Richard M. Langworth
In 1854 in the United States,
President Franklin Pierce vetoed a bill to finance a
federal hospital for the mentally ill because "I find
nothing in the Constitution to authorize this." In 1896,
President Grover Cleveland opposed a bill for federal
flood relief on the same grounds. Ten years later in
Britain, when the Liberal Party swept into power in a
landslide election, the ground shifted. The Liberal Government of 1906 held it a State
responsibility to create what Churchill called "a Minimum
Standard," below which no citizen should be allowed to
fall. Not until the Franklin Roosevelt's New Deal did
similar ideas arrive in America. Churchill's
Liberals created a rudimentary welfare state twenty years
before FDR, and might have extended it had World War I
not intervened.
Little has been published on Churchill's decade as
radical-Liberal (roughly the first decade of the 20th
century) when he became disenchanted with the
Conservative Party, crossed the floor to the Liberals
and, encouraged by Lloyd George, railed against the
privileges of his class. Criss-crossing the country in
what Alistair Cooke compared to "a gigantic vaudeville
act," Churchill and Lloyd George championed old age
pensions, prison reform, unemployment insurance, public
health care, and reform (if not elimination) of the House
of Lords. Malcolm Hill, whose book addresses this obscure
period, believes Churchill's quest was "hopeless" because
he did not believe the state should "take responsibility
by taxation for retirement, education, health and
welfare"; but that Churchill showed "unusual stature" in
his efforts to mitigate poverty, far in advance of better
known reformers like Franklin Roosevelt.
Hill argues that Churchill was as great
a statesman in peace as well as war, and that his first
decade in Parliament was his finest in peacetime.
Nevertheless, Hill continues, the premature death in 1908
of the first Liberal Prime Minister, Sir Henry
Campbell-Bannerman, irrevocably altered the course of
Churchill's party. From basic reforms to eliminate
poverty, the Liberals moved to mitigate poverty's
effects: treating the symptoms rather than the disease.
Campbell-Bannerman's successor, Herbert Asquith, "had no
creative political imagination" and allowed David Lloyd
George, "a dazzling performer," to formulate domestic
policy, with Churchill as his "admiring lieutenant."
Together they devised "popular schemes for national
insurance against unemployment and sickness, labour
exchanges, schemes against 'sweated labour' and the like,
without thought of the reason why the great majority of
society found themselves in such a condition of poverty."
This set back the course of true reform for a century to
come.
Hill considers Churchill's radical years in twelve
chapters ranging from his entry into Parliament through
the Parliament Bill debate of 1911, and in a final
chapter, "The Passing of Radicalism" ("The End of
Radicalism" as the chapter heads read in a rather loosely
edited book.) By 1912, Hill concludes, "the issues were
slipping from political life. Churchill's love of the
bright lights and ambition allowed the question to fade
in his political thinking....The First World War finally
buried liberal thinking." The promises of free trade and
taxation reform, which Hill thinks would have helped to
eliminate poverty at its root, were lost with the Great
War. "Political thought has not recovered its pre-war
scale. The people have become more heavily oppressed and
government has become increasingly powerful, but
impotent." The question Churchill
asked still remains: "...what is the general cause in
society of poverty among able-bodied persons? That alone
contains as large a question in peacetime as survival
does in war. Why should such a noble creature as man live
under injustice when not at war?"
The author, a biographer of Anne-Robert Turgot and
Henry George, believes that their concept of community
land value taxation was the key to eliminating poverty at
its source. Turgot and George saw that "communities
created land value as a natural fund for taxation and
that all man-made things should be exempt from taxation."
During settlement of the American West,
wrote the American George, all went well "as long as
settlers would work on free land. Earnings rose to what a
man or woman could earn by themselves on their own land.
But once land was fully enclosed...new arrivals had to
seek work in competition with each other from landlords.
Earnings fell to the least that a man would accept and
that depended on the state of competition between those
seeking work. A pool of unemployed dragged the
level of earnings to the minimum that an unemployed man
would demand."
Campbell-Bannerman and Churchill grasped the nature of
poverty, Hill says, but Lloyd George didn't. Once
Churchill attached himself to Lloyd George as junior
lieutenant, true reform was lost to political expediency.
Lloyd George had no political principles, Hill believes,
and attempts at land value taxation were gradually
whittled down and disappeared. Thus perished the
opportunity truly to eliminate the cause of poverty,
giving way to government sponsored welfare schemes paid
for by direct taxation. "The
people may go about with state spectacles and state
dentures, but they may be made unemployed by the taxation
required to pay for these things. Whereas the individual
can take steps to remedy poor eyesight and poor teeth, he
cannot overcome the condition of poverty
himself."
Almost alone among the Asquith
cabinet, Hill continues, Churchill saw the truth but was
unable to serve it. Yet his 1908 statements on taxation
"merit inscription in gold lettering wherever men
deliberate state expenditure":
Taxation,
raise it as you please, is a gross and unredeemable
evil....All taxation is an evil, a necessary evil, if you
will, but still an evil, in so far as taxation is
concerned, harsh, unmingled, and unmitigated.... When the
state takes arbitrarily from the savings or earnings of
the people sums of money, great or small, it withdraws
that money from the healthy fructifications of industry
and trade and it diminishes cannot fail to diminish the
consuming & productive energies of the
people.
It would take a better student of taxation
and economics than this writer to evaluate Mr Hill's
argument. For example, are the issues Turgot and George
raised at the turn of the last century valid in a world
where land has long been enclosed, where millionaires are
created without any reference to landholdings? But
whatever his regrets over the opportunities squandered by
Churchill's radical decade, Malcolm Hill has rendered a
detailed and useful account of a little-known period in
Churchill's career.
It may be ironic that modern admirers of Sir Winston
point to his role in creating the English Welfare State
if, as Hill says, that concept was wrong from the
beginning because it failed to address the root causes of
poverty. It may also be that Churchill's accomplishments
during 1904-11 were comparable to what Larry Arnn has
described as his accomplishments at Yalta and Potsdam:
"the best he could do in the situation that then
prevailed."