:09
of millions of dollars gets good at
83:10
siphon off so big city corruptions move
83:14
visible and it also it’s more it’s more
83:18
visible another sin see the guys who are
83:20
doing it if you have a reform group you
83:23
give a business a contract
83:25
above course it’s less visible and say
83:28
somebody on Linden our just taking money
83:30
has a tilt more raffish in a case it
83:32
wouldn’t work it’s more visible to see
83:35
let’s let’s let’s move on it that way so
83:39
we have then as the use of other
83:41
reformers of the corruption charge much
83:43
of which is I think ill well misfiring
83:47
example in the or and this is a big
83:51
business machines in nineteen hundreds
83:53
of so instead of having a big welfare
83:54
system a lot of poor people more poor
83:56
people you have NASA fortunately didn’t
83:58
have any welfare state what you had was
84:00
how many whole I’m saying
84:02
the New York Manhattan Democratic Party
84:06
in a feminine Hall the way they would
84:08
they would take care of the poor as it
84:10
has like a private welfare mechanism by
84:11
the Louisville party structure in other
84:13
words Lee they give away free turkeys at
84:15
Christmas or Thanksgiving have big you
84:18
up take turkey dinners for the poor
84:20
handled by the Democratic Party local
84:22
Democratic Party kind of lovable this is
84:24
so you have a sort of private welfare
84:26
stay organized by the Democratic by the
84:28
Democratic Party this way of course they
84:30
buy the vote in other words the people
84:31
be grateful to the local Democratic
84:33
Party and both democratic and assess
84:35
there’s nothing much wrong with that
84:36
sort of like a tit for tat situation
84:39
with a six they fix traffic ticket I was
84:43
growing up for example easily a local
84:45
Democratic Club House person with six
84:47
average and also six URI service didn’t
84:50
want a jury summons he hands your local
84:52
Democratic leader he would quote take
84:54
care on quote maturity summer as I
84:57
suppose corruption was also helpful
84:58
corruption helpful czar the public it’s
85:00
getting the public affair neck and also
85:03
alleviating poverty many extent out of
85:05
her essentially non-governmental release
85:07
is not fun by the taxpayer under general
85:10
I guess from from government office so
85:13
it’s kind of a raffish kind of
85:14
corruption which is not not really is it
85:16
not really is unfortunate I think as a
85:18
non corrupted government to the speak it
85:21
was his worst things in the world on
85:22
corruption one of them is incorruptible
85:24
government and communist countries now
85:27
for example the only way they can
85:28
operate it always by having huge amount
85:29
of corruption by bribery and so forth
85:31
they didn’t have any library hopes the
85:33
whole country will fall apart I wouldn’t
85:34
be able to produce on a site so it’s a
85:36
question of which you which you choose
85:42
another thing they did was as a result
85:45
of the reform government that has huge
85:47
bit much bigger government pool of taxes
85:50
to have municipal garbage disposal
85:52
musical construction and sewers the
85:54
bridges contracts for businessmen and
85:59
much more money to play around with
86:01
welfare departments playgrounds all
86:04
these things now come in a so called non
86:06
corrupt reform government nor was
86:09
reformed government turns out to be much
86:10
bigger government than non reform I just
86:14
give you one quote before the break
86:15
yanmega and my favorite writer has a the
86:18
german-american growing up in Baltimore
86:20
a great story in his autobiography if
86:23
his attitude to reform he said was set
86:26
by and when his father was a small cigar
86:28
manufacturer in Baltimore had an
86:30
experience of corruption and corruption
86:31
in court reform unquote he said his
86:36
father had had a had a cigar factory in
86:39
Baltimore he hung out a sign 1985
86:41
outside of factory saying August making
86:44
him brothers he called in his club City
86:46
Councilman so-called Rob City colonies
86:48
are look here’s 20 bucks the 20 bucks
86:50
you keep the government offline next
86:52
forever in other words the agreement was
86:53
you pay the city has 120 bucks in the
86:56
current for which you take care of all
86:58
easements fees license requires all
87:00
records crap as mecca’s so this isn’t
87:03
full settlement forevermore a world
87:05
president privilege fees or permanent
87:07
privilege feeds easement taxes and other
87:09
such costs and and posts the city
87:11
councilmen pocketed the money in return
87:13
was supposed to stave off any cops
87:15
building inspectors are other
87:17
functionaries when any lawful interest
87:19
in the matter or trying to hone in for
87:21
private profit
87:22
D an honorable man according to his
87:24
likes he at least a city councilman kept
87:26
his bargain and a science lapis
87:28
squeaking the breeze for 10 years it was
87:30
1985 1895 making one company is free of
87:34
all or government fees to the city
87:36
councilman pocketed 20 bucks and kept
87:38
the government author of his neck then
87:40
he says in 1895 a reform wave struck
87:43
Baltimore and their former came in the
87:46
City Council was kicked out and quoting
87:49
the idealist in a City Hall sent were
87:51
the license to maintain the sign of
87:53
course 52 dollars and 75 cents a year
87:55
there was he is paid 20 bucks for 10
87:58
years doesn’t mean not cost 50 to 75 a
88:01
year this is proof demise the sign came
88:04
down the next day this was true to my
88:07
father reform was mainly only a
88:09
conspiracy a prehensile charlatan with
88:11
the bulk of taxpayer and
88:13
Meghan says that and he believed that
88:16
political corruption was inevitable
88:17
under democracy and was even argue about
88:19
his own experience that had its uses
88:21
so anyway this is Megan’s views or for
88:24
movement I think he was right then the
88:26
urban reform front is the is the system
88:31
the cities Worcester Ottoman minority
88:33
after all and liturgical is and
88:35
working-class or majority the way in
88:39
which the Reformers which is almost
88:40
almost almost always upper-class watch
88:43
the way they can went out from time to
88:45
time by using moral arguments by saying
88:48
as the big city machines corrupt their
88:51
boss ridden sure that cross invoice
88:53
render things worse than boss word and
88:55
corruption namely reformer and alleged
88:59
efficiency which really winds up with
89:00
with tremendous Turner’s Turner’s to
89:03
increase raised on a taxpayer plus of
89:06
course biases elimination or wiping out
89:09
of entrepreneurial activities like
89:11
gambling prostitution etc so one of the
89:15
things which performers you love their
89:17
moral arguments is attacking organized
89:18
so-called organized crime and has been
89:20
is a very interesting article in journal
89:22
League America history I recommend in
89:25
December 1970 called urban crime and
89:27
criminal justice in Chicago case which
89:29
really deals with how the whole class
89:31
class struggle around organized crime
89:34
with the reformers using Lea court the
89:36
argument of the essay essay boy loser
89:39
and legal organized crime and using this
89:44
as an argument to take big corporates of
89:47
control over the city
89:48
this turns Africa’s having a legal
89:51
profession a corporate lawyers a big
89:53
class shuttle within a corporate lawyers
89:55
a criminal lawyer
89:59
look the corporate lawyers of course the
90:01
elite and the law legal profession they
90:03
make a lot more money then Wall Street
90:06
law firm the criminal lawyer kind of the
90:08
less polished their their raffish types
90:12
often a book one and they’re and they’re
90:15
they’re less than there are less and
90:17
what’s suave etcetera there at anchors
90:19
means so affiliate organized crime where
90:22
everybody’s a high-level lawyer so
90:24
somebody’s as a criminal up for
90:25
indictment
90:26
we’re going to turn to some lawyer
90:28
rather and and criminal law is therefore
90:31
often par with a brush of being quasi
90:33
criminal themselves
90:34
everybody’s entitled some lawyer and so
90:37
but there there’s a as a matter of fact
90:39
is now a drive-on by the legal
90:42
professional limit they see the criminal
90:44
lawyers get who were cap of course
90:49
they’re not putting any cap on corporate
90:50
lawyers it’s a little cool part of this
90:53
class struggle so to speak is mean walk
90:55
business corporate types and and more
90:57
raffish ethnic types there remember at
91:03
one point about 20 years ago Jacobs
91:04
pukes burger distinguish criminal lawyer
91:07
in New York ran for state court of
91:09
appeals the highest New York state
91:11
judicial arm and it’s literally attacked
91:13
by the entire corporate world
91:14
professional very obsessively the
91:16
criminal lawyer is no businessman I mean
91:19
the court of appeals fee which always be
91:20
corporate Wall Street lawyers well
91:21
nothing those divine commandment as the
91:24
corporate beware but there’s a big big
91:26
fight against and one of the one of the
91:27
ways in which the watch performers have
91:30
their can use their moral as a media
91:33
important media usually of course
91:34
watched control and so what you have
91:37
then in the cities New York Chicago at
91:39
set or whatever their formers are pushed
91:43
by the New York Times let’s say which is
91:44
it which is not want that is adorable
91:46
former Aspen and so you have then
91:49
prestige a respectable newspaper behind
91:53
the Reformers in New York for example
91:55
which is largely a Democratic Party
91:57
hoodie was run by a reformed fusion
92:00
tickets for bat order in 1930s mayor
92:02
LaGuardia was a collective a Republican
92:05
fusion government fusion party and
92:10
coming in on the way mystical reform the
92:18
to get get even get even more more
92:22
ethnic here as interesting as the
92:24
italian-american for example raising
92:26
it’s been very difficult to make it
92:28
politically it so very very recent like
92:29
fortress with como
92:31
before that in New York State the only
92:33
Italian Americans who succeeded to
92:36
everywhere were Protestant as Tonya
92:38
there’s a very very small percentage of
92:40
Italian American population is
92:41
Protestant you can imagine to be one
92:43
percent
92:44
from house immediately disease the
92:46
Italians Americans and politics have
92:48
made it politically until very recently
92:50
Rapala see of LaGuardia and pakora
92:55
people like that who are really hope
92:57
honey process therefore coming very
92:58
small percentage riparian population not
93:00
really in with basic Italian Americans
93:04
so of course we’re Catholic so again
93:08
this is all part of a walk versus
93:09
Catholic and high Lutheran struggle the
93:21
and again an attack six City machines
93:24
were basically Irish I said after 1900
93:27
or so ever costing blocks were kicked
93:29
out and so you had basically a old
93:32
Calvinist law basically has an City
93:34
machine you’re Irish and so an attack on
93:37
the big city boys especially with an
93:38
anti Irish or anti-catholic assault in
93:41
the name of so-called reform so what you
93:51
have then is the the Reformers are able
93:54
to capture the high moral ground and
93:55
very few people take a sophisticated
93:57
argument favor of corruption the
93:59
argument basically is a Menken argument
94:01
it’s better to be corrupt and have an
94:02
efficient high tax government the three
94:05
difficult make that argument and
94:06
basically so the reformers done have
94:09
these can use the media the press
94:10
etcetera making a taking a high moral
94:13
cone and attacking everybody off of
94:14
being in war especially their their view
94:17
also along with this comes up upper
94:20
class lost moral moral theorists so to
94:25
speak
94:26
upper-class females who start running
94:29
and I run around 1900 the social Social
94:31
Work movement social worker settlement
94:34
house movement Jane Addams people like
94:37
that who were whole bunch of a
94:40
philosopher former dean Anand Chicago
94:43
that’s low in New York and hold like a
94:45
gig of least diggin wheat housing all
94:48
these people were upper-class lost
94:51
millionaires and change announces a door
94:54
about the crash walk in there
94:55
coming into help of uplift the poor
94:58
don’t know those days uplift other words
95:01
he or you are upper-class females let’s
95:03
say coming in uplifting a Lower East
95:06
Side how do you uplift for pushing hand
95:08
out food and so forth basically the
95:10
uplift is also using compulsion forcing
95:13
kicking out getting rid of sweatshop
95:16
employers which really meant getting rid
95:18
of employer getting rid of conditions
95:20
they didn’t like any rid of prostitution
95:22
Co of saloons you wanted prohibition
95:25
comes in because the earliest people
95:26
were prohibition it and prohibition was
95:28
part of the idea of uplifting the
95:29
employee up with the poor bike by
95:31
stamping out immoral conditions your
95:34
mortgage issues meant liquor saloon
95:36
prostitution pornography or whatever so
95:40
all this is part of the moral of for
95:41
movement partly are of the progressive
95:44
seizure of power on local level another
95:50
way to do this this is known as urban
95:52
imperialism its company which is very
95:54
little-known brief I know only one book
95:57
that really mentions this at any length
95:59
looking Kotler will be called
96:01
neighborhood government one of the ways
96:03
in which the cities grew in this period
96:04
is my seizing power over the other areas
96:07
in other words as much of the urban
96:09
political growth urban population growth
96:12
from 1900 1910 was not grossen now by
96:16
people being born or people migrating
96:18
was Rosen a sense of seizing control
96:20
over my spanning a city geography in
96:23
other words originally in 1950 was
96:26
Manhattan and Brooklyn was its own City
96:29
actually Brooklyn was a combination a
96:31
whole bunch of different city by bush
96:33
New Dorp was originally city Brooklyn
96:36
was the fourth largest to the United
96:38
States in 1900 was seized by New York
96:40
New York Manhattan conquer and conquer
96:42
the Bronx by the time and seasons assess
96:45
compulsorily seizure Brooklyn does not
96:47
want to be amalgamated in New York the
96:49
New York Mets the New York State
96:50
Legislature New York State Legislature
96:51
for supplemental and the word face
96:53
legislation remember is all powerful and
96:55
so this happened to Philadelphia and
96:57
having a Pittsburgh where the cities
96:59
would just simply incorporate areas
97:00
other cities around it so lovely and
97:02
crushed Germantown sees germantown by
97:05
using a Pennsylvania legislature in
97:07
other words these cities Butler they’re
97:08
not want to be in court
97:09
New York Germantown is not want to be
97:11
incorporated into Philadelphia
97:13
it simply they use the state
97:14
legislatures to force these other cities
97:16
into it we cool urban imperialism over
97:19
its neighbors I think’s a good I said
97:21
what the heck a pretty good term here by
97:25
urban so what was the accomplishment
97:27
here what they did is you bring in more
97:29
tax revenue in other words many of these
97:31
areas for example in Pittsburgh which
97:34
grabbed a whole bunch of geography
97:37
neighboring cities worth more
97:41
these are the city the downtown for
97:44
example take Pittsburgh was built around
97:46
originally built around the railroad
97:48
terminus in other words who’s before the
97:51
river for automobiles came in and trucks
97:53
came in the city was you had a railroad
97:56
terminal and cities were built around he
97:57
had factories and people living there at
97:59
cetera so the dance has was heavily
98:02
indebted and with railroad bond so forth
98:04
subsidized railroad the paying heavy
98:06
taxes on these bonds if you grab a whole
98:09
bunch of other cities around it
98:10
incorporate it into Pittsburgh then you
98:12
can pack these guys to pay for the
98:13
railroad block so that you won’t happen
98:16
other words he use this downtown
98:18
interest that’s how a business center
98:20
heading up the extremism inner city sees
98:23
town the suburbs bring them into the
98:25
city and then tax book that’s the
98:27
basically the point assess these
98:29
buildings at a higher rates of what’s
98:31
going on
98:31
so especially New York is the same thing
98:33
that Brooklyn on a bra on the Bronx
98:35
which was really part of Westchester
98:39
so this happened a lot between 1900 1910
98:44
growth of urban imperialism it and next
98:47
neighboring towns neighboring cities
98:49
bringing into the tax base is that there
98:51
has been for many years now the
98:52
so-called Metro movement the idea is to
98:55
grab Westchester I was saying grab parts
98:57
of Nassau Forsman New York City impacts
98:59
them some was really just a tax gimmick
99:01
it’s bring these poor guys are into a
99:04
higher tax bracket and get get downtown
99:06
New York for the subsidy so
99:17
this process happened during the 19th
99:18
century but in this progressive period
99:20
of reaches its peak
99:30
so they deliberately sample pittsburgh
99:33
literally taxed the other wards much
99:34
more heavily on a downtown wart
99:36
much higher assessment per dollar
99:40
property on the outlying wards that they
99:42
were kind of take they were taking over
99:45
in Pittsburgh for example in 1912 after
99:48
the compulsory seizure of Allegheny and
99:51
other towns cooperating the Pittsburgh
99:54
the the old rate while one case both
99:59
Hooven which is a new town incorporated
100:01
the Pittsburgh of saying ninety times
100:03
the property assessment property tax and
100:05
the old third Rory old downtown’s very
100:07
work that’s of course very unusual using
100:09
not that big a range but basically it’s
100:11
what having to take the new wards detect
100:14
the more heavily on the old one and
100:15
everybody subsidized at that time
100:17
heavily this written downtown area
100:23
Brooklyn was annexed in 1898 by the of
100:27
New York City collaboration in New York
100:29
state legislature so for example
100:34
Pittsburgh grew from 1900 1910 grew from
100:38
a population of three hundred and twenty
100:42
thousand five hundred thirty thousand
100:44
largely by incorporating other areas not
100:45
by real growth doesn’t mean it really
100:47
grew young expensive clothes per mile
100:49
simply by taking incorporating other
100:52
region into Pittsburgh and as this
101:02
happens the city’s got larger and larger
101:03
methods a city as a City Council we’ve
101:06
got smaller members they’re being voted
101:07
on at large and school boards got
101:09
smaller and outlawed and measure the
101:11
Representatives per person got less and
101:14
less than where the cities got larger
101:15
the city of Council has got smaller
101:17
number and larger and representing more
101:20
people you want have a mess and less
101:22
democratic voting less and less fewer
101:24
and fewer government officials per
101:26
person and the City Council for example
101:28
in the Columbus Ohio
101:35
for example had in 1830s at one city
101:38
council member for every hundred people
101:39
they had 2,000 people in 20 city
101:42
councilmen so that’s and that’s the
101:44
situation everybody knew there obviously
101:47
knew their city councilmen come or let’s
101:49
rise heard overlooked Jimmy is goofing
101:52
up get them to change it vote pay him a
101:54
visit by the night by the current period
101:57
Columbus Ohio has a 500,000 people right
102:01
so the 20 cent I said a 2000 and has
102:05
nine City Council so you have you have
102:09
one one city councilman for every 50,000
102:13
people it’s better for every 20 20 feet
102:15
and every hundred the obviously have
102:19
much smaller representation per person
102:21
than you had before
102:30
anyway in the get back of the social
102:33
social work movement which becomes a
102:35
professional uplift movement 1909 I
102:37
think I agree with Jane Addams the
102:40
daughter of one of the richest men in
102:42
Illinois Mary Kingsley same way a whole
102:46
bunch of the lillian wall and 100 street
102:48
settlement and again bringing in
102:53
professional social work trying to stamp
102:55
out alleged immorality and making social
102:59
work from up from a charitable thing
103:00
into a professional into a profession
103:02
people living off of and most of the
103:07
gnudi many of the New Deal officials
103:08
1930s came out of this original book of
103:10
the Social Work movement most of the
103:12
women most of the women the dealers
103:14
example originally upper-class social
103:17
workers in the whole house settlement
103:20
house movement Eleanor Roosevelt was it
103:22
came out of that and Frances Perkins
103:24
that they a labor and a whole bunch of
103:26
others a point of the public school
103:36
reform movement was to also
103:39
run the whole kid in other words the
103:41
idea of school not just to Christianize
103:43
the calf like sand and yeah like white
103:51
beautiful yeah I was like yeah not much
104:06
I’m some yeah not much I really comes in
104:09
the 1930s well most of it was stolen
104:25
really comes in a 1932 warfare state and
104:27
then it was mostly a lot of stress
104:28
workmen’s compensation North Public
104:30
Works there was you know bullying sewers
104:33
up like that that’s too much
104:36
welfare city government welfare system
104:39
really comes in in the 30s not really
104:42
what level thirty is really extension
104:44
the New Deal is really extension a
104:45
progressive period really not a bigger
104:47
progressive period on a stuff similar a
104:50
similar system except working more of it
104:54
for America the again was a school the
105:00
the cry was take the school’s out of
105:01
politics you know would make it don’t
105:04
have people voting for school board have
105:06
an appointed by the mayor a professional
105:08
education is do it as one one historian
105:13
says the Reformers battlecry take the
105:15
school on a politics not only meant take
105:18
the school’s out of the hands of Tammany
105:19
Hall but also out of the hands the Roman
105:20
Catholic Church and the word the idea
105:22
was you make it into a Protestant izing
105:24
the right and taken out of the hands of
105:34
award blots and in their hands of the
105:35
technocratic educationist and also the
105:39
idea is you run the whole kid in other
105:41
words the education has had the idea the
105:43
whole kit should be molded by the money
105:44
professional educators and the lens of
105:48
the system malden how to conform and so
105:50
forth
105:50
so I would just let see what they did
105:52
also from this came the idea of reducing
105:55
the idea reducing content of the schools
105:57
and making it sort of a sort of general
105:59
socializing the right L would cover like
106:06
it was a major historian image of
106:09
Education a big educationist big
106:11
progressive educator some that all up in
106:14
1916 summed up the idea of school reform
106:16
and he said one of the important results
106:19
of this change from Ward representation
106:21
to election from the city at large is
106:23
that the inevitable representatives from
106:25
these poor Wars is eliminated
106:27
representation is eliminated and the
106:28
board comes to partake of the best
106:30
characteristics of the city as a whole
106:31
music work the upper-class our clients
106:33
biases what he calls a better elements
106:37
who is in who he said are the better
106:39
elements so now making up a school board
106:41
quote men who are successful in their
106:43
handling and large business undertakings
106:45
manufacturers merchant bankers
106:47
contractors and professional men of
106:49
large practice means forth doctors what
106:51
perhaps comes first there’s an open and
106:53
open and a recognition that the whole
106:55
idea of the school reforms to take over
106:57
these that control the schools from the
107:00
hands of the ethnic people with
107:01
representatives to the technocrats and
107:03
big businessmen and also to take these
107:09
new immigrants mostly Catholic and
107:10
homogenized them into becoming good
107:12
Protestants as far as possible of course
107:17
okay prohibition was a great example a
107:20
marvelous example of the of the
107:23
combination of the moral uplift to those
107:26
science to the very science technology
107:29
and smashing the ethnic politics with
107:32
purgable politics it will leave nice
107:35
combined in a drive of prohibition which
107:36
only four gets here in World War one but
107:39
the revs up during the progressive
107:41
period the businessmen think this big
107:48
businessman attack the idea of liquor as
107:50
quote a an enemy of efficiency in other
107:54
words workers the workers allowed to
107:55
drink they get drunk and they
107:57
absenteeism goes up eye closes Mike so
108:00
therefore you
108:01
if we prevent the workers from getting
108:03
drunk by eliminating alcohol will outlaw
108:05
alcohol you notice for example in
108:06
Disneyworld the deal for example the
108:09
best done worth of lost capitalism does
108:12
anymore if you ever been it is near
108:13
awesome magnificently wrong beautiful
108:15
Iran absolutely everything is private
108:17
for sewers a private feature private
108:19
everything works beautifully I mean if
108:21
the bathrooms are spic and span is gold
108:24
great however you can’t get any liquor
108:26
their liquor wonder around Disneyworld
108:29
for it forever yes
108:30
non-alcoholic punch because liquor of
108:33
course because focus all these people
108:35
still have a scientists view of somehow
108:36
liquor if you have liquor at all should
108:38
only be for the wealth of the wealthy of
108:40
the masses an option assume be allowed
108:42
to drink and so you can if you can you
108:44
can drink liquor by checking in a Disney
108:46
World Hotel there’s like we have a
108:48
cocktail at each this does have liquor
108:50
but the masses I mean the rest of us are
108:51
wandering around the streets there it
108:53
can’t get any liquor it’s great except
108:55
for that course is a real blight george
108:58
pullman had his own private the founder
109:00
of Pullman cars for the progressive
109:04
businessman he had he had his own City
109:07
Coleman Illinois now part of Chicago for
109:12
the workers the idea of the workers
109:13
lives there rent houses his workers
109:15
would live would live in Pullman
109:17
Illinois rent houses when his houses and
109:19
they they it was supposed to be very
109:22
well-planned city sort of a privately
109:23
planned city for his workers
109:25
unfortunately what happened was that
109:26
evening agent Pius s moral domination
109:29
these people in other words that the
109:31
Gestapo type checks raised on every home
109:33
make sure everybody walking around and
109:35
jet with jackets the men always wear
109:37
jackets at all times not being shirts
109:39
leave the prevent shirt sleeve firstly
109:42
to be raised on the porch he throwing up
109:44
busting on the home make sure
109:45
everybody’s got jackets on of course
109:48
there’s no liquor available no
109:49
pornography of course and no liquor was
109:51
available to all como no noise the
109:52
Masters began to get restless and edgy
109:55
as a result they sneak across the border
109:57
who free one of the names the caterer
109:59
Illinois to get liquor and all the other
110:02
simple the lights of big cities and the
110:05
famous strike a Pullman on the Pullman
110:07
railroad workers in 1890s basically
110:09
result of the living conditions getting
110:11
more and more edgy in Restless immoral
110:13
combination of those covers creep we’ve
110:15
got shape uh plus women shape them up so
110:19
he had then the moral out they have the
110:22
efficiency argument as workers shouldn’t
110:24
be allowed to drink as otherwise they
110:26
give everything they have absenteeism
110:27
the moral argument that liquor is sinful
110:32
and the example well in Walter
110:36
Rauschenbusch the famous social gospel
110:38
are the head of the social gospel
110:39
movement said quote the liquor
110:42
industries
110:42
1912 we wrote a book called
110:44
Christianizing a social order very
110:46
interesting title Christian ladies go to
110:47
order he said quote the ledger industry
110:50
is in a seeking of fasten on an angry
110:52
people a relic of barbarism which the a
110:54
weakened conscience and the scientific
110:56
into like of the world combining
110:57
combining to a condemned the awakened
111:00
moral conscience it gets like a
111:02
unscientific into like why should the
111:04
scientific I’d like as liquor is
111:05
unscientific liquor lease absentee is at
111:08
least a liver and trouble well yeah lots
111:10
of arguments against liquor
111:12
it makes slime right nowadays as a
111:14
return of prohibition sentiment you
111:16
drink liquor attempts to have railroad
111:18
car accident okay so therefore ban
111:21
liquor a people believe the conclusion
111:23
so there’s all you have this mighty
111:26
prohibitionist movement on religious
111:29
grounds and on so-called scientific rank
111:31
on the scientist we usually also watch
111:33
biases I was in the one hat with wasp
111:35
pyatters the other hand they were value
111:37
a free signs are saying which outlaw
111:38
liquor but liquor will lead to more
111:40
accidents and liver trouble and God
111:42
knows what and particularly it’s of
111:47
course with assault on German Lutheran
111:50
account and Catholic beer drinking and
111:52
and and this is fantastic clash over
111:56
beer the Germans loves beer and and beer
112:00
is what part of alcoholic beverages
112:02
fantastic clash over that Reverend
112:08
Josiah strong social gospel are
112:10
prominent social gospel person said of
112:12
1909 that high wages are bad because
112:16
they drink with them and acquire they
112:18
liquor habit before the workers have
112:20
evolved a more refined taste of a higher
112:21
civilization on the war
112:24
workers on ready for high wages yet
112:26
because of the drink maybe you have more
112:29
refined taste eventually I know what
112:30
they’d be doing replied sake can you
112:32
fake strong also a faculty called
112:35
personal liberty 1914 he said quote the
112:38
fascinating Chloe said personal liberty
112:40
is at last after many years of
112:43
progressivism first a little bit ease at
112:45
last and uncrowned dethrone king with no
112:48
one to do him reverence we are no longer
112:49
frightened by that ancient bogey
112:51
paternalism and government which of
112:53
course they have purged Elizabeth
112:54
packing for decade we affirm boldly it
112:57
is a business of government to be just
112:58
that fraternal nothing human can be
113:01
foreign to a true government unquote was
113:03
a functional government run everything
113:05
regularly everything Cobin everybody’s
113:07
life the scientific argument which went
113:12
along with the so-called scientific
113:14
arguments or liquor or prohibition is of
113:16
course it is the uplift and the poor now
113:20
being destroyed by liquor which is never
113:21
therefore outlaw it it has harmful
113:24
effects if people drink too much they in
113:25
liver trouble whatever and the and since
113:30
the court is a new so-called scientists
113:32
people determined by their environment
113:34
therefore we have to change the
113:35
environment how do you change the army
113:36
eliminate liquor because of it because
113:38
part of people in closed environment is
113:41
the ability to buy liquor
113:42
so all these pseudo scientific arguments
113:45
are being cooler than the kind of being
113:46
here plus the progressive sociologists
113:50
and social scientists like Edward a ross
113:52
are my least favorite people he was a
113:53
disciple of commons and Ely
113:56
Edward always were wrong part of
113:59
sociology and Racine Wisconsin also a
114:03
big racist we have to realize is
114:04
scientific allegedly scientific racism
114:06
not comes in here to progress as part of
114:08
the progressive movement all these
114:12
Wisconsin people how they believe that
114:14
non anglo-saxons or inferior races look
114:17
of course including at onions
114:20
cold Irish etc who are Catholic schools
114:24
has to fit in other races are inferior
114:28
it should be kept out of and should be
114:30
course not allowed to emigrate the
114:31
United States as part of the immigration
114:33
restriction movement was also an attack
114:34
on
114:35
Surgical now becomes gets a scientific
114:38
patina as being determined by biology by
114:41
social like their own especial volatile
114:43
biology the biology is now broad and is
114:45
allegedly scientific reason to happen to
114:48
eliminate immigration of catholic and
114:50
jews later reports of countries the ross
114:55
is one of the leading figures in this as
114:57
well as an advocating state control one
114:59
with everything the anomaly argument
115:03
that says is necessary for workers to be
115:04
sober if you allow them and drinks I’ll
115:06
have I’ll be absolutely absent more and
115:10
another thing is that the the drive for
115:12
prohibition came about because the
115:13
railroad are getting to be liable
115:16
liability laws are coming in with
115:17
railroads are liable for for accidents
115:20
by in caused by their engineers or
115:22
Pharma or whatever but be a switchman
115:23
young which has a long switching have an
115:25
accident
115:26
the railroads became liable the
115:28
railroads now wanted to sort of past
115:30
making rules that their their engineers
115:32
or whatever can’t drink even off-duty
115:34
it’s like pilots now can drink I think
115:36
twelve hours before they explore
115:38
something that sort of thing they storm
115:40
the railroads Deanna stand forth
115:43
temperance on their own employees and
115:44
then of course they said we’ll look for
115:46
work we have kept roads voluntarily
115:47
let’s get the government to pass
115:49
compulsory tempers raw competitors so
115:52
therefore they start agitating for
115:56
prohibition another group of favor of
115:59
prohibition my kid you not was was the
116:06
it was a coca-cola coca-cola when those
116:09
days had the big competitor alcohol has
116:13
some cocaine in it that by the way was
116:14
the we are gonna would cook often
116:17
cocoliche a little bit of cocaine in it
116:20
and which finally gave you a certain
116:22
kick it’s now it disappears once it’s in
116:26
the formula so Coby the coca-cola big
116:28
competitors of liquor coca-cola was one
116:31
of my educators for prohibition the
116:32
outlaw your competitor
116:33
these people have turn to coke
116:35
forgetting the missing kick another big
116:40
lobbyists a favorite prohibition was
116:42
vote in grape juice
116:43
your horse came in a communion wine was
116:46
outlawed the people they turn the pulse
116:49
rate to by the way great juice most
116:51
Protestant churches already had workers
116:53
rape Jews early communion drink so looks
116:57
pictures big competitive the wine they
116:59
were lobbying for prohibition to
117:02
business prominent business lobbyists
117:03
for prohibition eliminate their
117:05
competition
117:08
the Catholics of course and Lutheran’s
117:13
are heavily Against Prohibition a
117:15
Catholic businessmen like DuPont who are
117:16
leading the fight against prohibition go
117:18
and work during the 1930s the unions are
117:23
sort of split they didn’t know what to
117:24
do most unions were lost unions or
117:26
favorite publish socialist Union Knights
117:28
of Labor originally the railroad
117:31
Brotherhood’s my favorite prohibition
117:32
the other hand of course the brewery
117:34
workers were also unionized and they
117:36
were of course against local conviction
117:38
means their livelihood to be thinking
117:39
away from them Hillary and brewery
117:42
workers so the answer though was sort of
117:43
split they didn’t take an official
117:44
position on it because it had brewery
117:46
workers but they but most mostly most of
117:49
the Socialists in late and labor unions
117:50
people in favor of prohibition attacked
117:55
the liquor industry they took the usual
117:56
leftist line of somehow businessmen were
117:59
creating demand so people people wanted
118:02
liquor it wasn’t wasn’t there for us
118:04
because the evil businessmen were
118:05
supplying them with alcohol and so and
118:08
so therefore the liquor of you have to
118:09
attack the liquor lobby a social workers
118:16
of course were all in favor of
118:17
abolishing the saloon as give the agrees
118:19
a great quote from a prominent social
118:20
worker Paul Benjamin
118:22
wrote the survey magazine which one of
118:24
the big progressive publications in 1915
118:27
he said abolish the saloon quote and the
118:30
task of Americanizing the conglomerate
118:32
fallen population be lightened by 50%
118:35
uncle in other words them America IV
118:37
meaning making good products and saddle
118:39
book what I really meant it so again
118:42
it’s all part of the same same sort of
118:44
shtick and as the the war begins the
118:48
Caza is a World War one begins to loom
118:50
America begins to join the war effort
118:52
anti German hysteria becomes part of the
118:55
argument for prohibition
118:57
as we’ll see later the one of us one of
119:03
the great quotes was of the biggest
119:05
German ages in this country the most
119:07
important German agents are not spies
119:09
but their names are Schlitz Bush
119:12
Budweiser whatever passed Miller in
119:15
other words the German Brewers or
119:16
subverting American boys like running in
119:19
worldwide crypsis Franklin with beer the
119:22
anti-saloon League said quote the German
119:25
Brewers in this country have rendered
119:26
thousands of men inefficient that’s
119:28
crippling the Republican it’s war
119:29
against Russia militarily it wasn’t
119:32
quote so in other words the war the
119:35
entry to rule want to supply the final
119:36
push over the top the anti German
119:39
history and therefore the anti beer is
119:40
very along with it provided the
119:42
opportunity to get to for the Democratic
119:44
Party to impose probation notice we’ll
119:46
see Wilson by this time of course is a
119:49
progressive and and oddly enough
119:53
prohibition comes the United States as a
119:56
democratic maneuver during World War one
119:58
actually comes she was American boys
120:02
American soldiers had to be protected
120:04
from liquor and so by your prestige they
120:07
sort of made all bars off limits and so
120:10
forth and they saw well the best way to
120:11
do is eliminate liquor altogether by
120:12
outlawing it and making unconstitutional
120:15
but as a result of World War one liquor
120:17
becomes the kind of insane thing a
120:19
constitutional amendment saying old
120:21
liquor without law both the possession
120:23
and the sale and production of liquor
120:25
becomes unconstitutional and it’s
120:27
incredible it could even be a
120:28
constitutional amendment that’s where it
120:29
was as a result of World War one the one
120:32
prohibition has said yeah this is a
120:35
quote we have German enemies in this
120:37
country too and the worst of all German
120:40
enemies most treacherous most menacing
120:43
are patched slits blackened Millers with
120:45
a beer for the big beer manufacturers
120:47
okay this is well start next time by
120:51
talking about the way the medical
120:52
profession was screwed up by progressive
120:53
it okay

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