A Rebirth Of The American Revolution?
Charles W. Kadlec, 11.08.10, 03:30 PM EST
The 2010 election may prove pivotal in restoring the liberty the Founders sought to protect through the Constitution.
Does the Republican landslide signal a rebirth of the American Revolution?
Or is it evidence of a volatile, impatient, if not somewhat irrational electorate?
The first possibility is the most intriguing--and far-reaching. A rebirth of the American Revolution would signal a turn away from the statism of the progressive movement and an embrace of individual liberty as the cornerstone of American society. That would imply a shift in economic policies that could usher in an extended period of prosperity and above-average gains for equity markets.
In my view, the electorate has been anything but volatile. The American people consistently have been voting for politicians who promise less government and more liberty, and firing those who either break their promise or advocate more government and less individual freedom, with growing conviction ever since the landslide election of Ronald Reagan in 1980.
The rise of Ross Perot and the defeat of George H.W. Bush in 1992, the Republican takeover of Congress in 1994, and the Democratic takeover of Congress in 2006 are all representative of this growing impulse to restrain the growth of government. The 2010 election results, fueled in part by the spontaneous rise of the Tea Party movement, was just the latest, if not the most resounding effort by the American people to deliver this message to their elected representatives.
This interpretation of the election results is corroborated by a poll conducted days before the election and commissioned by FreedomWorks. Forty-four percent of those polled said they planned to vote for the Republican Congressional candidate, 42% for the Democrat, 10% undecided and 4% said none of these.
In spite of this political balance:
70% said they supported balancing the budget through meaningful spending reductions;
69% supported eliminating earmarks and wasteful spending;
61% supported preventing looming tax increases on all Americans
60% supported instilling constitutionally accountable government
54% supported rolling back and replacing the government takeover of health care.
To understand the implications and challenges of a rebirth of the American Revolution for our times, we must first understand and acknowledge its defining premise: that a free people are capable of ruling themselves.
This basic premise propelled the formation of a republican form of government. But, it also applied to a deeper and truly radical claim--that individuals could be trusted to manage their affairs through voluntary exchanges and the creation of voluntary organizations with no intermediation by government officials.
The declaration that "all men are created equal, and that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness," turned the known political world of monarchy, hierarchy and privilege in which subjects existed to serve the state upside down. As Gordon S. Wood makes clear in his book, The Radicalism of the American Revolution, the American Revolution "… destroyed aristocracy as it had been understood in the Western world for at least two millennia. Moreover, it brought respect to the dignity of the individual, and honored their work, no matter how menial."
In this context, the modern liberal and the progressive movements can be considered a counter-revolutionary force. The leaders of these movements have pursued the use of government power to protect individuals from poor decisions and to intermediate between them and businesses. In the process, they have necessarily empowered government bureaucrats to intrude in ever more ways into the day-to-day lives of the average American. For example, the Institute for Justice reports that today more than 1 in 3 Americans need the government's approval to do their job. In the 1950s only 1 in 20 needed a government license.
The result has been to recreate the hierarchal order of old, but one in which the role of the ancient aristocrat is assumed by the modern intellectual. Driven by the power motive, these individuals seek elected or bureaucratic office or influence through their advisory roles. The ever expanding number of regulations and agencies reflects their position that individuals cannot be trusted to manage their own affairs or cope with the social challenges through voluntary organizations. The inevitable consequence is that individual liberties have to be subordinated to the collective good, as determined by whoever happens to be in power. Mandates and regulations imposed from above, rather than persuasion and voluntary action, have become the preferred approach to addressing society's imperfections.
The aristocratic arrogance inherent in this approach was captured when President Obama offered his "view from the Oval Office" to a room full of donors in the week before the election. He said, "Part of the reason that our politics seems so tough right now and facts and science and argument does not seem to be winning the day all the time is because we're hardwired not to always think clearly when we're scared."
I am sure that kings, queens, dukes and earls down through the ages have shared the president's sentiments when, looking down on the unwashed masses from their respective castles, they felt misunderstood and unappreciated by their subjects.
A view that respects the premise that a free people can rule themselves is this: A majority of voters understood all too well that the most rapid increase in discretionary federal spending in history and the piling up of debt had failed to produce a discernable economic benefit, and that they were voting against the promise of higher tax rates, job destroying regulations and loss of liberty that were to follow.
The 2010 election was also a rebellion against passage of a health care bill that mandates the purchase of a commercial product as a condition of being a lawful resident of the United States. Exit polls indicate that nearly half of those voting opposed this assertion of government power, which makes clear that those in power no longer consider the American people worthy of their liberty, but rather see them as subjects who must be cared for by those with the superior intelligence of the ruling class.
The post-election promises of the leadership of the Republican Party to stop all tax increases, to restore fiscal balance by reducing federal spending, and to repeal and replace ObamaCare are vital first steps in restoring the American Revolution. The nearly 20% rally in equity markets from their August lows that coincided with polls indicating a Republican landslide indicates these policies improve the outlook for economic growth.
If the 2010 election signals the rebirth of the American revolution, this rally may be just the next leg up in the an extended period of rising equity values driven by a surge in prosperity that began with the 1983 implementation of the Reagan reductions in tax rates.
The original American Revolution launched a commercial society like none that could even be imagined at the time of the nation's birth. From that time to the present boom in Asia, what we witness is that an increase in liberty is the most powerful social organization ever invented for the creation of prosperity. Wherever liberty is on the rise, prosperity follows.
Short-term risks remain, including an errant monetary policy that seeks to manage the economy by manipulating the value of the currency, and an increase in political support for protectionist trade policies. Longer term, there also are sure to be mistakes along the way. But guided by a trust in the people, and a renewed respect for the principles articulated in the Declaration of Independence and the principle of a government with limited and enumerated powers, the political process can find a path to increase step by step the liberty of the American people.
The progressive movement's successful efforts to breach the constitutional restraints on the federal government have been underway for a century. Restoration of the liberty the Founders sought to protect with the Constitution will not be realized in two years, or even two decades, and perhaps it will take 100 years.
The 2010 election may prove pivotal in that effort by showing the possibility that the American people, through their choice of elected officials and the manner in which they choose to conduct their day-to-day lives, may learn again the habits and virtues, and experience the dignity and well-being, of living in liberty.
Charles W. Kadlec is a seasoned observer of the political economy and founder of the Community of Liberty. He can be reached at charles.kadlec@communityofliberty.org.
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