Yesterday's New York Times provides a nice, anecdotal (and I mean that in a good way), look into the worldview of Wall Street businesspeople who supported Obama for president, but now are turning on him over financial reform and his rhetorical corporate America. Of particular note for this blog is the contention by hedge fund manager Daniel Loeb that “[a]s every student of American history knows, this country’s core founding principles included nonpunitive taxation, constitutionally guaranteed protections against persecution of the minority and an inexorable right of self-determination."Statements such as these go to what should be a core "banalogical rule": if someone is claiming their political views are the direct inheritance of the founding generation and its principles, it's likely they're oversimplifying. What makes the Founding Fathers a perpetual source of fascination and debate is that they were extremely complicated and even contradictory thinkers. Let's take as an example Thomas Jefferson, given that some of his pronouncements found themselves recruited for the complaints of businesspeople on Wall Street. Here are two Jefferson quotes on economics:
(1) "Having always observed that public works are much less advantageously managed than the same are by private hands, I have thought it better for the public to go to market for whatever it wants which is to be found there; for there competition brings it down to the minimum of value." --Thomas Jefferson to William B. Bibb, 1808. ME 12:107
(2) "Money and not morality is the principle of commerce and commercial nations... Justice, honor, faith, must yield to the necessity of keeping themselves in place. The question whether a measure is moral is never asked, but whether it will nourish the avarice of their merchants."
--Thomas Jefferson to John Langdon, 1810. (*) ME 12:376
Do those two quotes make sense in the modern left-right context? Potentially, but not easily. However, in the late 18th and early 19th centuries, in an era when merchants and large-scale businesses were only beginning to emerge, they did. Taking Jefferson and his fellow republicans as a case study, we find that the views on economics debated by the founding generation mixed a variety of viewpoints that today we associate with left and right into patterns very different than today.
Jeffersonians certainly expressed some views which fit in well with conservative politics, as seen in the first quote. Jefferson was a strong proponent of free trade and territorial expansion to provide more lands for production. Support of such policies also led Jefferson to promote an aggressive foreign policy aimed at assisting U.S. export interests, something associated with both political parties, but often criticized from a progressive perspective. Jeffersonians also opposed government subsidies to businesses, seeing them as helping to breed monopolies which undermined a real free market system. One can also find in Jefferson's opinion on the constitutionality of a national bank his fears about excessive federal government power being employed in regulating commerce.
At the same time, Jeffersonians expressed grave doubts about merchants and manufacturers, questioning their loyalty and very morality, as well as criticizing wealth inequality as a major threat to nation and justice. As one example, take this quote from James Madison, who, in speaking about the future of the nation, urged that laws be passed "which, without violating the rights of poverty, reduce extreme wealth to a state of mediocrity and raise extreme indigence to a state of comfort." To those who might find the part about property rights a counter, one can find concrete expressions of Madison's view in places such as his support for a wealth tax in Federalist No. 21. Jefferson similarly advocated versions of progressive taxation and worried constantly about the "misery" wealth inequalities created, as well as the dangers to a fair republic they represented. As the modern corporation began to take form in the early nineteenth century, Jefferson grew increasingly concerned and his writings showed at least as much antipathy to early "big business" as to "big government." As an example, in 1816 he declared that "I hope we shall crush… in its birth the aristocracy of our moneyed corporations."
What to make of this? Well, to put succinctly, Jeffersonians feared concentrated power - they believed a nation of independent farmers (white ones of course, slaves inhabited essentially a different universe), neither particularly wealthy nor poor, mostly unrestrained by government but also protected from the greed of merchants, represented the most just path for the future. Try grafting that into our modern, post-industrial national situation.
That said, I do not mean to imply that the thoughts of the founding generation bear no relevance on today. Many of the larger dynamics they faced are still issues today. Let's just remember they were complex people in a different time before enrolling them into today's fights.