War Collectivism and the Rise of the Total State During WW I

War Collectivism - Power, Business, and the Intellectual Class in World War I
by: Murray Rothbard

World War I (1914-1918), one of the largest wars in history, mobilized millions around a central cause. But, back at home in the United States, the rise of a total state and war collectivism occurred, including strict price controls and the creation of dozens of agencies like the War Industries Board (WIB) and the Food Administration (FA) headed by the food Czar Herbert Hoover. Total government control during the first World War and the ideas of what Rothbard calls Protestant post-millenial Pietism, used the State to stamp out sin and paved the way for the return of the second coming of Christ. This included all vices which bureaucrats considered immoral including and especially alcohol, which was eventually ratified as a constitutional amendment (prohibition). Partnerships with big business, such as International Harvester, JP Morgan & Co. and government formed to fix prices and allow nationalization of industries.

Progressive Intellectuals and the Big Business State Partnership

The intellectual class around the turn of the century believed in an alternative to traditional Laissez-Faire capitalism, a new middle ground version of proletarian marxist socialism and neo-mercantilism. WW I was an opportunity for the intellectual class to gain influence and join the ranks of the great bureaucracy created by Woodrow Wilson and his expansion of executive authority during war time, acting under the guise of national emergency. The intellectual class took full advantage of the war mobilisation and was instrumental in the spread of propaganda advocating against the chaos of capitalism and the new progressive neo-merchantalist model of government.

Richard Ely - A Prominent Progressive Intellectual

Intellectuals were of particular importance during WW I through creation of propaganda, perpetuating the evil-German narrative through satanic drawings of the Kaiser and other Germans. Not only was the spreading of propaganda of importance in the rise of the Total State, but so were progressive economists and statisticians. Progressive economists recognized that they would have to discredit the logic and sound economics of laissez-faire, through what Mises called "anti-economics."

Dr. Richard Ely, progressive economist and post-millennial Protestant pietist, was perfect to lead and fill this role. As a strict sabbatarian, he even prohibited his family from playing games and reading books on Sundays and was a strict proponent of alcohol prohibition. In the mid-1880s, Ely founded the American Economic Association (AEA) which he set out to steer the economics standard to statism vs. traditional Laissez-Faire capitalism.

"Ely was one of the most prominent post-millennialist intellectuals of the era. He fervently believed [the State] was God's chosen instrument for reforming and Christianizing the social order, so eventually Jesus would arrive and put an end to history."

Permanent growth of the State

In Robert Higgs', Crisis and the LeviathanHiggs shows that many of the crises throughout history such as WW I and WW II paved the way for the creation of institutions that were never dismantled and caused the rise of the permanent Leviathan State we experience today, such as the income tax, social security, and many of FDR's NRA programs. In fact, WW I war collectivist socialism set a powerful precedent for how presidents took advantage of crises to promote progressive statism throughout the 20th century and to this day.

Further Reading - The Progressive Era
by: Murray Rothbard

If you are looking for further reading on the topic of the rise of progressivism, this lengthy book that was just released by the Mises Institute I thought was excellent. It is a collection of Rothbard's papers which he never published, but the institute complied them into this book, which explains the rise of the Progressive Era in the 20th century. It also describes who Rothbard calls, post-millennial pietists who had a vision in shaping America towards central authority in the rulers' vision of morality through legislation, beginning with the nationalization of the railways. You can also take the free online course HERE.

"This shows, for one thing, that the powers of the State apparatus to bamboozle the public work better in foreign affairs than in domestic. In foreign affairs you still have this mystique that the nation-State is protecting you from a bogeyman on the other side of the mountain. There are "bad" guys out there out trying to conquer the world and "our" guys are in there trying to protect us. So not only is isolationism the logical corollary of libertarianism, which many libertarians don’t put into practice; in addition, as Randolph Bourne says, "war is the health of the State."
-Murray Rothbard - Rothbard on War - antiwar.com

Thanks so much for reading. As always if you got anything out of my writing, or it caused you to be more curious and look further into just why America's total State has grown unimaginably, please kindly give a donation of Monero (XMR) to the following address or use the QR Code:

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