During the period when the most incendiary items appeared—roughly 1989 to 1994—Rockwell and the prominent libertarian theorist Murray Rothbard championed an open strategy of exploiting racial and class resentment to build a coalition with populist "paleoconservatives," producing a flurry of articles and manifestos whose racially charged talking points and vocabulary mirrored the controversial Paul newsletters recently unearthed by The New Republic. [...]
[In 1996,] Paul defended the statements that appeared under his name, claiming that they expressed his "philosophical differences" with Democrats and had been "taken out of context." He finally disavowed them in a 2001 interview with Texas Monthly, explaining that his campaign staff had convinced him at the time that it would be too "confusing" to attribute them to a ghostwriter. [...]
The publishing operation was lucrative. A tax document from June 1993—wrapping up the year in which the Political Report had published the "welfare checks" comment on the L.A. riots—reported an annual income of $940,000 for Ron Paul & Associates, listing four employees in Texas (Paul's family and Rockwell) and seven more employees around the country. If Paul didn't know who was writing his newsletters, he knew they were a crucial source of income and a successful tool for building his fundraising base for a political comeback.The tenor of Paul's newsletters changed over the years. The ones published between Paul's return to private life after three full terms in congress (1985) and his Libertarian presidential bid (1988) notably lack inflammatory racial or anti-gay comments. The letters published between Paul's first run for president and his return to Congress in 1996 are another story [...]
Cato Institute President Ed Crane told reason he recalls a conversation from some time in the late 1980s in which Paul claimed that his best source of congressional campaign donations was the mailing list for The Spotlight, the conspiracy-mongering, anti-Semitic tabloid run by the Holocaust denier Willis Carto until it folded in 2001. [...]
To grow, the movement had to embrace older conservative values. "State-enforced segregation," Rockwell wrote, "was wrong, but so is State-enforced integration. State-enforced segregation was not wrong because separateness is wrong, however. Wishing to associate with members of one's own race, nationality, religion, class, sex, or even political party is a natural and normal human impulse."
The most detailed description of the strategy came in an essay Rothbard wrote for the January 1992 Rothbard-Rockwell Report, titled "Right-Wing Populism: A Strategy for the Paleo Movement." Lamenting that mainstream intellectuals and opinion leaders were too invested in the status quo to be brought around to a libertarian view, Rothbard pointed to David Duke and Joseph McCarthy as models for an "Outreach to the Rednecks," which would fashion a broad libertarian/paleoconservative coalition by targeting the disaffected working and middle classes. (Duke, a former Klansman, was discussed in strikingly similar terms in a 1990 Ron Paul Political Report.) These groups could be mobilized to oppose an expansive state, Rothbard posited, by exposing an "unholy alliance of 'corporate liberal' Big Business and media elites, who, through big government, have privileged and caused to rise up a parasitic Underclass, who, among them all, are looting and oppressing the bulk of the middle and working classes in America." [...]
"We have a dream," Rockwell wrote in that same January 1992 edition of RRR, "and perhaps someday it will come to pass. (Hell, if 'Dr.' King can have a dream, why can't we?) Our dream is that, one day, we Buchananites can present Mr. and Mrs. America, and all the liberal and conservative and centrist elites, with a dramatic choice....We can say: 'Look, gang: you have a choice, it's either Pat Buchanan or David Duke.'" [...]