Low-Tax liberalism: The rise of the Libertarian Party

[Hall]

“Although nearly all libertarians view 1978 as a precursor to what would come later, ironically what actually happened in that year’s gubernatorial election approximated an old–school communist–style takeover . Proposition 13 holding down state property taxes was driven by the standard antitax populist right–wingers, but the libertarian movement figured out a way to attach themselves to the Prop. 13 movement…they’d inject themselves into a mass movement they hadn’t really assembled, one dedicated to separate goals, and subtly shift the entire movement in their direction. ”

-From Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement
by Brian Doherty, published 2007

The California gubernatorial election of 1978 initially showed no signs of leading to the rise of the Libertarian Party. But two events happened in California that same year that changed everything: First, Proposition 13 (officially named the People's Initiative to Limit Property Taxation) was passed, and libertarians linked it to their campaign. Second, the so-called Briggs Initiative, which aimed to restrict gay and lesbian rights, narrowly failed despite modest support from former California Governor Ronald Reagan [1]. Libertarian opposition to this is widely credited with helping them in the gubernatorial election. Both of which are cited as reasons for the Libertarian Party's stunning performance in the election.

On the other hand, many Ed Clark supporters will claim that it has everything to do with this candidate's charisma.

(Ed Clark, during his campaign for governor in 1978)

Edward Emerson Clark is a corporate attorney in New York and Los Angeles. While he was still a Republican, he opposed the Vietnam War. This gradually alienated him from his party. The last straw was President Richard Nixon imposing wage and price controls in 1971, which prompted Clark to join the Libertarian Party, and quickly became a member of its national committee.
Under Ed Crane's cajole, Ed Clark decided to run for governor in 1978. Even though Clark was not technically a Libertarian on the ballot—he was listed as an independent, for ballot access law reasons, but ran as a proud Libertarian. The results of that year would prove to represent the beginnings of a new party system, albeit one that was not fully recognized at the time.


[1]: In OTL, Reagan opposed the Briggs Initiative. ITTL, David Mixner did not convince him to oppose the measure.

 

[Hall]

"Clark spent two months campaigning, with Bob and me scrambling to set up schedules……We had enough money for radio ads, but Clark was a candidate no one had heard of before the campaign, I'm still proud of what we achieved."

-From Happy 90th Birthday, Ed Clark
by David Boaz, posted 2020

Unprecedented, Ed Clark’s campaign ultimately captured 8.56% of the vote [1], which the Libertarian Party claimed was proof of people’s dissatisfaction with California’s overweening, overthieving government. Although that year’s election still ended in Jerry Brown’s landslide victory, many libertarians can proudly claim that one of its boys could control the balance of power in one of America’s biggest and most important states.

This was not blind optimism. That same year, the Libertarian Party received millions of votes nationwide and won its first state congressional seat. 1978 was a great year for the Libertarian Party, yet the party's most radical supporters saw more than just a victory in Ed Clark's campaign—from the start, libertarians dominated the coalition by no means. Ed Clark capitalized on a movement that was not libertarian, and the extent to which his success was a victory for libertarians remains questionable in their eyes. Chief among these doubters was Murray Rothbard.

(Murray Rothbard)

It is true that this suspicion would evolve into a larger conflict, but in 1978, things were far from that……

[1] OTL results: https://en.wikipedia.org/wiki/1978_California_gubernatorial_election

 

[Hall]

 

[Hall]

Ed Clark felt slightly tipsy. He rarely drank - even less when he drank this much. Suddenly, he felt someone tap his shoulder. Ed Crane is behind him, holding a cocktail. Clark looked at his campaign manager, smiled and said "Ed, you know, what we've accomplished...it's been a great day...what's up?"

Crane smiled thoughtfully, "Clark, we have all seen that the people of California - people across the United States are tired of bloated bureaucracies and the oppression of big government. This is a starting point, Clark, and believe me, people decades from now will remember this day. "

Crane was always so optimistic, Clark thought, and it was with the help of this competitive, energetic, accomplished libertarian that his campaign received hundreds of thousands of votes. As he was thinking, Crane spoke again.

"Clark, you know, MacBride - I always thought he was a failed candidate. Yeah, he was solid on libertarian principle, but beyond that? Policy detail, persuasiveness, charisma... MacBride lacked all of those. Our movement can’t rely on people like him – our movement needs people like you.”

Clark suddenly felt completely awake from his drunken state.

"Clark, we need you. MacBride, or any of Rothbard's favorite candidates will not give us victory. They are so a priori, they aren’t into learning facts. Rothbard can be great scholar, but isn’t so good at public policy. We, not him, are the ones who will bring about a libertarian century. " Crane continued.

Clark shrugged, "Tell me your plan."