Saturday, March 21, 2020

Essayons! When the Unthinkable turned Thinkable

Commentator P.J. O’Rourke once wrote that giving power and money to government is like handing over a bottle of whiskey and the car keys to a teenager

And many Americans have shared O’Rourke’s mistrust. Any discussion on tackling today’s problems is likely fenced in by “unthinkables” -- actions that reasonable people regard as out of bounds for the federal or state governments. If an unthinkable comes up it’s likely to provoke the immediate response, “Don’t go there!” 

Today, in terms of climate change, one political unthinkable has been a carbon tax. In the world of transit, a city ban on all personal cars. In the fight against narcotics trafficking, an unthinkable would be to decriminalize narcotics so as to cut the floor out from under the cartels and narco-states. In the military sphere, a nationwide military draft is unthinkable. In this way of thinking we're hemmed in by the impossible, on all sides.

Actually, no. Here's another lesson from World War II mobilization:  In June 1940 a group of American business and political leaders sat down to put together a list of their own unthinkables. France and Belgium had just fallen to the Germans, so the status quo was beginning to look like a sure road to ruin. They came up with nineteen unthinkable things. Each marked a political line that, so they believed, Americans would never allow its leaders to stick a toenail over, whatever the justification. Here’s a partial list, recorded in a 1943 article in the Harvard Business Review:

  • “Conscription for military service must not be used;”
  • “Possible shortages of materials must not be discussed;”
  • “Foreign service for troops is not permissible;” 
  • “Rationing to consumers is unthinkable;”
  • “All mandatory curtailment and limitation of industry is unthinkable;” and
  • “Close collaboration with a communistic government is unthinkable.”

All these and many more were in place before 1944 ended. 

Though the price was high, no revolution occurred; by mid-1944 a once-fearful citizenry was so certain of victory that it was planning on commuting by helicopter shortly after Tojo gave up. 

“Don’t go there”? Here’s where they went: income tax brackets as high as 88%, the drafting of 16 million men, an historic narrowing of the income gap between rich and poor, price controls, allocation of raw materials, renegotiation of war contracts that proved too profitable, commandeering of ships, censorship of broadcasting and movies, the shutdown of many factories making consumer goods, takeover of poorly run defense industries, 35-mph speed limits, confiscation of spare tires, and gasoline rationing. 

The unthinkables spared no one; when the beloved and iconic company Colt Arms couldn’t make .50-caliber machine guns fast or cheaply enough, the government snatched its contract away and gave it to the Brits. Colt’s refusal to adapt to circumstances helps explain why it was one of the very few old-line defense contractors that managed to lose money during the boom years. 

World War II proved that even the wickedest tangle can be cut down to size. But the solution wounds and kills. It can’t be achieved with “sector neutrality.” During World War II, many small businesses had to close, and that included thousands of gas stations and other small businesses. Some cosmetic makers and horse racing tracks were wiped out. 

The shortage of bearings and alloys at the approach of war shut down my grandfather Dick Chiles’s highway-equipment manufacturing business in Buckner, Missouri. It was a heartbreaking development, since it was his first business success after going broke three times during the Depression. 

Tough, very tough, but there was no choice. As a Detroit News editorial said when switching its stance from isolationism to support for Lend-Lease, “There is no such thing as half a war.” 

So my grandfather (a World War I tank-corps veteran) pestered his relative Harry Truman, then a U.S. Senator, to get him back in the Army; Truman pointed that Dick had lost his hand in a hunting accident and said he could not serve in uniform again. But Truman called back after two weeks with a job lined up: Dick Chiles moved to Washington and began buying up bulldozers to help rebuild the London docks.

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