On August 15, 1971 President Richard Nixon went on live television and announced to the Nation his intention to institute Wage and Price Controls.
As Nixon settled into a grumpy retirement in Yorba Linda, California on August 8, 1974, the newly fledged Libertarian Party was experiencing a surge of growth and excitement along with internecine warfare. About that time I heard Toni Nathan on the radio. I sat there, crying and holding my baby daughter. Later that day I joined the LP. The LP began as an organization that looked to individuals to take action themselves in accordance with their inherent, natural, rights, which pre-exist all government. This was the mission statement of the Declaration of Independence. As the structure of the organization congealed a conflict of visions began, pitting the top down style of traditional American political parties with the spontaneous, local organizing which characterized its first several years. The lack of formal structure and innovation fired ever more activism, a reprise of the Goldwater Movement.
Into this mix came a recent graduate of UC Berkeley, back in his hometown of Los Angeles and making his way as a financial adviser.
His name was Edward H. Crane, III. Crane was elected Southern California Vice-Chairman for the Libertarian Party of California. While doing research for this memoir I could find not one instance of local organizing or activism carried out by Ed Crane while serving in that capacity.
Crane was intent on moving up in the hierarchy of the Libertarian Party. To do that he needed to ensure one happened. A newly fledged financial planner, he came out of the office of Southern California Vice Chairman of the Libertarian Party of California and with the help of the man acknowledged to be the best floor manager for campaigns in recent history, John Hix, took the office of Chairman of the Libertarian Party at the Dallas Convention in 1974.
Crane's personal habits say a lot about who he is.
I was sitting on the floor with my daughters, Dawn and Ayn, ages 2 and 1, celebrating our success in qualifying Roger MacBride as the LP nominee for President in 1975 and fell into conversation with a woman sitting next to me. Her name was Maureen, as I remember. Maureen told me about her experiences in working for the LP and with Ed Crane. She said women were scheduled to come over to the 'office' every hour. The first half hour was spent typing. The second half hour in bed with Ed. As she left, the next woman was arriving. Nothing I later observed about Crane from that date to this caused me to doubt her honesty.
Beware those ambitious for fame, glory and sex and willing to deceive to achieve. They may be psychopaths.
Over the next years, under the direct management of Ed Crane, the Libertarian Party was converted into a top down organization, losing the networking, initiative, and innovation at the local level, which had provided its power. It would still retain its 'name brand power,' however, a value worth controlling.
One of the early respected leaders of the Libertarian Party was Roger MacBride. MacBride was the Elector from Vermont who bolted the GOP to cast his electoral vote for John Hospers in December of 1972. Roger, the adopted grandson and heir of Rose Wilder Lane, was well to do.
At first Crane sucked up shamelessly to Roger MacBride, according to those who were positioned to observe them. Then, after Roger introduced him to Charles and David Koch he transferred his allegiance. Talk of a think tank began almost immediately, rolling rapidly into fruition. Control of the formal structure of the Libertarian Party became the focus where before it had been local activism.
Roger's presidential campaign in 1976 had been very good for local activism.
William Hunscher, a successful entrepreneur and close friend of Roger MacBride's declared as a candidate for the Libertarian presidential nomination in 1978. Hunscher eventually spent a sizable chunk of money seeking the nomination, pledging to run a campaign focusing on encouraging local activism. Crane persuaded Ed Clark, Chief Legal Counsel for Arco, to run against Hunscher. Ed, highly respected for his good character, was a popular choice for those who had known and worked with him.
Hunscher was new to the LP and was far from being a perfect candidate. But he pledged to run full time for 18 months, a promise which weighed with activists.
To say it was a campaign of dirty tricks and payoffs understates the case. Crane, as Chairman of the LP used the resources of the LP for Clark, treating it as his personal property. In every way possible power was centralized under Crane.
The National organization, states and local groups, had a working arrangement whereby inquiries and donors were shared. The list of donors and inquiries were sent to National. National was to do the same. It soon became obvious this was not happening.
I had been elected Southern California Vice Chairman and noticed the names of large donors did not seem to be included on lists coming from the Headquarters in DC. I had a longish conversation with one woman, very well to do, who had lived nearby my family home while she and her husband were at UCLA. She had been told by the HQ, “there is no active organization in Los Angeles,” so she and other big donors, the names helpfully supplied to them by National, began organizing their own events. She was delighted to find us, but puzzled. For me the meeting was very illuminating.
Los Angeles was one of the largest local organizations, comprising seven local groups. This was not an oversight and explained many things which previously puzzled me.
Deviousness, I discovered, was the stock and trade of what we came to call the Crane Machine. To a person they reflected an attitude of arrogance, entitlement, and superiority entirely unsupported by their performance.
The Crane Group also issued White Papers for the Clark Campaign which repositioned Clark as a “Low Tax Liberal” while Ronald Reagan was explicitly using the rhetoric of freedom, rhetoric which Americans were hungry to hear, eager to believe. Using the rhetoric of freedom which originated in the Libertarian Movement, Ronald Reagan won the presidency, beginning the ongoing process of converting America to a fascist state while the Libertarian Party's Presidential Campaign said nothing much worth remembering.
Crane was responsible for the positioning of the Clark Campaign. He has never explained himself.
Reagan was personally charming, kind, charismatic. I first became aware of him through comments from my Father in 1962. I believe they met through the Republican discussion group my father ran at UCLA for many years. Father was asked to go to Sacramento with Reagan as governor and again to Washington when Ronnie was elected President. Father refused.
Reagan was not a Conservative. What happened to America happened to California during Reagan's two terms there as Governor. In 1975 United Republicans of California, UROC, had begged Americans not to support Ronnie if he ran for president or vice-president. No one listened. Here is the UROC Resolution. I rekeyed the last copy so you can get it online.
The Clark White Papers were issued to the media. Their message went along with the 'low tax liberal' positioning adopted by Ed Crane. Activists found it impossible to obtain copies. My own efforts to read them myself continued until 1984. I later learned from Bob Hunt, a long time Libertarian who lived and lives in DC, that piles of White Papers were still in their store room as late as 1999.
Even with David Koch on the ticket, Koch personally contributed millions, the 'big win' in votes or respect for the ideas of freedom promised by the Crane Machine died an ugly death, leaving the Clark Campaign in debt. Crane then abandoned the candidate leaving Ed and Alicia Clark to pay off the debt themselves.
The Kochs were not pleased either. Millions had been expended in large salaries, media, and for fundraising efforts which failed to break even. “Alternative 80,” a 'fundraiser' held which was to be, in effect, an early Money Bomb, both raising money and exciting mainstream interest, fizzled. The event linked events across the country which viewed the entertainment taking place at the Century City Hotel in the late summer, 1980. Phones were ready to receive the calls of eager donors. Calls did come in – but not enough for the event to break even.
I learned that even billionaires have limits in the elevator after the event. The doors opened and as I got in I recognized Ed Crane being quiet as Charles Koch expressed his unhappiness with the money spent, his commentary unimpeded by my rapt attention.
A subset of the Craniacs, organizing under Howie Rich, would become active in another deceptive and covert enterprise in the early 90s aimed at suborning the electoral process.
The names of contributors would be recycled into the Cato Institute. The only thing that surprised me was the cooperation Crane was receiving from Murray Rothbard, who was named to the Cato Board of Directors.
Rothbard was the only real Libertarian involved in Cato from my perspective. However, Murray was fey the way only a Jewish academic can be. He adored the mock danger of political battles but for the most part lived in the cerebral world of economic theory. After Ludwig von Mises Murray was The Free Market economist, clearly enunciating, despite his love of argument, the verities of a real free market.
About that time I sent a button to Crane at the Cato HQ in DC.
I believed then, and now, when government is involved there is no free market. A free market defends our inherent rights as individuals by allowing each a 'Yes' to what we want and a 'No' to unacceptable choices. Where individuals are denied the exercise of their right to choose no free market can respond to provide the desired choices and there is no freedom, only privilege.
It was Rothbard's insistence on this position which, it was generally believed, caused him to be ousted from the Cato Board of Directors in early 1981. In the public eye he was replaced, as a spokesman for the “Free Market' by Milton Friedman. Friedman was no proponent of the free market, but a monetarist. Aaron Director, known for his integration of law and economics, married to Milton's sister, referred to Milton as, “his New Deal brother-in-law,” according to Butler Shaffer who knew both men. Asked his opinion of Friedman on the free market Butler agreed, “as you cannot be a little bit pregnant so you cannot suggest withholding tax and call yourself an advocate of the free market.”
The Koch brothers were the major funders of Cato from its founding on. It was at the insistence of Charles Koch that Rothbard was thrown off the Board of Directors and denied compensation. By so doing the best defender of the free market was marginalized. The rebranding of the word, “Free Market,” followed.
Koch Industries advocated not free markets but markets manipulated to disallow choices which would not profit them and enforce choices which would. Koch Industries today profits from the Corporate War in Iraq with Halliburton as it did in Vietnam with Halliburton during the Vietnam Conflict.
One of the first acts of the Bush Administration in 2001 was to quash the nearly 400 major EPA violations enforced against Koch Industries.
Along with Phillips and TRW, Koch Industries shares a history of repeatedly violating workplace and environmental laws while being numbered among the nation's largest government contractors, according to Holding Corporations Accountable. The article on the Holding site originally appeared as US: Unjust Rewards, by Ken Silverstein, in Mother Jones, May 1st, 2002. According to the article, “the three corporations received a combined total of $10.4 billion in federal business-at the same time that regulatory agencies and federal courts were citing the companies for jeopardizing the safety of their employees, polluting the nation's air and water, and even defrauding the government.”
In August of 1996 two teenagers, Danielle Smalley and Jason Stone, both 17, were burned nearly beyond recognition in an explosion caused by the petroleum giant. “Koch officials conceded in court that corrosion control had been inadequate and that the company had not effectively distributed information to the public on how to recognize and respond to a pipeline leak,” the statement appearing on the site of the attorney who represented the grieving family, Jim Arnold Associates.
The deaths resulted in an award of “$296 million, the largest award for actual damages in a wrongful-death case in the nation's history. Koch appealed, then settled with Smalley.” The sum collected was between 25 and 30 million, which the family used to set up a foundation in their daughter's memory.
Rebranding is an obvious ploy once it is pointed out. The question must be posed to old timers in the movement as to why they did not speak out when the process was going on. Two other examples of rebranding which still haunt us are 'privatization' and 'deregulation.'
To privatize, used correctly, would be to return control to individuals. The correct word in this context is 'corporatize,' or 'converting the rights of individuals into commodified units, allowing these rights to be sold by government to corporations. This was true of garbage pickup, where your garbage became such a commodity in the 1970s. It is true of the toll roads in Texas today.
Deregulation removed limitations on the actions of entities who had abused the power they accrued through prior relations with government and in violation of both statute and common law. And example of this is Standard Oil, which profited from outright violent criminal behavior in establishing an effective lock on the market of oil. Other examples include power companies which received government subsidies in producing power generation or had those resources transferred to them and were classified by statute as 'semi-governmental entities' and excused from responsibility for their actions. The cancellation or limitation of liability is an intolerable interference with the market. Any limitation of liability makes a free market impossible.
Instead of regulating industries the solution was to ensure the legal system could assert accountability. In allowing corporations to exist the problem created with unequal parties in disputes was bound to occur, and did.
The 80's saw the continued conversion the ideas of Libertarianism to the use of ever bigger government and ever fatter corporations. The redefinitions of words, including 'free market, now installed in NeoConservatism as well, took place through the coordinated work of Ed Crane, Cato, and an array of think tanks and journalists who consistently used, and use, the words in their converted form.
Since most people pick up definitions by usage much of this would have been accidental.
Cato's assault on the Libertarian Party began when Alicia Clark was elected National Chairman in 1981. Alicia was a woman and had just experienced the ugliness of Crane's manipulations during her husband's campaign. The Crane Machine found a candidate for Chairman to oppose Alicia. He lost.
The Crane Machine immediately went into overdrive. The then Executive Director was ignoring orders from Alicia and spending hours on the phone with Crane, who was still in San Francisco at the time. Alicia fired him and changed the locks on the office, always a woman of decision.
At the moment Crane did not control the LP the Crane Machine began an overt drive to take Alicia out of office. It failed.
At the next presidential nominating convention the abrupt withdrawal of unopposed candidate Gene Burns, well known talk show host, just months before the nominating convention brought two candidates into the field. David Bergland had been the VP candidate for Roger MacBride in 1976. Earl Ravanel, the candidate fielded by Crane, was viewed as Crane's bid to rerun the Clark Campaign with Crane in control.
Crane and Ravenal lost. Crane and his cohort walked out, despite their promises to heal previous disagreements and work for the winning candidate. Immediately afterward attempts to destroy the LP began. Calls were made to valuable activists across the country urging them to leave the LP and reregister Republican. I received several such calls from John Fund who I had known since 1980.
After nearly a full decade the cadre of people around Crane, which was pretty much unchanged since their exit from the New York Convention in 1983, acquired a new toy. That was an organization the Koch Brothers had not been able to use effectively, the Citizens for Congressional Reform.
Acquiring this not for profit spawned an incredible proliferation of identical not-for-profit organizations, each dedicated to doing pretty much the same thing. Visually, their sites appeared to have been created by the same web designers. Each used a stealth approach to electoral politics, employing lavish rhetoric to justify using the initiative process to change the laws in states where this was allowed. This fit in exactly with the original game plan of the Crane Machine. Crane had always viewed local activists as an obstacle to action within the LP unless those acting locally were directly under his control.
In employing this growing collection of nonprofits Howie extended this approach to Americans as a whole. The first of these organizations, U. S. Term Limits, focused on limiting the number of terms for any elected legislator. It was followed by initiatives promoting an end to eminent domain, school choice, and spending caps by government and eventually measures such as legislation relating to end of life issues raised by the Terry Schrivo Case.
Many individuals in various states had worked for this kind of measure; the problem was not the use of the initiative process. The initiative was introduced by the Populists to allow local people to change government, making it responsive to their needs. The problem was who was using the tool.
The initiatives themselves did not reflect the will of those who had to live with the resulting law. Even more egregiously, the initiatives were deceptively run as 'grass roots' efforts to potential donors outside the state when they lacked support within the state. No minds were changed. No freedom happened. No body of local expertise or enhanced organization remained in Howie Group's wake.
It was a reprise of the Crane – Clark Campaign, this time run at a profit. Unused funds were, according to investigative journalists, transferred into the accounts of those who Crane and Howie had known and worked with since the 70s. At best the strategy came with the underscore, “Fool them into freedom.” But there was worse.
Worse than the misuse of the Initiative process was use of this tool for the profit of corporate outsiders to diminish control by local people.
In the original vision of American government the Founders had assumed that local towns and the people who lived in them would make their own rules in how they structured their lives. This could be seen as a multitude of small experiments in living, allowing for a learning curve, helping a free people to reduce conflict as they learned to live outside of a traditional hierarchy imposed from the outside.
In some cases the Howie Machine would outspend local activists six to one to get their measures passed into law. Eventually the left noticed through the research done by Hart Williams. William's work spawned a nonprofit which followed Howie's Group to some extent, focusing on the Ballot Fraud issue.
Howie's Group learned some things from their encounter with Williams and transparency. They now all blog.
During the time, 1990 – 2007, the Howie Business Plan was revving up there was another eruption of frustration which would reprise the early days of both the Goldwater Movement and the Libertarian Party. It started on Larry King Live with an interview of Ross Perot.
On February 20, 1992 H. Ross Perot said he was willing to run as an independent if his supporters could get his name on the ballot in all fifty states. Listeners liked what they heard. With a list of declared policies including balancing the federal budget, firm pro-choice stance, expansion of the war on drugs, ending outsourcing of jobs, support for gun control, belief in protectionism on trade, advocating the Environmental Protection Agency and enacting electronic direct democracy via "electronic town halls," he became a potential candidate overnight, soon polling well with the two major party candidates. The people wanted 'someone else.' Perot was someone else.
The next day people were opening campaign headquarters across the country. The leading expert in third party ballot drives, a Libertarian named Richard Winger, who runs Ballot Access News, was found and flown into the brand new Perot HQ in Texas. It could have been a revolution - but at the very least the people were flexing their muscles, finding ways to cooperate in pursuit of a common goal.
The Perot Movement was the third spontaneous political grass roots moment in the 20th Century. It resulted in the Reform Party.
Which brings us to the very unexpected outcome of Ron Paul's decision to run for president again and the eruption of the Ron Paul R3VOLution, the first grass roots action of the 21st Century.
Congressman and physician, Ron Paul had been around the Freedom Movement since the 1970s. His run for president as the LP candidate in 1988 was largely ignored by the public. After the 1988 campaign Paul returned to the Republican Party and again ran for Congress successfully. His campaign manager, Penny Langford, continued to run the Paul reelection efforts. As she describes it, these are highly decentralized and grass roots driven themselves. Ron, according to Penny, was never very involved in campaigning.
When Paul announced his candidacy at the Free State Project most old time activists doubted he would do more than use the opportunity to speak out on the standard Libertarian issues. They were half right. Ron was talking about the same issues. But now people were listening because of the Desperation Factor.
In any population 5% of the people will try new things, ideas, products, tools, with little resistance. These are first adopters. 15% will adopt a new approach, technology, idea, tool, if they are desperate for a solution to their immediate problem. 60% of the population will adopt as soon as it looks like everyone else is doing it or if someone they perceive as high status is using the new thing. We call them Ballast. The last 20% will die before they adopt something new. We call them Dead Men Walking.
From the first debate on the divergence between the official Ron Paul Campaign and the Ron Paul R3VOLution, so named by Ernie Hancock, owner of Freedom's Phoenix and a long time Libertarian, was palpable. Ernie began putting up bill boards promoting Ron's candidacy in February, 2007, even before the official declaration took place.
As in the early days of the Goldwater Movement, the Libertarian Party, and the Perot Campaign, the ones moving the action were volunteers. It was volunteers who hammered the Ron Paul HQ, insisting a check be cut so Ron could participate in the GOP debate in South Carolina. The fuel in the engine was always volunteers.
Many became active for the first time in their lives, leaving their jobs to work full time and unpaid for the candidacy of Ron Paul.
The Internet became the nexus point, allowing individual initiative and innovation to be multiplied many times over. Adoption of strategies became seemingly instantaneous, allowing a group of people who had never met to change outcomes which previously would have been impossible to achieve.
Media, unwilling to cover Paul experienced reports from their advertisers, concerned over the calls coming in to them from Ron Paul supporters threatening to boycott their products. Market pressures worked.
The power of the Ron Paul R3VOLution continued to build until Paul stopped campaigning. Looking for an outlet for frustrated energy other projects came into form. One of these was the Tea Parties, which may have been planned as a means for redirecting the energies of the grass roots into the GOP. If that was the intention it has not worked.
The Tea Party Movement was produced by the Ron Paul R3VOLution and the frustration all of us experience when no clear goals can be identified and we are facing disaster. But while the activities taken up were similar to those of the campaign they were, in effect, an after school program with rhetoric and signs and a tee-shirt. The people, hungry for real goals, are now again frustrated.
Electing Ron Paul was never really the goal. He only symbolizes the real destination which has always been a world where our individual rights are lived out peacefully, without war. Where prosperity follows honesty and hard work. Where we tolerate differences and build community.
This was and remains the vision of America which drew millions to a New World.
Which brings us to the series of articles now being written for Integrity, the newsletter for several related websites and organizations. Build a business for yourself putting the Grid out of business.
Declaration of Independence – America's Mission Statement
Constitution – First try.
Problem: Ignored the Mission Statement.
Other Terms:
Free Market – Exchange taking place when recognition of the inherent rights of all individuals allow their choices to drive market response.