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It is, at times, difficult to wade through all the subtle changes that haveoccurred in this country, particularly the truly drastic changes that took placeduring the 20th Century. The problem is that there is simply not much informationabout these subtle, but drastic and transformative changes that were implementedin our government and country but, there are hints.These hints can be found in various publications, documents and news sources fromthe period from the 1930's to our present day, but the interpretation of thesehints requires connecting dots that are not always apparent. One area inparticular went through a massive and relatively misunderstood metamorphosisbeginning in the 30's and today we remain trapped by those changes in the veryfoundational structure of our economic system.It was, without a doubt, a revolution; one that completely overturned the orderand role of our government in our lives. This revolution came in the form on acomplete economic transformation that promoted the intervention of government intothe markets, but that was just part of the story; for this transformation allowedthe government to expand its ability to intervene into every area of the lives ofthe American People.Under the cloak of saving free market capitalism this revolution subverted thevery foundations of the free market and throughout the process it has beeninstrumental in subverting the Constitutional foundation of individual freedomwithin this country. The Great Depression opened the door to the imagination ofeconomists and politicians; since that time it has run wild.The government came to the rescue during the 1930's and has been in the rescuebusiness ever since. What the American People didn't know was the heavy price ofthat rescue; most are still unaware of the actual price that they have paid sincethe government came to the rescue or the price they continue to pay. They say thatnothing is free and that has never been as true as what we have been wooed torelinquish in return for what is purported to be economic security.We look at what occurred during the 30's and think that the government onlyintervened in the markets, banks and industry, but the truth is that this was onlya portion of the rescue plan that revolutionized the foundational economic andpolitical principles of our country. The other part of this rescue plan involvedthe government playing a direct role regulating all income, savings, andinvestments and spending.Of course, we think we are in control of our income, our savings, spending andinvestments, but the reality is that the government has implemented controlsthrough various subsidies, taxation, as well as government ownerships andpartnerships in various sectors of the economy. Even wages and prices aremanipulated through this system of government management. For decades we have beenfed the line that we live under free market capitalism, but it is impossible tocompare what this government has done over the past three quarters of a centuryand believe that it remotely resembles free market capitalism or freedom, for thatmatter.With the goal of full employment and capacity production, this government began totake a path that would radically change the entire complexion of not only thepolitical economy, but the social economy of this country. In the process, thestructure of our government was also transformed into a system of bureaucraticadministration responsible for the management of this massive economic machinethey created. Once this system was created it could not be abandoned withoutmassive economic and social disruption, the political price for such disruptionwould simply be too high a price for the politicians to pay therefore, itcontinues. Of course, it is not without its benefits, but those who benefit are

not the working men and women of this country.In order to sugar-coat the reality of this massive management system thegovernment bureaucrats invented various labels such as "Compensatory Fiscal andMonetary Policy", it simply sounded much better than Government Managed Economy,but the name doesn't change the meaning. The drift into a socialized system ofeconomic, social and political management began during the 30's and the marchtoward a full-fledged, systematic socialistic government has continued unabated.Once implemented, the system became self-perpetuating.As J. Kenneth Galbraith said:"There is a widespread notion that one of the most primitive of modern ideologicalchoices is whether a government shall be Keynesian or not . . . no present orfuture administration really has the non-Keynesian choice."Regardless of which political party is in office, the nature of this politicaleconomic system, once it was implemented, became self-perpetuating. It moves thecountry toward a self-socializing form of government regardless of the desires ofthe People of this country and even our elected representatives. The revolution ineconomy thought during the 30's was far more than economic in nature; it was alsocompletely revolutionary in the political and social arenas as well.There should be no doubt as to the direction the Keynesian, Neo-Keynesian andPost-Keynesian ideologies are taking this country. As Paul A. Samuelson stated:“[Fascist Regimes] have often passed socialistic measures. This is not a paradoxat all, for fascism was (or is) a form of socialism similar to British socialism,or to the managed-currency, welfare state proposed by American Keynesians.”By the 1940's this revolution in "new economics" had infiltrated the universitiesof this country and permeated economic thinking to the point that all opposingviews were effectively rooted out of the higher educational system in thiscountry. A generation of economic students were completely indoctrinated in theessentials of this new economic catechism. By 1950, the majority of universitiesand professors were teaching this new economic doctrine, textbooks reflected theaccepted doctrine and the students were oblivious to just what they were beingtaught since it was the only accepted school of economic thought presented.The truth of the matter is that so-called new economic theory was not new at all,but a revival of core socialist patterns of economic thought that were formulatedduring the second half of the 1800's. This core socialist pattern involvedgovernment intervention into economic affairs that would gradually lead togovernment intervention into social affairs; the outcome of which would be atransformation of the entire political structure of the country.One of the ideas that arose from The Great Depression was the idea of "social-consumption expenditures", sounds innocuous enough until we understand what itmeans and the purposes behind such expenditures.Lawrence Klein, in his book "The Keynesian Revolution" provided the meaning andthe purpose behind such expenditures:"We need a non-profit institution like the government which can provide acomprehensive, minimum program of social security in order to reduce thepropensity to save. This program must cover the entire population, and it mustcover all those contingencies which cause people to save on a large scale for thefuture."

While maintaining the label of free-market capitalism and individual freedom thatis associated with it, we have a system that both confiscates and redistributesthe labor property of people in order to reduce savings. In a managed economy,savings is an anchor that weighs down the movement of the entire system of thispolitical economy. Under this managed system savings must either be drasticallyreduced or eliminated all together in order for other aspects of control to takeplace; it is easy to see that the reduction of savings in this country has beenachieved.Remember, the goal is worker productivity, full employment that allows the systemto continue maintain control, particularly social control; without it the flaws inthe system quickly become apparent. The focus therefore, is jobs; even the mostuseless jobs are considered vital to the entire complexion of the system. Tounderstand just how far this ideology goes the words of Theodore Morgan explainsthe extent that the government will take in order to maintain the system: ". . .even from the point of view of output, it is better to employ men in digging holesand filling them up than not to employ them at all; it is better to employ men tomake products which we thereupon dump in the middle of the ocean than to leavethem idle."Of course, all of this was seen during The Great Depression, the governmentfollowed the recommendations of Keynes to "do something". This rather strangeconcept can be found throughout the economic theories of those who espoused the"new economy". While it is apparent that those who follow such economic thoughtmust have considered their proposals and theories logical, the following exampleshould show just how irrational these people were, and still are: "Giving money toforeigners is a form of "investment," even though we get nothing in return. If wecould only export one of the printing presses used for the manufacture of FederalReserve Notes to, let us say, China, our foreign investment would be enormouslyhigher."Keynesian lunacy has run rampant in our country and still, to this very day,influences our government in ways that few understand. According to theseideologues, government spending, obviously of any type, stimulates privateemployment and economic stability, yet it is all financed through taxing orinflationary monetary policy which drains and strains the entire "private sector"within the mixed economy. As we have seen, this government, along with its partnerin managed finance: the Federal Reserve Bank, has effectively manufactured themonetary system needed to achieve the socialization of this country, without theuse of a fiat monetary system none of this would be possible. It is also a mistaketo believe that the Federal Reserve Banking system serves an economic purpose, itdoes not, its purpose is political in nature and the directors of the FederalReserve are completely faithful to the political trust of those who appointed themand the legislation that allows the bank to continue functioning in a politicalcapacity that promotes very specific socio-economic agendas.Those who followed Keynes were well aware that sound money had to be destroyedotherwise there would simply be no way to implement the complete core socialistpattern in this country. The various proposals of Keynes and his subsequentdisciples, who advocated "compensatory fiscal and monetary policies", byimplication, necessitated the abandonment of sound money and this was accomplishedby the introduction of inconvertible currency. Once the currency becameinconvertible it was merely a formality to then create a total fiat system, whichwas accomplished in 1971. As Nixon said when he cut all ties between the U.S.Federal Reserve Note [once known as the Dollar] and gold: "We are all Keynesiansnow!"Of course, Keynes was well aware of the dangers of fiat currency, so too have his

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The Keynesian Continuum and the Destruction of Liberty

Keynesian Economics is perhaps one of the most destructive forms of economic theories. Once implemented, it is necessary for the government to continually intervene in the econo... (More)

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