Saturday, June 08, 2024

Ancient Roman Oligarchs Avoided Tax


Liability and  Restrictions on Land Size


 
JUNE 7, 2024
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Roman land tenure was based increasingly on the appropriation of conquered territory, which was declared public land, the ager publicus populi. The normal practice was to settle war veterans on it, but the wealthiest and most aggressive families grabbed such land for themselves in violation of early law.

Cassius’ Indecent Proposal

The die was cast in 486 BC. After Rome defeated the neighboring Hernici, a Latin tribe, and took two-thirds of their land, the consul Spurius Cassius proposed Rome’s first agrarian law. It called for giving half the conquered territory back to the Latins and half to needy Romans, who were also to receive public land that patricians had occupied1. But the patricians accused Cassius of “building up a power dangerous to liberty” by seeking popular support and “endangering the security” of their land appropriation. After his annual term was over he was charged with treason and killed. His house was burned to the ground to eradicate memory of his land proposal (Livy, History of Rome 2.41).

Patricians Versus Plebs

The fight over whether patricians or the needy poor plebians would be the main recipients of public land dragged on for 12 years. In 474 the commoners’ tribune, Gnaeus Genucius, sought to bring the previous year’s consuls to trial for delaying the redistribution proposed by Cassius (Livy 2.54 and Dionysius 9.37-38). He was blocked by that year’s two consuls, Lucius Furius and Gaius Manlius, who said that decrees of the Senate were not permanent law, “but measures designed to meet temporary needs and having validity for one year only.” The Senate could renege on any decree that had been passed.

A century later, in 384, M. Manlius Capitolinus, a former consul (in 392) was murdered for defending debtors by trying to use tribute from the Gauls and to sell public land to redeem plebian debts, and for accusing senators of embezzlement and urging them to use their takings to redeem debtors. It took a generation of turmoil and poverty for Rome to resolve matters. In 367 the Licinio-Sextian law limited personal landholdings to 500 iugera (125 hectares, under half a square mile; see Livy 6.35-36). Indebted landholders were permitted to deduct interest payments from the principal and pay off the balance over three years instead of all at once.

Gifts of Land

Most wealth throughout history has been obtained from the public domain, and that is how Rome’s latifundia were created. The most fateful early land grab occurred after Carthage was defeated in 204. Two years earlier, when Rome’s life-and-death struggle with Hannibal had depleted its treasury, the Senate had asked families to voluntarily contribute their jewelry or other precious belongings to help the war effort. Their gold and silver were melted down in the temple of Juno Moneta to strike the coins used to hire mercenaries.

Upon the return to peace, the aristocrats depicted these contributions as having been loans, and convinced the Senate to pay their claims in three installments. The first was paid in 204, and a second in 202. As the third and final installment was coming due in 200, the former contributors pointed out that Rome needed to keep its money to continue fighting abroad, but had much public land available. In lieu of cash payment they asked the Senate to offer them land located within fifty miles of Rome, and to tax it at only a nominal rate. A precedent for such privatization had been set in 205 when Rome sold valuable land in the Campania to provide Scipio with money to invade Africa.

The recipients were promised that “when the people should become able to pay, if anyone chose to have his money rather than the land, he might restore the land to the state.” Nobody did, of course. “The private creditors accepted the terms with joy; and that land was called Trientabulum because it was given in lieu of the third part of their money” (Livy 28.46).

Latifundia Changed Rome’s Economy Forever

Arnold Toynbee2 describes this giveaway of Rome’s ager publicus as the turning point polarizing its economy by deciding, “at one stroke, the economic and social future of the Central Italian lowlands.” Most of this land ended up as latifundia cultivated by slaves captured in the wars against Carthage and Macedonia and imported en masse after 198. This turned the region into “predominantly a country of underpopulated slave-plantations” as the formerly free population was driven off the land into overpopulated industrial towns. In 194 and again in 177 the Senate organized a program of colonization that sent about 100,000 peasants, women, and children from central Italy to more than twenty colonies, mainly in the far south and north of Italy. Some settlers lost their Roman citizenship, and they must have remained quite poor as the average land allotment was small.

The Gracchi and Civil War

In 133, Tiberius Gracchus advocated distributing ager publicus to the poor, pointing out that this would “increase the number of property holders liable to serve in the army.” He was killed by angry senators who wanted the public land for themselves. Nonetheless, a land commission was established in Italy in 128, “and apparently succeeded in distributing land to several thousand citizens” in a few colonies, but not any land taken from Rome’s own wealthy elite. The commission was abolished around 119 after Tiberius’s brother Gaius Gracchus was killed.3

Appian (Civil Wars 1.1.7) describes the ensuing century of civil war as being fought over the land and debt crisis.

“For the rich, getting possession of the greater part of the undistributed lands, and being emboldened by the lapse of time to believe that they would never be dispossessed, absorbing any adjacent strips and their poor neighbors’ allotments, partly by purchase under persuasion and partly by force, came to cultivate vast tracts instead of single estates, using slaves as laborers and herdsmen, lest free laborers should be drawn from agriculture into the army. At the same time the ownership of slaves brought them great gain from the multitude of their progeny, who increased because they were exempt from military service. Thus certain powerful men became extremely rich and the race of slaves multiplied throughout the country, while the Italian people dwindled in number and strength, being oppressed by penury, taxes and military service.”

How Land Changed Rome’s Army

Dispossession of free labor from the land transformed the character of Rome’s army. Starting with Marius, landless soldiers became soldati, living on their pay and seeking the highest booty, loyal to the generals in charge of paying them. Command of an army brought economic and political power. When Sulla brought his troops back to Italy from Asia Minor in 82 and proclaimed himself Dictator, he tore down the walls of towns that had opposed him, and kept them in check by resettling 23 legions (some 80,000 to 100,000 men) in colonies on land confiscated from local populations in Italy.

Sulla Steals Estates and Sells Them for Support

Sulla drew up proscription lists of enemies who could be killed with impunity, with their estates seized as booty. Their names were publicly posted throughout Italy in June 81 BC, headed by the consuls for the years 83 and 82, and about 1,600 equites (wealthy publican investors). Thousands of names followed. Anyone on these lists could be killed at will, with the executioner receiving a portion of the dead man’s estate. The remainder was sold at public auctions, the proceeds being used to rebuild the depleted treasury. Most land was sold cheaply, giving opportunists a motive to kill not only those named by Sulla, but also their personal enemies, to acquire their estates. A major buyer of confiscated real estate was Crassus, who became one of the richest Romans through Sulla’s proscriptions.

By giving his war veterans homesteads and funds from the proscriptions, Sulla won their support as a virtual army in reserve, along with their backing for his new oligarchic constitution. But they were not farmers, and ran into debt, in danger of losing their land. For his more aristocratic supporters, Sulla distributed the estates of his opponents from the Italian upper classes, especially in Campania, Etruria, and Umbria.

Battle of Generals

Caesar likewise promised to settle his army on land of their own. They followed him to Rome and enabled him to become Dictator in 49. After he was killed in 44, Brutus and Cassius vied with Octavian (later Augustus), each promising their armies land and booty. As Appian (Civil Wars 5.2.12-13) summarized: “The chiefs depended on the soldiers for the continuance of their government, while, for the possession of what they had received, the soldiers depend on the permanence of the government of those who had given it. Believing that they could not keep a firm hold unless the givers had a strong government, they fought for them, from necessity, with good-will.” After defeating the armies of Brutus, Cassius, and Mark Antony, Octavian gave his indigent soldiers “land, the cities, the money, and the houses, and as the object of denunciation on the part of the despoiled, and as one who bore this contumely for the army’s sake.”

Imperial Estates

The concentration of land ownership intensified under the Empire. Brown4notes that by the time Christianity became the Roman state religion, North Africa had become the main source of Roman wealth, based on “the massive landholdings of the emperor and of the nobility of Rome.” Its overseers kept the region’s inhabitants “underdeveloped by Roman standards. Their villages were denied any form of corporate existence and were frequently named after the estates on which the villagers worked, held to the land by various forms of bonded labor.”

A Christian from Gaul named Salvian5 described the poverty and insecurity confronting most of the population ca. 440:

“Faced by the weight of taxes, poor farmers found that they did not have the means to emigrate to the barbarians. Instead, they did what little they could do: they handed themselves over to the rich as clients in return for protection. The rich took over title to their lands under the pretext of saving the farmers from the land tax. The patron registered the farmer’s land on the tax rolls under his (the patron’s) own name. Within a few years, the poor farmers found themselves without land, although they were still hounded for personal taxes. Such patronage by the great, so Salvian claimed, turned free men into slaves as surely as the magic of Circe had turned humans into pigs.”

Church Estates

Church estates became islands in this sea of poverty. As deathbed confessions and donations of property to the Church became increasingly popular among wealthy Christians, the Church came to accept existing creditor and debtor relationships, land ownership, hereditary wealth, and the political status quo. What mattered to the Church was how the ruling elites used their wealth, regardless of how they obtained it as long as it was destined for the Church, whose priests were the paradigmatic “poor” deserving of aid and charity.

The Church sought to absorb local oligarchies into its leadership, along with their wealth. Testamentary disposition undercut local fiscal balance. Land given to the Church was tax-exempt, obliging communities to raise taxes on their secular property in order to maintain their flow of public revenue (many heirs found themselves disinherited by such bequests, leading to a flourishing legal practice of contesting deathbed wills). The Church became the major corporate body, a sector alongside the state. Its critique of personal wealth focused on personal egotism and self-indulgence, nothing like the socialist idea of public ownership of land, monopolies, and banking. In fact, the Crusades led the Church to sponsor Christendom’s major secular bankers to finance its wars against the Holy Roman Emperors, Moslems, and Byzantine Sicily.

Notes.

1. Roman Antiquities by Dionysius of Halicarnassus, 8.77.2.
2. Hannibal’s Legacy by Arnold Toynbee, 1965, II: pp. 250-51 and pp. 341-373.
3. Conquerors and Slaves by Keith Hopkins, 1978, pp. 61-63.
4. Through the Eye of a Needle: Wealth, the Fall of Rome, and the Making of Christianity in the West, 350-550 AD by Peter Brown, 2012, pp. 330, 366, and 327.
5. De gubernatione Dei (“The Government of God”) 5.9.45, paraphrased and discussed in Through the Eye of a Needle: Wealth, the Fall of Rome, and the Making of Christianity in the West, 350-550 AD by Peter Brown, 2012, pp. 433-450.

This article was produced by Human Bridges.

Michael Hudson’s new book, The Destiny of Civilization, will be published by CounterPunch Books next month.

El Salvador Braces for Five More Years of the World’s Self-Proclaimed “Coolest Dictator”


 
 JUNE 7, 2024

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Earlier this year, El Salvadoran president Nayib Bukele won reelection by a wide margin. His Nuevas Ideas party also won 54 of the 60 seats in the Legislative Assembly and the vast majority of the country’s mayorships. His power is now almost absolute.

But the elections were marred by a large number of irregularities documented by the Organization of American States, damaging Bukele’s international reputation. Could it be a sign of troubles to come?

Bukele officially began his second five-year term on June 1. He’s probably the most popular president in Latin America due to his success in quelling gang violence in the country.

But the fact that he broke El Salvador’s constitution to allow himself a second term, along with the large number of human rights violations and lack of transparency during his “state of exception,” is leading to international criticism. The Canadian government, for example, refrained from congratulating Bukele after the election. And Bukele’s government remains unable to attract the foreign investment it craves.

Approximately 80,000 people have been detained under Bukele’s “state of emergency” since March 2022. Estimates for how many of those people are innocent range from 30 to 70 percent.

Those arrested include leaders of dozens of unions and civil organizations, among them five environmentalists and water defenders from Santa Marta in the Department of Cabañas. Organizations from many countries have dedicated the last year and a half to an international campaign under the leadership of John Cavanagh, former director of the Institute for Policy Studies — and co-author, with Robin Broad, of The Water Defenders —  to get the charges dropped.

At a press conference held by social and civil organizations on May 30, Ivania Cruz — a member of United for Human and Community Rights (UNIDEHC), which is part of the Popular Resistance and Rebellion Bloc — said that “there is a deterioration of the rule of law and the country’s institutions.” She warned that “the repression of the most vulnerable sectors of the population is increasing through unjust arrests and the elimination of all guarantees for all citizens.”

Roberto Zapata of the organization AMATE (Love Yourself) denounced Bukele as part of an ultraconservative wave in the region — also including governments in Argentina, Peru, and Ecuador — against human rights for LGBTQ people. He mentioned that there are 132 registered cases of legal actions against LGBTQ people and recalled that Bukele pronounced himself against “gender ideology,” calling it “contrary to nature.”

Salomón Alfaro of the Movement of Dismissed Workers said that he is one of the 21,000 workers dismissed from public institutions without any of the procedures that the law dictates. “This government wants to control everyone, disappearing institutions and union structures,” he said. “So far 22 unions have been eliminated.”

Tutela Legal, an organization of Salvadoran human rights lawyers, remains extremely busy helping to defend innocent people and civil society leaders. International organizations have worked with them on an amicus brief for the five water defenders to be submitted to the Inter-American Commission on Human Rights.

Meanwhile, the Association for Economic and Social Development of Santa Marta (ADES) continues to lead the defense of the five water defenders. ADES and many international organizations have documented the Bukele government’s efforts to overturn a hard-won law that banned metallic mining in the country in 2017.

At the press conference, ADES leader Vidalina Morales expressed her concern about the possible reopening of mining in El Salvador and the growing interest in the mineral thorium, in addition to gold. She denounced the criminalization of struggles against extractive projects as a desperate response to the failure of Bukele projects such as Bitcoin or Surf City. Bukele, she says, “is selling the country to the highest bidder and will do with it whatever he wants.”

In May, the Bukele government initiated a trial against the five water defenders of Santa Marta for an alleged murder during the country’s civil war, despite the fact that there’s no proof for the allegations — and in violation of the amnesty passed as part of the peace accords that ended the fighting.

In a show of international solidarity, representatives of embassies from Canada, France, the United Kingdom, and the European Union attended the first hearing of the trial, warning the Salvadoran government that the world is watching. Advocates have tried to inform other governments, such as Mexico and the United States, about the general crisis of human rights and democracy in El Salvador.

Organizations in El Salvador are concerned about the possibility of an even greater wave of arrests of civil society leaders during Bukele’s second term. They’re hoping that international solidarity will help curb his abuses.

As Alexis Stoumbelis of the International Committee in Solidarity with the People of El Salvador (CISPES) said, “thanks to the work of journalists and human rights organizations, the world knows about the violations committed by Bukele.” How long will governments like Mexico and the United States continue to turn a blind eye to the self-proclaimed “coolest dictator in the world”?

A version of this article originally appeared in Spanish in La Jornada.