When Friedrich Hayek wrote The Road to Serfdom in the midst of World War II, United States government spending accounted for over 40% of the American economy, up from a mere 3% in the 1920s. Of course, there was a war on at the time. Saving the free world doesn’t come cheap.
Hayek worried that the government’s stranglehold over the economy would continue after the war, not just in the United States but throughout the Western world. To some extent, his fears were justified. But not to a very large extent. Few of us in the Western world are serfs to our governments. French farmers maybe. But then, France is where feudalism all began.
Most Western democracies have gone down a different road to serfdom, a road that led not to central planning, but toward the increasing role of experts in public policy. In the twentieth century, domain after domain of public life has slipped out of the realm of democratic governance and into the realm of expert oversight. Democracies are increasingly governed, not by the people, nor by their representatives, but by experts.
The road toward expert government has been a long time in the making. From the very birth of modern representative democracy, experts have been looking for ways to keep power away from the people. America’s favourite rap founding father, Alexander Hamilton, argued vehemently in Federalist No.68 that the President should be chosen “by men most capable of analyzing the qualities” of the candidates, so that “the office of President will never fall to the lot of any man who is not in an eminent degree endowed with the requisite qualifications.” No prizes for guessing what he would have thought of Donald Trump.
As US states quickly moved toward universal (white) male suffrage, the experts increasingly took refuge in the courts. In 1803, the United States Supreme Court unanimously asserted the power of judicial review – the principle that the courts have the final say on all actions of government. The last president to seriously challenge this was Andrew Jackson. The courts have been the experts’ favourite branch of government ever since.
The courts were just the beginning. First in 1791-1811, and then in 1816-1836, America’s expert class created an independent central bank to take the management of government finances out of the hands of the country’s elected representatives. Though the cantankerous Andrew Jackson thwarted them again, and the US didn’t get a permanent, independent central bank until the foundation of the Federal Reserve System in 1914.
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