"In every single case before the rise of totalitarian governments there had been a period dominated by economic planners. Each of these nations had a era under starry-eyed men who believed that they could plan and force the economic life of the people. They believed that was the way to correct abuse or to meet emergencies in systems of free enterprise. They exalted the State as the solvent of all economic problems.
"These men thought they were liberals. But they also thought they could have economic dictatorship by bureaucracy and at the same time preserve free speech, orderly justice and free government. They might be called the totalitarian liberals. They were the spiritual fathers of the New Deal.
"These men are not Communists or Fascists. But they mixed these ideas into free systems. It is true that Communists and Fascists were round about. They formed popular fronts and gave the applause. These men shifted the relation of government to free enterprise from that of umpire to controller. Directly or indirectly they politically controlled credit, prices, production or industry, farmer and laborer. They devalued, pump-primed and deflated. They controlled private business by government competition, by regulation and by taxes. They met every failure with demands for more and more power and control...When it was too late they discovered that every time they stretched the arm of government into private enterprise, except to correct abuse, then somehow, somewhere, men's minds became confused. At once men became fearful and hesitant. Initiative slackened, industry slowed down production.
"Then came chronic unemployment and frantic government spending in a effort to support the unemployed. Government debts mounted and finally government credit was undermined. Out of the miseries of their people there grew pressure groups -- business, labor, farmers demanding relief or special privilege. Class hate poisoned cooperation."
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