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ESSAY- Assured destruction: Why bail-outs could destroy the Union

Published January 22, 2009 in issue 0803 of the Hook

 

"A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."

 

These words, allegedly by Scottish history professor Alexander Tyler at the time the American Republic was founded, seem to have relevance today.

In the past few months, Uncle Sam has bailed out Wall Street, mortgage giants Fannie Mae and Freddie Mac, troubled homeowners, banks, and US automakers while our incoming administration promises massive investment in roads, bridges, and other infrastructure.

Everyone and their cousin seems to be jostling for space at the federal trough in spite of our record deficit and national debt. The business community, for example, has found $1.6 trillion in needed roadway infrastructure, and even the American Bikes coalition is seeking $2.2 billion for needed "shovel-ready" projects.

Up next? How about Big Media? Big Sports? Agribusiness? And, of course, all the pension funds?

With the bailout "mother of all precedents," it's become difficult for Washington politicians to say "no" to any special interest that's too massive, too economically important, or too well-connected. Nor can our politicians forget the poor. Or the crucial swing voters in the "struggling middle class." And they certainly can't ignore seniors-- AARP members are very vocal.

Virtually every group today is trying to meet with the Obama team to convey the urgency of its "crucial" spending requests.

A few weeks ago, the WorldWatch Institute e-mailed seeking money to make its case to President Obama. Both the National Council for the Social Studies, and the American Sports Fishing Association have sent pitches to the president-elect. 

I'm left with this question: Have we gone from "rugged individualism" to the complacency or even dependency of the national trajectory described above?

At the time of America's founding, the Federalist Papers discussed democratic politicians being forced to count on the votes and support of citizens too self-involved or uneducated to realize that short-term individual or group gain often precludes long-term benefit.

Thomas Jefferson, of course, sought to deal with policy makers' catering to their constituents' convenience by founding The University of Virginia. He wanted an informed, intelligent, and thoughtful population in hopes of helping democracy survive. Sadly, UVA is preparing its own stimulus wish list.

A century after Jefferson turned UVA's first spade of earth, the 17th Amendment provided for the direct election of U.S. Senators, instead of them being beholden to state legislators, as prescribed by The Constitution. Facing John Q. Public every six years instead of a handful of legislators, senators began putting their hands out to special interests; and at that moment, long-term thinking by American government took a massive step backward.

Will Virginia's new senator, Mark Warner, for example, feel secure enough to stand on a matter of principle and say he can't support UVA's requests?

President Kennedy's book Profiles in Courage recorded only eight incidents in American history when senators stood fast amidst the howls of their constituents or party. JFK, of course, is the president who asked for the best of us, saying pointedly in his inaugural: "Ask not what your country can do for you – ask what you can do for your country."

Hopefully, we're not sliding toward "final collapse due to loose fiscal policy," but since many of

us demand "instant gratification," it may take another inspiring wordsmith to stymie the "me, me, me" cacophony.

Obama, like Kennedy and Jefferson, is, indeed, a man with a gilded pen. Can he lead us to understand that when America races to raid the public treasury, it becomes, to use a phrase President Lincoln borrowed from the Bible, "a house divided against itself"? 

Hopefully, President Obama will enjoin all Americans to do now what Lincoln urged at the beginning of the Civil War: "If all do not join now to save the good old ship of the Union this voyage, nobody will have a chance to pilot her on another voyage"?

~

A former journalism teacher at Virginia Union University, Randy Salzman is and a transportation researcher who lives in Charlottesville and writes about transportation when his transportation ideas aren't being written about.

#

Editor's Note: The quotation that opened this back page essay was attributed to an 18th century Scottish history professor. For starters, an editing error botched the name of the professor, Alexander Tytler. More serious, perhaps, is that the quotation may be a 20th century creation, according to original research conducted by Georgia lawyer Loren Collins.
                     

Randy

Interesting article. Odddly I went to UVa for my undergrad...class of '88. But that's not how i found the article. I run DAILYBAIL.com...just launched 5 days ago...below is our description...come see the site...you'll love it..any help you can be in spreading the word would be greatly appreciated...we're getting great traffic already...perhaps you could even write about our site...a man can dream i suppose...thanks for reading, steve

DAILYBAIL.com

Bailout News and Laughs. We find it, read it, sort and then give it back to you ALL DAY EVERY DAY. We are keeping ALL the records on the greatest Taxpayer heist in history! Come Check Us Out! WE run NO ADS on the site. And tell your friends and anyone else who cares about their future and that of their children. Please help us spread the word!

posted by dailybail at 1/22/2009 6:45:50 AM

Well Said. It is scary how a quote several hundred years old can be so relevant. How long until we hand out every penny that we have? I think people have already started to vote for the person who will give them the biggest handout/free money. At least we all can stop paying our bills and being responsible adults because now I know someone will take care of me when I make stupid decisions.

posted by Pay my car payment? at 1/22/2009 10:29:08 AM

Nice essay. People need to learn to take care of themselves, the less government involvement the better, and the less everyone will get taxed paying for that involvement! Some will fall, learn valuable lessons, and be stronger for it.

posted by dan1101 at 1/22/2009 1:40:35 PM

And not a single word on the Federal Reserve, what it actually is and why it's screwing you.

posted by Jim at 1/26/2009 7:30:25 AM

Odd that a quote from the time of our country's founding would refer to democracies and dictatorships. My understanding is that the US was the first democracy and unless you count a monarchy as a dictatorship, none had existed at this time. The fact that the writer places a misquote so prominently leads me to question his analytical ability as manifested by the article.

posted by billy bob at 1/26/2009 12:44:58 PM

http://www.snopes.com/politics/ballot/athenian.asp

posted by HOAX BUSTER at 1/26/2009 12:48:43 PM

Billy Bob, let me help you out. First of all the united states isn't a democracy. It is a republic(...and to the republic for which it stands...). And even if it were a democracy it wouldn't be the first. A quick 15 second investigation on google will show you that. Lastly, if the sentiment expressed by Alexander Tyler is so inapplicable why were these words below penned by Thomas Jefferson?

"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

"I believe that banking institutions are more dangerous to our liberties than standing armies."

So if you're going to crack on someone's analytical ability you might at least want to be sure of your facts before you go sticking your foot in your mouth for all the world to see. That's just an opinion and we all know what they're like. ;P

posted by Jim Joe Billy Bob at 1/26/2009 4:06:03 PM

Ok Jim Joe, thanks for the "help". Seems to me that a writer that gets published in a newspaper should KNOW whether or not a quote is an actual quote. It isn't, but it is the basis for his opinion. If you want to count ancient greece or rome as a "democracies" go right ahead. I think by most modern definitions they would be considered oligarchies, but your UVA poli-sci course might not have covered that. Thanks for the quote from Jefferson. I take it now that the followers of this slave-holding rapist will be advocating the dismantling of our "standing army"?

posted by billybob at 1/27/2009 3:34:36 PM

Dude.. you're busted. Quit whining. And I will gladly take the word of the author of the Declaration of Independence and heir apparent of Benjamin Franklin over the fallacious reasoning of an arm chair moron that doesn't even know what kind of political system under which he lives. I never went to UVa btw. Familiarity breeding contempt perhaps? LOL!

posted by Jim Joe Billy Bob at 1/27/2009 6:15:25 PM

Jim, calm down.

I am busted not at all, nor am I whining. I merely pointed out that the author based an article on a fallacious quote. If this country is not a democracy, then what's the point of his quote? What is the democracy that YOU claimed preceded this one then? You can be satisfied with your assumption of Jefferson's mantle, but then you must take the whole of his legacy. He raped his slaves and his words were used to justify slavery for decades. You take one quote out of context in order to prop up a lame op ed piece in the junior weekly of a small southern town. Congrats!

posted by bill at 1/27/2009 9:26:26 PM

BTW, Jefferson died in staggering debt. Whatever words he may have once uttered, he certainly did not practice the lofty ideals of self-sufficiency and responsibility. He relied on other people's toil and other people's money to maintain a luxurious lifestyle that he otherwise could not afford. Modern society's equivalents to Jefferson are the very people that have brought our financial system to the brink of collapse.

posted by WilliamRobert at 1/27/2009 9:37:30 PM

Perhaps you were confused by the word "allegedly".

posted by Jim Joe Billy Bob at 1/28/2009 11:14:49 AM

how do you KNOW that jefferson raped anybody? Perhaps he was seduced by a woman who found him alluring and powerful.

Jefferson had debt when he died but he still had "net worth" so seems like he lived life the way we all should.. to its fullest...

in the stimulus package there is nearly half a BILLION dollars for the National Endowment for the Arts. Thats waste we can believe in.

posted by sally hoemings at 1/28/2009 7:45:14 PM

yawn

Salzman uses pretty words but why are we listening to this nonsense from him month after month in The Hook? Didn't he whine the same thing the last 4 Essays? Why must we listen to this warmed-over-slightly-more-intelligent DittoHead drivel month after month in The Hook? How about someone who actually has anything positive or constructive to say - ever?

Next.

posted by Andy Herz at 1/29/2009 1:32:56 AM

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