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Well let's be honest, Neitzche was never what you might call an optimist. Though he does have a point, even if his view was limited. The greatest of accomplishments in history have all come from societies controlled by one person, or a small group, who had absolute power. Whether these were 'great' men is all a matter of opinion.
As for loss of freedom, I think he was reffering more to how in a democratic society major decision must meet with the approval of a majority (what ever number that may be) of the populace. Because of that many hard, but necessary decisions end up mired in what ammounts to syntax errors (if you don't know what I mean watch CSpan or CPac for an hour or two and you'll get my drift).
He was also speaking to a phenomenon that many governments and nations are dealing with. How to get honest people to come forward for public office. Anyone who possess the traits we would call great is far better served to stay in the private sector. Once you throw your hat into the ring these days you automatically throw away all claims to a private life. The media are so hungry for any scandal to up their ratings that many potentially great men and women are forced to bow out of the public eye over minor infractions of their society's 'moral code'. You then end up, not with the better candidate to run the nation, but the person who is better able to hide their indiscretions and side step any media flak (a la Bill Clinton/Jean Chretien). This is also why there is increasing support for paying elected officials more, to lure them away from the private sector.
Personally I don't give Neitzche too much weight. He was a wise man, but very depressing. I need a little light in my day...
Cheers,
Fats
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