Philip Dru: Administrator: a Story of Tomorrow, 1920-1935" is a futuristic political novel published anonymously in 1912 by Edward Mandell House, an American diplomat, politician and presidential foreign policy advisor. His book's hero leads the democratic western U.S. in a civil war against the plutocratic East, and becomes the dictator of America. Dru as dictator imposes a series of reforms that resemble the Bull Moose platform of 1912 and then vanishes.
The Council on Foreign Relations was founded in 1921 by Edward Mandell House, who had been the chief advisor of President Woodrow Wilson. Actually, he was more than just a prominent aide of the President; he dominated the President. He was referred to as Wilson’s “alter ego” (other self), and was credited for being the most powerful individual in the United States during the Wilson Administration from 1913 until 1921.
House was a Marxist whose goal was to socialize the United States. In 1912, House wrote the book “Philip Dru: Administrator” in which he stated that he was working for “Socialism as dreamed of by Karl Marx.” In this book, House laid out a plan for the conquest of America, telling how both the Democratic and Republican Parties would be controlled, and be used as instruments in the creation of a socialistic government. And he asked for the establishment of a state-controlled central bank, which were both proposed in “The Communist Manifesto”. And it was in 1913, during the very first year of the House-dominated Wilson Administration, that both of these proposals became law. The Federal Reserve Act was passed, which brought into power a private central bank to create the money of the United States, taking this power away from the united States Congress. And the 16th Amendment to the United States Constitution, the graduated income tax as proposed by Karl Marx, was also ratified.
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Burnham’s “The Managerial Revolution,” he makes the case that if socialism were possible, it would have occurred as an outcome of the Bolshevik Revolution, but what happened instead was neither a reversion back to a capitalist system nor a transition to a socialist system, but rather a formation of a new organizational structure made up of an elite managerial class, the type of society he believed was in the process of replacing capitalism on a world scale.
He goes on to make the case that as seen with the transition from a feudal to a capitalist state being inevitable, so too will the transition from a capitalist to managerial state occur. And that ownership rights of production capabilities will no longer be owned by individuals but rather the state or institutions, he writes:
“Effective class domination and privilege does, it is true, require control over the instruments of production; but this need not be exercised through individual private property rights. It can be done through what might be called corporate rights, possessed not by individuals as such but by institutions: as was the case conspicuously with many societies in which a priestly class was dominant…”
Burnham proceeds to write:
“If, in a managerial society, no individuals are to hold comparable property rights, how can any group of individuals constitute a ruling class?
The answer is comparatively simple and, as already noted, not without historical analogues. The managers will exercise their control over the instruments of production and gain preference in the distribution of the products, not directly, through property rights vested in them as individuals, but indirectly, through their control of the state which in turn will own and control the instruments of production. The state – that is, the institutions which comprise the state – will, if we wish to put it that way, be the ‘property’ of the managers. And that will be quite enough to place them in the position of the ruling class.”
Burnham concedes that the ideologies required to facilitate this transition have not yet been fully worked out but goes on to say that they can be approximated:
“from several different but similar directions, by, for example: Leninism-Stalinism; fascism-nazism; and, at a more primitive level, by New Dealism and such less influential [at the time] American ideologies as ‘technocracy’. This, then, is the skeleton of the theory, expressed in the language of the struggle for power.”
This is to be sure, a rather confusing paragraph but becomes clearer when we understand it from the specific viewpoint of Burnham. As Burnham sees it, all these different avenues are methods in which to achieve his vision of a managerial society because each form stresses the importance of the state as the central coordinating power, and that such a state will be governed by his “managers”. Burnham considers the different moral implications in each scenario irrelevant, as he makes clear early on in his book, he has chosen to detach himself from such questions.
Burnham goes to explain that the support of the masses is necessary for the success of any revolution, this is why the masses must be led to believe that they will benefit from such a revolution, when in fact it is only to replace one ruling class with another and nothing changes for the underdog. He explains that this is the case with the dream of a socialist state, that the universal equality promised by socialism is just a fairy tale told to the people so that they fight for the establishment of a new ruling class, then they are told that achieving a socialist state will take many decades, and that essentially, a managerial system must be put in place in the meantime.
Burnham makes the case that this is what happened in both Nazi Germany and Bolshevik Russia:
“Nevertheless, it may still turn out that the new form of economy will be called ‘socialist.’ In those nations – Russia and Germany – which have advanced furthest toward the new [managerial] economy, ‘socialism’ or ‘national socialism’ is the term ordinarily used. The motivation for this terminology is not, naturally, the wish for scientific clarity but just the opposite. The word ‘socialism’ is used for ideological purposes in order to manipulate the favourable mass emotions attached to the historic socialist ideal of a free, classless, and international society and to hide the fact that the managerial economy is in actuality the basis for a new kind of exploiting, class society.”
Burnham continues:
“Those Nations – [Bolshevik] Russia, [Nazi] Germany and [Fascist] Italy – which have advanced furthest toward the managerial social structure are all of them, at present, totalitarian dictatorships…what distinguishes totalitarian dictatorship is the number of facets of life subject to the impact of the dictatorial rule. It is not merely political actions, in the narrower sense, that are involved; nearly every side of life, business and art and science and education and religion and recreation and morality are not merely influenced by but directly subjected to the totalitarian regime.
It should be noted that a totalitarian type of dictatorship would not have been possible in any age previous to our own. Totalitarianism presupposes the development of modern technology, especially of rapid communication and transportation. Without these latter, no government, no matter what its intentions, would have had at its disposal the physical means for coordinating so intimately so many of the aspects of life. Without rapid transportation and communication it was comparatively easy for men to keep many of their lives, out of reach of the government. This is no longer possible, or possible only to a much smaller degree, when governments today make deliberate use of the possibilities of modern technology.”