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Farmers in the South, West, and Midwest, however, were still building a major movement to escape from the control of banks and merchants lending them supplies at usurious rates; agricultural cooperatives—cooperative buying of supplies and machinery and marketing of produce—as well as cooperative stores, were the remedy to these conditions of virtual serfdom. While the movement was not dedicated to the formation of worker co-ops, in its own way it was at least as ambitious as the Knights of Labor had been. In the late 1880s and early 1890s it swept through southern and western states like a brushfire, even, in some places, bringing black and white farmers together in a unity of interest. Eventually this Farmers’ Alliance decided it had to enter politics in order to break the power of the banks; it formed a third party, the People’s Party, in 1892. The great depression of 1893 only spurred the movement on, and it won governorships in Kansas and Colorado. But in 1896 its leaders made a terrible strategic blunder in allying themselves with William Jennings Bryan of the Democratic party in his campaign for president. Bryan lost the election, and Populism lost its independent identity. The party fell apart; the Farmers’ Alliance collapsed; the movement died, and many of its cooperative associations disappeared. Thus, once again, the capitalists had managed to stomp out a threat to their rule.171 They were unable to get rid of all agricultural cooperatives, however, even with the help of the Sherman “Anti-Trust” Act of 1890.172 Nor, in fact, did big business desire to combat many of them, for instance the independent co-ops that coordinated buying and selling. Small farmers needed cooperatives in order to survive, whether their co-ops were independent or were affiliated with a movement like the Farmers’ Alliance or the Grange. The independent co-ops, moreover, were not necessarily opposed to the capitalist system, fitting into it quite well by cooperatively buying and selling, marketing, and reducing production costs. By 1921 there were 7374 agricultural co-ops, most of them in regional federations. According to the census of 1919, over 600,000 farmers were engaged in cooperative marketing or purchasing—and these figures did not include the many farmers who obtained insurance, irrigation, telephone, or other business services from cooperatives.173

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This was clear less than thirty minutes into the speech, when—as I debunked the phony claim that the bill would insure undocumented immigrants—a relatively obscure five-term Republican congressman from South Carolina named Joe Wilson leaned forward in his seat, pointed in my direction, and shouted, his face flushed with fury, “You lie!” For the briefest second, a stunned silence fell over the chamber. I turned to look for the heckler (as did Speaker Pelosi and Joe Biden, Nancy aghast and Joe shaking his head). I was tempted to exit my perch, make my way down the aisle, and smack the guy in the head. Instead, I simply responded by saying “It’s not true” and then carried on with my speech as Democrats hurled boos in Wilson’s direction. As far as anyone could remember, nothing like that had ever happened before a joint session address—at least not in modern times. Congressional criticism was swift and bipartisan, and by the next morning Wilson had apologized publicly for the breach of decorum, calling Rahm and asking that his regrets get passed on to me as well. I downplayed the matter, telling a reporter that I appreciated the apology and was a big believer that we all make mistakes. And yet I couldn’t help noticing the news reports saying that online contributions to Wilson’s reelection campaign spiked sharply in the week following his outburst. Apparently, for a lot of Republican voters out there, he was a hero, speaking truth to power. It was an indication that the Tea Party and its media allies had accomplished more than just their goal of demonizing the healthcare bill. They had demonized me and, in doing so, had delivered a message to all Republican officeholders: When it came to opposing my administration, the old rules no longer applied. —

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(The term “sheep-dipped” appears in The New York Times version of the Pentagon Papers without clarification. It is an intricate Army-devised process by which a man who is in the service as a full career soldier or officer agrees to go through all the legal and official motions of resigning from the service. Then, rather than actually being released, his records are pulled from the Army personnel files and transferred to a special Army intelligence file. Substitute but nonetheless real-appearing records are then processed, and the man “leaves” the service. He is encouraged to write to friends and give a cover reason why he got out. He goes to his bank and charge card services and changes his status to civilian, and does the hundreds of other official and personal things that any man would do if he really had gotten out of the service. Meanwhile, his real Army records are kept in secrecy, but not forgotten. If his contemporaries get promoted, he gets promoted. All of the things that can be done for his hidden records to keep him even with his peers are done. Some very real problems arise in the event he gets killed or captured as a prisoner. There are problems with insurance and with benefits his wife would receive had he remained in the service. At this point, sheep-dipping gets really complicated, and each case is handled quite separately.)

Unhorsing capitalism was never the New Deal’s intent anyway. Especially since the outset of the war, the regime had largely come to agreeable terms with big business interests. It shed most programmatic overtures to universalize the welfare state and extend it into areas like health and housing. Structural reconfigurations of power relations in the economy, long-term economic planning, and state ownership or management of capital investments (commonplace during the war) were all offensive to the new centers of the postwar policy making, what soon enough would be widely referred to as the Establishment. Moreover, the “welfare state,” for all the tears now shed over its near death, was in its origins in late-nineteenth-century Europe a creature of conservative elitists like Bismarck or David Lloyd George, and had been opposed by the left as a means of defusing working-class power and independence, a program installed without altering the basic configurations of wealth and political control. As the center of gravity shifted away from the Keynesian commonwealth toward what one historian has called “commercial Keynesianism” and another “the corporate commonwealth,” labor and its many allies among middle-class progressives and minorities found themselves fighting on less friendly terrain. If they could no longer hope to win in the political arena measures that would benefit all working people—like universal health insurance, for example—trade unions could pursue those objectives for their own members where they were most muscular, especially in core American industries like auto and steel. So the labor movement increasingly chose to create mini private welfare states.

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