Category: Economists

It’s that time again to venture into the loony-fringe. There once were (ahem) woke Harvard alumni who wished to save the world from “Keynesism” among other dangers. They had their own modest foundation founded by the son of President Theodore Roosevelt and John Bircher, Archibald B. Roosevelt of the class of 1917. This post shares reports from the Harvard Crimson as well as a transcription of a four page pamphlet put out by the Veritas foundation with the title “Keynesism-Marxism at Harvard.”

In an earlier draft, I unfortunately confounded father with son, both Harvard alums, both Archies. I still include the obituary for President Theodore Roosevelt’s grandson, Archibald B. Roosevelt, Jr. who had quite a  C.I.A. career, if for no other reason than to offer some anecdotal evidence regarding the proposition that apples don’t fall far from their respective trees.

There is also some archival irony in the fact that the copy of the pamphlet “Keynesism-Marxism at Harvard” comes from the W.E.B. Du Bois papers at the University of Massachusetts.

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Veritas Foundation Given $10,000 For Probe of Economics Teaching
Pamphlet Raises Funds

By Michael Churchill, The Harvard Crimson, January 13, 1960.

The Veritas Foundation has raised “around $10,000” towards its goal of $25,000 in order to investigate the teaching of Economics at Harvard, according to Archibald B. Roosevelt [Sr.] ’17.

The money has come in response to a pamphlet circulated recently by the Foundation, “Keynesism-Marxism at Harvard” which charges that “the teaching of Economics has been abandoned at Harvard, and a political-Marxian-Keynesian-socialist propaganda has been substituted.”

A major portion of the pamphlet is devoted to attacking Keynesian theory as un-American and totalitarian. “Even a cursory analysis reveals that Keynesism is not an economic science, but is a political credo which in its main essentials coincides with the communist teachings of Karl Marx.” It specifically contends that “Keynesians attack the principle of individual thrift and personal savings” in order to undermine American initiative and freedom.

“The fountain-head of Keynesian socialism in America has been, and still is, Harvard University,” the Foundation claims, adding that its center within the University lies in the Economics Department.

“Professor Seymour E. Harris is probably the leading propagandist of Keynesism in the United States today. He has been backed by such well known economists as J.K. Galbraith, Alvin H. Hansen and Paul M. Sweezy. Other supporters of Keynesism are some remnants of the now defunct Socialist Party and a larger number of miscellaneous ‘left-wingers’ of the ADA stripe, including certain known partisans of the Soviet system,” the pamphlet declares.

Harris and Galbraith were the only active Harvard professors mentioned, Roosevelt said, because of space limitations in the four page article.

Roosevelt refused to disclose the names of the persons who prepared the preliminary report, saying that due to the battle between Keynesians and anti-Keynesians it would jeopardize the jobs of the two outside economists who contributed to its preparation.

The Foundation circular notes “Keynesian ideas enjoy almost a monopoly” in American colleges. The effect of this monopoly is that “pessimism, discouragement and the credo of despair have been skillfully instilled into the minds of our youth. It has been done with planned premeditation.”

“The prestige of Harvard University has been used to promote a destructive ideology,” it charges. Followers of the doctrine include “the whole gamut of the totalitarian world. Socialists, Nazis, Fascists, Argentine Peronistas, followers of Nehru and those in the United States who yearn for a ‘man on horseback’ have embraced the socio-economic thinking of Keynes.”

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‘Veritas’ Report To Reach 30,000

The Harvard Crimson, January 17, 1961.

A Veritas Foundation report accusing the Harvard faculty of left-wing activities will be circulated to 20,000 additional alumni, according to Kenneth D. Robertson, Jr. ’29, one of the founders of the Foundation.

The second printing will boost to 30,000 the number of copies of the study, which is called Keynes at Harvard, and is subtitled “Economic Deception as a Political Credo.”

Left wingers–“Fabians and Keynesians” have turned the Economics Department into a “virtual Keynesian monopoly,” the report claims. Citing Seymour E. Harris, Alvin H. Hansen, and other professors of Economics by name, the study points to the Department as “the breeding ground of much of the leftism in Harvard.”

A form letter was sent to thousands of Alumni urging them to buy the 114 page pamphlet, Robertson said.

The $25,000 report was financed by Alumni in response to a letter sent out by the Foundation. “Veritas” is headed by three Harvard graduates: Arthur B. Harlow ’25, William A. Robertson ’31, and Archibald Roosevelt ’31 [sic, should be class of ’17]

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KEYNESISM-MARXISM AT HARVARD

In the brief span that the Veritas Foundation has been in existence it has received an unusual number of complaints from alumni, parents, students and others who are disturbed by the twisted economic and social thinking of growing numbers of graduates and undergraduates of our colleges and universities. Large numbers of graduates entering into adult society were found to be obsessed with the concept that our free enterprise society is doomed. For years many of them have felt that it is of little use to enter into private enterprises, since such institutions are only surviving relics of the dying capitalist system which is not worth the political efforts necessary to save it.

Much of today’s college thinking reflects the following premises:

1. The private enterprise system of the United States is full of basic contradictions and fundamental flaws which inevitably will relegate it to the scrap heap. At best, some of the useful features of the private enterprise system will be tolerated but only under government control and domination until a transition to something different is evolved.⁽¹⁾
2. Manufacturers, merchants, bankers and the host of corporate executives of the country are hopelessly reactionary and incapable of understanding the need of the “new order”.⁽²⁾ These same “leaders” are somehow not so “good” or not so “kind of heart” as are those who belong to the ranks of “organized” labor. They are incapable of concern for the “social good”.
3. Thrift, savings, ownership and accumulation of private property are harmful to society and are not socially compatible with the “new order” which is rising out of the ashes of the “old capitalist” system throughout the, world. In fact, the new Welfare State will handle entirely the basic security of the individual by dominating and regimenting all segments of society so that there will always be “full” employment and “maximum” production. This will eliminate the need for a personal nest egg for the future and thus savings and accumulations of wealth become unnecessary to the individual, who becomes a “ward” of the state.⁽³⁾
4. Society is composed of classes and these classes are consciously banded together to protect their overall group interests. Persons who possess property, operate industry, direct the banks, and own stocks and bonds, as well as those who engage in transport and exchange goods and services are members of the capitalist class. This class is more selfish, grasping, hard hearted, calculating and reactionary than the rest of the population. This class also bands together in a conscious plot to keep the rest of society in economic and political subjection.⁽⁴⁾
5. The scope of government must be expanded to stand as a “third force”, gradually expropriating or redistributing the wealth of existing capitalists through unrestricted powers of taxation and at the same time preventing the accumulation of any new capital. This philosophy is represented as essential to any “progressive” or “liberal” society. The process of gradual taking over by government of all productive enterprise, accompanied by less and less private saving and unlimited national debt will somehow eliminate recurring cycles of mass unemployment and depression, followed by short lived prosperity. Government must control all fiscal and monetary policies as well as all production, distribution of goods and services.⁽⁵⁾
6. College and university graduates can insure their personal future by attaching themselves to government bureaucracy, which is destined to expand indefinitely. Other alternatives presented are large corporate “bureaucracies” which are destined to socialization by government, or the huge tax-free foundations which are considered mere precursors of future government agencies.

The above philosophy may sound like communist Marxist propaganda, but it isn’t. It is a basic pattern for “sneaking into socialism”. It is a type of thinking which is identified as Keynesism after an English economist, the late John Maynard Keynes. It was this pattern that the Labor Party in Great Britain followed in its efforts to convert that nation into a Welfare State.

The type of thinking and planning that goes under the “Keynesian” label represents one of the slickest and most deceptive economic and political philosophies in the free world today. Keynesian propaganda is usually prefaced by the claim that its purpose is to “save” the free enterprise system from itself. Almost every book written by Keynesians opens with that theme. However, the remedies suggested represent some form of “creeping” socialism which will by degrees bring about a regimented society in which the government becomes the sole controlling and directing force.⁽⁶⁾

Since Keynes wrote his sensational work “General Theory of Employment, Interest and Money” — (1936), the socialist movements in the United States, Great Britain and Germany have adopted his economic and social theories as the theoretical sinews of the “new” socialism”.⁽⁷⁾

The campaign to picture Keynes as the outstanding economist of “private enterprise” is a gross misrepresentation. For a number of years (prior to his 1936 book) Keynes’ ideas were considered as an important theoretical bulwark for the older doctrine of Fabian socialism. The Fabian movement was, however, the chief impetus behind the theory and early planning of British socialism, with overtones in the communist direction. Some Fabians were later identified as part of the Soviet espionage apparatus. Another (Sir Oswald Mosley) later led a movement in support of Nazism as a totalitarian prototype for the western world to follow. A book officially endorsed by Mussolini stated flatly that Keynesian principles were in operation under Fascism.

Keynesism has been accepted in the whole gamut of the totalitarian world. Socialists, Nazis, Fascists, Argentine Peronistas, followers of Nehru and those in the United States who yearn for a “man on horse­back” have embraced the socio-economic thinking of Keynes. Even Communists (who are supposed to be wedded only to Marx) have espoused the Keynesian dogma. Earl Browder, former head of the U. S. Com­munist Party was an open advocate of Keynes’ principles.⁽⁸⁾

The spread of Keynesian concepts throughout American colleges and universities has been phenomenal. It has grown to such dimensions that today in both the graduate and undergraduate fields of political economy the Keynesian ideas enjoy almost a monopoly. Except in our schools of Business Administration, the classical concepts of capitalism, private property, and the market economy have either been completely excluded from our colleges or are given a twisted and perverted presentation by Keynesian advocates. Sound economic principles are pictured as obsolete and inadequate for a modern industrial society.⁽⁹⁾

In tracing the growth of these ideas it soon becomes obvious that the fountain-head of Keynesian socialism in America has been, and still is, Harvard University. Harvard, on account of its academic prestige, was chosen the “launching pad” for the Keynesian rocket in America. Although the Keynesian concepts have spread throughout various departments of Iearning at Harvard the source and center of this ideology can be traced to the economics department of the college and its graduate school. The current chairman of this department, Professor Seymour E. Harris, is probably the leading propagandist of Keynesism in the United States today. He has been backed by such well known economists as J. K. Galbraith, Alvin H. Hansen and Paul M. Sweezy. Other supporters of Keynesism are some remnants of the now defunct Socialist Party and a larger number of miscellaneous “left-wingers” of the ADA stripe, including certain known partisans of the Soviet system.

In spite of some differences as to how to reach their goal, the advocates of Keynesism, like all the “left­wing” groups, belong to what may be called a political underworld. In the criminal underworld the various elements may cheat, shoot and kill one another, but they nevertheless present a general united front against their common foe, the police. The “left-wing” political underworld is likewise composed of elements that can fight each other, even unto death, but they consistently present a united front against the capitalist system.

The roster of those who have joined the Keynesian band wagon ranges from moderate socialistic “liberals” to the most ardent pro-soviet protagonists. The bulk of them, while claiming to be non-communists, eagerly join in the chorus against those who investigate communism, be they Congressional Committees, independent organizations or private individuals. The Keynesian crowd, in large measure, furnish support for the defense of those accused as Soviet spies and militantly uphold the right of communists to practice their subversion.⁽¹⁰⁾

Even a cursory analysis reveals that Keynesism is not an economic science, but is a political credo which in its main essentials coincides with the communist teachings of Karl Marx. Official communist publications accuse the Socialists of plagiarizing Karl Marx by offering Marxian theories under a Keynesian coating. Essentially the communist complaint against Keynesism is correct. Keynesism is basically Marxist in content. It is the same old wine in the same old bottles, but the labels are different.⁽¹¹⁾

Keynesism, however, has a more subtle and deceptive approach than Marxism. Marxism openly announces its intent to overthrow the capitalist system. Keynesism gives lip service to the saving of capitalism, while its covert policies are calculated to make capitalism unworkable.

Marxism uses the regularly recognized economic terms in propounding its theory while Keynesism has invented an entire new nomenclature to replace the accepted terminology used in our classical economics.⁽¹²⁾ Thus, in one fell swoop, the Keynesians have attempted to side track, by-pass and confuse, all minds previously educated in economic thinking, relegating them, so to speak, to the scrap heap. The new terms which are more abstract and vague than the time tested old ones, make it possible to indoctrinate an entire generation of college students exclusively with Keynesian dogma; while leaving it totally ignorant of the workings and benefits of our classical economic society. Keynesism (with its accompanying partner Marxism) dominates the sociological thinking in the academic world today. Students today cannot even understand the language of the pre-Keynesian treatises.⁽¹³⁾

A whole generation of college trained youth has been infected with the virus of Keynesism and Marxism.

Tens of thousands of young minds have been taught to lose faith in the economic system that has made the United States what it is today. Thousands of our future leaders have been discouraged from applying their personal initiative and talents towards the strengthening and perfection of the private enter­prise system. Pessimism, discouragement and the credo of despair have been skillfully instilled into the minds of our youth. It has been done with planned premeditation.

Keynesians attack the principle of individual thrift and personal savings. Their policy is fundamentally contrary to a “peoples capitalism” which encour­ages the small investors to become the owners of American corporations on an ever-increasing scale.

Tyrannies of all kinds, in the course of history, have always stifled individual savings. It is the savings of millions of Americans that have made it possible for our people to remain free. Corporations and governments that depend on the contributions of citizens to maintain operations must be the servants and not masters of these millions.

The modern political “left-wing” is fully aware of this fact. That is why they are so unanimous in branding the thrifty as “anti-social” and “producers of panics.” All collectivists are deathly afraid that, if the principle of saving is allowed to continue, a genuine “peoples capitalism” will continue to improve, expand and strengthen our modern American society.

Preliminary research has uncovered a mass of evidence in support of the thesis outlined above. The prestige of Harvard University has been used to promote a destructive ideology which has spread into practically every great American university. Entire departments, bureaus, and other agencies of government on the federal, state and local level have been flooded with personnel steeped in Keynesian and Marxist thinking.⁽¹⁴⁾

Banking and business institutions, industrial corporations, trade associations and labor unions have found it increasingly difficult to employ economists that are not infected with the destructive and dangerous social philosophy of Keynesism. Some of them have been forced to train their own economists to insure the sound, productive, realistic and constructive thinking necessary for the operation and preservation of the private enterprise system.

Educational institutions that train our economics instructors, at the graduate level, have been for some thirty (30) years almost exclusively devoted to the Keynesian theory. Consequently this country is faced with the tragic fact that teachers of economics  throughout the nation are predominantly Keynesian or Marxist. For years, these Keynesian professors have infected, yearly, several hundred students who in turn became instructors and indoctrinated thousands more. Thus the process snow-balls on.

Marxism-Keynesism in our academic institutions has thus far been winning by default. There has been a lack of factual exposure. Keynesians keep repeating, in their text books, the theme that their theories are too deep and complex for the ordinary layman to understand. They lay exclusive claim to a profundity which builds a “Chinese Wall” around their dogmas. This is obviously done to discourage people outside their own inner circle from probing into their motives and intentions. The whole miasma of Keynesism is given the protective cover of “science.”(15)

The Veritas Foundation is not overawed by such claims of omniscience on the part of a group of would­be-bosses over all of society.

The text books, treatises, lectures and articles of those who run the economics department at Harvard represent the backbone of the Keynesian forces in the United States.

With your help we can get the true facts before the American people. We will unmask the methods by· which the Keynesian revolutionary virus is being injected, by degrees, into the life blood of our free society.

STATEMENT OF PURPOSE OF VERITAS FOUNDATION
AS GIVEN IN ITS DECLARATION OF TRUST

To educate the officials, teaching staffs, governing bodies, under-graduates and graduates of American colleges and universities, upon the subject of communism, the international communist conspiracy and its methods of infiltration into the United States.

[NOTES]

1. Financing American Prosperity (A symposium of Economists) published by The Twentieth Century Fund (1945) Chapter no. 4 by Professor Howard S. Ellis.

2. The National Debt and The New Economics by Seymour E. Harris, published by McGraw-Hill Book Co., Inc. (1947).

3. Ibid.

4. Saving American Capitalism edited by Seymour E. Harris Chapter XXXI (1948).

5. Ibid. Chapter XIII.

6. The Failure of the New Economics by Henry Hazlitt, published by D. Van Nostrand Co., Inc., (1959).

7. Outline of the Political History of the Americas by William Z. Foster published by International Publishers.Socialists Abandon Marx (U.S. News and World Reports, October 12, 1959).

8. Fabianism in the Political Life of Britain, 1919-1931, published by The Heritage Foundation, lnc., (1954) by Sister M. Margaret Patricia McCarran, Ph.D. The Universal Aspects of Fascism, by James Strachey Barnes, F.R.G.S., published by Williams and Norgate, Ltd., 0928). Outline of the Political History of the Americas by William Z. FosterJawaharlal Nehru by Frank Moraes, published by The MacMillan Co. (1956).The Twenty-Year Revolution by Chesly Manly.

9. The Failure of the New Economics by Henry Hazlitt.

10. Saving American Capitalism, edited by Professor Seymour E. Harris. Chapter 11 by Chester Bowles.

11. Political Economy by John Eaton, published by the International Publishers (1949)

12. The Failure of the New Economics by Henry Hazlitt. Chapter XXlX.

13. Ibid.

14. Financing American Prosperity (A Symposium of Economists) published by The Twentieth Century Fund (1945). Chapter no. 2 by Benjamin M. Anderson.

15. The National Debt and The New Economics by Seymour E. Harris. Chapter II.

Source: UMassAmherst.  W.E.B. DuBois Papers/ Series 1. Correspondence/Keynesism-Marxism at Harvard, ca. February 1961.

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HON. MARY ROSE OAKAR
in the House of Representatives
WEDNESDAY, JUNE 6, 1990

Ms. OAKAR. Mr. Speaker, I was saddened by the recent passing of Archibald Roosevelt, Jr. Mr. Roosevelt lived a full life and spent 27 years as a public servant to our country. I include in the Record his obituary, which recently appeared in the Washington Post.

The article follows:

(BY J.Y. SMITH)

Archibald B. Roosevelt Jr., 72 a retired intelligence officer who served as chief of the Central Intelligence Agency’s stations in Istanbul, Madrid and London, died yesterday at this home in Washington. He had congestive heart failure.

A grandson of President Theodore Roosevelt and a soldier, scholar, linguist and authority on the Middle East, Mr. Roosevelt viewed his calling–and its faceless, anonymous half-world of nuance and seemingly random fact–with a hard-headed realism leavened by a kind of romanticism that that has echoes of an earlier time.

After retiring from the CIA in 1974, he became a vice president of Chase Manhattan Bank and director of international relations in its Washington office. Well known in Washington social circles in his own right, he was particularly active on the diplomatic circuit during the Reagan administration, when his wife, Selwa Showker ‘Lucky’ Roosevelt, was chief of protocol at the State Department.

In 1988, he published a memoir called ‘For Lust of Knowing: Memoirs of an Intelligence Officer,’ in which he adhered so strictly to this oath to keep the CIA’s secrets that he did not even identify the countries where he had served. And although he was happy to tell interviewers that they could figure it out from his entry in ‘Who’s Who in America,’ he also was quick to explain that some Americans have forgotton what an oath is and that he would not break his even if the government told him to.

Instead, he gave his views on such questions as the nature of the CIA and why it attracted him, and on what intelligence officers should be and how they should see themselves in relation to their own country and the rest of the world.

‘We in the CIA were always conscious of having a special mission, of being the reconaissance patrols of our government,’ he wrote. Despite such vicissitudes as the Bay of Pigs disaster in Cuba in 1961, he said, the agency kept its esprit de corps even though with the passage of time it `was no longer a band of pioneers, but an organization.’

As for intelligence officers, Mr. Roosevelt said he thought of them in ‘the old-fashioned sense, perhaps best exemplifed in fiction by Kipling’s British political officers in India.’

His notion embodied a high ideal, indeed, for the intelligence officer ‘must be able to empathize with true believers of every stripe in order to understand and analyze them. …. He must, like Chairman Mao’s guerrillas, be able to swim in foreign seas. But then he must be able to pull himself to shore, and look back calmly, objectively, on the waters that immersed him.’

Most important, he said, the intelligence officer ‘must not only know whose side he is on, but have a deep conviction that he is on the right side. He should not imitate the cynical protagonists of John Le Carre’s novels, essentially craftsmen who find their side no less by his own account, the product of a ‘conventional, Waspish, preppy world’ and was destined for a conventional career on Wall Street. He managed to escape this fate, he said, because he `lived in another world of my imagination.’

Archibald Bulloch Roosevelt Jr. was born in Boston on Feb. 18, 1918. He graduated from Groton School and then went to Harvard, where he graduated in the class of 1940. While an undergraduate, he was chosen as a Rhodes Scholar, but was not able to accept because of the outbreak of World War II in Europe. His first job was working for a newspaper in Seattle.

During the war, he became an Army intelligence officer. He accompanied U.S. troops in their landing in North Africa in 1942 and soon began to form views on the French colonial administration and the beginnings of Arab nationalism. Later in the war he was a military attache in Iraq and Iran.

In 1947, he joined the Central Intelligence Group, the immediate forerunner of the CIA. From 1947 to 1949, he served in Beirut. On that and on all of his subsequent assignments abroad, he was listed in official registers as a State Department official.

From 1949 to 1951, he was in New York as head of the Near East section of the Voice of America. From 1951 to 1953, he was station chief in Istanbul. From 1953 to 1958, he had several jobs at CIA headquarters in Washington. In 1958, he was made CIA station chief in Spain. From 1962 to 1966 he held the same job in London. He finished his career in Washington.

Through it all he pursued an interest in languages. A Latin and Greek scholar when he was a boy, he had a speaking or reading knowledge of perhaps 20 languages, including French, Spanish, German, Russian, Arabic, Hebrew, Swahili and Uzbek.

Mr. Roosevelt’s marriage to the former Katherine W. Tweed ended in divorce.

In addition to Selwa Roosevelt, to whom he was married for 40 years, survivors include a son by his first marriage, Tweed Roosevelt of Boston, and two grandchildren.

Source:  https://web.archive.org/web/20200525140528/https://fas.org/irp/congress/1990_cr/h900607-tribute.htm