Bill and Melinda Gates are giving their three kids “a minuscule portion” of their estimated $89 billion, they told the Daily Mail in 2011. “It will mean they have to find their own way,” Bill said at the time.
Although even a fraction of the Gates’ wealth will be enough to put their kids among the wealthiest individuals in the world, Bill believes it will compel them to rely on themselves. “It’s not a favor to kids to have them have huge sums of wealth,” he told “This Morning” last year, as reported by SFGate. “It distorts anything they might do, creating their own path.”
The couple plans to put the majority of their fortune toward charitable causes, namely the Bill & Melinda Gates Foundation, which aims to eradicate disease, poverty and hunger across the globe. Along with fellow billionaire Warren Buffett, the Gateses also helped create the Giving Pledge in 2010, which encourages more of the super-rich to leave the majority of their wealth to philanthropic causes.
Like grave robbers opening King Tut’s tomb, Congress can’t wait to get its hands on America’s retirement-account assets. The House passed the Setting Every Community Up for Retirement Enhancement Act, known by the acronym Secure, in May. The vote was 417-3. The Secure Act is widely expected to pass the Senate by unanimous consent. While ostensibly helping Americans save for retirement, the bill would actually reduce the value of all retirement savings plans: individual retirement accounts, 401(k)s, Roth IRAs, the works.
The main problem with the Secure Act is that it eliminates the stretch IRA, the fixed star in the financial-planning firmament since 1999. The stretch IRA lets savers leave their retirement accounts to children, grandchildren or other beneficiaries. Under current rules, the recipients can parcel out the required minimum distributions from the accounts over the course of their actuarial lifetimes. Payouts tend to be relatively small for children but grow in size over the decades until the inherited IRA might comfortably provide for the child’s retirement through the power of tax-deferred compounding. A parent could die with the knowledge that, whatever vicissitudes their children might experience in life, they won’t have to worry about retirement.
Congress wants to kill this. The Secure Act gives nonspouse beneficiaries 10 years to pull out all the money in an IRA. The effect would be to make more of an IRA subject to higher taxes sooner, as distributions are made in supersize chunks. As much as one-third more of an inherited IRA would get gobbled up by taxes than under current rules. When the Tax Cuts and Jobs Act expires in 2025, taxes will rise across the board. If President Trump signs the Secure Act into law, the stage will be set for a taxpocalypse sometime in the next decade.
In exchange for its windfall under the Secure Act, Congress will push back the age at which retirees must take their first required minimum IRA distributions from 70½ to 72. This isn’t the deal American savers were promised when they made contributions to their IRAs the last 20 years. Before, the optimal approach was for savers to leave their IRAs to their children or grandchildren and stretch the payouts over decades.
Under the Secure Act, an IRA owner could still leave the account to a surviving spouse, who’d remain exempt from the 10-year clock. But the widow would be paying taxes in the higher “filing single” bracket. The bracket can easily jump from 12% to 25% or from 24% to 35% as the mandatory payout ratios automatically increase with age. For example, the required minimum distribution for a 70-year-old is 3.7% of the retirement-account balance; for a 90-year-old it is 8.8%.
Should a $1 million IRA pass to a high-earning adult daughter, at best she would have to take payouts adding $100,000 of annual income on top of her salary for a decade. If she lives in a high-tax state, half the annual payout’s value could be lost to taxes.
It gets worse. The Secure Act would be a college planning nightmare for middle-income parents. If the parents of college-age children inherit a $500,000 IRA, the resulting highly taxed mandatory distributions—say, $50,000 a year for 10 years—would make them richer on paper than they actually are, eviscerating their ability to qualify for need-based financial aid. If those parents decide to postpone taking the distributions for four years to avoid the financial-aid effect, they would need to double up on distributions after graduation to compensate, which would land them in a higher tax bracket. If the grandparents skip a generation and leave the IRA directly to the college-bound grandchild, the “kiddie tax” would require the distributions to be taxed at the parents’ rates. Whichever way the family turns, they lose.
The Secure Act would be an estate-planning catastrophe for people with significant IRAs. It would take the sensible planning done up until now and stand it on its head. In the past, an IRA owner might have established a trust if his intended beneficiaries were young. Under the Secure Act, IRAs will no longer be subject to annual required minimum distributions, so an IRA of $1 million placed in a trust for the benefit of an 8-year-old could conceivably receive nothing for nine years. Then at year 10, by law, the IRA would have to pay out everything. Now the young beneficiary turns 18, and suddenly he gets a windfall. With a decade of additional compound growth, the original IRA could have grown to $2 million or more. All is delivered in one year, so most of it is taxed in the highest brackets. If the trust language allows the trustee to keep the money in the trust, it will be taxed at the exorbitant federal trust tax rate of 37% on income over $12,500. And don’t forget state taxes.
The insurance industry loves the Secure Act’s mandate that annuities be offered as a payout option in all retirement plans. Insurance companies sold more than $230 billion worth of annuities in 2018, and they would like to push that figure higher. Annuitizing retirement-plan assets is generally a bad idea unless the retiree needs all the cash for living expenses and can find a very low-cost annuity that is indexed to CPI-E—the inflation rate facing senior citizens that includes their increasingly expensive medical care. Unfortunately, such an annuity doesn’t exist.
The mandatory offer of an annuity is a first step that could lead to the mandatory annuitization of all retirement accounts. This would shoehorn the distributions into higher brackets, accelerate the collection of tax revenue, and eliminate the “problem” of the inherited IRA. Best of all, politicians would get to accomplish all this without voting to raise taxes.
Ted Cruz of Texas is the Senate’s main holdout against the Secure Act. His concern is that the House version dropped a niche provision that would allow tax-advantaged 529 Plans to pay for home schooling. He might be able to hold out, but it’ll be a stretch.
Mitch McConnell celebrated Juneteenth by making a public statement on reparations. Brooke Thomas, Jayar Jackson, Adrienne Lawrence and David West discuss on TYT’s Juneteenth special.
I have never been comfortable talking about money with my adult children, but my wife and I are making some changes to our estate plan. Our question: Should we talk with our children about their inheritance? Have you tackled this issue?
You certainly can make an argument for not having this conversation. Some parents, for instance, worry that if their children learn what they’re going to inherit too early, they could get lazy or, perhaps worse, complain about how assets are being carved up.
That said, lawyers and financial planners have told us that discussing your estate plan with your children can yield one big benefit: the chance to gauge their reactions. Even if you don’t change your plans based on their concerns, your children should have a chance to work through their issues while you’re alive, meaning there’s less chance of quarreling once you’re gone.
To be more specific: First, tell each child separately that you’re trying to decide what to do and that you want to find out what he or she expects or wants. Once you have that information, you can figure out where the potential conflicts, if any, are. (Did you help pay for one, and only one, child’s graduate degree? And are his or her siblings keeping score?) A discussion that turns up differing expectations could give you the chance to go back to the drawing board now, rather than having your children fight over your plans in the future.
However uncomfortable the thought of discussing such topics makes you, don’t mislead your children. As one financial planner cautioned us, even adult children who inherit more than they expected sometimes get angry. They may remember times when they really could have used a helping hand from their parents, and now they know their parents had the ability to help them and chose not to. It’s even worse when parents assure children that they will be “taken care of” and then bequeath much less than their children anticipated.
The president has long sold himself as a self-made billionaire, but a Times investigation found that he received at least $413 million in today’s dollars from his father’s real estate empire, much of it through tax dodges in the 1990s.
.. Fred and Mary Trump, transferred well over $1 billion in wealth to their children, which could have produced a tax bill of at least $550 million under the 55 percent tax rate then imposed on gifts and inheritances.
The Trumps paid a total of $52.2 million, or about 5 percent, tax records show.
.. The Times’s findings raise new questions about Mr. Trump’s refusal to release his income tax returns, breaking with decades of practice by past presidents. According to tax experts, it is unlikely that Mr. Trump would be vulnerable to criminal prosecution for helping his parents evade taxes, because the acts happened too long ago and are past the statute of limitations. There is no time limit, however, on civil fines for tax fraud.
.. Most notably, the documents include more than 200 tax returns from Fred Trump, his companies and various Trump partnerships and trusts.
.. What emerges from this body of evidence is a financial biography of the 45th president fundamentally at odds with the story Mr. Trump has sold in his books, his TV shows and his political life. In Mr. Trump’s version of how he got rich, he was the master dealmaker who broke free of his father’s “tiny” outer-borough operation and parlayed a single $1 million loan from his father (“I had to pay him back with interest!”) into a $10 billion empire
.. In Mr. Trump’s version, it was always his guts and gumption that overcame setbacks. Fred Trump was simply a cheerleader.
.. “I built what I built myself,” Mr. Trump has said, a narrative that was long amplified by often-credulous coverage from news organizations, including The Times.
.. They described how Mr. Trump piggybacked off his father’s banking connections to gain a foothold in Manhattan real estate. They poked holes in his go-to talking point about the $1 million loan, citing evidence that he actually got $14 million. They told how Fred Trump once helped his son make a bond payment on an Atlantic City casino by buying $3.5 million in casino chips.
.. The reporting makes clear that in every era of Mr. Trump’s life, his finances were deeply intertwined with, and dependent on, his father’s wealth.
.. By age 3, Mr. Trump was earning $200,000 a year in today’s dollars from his father’s empire. He was a millionaire by age 8. By the time he was 17, his father had given him part ownership of a 52-unit apartment building. Soon after Mr. Trump graduated from college, he was receiving the equivalent of $1 million a year from his father. The money increased with the years, to more than $5 million annually in his 40s and 50s.
.. In one six-year span, from 1988 through 1993, Fred Trump reported $109.7 million in total income, now equivalent to $210.7 million. It was not unusual for tens of millions in Treasury bills and certificates of deposit to flow through his personal bank accounts each month.
.. Fred Trump was relentless and creative in finding ways to channel this wealth to his children. He made Donald not just his salaried employee but also his property manager, landlord, banker and consultant. He gave him loan after loan, many never repaid. He provided money for his car, money for his employees, money to buy stocks, money for his first Manhattan offices and money to renovate those offices. He gave him three trust funds. He gave him shares in multiple partnerships. He gave him $10,000 Christmas checks. He gave him laundry revenue from his buildings.
.. Much of his giving was structured to sidestep gift and inheritance taxes using methods tax experts described to The Times as improper or possibly illegal. Although Fred Trump became wealthy with help from federal housing subsidies, he insisted that it was manifestly unfair for the government to tax his fortune as it passed to his children.
When he was in his 80s and beginning to slide into dementia, evading gift and estate taxes became a family affair, with Donald Trump playing a crucial role, interviews and newly obtained documents show.
.. There is no shortage of clever tax avoidance tricks that have been blessed by either the courts or the I.R.S. itself. The richest Americans almost never pay anything close to full freight. But tax experts briefed on The Times’s findings said the Trumps appeared to have done more than exploit legal loopholes. They said the conduct described here represented a pattern of deception and obfuscation, particularly about the value of Fred Trump’s real estate, that repeatedly prevented the I.R.S. from taxing large transfers of wealth to his children.
“The theme I see here through all of this is valuations: They play around with valuations in extreme ways,” said Lee-Ford Tritt, a University of Florida law professor and a leading expert in gift and estate tax law. “There are dramatic fluctuations depending on their purpose.”
.. The Trumps dodged hundreds of millions in gift taxes by submitting tax returns that grossly undervalued the properties, claiming they were worth just $41.4 million.
The same set of buildings would be sold off over the next decade for more than 16 times that amount.
.. All told, The Times documented 295 streams of revenue that Fred Trump created over five decades to enrich his son.
.. as Donald Trump careened from one financial disaster to the next, his father found ways to give him substantially more money, records show. Even so, in 1990, according to previously secret depositions, Mr. Trump tried to have his father’s will rewritten in a way that Fred Trump, alarmed and angered, feared could result in his empire’s being used to bail out his son’s failing businesses.
Of course, the story of how Donald Trump got rich cannot be reduced to handouts from his father. Before he became president, his singular achievement was building the brand of Donald J. Trump, Self-Made Billionaire, a brand so potent it generated hundreds of millions of dollars in revenue through TV shows, books and licensing deals.
Constructing that image required more than Fred Trump’s money. Just as important were his son’s preternatural marketing skills and always-be-closing competitive hustle. While Fred Trump helped finance the accouterments of wealth, Donald Trump, master self-promoter, spun them into a seductive narrative. Fred Trump’s money, for example, helped build Trump Tower, the talisman of privilege that established his son as a major player in New York. But Donald Trump recognized and exploited the iconic power of Trump Tower as a primary stage for both “The Apprentice” and his presidential campaign.
.. on May 4, 2004, when Mr. Trump and his siblings sold off the empire their father had spent 70 years assembling with the dream that it would never leave his family.
Donald Trump’s cut: $177.3 million, or $236.2 million in today’s dollars.
They were both fluent in the language of half-truths and lies, interviews and records show. They both delighted in transgressing without getting caught. They were both wizards at manipulating the value of their assets, making them appear worth a lot or a little depending on their needs.
.. Emblematic of their audacity was Park Briar, a 150-unit building in Queens. As it happened, 18 days before Fred Trump Jr.’s death, the Trump siblings had submitted Park Briar’s co-op conversion plan, stating under oath that the building was worth $17.1 million. Yet as Fred Trump Jr.’s executors, Donald Trump and his fatherwhen Fred Trump Jr. died.
.. This fantastical claim — that Park Briar should be taxed as if its value had fallen 83 percent in 18 days — slid past the I.R.S. with barely a protest. An auditor insisted the value should be increased by $100,000, to $3 million.
.. During the 1980s, Donald Trump became notorious for leaking word that he was taking positions in stocks, hinting of a possible takeover, and then either selling on the run-up or trying to extract lucrative concessions from the target company to make him go away. It was a form of stock manipulation with an unsavory label: “greenmailing.” The Times unearthed evidence that Mr. Trump enlisted his father as his greenmailing wingman.
On Jan. 26, 1989, Fred Trump bought 8,600 shares of Time Inc. for $934,854, his tax returns show. Seven days later, Dan Dorfman, a financial columnist known to be chatty with Donald Trump, broke the news that the younger Trump had “taken a sizable stake” in Time. Sure enough, Time’s shares jumped, allowing Fred Trump to make a $41,614 profit in two weeks.
.. Later that year, Fred Trump bought $5 million worth of American Airlines stock. Based on the share price — $81.74 — it appears he made the purchase shortly before Mr. Dorfman reported that Donald Trump was taking a stake in the company. Within weeks, the stock was over $100 a share.
.. Fred Trump could be cantankerous and cruel, according to sworn testimony by his relatives. “This is the stupidest thing I ever heard of,” he’d snap when someone disappointed him. He was different with his son Donald. He might chide him — “Finish this job before you start that job,” he’d counsel — but more often, he looked for ways to forgive and accommodate.
.. By 1987, for example, Donald Trump’s loan debt to his father had grown to at least $11 million. Yet canceling the debt would have required Donald Trump to pay millions in taxes on the amount forgiven. Father and son found another solution, one never before disclosed, that appears to constitute both an unreported multimillion-dollar gift and a potentially illegal tax write-off.
.. Most, if not all, of his investment, which totaled $15.5 million, was made by exchanging his son’s unpaid debts for Trump Palace shares, records show.
.. Under I.R.S. rules, selling shares worth $15.5 million to your son for $10,000 is tantamount to giving him a $15.49 million taxable gift. Fred Trump reported no such gift.
.. Fred Trump evaded the 55 percent tax on gifts, saving about $8 million. At the same time, he declared to the I.R.S. that Trump Palace was almost a complete loss — that he had walked away from a $15.5 million investment with just $10,000 to show for it.
Federal tax law prohibits deducting any loss from the sale of property between members of the same family, because of the potential for abuse. Yet Fred Trump appears to have done exactly that, dodging roughly $5 million more in income taxes.
.. At its heart lay a more ambitious project, executed to perfection over decades — to create that origin story, the myth of Donald J. Trump, Self-Made Billionaire.
.. Donald Trump built the foundation for the myth in the 1970s by appropriating his father’s empire as his own.
.. Through it all, Fred Trump played along. Never once did he publicly question his son’s claim about the $1 million loan.
.. Fred Trump believed that the document potentially put his life’s work at risk.
.. did many things. It protected Donald Trump’s portion of the inheritance from his creditors and from his impending divorce settlement with his first wife, Ivana Trump. It strengthened provisions in the existing will making him the sole executor of his father’s estate. But more than any of the particulars, it was the entirety of the codicil and its presentation as a fait accompli that alarmed Fred Trump
.. He confided to family members that he viewed the codicil as an attempt to go behind his back and give his son total control over his affairs. He said he feared that it could let Donald Trump denude his empire, even using it as collateral to rescue his failing businesses. (It was, in fact, the very month of the $3.5 million casino rescue.)
.. The lawyers quickly drafted a new codicil stripping Donald Trump of sole control over his father’s estate. Fred Trump signed it immediately.
.. Yet for all the financial support he had lavished on his children, for all his abhorrence of taxes, Fred Trump had stubbornly resisted his advisers’ recommendations to transfer ownership of his empire to the children to minimize estate taxes.
.. With every passing year, the actuarial odds increased that Fred Trump would die owning apartment buildings worth many hundreds of millions of dollars, all of it exposed to the 55 percent estate tax. Just as exposed was the mountain of cash he was sitting on.
.. Even after he paid himself $109.7 million from 1988 through 1993, his companies were holding $50 million in cash and investments
‘A DISGUISED GIFT’
A family company let Fred Trump funnel money to his children by effectively overcharging himself for repairs and improvements on his properties.
.. All County’s main purpose, The Times found, was to enable Fred Trump to make large cash gifts to his children and disguise them as legitimate business transactions, thus evading the 55 percent tax.
.. All County’s invoices were padded, marked up by 20 percent, or 50 percent, or even more, records show.
.. Years later, in his deposition during the dispute over Fred Trump’s estate, Robert Trump would say that All County actually saved Fred Trump money by negotiating better deals. Given Fred Trump’s long experience expertly squeezing better prices out of contractors, it was a surprising claim. It was also not true.
.. In 1991 and 1992, Fred Trump bought 78 refrigerator-stove combinations for Beach Haven from Long Island Appliance Wholesalers. The average price was $642.69. But in 1993, when he began paying All County for refrigerator-stove combinations, the price jumped by 46 percent.
.. Likewise, the price he paid for trash-compacting services at Beach Haven increased 64 percent. Janitorial supplies went up more than 100 percent. Plumbing repairs and supplies rose 122 percent.
.. While All County was all upside for Donald Trump and his siblings, it had an insidious downside for Fred Trump’s tenants.
.. One way to justify a rent increase was to make a major capital improvement. It did not take much to get approval; an invoice or canceled check would do if the expense seemed reasonable.
.. As Robert Trump acknowledged in his deposition, “The higher the markup would be, the higher the rent that might be charged.”
.. the Trumps got approval to raise rents on thousands of apartments by claiming more than $30 million in major capital improvements.
.. By 1998, records show, All County and Apartment Management were generating today’s equivalent of $2.2 million a year
.. According to Fred Trump’s 1995 gift tax return, obtained by The Times, the Trumps claimed that properties including 25 apartment complexes with 6,988 apartments — and twice the floor space of the Empire State Building —
.. The Trumps used Robert Von Ancken, a favorite of New York City’s big real estate families. Over a 45-year career, Mr. Von Ancken has appraised many of the city’s landmarks
.. buildings in the same neighborhood as Trump buildings sold for two to four times as much per square foot as Mr. Von Ancken’s appraisals
.. Of all Fred Trump’s properties, Patio Gardens was one of the least profitable, which may be why he decided to use it as a tax deduction. In 1992, he donated Patio Gardens to the National Kidney Foundation of New York/New Jersey, one of the largest charitable donations he ever made. The greater the value of Patio Gardens, the bigger his deduction. The appraisal cited in Fred Trump’s 1992 tax return valued Patio Gardens at $34 million, or $61.90 a square foot.
By contrast, Mr. Von Ancken’s GRAT appraisals found that the crown jewels of Fred Trump’s empire, Beach Haven and Shore Haven, with five times as many apartments as Patio Gardens, were together worth just $23 million, or $11.01 per square foot.
.. Mr. Von Ancken claimed that they were worth less than nothing — negative $5.9 million, to be exact.
.. a bank would value at $106.6 million in 2004.
..The I.R.S. has long accepted the idea that ownership with control is more valuable than ownership without control. Someone with a controlling interest in a building can decide if and when the building is sold, how it is marketed and what price to accept
.. the Trumps set out to create the fiction that Fred Trump was a minority owner. All it took was splitting the ownership structure of his empire. Fred and Mary Trump each ended up with 49.8 percent of the corporate entities that owned his buildings. The other 0.4 percent was split among their four children.
.. That enabled the Trumps to slash Mr. Von Ancken’s valuation in a way that was legally dubious. They claimed that Fred and Mary Trump’s status as minority owners, plus the fact that a building couldn’t be sold as easily as a share of stock, entitled them to lop 45 percent off Mr. Von Ancken’s $93.9 million valuation. This claim, combined with $18.3 million more in standard deductions, completed the alchemy of turning real estate that would soon be valued at nearly $900 million into $41.4 million.
.. The I.R.S. determined that the Trumps’ assets were worth $57.1 million, 38 percent more than the couple had claimed. From the perspective of an I.R.S. auditor, pulling in nearly $5 million in additional revenue could be considered a good day’s work. For the Trumps, getting the I.R.S. to agree that Fred Trump’s properties were worth only $57.1 million was a triumph.
.. The next year, 1998, Donald Trump’s share amounted to today’s equivalent of $9.6 million, The Times found.
This sudden influx of wealth came only weeks after he had published “The Art of the Comeback.”
.. “I learned a lot about myself during these hard times,” he wrote. “I learned about handling pressure. I was able to home in, buckle down, get back to the basics, and make things work. I worked much harder, I focused, and I got myself out of a box.”
Over 244 pages he did not mention that he was being handed nearly 25 percent of his father’s empire.
.. The man who paid himself $50 million in 1990 died with just $1.9 million in the bank.
.. According to his estate tax return, his most valuable asset was a $10.3 million I.O.U. from Donald Trump, money his son appears to have borrowed the year before Fred Trump died.
..In 2003, the Trump siblings gathered at Trump Tower for one of their periodic updates on their inherited empire.
.. Donald Trump insisted that the real estate market had peaked and that the time was right
.. He was also, once again, in financial trouble. His Atlantic City casinos were veering toward another bankruptcy. His creditors would soon threaten to oust him unless he committed to invest $55 million of his own money.
.. Schron paid $705.6 million for most of the empire, which included paying off the Trumps’ mortgages.
.. Within a year of the sale, Mr. Trump spent $149 million in cash on a rapid series of transactions that bolstered his billionaire bona fides. In June 2004 he agreed to pay $73 million to buy out his partner in the planned Trump International Hotel & Tower in Chicago.
.. The first season of “The Apprentice” was broadcast in 2004, just as Donald Trump was wrapping up the sale of his father’s empire.
.. Had Mr. Trump done nothing but invest the money his father gave him in an index fund that tracks the Standard & Poor’s 500, he would be worth $1.96 billion today.
The Perverse Thought of Right-Wing Identity Politics
.. “The Church has become the number one enemy of Western Civilization. Soon the only people left in Christianity will be third-world immigrants and a handful of self-hating whites.”
..Hillary Clinton devoted a speech in Nevada to deploring its influence on the election. “These are race-baiting ideas. Anti-Muslim and anti-immigrant ideas, anti-woman—all key tenets making up an emerging racist ideology known as the ‘alt-right,’” she charged.
.. Clinton could not name a single member of a movement that, she warned, imperiled American democracy
.. The movement exists almost entirely among anonymous users of the Internet. It has no institutions, no money, no political representation, and no traditional media.
.. It enjoys the close attention of the liberal establishment it seeks to discredit and the conservative movement it intends to displace.
.. “Everything we have seen over the past year suggests that the alt-right will be around for the foreseeable future.”
.. The alt-right purports to defend the identity and interests of white people, who it believes are the compliant victims of a century-long swindle by liberal morality. Its goals are not conventionally conservative.
It does not so much question as mock standard conservative positions on free trade, abortion, and foreign policy, regarding them as principles that currently abet white dispossession.
.. Its creed, in the words of Richard Spencer, is “Race is real. Race matters. Race is the foundation of identity.”
.. the alt-right represents something more nefarious, and frankly more interesting, than white identity politics.
.. The alt-right is anti-Christian.
.. Its leading thinkers flaunt their rejection of Christianity and their desire to convert believers away from it.
.. Greg Johnson, an influential theorist with a doctorate in philosophy from Catholic University of America, argues that “Christianity is one of the main causes of white decline” and a “necessary condition of white racial suicide.”
.. it argues that Christian teachings have become socially and morally poisonous to the West.
.. Its intellectual birth is marked by the 1918 publication of the first volume of Oswald Spengler’s The Decline of the West.
.. While the movement is often accused of advocating racial supremacy, its appeal is more often to cultural difference. A generation tired of multicultural pieties
.. A cultural relativist, Spengler rejects as a “ridiculous distortion” any view that privileges European thought or history.
.. “Each culture possesses its own standards, the validity of which begins and ends with it.”
.. Spengler therefore sees the world as divided into fundamentally different cultures, whose identities he interprets in morphological terms. Cultures are like plants
.. They live through a determined cycle of birth, growth, maturity, and death. During its lifespan, a culture gives expression to the animating “form”
.. Spengler had no scholarly expertise in non-Western cultures (his advanced studies were in mathematics), and Decline of the West is frequently nonsense as both history and sociology. But its interpretations of cultural artifacts and their hidden symbolic meanings are often brilliant and have enchanted readers for a century.
.. All cultures are unique, but some are more unique than others. “We men of the Western culture are an exception,” Spengler claims. At the heart of his book is an interpretation of the culture he named “Faustian,” a term widely used in the intellectual circles of the alt-right.
.. a single idea permeates the arts and sciences of the West. Its distinctive mark is an intense striving for “infinity.”
.. our culture has uniquely sought to see all things in relation to the highest or most distant horizons, which, in turn, it seeks to surpass and extend.
- The vaults of medieval cathedrals, the
- discovery of perspective in painting, the
- exploration of the New World, the
- development of orchestral music, the
- invention of the telescope and
—in Spengler’s story, all express the Faustian drive toward transcendence.
.. He argues that there is no Christianity without Western civilization. He arrives at this conclusion by claiming the West begins not with ancient Greece or Rome, but with the high Middle Ages and the birth of scholasticism, Gothic architecture, and polyphony.
.. Its cultural achievements are not testimonies to faith in God. They are the monuments of Faustian man’s attempt—in speculation, stone, glass, and sound—to propel himself into infinity. Of this aspiration, Spengler maintains, “the Gospels know nothing.”
.. In the minds and hands of Europeans, Christianity became a religion that affirmed the unceasing expansion of human freedom, power, and knowledge.
.. There is no biblical god for Faustian man, but there is high Christian culture, which is a tribute to his identity.
.. To a young man lacking a strong identity he says, “This heroic culture is your inheritance, and yours alone. You stand in a line of men who have attained the highest excellences and freely endured the hardest challenges.
.. Albert the Great, Cortés, Newton, Goethe, the Wright brothers all carry this daring spirit, and so do you.”
.. in his 1933 book Hour of Decision, he foresaw the rise of democratic “Caesars” and growing racial animosity. Who will give birth to the next great culture? Not Europeans
.. Spengler predicted the future would belong to the race that had preserved its “strength” in face of the rising “colored menace.”
- If Spengler is the alt-right’s cultural critic,
- Julius Evola is its political mystic.
- Umberto Eco mockingly called him “the magician,” and the
- future Pope Paul VI condemned his writings in a Vatican newspaper
- Evola is the most right-wing thinker possible in the modern world. There is nobody to his right, nor can there be. His influence on the alt-right is detectable in one of its most controversial features: its rejection of human equality.
- “We don’t belong to the liberal family,” writes popular blogger Hunter Wallace. “Nothing is less self-evident to us than the notion that all men are created equal.” Here is the movement’s clearest dispute with conventional conservatism
- The alt-right denies that constitutional democracy is worthy of principled veneration. For Evola, its popular acceptance is a sign we are living in a spiritual dark age.
The basic problem with modernity is “desacralization,” the collapse of spiritual meaning in daily life. Work, family, and citizenship are no longer saturated with spiritual importance, but are understood in functionally secular terms.
.. materialism “kills every possibility
.. Spengler’s fundamental flaw was that he “lacked any understanding of metaphysics and transcendence,” which led him to conclude that human cultures are irreducibly different.
.. Evola believed more or less the exact opposite, arguing that there are timeless and universal principles that have provided the foundation for every true civilization. He referred to these perennial truths as “Tradition,” and he traced the disorders of modernity to our loss of contact with it.
.. No, the world had been slouching into spiritual poverty ever since the eighth century b.c., when the world of Tradition began to disappear.
.. Revolt Against the Modern World, claimed that these primordial societies—whose existence can be accessed only by way of myth and legend, not critical scholarship—all operated on the same principles.
.. In a traditional culture, every aspect of human life, every social activity, role, and caste, was dedicated to the service of an otherworldly order; indeed, they were ritual pathways into it. “According to Tradition,” Evola imagines, “every authority is fraudulent, every law unjust and barbarous, every institution is vain and ephemeral unless . . . they are derived from above.”
.. His key claim is that traditional societies were hierarchically ordered under an absolute ruler, who embodied the sacral order itself.
.. Men Among the Ruins, he argued that political conservatism is intrinsically impossible in a democratic age. True political order can never come from below; it must always be imposed from above.
.. only a transformative leader could elevate humanity out of its degraded state. Such a leader could not appeal to the masses—this was the mistake of the vulgar fascisms of Mussolini and Hitler—but must inspire submission through lofty contempt for democratic norms and popular tastes.
“The presence of superior individuals bestows on a multitude . . . a meaning and a justification they previously lacked,” Evola wrote. “It is the inferior who needs the superior, and not the other way around.”
Evola was less clear about what this sacred authority looked like than what stood in the way of its realization.
.. The problem is that Catholicism forbids the sacred state. And a state without absolute spiritual unity is no state at all.
.. Benoist is the leading theorist of the European New Right, an intellectual movement that began in France in the late 1960s
.. however, no return is necessary if we simply move beyond Christianity altogether. Evola did not believe in a personal deity, but his criticisms of Christianity were political rather than theological. With Benoist, the alt-right becomes explicitly and confessionally anti-Christian.
.. took its inspiration from the failed “conservative revolution” of Weimar Germany.
Carl Schmitt, Ernst Jünger, Arthur Moeller van den Bruck, and Spengler were its chief figures
.. Most of its members, including Spengler, took sides against the Nazi regime, but they also sought a path for the West beyond the twin evils of American democracy and Soviet communism. Benoist comes from this anti-liberal tradition
.. Benoist is the leading theorist of the European New Right, an intellectual movement that began in France in the late 1960s
.. attempt to envision a post-Christian future for people of European descent.
.. his 1981 work On Being a Pagan
.. Paganism’s central claim is simple: that the world is holy and eternal. “Far from desacralizing the world,” Benoist tells us, paganism “sacralizes it in the literal sense of the word, since it regards the world as sacred.”
Paganism is also a humanism. It recognizes man, the highest expression of nature, as the sole measure of the divine.
.. God does not therefore create men; men make gods, which “exist” as ideal models that their creators strive to equal.
.. Benoist’s case against Christianity is that it forbids the expression of this “Faustian” vitality.
.. It does so by placing the ultimate source of truth outside of humanity, in an otherworldly realm to which we must be subservient.
.. He accuses Christianity of crippling our most noble impulses. Christianity makes us strangers in our own skin, conning us into distrusting our strongest intuitions. We naturally respect beauty, health, and power, Benoist observes, but Christianity teaches us to revere the deformed, sick, and weak instead.
.. Benoist’s theology is in the service of a political warning, and it is this, more than his Nietzschean posturing, that attracts the alt-right.
.. Christianity is unable to protect European peoples and their cultures.
.. Christianity is not our religion.
.. Benoist means that Christianity renders Western culture morally lethargic and culturally defenseless.
.. its universalism poisons our attachments to particular loyalties and ties.
.. “If all men are brothers,” Benoist claims, “then no one can truly be a brother.”
.. Politics depends on the recognition of both outsiders and enemies, yet the Christian Church sees all people as potential members, indeed potential saints.
.. Christianity imparted to our culture an ethics that has mutated into what the alt-right calls “pathological altruism.”
.. Its self-distrust, concern for victims, and fear of excluding outsiders—such values swindle Western peoples out of a preferential love for their own.
.. Christianity today is the enemy of the West and the race that created it
.. we ought to see ourselves through the eyes of our pagan critics
.. They distort many truths, through both malice and ignorance, and lead young men into espousing views and defending authors they scarcely understand.
.. “Christianity provides an identity that is above or before racial and ethnic identity,” Richard Spencer complains.
.. invoking race as an emergency replacement for our fraying civic bonds.
.. identity politics on the left is a response to the same erosion of belonging.
.. we lack a compelling civic theology for the twenty-first century—a theology of the nation
.. In its absence the alt-right will continue to grow.
.. A nation will become an idol, however, if its cultural inheritance is not oriented toward, and inwardly transformed by, a divine inheritance.
.. “The inheritance we receive from Christ,” the late pope argued, “orients the patrimony of human native lands and cultures toward an eternal home land.”
.. It speaks of tradition, while transmitting no traditions. It guards a false patrimony, while destroying real ones
.. Race offers no inheritance, and its mere preservation reflects no human achievement.
.. Our stories, art, music, institutions, and religious traditions—unlike race—are transmitted only through special efforts of human intelligence and love. They are a bequest of the spirit, not blood.
.. The alt-right speaks a seductive language. Where liberalism offers security and comfort, the alt-right promises sacrifice and conflict.
.. . For Christians, the problem with Faustian man is not the vaunting heroism of his aims. It is the pitiable smallness of his goals.
We are not meant to merely aspire to the infinite. We are called to participate in it—to be, in a word, deified.
Faust could not overcome death. Through Christ, Christians already have.