The Evil 1%

by Llewellyn H. Rockwell, Jr.

The “occupy” protest movement is thriving off the claim that the 99% are being exploited by the 1%, and there is truth in what they say. But they have the identities of the groups wrong. They imagine that it is the 1% of highest wealth holders who are the problem. In fact, that 1% includes some of the smartest, most innovative people in the country – the people who invent, market, and distribute material blessings to the whole population. They also own the capital that sustains productivity and growth.

But there is another 1% out there, those who do live parasitically off the population and exploit the 99%. Moreover, there is a long intellectual tradition, dating back to the late middle ages that draws attention to the strange reality that a tiny minority lives off the productive labor of the overwhelming majority.

I’m speaking of the State, which even today is made up of a tiny sliver of the population, but is the direct cause of all the impoverishing wars, inflation, taxes, regimentation, and social conflict. This 1% is the direct cause of the violence, the censorship, the unemployment, and vast amounts of poverty, too.

Look at the numbers, rounding from latest data. The U.S. population is 307 million. There are about 20 million government employees at all levels, which makes 6.5%. But 6.2 million of these people are public school teachers, whom I think we can say are not really the ruling elite. That takes us down to 4.4%.

We can knock of another half million who work for the post office, and probably the same who work for various service department bureaus. Probably another million do not work in any enforcement arm of the State, and there’s also the amazing labor-pool fluff that comes with any government work. Local governments do not cause nation-wide problems (usually), and the same might be said of the 50 states. The real problem is at the federal level (8.5 million), from which we can subtract fluff, drones, and service workers.

In the end, we end up with about 3 million people who constitute what is commonly called the State. For short, we can just call these people the 1%.

The 1% do not generate any wealth of their own. Everything they have they get by taking from others under the cover of law. They live at our expense. Without us, the State as an institution would die.

Here we come to the core of the issue. What is the State and what does it do? There is vast confusion about this issue, insofar as it is talked about at all. For hundreds of years, people have imagined that the State might be an organic institution that develops naturally out of some social contract. Or perhaps the State is our benefactor because it provides services we could not otherwise provide for ourselves.

In classrooms and in political discussions, there is very little if any honest talk about what the State is and what it does. But in the libertarian tradition, matters are much clearer. From Bastiat to Rothbard, the answer has been before our eyes. The State is the only institution in society that is permitted by law to use aggressive force against person and property.

Let’s understand through a simple example. Let’s say you go into a restaurant and hate the wallpaper. You can complain and try to persuade the owner to change it. If he doesn’t change it, you can decide not to go back. But if you break in, take money out of the cash register, buy paint, and cover the wallpaper yourself, you will be charged with criminal wrongdoing and perhaps go to jail. Everyone in society agrees that you did the wrong thing.

But the State is different. If it doesn’t like the wallpaper, it can pass a law (or maybe even not that) and send a memo. It can mandate a change. It doesn’t have to do the repainting. The State can make you repaint the place. If you refuse, you are guilty of criminal wrongdoing.

Same goals, different means, two very different sets of criminals. The State is the institution that essentially redefines criminal wrongdoing to make itself exempt from the law that governs everyone else.

It is the same with every tax, every regulation, every mandate, and every single word of the federal code. It all represents coercion. Even in the area of money and banking, it is the State that created and sustains the Fed and the dollar because it forcibly limits competition in money and banking, preventing people from making gold or silver money, or innovating in other ways. And in some ways, this is the most dreadful intervention of all, because it allows the State to destroy our money on a whim.

The State is everybody’s enemy. Why don’t the protesters get this? Because they are victims of propaganda by the State, doled out in public school, that attempts to blame all human suffering on private parties and free enterprise. They do not comprehend that the real enemy is the institution that brainwashes them to think the way they do.

They are right that society is rife with conflicts, and that the contest is wildly lopsided. It is indeed the 99% vs. the 1%. They’re just wrong about the identity of the enemy.

Llewellyn H. Rockwell, Jr., former editorial assistant to Ludwig von Mises and congressional chief of staff to Ron Paul, is founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of

Copyright © 2011 by

4 Responses to The Evil 1%

  1. william wallace says:

    Religious orders having the same line of thought
    you hold a individual under water for ten minutes.

    If they survive such ordeal they are then accused
    of witchcraft // result they being burnt at the stake.

    Thus your effort in justifing the total rights of the
    1% not only havng supreme power / a god given
    right to do as pleasing /in pleasuring themselves
    but put your case that in great suffering the 99%
    should not cry out // they should suffer in silence.

    Indeed your becoming a true willing victim of the
    mighty republican /media brainwashing machine.

    Its as those whom imprisoned in religious beliefs
    ideas. Centuries of repeated religious nonsense
    allowing majority in bowing before the few /whom
    claim they being gods representative upon earth.

    Thus the greatest fraud in the history of humanity
    takes place where the 1% gain vast power wealth
    over the 99% in offering them an fictional heaven
    after death / if while alive they bow before the 1%.

    • Richard says:

      From the choir loft:

      I can’t tell if you’re statement is in opposition to religion or the Republican party or both.

      The financial influence of religion in America is shrinking rapidly. Depending upon which statistic you use, active attendance is down to either 43% (Gallup Poll) or 17% (American Church Research Project) of the population. According to Empty Tomb, Inc. a Christian research group, churchgoers gave 2.38% of their income in 2009.

      Do the math. That’s hardly an effective influence by any stretch of the imagination.

      Mr. Rockwell’s article has a far more reasonable and precise premise than blind attacks upon the church. The dangerous core group is well defined by the figures quoted and we would all do well to focus our study and concern in that direction instead of poor old grandma sitting in the church alone.

      Take a look at what churches are doing with their 2% contributions. Are they donating to political campaigns or lobbying for bills to pass? No. They are developing real estate for their mega churches and buying broadcast time to let folks know that a toll free phone number and a Mastercard charge will buy God’s favor and bribe His attention. This is hardly a serious investment of captial by any stretch of the imagination.

      Are churches opposing American international aggression and war crimes or do they support it? Is the church aggressively working to make life better for the masses or is it working instead to glorify a few talented TV gospel personalities? Is the church doing anything AT ALL to affect American society or is it sitting in a dark corner playing with itself? The church is hardly a serious political or financial factor in this country by any stretch of the imagination.

      The danger, dear reader, lies with the 1% mentioned in Rockwell’s article not in the American plastic Jesus church. We all need to focus on the immediate threat and not the imaginary one.

      But that’s just me, hollering from the choir loft.

  2. Richard says:

    Well, you have to start somewhere even if you don’t know where you’re going or why.

  3. David Snyder says:

    Excellent article.

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