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The Schwarz Report

Dr. Fred Schwarz Volume 49, Number 5 Dr. David Noebel

May 2009

Founded in 1953, the Christian Anti-Communism Crusade, under the leadership of Dr. Fred C. Schwarz, has been publishing a monthly newsletter since

1960. The Schwarz Report is edited by Dr. David A. Noebel and Dr. Michael Bauman. The Crusade’s address is PO Box 129, Manitou Springs, CO

80829. Our telephone number is (719) 685-9043. All correspondence and tax-deductible gifts (the Crusade is a 501(c)3 tax-exempt organization) may

be sent to this address. Permission to reproduce materials from this Report is granted provided our name and address are given.

The Socialization of America

by David A. Noebel

In retrospect, we might discover that 1883 was a most significant year. We’re familiar with 1848 giving us The Communist

Manifesto and 1859 giving us The Origin of Species by Means of Natural Selection or the Preservation of Favoured

Races in the Struggle for Life. But 1883 gave us three portentous happenings. These seemingly unrelated happenings

turned history toward socialism.

1. Karl Marx died on March 14, 1883, and was buried in Highgate Cemetery in London, England. The assumption

that Communism died with him was logical since only six people attended his funeral. But the truth is that it had not yet

begun its murderous journey through the 20th century.

2. John Maynard Keynes was born on June 5, 1883, in Cambridge, England. His political, economic, and moral

influence continues to affect every American.

3. The Fabian Socialist Society was an offshoot of The Fellowship of the New Life, which was born in October 1883

in London, England.

Today’s financial events illustrate that America is not exempt from being led toward socialism. Predictions differ,

depending on one’s perspective, as to whether this will be a socialistic paradise or a socialistic hell. Time will tell. In the

meantime, we’d do well to listen to warnings from the past.

Russian thinker and author Fyodor Dostoyevsky offered the following take on socialism: “The future kingdom of

socialism will be a terrible tyranny of criminals and murderers. It will throw humanity into a true hell of spiritual suffering

and poverty.”

Socialist George Bernard Shaw added: “You would be forcibly fed, clothed, lodged, taught, and employed whether

you liked it or not. If it were discovered that you had not character and industry enough to be worth all this trouble, you

might possibly be executed in a kindly manner.”

That’s probably why Margaret Thatcher added that the “problem with socialism is that you eventually run out of other

people’s money.”

Today, we can link the U. S. House of Representatives—and its radical, progressive, socialistic societies and caucuses—

directly to Karl Marx through Keynes and the Fabians.

Before identifying many of the House members caught up in the socialist web, however, let’s first identify the major

economic dogma of the early socialists.

Socialism is the economic system of both the Marxist-Leninist worldview and the Fabian Society worldview. John

Maynard Keynes was a member of the British Fabian Society, whose American counterparts were the Intercollegiate

Socialist Society and the League for Industrial Democracy. Their American voices were centered in the ideas of Norman

The Schwarz Report / May 2009

2

Thomas and John Dewey among others. Dewey, you

may remember, was an early signatory of The Humanist

Manifesto (1933) and its atheistic, socialist gospel.

Socialists are united in their desire to see capitalism

destroyed, either forcefully or gradually, and most would

rejoice if Christianity were destroyed along with it. Socialists

and liberals generally see in Christians “an infallible

marker of mental retardation.” (Claremont Review of

Books, Winter 2008/09, p. 6)

The Christian worldview endorses sound or hard

money, fiscal responsibility, saving for a rainy day, deferred

gratification, paying off monthly credit card bills,

living within one’s means, etc. Keynesian economics,

by contrast, argues for consumption, extravagance, and

not providing for the future, arguing that “the great vice

is saving, thrift, and financial prudence.” (Keynes At

Harvard, p. 63) Keynesians love huge national spending,

debt, and high inflation—anathema to Christians and

conservatives.

Socialists see capitalism as an evil economic system

founded on the concepts of profit, individualism, private

property, private business, freedom to buy and sell products

and services, etc. Indeed, a working definition of

capitalism is “the peaceful and free exchange of goods

and services without theft, fraud, and breech of contract.”

Capitalism is tailored to individual initiative rather than

groupthink or community initiative. Nearly all inventions

that have furthered the capitalistic enterprise and blessed

humanity in the process have been the result of individual

initiative rather than committee, group, or government

activity.

Marx advanced the socialist cause by calling for social

or public ownership of property and the abolition of

private property. He believed that people were best suited

to work on state farms, public parks, nationalized banks,

or the government bureaucracy rather than for private

employers, who would certainly take advantage of their

employees, causing them both social and economic harm.

Marx was an economic leech on fellow communist Engels,

who supported him with his capitalistic father’s monies.

George Bernard Shaw represented the Fabian point

of view by calling for “the socialization of the means of

production, distribution, and exchange” to bring about

an equal distribution of goods and services to all members

of society and to make the State “the ALL of social

well-being.” The State “subsumes all economic life of

the nation.”

In other words, socialism is an economic system that

downplays the individual in favor of the group, social

order, or the State. It is a system in which the State directs

the economic activity of the social order through

central planning and by placing economic activity under

the jurisdiction of the State. Socialism is also known as

collectivism or Statism and, to Marx, Communism.

Today, we call this economic system “interventionism”

or Keynesism. Interventionism is a kind of socialism

or communism, but without the destruction of the bourgeoisie

(which were slaughtered by the millions by Soviet

and Chinese communists). Today’s Fabians/Progressives/

Radicals allow their capitalist enemies to create wealth,

but acquire it by taxing them instead of slaughtering them

(Marx’s “reign of terrorism on the bourgeoisie”). They are

then free to distribute the wealth among the economically

disadvantaged, the intellectual elites, and the superior

governing classes.

Such (re)distribution of wealth ensures the favorable

vote of the masses being fed, entertained, housed (with

sub-prime loans) and doctored. ACORN (Association

of Community Organizations for Reform Now) and socialism

fit hand-in-glove just as Fannie Mae and Freddie

Mac fit Barney Frank, Maxine Waters, and Chris Dodd

to a “T.”

Most Americans are totally unaware that the U.S.

House of Representatives crawls with a large, wellorganized

assembly of socialist organizations. These

organizations are dedicated to (a) bringing about the destruction

of the capitalist economic system (portrayed as

greedy, conservative, religious, and/or filthy rich) and (b)

slowly but surely bringing production, education, food,

and health care under the complete control and regulation

of the federal government.

A prime example of this governmental takeover is

the carbon tax currently under discussion. It would punish

business and industry’s use of gas and oil products

(which according to Al Gore will warm the planet by one

degree over the next 100 years) by “allow[ing] the federal

government to ‘control every aspect of our economy,’

according to Christopher Horner of the Competitive

Enterprise Institute” (The Weekly Standard, March 16,

2009, p. 17).

The Schwarz Report Bookshelf

To see a complete list of books recommended by the Christian Anti-Communism Crusade please check out our website at www.schwarzreport.

org. This site also has back issues of The Schwarz Report as well as other great resources.

3

The Schwarz Report / May 2009

The legislators involved in this socialistic undertaking

belong to one or more radical House organizations: the

Progressive Democrats of America (6 House members),

the Congressional Progressive Caucus (74 House members),

the Congressional Black Caucus (43 House members),

and the Democratic Socialists of America.

Incidentally, the Democratic Socialists of America do

not identify their House members since they consider all

members of the Congressional Progressive Caucus part

of their membership due to the fact that “they both shared

operative social democratic politics.” The most prominent

national member of DSA is AFL-CIO President John J.

Sweeney, who could well be the most powerful influence

in the House of Representatives. And for the record,

the Chairwoman of the Congressional Black Caucus is

Congressional Progressive Caucus member Barbara Lee

(CA-9). The interconnections between all these socialistbased

organizations is staggering.

These organizations and their members quite literally

comprise a Socialist Red Army within the very contours of

the House of Representatives. According to the Wikipedia

article on the organization, “The Congressional Progressive

Caucus (CPC) is the single largest partisan caucus

in the United States House of Representatives and works

together to advance progressive [socialist] issues and

causes. The CPC was founded in 1991 by independent

[socialist] Congressman Bernie Sanders of Vermont, who

remains a member as Senator. [The CPC] represents about

a third of the House Democratic Caucus. Of the twenty

standing committees of the House, eleven are chaired by

members of the CPC.”

When the CPC claimed 64 members in 2006 (now 74

and gaining), the leftist publication The Nation boasted,

“The largest ideological caucus in the new House Democratic

majority will be the Congressional Progressive

Caucus, with a membership that includes New York’s

Charles Rangel, Michigan’s John Conyers, Massachusetts’s

Barney Frank and at least half the incoming chairs

of House standing committees” (The Nation, November

12, 2006).

These current eleven chairs are CPC members: George

Miller (CA-9)—Chairman of the House Education and Labor

Committee; Henry Waxman (CA-30)—Chairman of

the Committee on Energy and Commerce; Bob Filner (CA-

51)—Chairman of the House Veterans Affairs Committee;

Barney Frank (MA-4)—Chairman of the House Financial

Services Committee; John Conyers (MI-14)—Chairman

of the House Judiciary Committee; Bennie Thompson

(MS-2)—Chairman of the House Homeland Security

Committee; Nydia Velazquez (NY-12)—Chairwoman of

the House Small Business Committee; Charles Rangel

(NY-15)—Chairman of the House Ways and Means Committee;

Louise Slaughter (NY-28)—Chairwoman of the

House Rules Committee; Bob Brady (PA-1)—Chairman

of the House Administration Committee; and Edward J.

Markey (MA-7)—Select Committee on Energy Independence

and Global Warming.

As of February 20, 2009, the Co-Chairs of the CPC are

Raul M. Grijalva (AZ-7) and Lynn Woolsey (CA-6). The

Vice Chairs are Diane Watson (CA-33), Sheila Jackson-

Lee (TX-18), Mazie Hirono (HI-2), and Dennis Kucinich

(OH-10). Incidentally, the CPC website was “hosted

by the Democratic Socialists of America” until 1999, a

group affiliated with the Socialist International which was

founded by Karl Marx, Saint-Simon, and Fourier!

The Commission for a Sustainable World Society is

one of the Socialist International’s sub-organizations. Until

President Obama picked Carol M. Browner as his global

warming czar, Browner was a member in good standing

of the Socialist International. Upon her appointment,

her name and biography were removed from its website

“though a photo of her speaking June 30 to the group’s

congress in Greece was still available” (The Washington

Times, January 12, 2009, p. 1). We can expect Browner to

manipulate and push for every piece of socialist legislation

to advance the defeat of capitalism and the imposition of

more government on the American people. Oil, natural

gas, coal, and nuclear energy represent capitalism, and we

can expect Congressional socialists to do everything in

their legislative power to thwart their discovery, drilling,

usage, and distribution. Socialists promote wind(mill)

power because they know it alone cannot meet the energy

needs of a capitalist economy and will, therefore, hasten

the death of capitalism.

Browner will enjoy a great deal of support from the

newly appointed Secretary of Labor, Hilda Solis, who is

also a member of the Congressional Progressive Caucus.

And when Browner needs further help, she can rely on

the committee chairs, co-chairs, and vice chairs listed

above to assist her in using the global warming/climate

change scare to bring the United States of America into

a socialistic world governing body. She can also count

on former CPC member Nancy Pelosi (who is already

manifesting dictatorial tendencies) to drive the socialist

agenda as fast as humanly possible. Pelosi’s San Francisco

district (CA-8) is synonymous with socialism/ progressivism/

collectivism/statism/leftism/radicalism that in turn

are synonymous with scientific socialism/communism/

Marxism/Leninism/Maoism.

We have yet to address the ideological role played by

The Schwarz Report / May 2009

4

John Maynard Keynes in the demise of American capitalism

and Christian influence. Anyone with a Christian,

conservative bent fears the reality that the United States

is falling headlong off the cliff into socialism and all that

this will entail. It is no secret that the radical left is both

anti-capitalist and anti-Christian. Marx would be, no doubt

ecstatic, realizing that his life’s work of dethroning God

and destroying capitalism are about to be accomplished.

Zygmund Dobbs conducted the research for Keynes

at Harvard (KeynesatHarvard.org) and summarizes the

political, moral, and economic slant of Keynes and his

friends at Cambridge University: “Singing the Red Flag,

the highborn sons of the British upper-class lay on the carpeted

floor spinning out socialist schemes in homosexual

intermissions. . . . The attitude in such gatherings was antiestablishmentarian.

To them the older generation was horribly

out of date, even superfluous. The capitalist system

was declared obsolete and revolution was proclaimed as

the only solution. Christianity was pronounced an enemy

force, and the worst sort of depravities were eulogized as

‘that love which passes all Christian understanding.’ Chief

of this ring of homosexual revolutionaries was John Maynard

Keynes. . . . Keynes was characterized by his male

sweetheart, Lytton Strachey, as ‘a liberal and a sodomite,

an atheist and a statistician.’ His particular depravity was

the sexual abuse of little boys.”

Keynes, like Marx, had a fixation that should have

been a clue to his character. Marx practiced phrenology

(the study of bumps on one’s head), and Keynes practiced

chirognomy (the study of people’s hands). After studying

the hands of Charles Darwin’s brother, Sir George, Keynes

remarked, “His hands certainly looked as if they might be

descended from an ape.”

Overall, Keynes despised free or private enterprise, considered

homosexuality superior to heterosexuality, sought

to replace the gold standard with fiat paper money which

was more easily produced by government printing presses,

did not believe in the family unit, despised “savings” as a

stumbling block against the march of socialism, called on

the state to control the number of children per family.

The Keynesian economic formula fits all totalitarianisms,

including Fascism, Nazism, and Communism.

Sir Oswald Mosley, for example, was a Fascist leader

and a member of the Fabian Society. Lauchlin Currie, a

prominent Keynesian advocate, was a Soviet spy and an

economic aide to F.D.R. Joan Robinson, a Marxist economist,

assisted Keynes in some of his economic writings,

arguing, “the differences between Marx and Keynes are

only verbal.” (Keynes At Harvard, p. 68; also see Mark

Skousen, The Making of Modern Economics, p. 433)

Keynes also had a strong relationship with the notorious

Soviet spy Harry Dexter White. Keynes considered

White to be “the central figure in the Keynesian manipulations

in the United States.” Harry Dexter White just

happened to be the Assistant to the Secretary of the U.S.

Treasury. Even after White was exposed as a Soviet spy,

Keynesians to this day “see nothing wrong in White’s

Soviet role,” a “typical . . . attitude of Fabian socialist

elements toward the whole coterie of spies and Fifth

Amendment communists in the United States” (Keynes

At Harvard, p. 83).

It was Keynes himself who admitted that by “a continuous

process of inflation, governments can confiscate,

secretly and unobserved, an important part of the wealth

of their citizens. By this method, they not only confiscate,

but confiscate arbitrarily: and while the process impoverishes

many, it actually enriches some [e.g., Al Gore]. The

process engages all of the hidden forces of economic law

on the side of destruction, and does it in a manner that

not one man in a million can diagnose.”

Thus it is astounding that Larry Summers, head of

President Obama’s National Economic Council and

former president of Harvard University, when asked by

Charlie Rose “what idea, what person has most influenced

your thinking on how to deal with this [financial] mess?”

without hesitation answered “Keynes.”

Following the economic advice of Keynes (huge

government spending, debt, and inflation) is kissing the

American capitalist system goodnight! His advice is what

every socialist would give, even though clear-thinking,

common sense Americans know that excessive debt and

excessive spending are the main ingredients that created

this current financial mess (with the help of Congressional

Progressives like Barney Frank hatching socialist schemes

in the House of Representatives).

When Whittaker Chambers took up his sling and

aimed his rock at Communism, he admitted that he hit

“something else.” What he hit “was the forces of that

great socialist revolution, which, in the name of liberalism,

spasmodically, incompletely, somewhat formlessly,

but always in the same direction, has been inching its ice

cap over the nation for two decades.”

That inching is fast becoming a rout with national and

international socialists alike thinking their best opportunity

to strike a deathblow to the greatest, freest economic

system in all of human history is now.

Because capitalism has raised more human beings out

of poverty than all other economic systems combined, we

should remember the wisdom of Robert Heilbroner, a former

Marxist economist who changed his position before

The Schwarz Report / May 2009

5

the fall of the Berlin Wall: “The Soviet Union, China, and

Eastern Europe have given us the clearest possible proof

that capitalism organizes the material affairs of humankind

more satisfactorily than socialism: that however inequitably

or irresponsibly the marketplace may distribute goods,

it does so better than the queues of a planned economy;

however mindless the culture of commercialism, it is more

attractive than state moralism; and however deceptive the

ideology of a business civilization, it is more believable

than that of a socialist one.”

Little wonder that Winston Churchill painted socialism

as a philosophy of failure, a creed of ignorance, and a

gospel of envy whose inherent virtue “is the equal sharing

of misery.”

John Maynard Keynes

(1883-1946)

1. “Veritas [foundation] feels that without doubt the

following study will prove that the Keynesian ‘system’—

if it can be called a system—is the primary economics

system being taught in Harvard. Veritas also feels that

“Keynesian economics’ is a misnomer. It is not economics.

It is a leftwing political theory.” Zygmund Dobbs,

Research Director, Keynes at Harvard. New York, NY:

Veritas Foundation, 1963. p. 2.

2. “Even Whittaker Chambers … admitted: ‘The

simple fact is that when I took up my little sling and

aimed at Communism, I also hit something else. What I

hit was the forces of that great socialist revolution, which,

in the name of liberalism, spasmodically, incompletely,

somewhat formlessly, but always in the same direction,

has been inching its ice cap over the nation for two decades.’”

Ibid. p. 3

3. “Keynesism is so-called after John Maynard

Keynes, British economist (1883-1946). His teachings

are today considered an ideological base for British and

American Socialists.” Ibid. p. 8

4. “No matter what phase of left-wing infiltration we

study, be it in government, in information media, in foundations,

in labor unions, or whether we deal with Keynesian

socialism, neo-Marxian socialism or with Bolshevik communism,

the tracks lead inevitably to Harvard University.”

Ibid. p. 8

5. “There are three main trends of socialist thought in

the Western world. They are: the communist soviet brand;

social democratic neo-Marxism; and Keynesian theories

which are actually an extension of the [British] Fabian

movement. Curiously, Keynesism proved to be adaptable

to the Fascists as well as the Socialist world.” Ibid. p. 10

6. “The socialist lectures conditioned the young minds

to hate capitalism as an outmoded and cruel system; the second

phase was to despise and distrust individual capitalists

as exploiters and reactionaries who oppose social improvements;

and thirdly the fledgling radical is hooked by clever

‘scientific examples’ and formulae which prove to him that

the present social order is predestined to collapse and socialism

is foreordained to take its place.” Ibid. p. 13

7. “Almost the entire membership identified as belonging

to the first Ware cell (Soviet spy ring—ed.) came out

of the Harvard Law School: Alger Hiss, Nathan Witt, Lee

Pressman, John Abt, and Henry H. Collins Jr. Harry Dexter

White and Lauchlin Currie were teachers (Economics

teachers—ed.) as well as students at Harvard.” Ibid. p. 14

8. “Today [British] Fabians use the teachings of John

Maynard Keynes as their catechism of political economy.

The American Fabians have slavishly installed Keynesism

as the new faith, both in the Universities and in Government

bureaucracy. To lay bare and dissect these premeditated

deceptions is the true task of the political science of our

day.” Ibid. p. 40

9. “Huge tax-free Foundations, such as the Ford, Carnegie,

and Guggenheim Foundations, backed by billions of

dollars, became the nesting places of Keynesism.” Ibid. p.

41

10. “At the age of 20 (1903) Keynes became a member

of a Fabian group at Cambridge which was headed by G.

L. Dickinson, a prominent Fabian Socialist. As an undergraduate,

Keynes, imitating his father, expressed strong

opposition to the principle of private enterprise (Laissez-

Faire).” Ibid. p. 43

Charlie Rose: “What idea, what person has

most influenced your thinking on how to deal with

this mess?”

Larry Summers: “Keynes. Keynes and those

that followed him.” February 18, 2009. Posted on

the Rush Limbaugh website, February 19, 2009.

The Schwarz Report / May 2009

6

11. “This was in line with the general attitude of the

Fabian Society, which favored government run by the

Civil Service and not a government responsive to the

electorate.” Ibid. p. 44

12. “It was during this period (1913) that Keynes adopted

the concept of eliminating gold as a standard of the

monetary system of the nations of the world. His notion

of a managed currency (that he sold F. D. R. on twenty

years later) was an old socialist catch-all, espoused by the

Fabians since the turn of the century. It is a fundamental

concept of State-Socialism.” Ibid. p. 44, 45

13. “Keynes did not keep his Socialist convictions

to himself in those days. His opposition to the private

enterprise system was well known to London society.

Clarence W. Barron, then publisher of the Wall Street

Journal, while in London in 1918, made the following

observation: ‘Saw Professor Keynes of the British Treasury

. . . Lady Cunard says Keynes is a kind of Socialist

and my judgment is that he is a Socialist of the type that

does not believe in the family.’” Ibid. p. 45

14. “Singing the Red Flag, the highborn sons of the

British upper-class lay on the carpeted floor spinning out

socialist schemes in homosexual intermissions. . . . The

attitude in such gatherings was anti-establishmentarian.

To them the older generation was horribly out of date; even

superfluous. The capitalist system was declared obsolete,

and revolution was proclaimed as the only solution. Christianity

was pronounced an enemy force, and the worst

sort of depravities were eulogized as ‘that love which

passes all Christian understanding.’ Chief of this ring of

homosexual revolutionaries was John Maynard Keynes.

. . . Keynes was characterized by his male sweetheart,

Lytton Strachey, as ‘A liberal and a sodomite, an atheist

and a statistician.’ His particular depravity was the sexual

abuse of little boys.” Zygmund Dobbs, “Sugar Keynes.”

See Google “John Maynard Keynes: Lavender & Bolshevik.”

Or http://members.tripod.com/~BioLeft/keynes.htm

For further information on Keynes’ homosexual behavior

note A. L. Rowse, Homosexuals in History. New York,

NY: Macmillan Publishing Co. Inc., 1977, p. 271f. Also,

Mark Skousen, The Making of Modern Economics: The

Lives and Ideas of the Great Thinkers. Armonk, NY: M.

E. Sharpe, 2001, p. 325

15. “In this same work [The End of Laissez-Faire]

Keynes showed an early bias (1924) against savings and

investments as economic virtues. From virtues he transformed

them into evils . . . Fabian Socialists have long considered

those who saved and invested as a stumbling block

against the march of Socialism.” Keynes at Harvard, p. 49

16. “Keynes concept of controlling society extends beyond

political and economic matters. He even advocates social control

of the number of children per family.” Ibid. p. 49

17. “Keynes is a Socialist that does not believe in the

family. Naturally, in order to control the birth rate the State

must break up the family as an independent and free unit.”

Ibid. p. 50

18. “Margaret Cole, English Fabian revolutionary, has

stated: ‘We Socialists used Keynes and the U.S.S.R. as

touchstones.” Ibid. p. 60

19. “The entire Keynesian apparatus is based upon the

principle of control and regulation by government. . . . Capitalism

should now be regulated and controlled by a central

authority. . . . One of the central themes in Keynes’ system

is a condemnation of the principle of ‘savings.’ . . . Here is

[Keynes’] General Theory in a nutshell, with its trans valuation

of all values. The great virtue is Consumption, extravagance,

improvidence [not providing for the future]. The great

vice is saving, thrift, and ‘financial prudence.’” Ibid. p. 63

20. “The concept of eliminating savings is not an

economic one but a political one. If there are no savings

there is no private money for investment. Without private

investors the government must provide investment capital.

If the government provides for investment it has the power

to dictate the conduct and processes of those who need

investment capital. . . . All this is demagogy and claptrap.

It differs from the Marxist brand only in technical detail.”

Ibid. p. 64,65

21. “Another major prop of Keynes’ theory is Mrs. Joan

Robinson. . . . What Keynesians do not say is that this lady

is considered in international communist circles as one of

the world’s outstanding Marxists. Mrs. Robinson has widely

publicized the fact that the differences between Marx and

Keynes are only verbal. She later wrote: ‘The time, therefore,

seems ripe to bridge the verbal gulf.’” Ibid. p. 68

22. “Keynesian leftists. . . are confident that a great

national debt and continuing inflation plus enormous internal

and foreign commitments assure the continuance of

Keynesian operations for generations to come regardless

who is in power.” Ibid. p. 77

The Schwarz Report / May 2009

7

23. “Stuart Chase, representing the Fabian socialists

in the United States proposed Keynes as the socialist ideal

long before Keynes wrote the General Theory in 1936.

Chase outlined the Keynesian principle of abandoning

the gold standard in 1932. . . . Chase called his book A

New Deal. It was written in 1931 and published in 1932.

Franklin D. Roosevelt borrowed this socialist slogan as a

label for his administration.” Ibid. p. 78,79

24. “Curiously, the authorities used by Chase in his

book The Economy of Abundance (1934) were G.D.H.

Cole, J.A. Hobson, Julian Huxley, Bertrand Russell, J.

M. Keynes, John Strachey, and H.G. Wells, all spawned

by the British Fabian Society.” Ibid. p. 79

25. “An analysis of Keynesism in the United States

is incomplete without a discussion of the role of Harry

Dexter White while Assistant to the Secretary of the U.S.

Treasury. Harry White was considered by Keynes as the

‘central figure’ in Keynesian manipulations in the United

States. White played a major part in organizing Keynes’

pet project—the International Monetary Fund. In the interim

Harry Dexter White was exposed as an active Soviet

spy. . . . To this day, Keynesians see nothing wrong in

White’s Soviet role. . . . This eulogy of Harry Dexter White

was printed three years after he was exposed as a Soviet

spy—typical of the attitude of Fabian socialist elements

toward the whole coterie of spies and Fifth Amendment

communists in the United States.” Ibid. p. 83

26. “The line between fascism and Fabian socialism is

very thin. Fabian socialism is the dream. Fascism is Fabian

socialism plus the inevitable dictator.” Ibid. p. 87

27. “The Keynesian formula fits all totalitarianisms.

Juan Peron’s dictatorship in Argentina used the Keynesian

technique as authority in economic and political matters. .

. . Nehru traces the beginning of his interest in socialism

to his Cambridge days when the Fabianism of Shaw and

the Webbs attracted him. . . . The Nazis did admire the

Keynesian theme whereby the government has authority

over the whole economic life of the nation. . . . Sir Oswald

Mosley, current Fascist leader was a leader of the Fabian

Society at a time (1930) when Keynes’ ideas were already

the officially accepted Fabian line.” Ibid. p. 89, 90

28. “Shortly before his death Schumpeter concluded

that the basic leftist ideologies are based not on science

but on a vision.” Ibid. p. 96

29. “At the end of his life Keynes wrote: ‘We were

not aware that civilization was a thin and precarious

crust erected by the personality and will of a very few

[actually by a governing class] and only maintained by

rules and conventions. It did not occur to us to respect

the extraordinary accomplishment of our predecessors

in the ordering of life or the elaborate framework that

they had devised to protect this order. We completely

misunderstood human nature, including our own.’” A.

L. Rowse, Homosexuals in History. p. 277

30. “By a continuous process of inflation, governments

can confiscate, secretly and unobserved, an important

part of the wealth of their citizens. By this method,

they not only confiscate, but confiscate arbitrarily: and

while the process impoverishes many, it actually enriches

some. . . . The process engages all of the hidden forces

of economic law on the side of destruction, and does it

in a manner that not one man in a million can diagnose.”

John Maynard Keynes, Economic Consequences of the

Peace (1920) .

—Prepared by David A. Noebel, February 20, 2009

The New Socialists

by Mark Hyman

I lived and worked in London in the late 1980s. One

evening I attended a dinner party in the weeks leading

up to the 1988 presidential election. In attendance were

guests from several European nations.

During a conversation I shared my concerns over the

outcome of the presidential race. When I finished speaking,

an Italian guest leaned in my direction and chided

me for my concerns. “You Americans are so silly,” he

admonished. “You are worried over which capitalist to

vote for: the Democrat or the Republican. In Italy we have

real choices. Do we vote for the capitalist, the socialist or

the communist?”

I wish that Italian guest could have joined me at a

recent gathering in which a state legislator lectured me

over the state of the economy. The state, she said, should

have the right to confiscate the financial assets of individuals

and businesses to provide for the betterment of those

without. Her husband added, “It is a criminal act to have

money and not spend it so that the government can get its

share.” My, how times have changed.

The Schwarz Report / May 2009

8

It has now become fashionable for America's socialists

to come out of the closet. Elected officials advocating

ideological viewpoints that would have elicited derision

and laughter only a few months ago are now emboldened

to openly promote socialist policies. They feel safe because

America's chief executive has embraced an agenda

that is quickly moving America toward socialism in which

the goal is to have all power vested in the state and any

dissent is quashed.

Exhibit No. 1 is President Barack Obama's claim

that “the federal government is the only entity left with

the resources to jolt our economy back into life.” Rather

than provide tax and regulatory relief for businesses that

would actually jumpstart the economy, Mr. Obama's

$787.2 billion “stimulus package” is crammed full of

wasteful spending measures that hew to a social engineering

agenda that includes government central planning at

its very core.

The bill has $575 billion in new spending measures

that do not invite businesses to invest, expand or create

jobs. Incentives to spur consumer purchasing of big ticket

items such as homes and automobiles were drastically

scaled back in the final bill passed by Congress. Instead,

a dramatic increase in welfare payments was wedged into

the legislation.

The rise in welfare payments and the $400 per person

“refund” that will go to the 42 percent of Americans who

do not pay any federal taxes make good on Mr. Obama's

promise to “spread the wealth.”

Mr. Obama easily pushed this deeply partisan legislation

through the Democratic Congress even though no

government has ever been able to tax the people into prosperity

and the world landscape is littered with failed governments

that embraced a socialist agenda. Mr. Obama's

frequent calls throughout the campaign for “economic

justice” surely have Karl Marx smiling in his grave.

Exhibit No. 2 is Mr. Obama's grossly naive call for universal

health care. His failed Health and Human Services

Secretary nominee, Tom Daschle, promoted a U.K.-style

of socialized medicine. I experienced firsthand the U.K.'s

National Health Service, an appalling system of rationed

health care. Not widely reported is the U.K.'s flourishing

trade in private health care outside the NHS that does not

require consumers to wait months or years for routine

tests and treatments that people in America can receive

on a same-day basis.

Mr. Daschle's call for a centralized medical records

system controlled by the federal government should have

privacy advocates up in arms. However, most disturbing

is a provision in the stimulus bill establishing a National

Coordinator for Health Information Technology that

would, in the words of Mr. Daschle, ensure doctors only

prescribe “[medical] treatments [that] are the most clinically

valuable and cost effective.” Such policies are eerily

reminiscent of the political left's eugenics movement promoted

by Planned Parenthood founder Margaret Sanger.

Exhibit No. 3 is the Democratic effort to silence critics.

Michigan Democratic Sen. Debbie Stabenow, whose

husband was an executive with the now-bankrupt Air

America liberal talk radio operation, has joined a growing

list of Democratic elected officials who have vowed

to disable the few conservative broadcast media outlets

by imposing the inappropriately-named “Fairness Doctrine.”

Sens. Chuck Schumer, Dick Durbin, Tom Harkin,

and John Kerry have joined House Speaker Nancy Pelosi

and former President Bill Clinton among others in vowing

action that would effectively shut down criticism of their

brand of government.

Another proposal Mr. Obama is expected to push in

the coming weeks is “card check”—the elimination of

the secret ballot in labor union voting that would allow

union thugs to coerce and intimidate workers. One only

has to look to the “Winter of Discontent,” the era of British

Prime Minister Jim Callaghan in the late 1970s, to see

how corrupt labor unions sent that country into a massive

economic tailspin.

There's a distinct Politburo ring to the Obama administration

proposal to move the census from the Commerce

Department to the control of White House Chief of Staff

Rahm Emanuel, perhaps the most partisan politician to

work in the White House in a decade, where claims of

executive privilege could mask mischief.

Mr. Obama's bona fides of traveling in socialist circles

are well-established even though not well-reported by

the major news gatekeepers. His membership during the

1990s in the “New Party,” an offshoot of the Democratic

Socialists of America, his learning at the knee of childhood

mentor and lifelong Communist Frank Marshall Davis,

and his consorting with unrepentant terrorist and socialist

William Ayers speak volumes.

Mr. Obama worked for years as a community organizer

applying the tactics of dyed-in-the-wool socialist

Saul Alinsky and he was a faithful 20-year parishioner of

the Rev. Jeremiah “G.. d... America” Wright.

Yet, it is no longer Mr. Obama's history that should

worry Americans. Rather, it is the future of America he

envisions where equal opportunity and success are to be

replaced by the bare minimum and equal outcome.

The Washington Times, March 1, 2009, p. B5