[From the Mises list]

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> Date:        8/11/2000 6:40
> Received:    8/11/2000 8:54
> From:        Loren Mark Swearingen, [EMAIL PROTECTED]
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> When I began making plans last year to move to New Zealand or Australia, a
> few friends asked me a very perceptive question -- if I am in favor of
> free
> markets and opposed to high taxes, why would I move to a socialist country
> with a government health care system that has even higher tax rates than
> the
> U.S.?
>
> That's a very good question, and -- although it didn't stop me from
> moving --
> I have been pondering it for a while.
>
> I grew up with the notion that America was the country in the world with
> the
> greatest freedom, and that other countries were, to varying degrees,
> socialist basket-cases.
>
> In the last year, however, I have begun to wonder whether that is really
> an
> accurate perception.  After all, two of the ten government economic
> policies
> advocated by Karl Marx were a central bank and an income tax, and America
> had
> both of those before the 1917 Bolshevik revolution in Russia.
>
> Living in Australia has made me concious of how much America really is the
> center of the world.  American music, American magazines, American TV,
> American movies, and even American politics all dominate the intellectual
> life of other countries to an extent that I think very few Americans are
> aware of.  When Amy & I got to New Zealand, for example, we were
> surprised to
> find McDonald's and KFC's all over the place, decorated in 1950's American
> style with pictures of Elvis, Marilyn Monroe, James Dean, 1950's
> Cheverolets,
> etc.  I guess we thought other countries would have their own fast food
> chains, their own movie stars, etc.
>
> Might it be possible, then, that other countries have copied America's
> laws
> and economic system?  I have been thinking that I would like to do more
> research about when various countries in the world adopted various
> socialist
> policies such as a central bank, an income tax, a welfare system,
> tax-financed education, and so forth.  The results of such a study could
> be
> quite surprising.
>
> Serendipitously, Fr. Vincent recently sent the web reference of the
> following
> article to his list, which compares the history of economic policy in
> America
> and Canada.  The article confirms what I had already begun to suspect --
> that
> America has been a leader and a teacher, not a follower, in socialist
> ideology and practice.
>
> =============================== Begin excerpts
> ==============================
>
> http://www.FreeRepublic.com/forum/a399197565aba.htm
>
> THE SOCIALIST WIND FROM THE SOUTH
>
> by Martin Masse
>
> ... William Watson explains in "Globalization and the Meaning of Canadian
> Life" ... that the Canadian identity based on interventionism and
> protectionism is in fact a myth, and that we're certainly not
> distinguishing
> ourselves from the Americans by trying to become more socialist, since the
> Americans were there before.  In two chapters in particular entitled The
> American "Governmental Habit" and The American Lead, he shows that new
> interventionist and collectivist fads in various sectors of the economy
> and
> society have usually been tried first south of the border, and only later
> brought in to Canada...
>
> Thus, in spite of our supposedly more interventionist traditions, the
> allegedly anti-statist Americans had both an income tax and a central
> bank,
> two necessary accoutrements of modern big government, before we did. (p.
> 92-93) ...
>
> Whatever its official ideology might ordain, the United States has always
> had
> an active -- and when necessary protectionist -- tariff policy. On July
> 1789,
> the very first economic act the new Congress undertook was to legislate
> tariffs to both raise revenue and restrict imports...
>
> Of the two countries, Canada has been the most resistant to the socialist
> wave sweeping the world in the first half of the 20th century, and had the
> least activist government until the 1950s...
>
> It wasn't until a constitutional amendment in 1940 that Canada had
> national
> unemployment insurance, something the United States had put in place in
> 1935.
> Nor was the almost three-fold expansion of federal spending in the United
> States during the 1930s, from $3.1 billion in 1928 to $8.8 billion in
> 1939,
> matched in Canada, where Ottawa's spending rose by only 70 per cent in the
> same ten years, from $405 million to $681 million. (...)
>
> At the end of the 1930s, the United States was the more advanced welfare
> state, Canada the backward northern neighbour...
>
> Public health care, government-run pension plans, social welfare,
> unemployment insurance, etc., ... were first thought out by American (and
> German and British) socialists, and were imported here rather late.
> Pearson's
> reforms and Trudeau's so-called "Just Society" scheme to expand social
> programs at the end of the 1960s simply copied, a few years later,
> Kennedy's
> and Johnson's "Great Society" plan...
>
> There was a Great Society, after all, before there was a Just Society.
> U.S.
> spending on social programs went from $77.2 billion in 1965 to $146
> billion
> just five years later...
>
> So, what should we conclude of all this? Answer: that the real
> interventionists and socialists at heart are the Americans, and that the
> real
> Canadian tradition is one of rugged individualism being slowly frittered
> away
> under the overwhelming influence of American collectivism...
>
> The anti-Americans among us have a point: we should protect ourselves from
> the nasty winds coming from the south. But they are wrong about the rest.
> The
> Canadian identity that should be cherished and the Canadian tradition that
> should be upheld are based on individualism, small government and the free
> market. That's what we were until the 1950s. The new identity and
> tradition
> invented since are phony ones, and we should let the Americans have them.
>
> ================================ End excerpts
> ===============================
>
> Thus it can be truly said of America:
>
>      "By your magic spell all the nations were led astray."
>      (Revelation 18:23)
>
> Mark Swearingen
> Sydney, Australia
>
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