An introduction to Alexander Hamilton, Thomas Jefferson and Colonial America. This lecture sets the stage for the Jefferson-Hamilton dispute, which will be covered in the next lecture. Key to this lecture is an introduction to the psychological complexity of Thomas Jefferson, who is portrayed as someone with rather pronounced intellectual passions, some of which are quite negative and constructed around problematic frameworks.
Today’s Lecture: Land v. Money as Power Topic 3 Land as Power Land as Power Agrarian and Feudal Economics -- Before finance capitalism arrived, land, not “money,” was power. -- People lived off and worked the land. Whoever controlled land, controlled the power Feudalism: -- servants were bound to work the land of the Lord (“Landlord”) 3/12/2007 (C) Copyright Sean Wilson. 2007. 3 illustration The Domination of Landed Elites • Shires Time • Manor Estate • Duties of the Landlord Hypothetical Territory • Duties of the Tenant • Feudalism (hard and soft) • Affinities! Lord’s “Muster the Rohirrim!” A Hampshire B Pembroke Manor Estate Y h C Y C D Servant High Ground c Husbandmen c c c h Cottagers Quarters, a Mill Yeomen The Church c or Oven. Farmers 9/13/2012 Copyright, Sean Wlson. 2007 4 Aristocracy -- Social Stratification Monarchy Great Chain of Being Aristocracy Gentry Peasants, Serfs City-dwellers, drunks 9/13/2012 Copyright, Sean Wlson. 2007 5 Aristocracy -- Social Stratification Royal Blood -- King, Queens, Princes, Monarchy Princesses, etc. Highest Titles; Immense Lands Closest to God on Earth Divine Right 9/13/2012 Copyright, Sean Wlson. 2007 6 Aristocracy -- Social Stratification Monarchy Dukes and Barons of the Nobility countryside High Titles; Immense Lands The Great Peers 9/13/2012 Copyright, Sean Wlson. 2007 7 Aristocracy -- Social Stratification Monarchy Nobility Gentry 2nd and 3rd sons Primogeniture Lower inheritance; Less land Justice of the Peace Command a regiment Jobs at Court 9/13/2012 Copyright, Sean Wlson. 2007 8 Aristocracy -- Social Stratification Monarchy Nobility Gentry Laborers, craftsmen, Peasants, “smiths,” peasant Serfs farmers 9/13/2012 Copyright, Sean Wlson. 2007 9 Aristocracy -- Social Stratification Monarchy Nobility Gentry Peasants, Serfs City-dwellers, No jobs, no place to live. drunks 9/13/2012 Copyright, Sean Wlson. 2007 10 Money as Power “moneyed men” -- As the world changes, there will be a new process invented that determines who is “rich.” -- That process is the invention of finance capitalism. -- After (and during) industrialization, the rich are the owners of corporations, stock and financial houses, not the Lords of “estates.” (e.g., Bill Gates, Mitt Romney, Warren Buffet) -- The Industrial Revolution and the “Robber Barons.” (e.g., Andrew Carnegie, John D. Rockefeller). 3/12/2007 (C) Copyright Sean Wilson. 2007. 12 How to Make Money from Money Question: Can Anyone Tell Me How You Make Money from Money? Money from Money? 0 0 0 How to Make Money from Money Insurance Take some activity: driving Humongous Risk Pool of Capital Trick Question: How does the company Customers pay for the cost of auto accidents? How does the company pay for auto 0 accidents? 0 0 How to Make Money from Money Insurance Humongous Risk Pool of Capital Premium -- Total amount of premiums collected will be larger than Customers the risk How to Make Money from Money Insurance Humongous Risk Pool of Capital Premium -- Total amount of premiums collected will be larger than Customers the risk How to Make Money from Money Insurance Profit Humongous Risk Pool of Capital -- Total amount of -- The mere fact of premiums collected having money can make you more will be larger than Customers the risk money Philosophy of Debt Deficit Spending -- Deficit Spending: when a country spends money that it doesn’t have, through borrowing from the financial sector Question: Is it good or bad when countries deficit spend? 3/12/2007 (C) Copyright Sean Wilson. 2007. 21 Everyone Votes! 1. It’s bad. 0 2. It’s good. 0 3. It depends. 0 4. I don’t know. I’m just a 0 freshman. Deficit Spending Philosophy of Debt -- Debts can be good or bad. • Bad debts = money spent for leisure, fun. (e.g., using credit card for beer) Question: What is an example of a good debt, and why? 3/12/2007 (C) Copyright Sean Wilson. 2007. 23 What is an example of good debt and 0 why? 0 0 The English Empire Deficit Spending Philosophy of Debt • Good debt = student loan. -- you make MORE money by incurring the loan! (The banker makes a profit, and so do you. It’s win-win) Pareto Trade 3/12/2007 (C) Copyright Sean Wilson. 2007. 25 The English Empire National Bank Deficit Spending Apply this to Warfare Philosophy of Debt -- If the war makes your empire significantly more profitable, it is good to deficit spend 3/12/2007 (C) Copyright Sean Wilson. 2007. 26 The English Empire National Bank Deficit Spending Government Has to Start It -- The only way to get finance capitalism going is for government to create a financial system. It doesn’t just happen. -- England was the first country to realize this: created a national bank 3/12/2007 (C) Copyright Sean Wilson. 2007. 27 England as the First Modern Country England -- England is a tiny little island. She was able to build the strongest empire on the planet since the days of Rome. (let’s look at the map) The English Empire 9/13/2012 Note: Some Copyright, Sean Wlson. the of these possessions arrive later in2007 1800s and early 1900s. 30 The English Empire • strongest empire on the planet • holdings match that of Rome • Think of all the places that speak English today 9/13/2012 Copyright, Sean Wlson. 2007 31 Finance Capitalism -- The English invented a new economic model that makes the country incredibly resourceful Capital Corporations Manufacturing Banks Finance Speculation The English Empire National Bank Deficit Spending -- For the first time in history, England launches the era of deficit spending (Government running up deficits) -- How countries went to war before there was a financing system: (tax and confiscate wealth for soldiers; command people to fight under pain of death) -- England learns a new way to go to war: put it on the credit card 3/12/2007 (C) Copyright Sean Wilson. 2007. 33 National Debt – England invented the idea of creating English-funded national debt. If you look at government records, England’s national debt actually begins in the 1690s. It works like a market transaction. If you are a merchant and you have money, what else are you going to do with it? You make an investment. You can lend the government money and in exchange you get an annuity (interest on the loan paid to the lender). The bonds offered here were at 14% interest. You loan the government money and then not only get the money back, but make a profit. The way these bonds worked: if you died, the obligation was over (there was risk; the average life expectancy was 40 years). Also, if the government paid the money back early, that was allowed (analogy: credit card). National Bank – England created the Bank of England. It acted as a private bank. It made loans and received deposits. It was an investment opportunity for subscribers. It loaned money to the government and in fact would become the government’s principal lender, and acted as something of a federal reserve. It could print notes, and that helped to regulate the money supply. This system allowed England to have 4 million pounds a year in spending available to them. The British army grew to 76,000 by 1697, more than double that of James the 2nd. The central administration of the army would triple in size from about 4,000 to about 12,000 officers between 1688-1725. The financial revolution has changed England. It is becoming a wealthy empire with the strongest fighting force. It’s bureaucracy is starting to become more professionalized. In order to secure approval for the financial revolution, William had to make parliamentary concessions. national debt was now permanent and news was of raising money (budgeting) had to constantly be looked at, Parliament is now a permanent part of govt. New People Become Powerful Changing of the Financial Guard Investors became wealthy very fast …. There was a new investor class. It made a new class of men – “moneyed men.” They were not land owners. They made money out of money. The old landed-elites saw them as parasites. They were making money from the land tax which was going to fund the national debt. And worse, they were making money just from money. They owned no land yet they were taken into the government’s counsels. source – Robert Bucholz (paraphrased) Farmers don’t like Bankers The Bankers are Subjugating the Farmers – Jonathan Swift, the famous writer, notes that “the country gentlemen are now at the mercy of the scrivener, who is a lawyer that receives half of the rents as interest and a mortgage on the whole.” These new practices seem shady and even conspiratorial. Swift writes, “Through the connivance and cunning of stockjobbers [brokers], there has been brought in such a complication of navary and cousinage, such a mystery of iniquity, and such an unintelligible jargon of terms to involve it in as were never known in any other age or country of the world.” source – Robert Bucholz (paraphrased) 1. The profits of the land pay the interest “New Jargon” – farmers learning the language of 2. But the loan looms large over “points” and interest the entire land if you cannot pay Other Benefits of Finance Capitalism Manufacturing -- is starting to happen in Britain: Manufacturing and the industrial revolution had started in England in the late 1600s and early 1700s: (clothing mills with 1,300 people employed) (invention of interchangeable parts) (gives Britain an advantage) 3/12/2007 (C) Copyright Sean Wilson. 2007. 38 Other Benefits of Finance Capitalism England is a Major Commercial Hub -- if you want any sort of consumer goods in the 1700s, England is the major player -- the trading and financial networks she built were unparalleled. (Ships, colonies, markets, urbanization, rich culture, industry, crafts, artisans, products sailing from here to there –- England is at the center of it all). 3/12/2007 (C) Copyright Sean Wilson. 2007. 39 Glorious Revolution Constitutional Monarchy They have a king/Queen, but the Parliament is the boss (in theory) Significant amount of voting and elections Two-party system emerged Commitment to individual rights (speech, press) 3/12/2007 (C) Copyright Sean Wilson. 2007. 40 The First Modern Country? Triennial act passed in 1694: requires an election every three years at least. (But he also said that elections were held 12 times from 1689-1715). There are more elections in this period than any other period in British history. Also, there are more contested elections than ever before. Thanks to inflation, more ordinary Farmers qualified for a vote under the “40 shilling franchise.” IN the local towns, each party tried to increase its memberships voting roles by manipulating the local charter. So what would happen is that one party would win and it would go through the borough charters and add its people. The net result is that you are starting to see the expansion of the franchise. By 1722, some 330,000 males had the franchise, which is 5.8 percent of the population, which is maybe a 1/5th or a quarter of the adult male population. This is by far the largest electorate in Europe. The English were the first to extend the right to Vote and the right to say things in print to the citizenry. The right to sack a ruler who didn’t rule them properly. The rest of Europe thought they were nuts. Hence the phrase, the rights of Englishmen. You couldn’t say that same phrase about the rights of a Frenchman or a Russian. England was first. Source – Robert Bucholz (paraphrased) The Politics of National Debt Notice How The Idea Operates Borrow Bank Government Question: How does it pay it back? How does government pay it back? 0 0 0 Notice How The Idea Operates Borrow Taxes Notice How The Idea Operates Time Borrow Taxes Trick Question: Who profits and who loses from this arrangement? Who profits or loses from this arrangement? 0 0 0 Notice How The Idea Operates Borrow Answer depends upon several things • Whether it is “good debt” (will pay for itself over the long haul) Taxes • Who is paying for it. Are the rich paying more than you to pay it down? Jefferson‟s Peculiar Views attorneys J‟s view of attorneys: he grew to view attorneys as „lazy parasites who subsisted on the malice and avarice of others.‟ He also found it to be intellectually unfulfilling and too repetitive. J left the practice of law after 5 years. Jefferson‟s Peculiar Views women -- has some serious issues with women -- resented being raised by his mother after his father died. (She didn’t have the right to govern him) -- tell the story of the crush. (Scared to speak to her; watches for a year) Time Jefferson‟s Peculiar Views women -- role of women must be limited The Role of Women – Jefferson believed that the central province of women was the home, and that they had to be dependent and subservient to men. "The role of women is to soothe and calm the minds of their husbands returning ruffled from political debate." topic # 55 Jefferson‟s Peculiar Views race -- Warning! – They are disgusting at times -- racial intermingling would pollute the white race -- free African Americans could not commingle with whites (cf. native Americans versus African Americans) Jefferson‟s Peculiar Views race He notes that people like the Indians do not suffer from this [inferiority] problem; Indians simply need to be acculturated. If native Americans received the benefit of European culture, they would be ok. But African Americans can‟t improve. One of the reasons why he talked about emancipation was so he could rid VA of the scourge of Africans who lived there (that was his real motivation). Jefferson‟s Peculiar Views race -- in the next passage, note two things about him (a) the lyrical way he writes (b) his intelligence (c) his terrible, terrible racism (warning) Jefferson: Slavery is a Learned Evil – Alone at his desk where more than 100 slaves labored in the fields beyond his window, Jefferson writes, “the whole commerce between master and slave is a perpetual exercise of the most boisterous passion, the most unremitting despotism on the one part and degrading submissions on the other. Our children see this and learn to imitate it. The parent storms, the child looks on, catches the lineaments of wrath, puts on the same heirs in the circle of smaller slaves, gives a loose to his worst passions, and thus nursed, educated and daily exercised in tyranny, cannot but be stamped by it with odious peculiarities. The man must be a prodigy who can retain his manners and morals undepraved by such circumstances.” source: David McCullough lyrical prose & depth of the reflection 3/12/2007 (C) Copyright Sean Wilson. 2007. 58 Jefferson: Racism and Inferiority – “Their inferiority is not the effect merely of their condition of life. It is not their condition but nature which has produced the distinction.” Besides the differences in color and hair, he noted, “black people … [have] a very strong, disagreeable odor. They were more tolerant of heat and less so of cold than whites, more ardent after their female, but love seemed with them to be more of an eager desire than a tender delicate mixture of sentiment and sensation. Their grief‟s are transient, their existence appears to participate more of sensation than reflection.” racism as a psychological disease compare: Nazis attitudes bashing perceived or imagined toward Jewish traits; using those to form a features and framework to dehumanize perceptions 59 3/12/2007 (C) Copyright Sean Wilson. 2007. Jefferson‟s Peculiar Views race emancipation -- never frees one slave -- won’t get involved in emancipation movements Emancipation – When someone wrote him in 1826 to try to get an emancipation movement going, he basically wrote back, saying that it was not the right time. The thing that J appears to favor at least in theory is emancipation with forced deportation to Haiti. He thinks the islands in the Dominican are made for „these people.‟ Jefferson‟s Peculiar Views race emancipation -- He is against the Missouri Compromise! -- strange concept of diffusion -- translation: there is too many of “these people” Adam’s Reply – -- John Adams’ reply “my god, when have you ever seen a cancer that expanded and then evaporated?” Time Jefferson‟s Peculiar Views race Sally Hemings -- Jefferson has relations with one of his slaves -- She was of mixed-race ancestry topic # 58 Jefferson‟s Peculiar Views What to Make of all of this? “presentistic” It’s never good to judge someone outside of the world in which they were birthed But we don’t have to do this to criticize examples: him on several grounds John Adams compared to his elite peers, Jefferson’s views on race and other George Washington matters are quite problematic Alexander Hamilton Ben Franklin Time Jefferson‟s Peculiar Views What to Make of all of this? “rock-star defense” Jefferson has the mind and mannerisms of a troubled artist Hit thinks in fits and spurts. His numerous contradictions and faults are part of his complicated psychology You must understand his boisterous passions and troubled intellect to make sense of his behaviors (I am not of this view; I’m just presenting it) topic # 57 Jefferson‟s Gift Poetic Exaggeration If there is one industry that Jefferson truly has as his own, it is this • lyrical way of expressing exaggerations • he’s the equivalent of great songwriters today for his own generation (e.g. Dylan) Jefferson‟s Gift Declaration of Independence -- lyrical, flowery expression of liberty with exaggerated prose Inalienable liberty – “We hold these truths to be self-evident, that all men are created equal; that they are endowed by their Creator with certain unalienable Rights; that among these are Life, Liberty and the pursuit of Happiness.” Jefferson‟s Gift Declaration of Independence -- Not original! -- The philosophic ideas come from John Locke -- And the key phrase, “pursuit of happiness” comes from George Mason! Inalienable liberty –the Virginia Constitution – George Mason in “We… the these truths to be self-evident, that all menof acquiring “ hold enjoyment of life and liberty, with the means are created and that they are endowed by pursuing and obtaining unalienable equal; possessing property, and their Creator with certain happiness Rights; that among these are Life, Liberty and the pursuit of and safety.” Happiness.” Time Jefferson‟s Gift Declaration of Independence -- Other (similar) declarations made -- Jefferson’s is the most popular -- Gather in public to read it (entertainment genre) (compare: The Beatles) topic # 59 Jefferson‟s Failures governor of Virginia -- Benedict Arnold and other British assaults -- doesn’t even call out the militia -- the only thing he is good for is hiding government valuables and running away (they almost caught him) -- inquest is made by Virginia good 1st term President legislature, but he is cleared failure in the 2nd – (doesn’t seem to be an especially good readiness for War of commander in chief) 1812 Time Jefferson‟s Failures finances -- makes a mess of it • crop speculation is poor • doesn’t diversify his crops • spends lavishly • dies terribly in debt -- Virginia holds a lottery to retire his debts; only pays for a portion of compare his it. library to Adams’ -- His library of books is sold to the government what is coming next 4/8/2010 Copyright, Sean Wilson. 2007. 71
Pages to are hidden for
"Introduction To the Hamilton-Jefferson Dispute: Getting to Know The Participants and the Era"Please download to view full document