22.Lewis, “Virginia’s Northern Strategy,” 122; Hustwit, Salesman for Segregation, 170–72, 181, 184; for a sampling, see the pamphlets R. Carter Glass, Equality v. Liberty: The Eternal Conflict (Richmond: Virginia Commission on Constitutional Government, 1960); and Virginia Commission on Constitutional Government, Did the Court Interpret or Amend? (Richmond: Virginia Commission on Constitutional Government, 1960).
23.James R. Sweeney, ed., Race, Reason, and Massive Resistance: The Diary of David J. Mays, 1954–1959 (Athens: University of Georgia Press, 2008), 248, 251, 260–61.
24.Sweeney, Race, Reason, 219, 220, also 224, 261, on the strategy of avoiding the southern schools conflict and showcasing constitutional concerns shared by right-leaning northerners.
25.Ralph Harris to James M. Buchanan, October 21, 1965, BHA; Ralph Harris and Arthur Seldon, “Offering a Choice by Voucher,” attached undated clipping from the London Times; Buchanan to Arthur Seldon, November 4, 1965, BHA; Edwin West to Gordon Tullock, January 14, 1966, box 84, Tullock Papers. The Volker Fund helped subsidize the study; see Arthur D. Little to Leon Dure, September 25, 1961, box 3, Dure Papers. On the IEA’s shaping role in Thatcher’s agenda, see Richard Crockett, Thinking the Unthinkable: Think-Tanks and the Economic Counter-Revolution, 1931–1983 (New York: HarperCollins, 1994). On Dure’s successful effort to destroy the union, see Robert Rodgers Korstad, Civil Rights Unionism: Tobacco Works and the Struggle for Democracy in the Mid-Twentieth-Century South (Chapel Hill: University of North Carolina Press, 2004), 321–27.
26.Amadae, Rationalizing Capitalist Democracy, 144.
27.Murray Rothbard to F. A. Harper, “What Is to Be Done,” known as “Rothbard’s Confidential Memorandum to the Volker Fund,” July 1961, https://mises.org/library/rothbard’s-confidential-memorandum-volker-fund-what-be-done”. On Rothbard’s stature in the cause, see Brian Doherty, Radicals for Capitalism: A Freewheeling History of the Modern Libertarian Movement (Philadelphia, PA: PublicAffairs, 2007), 247.
28.Rothbard to Gordon Tullock, November 4, 1958, box 88, Tullock Papers.
29.Buchanan, Better than Plowing, 89, 95; James Buchanan, “The Sayer of Truth: A Personal Tribute to Peter Bauer,” Public Choice 112 (September 2002): 233.
30.Volker Fund announcement, 1961, box 58, Hayek Papers.
31.Janet W. Miller to Leon Dure, September 25, 1961, box 3, Dure Papers; Kenneth S. Templeton to Dure, July 7, 1960, ibid. For the foundation’s post-1955 project to promote private schooling, see William Volker Fund Records, 1953–1961, boxes 1 and 2, David R. Rubenstein Rare Book and Manuscript Library, Duke University. Anyone who sought Volker funding, one ally quipped, “should make it clear that he does not believe in public schools, highways, police departments, and other evil statist enterprises.” Doherty, Radicals for Capitalism, 187.
32.See, for example, Milton Friedman to G. Warren Nutter, May 4, 1960, box 31, Friedman Papers; Nutter to Dure, February 24, 1960, box 1, Dure Papers; Dure to Francis P. Miller, May 8, 1960, box 1, Dure Papers; Milton Friedman, Capitalism and Freedom (1962; repr., Chicago: University of Chicago Press, 2002), 6, 31, 35–36, 116.
33.Friedman reported that he had “been told” that the vouchers were a success. That was no doubt true, because Nutter and Buchanan arranged for him to have cocktails with their friend Leon Dure, the chief advocate of the freedom-of-choice vouchers (and fund-raiser for two segregation academies). “The appropriate solution of the school segregation problem,” Friedman then instructed Chicagoans, in their own fight over school integration, “is to eliminate the public schools and permit parents to send their children to the schools of their choice, as Virginia has done”; Nutter to Dure, February 24, 1960, box 1, Dure Papers; Friedman to Nutter, May 4, 1960, box 31, Friedman Papers; “U.C. Economic Experts Advise Goldwater,” Chicago Tribune, April 12, 1964, 8.
34.F. A. Hayek to Ivan Bierly, February 2, 1961, box 58, Hayek Papers; Dure to Segar Gravatt, June 4, 1964, box 2, Gravatt Papers.
35.Review of Calculus of Consent by Anthony Downs, Journal of Political Economy 72 (February 1964): 88; in a similar vein, review of Calculus of Consent by J. E. Meade, Economic Journal 73 (March 1963): 101. On Buchanan’s ties to RAND thinkers and how they reviewed one another’s work to build the authority of the enterprise, see Amadae, Rationalizing Capitalist Democracy.
36.Review of Calculus of Consent by Mancur Olson Jr., American Economic Review 52 (December 1962): 1217. Too numerous for individual citation, the other reviews, most positive, can be found in a simple library search.
37.Bruno Leoni to Gordon Tullock, January 25, 1963, box 4, Tullock Papers.
38.Medema, “‘Related Disciplines,’” 309. Unfortunately, the journal has since disappeared. On the society, see also Amadae, Rationalizing Capitalist Democracy, 145–49.
39.See, for example, the recent book by Obama’s regulation adviser, the legal scholar Cass R. Sunstein, Why Nudge? The Politics of Libertarian Paternalism (New Haven, CT: Yale University Press, 2014).
40.Buchanan, Better than Plowing, 106–7.
41.James J. Kilpatrick, “Goldwater Country,” National Review, April 9, 1963, 281–82; see also James J. Kilpatrick, “Crossroads in Dixie,” National Review, November 19, 1963, 433–35.
42.On the class, see Richard E. Wagner at Buchanan memorial conference, 2013 (author’s notes). The literature on Goldwater’s candidacy and the right turn of the Republican Party is quite large. The works I have found most illuminating for this book’s themes are Rick Perlstein, Before the Storm: Barry Goldwater and the Unmaking of the American Consensus (New York: Hill & Wang, 2001) and Kim Phillips-Fein, Invisible Hands: The Making of the Modern Conservative Movement from the New Deal to Reagan (New York: W. W. Norton, 2009).
43.Gordon Tullock to Kenneth Templeton, May 1, 1959, box 88, Tullock Papers; Tullock to Ivan Bierly, March 27 [1959], box 86, Tullock Papers; Tullock to Bierly, May 6, 1959, box 86, Tullock Papers.
44.Tullock to William F. Buckley Jr., August 8, 1961, series I, box 37, William F. Buckley Jr. Papers, Manuscripts and Archives, Yale University, New Haven, CT; Tullock to Buckley, September 19, 1961, series 1, box 37, Buckley Papers; Tullock to Douglas Cady, January 16, 1963, box 84, Tullock Papers; Joseph Crespino, Strom Thurmond’s America (New York: Hill & Wang, 2012), 132, 159. For Tullock’s later advice on how the Republican Party might exploit racism to promote realignment, see his “The Heredity Southerner and the 1968 Election,” The Exchange 29 (January 1969), box 111, William A. Rusher Papers, Library of Congress, Washington, D.C.
45.Tullock to Buckley, October 14, 1964, part I, box 33, Buckley Papers; Tullock to Buckley, November 19, 1965, part I, box 37, Buckley Papers; Buckley to Tullock, December 22, 1965, Buckley Papers.
46.Tullock to G. Warren Nutter, September 1964, box 95, Tullock Papers.
47.James Buchanan to F. A. Hayek, January 10, 1963, BHA.
48.“Colloquium on the Welfare State,” Occasional Paper 3, December 1965, 25, Thomas Jefferson Center for Studies in Political Economy, University of Virginia, Charlottesville.
CHAPTER 6: A COUNTERREVOLUTION TAKES TIME
1.Gordon Tullock to William F. Buckley Jr., October 14, 1964, part 1, box 33, William F. Buckley Jr. Papers, Manuscripts and Archives, Yale University, New Haven, CT.
2.John A. Andrew III, The Other Side of the Sixties: Young Americans for Freedom and the Rise of Conservative Politics (New Brunswick, NJ: Rutgers University Press, 1997), 203–4. Buckley had been a doubter from the outset; see Rick Perlstein, Before the Storm: Barry Goldwater and the Unmaking of the American Consensus (New York: Hill & Wang, 2001), 471–73.
3.Goldwater had no qualms, for example, in calling for what today is known as a flat tax, as Andrews had before him. Reporter Stewart Alsop put it to him to confirm: did he really believe “a man with five million a year should pay the same rate as a man with five thousand?” “Yes. Yes, I
do,” Goldwater replied. He added, as today’s advocates of capital formation would, that “the poor man would benefit from the rich man’s investments”; Stewart Alsop, “Can Goldwater Win in 64?” Saturday Evening Post, August 24, 1963.
4.Reminiscences of William J. Baroody Sr. of the American Enterprise Institute to Barry Goldwater, January 7, 1970, box 11, Baroody Papers; Don Oberdorfer, “Nixon Eyes Ex-CIA Official,” Washington Post, February 28, 1969, clipping in box 80, Baroody Papers; James Buchanan to Warren Nutter, November 4, 1964, box 80, Baroody Papers; Karl A. Lamb, “Under One Roof: Barry Goldwater’s Campaign Staff,” in Republican Politics: The 1964 Campaign and Its Aftermath for the Party, ed. Bernard Cosman and Robert J. Huckshorn (New York: Praeger, 1968), 31.
5.Hobart Rowen and Peter Landau, “Goldwater’s Economists,” Newsweek, August 31, 1964, 62–64; Warren Nutter to Gordon Tullock, July 10, 1964, box 95, Tullock Papers; Perlstein, Before the Storm, 462; Robert D. Novak, The Agony of the G.O.P., 1964 (New York: MacMillan, 1965), 439–64; Katherine K. Neuberger to Charlton H. Lyons Sr., January 4, 1963, box 155, Rusher Papers.
6.Joseph E. Lowndes, From the New Deal to the New Right: Race and the Southern Origins of Modern Conservatism (New Haven, CT: Yale University Press, 2008), 68; Kim Phillips-Fein, Invisible Hands: The Making of the Conservative Movement from the New Deal to Reagan (New York: W. W. Norton, 2009), 65–66; Robert Alan Goldberg, Barry Goldwater (New Haven, CT: Yale University Press, 1995), 177.
7.Republican National Committee, “Senator Goldwater Speaks Out on the Issues,” advertising reprint from Reader’s Digest, 1964. Goldwater was not the first to make this case; neither libertarian intellectuals nor the business right had ever accepted Social Security as legitimate. See Phillips-Fein, Invisible Hands, 12, 21, 114, 147; Perlstein, Before the Storm, 260, 500–502; Goldberg, Barry Goldwater, 184, 188; David W. Reinhard, The Republican Right Since 1945 (Lexington: University of Kentucky Press, 1983), 8, 49.
8.Dennis W. Johnson, The Laws That Shaped America: Fifteen Acts of Congress and Their Lasting Impact (New York: Routledge, 2009), 347; Perlstein, Before the Storm, 169.
9.Milton Friedman, “The Goldwater View of Economics,” New York Times Magazine, October 11, 1964; see also Alan O. Ebenstein, Milton Friedman: A Biography (New York: Palgrave Macmillan, 2007), 367–69.
10.Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 367–70; “U.C. Economic Experts Advise Goldwater,” Chicago Tribune, April 12, 1964, 8; “Right Face,” Newsweek, January 13, 1964, 73; Robert D. Novak, The Agony of the G.O.P., 1964, 334; “Friedman Cautions Against [Civil] Rights Bill,” Harvard Crimson, May 5, 1964.
11.Perlstein, Before the Storm, 462; Lowndes, From the New Deal, 105. William Rusher, the publisher of National Review and an early Goldwater backer, also argued for “freedom of association” as the best possible conservative frame for opposition to civil rights enforcement; Rusher to William F. Buckley Jr., June 18, 1963, box 40, Buckley Papers.
12.Nicol C. Rae, The Decline and Fall of the Liberal Republicans: From 1952 to the Present (New York: Oxford University Press, 1989), 74; on Birch Society influence, see 53, 57. See also Perlstein, Before the Storm; Andrew, Other Side of the Sixties, 175–76.
13.Ayn Rand, “‘Extremism,’ or the Art of Smearing,” reprinted in Ayn Rand, Capitalism: The Unknown Ideal (New York: Signet, 1967), 176, 178.
14.Friedman and Friedman, Two Lucky People, 368.
15.Nick Kotz, Judgment Days: Lyndon Baines Johnson, Martin Luther King Jr. and the Laws That Changed America (Boston: Houghton Mifflin, 2005), 261.
16.On Virginia, see Frank B. Atkinson, The Dynamic Dominion: Realignment and the Rise of Virginia’s Republican Party Since 1945 (Fairfax, VA: George Mason University Press, 1992), 30–31; Rae, Decline and Fall, 76. For astute analysis of the politics of the growing suburbs as anti-Goldwater, see Matthew D. Lassiter, The Silent Majority: Suburban Politics in the Sunbelt South (Princeton, NJ: Princeton University Press, 2006).
17.“Days Ahead” (editorial), Farmville Herald, November 6, 1964; “Record Vote Goes to Goldwater,” Farmville Herald, November 6, 1964. For the statewide vote, see Atkinson, Dynamic Dominion, 30–31; Rae, Decline and Fall, 76. My thanks to Chris Bonastia for sharing the Farmville Herald articles from his own research.
18.Ronald L. Heinemann, Harry Byrd of Virginia (Charlottesville: University Press of Virginia, 1996), 106, 412. On how the Fourteenth Amendment forever connected civil rights and federal power in law, a connection that enabled Brown v. Board of Education and much later legal reform, see Laura F. Edwards, A Legal History of the Civil War and Reconstruction: A Nation of Rights (New York: Cambridge University Press, 2015).
19.Ebenstein, Milton Friedman, 169–71, 181.
20.Kotz, Judgment Days, 261.
21.For an excellent summary of the legislative achievements, see Calvin G. MacKenzie and Robert Weisbrot, The Liberal Hour: Washington and the Politics of Change in the 1960s (New York: Penguin Press, 2008).
22.Bruce J. Dierenfield, Keeper of the Rules: Congressman Howard W. Smith of Virginia (Charlottesville: University of Virginia Press, 1987), 209, 218. In an omen of the future, however, a very conservative Republican won the general election for Smith’s former seat.
23.William K. Klingaman, J. Harvie Wilkinson Jr.: Banker, Visionary (Richmond, VA: Crestar Financial, 1994), 120–33. I am grateful to James H. Hershman Jr. for this understanding and source. On southern development efforts, see Bruce J. Schulman, From Cotton Belt to Sunbelt: Federal Policy, Economic Development, and the Transformation of the South, 1938–1980 (New York: Oxford University Press, 1991).
24.Alexander S. Leidholdt, “Showdown on Mr. Jefferson’s Lawn: Contesting Jim Crow During the University of Virginia’s Protodesegregation,” Virginia Magazine of History and Biography 122 (2014): 243, 245, 248.
25.Bryan Kay, “The History of Desegregation at the University of Virginia, 1950–1969” (unpublished MA thesis, August 1979), held by University Archives, University of Virginia, 66–70.
26.Some of his former YAF mentees at the University of South Carolina were, reported one, “picketing the newly de-segregated lunch counters”—for having conceded to violation of their liberty; John Warfield to Gordon Tullock, April 26, 1965, box 84, Tullock Papers.
27.Kay, “History of Desegregation,” 107, 117, 120; Paul M. Gaston, Coming of Age in Utopia: The Odyssey of an Idea (Montgomery, AL: New South Books, 2010), 271. On center use, see James Buchanan to Frank Knight, October 14, 1957, box 3, Knight Papers.
28.Kay, “History of Desegregation,” 107, 117, 120; Gaston, Coming of Age, 271.
29.James Buchanan to Gordon Tullock, July 12, 1965, BHA.
30.Buchanan to Warren Nutter, June 2, 1965, BHA; also Gordon Tullock to Milton Friedman, April 21, 1965, box 116, Tullock Papers.
31.“$225,000 Given for New Institute,” Washington Post, December 9, 1965, A16; “Study Slated on Potential of Virginia,” Washington Post, April 14, 1967, C6. Thanks to James H. Hershman Jr. for alerting me to the institute and sending the sources.
32.The new vision and its application is captured well in Klingaman, J. Harvie Wilkinson, 83, 87, 125, 127–30, 133.
33.Warren Nutter to Milton Friedman, July 15, 1961, box 31, Friedman Papers.
34.Nutter to James Buchanan, October 28, 1960, BHA.
35.Ibid. The revealing documentation, with the Ford program officer raising reasonable concerns and Buchanan defending the dogmatic approach, is in Folder D-234 (University of Virginia, Educational Program of Thomas Jefferson Center for Studies in Political Economy), Ford Foundation Records, Rockefeller Archive Center, Sleepy Hollow, NY.
36.Buchanan to Edgar F. Shannon Jr., January 9, 1961, box 79, Baroody Papers. More extensive documentation can be found in this box.
37.Rowland Egger to Weld
on Cooper, administrative assistant to the president, June 17, 1963, box 6, RG-2/1/2.635, series I, Papers of the President of the University of Virginia, Office Administrative Files, Manuscripts Division, Alderman Library, University of Virginia.
38.Gordon Tullock to James Buchanan, February 2, 1962, BHA; [University of Virginia] Department of Economics, “Excerpt from Self-Study Report,” 1963, box 80, Baroody Papers; George W. Stocking to Robert J. Harris, November 14, 1964, box 12, RG-2/1/2.635, series I, Papers of the President of the University of Virginia, Office Administrative Files.
39.[University of Virginia] Department of Economics, “Excerpt from Self-Study Report,” and Stocking to Harris, November 14, 1964.
40.James M. Buchanan, “What Economists Should Do,” Southern Economic Journal 30 (January 1964): 215–21; Ely quoted in Richard Hofstadter, Social Darwinism in American Thought (Boston: Beacon Press, 1955), 146.
41.For a classic, unsurpassed exposition of the devastation inflicted by the “stark utopia” of the allegedly “self-adjusting market,” see Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Time (1944; repr., Boston: Beacon Press, 1957), 3. On the tradition of legal realism, conceived in refutation of the kinds of claims Buchanan was reviving, see Morton J. Horwitz, The Transformation of American Law, 1870–1960: The Crisis of Legal Orthodoxy (New York: Oxford University Press, 1992), especially 194–98, for the realist scholars’ critique of the notion of a natural market, as opposed to markets socially and historically constructed through the policy choices of actors. They demonstrated that property itself was, per Oliver Wendell Holmes Jr., “a creation of law” (197).
42.For a luminous, and quite chilling, explication, see S. M. Amadae, Prisoners of Reason: Game Theory and Neoliberal Political Economy (New York: Cambridge University Press, 2016), especially 175–92, on Buchanan.
43.Gordon Tullock, “Welfare for Whom?” paper for a session on “The Role of Government,” Mont Pelerin Society, Aviemore Conference, 1968, BHA.
Democracy in Chains Page 36