Nixon Economy Quotes

If children of 5 are not taught to obey orders, sit still for 7 hours a day, respect their teacher, and raise their hands when they have to go to the bathroom, how will they learn (after 17 more years of education) to become the respectful clerks, technicians and soldiers who keep our society free, our economy strong, and such inspiring men as Richard Nixon and Deane Davis in political office.

Almost as an article of faith, some individuals believe that conspiracies are either kooky fantasies or unimportant aberrations. To be sure, wacko conspiracy theories do exist. There are people who believe that the United States has been invaded by a secret United Nations army equipped with black helicopters, or that the country is secretly controlled by Jews or gays or feminists or black nationalists or communists or extraterrestrial aliens. But it does not logically follow that all conspiracies are imaginary. Conspiracy is a legitimate concept in law: the collusion of two or more people pursuing illegal means to effect some illegal or immoral end. People go to jail for committing conspiratorial acts. Conspiracies are a matter of public record, and some are of real political significance. The Watergate break-in was a conspiracy, as was the Watergate cover-up, which led to Nixon’s downfall. Iran-contra was a conspiracy of immense scope, much of it still uncovered. The savings and loan scandal was described by the Justice Department as “a thousand conspiracies of fraud, theft, and bribery,” the greatest financial crime in history. Often the term “conspiracy” is applied dismissively whenever one suggests that people who occupy positions of political and economic power are consciously dedicated to advancing their elite interests. Even when they openly profess their designs, there are those who deny that intent is involved. In 1994, the officers of the Federal Reserve announced they would pursue monetary policies designed to maintain a high level of unemployment in order to safeguard against “overheating” the economy. Like any creditor class, they preferred a deflationary course. When an acquaintance of mine mentioned this to friends, he was greeted skeptically, “Do you think the Fed bankers are deliberately trying to keep people unemployed?” In fact, not only did he think it, it was announced on the financial pages of the press. Still, his friends assumed he was imagining a conspiracy because he ascribed self-interested collusion to powerful people. At a World Affairs Council meeting in San Francisco, I remarked to a participant that U.S. leaders were pushing hard for the reinstatement of capitalism in the former communist countries. He said, “Do you really think they carry it to that level of conscious intent?” I pointed out it was not a conjecture on my part. They have repeatedly announced their commitment to seeing that “free-market reforms” are introduced in Eastern Europe. Their economic aid is channeled almost exclusively into the private sector. The same policy holds for the monies intended for other countries. Thus, as of the end of 1995, “more than $4.5 million U.S. aid to Haiti has been put on hold because the Aristide government has failed to make progress on a program to privatize state-owned companies” (New York Times 11/25/95). Those who suffer from conspiracy phobia are fond of saying: “Do you actually think there’s a group of people sitting around in a room plotting things?” For some reason that image is assumed to be so patently absurd as to invite only disclaimers. But where else would people of power get together – on park benches or carousels? Indeed, they meet in rooms: corporate boardrooms, Pentagon command rooms, at the Bohemian Grove, in the choice dining rooms at the best restaurants, resorts, hotels, and estates, in the many conference rooms at the White House, the NSA, the CIA, or wherever. And, yes, they consciously plot – though they call it “planning” and “strategizing” – and they do so in great secrecy, often resisting all efforts at public disclosure. No one confabulates and plans more than political and corporate elites and their hired specialists. To make the world safe for those who own it, politically active elements of the owning class have created a national security state that expends billions of dollars and enlists the efforts of vast numbers of people.

The Republican establishment is haunted by painful memories of what happened to Old Man Bush in 1992. He peaked too early and he had no response to “It’s the economy, stupid.” Which has always been the case. Every GOP administration since 1952 has let the military-industrial complex loot the Treasury and plunge the nation into debt on the excuse of a wartime economic emergency. Richard Nixon comes quickly to mind, along with Ronald Reagan and his ridiculous “trickle-down” theory of U.S. economic policy. If the Rich get Richer, the theory goes, before long their pots will overflow and somehow “trickle down” to the poor, who would rather eat scraps off the Bush family plates than eat nothing at all. Republicans have never approved of democracy, and they never will. It goes back to preindustrial America, when only white male property owners could vote.

As recently as the early 1970s, a Republican president - Richard Nixon - was willing to impose wage and price controls to rescue the U.S. economy from crisis, popularizing the notion that “We are all Keynesians now.” But by the 1980s, the battle of ideas waged out of the same Washington think tanks that now deny climate change had successfully managed to equate the very idea of industrial planning with Stalin’s five-year plans. Real capitalists don’t plan, these ideological warriors insisted - they unleash the power of the profit motive and let the market, in its infinite wisdom, create the best possible society for all.

THE U.S. SECRET Service is one of the oldest law enforcement agencies in America, created in 1865. Its original mission was to investigate and prevent counterfeit currency, which was rampant after the Civil War and threatened to destabilize the country’s economy. The

The Republican Party spent the year of the liberal apotheosis enacting the most unlikely political epic ever told: a right-wing fringe took over the party from the ground up, nominating Barry Goldwater, the radical-right senator from Arizona, while a helpless Eastern establishment-that-was-now-a-fringe looked on in bafflement. Experts, claiming the Republican tradition of progressivism was as much a part of its identity as the elephant, began talking about a party committing suicide. The Goldwaterites didn’t see suicide. They saw redemption. This was part and parcel of their ideology—that Lyndon Johnson’s “consensus” was their enemy in a battle for the survival of civilization. For them, the idea that calamitous liberal nonsense—ready acceptance of federal interference in the economy; Negro “civil disobedience”; the doctrine of “containing” the mortal enemy Communism when conservatives insisted it must be beaten—could be described as a “consensus” at all was symbol and substance of America’s moral rot. They also believed the vast majority of ordinary Americans already agreed with them, whatever spake the polls—“crazy figures,” William F. Buckley harrumphed, doctored “to say, ‘Yes, Mr. President.’” It was their article of faith. And faith, and the uncompromising passions attending it, was key to their political makeup.

Even as it expanded into a transnational multi-billion-dollar corporation, Google managed to retain its geekily innocent “Don’t Be Evil” image. It convinced its users that everything it did was driven by a desire to help humanity. That’s the story you’ll find in just about every popular book on Google: a gee-whiz tale about two brilliant nerds from Stanford who turned a college project into an epoch-defining New Economy dynamo, a company that embodied every utopian promise of the networked society: empowerment, knowledge, democracy. For a while, it felt true. Maybe this really was the beginning of a new, highly networked world order, where the old structures—militaries, corporations, governments—were helpless before the leveling power of the Internet. As Wired’s Louis Rossetto wrote in 1995, “Everything we know will be different. Not just a change from L.B.J. to Nixon, but whether there will be a President at all.”8 Back then, anybody suggesting Google might be the herald of a new kind of dystopia, rather than a techno-utopia, would have been laughed out of the room. It was all but unthinkable.

In 1963, Robert Novak had written that many Republican leaders were intent on converting the Party of Lincoln into the White Man’s Party. The following year, Goldwater went down in crushing defeat, winning only 36 percent of the white vote. Even so, less than a decade later, the racial transmogrification of the Republicans was well underway. In 1972, Nixon’s first full dog whistle campaign netted him 67 percent of the white vote, leaving his opponent, George McGovern, with support from less than one in three whites. Defeated by the Southern strategy, McGovern neatly summed it up: “What is the Southern Strategy? It is this. It says to the South: Let the poor stay poor, let your economy trail the nation, forget about decent homes and medical care for all your people, choose officials who will oppose every effort to benefit the many at the expense of the few—and in return, we will try to overlook the

Instead, the battle is joined at the level of pure abstraction. The issue, the newest Right tells us, is freedom itself, not the doings of the subprime lenders or the ways the bond-rating agencies were compromised over the course of the last decade. Details like that may have crashed the economy, but to the renascent Right they are almost completely irrelevant. What matters is a given politician’s disposition toward free markets and, by extension, toward the common people of the land, whose faithful vicar the market is. Now, there is nothing really novel about the idea that free markets are the very essence of freedom. What is new is the glorification of this idea at the precise moment when free-market theory has proven itself to be a philosophy of ruination and fraud. The revival of the Right is as extraordinary as it would be if the public had demanded dozens of new nuclear power plants in the days after the Three Mile Island disaster; if we had reacted to Watergate by making Richard Nixon a national hero.

This move by President Nixon completed the process begun with World War I, transforming the world economy from a global gold standard to a standard based on several government-issued currencies. For a world that was growing increasingly globalized along with advancements in transportation and telecommunications, freely fluctuating exchange rates constituted what Hoppe termed “a system of partial barter.”13 Buying things from people who lived on the other side of imaginary lines in the sand now required utilizing more than one medium of exchange and reignited the age-old problem of lack of coincidence of wants. The seller does not want the currency held by the buyer, and so the buyer must purchase another currency first, and incur conversion costs. As advances in transportation and telecommunications continue to increase global economic integration, the cost of these inefficiencies just keeps getting bigger. The market for foreign exchange, at $5 trillion of daily volume, exists purely as a result of this inefficiency of the absence of a single global homogeneous international currency.

This is not a hypothetical example. In the middle of the nineteenth century Karl Marx reached brilliant economic insights. Based on these insights he predicted an increasingly violent conflict between the proletariat and the capitalists, ending with the inevitable victory of the former and the collapse of the capitalist system. Marx was certain that the revolution would start in countries that spearheaded the Industrial Revolution – such as Britain, France and the USA – and spread to the rest of the world. Marx forgot that capitalists know how to read. At first only a handful of disciples took Marx seriously and read his writings. But as these socialist firebrands gained adherents and power, the capitalists became alarmed. They too perused Das Kapital, adopting many of the tools and insights of Marxist analysis. In the twentieth century everybody from street urchins to presidents embraced a Marxist approach to economics and history. Even diehard capitalists who vehemently resisted the Marxist prognosis still made use of the Marxist diagnosis. When the CIA analysed the situation in Vietnam or Chile in the 1960s, it divided society into classes. When Nixon or Thatcher looked at the globe, they asked themselves who controls the vital means of production. From 1989 to 1991 George Bush oversaw the demise of the Evil Empire of communism, only to be defeated in the 1992 elections by Bill Clinton. Clinton’s winning campaign strategy was summarised in the motto: ‘It’s the economy, stupid.’ Marx could not have said it better. As people adopted the Marxist diagnosis, they changed their behaviour accordingly. Capitalists in countries such as Britain and France strove to better the lot of the workers, strengthen their national consciousness and integrate them into the political system. Consequently when workers began voting in elections and Labour gained power in one country after another, the capitalists could still sleep soundly in their beds. As a result, Marx’s predictions came to naught. Communist revolutions never engulfed the leading industrial powers such as Britain, France and the USA, and the dictatorship of the proletariat was consigned to the dustbin of history. This is the paradox of historical knowledge. Knowledge that does not change behaviour is useless. But knowledge that changes behaviour quickly loses its relevance. The more data we have and the better we understand history, the faster history alters its course, and the faster our knowledge becomes outdated.

At least there is calm at home? Hardly: food, gas, and electricity prices are at near all-time highs; a stagnant economy in “recovery” that for most people outside of Wall Street remains recessionary; government soon to be run by executive orders; the end of any idea of national sovereignty or a southern border; the Ferguson riots and racial explosions revealing an America more divided than at any time since the 1970s; the buffoonish Missouri governor Nixon playing the Katrina role of a now imprisoned Ray Nagin. The alphabet soup of unresolved IRS, VA, NSA, and AP scandals; revolutionary, extra-legal justice meted out to Rick Perry; Benghazi coming back into the news; the little reported on drip-by-drip practical dissolution of Obamacare. 1979–80 seem calm in comparison. The chaos arises from a variety of causes, but one common denominator is that President Obama has not a clue how to deal with these crises.

I know a lot of Americans who would be glad to settle for better bus service from their home to their jobs, or from poor neighborhoods to areas of the city where jobs are to be found. Repeated studies of riots in urban ghettos show that lack of adequate transportation was a big factor in the discontent and bitterness which caused riot conditions to erupt, but President Nixon's answer is to build a space shuttle or an SST with precious public funds, to serve a tiny elite of the population or to stimulate the economy of a state or region by creating massive and useless technological publicworks projects. (From Voices of Multicultural America)

The leaders of the plantation economy (e.g., Jefferson, Madison) feared a standing army, and would have none of it. One reason for resistance to a standing army was that any slave who served in the army would have a claim to emancipation. Such leaders did not want such an army, but wanted instead to assure that the reach of the federal government would not and could not do away with “state militia.” Thus the amendment guarantees the continuing right of such “organized militia” to work their unrestrained will in the slave economy, unhindered by federal check or restraint. The purpose of the amendment was to continue the means to control the slave population. The only ones who could rightly have a gun had to be a “citizen,” which of course meant a white property owner. Thus guns were safely withheld from any slave (or any Black) person, none of whom could qualify as a citizen. Thus Hartman can conclude: It didn’t take any time at all for white southerners to realize that if the race-based hierarchy of the Old South was to be preserved, white people needed to be the only armed people. . . . Today the genocide of Native Americans has settled into a slow simmer of malnutrition, poverty, and voter suppression; the enslavement of people of African descent has shifted from plantations to slums and prisons; and the modern police state constructed during the conquest era, the slavery era, and Reconstruction after the Civil War, and thrown into high gear in the 1970s with Nixon’s war on drugs, is still alive and well. All it requires to keep it in place is lots of guns. (65, 89)

By declaring to world dollar holders their paper would no longer be redeemed for gold, Nixon ‘pulled the plug’ on the world economy, setting into motion a series of events which was to rock the world as never before. Within weeks, confidence in the Smithsonian agreement had begun to collapse.

What happened in 1970 in Los Angeles was the worst economic episode I’ve ever had to fight through. Unlike the post–Cold War Recession, we did not have the waves of in-migration from Mexico, nor were drug sales as great. I believe the underground economy was a silent savior of Los Angeles during 1990–94. The Kent State Massacre and the Pentagon Papers scandal didn’t help the 1970 scene. Furthermore, things didn’t get better in the early 1970s. The sharp recession of 1970 was followed by a sudden inflation caused by Vietnam spending. Nixon “slammed the gold window shut.” From 1945 to 1971, the U.S., under the Bretton Woods Agreement, had agreed to back its currency to a limited extent with gold at $35 per ounce. Other nations’ central banks were withdrawing our gold so fast that Nixon had to renege on the promise. This was followed in 1973 by the end of fixed currency exchange rates. The dollar plummeted. Traveling to the wine country of France in the summer of 1973, I was unable to cash American Express dollar-denominated traveler’s checks. Inflation jumped with the 1973 Energy Crisis. Nixon imposed wage and price controls. Then Watergate, accompanied by the Dow Jones hitting bottom in 1974. Three Initiatives to Turn the Tide Against all this, Trader Joe’s mounted three initiatives. In chronological order: We launched the Fearless Flyer early in 1970. We broke the price of imported wines in late 1970 thanks to a loophole in the Fair Trade law. Most importantly, in 1971, we married the health food store to the Good Time Charley party store, which had been the 1967–70 version of Trader Joe’s. Together these three elements comprised the second version of Trader Joe’s, Whole Earth Harry.

The purpose was not to destroy the alliances and organizations that were built after World War II but to spread the responsibilities among key nations for making those alliances and organizations work. The goal was not to destroy but to adjust and modernize (p. 324).

We slowly shifted from a world economy that used gold as money to one where paper certificates were issued as a claim on that gold. Eventually, the paper was entirely separated from any physical backing by Nixon, who ended the international convertibility of the US dollar to gold in 1971.

Under President Richard Nixon, U.S. policy developed an even more pronounced pro-Portuguese bent, consistent with the administration’s support for white-ruled Africa. The most notorious manifestation was the December 1971 executive agreement that gave Portugal $436 million in credits for the use of the Azores base until February 1974. It was, noted the New York Times, “one of the largest economic assistance packages negotiated in many years in exchange for foreign base rights,” and it would “prop up the Lisbon Government’s floundering economy,” exhausted by a decade of colonial wars.56 As Amílcar Cabral told the UN Security Council in Addis Ababa the following February, “Portugal would not be in a position to carry out three wars against Africans without the aid of her allies.”57 CUBAN

In 1934, with the country nowhere near able to climb out of the Great Depression, Upton Sinclair, famous for his muckraking novel The Jungle and his socialistic solutions for the ailing economy, had swept the Democratic primary for governor of California. (He was hardly alone in turning to socialism at such a dire time.) Mayer, fearful Sinclair would tax the movie studios to pay for his socialist programs, warned that MGM and other studios would move back east if Sinclair won—not anything he was prepared to let happen. Calling in Irving Thalberg, head of production, Mayer told him to create a fake newsreel showing the disasters that would follow such an election outcome. Movie theaters were forced to show the film when they booked an MGM movie, and William Randolph Hearst would see to its distribution to all other theaters in the state. And indeed, as soon as the fake exposé hit the screens, Sinclair’s huge lead vanished, and Frank Merriam became governor. The dirty politics and stealth tactics of Richard Nixon? As you can see, just a rerun.

My Uber driver in Sacramento was not like my San Franciso Uber from earlier that day at SFO. My SAC Uber driver’s first presdential election was JFK-Nixon (or Eisenhower in 1956) and he was already drawing a Social Security check. "Father Time" overshot my fixed location (twice) and then didn’t listen to the navigation instructions. This guy’s signature move (and totem animal) is a U-Turn, a mile past the original juncture.

from Brazil he went to Venezuela—he was again recalled to Washington in June of 1973 and was made Chief of the Western Hemisphere Division just as the anti-Allende campaign was succeeding in Nixon’s goal of “making the economy scream.” That September, Allende was killed and General Augusto Pinochet and the junta took power.