GLENN: In a book called When the War Ends. The Road We Are Traveling, 1914 1942. Stuart Chase wrote this, free enterprise into X. He said many more studies will be needed before the mystery is cleared up, but we have something called X which is displacing the system of free enterprise all over the world. We don’t know yet what to call it. We can describe its major characteristics.

Got it? He said there’s something called X. We could call it communism, we could call it fascism, we could call it state capitalism. But he said we don’t really know what it is. But here are the things that are going on. Free enterprise into X. First one, a strong centralized government; two, executive arm growing at the expense of the legislative and judicial arms; three, the control of government bank or banking, credit and security exchanges by the government; four, the underwriting of employment by the government, either through armaments or public works; five, the underwriting of Social Security by the government, old age pensions, mothers pensions, unemployment insurance and the like; six, the underwriting of good housing and medical care by the government; seven, the use of deficit spending technique to finance these underwritings.

Let me say that again: Seven, the use of deficit spending techniques to finance these underwritings. This was new in 1942. The annually balanced budget has lost its old time sanctity. Eight, the abandonment of gold in favor of managed currencies; nine, the control of foreign trade by the government with increased emphasis on bilateral agreements and barter deals; ten, the control of natural resources with increasing emphasis on self sufficiency; eleven, the control of energy sources, hydroelectric power, coal, petroleum, and natural gas; twelve, the control of transportation, railway, highway, airway, waterway; thirteen, the control of agricultural production; fourteen, the control of labor organizations, often to the point of prohibiting strikes; fifteen, the enlistment of young men and women in youth corps defeated to health, discipline, community service, and ideologies consistent with those in authority; sixteen, heavy taxation with special emphasis on the estates and incomes of the rich; seventeen, not much taking over of property or industries in the old socialistic sense, but the formula appears to be control without ownership.

Let me say this again: Not much taking over of properties or industries in the old socialistic sense. This is written in 1942. The formula appears to be control without ownership. It is interesting to recall the same formula was used by the management of the great corporations in depriving stockholders of power. And 18, state control of communications and propaganda.

So who is Stuart Chase, who wrote this and said, something is afoot and it’s going to change the free market enterprise, and this is the sign of state capitalism, fascism, or communism, but we’ll just call it X. Who was he? Well, you probably have never heard of this book. You’ve probably never even heard of his name, but he was a Fabian Socialist. He was a member of the Fabian Society at Harvard and a friend of Walter Lippmann. Walter Lippmann was the guy who every journalist in America has studied and hails as a hero. He was a eugenicist or eugenics guy. He was a progressive, he was a member of Woodrow Wilson’s administration. He was a really evil dude. When he when Walter Lippmann heard about Fabian Socialism, he said the guys opened up for him. But Stuart Chase just went and became a Fabian Socialist with him at Harvard. Stuart Chase appears again in the 1930s in American history because he’s the one that coined the term, the New Deal. He’s the one that was in the, what was it, the kitchen cabinet for FDR, his panel of experts to help transform the world, transform America? The guy who coined the New Deal and helped FDR sell it and get it out and shape it said there’s something strange going on with the free market system in 1942. And it’s changing. And these are the signs that will change it into state capitalism and abandon the free market. We have done every single one of these things. The guy who helped design the New Deal pointed them out to us. Don’t miss tonight’s show and tomorrow and Monday’s and DVR the show. If you DVRed last night, it is an hour on Fabian Socialism and it is an hour that I probably had more mail on saying I had no idea. I had no idea about any of this stuff. But in every letter I got, pro or con, they all said the same thing. It’s the scariest episode. It used to be fun to connect the dots. This one wasn’t fun to connect the dots with. It’s not, but you must connect the dots.

[NOTE: Transcript may have been edited to enhance readability – audio archive includes full segment as it was originally aired]