The LaRouche-Hamilton Science of Physical Economy

October 21, 2016

The LaRouche-Hamilton Science of Physical Economy

by Matthew Ogden

“The annual produce of the land and labor of a country can only be increased in two ways: by some improvement in the productive powers of the useful labor which exists within it, or by some increase in the quantity of such labor…” — Alexander Hamilton, Report on Manufactures (1791)

With his publication of a document titled “The Four Laws to Save The U.S.A. Now,” Lyndon LaRouche has authored a concise summary of the principles to be applied to reverse the approximately half-century trend towards deindustrialization and decay which has led to the United States to the point that, for the first time in decades, death rates are now on the rise, and the country finds itself on the precipice of a Wall Street blowout of unprecedented proportions. In that document, Lyndon LaRouche prescribes four essential actions which must be taken: 1) the immediate restoration of Franklin Roosevelt’s Glass-Steagall, 2) the return to the policies of National Banking, 3) the issuance of vast flows of credit towards generating a dramatic increase in the skills and productivity of the U.S. labor force, and 4) the adoption of a crash-program to achieve an entirely new economic platform, defined by controlled thermonuclear fusion technology and space exploration, which, LaRouche states, is an affirmation of the creative nature of man as distinguished from other forms of life.

LaRouche identifies these “four specific, cardinal measures” as being “fully consistent with the specific intent of the original U.S. Federal Constitution, as had been specified by U.S. Treasury Secretary Alexander Hamilton.”

Hamilton was a revolutionary founding father of the United States and, more significantly, the founder of a revolutionary new science of economics which freed mankind from its former slavery to a feudalistic system of the belief in raw labor power, much as Prometheus freed mankind from its slavery to Zeus by giving man access to “fire.” Rather than an oligarchical society attempting to support itself through the exploitation of the raw animal labor of its people—an evil which continued to dominate the slave system of the Southern Confederacy—Hamilton demonstrated that through the application of technology the productive powers of a society’s labor force may be multiplied, while at the same time increasing the quality of life for the entire society.

In his watershed series of reports to Congress, culminating in his Report on Manufactures (1791), Hamilton spelled out this new science of economy, which was later proven with the unparalleled rates of growth and economic progress achieved under Hamilton’s personal guidance as Secretary of the Treasury. Every time Hamilton’s principles have been adhered to, our nation has experienced great leaps in economic growth, progress, and prosperity; every time Hamilton’s principles have been neglected (or rejected), our nation has been thrust into economic collapse, deterioration, and decay.

“The Next Great Work to be Accomplished”

Contrary to Thomas Jefferson and his followers, who wished the United States to remain a feudalistic, slave-based plantation society dependent on cash crops for export, Hamilton committed to a radical new system based on the urgent and rapid industrialization of the newly independent republic, which he declared to be "the next great work to be accomplished" following the securing of political independence with the victory of the Revolution. He begins the Report on Manufactures by refuting the varied arguments of Jefferson and his supporters. The reality, as Hamilton demonstrates, is that in fact an economy which is dependent on agriculture alone can support a far lower population density than an economy engaged in manufacturing and agricultural cultivation both. A nation possessed of both manufacturing and agriculture has a far greater potential population density, Hamilton states, because “each furnishes a certain portion of the produce of his labor to the other, and each destroys [consumes] a correspondent portion of the produce of the other. In the meantime, the maintenance of two Citizens, instead of one, is going on; the state has two members instead of one; and they together consume twice the value of what is produced from the land.”

Hamilton continues: “The annual produce of the land and labor of a country can only be increased in two ways: by some improvement in the productive powers of the useful labor which actually exists within it, or by some increase in the quantity of such labor.” Without merely increasing the quantity of labor engaged in a given task, increased production by the existing labor force can only achieved by means of “improvement in its productive powers, whether to be derived from an accession of skill, or from the application of ingenious machinery.” Hamilton states as the central thesis of his Report on Manufactures “that the establishment and diffusion of manufactures have the effect of rendering the total mass of useful and productive labor in a community greater than it would otherwise be… It may be inferred that manufacturing establishments not only occasion a positive augmentation of the produce and revenue of the society, but that they contribute essentially to rendering them greater than they could possibly be without such establishments.”

“To Stimulate the Activity of the Human Mind”

Hamilton enumerates seven reasons for the role manufacturing plays increasing the productive powers of labor, among which he includes “the extension of the use of machinery” which he describes as "an artificial force brought in aid of the natural force of man; and, to all the purposes of labor, is an increase of hands." He emphasizes, however, that labor power is not merely an arithmetic quantity to be considered mathematically, but in fact, the driver of economic progress is the creative power of the individuals engaged in that economy, and that the purpose of the productive activity is nothing less than “to stimulate the activity of the human mind.” The advantage of an industrial and technologically driven economy is in encouraging the individual talents of each citizen. Hamilton states:

“The furnishing greater scope for the diversity of talents and dispositions which discriminate men from each other, is a much more powerful mean of augmenting the fund of national industry than may at first sight appear. It is a just observation, that minds of the strongest and most active powers for their proper objects fall below mediocrity and labor without effect, if confined to uncongenial pursuits… When all the different kinds of industry obtain in a community, each individual can find his proper element, and can call into activity the whole vigor of his nature… To cherish and stimulate the activity of the human mind, by multiplying the objects of enterprise, is not among the least considerable of the expedients by which the wealth of a country may be promoted. Even things in themselves not positively advantageous, sometimes become so by their tendency to provoke exertion. Every new scene, which is opened to the busy nature of man to rouse and exert itself, is the addition of a new energy to the general stock of effort.”

“Minerals Acquire a Utility and Value Which Were Before Unexplored”

But perhaps the most significant factor which Hamilton identifies, which resonates directly with the central point in LaRouche's “Four New Laws” document, is Hamilton’s seventh point, “As to the creating, in some new instances, a new, and securing in all, a more certain and steady demand, for the surplus produce of the soil.” Hamilton himself states that “this is among the most important of the circumstances which have been indicated. It is a principal means, by which the establishment of manufactures contributes to an augmentation of the produce or revenue of a country…”

Hamilton’s emphasis is not only that development of manufacturing provides an domestic outlet to the natural resources of any given nation, but that it in fact creates new resources where no such resource was previously recognized: “It merits particular observation, that the multiplication of manufactories not only furnishes a market for those articles which have been accustomed to be produced in abundance in a country; but it likewise creates a demand for such as were either unknown or produced in inconsiderable quantities. The bowels as well as the surface of the earth are ransacked for articles which were before neglected. Animals, plants, and minerals acquire a utility and value, which were before unexplored.”

This point goes directly to what LaRouche identifies in his document as “the domain of a living human practice of chemistry,” which is characterized by “society’s increase of the effective energy-flux-density” of applied technologies and use of resources. The historically evident upward advances and sudden leaps in mankind’s productive powers due to the development of more efficient uses of resources or even the discovery of new, previously unknown resources and power sources, trace out the upward evolution of the human species. As LaRouche states, for this reason, this understanding of “physical chemistry” can be used as the “yardstick of history.” LaRouche writes:

“Mankind’s progress, as measured rather simply as a species, is expressed typically in the rising power of the principle of human life, over the abilities of animal life generally, and relatively absolute superiority over the powers of non-living processes to achieve within mankind’s willful intervention to that intended effect. Progress exists so only under a continuing, progressive increase of the productive and related powers of the human species.”

LaRouche cites the Russian biogeochemist Vladimir Vernadsky, who defined the new state of nature created by this distinct creative power of mankind as the “noösphere.” In a 1943 paper on the subject, titled “Some Words About the Noosphere,” Vernadsky identifies precisely the phenomenon which Hamilton cited as the emergence of entirely new resources, previously undeveloped and unexplored, as the characteristic which defines man’s progress.

“As for the coming of the noösphere, we see around us at every step the empirical results of that process. That mineralogical rarity, native iron, is now being produced by the billions of tons. Native aluminum, which never before existed on our planet, is now produced in any quantity. The same is true with regard to the countless number of artificial chemical combinations newly created on our planet. The number of such artificial minerals is constantly increasing.”

And as depicted in the following graphic, the ability of man to harness new resources and develop new minerals and other materials, depends on ever-higher forms of “fire” with increasing levels of energy density. LaRouche calls this “the essential human principle which distinguishes the human personality from the systemic characteristics of the lower forms of life: the net rate of increase of the energy-flux density of effective practice.” These technological leaps create entirely new platforms for human development, with the productive powers of labor and thus the potential population density of the human species increasing accordingly.

This principle, as presented by LaRouche, by which the creative discoveries of the human mind allow man to achieve great leaps in his productive powers through increases in energy flux density, accompanied by correlated leaps in man’s potential population density, defines the core principle of economics. As is evident from his Report on Manufactures, Alexander Hamilton understood precisely this principle, and was able to apply it to develop the young United States from a backward raw-materials producing colony into the world’s leading agro-industrial power within a very short span of time. It will be only through the application of Hamilton’s principles again, in the form of LaRouche’s four economic laws, that the United States can reverse the collapse process it is now suffering and be restored to the path of progress once again, a path which leads towards unparalleled leaps in productivity and discovery. Can you imagine what Hamilton would think of human beings developing and mining the surface of the moon for resources such as helium-3 to be used as the fuel for thermonuclear fusion? This would unleash a leap in the productive powers of man unequalled in all previous human history. As LaRouche states in conclusion of his “Four New Laws” paper: “A Fusion economy, is the presently urgent next step, and standard, for man’s gains of power within the Solar system, and, later, beyond.”

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Obamacare Falls with Obama, Rome Burns

The summary of Obamacare found in this article was originally written in March of 2010.

Americans have now irrefutably discovered what the LaRouche Organization told them seven years ago, that Obamacare, and Obama, represent a craven, evil attempt to establish the philosophy, and the specifics of Hitler’s system into U.S. law. The very foundations of the healthcare bill, in summary, tell the story.

The entire rationale of the bill, as expressed by the President, his budget director Peter Orszag, Orszag’s special advisor Ezekiel Emanuel, and others, was to cut health-care costs, which the Administration repeatedly and lyingly asserted was the cause of the fiscal problems of the United States, while they continued to pour trillions into the financial sector—a banking system which is yet again about to crash due to Obama’s failed policies.

The process for determining what health expenses are supposedly “not worth it,” were provided in the legislation, including tools such as “comparative effectiveness research.” The underlying philosophy of this research is identical to the Nazis’ view that some lives “are not worthy to be lived,” because the monetary cost of treatment is too expensive. This cost criteria was clearly identified by Dr. Leo Alexander, who attended the Nuremburg Tribunals, as the foundation for Nazi mass-murder policies including the final solution and Holocaust.

Another tool was the attempted establishment of an Independent Medicare Advisory Board, a panel of experts identical in function to that set up by Hitler in 1939, called Tiergarten 4, i.e., a “death panel.” Those experts ruled on the life or death of patients based on a fascist austerity program which fundamentally neglected the well being of the population, for the benefits of international corporations. A prime example is the ruling by the Preventive Services Taskforce on mammograms, which said without ambiguity, cut them back!

The primary targets of the cutbacks have been the old and sick, or what Hitler called the “useless eaters.” Obama expressed the same philosophy, when he said, even he was not sure that Medicare should have paid for his grandmother’s hip replacement.

Throughout this failed system, Obama has strengthened the control of the HMOs and the drug conglomerates over the health care system, guaranteeing their income stream, profits, and power: a corporatist/fascist arrangement, which threatens the very sanctity of our society.

As stated in an email released to Wikileaks from Sidney Blumenthal to Hillary Clinton, Obama and his supporters knew well that the LaRouche Organization led the opposition to this disaster known as Obamacare, as well as Obama generally. In that email from January, 2010, Mr. Blumenthal quotes his son Max: “The single most damaging rumor, adopted from the cult of Lyndon LaRouche was that Obama's health care reform proposal included a plan to implement `death panels.' While the president pleaded for compromise and reason, the right repeated the baseless charge over and over, insisting that the president had a secret plan to pull the plug on grandma, euthanize the severely handicapped, and kill the sick. Though healthcare reform appears certain to pass, albeit in a severely diluted form, Obama never recovered from the damage the right's mortality reminders did to his political standing.” [emphasis added--ed.]

While Obama’s entire Presidency has been a dangerous failure—millions displaced and killed by his policies at home and abroad—Lyndon LaRouche has never sold the American people out. It is now time to go with the LaRouche option.

The Great Obamandius

Cartoon by Dave Christie


By Percy Bysshe Shelley

I met a traveller from an antique land
Who said: “Two vast and trunkless legs of stone
Stand in the desert. Near them, on the sand,
Half sunk, a shattered visage lies, whose frown,
And wrinkled lip, and sneer of cold command,
Tell that its sculptor well those passions read
Which yet survive, stamped on these lifeless things,
The hand that mocked them, and the heart that fed:
And on the pedestal, these words appear:
‘My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!’
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.”