===== PAGE 1 ===== THE [CCId MAY 1960 IDEAS ON LIBERTY Socialism Through the Back Door . . . William Henry Chamberlin 3 The Fallacy of the Minimum Wage . . . Thurman Sensing . 9 On Talking to Qurselves . . . . . . Edmund A. Opitz 1n The ABC's of Economics . . . . . . Ralph Bradford 16 Planners, Go Home! . . . . . . . Lawrence Sullivan 18 The Gold-Disposal Plan . . . . . . H.P.B. Jenkins 23 What Science and Engineering Cannot Do . Edward P. Coleson 24 Eternal love . . . . . . . . . . Lawrence Noonan 28 Our Tragic State of Confusion . . . . William C. Mullendore 32 Do the Facts Justify a Higher Tariff Wall? . . . . . . Lawrence Fertig 44 Socialism, Spiritual or Secular? . . . . Francis E. Mahaffy 47 The Result Is Slavery . . . . . . . Howard E. Kershner 54 A Better Way To Help Farmers . . . . James C. Patrick 56 Book Reviews: The Constitution of Liberty . . . . . John Chamberlain 59 Other Books . . . . . . . . . . 63 THE FOUNDATION FOR ECONOMIC EDUCATION, INC, Irvington-on-Hudson, New York ===== PAGE 2 ===== Ol gov aeons with Coast Federal Savings and Loan Association Join the thousands of others from all 50 states and many foreign countries who hold individual, joint, trust or corporation savings accounts and get the following outstanding advantages for your invested savings. HIGHEST EARNINGS —Effective January 1, 1960, we are paying at the rate of 412% per annum. Accounts opened or added to by the 10th of any month earn from the 1st of that month. ASSETS OF OVER $400,000,000.00, with over $90,000,000.00 in cash and government bonds and Reserves of over $30,500,000.00 as of December 31, 1959. AVAILABILITY OF FUNDS — Coast Federal has always paid every withdrawal immediately on request. SAVE-BY-MAIL — Airmail postage paid both ways on all transactions. 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Name Address City : Zone State ===== PAGE 3 ===== ihapiinn AR The tax © out of 10 don’t know about One of the federal government's largest they have the financing, the know-how business activities is the production of and the responsibility to do it. electric power...but 80% of the American people have not yet realized THE QUESTION the government has been using their THAT OUGHT TO BE PUBLIC taxes to pay for it. . Shall the cost of new electric plants e put up by investors—or will the To date, more than $5,000,000,000 in most of the bill? The answer will affect federal tax funds have gone to put gov- future tax levels, inflationary pres- ernment into the electric light and sures, and the extent of government power business. And the proponents encroachment into all business. of this federal “public power” are after This coupon will bring you new facts another $10,000,000,000—much of it and figures showing the impact of this likely to come from taxpayers. question on your particular interests. This free-handed spending of the Check the pieces you want. No charge. taxpayers’ money has slipped by al- . most unnoticed for several reasons. ] America s Independent . First, there has never been a named Electric Light and Power Companies “public power tax,” to alert the tax- ; ALA IE AE ER EE EE EEE ® 2s 0000s sas vss payer. Second, there has been no full- : POWER COMPANIES : dress national discussion of the matter. + Room 1113-@,1271 Ave. of the Americas And it has been traditional to disguise . New York 20, N.Y. power spending as “incidental” to such : Please send me the new booklets checked : government activities as flood-control, . below, without charge: irrigation and navigation. . 0 What oop rederal Power Ventures Cost THE $10,000,000,000 THREAT : Oy The Story Behind the Electric Power : “Public power’s” pressure groups (J “The American Worker's Stake in the © apparently count on that same anonym- : Electric Power Picture” : ity and lack of understanding to get : [J“How Federal Government Electricity the $10,000,000,000 more. . Affects the Businessman’ But there is no real need for such [0 Names of the companies that sponsor this . . : message. spending. The hundreds of independ- ent electric companies are able and . Name : . u . (Please print) ready to supply all the electricity the . Address nation can conceivably need—without City. Jone State : tapping the taxpayer. They've proved :... ===== PAGE 4 ===== THE 1eCmdn A MONTHLY JOURNAL OF IDEAS ON LIBERTY MAY 1960 Vol. 10 No. 5 LEONARD E. READ President, Foundation for Economic Education PAUL L. POIROT Managing Editor THE FREEMAN is published monthly by the Foundation for Economic Education, Inc.,, a non- political, nonprofit educational champion of private property, the free market, the profit and loss system, and limited government, founded in 1946, with offices at Irvington-on-Hudson, New York. Any interested person may receive its publications for the asking. The costs of Foundation projects and services, in- cluding THE FREEMAN, are met through volun- tary donations. Total expenses average $12.00 a year per person on the mailing list. Donations are invited in any amount — $5.00 to $10,000 — as the means of maintaining and extending the Foundation’s work. Accepted as controlled circulation publication at Irvington, N. Y., with additional entry at New York, N. Y. Copyright, 1960, The Foundation for Economic Education, Inc. Printed in U.S.A. Additional copies, postpaid, to one address: Singie copy, 50 cents; 3 for $1.00; 25 or more, 20 cents each. Permission is hereby granted to anyone to reprint any article in whole or in part, providing customary credit is given, except ‘The Fallacy of the Minimum Wage,” ‘Eternal Love,” “Our Tragic State of Confusion,” and “Do the Facts Justify a Higher Tariff wall?" Fe E Any current article will be supplied In reprint form if there are enough inquiries to justify the cost of the printing. ===== PAGE 5 ===== SocCIALISM through the front door, the passing by Congress of a law transferring to public ownership some or all of our basic industries, would not stand the slightest chance of adoption in the United States today. Indeed, this old- fashioned socialist dogma of na- : tionalization of means of produc- tion is visibly losing its appeal in th h th Europe, where Marxism has been [0 U ( p more widely accepted than in the United States. : Both the Labor Party in Eng- B A K land and the Social Democratic Party in Germany have lost three elections running to the Conserva- tive Party in Great Britain and to N00) R Chancellor Konrad Adenauer’s Christian Democratic Union in Germany. As a consequence, the German Social Democrats have drawn up a new program in which nationalization of industry does not figure. The retention of the clause in the party program which calls for public ownership of all means of production, distribution, WILLIAM HENRY CHAMBERLIN and exchange has become a subject of sharp internal debate in the British Labor Party. There are die-hards who see be- trayal in changing one comma of Mr. Chamberlin is a skilled observer and re- this dogma. But the leader of the porter of economic and political conditions at party, Hugh Gaitskell, and some of home and abroad. He has written a number of his associates believe that all-out books, has lectured widely, and is a contributor commitment to wholesale nation- to The Wall Street Journal and many nation- . . N ally known magazines. alization is an albatross around the 3 ===== PAGE 6 ===== 4 THE FREEMAN May party’s neck, come election time. magazine to Manchester than it It has now been possible in took Pan-American Airways to Britain to judge nationalization by bring the publication to New York. the practical test of how it works. His ideological blinkers, of The Labor Government that was course, excluded the possible ex- elected in 1945 nationalized the planation that such a comparative railways and the coal mines. showing was par for the course Neither coal production nor rail- when a state monopoly was com- way service has improved as a re- peting with a private organization. sult; and the miners and railway ‘workers are just as ready to re- Nationalization in Retreat sort to strikes and slowdowns Nationalization, as a result of against state boards which are experience of its workings, is not now operating these industries as an inspiring banner under which to they formerly were against private march. It is in retreat in Europe; owners. in Germany there has been a move One of the humorous features of in some industries which have the Labor Party conference at the come under state ownership to dis- seaside resort of Blackpool, where pose of shares to the public. Out- the principle of nationalization was right nationalization has no pros- hotly discussed, was that the dele- pect of getting to first base in the gates and journalists who attended United States. the conference received appallingly But there are indirect as well as bad service on the return trip to direct ways of destroying the sys- London on the (nationalized) Brit- tem of responsible private owner- ish Railways. It was even humor ship within the framework of a ously suggested that Mr. Gaitskell competitive free market which, had bribed the management to give when given a chance, has produced the worst possible treatment, so as infinitely the best economic results to convince some of the Laborite from the standpoint of workers and left-wingers that nationalization consumers alike. The most insidi- was not all they cracked it up tobe. ous and dangerous of these means Another amusing aside is that the is excessive and growing expendi- editor of the left-wing New States- ture by agencies of government at man, in theory a hot advocate of all levels, federal, state, and mu- more extensive nationalization, nicipal. plaintively pointed out in his edi- For, although America has the torial columns that it took British biggest educational plant in the Railways longer to get copies of the world, has by far the largest per ===== PAGE 7 ===== 1960 SOCIALISM THROUGH THE BACK DOOR 53 capita number of university and propping up obsolete mines to re- college graduates, and the highest claiming delinquent youths. The per capita expenditure on educa- manual of this campaign is the tion from primary school to univer- book, The Affluent Society, pub- sity, Americans are not good at lished two years ago, by the Har- arithmetic when it is a question of vard professor, John K. Galbraith. government spending. The average The central thesis of this book, individual knows that he cannot which has exerted a good deal of buy everything he may want, that influence even on those who have he must establish some system of not read it, is that private spend- priority in his personal spending, ing is intrinsically bad and public if he is not to go broke. spending intrinsically good; that But a different scale of values is popular taste and the free market applied to federal and state bud- are base and unreliable guides; gets. It is loosely assumed that that public spending should be government, which produces noth- vastly stepped up and private ing, has some miraculous means of spending sharply curtailed. Argu- creating money painlessly — that ments along this line, in some the economy which most people cases clearly derived from this know they must practice in their book, are now the stock-in-trade of private lives has no proper place left-of-center politicians and com- when it is a matter of voting mentators. higher social security payments, bigger and better pensions, larger The Painful Tax Burden subsidies to farmers for produc- One point that should be made ing nothing or less, tariff hand- clear before considering the ques- outs to fat and sleek industries, tion whether the government or lavish handouts to veterans for the individual should properly have disabilities that have nothing to do a prior claim on the individual's with their service in the armed income is that government spend- forces. ing is not and cannot be painless. Indeed there is a widespread Such expenditure can be financed campaign under way in the United in two ways: by higher taxes or States to convince the American by inflationary borrowing. And in- people that the sovereign remedy flation, the systematic destruction for all political, economic, moral, of the purchasing power of the and social ills is to have Uncle Sam currency, is the most cruel tax of write larger checks for support for all. every conceivable project, from So, when individuals and organi- ===== PAGE 8 ===== 6 THE FREEMAN May zations come up with spending however effective it may be at com- schemes for defense, welfare, edu- mencement addresses, does not ap- cation, foreign aid, and a score peal to a typical middle-class of other purposes, totaling tens of American who is struggling to billions of dollars, they are, if they cope with the cost of putting two are honest with themselves, ad- or three children through college, vocating that the present burden or meeting a high medical bill for of taxation on the American citi- someone in his family, or consider- zen be made very much heavier. ing how, after he has met his vari- But are Americans undertaxed at ous tax obligations, he can save the present time? something for his years of retire- There has been no reduction in ment. federal taxation since the first years of the Eisenhower Adminis- Government Spending Rises tration. The trend of state and Taxation rates today are fan- local taxes is steadily upward. By tastically high by comparison with and large, about one-third of what those of the years before World Americans earn is taken away . War II. The annual intake of fed- from them by taxation. How much eral revenue now is closer to the farther can this process go, espe- unprecedented outlay of the war cially in the graduated direct years than to what would have taxes which play such a big role been considered normal in the in the American financial system, twenties or the thirties. And the without completely blunting and trend of federal spending, even dulling initiative and the desire to under an Administration more earn and produce more? averse to profligate use of public One oratorical debating device funds than most of its opponents, of the spenders is to represent the * has been upward, from $67.8 bil- American people as rolling in lion in fiscal 1954 to $79.8 billion wealth and invariably using that proposed for fiscal 1961. During wealth for low and debased ends. the period from fiscal 1954 until How often are tail fins on auto- fiscal 1960, the public debt has mobiles scornfully mentioned, or risen from $271.3 to $284.5 billion. the fact that outlays on liquor, High rates of interest on gov- tobacco, and chewing gum exceed ernment bonds and the outflow of spending on symphony concerts, gold indicate that the state of first-rate books, and college endow- government credit leaves some- ments? thing to be desired. As Senator But this type of sermonizing, Harry F. Byrd of Virginia, one ===== PAGE 9 ===== 1960 SOCIALISM THROUGH THE BACK DOOR 7 of the outstanding financial ex- Resignation among Citizens perts in Congress, remarked: the Excessive government spending government has exhausted its and its accompaniment, overtaxa- capacity to tax and its capacity to tion, represent the back door to borrow. socialism. For the individualist, It is under such inauspicious self-reliant citizen who has been circumstances that it has become the backbone of the American sys- fashionable to bemoan the sup- tem of free enterprise and per- posed absence of sufficient govern- sonal responsibility cannot survive ment spending, to insist in strident in the role of a cow mercilessly tones that America will become a milked by several systems of taxa- second-class power if much larger tion, federal, state, local. He will sums are not siphoned off from lose heart and accept socialism, in the use of those who earned them the sense of an ever-widening area into the insatiable maw of gov- of substituting state help for self- ernment spending agencies. help, as something inevitable, if If one-third of America’s na- not desirable. tional income is already ear- I am old enough to remember a - marked for taxes, this proportion time when most Americans con- would have to rise to one-half, or sidered it a disgrace to receive any even more, if the varied plans of kind of public aid. Only recently I the spenders were put into opera- learned of a man with a distin- tion. And this would mean such a guished record in teaching and basic change in the nature of academic work who finds, in his American society and of the period of retirement, that social American economy, that it should security payments stand between be treated as a great issue and him and downright penury. Had debated up and down the land be- he belonged to an earlier genera- fore a decision is taken. tion when the quaint idea pre- It is difficult to say at what point vailed that what a man earned was the national debt becomes unre- his own, he could easily have saved deemable and a hopeless mortgage enough to provide for his own re- on future generations. It is hard tirement. to say what rate of taxation will Should present rates of taxation prove the last straw that breaks and present costs of medical aid the back of that patient camel, the continue to soar, the pressure for American taxpayer. But limits, on some kind of “socialized medicine” both these points, there certainly may become irresistible. A man are. who could face a stiff medical bill ===== PAGE 10 ===== 8 THE FREEMAN May when what he earned was his own education, and varied emphasis in is often in no position to do so to- subjects which are derived from day. And, as people are taxed more our present system of a multitude and more to pay for public hous- of unstandardized private colleges ing, they become increasingly un- would be ironed out. able to provide their own housing on a commercial basis. The Crucial Issue Moreover, if the advocates of uninhibited state spending have State help or self-help? Is the their way, if the burden of in- individual entitled to keep the dividual taxation is increased 50 fruits of his labor or is he to be per cent or more above present adjudged an incompetent moron levels, the private capital that is who must have a board of state the lifeblood of industrial growth guardians to spend the money will dry up. Savings will drasti- which he is not able to spend him- cally diminish. This would very self? probably lead to the substitution These questions, I believe, point of state for private capital, which up one of the big and significant would certainly be socialism by the issues confronting America in the back door. twentieth century. It would be of In other ways, too, life would immense educational benefit if all become increasingly socialized. the implications of these questions Sums available for the support of could be threshed out in a nation- the private schools and colleges, wide series of debates of the which make a contribution to Lincoln-Douglas type. American education out of propor- The men in public office, in Con- tion to the number of students en- gress and in the Executive Branch, rolled, would fall off drastically. who fight for holding the line Since the individual would have against further federal spending fewer resources of his own, the are fighting for something even clamor for socialized education, more important than financial along with socialized medicine, stability, although this is certainly would grow stronger. The logical a most worthy and necessary end would be an educational sys- cause. They are fighting to pre- tem supported by and controlled serve some of the most important by the federal government from traditional American values top to bottom. All the beneficial against an insidious and dangerous and stimulating diversity, the com- attempt to smuggle in socialism petition in differing approaches to by the back door. pe ===== PAGE 11 ===== "THE FALLACY OF THE MINIMUM WAGE THURMAN SENSING NONE of the advocates of a guar- the means. The main objective, its anteed minimum wage tie any proponents say, is to give every- strings to the wage; they simply body a living wage. Well, everyone advocate it as the wage to be paid wants at least a living wage — and to all those who work. One of should have it, if he deserves it. their claims is that an increase in Most everyone wants a great deal the minimum wage will produce more than a living wage — and greater prosperity. should have that, too, if he earns If that argument is correct, why it. not make the minimum wage But no one who believes in free- $12.50 per hour? Surely $12.50 dom will argue that a person per hour would produce ten times should have a certain wage as much prosperity as $1.25 per whether he earns it or mot. The hour. Actually, of course, hardly only real guarantee behind a wage anybody would work any more — in a free country is the produc- but when he did, just think how {tivity of the person who receives prosperous he would feel! the wage. The whole argument of a guar- Our whole way of life in this anteed minimum wage is falla- country is opposed ‘to any sort of cious. It is wrong in principle, planned economy by government. therefore it is wrong in practice. This means that our way of life It leads to evils much worse than is opposed to the fixing of mini- those it proposes to cure. mum wages — because, deny it The whole trouble is that it is though we may, the fixing of so easy to confuse the end with wages by legislative action can be _— regarded as nothing else than part Mr. Sensing is Executive Vice-president of and parcel of a planned economy. Southern States Industrial Council, Nashville, Tennessee. Moreover, we must not forget that 9 ===== PAGE 12 ===== 10 THE FREEMAN May if the government is allowed to States, employees or employers, assume the power to fix minimum would willingly or knowingly en- wages and maximum hours, there dorse. Socialism never has 1s nothing to keep the government brought, and never will bring, a “from reversing this process and high standard of living. We have fixing maximum wages and mini- only to look at what happened un- mum hours. When that happens, der the socialist government in where is your freedom? Great Britain, where it promised Also, the result of fixing mini- happiness and produced misery. mum wages must not be over- Socialism is rich in promise but looked. The law states that the poor in performance. employer must pay this wage to Under the second alternative, whomever he employs. If the em- we find ourselves with a great ployer is unable to pay the wage, body of unemployed. They are un- however, the law doesn’t force employed not through any fault him to employ anyone at all. By of their own but simply because putting a strait-jacket on the the laws of the land have made it wages he must pay, it is very unprofitable for them to be em- easily possible that the employer ployed — but they are still unem- would have no other recourse than ployed. . to close down. But here again, the advocates of the planned economy step in and ‘Two Ways To Socialize say the government must also The government then is faced guarantee full employment. So who with two alternatives; either the takes over? The government business must be taken over by again, of course, and the first the government and the workers thing we know we are led straight paid without any reference to the into socialism or communism or . earnings of the business; or the dictatorship — all totalitarian in workers go on relief and are nature and all equally bad. issued a dole at the expense of the general public. There is no question here of the Under the first of these two chicken or the egg. In this case, alternatives, of course, we have productivity comes first; the wage state socialism, a system of gov- comes second. Otherwise, we have ernment which it is inconceivable socialism — which drags everybody that the people of the United down. ~ ===== PAGE 13 ===== ON TALKING TO OURSELVES The REVEREND MR. OPITZ of the Foundation staff replies to a FREEMAN reader’s observation that “we are talking to ourselves when we ought to be addressing the world.” Dear Mr. .................... : at work; we are doing it to our- selves.” But, obviously, the “we” Perhaps you have had the experi- who are doing it are not the “our- ence of expressing your concern selves” to whom it is being done! over the mounting national debt Some Americans are doing certain and being reassured, ‘“There’s things to other Americans, and our nothing to worry about; we owe it question concerns the rightness of to ourselves.” those “certain things.”, When one Most people now see through of our citizens assaults another this bit of semantic sleight of citizen, people don’t dismiss the in- hand. “We” who owe the debt are cident by saying, “We are doing it one set of people. The “ourselves” to ourselves”; they pass judgment to whom the debt is owed are— on the act. When our group does with possibly some overlapping — something to another group, all of a different set of people. us know that “we” are the first set Similarly, welfare staters try to of people and we never think of brush off objections to collectivist the second set as “ourselves,” but political interventions by telling as the others. the critics, “This is majority rule Such distinctions as these are 11 ===== PAGE 14 ===== 12 THE FREEMAN May clear to many people, but move the we do so even if we had the power. discussion over into the area of Nor can we force anyone to par- libertarian concern — the collectiv- ticipate in one of our seminars or ist trend and how to roll it back — be part of the various audiences and the distinctions begin to blur. we address. Such people as do Libertarians rely on the written open their pores to the several ef- and the spoken word as their main forts of this Foundation are self- tools. The high quality of some of selected; they come within our this work is widely acknowledged, orbit because they feel that we but collectivists, nevertheless, con- have something to contribute to tinue on their way unheeding. their determination to understand Why? Because, it is alleged, we liberty better — its economic and libertarians are talking to our- political implications as well as its selves when we ought to be ad- spiritual and moral postulates. dressing the world, no less! This Our material goes out each seems to be your feeling. month to a mailing list numbering You “heartily applaud” our pro- upwards of forty thousand. True, gram, you write, and are interested we have a number of readers who in what our “capable writers have are hostile to our point of view ~ to say.” This encourages me to deal but who read us just to see “how with the one critical matter you the other half lives.” This is all raise, the point about “talking to right; we read Marxian and col- ourselves.” “I am afraid,” you lectivist literature for the same write, “that there is a good bit of reason. And every so often one of talking to ourselves going on in these persons gets a better focus this field. . on our philosophy and moves in our direction. I don’t know how The Listener's Choice many readers we can claim for Let’s face it: we are, in a sense, each copy of THE FREEMAN, prob- “talking to ourselves”! But is this ably several; but let's keep the fact surprising or in any way de- ~ figure at a minimum. Let's say plorable? No! Not if it be under- that “ourselves” in this context stood that “ourselves,” in this con- refers to only forty thousand per- text, refers to all the persons suf- sons; forty thousand persons try- ficiently interested in liberty to ing to better their own grasp of concern themselves with its future. the philosophy of liberty. I am far Obviously, we cannot force people from asserting that we are doing to read THE FREEMAN or any other a good job at this thing; our in- libertarian literature, nor would adequacy in the face of what ===== PAGE 15 ===== 1960 ON TALKING TO OURSELVES 13 needs doing is obvious. But the posed to it. We don’t peddle attrac- better job, if and when it is done, tive labels which people can simply will be done in the same way, by pin on themselves; we offer facts, “talking to ourselves.” “We” have ideas, and arguments which are to talk to “ourselves” for a simple merely the raw materials out of reason: the “not-ourselves” are which each person must fashion not listening! the philosophy and convictions Consider this problem as it is which become peculiarly his own. exhibited on the church scene. This requires time and personal Church people, by and large, ex- effort, and all we of the Founda- hibit standards of probity some- tion claim is that we can initiate a what higher than the standards person into this field. Perhaps we which obtain in the society at can counsel his first few steps and large. One might say, therefore, offer suggestions for further read- that churchmen do not need the ing and study; beyond this he ministrations of the pulpit as must find his own sources of in- badly as do those who never be- struction. We know from our own come part of a Sunday morning experience, reinforced by the testi- congregation. But in the nature mony of countless others, that of things a sermon can be de- while this effort may be painful livered only to those who come to at times, it is genuinely re- hear it; it is the already converted warding. who continue to draw upon the in- spiration and wisdom each person What Are the Questions? needs for further growth. Simi- To your observation that we are larly, the people who are already “talking to ourselves” you add within FEE’s orbit are, by and that “not enough of us are listen- large, the very persons who are ing.” There you have a point! already the ablest expositors and Liberty in this country has lost practitioners of liberty. It has to ground, in large measure, because be this way. so many people think they already At the same time, we'd be happy understand all that needs to be to be reaching forty million a known about it! “We sound month. We'll approach this figure thinkers,” they say in effect, only as those now in the “not- our- “know all the answers; all we have selves” category are attracted into to do is wrap them up in a pleasing the circle of the “ourselves.” But bundle and sell this package to the our work, by its very nature, im- masses.” Well, the person who poses a demand on the people ex- thinks he has all the answers is ===== PAGE 16 ===== 14 THE FREEMAN May really one who has never asked can put into the field. Start with all the questions! Every one of the Communist and Socialist par- us is, to some degree and in most ties, add the theorists of the subjects, part of ‘the ignorant monopoly unions, the lobbyists of masses”! This means that ours is private organizations pressing for really an educational task, not a this or that bit of collectivization, selling job; and the education the left-wing professors and should begin with the only person preachers, segments of the Repub- over whom we have control — one’s lican and Democratic parties, the self. Thus, the improvement of numerous pressure groups who self has been one of FEE’s major want government intervention in emphases. ’ order to help their particular en- If a person has properly tended terprises, and it must be admitted to this first order of business, he that we face a formidable array. will stimulate questions in others The odds would be much too great, and become a source of learning except for the fact that we can upon which others will draw. And count on having our team filled as he formulates and candidly out by volunteers. gives off his best insights, his own understanding grows. But, if he The Individuality of Growth thinks he has all the answers and The philosophy of freedom aims tries to peddle them to people who at personal growth by removing are not asking the questions, he the obstructions which stand in makes a nuisance of himself, does the way of creative release and little for the cause of liberty, and direction of individual human en- may eventually quit the cause in ergy. This means that the persons utter discouragement. most accomplished in the actual There is a handful of us here at daily practice of freedom are FEE working full time, according largely the busy and successful to our lights, on behalf of liberty. persons on whom all of us depend There are several other organiza- to get the work of the world done, tions motivated by a similar phi- in business and in the professions. ‘losophy. We are joined by a num- These people are practitioners of ber of clergymen and teachers and liberty. I have reference to the writers who understand liberty creative efforts of the free mind as and work for it in their own bali- it produces a better medicine, a wicks. But add us all together and more efficient tool, a safer tire, our numbers are insignificant com- a sounder philosophy, a lovelier pared to the team the other side poem or song, a more useful ===== PAGE 17 ===== 1960 ON TALKING TO OURSELVES 15 gadget, a more apt technique of libertarian concepts as they are in management. These are the benefi- the practice of freedom principles, cial fruits of free men at work, the free society will go on steadily available to each one of us. contracting. The only way to push But in the same sense in which back these boundaries is to con- today’s technologist or merchan- tinue “talking to ourselves” — but diser is a projection of yesterday’s not necessarily in the same old researcher in pure science, we way. Liberty, it has been said, de- must acknowledge that every one pends on eloquence, and eloquence of us who today reaps the many is effective communication. Men fruits of a free society is in debt want freedom as much as they to those who have worked and con- ever did, but not many have tinue to work at the philosophy of learned to voice their aspirations liberty. Each one of us, of course, effectively in a modern idiom. The has priorities on his time, and it literature of liberty is mostly is up to each person to allocate his “past tense’; our job is to make own time according to his convic- it contemporary so that it meets tions. But unless the practitioners the modern mind at its growing of liberty at the level of goods and edge. When that is accomplished, services become students of the we'll still be “talking to ourselves” subject as well, the freedom team —but the world may pause to is in a bad way. Unless a signifi- listen in. cant number of people can become Sincerely, as skilled in the exposition of EDMUND A. OPITZ te TY Education and the Individual IF MAN were merely an animal, his “education” would con- sist only of scientific feeding and proper exercise. If he were merely a tool or an instrument, it would consist of training him in certain response and behavior patterns. If he were a mere pawn of the political state, it would con- sist of indoctrinating him so completely that he could not see beyond what his masters wanted him to believe. Strange as it may seem, adherents to each of these views can be found in the modern world. But our great tradition of liberal education supported by our intuitive feeling about the nature of man, rejects them all as partial descriptions. RICHARD M. WEAVER From the pamphlet published by The Intercollegiate Society of Individualists ===== PAGE 18 ===== 4 the ABC) of Modo Economica RALPH BRADFORD is for Quality. People or things Possess it or not. The degree of it springs From reaching for standards. The best you can do Is strive for the quality label — for you. R. for Reason, to which we appeal To bolster our causes, with fervor and zeal, Until it says no to our gain or our pride — Then Reason 1s ridiculed, damned, and denied. S. for Satan, who used to be feared And hated by all who were properly reared; But Satan assumes many forms, and his double, Old Something-for-Nothing, accounts for our trouble. T. for Truth, which is central in life, But seldom observed in its fullness. The strife Of living obscures it, and over it falls The shadow of doubt — and yet ever it calls. U. for Us and our Union of States, Where each has the freedom to earn what he rates; But some who contend that the rates are unequal Would tax, seize, and squander, ignoring the sequel. 16 ===== PAGE 19 ===== 1960 THE ABC’S OF MODERN ECONOMICS 17 y 1s for Victory, sweet to the taste For only a moment — the product of waste And death and destruction. The danger of winning Is this: that your troubles are only beginning. y y stands for the Wisdom that springs From deep understanding of men and of things. Transcending intelligence, higher than knowledge, It can’t be transmitted, or taught in a college. XxX 1s the symbol of subjects obscure And objects unseen, with a mystic allure: The yet-undiscovered, impending and vast, Is greater than all we have learned in the past. Y. for Youth, no better or worse Than in Cicero's day — except for the curse Their blundering elders, through many a year, Have fastened upon them: the torment of fear. yd is for Zoo, where the monkeys look out On you and on me as we amble about, With a hint of contempt in their simian eyes. And sometimes I'm stopped with this shocking surmise: That a modern millennium well might begin, If we let them all out, and they locked us all in! ===== PAGE 20 ===== LAWRENCE SULLIVAN Planners, Go Home! Can we escape the plague of planners? REFLECTIVE world opinion appears Our own Bureau of the Budget suddenly to have got hold of the reports total expenditures of fact that no Five-Year Plan ever $8,391,000,000 planned for “re- has delivered as promised. search and development” programs Russia has modified six of her in fiscal 1961. This compares with Five-Year Plans in mid-stream; only $74,000,000 for all such fed- India already has publicly cut eral programs in 1940. The day back her extravagant goals in may be close at hand when we will three; and Red China has modified find ourselves spending so much two expansion visions in ten years. for officially planned development Every cut-back in socialist de- that we have no funds for the liveries is explained by unfore- things we really should be doing seen developments —circumstances today. beyond the planning ken of the A holiday for planners easily professional state planners. may be our next national mood, or Is social planning a new science, hysteria. In the soft-music candle- or merely a facile scheme of po- light of the more stately bistros litical payola? on Capitol Hill, of a pleasant Eugene Lyons once summarized Spring evening, one senses a rum- his ten-year impressions of Mos- ble_of legislative chatter which cow planning with the observation: seems to murmer, “Planners, Go “I know men and women without Home!” the ability to keep their own household accounts in order who Foreign Concepts have no hesitancy in tackling the The scourge of professional godlike bookkeeping of human planners hit America like a cy- destiny.” clone in the mid-1920’s, a direct EE — import from the n 08 r Mr, Sullivan is Coordinator of Information, p . ew Dp twa U. S. House of Representatives. socialist areas of Europe. Under 18 ===== PAGE 21 ===== 1960 PLANNERS, GO HOME! 19 communist doctrine, state plan- lated all the new programs pre- ning became for that generation, sented in formal bills on Capitol “the wave of the future.” The Hill during 1959. These measures, new literature of the era, as typi- had they all passed, would have fied by Main Street and Manhat- called for more than $300 billion tan Transfer, and by the vitriolic in the ensuing five years — all on debunking biographers, made na- top of the present budget! tional planning the fashionable “Future commitments on public fetish of the intelligentsia and works already begun — housing, beatniks of that day. highways, and similar projects — Forty years of history now re- total $98 billion. veal some stark truths about state “Even if Congress starts no planning: (1) The more planners new programs this year, certain we have, the bigger grows the tax existing ones contain built-in in- bill from year to year; (2) With- creases for civil aviation, mer- out ever a thought how the money chant shipping, veterans’ pensions, is to be raised, planners throw off outer space, and many other pro- their grandiose schemes in mil- grams. These built-in increases lions and billions from week to amount to over $2 billion for fiscal week — for schools, hospitals, rec- 1961, and already will add a billion reation, senior citizens, moon dollars to the 1962 budget. shots, birth control, muscular dys- “Facing us also are accrued lia- trophy, or fallen arches; (3) The bilities estimated at some $30 lads who make the more grandilo- billion for military retirement, $28 quent national plans seldom are billion for civilian employee re- around at maturity date, leaving tirement, and about $300 billion only the stay-put taxpayer to face for future pensions, compensation, the sobering reality of the final and other benefits voted for cost sheets. The original planners, veterans. These accrued obliga- by this time are busy at blue- tions for past services total printing fantastic new projects, in roughly $358 billion.” Alaska, Puerto Rico, or Laos. Secretary Mueller’s summary In government or out, every thus presents the picture: public planning group is sustained Built-in budget in Washington and the principal commitments $ 98 billion State Capitols by an alert and ag- Unfunded benefits 358 ” gressive pressure-group lobby. Federal debt 294 ” Secretary of Commerce, Fred- Total future - erick H. Mueller, recently tabu- obligations $7650 ===== PAGE 22 ===== 20 THE FREEMAN May This tabulation takes no account in 1923, with great propaganda of unfunded liabilities under our fanfare. federal Social Security programs. At that point, the total urban population of Russia averaged Communist Housing 6.45 square meters of living space Historically, the most convinc- per person. By 1932 the available ing documentation on frustrated living space was only 4.94 square planning comes directly from the meters per person, and by 1955, planner’s fatherland. 4.78 square meters. No other nation in modern his- European public health social- tory has attempted economic plan- ists in the nineteenth century had ning on so vast a scale as Com- agreed upon 9 square meters per munist Russia. In the communist person (96.75 sq. ft.) as the mini- lexicon the Gosplan is the very mum hygienic standard for urban beginning of economic life. As living space. outlined by Saburov before the Czarist Russia had achieved 7 Twentieth Party Congress of 1956, square meters per capita in 1914 the Gosplan develops production or about 78 per cent of the then schedules not only for the entire accepted European socialist stand- national economy, but “for indi- ard for cities. By 1955 communist vidual branches, for every enter- planners had pulled the Russian prise, building site, and collective per capita housing area down to and state farm.” 53.1 per cent of the 1880 standard. “This will permit determination and direction of the development 4 Deferiorating Condition of every enterprise over the com- By this record, the housing ing years.” planners in ‘Russia not only failed The first major area of Bolshe- to keep abreast of normal popula- vik social planning was in “hous- tion growth, but actually reduced ing for the masses.” Soon after average urban living space per the 1917 revolution, Lenin abol- capita. Urban population is four ished private ownership in land, times what it was in 1923, but the nationalized all privately-owned total urban living area has ex- housing, and established an air- panded only by three. Urban hous- tight government monopoly in ing standards throughout Russia construction. today are the most miserable in The first national housing pro- all Europe. gram, a segment of the New Eco- In the words of one reputable nomic Policy, NEP, was launched world authority on Russia, Soviet ===== PAGE 23 ===== 1960 PLANNERS, GO HOME! 21 housing today, after 37 years of perience reflects perhaps one socialistic planning, “remains one deeper purpose of socialist plan- of the worst blights on the com- ning — to promise needy multi- munist record.” (Timothy tudes pie in the sky, without a Sosnovy, Problems of Communism, moment’s practical thought how Washington, 1956, p. 31.) the promise may be realized. So- Translated into our own meas- cialist planners gain stature and ure of feet and inches, urban prestige, not so much by realiza- Russians today have less than 51 tion of their heady dreams, as by square feet of living space per the intoxicating visions they pro- person, or about 205 square feet ject before the confused and dis- for a theoretical family of four. traught masses. The rosy promise This would mean one room —the alluring empty vision —is roughly 10 by 20 feet for every the political stuff on which social- family. Current U.S. housing ism thrives. standards allow 320 square feet The promise of a million new per person, or better than six houses at some indefinite future times the most recently measured date will win far more votes and standard in Moscow, in 1955. command much stouter political Such is the supreme accomplish- allegiance than will actual de- ment of planning in the first target livery of one hundred real houses area of communism — “housing this year. Most Russians have for the masses.” been living in roseate houses-on- . . order since 1918, but, concludes The Alluring Empty Vision Sosnovy, “it is worth noting that In Russian housing, as almost the present living-space standard everywhere else in national plan- leaves the urban citizen substan- ning, the goals were not met tially worse off than he was over chiefly because labor and materials forty years ago under the Czars.” were not supplied in the measure This is one principal reason why called for by the master plan. To the Kremlin dare not submit itself quote Sosnovy: “Even the meager to an honest public appraisal by goals set in the plans went long the people through the medium of unfulfilled, due to a discrepancy a free election anywhere behind between the planned volume of the Iron Curtain. Philosophers in building and the resources made every latitude and longitude de- available in both capital and clare it still is universally true labor.” that “you can’t fool all of the This documented national ex- people all of the time.” ===== PAGE 24 ===== 22 THE FREEMAN May How Will It Be Financed? is recognized at $10 million over Defenders of socialism are quick five years. “Let’s get it started,” to point out that every successful runs the planners’ lingo, “and we'll industry maintains a research and raise the extra money somehow!" development agency to plan future This is precisely the technique growth. of built-in budget increases cited The essential difference is that by Secretary Mueller in his industrial planning is paid for by breath-taking tabulation of $750 the industry as it moves forward. billion in future federal obliga- Professional political planning tions. This is the stuff inflation sometimes promises to be ‘“self- is made of. , liquidating,” but never is. “Our hazard today,” Secretary A striking example is our cur- Mueller concludes, “is not depres- rent national highway program. sion or famine or plague or inva- Although less than four years old, sion or civil war. It is the ever- it is already about 25 per cent present threat of inflation. Free short of planned funds to finance enterprise has blessed us with rec- the 1961 mileage. A program esti- ord prosperity and all the re- mated at $33 billion when launched sources essential to unmatched in 1956 is now estimated at $41 growth. And we have peace. billion. Over and above the special “Shall we enter this decade's new gasoline and rubber taxes Promised Land of unprecedented earmarked for the roads fund, abundance? Or, by our own folly, there is presently in sight by 1962 shall we utterly ruin the brightest a deficit of $10 billion in the road prospect that ever beckoned man- financing plan. kind ?” If we are ever to put a net over The Secretary’s question likely our runaway public planners, will be answered by our future budget officers at every level of policytoward irresponsible govern- government must adhere to one ment planners. massive policy — no program may A five-year moratorium on pub- be received from any government lic planning would offer at least a planning group unless and until breathing spell — and a long over- it shall be accompanied by a de- due opportunity for every budget tailed scheme of new taxes to agency in government — local, finance the proposals to complete state, and federal — to take a new realization. Plans too often are financial bearing. launched with a million-dollar ap- Can we escape the plague of propriation when the total cost planners? ~ ===== PAGE 25 ===== THE GOLD-DISPOSAL PLAN Or — A CASE OF GEOGRAPHICAL DISCRIMINATION It was a windy afternoon At story-telling time. Old Kaspar shut the windows tight And poured a rum-and-lime, While Peterkin and Wilhelmine Looked at the colorvision screen. They saw a pier where armored trucks Were stopping at the slips And dumping loads of yellow bars Beside the foreign ships, Where men with solid wooden crates Were standing by the loading gates. “Now tell us what it’s all about!” The little children cried. “It is the Gold-Disposal Plan,” Old Kaspar soon replied. “The Federal Treasury has sold A few more tons of surplus gold.” “Did we get paid for all that gold?” Asked little Wilhelmine. “The buyers paid,” Old Kaspar sighed, “In dollars long and green. But since they live in foreign lands . We put the dollars in their hands.” a (Y A “Would Uncle Sam sell bars of gold » v To simple folks like us?” “If we lived overseas he would, With no delay or fuss. But selling gold to people here Would wreck the Money System, dear.” H. P. B. JENKINS Economist at Fayetteville, Arkansas 23 ===== PAGE 26 ===== WHAT SCIENCE and ENGINEERING CANNOT DO EDWARD P. COLESON DURING World War II in Europe, ing long after it should have the belligerents on both sides per- stopped, according to any reason- formed miracles of production to able calculations. try to keep their forces in the field and supply the general population [ndustrial Paralysis with at least enough to keep soul Many of us remember another and body together. This seems all’ day a dozen years before the col- the more amazing when one recalls lapse of Hitler's Germany when the nearly impossible conditions our own. industries had well nigh under which this was accom- ground to a halt. This time there plished. Always there was a short- were no air raids to hinder or ma- age of everything — except enemy terial shortages to delay the pro- bombers and blockbusters. Yet ductive effort. A few sparrows hardly had the planes droned out twittered up in the eaves and there of sight before repair crews was a film of dust over everything, climbed out of the catacombs to but no visible evidence that any- clear away the rubble and make thing was out of order. Apparent- necessary repairs so that work ly, the machines needed only to be could go on. In spite of the fact tidied up and oiled to be ready to that they were woefully short- resume production, and surely handed ‘both in workers and tech- there was no lack of operators or nicians, somehow they managed to engineers to keep them going. Why keep their industrial machine go- didn’t our industries run? —_ These two scenes are but sym- Urinamon Untoog pr of Economics at Taylor 119 of the paradox of our time. 24 ===== PAGE 27 ===== 1960 WHAT SCIENCE AND ENGINEERING CANNOT DO 2b There’s an old saying that the pen tific” in the usual sense of that is mightier than the sword. In con- much abused word. The writer has trasting the record of our own in- no quarrel with science as such, ability to keep our economy going since he was a mathematics and and the European wartime success science major as an undergradu- in continuing production with a ate and worked as a technician in scorched and battered industrial a large industry for several years. machine, one might conclude that But to a multitude of people sci- cobwebs were mightier than TNT! ence is a sacred cow, or like ‘“Duz,” Outwardly, there was nothing does everything. It is difficult to stopping our presses, lathes, and believe that it is the true scientist assembly lines except an occasional who feels this way about it; gossamer thread; but we couldn’t rather, we find a lot of panicky get our machine cranked up and Americans who have at last caught going for more than a decade, un- on that somehow something is til driven to it by World War 11. amiss without being more than . vaguely aware what the trouble is. Post Sputnik Madness However, if our problems were Since Sputnik went into orbit, only technical, we could always we Americans have been obsessed find someone, a man with a big with the notion that there’s noth- wrench or a makeshift engineer, ing wrong with the country that who could make the necessary re- can’t be figured out on a slide rule pairs or adjustments, even in an or surely with an electronic com- hour of extremity like Hitler’s de- puter and that all will be well cline and fall. when we've splattered a big blob of red ink on the moon. Therefore, Unlearned Lessons of the all the country needs is more scien- Last Half Century tists and technicians, and no ex- When one ponders our present- pense should be spared to produce day problems and the nationally them. As a matter of fact, science advertised panaceas for them, he and mathematics, like most other is impressed or depressed with the serious and difficult subjects, have conviction that, as a people, we been neglected in the last several Americans have learned nothing years, and our students should go and forgotten nothing since 1929 back to work along with a lot of or, indeed, since World War I. other folks in America. But it While there are heartening signs simply is not true that the great that we may be catching on at last, problems of our time are ‘“scien- so much of what passes for bold ===== PAGE 28 ===== 26 THE FREEMAN May new thinking today is still the side and outside of Germany. Sta- same ‘‘cheap money — make work” tisticians and experts considered sort of New Dealism which failed the application of the rules of through long dreary years to bring laissez faire under the prevailing us out of the Great Depression. circumstances as practically fan- Nor is there any excuse for this tastic — since the situation was on the part of us who are old such that a person could buy in enough to recall at least a genera- those times only one dinner plate tion of human experience. In addi- every five years, one pair of shoes tion to the lessons of the 1930's every ten years, and one suit every in the United States, we have had 90 years; while only every fifth time to observe what a “managed baby had a chance to get diapers economy’ would do for people and and only every third German could to them around the world. The re- hope to be buried in a coffin.” sults to date, whatever the label or location, have not been impres- The Population Issue sive. This “case study” is of particu- Nor are the lessons of the re- lar interest because the German cent past wholly negative, con- people found themselves in 1945 cerned only with the unfulfilled in a state of abject poverty and promises of a century of socialist destitution like unto the so-called dreamers. We have also been priv- underdeveloped nations of the ileged to see what hard work, world. These unfortunate coun- sound money, and free enterprise tries, only now emerging from could accomplish in the revival of colonialism, have blamed all their West Germany since World War problems on their foreign masters. II. Lest we forget the utter depths The Germans are not yet truly from which the Germans have masters in their own house, and risen and the economic philosophy even the Allied Powers continued which sparked the German mir- to demolish what industries sur- acle, here, briefly, is the story in vived the war for years after the the words of Dr. Ludwig Erhard end of the conflict. Western Ger- himself : : many also had a population prob- “We decided upon and reintro- lem. It is not commonly realized duced the old rules of a free econ- that in the postwar era she found omy — the rules of laissez faire. herself with about twice the popu- We abolished practically all con- lation density of India per square trols. . ... Thereby I met with a lot mile and has had to absorb millions of opposition and doubts, both in- of refugees on top of that. Indeed, ===== PAGE 29 ===== 1960 WHAT SCIENCE AND ENGINEERING CANNOT DO 27 the ‘teeming millions of Asia” the fact that just across the Iron theme has been much overworked. Curtain is another group of Ger- Even Switzerland with all her mans — a “control group,” as the waste land has as great a popula- scientist would say. It is hard to iton density as India per square imagine a fairer comparison or a mile. more striking contrast. Both are While unquestionably the mon- German, yet West Germany liter- soon area of Asia needs to sta- ally has risen from its own ashes bilize its population, one could to be the going concern it is today make a good case for the argu- in scarcely more than a decade, ment that there are not too many while East Germany has stag- people in the world even yet. There nated. Think what we could ac- are just too many of the sort that complish for ourselves and the are — too many on the other side world if we could but free our- of the world who produce little and selves from the mercantilist and too many on our side of the globe socialist fallacies which strangled who can produce abundantly, but us for a dozen years during the who hold to the ancient mercan- Great Depression and have ham- tilist superstition that we are en- pered our economic activity as riched by limiting output. Appar- long as anyone can remember. The ently, according to their mathe- way lies open. The world has noth- matics, America will become in- ing to lose by a mighty revival of finitely wealthy as our productiv- freedom — nothing but its com- ity approaches zero. munist chains. What if the Rus- What makes the German “ex- sians do get to the moon first? We periment” particularly fascinating could more than gain on earth from a scientific point of view is what might be lost in outer space. Each in His Own Way IDEAS ON LIBERTY THE FREE TRADER holds that the people will employ their labor and capital to the best advantage when each man employs his own in his own way, according to the maxim that “A fool is wiser in his own house than a sage in another man’s house”; — how much more, then, shall he be wiser than a politician? WILLIAM GRAHAM SUMNER, What Is Free Trade? ===== PAGE 30 ===== You are a member of the jury in this fictional court case. THE COURTROOM was hushed as the judge entered the chamber. It was crowded and many people could find standing room only. The trial, of course, had attracted nation- wide interest and you could almost reach out and feel the expectancy. The defendant, Charles Akins, was a rather small and timid look- ing man. Perhaps the timidity was a matter of fear — surely the somber courtroom and the overpowering majesty of the law were enough to inspire fear in a defendant. Mr. Akins certainly did not look like a criminal, As a matter of fact, he really looked quite respectable. But he did look frightened. And yet, there was determination there. And just a gleam of courage shin- ing through, too. Perhaps we should tell you now that the year was 1975. Not that there was anything so special Mr. Noonan is a businessman in Seattle. 28 Got . [5 LAWRENCE NOONAN about ’75. Children went to school, grew up, worked, got married, and reared their own children. People went to church, voted, talked poli- tics, argued, and endeavored to understand the subtleties of eco- nomics. But, all of it was just a little bit different. Especially in the way that people looked at things. The Judge, the Honorable War- ren Faber, having completed the preliminary ceremonies, was look- ing rather curiously, we thought, at the defendant. “Mr. Akins,” he said, “it is my understanding that you have re- tained no counsel and that you wish to defend yourself. Consider- ing the gravity of the charge against you, I feel that you might like to reconsider.” “No, your honor,” Akins re- plied, “I am going to defend my- self.” “Mr. Akins, you are charged ===== PAGE 31 ===== 1960 ETERNAL LOVE 29 with a federal offense and are be- had expanded our mining consid- ing tried in a federal court. You erably and we needed more in the are charged with usurping the way of sales. We believed that function of the government, of platinum could be used far more undermining and attempting to re- extensively in jewelry and we place the monetary system of this bought a well-known jewelry man- country. With serious charges of ufacturing firm. We experimented this nature why will you not avail with combining platinum with an- yourself of counsel?” other metal, and we came up with Mr. Akins seemed to be shiver- something very beautiful and prac- ing slightly. tical.” “Your honor, the facts have al- Judge Faber interrupted. “Mr. ready been more or less deter- Akins, let me interrupt a minute. mined. This is a matter of right or Up to this point you have simply wrong. There isn’t any legal thing told us that you were a mining involved here. I'm not guilty of company and had turned to the anything. I simply want to tell manufacture of jewelry from what happened. I want to tell my platinum?” story. I don’t need any lawyer to “Yes sir, that is correct. We had do that.” considerable success with the man- The Prosecuting Attorney, ufacture of jewelry, but as the Arnold Spear, leaped to his feet. years went by we began to notice “Your honor, I object. The de- a very unusual thing.” fendant is attempting to tell the The Judge leaned forward in- court what is right and wrong. tently. There was absolute quiet Further, I object to the statement in the courtroom. that all of the facts are known.” “We had manufactured small “Objection overruled. This court disk-like pieces of jewelry with will make its findings when the some fine detail work on each side. time comes. The defendant does Each piece had a small hole near have the right to represent him- one edge and we had intended self. Mr. Akins, you have been them as pieces suitable for pend- sworn in. Now tell us what you ants. They sold for fifty, a hun- consider to be your story.” dred, and two hundred dollars “Well, this is the way it was. apiece. Frankly, we had not ex- Back in 1957 my company, Trans- pected to sell too many of them. World Mining, became interested But as time passed, we began to in increasing the market for our experience something unusual. As principal product — platinum. We I said, in the beginning, we didn’t ===== PAGE 32 ===== 30 THE FREEMAN May know how much to expect in the “Your honor, the defendant is way of sales from a simple little beating about the bush. These piece like this. But as the years things about paper money and gold went by, the sales on this one small are ridiculous! He’s completely piece of adornment jewelry ex- dodging the main issue—what was ceeded the sale of everything else written on those coins?” the company was making! We Little Mr. Akins was growing couldn’t understand it. These small bolder. pieces — originally priced at $50 to “Your honor, it is my turn now $200, and later at higher figures to object. This was not a coin. We as the dollar price of platinum did not make these as coins. We rose along with prices of every- did put an inscription on this piece thing else — were going like hot of jewelry which conveyed — in a cakes. This went on and on. Fi- foreign tongue — Eternal Love. We nally, I had a market research out- had expected that this piece would fit do a survey to find out why we be used for gift purposes. How- were selling so many of these.” ever, many people also interpreted ‘this quotation to mean Eternal Charles Akins paused and licked Value. Later on, this piece of his lips. The audience in the room jewelry began to be used by peo- was quiet but tense. Although they ple in trade. They recognized and didn’t have a doubt about the out- trusted the purity of its alloy. It come of the trial, it was fascinat- had real value to them not only as ing to hear this story from the an ornament but also as a medium man himself. After all, you didn’t of exchange. And as it came more defy the government these days and more into use in trade, this and get away with it! new use gave it still added value. Akins went on. “We discovered People began saving them, hoard- that people were buying these as ing them. We increased our pro- an investment. People had become duction many times. We almost terribly afraid of the government's eliminated the manufacture of all solvency. The government had is- other platinum items. The people sued barrels full of paper money. wanted these. They were demand- It wasn’t even backed by gold any ing them.” more. You couldn’t even get gold.” ‘Arnold Spear had jumped to his Akins paused again. He seemed feet again. There was contempt in to be either waiting to be chal- his eyes as he looked toward the lenged by the Prosecuting Attor- defendant. ney or for a request for clarifica- ===== PAGE 33 ===== 1960 ETERNAL LOVE 31 tion from the Judge. Nothing hap- There was now both triumph pened. Both the Judge and Arnold and despair in Akins’ voice. Spear had become absorbed in the “Well, it was almost incredible story. what had happened. The chaos be- Akins proceeded now with grow- came almost indescribable. People ing confidence. He was on familiar became frantic to get more of ground. Regardless of the out- these platinum pieces. Where the come, he had only one course and value of paper money was going he followed it. down and down, the value of the “Naturally, we were in business platinum piece was going up. It to make a profit. However, we, too, became the only sound means of had become very apprehensive exchange in the country.” about the monetary situation and Sadly he continued. “People the government's policy. We fi- came to realize that sound money nally decided that in addition to was just as important as liberty selling the platinum pieces, we itself. They found that there would also make them the basis wasn’t any honest freedom with- of our accounting and billing sys- out honest money.” tem — our private monetary unit. Another pause. “But now the Thus, we began to use them as a government needs a scapegoat and medium of exchange. Of course, they've got me. They want to put we were soon threatened by the their own blame on someone else.” Treasury Department. But they We won’t bore you with the couldn’t really do anything about cross examination by Arnold it. Anyway, they didn’t try. But Spear, the Prosecuting Attorney. later the value of the paper money He was eager for a conviction and in the country became almost the rhetoric thundered in the worthless and they tried to blame court. He likened Akins to one Trans-World Mining for it. There guilty of treason, of plotting the was wild inflation. But the plati- downfall of his own country. Akins num pieces kept their value. Peo- was morally a leach and legally ple kept these whereas they would far worse. The thunder rolled on have kept gold if they could have and on. gotten it. The government’s paper We don’t know yet what the money became almost worthless.” verdict is. The jury is still out. ===== PAGE 34 ===== Our Tragic State of Confusion: A Diagnosis WILLIAM C. MULLENDORE A businessman eloquently ex- others who would listen, that this presses his conviction that the is a period not of prosperity and mid-century crisis is spiritual, not progress, but of liquidation of our economic. free institutions and real assets— a period of retrogression in Ameri- FOR THE PAST three decades, as an can life. executive of a large utility, a pri- I submit that every responsible vate citizen, and an active partici- citizen who is awake and aware pant in the discussion of many of should protest against these the issues and trends in American things: that American leadership life, I have “viewed with alarm,” should be constantly proclaiming because I have been convinced that this as a period of sound, enduring, we have been on the wrong road— unprecedented prosperity; that the a road that will lead to a disaster American people should be indulg- —and my concern has increased ing in a spending and speculative each year, particularly in the “era spree, going ever more deeply into of prosperity” since 1946. During debt and feeding the fires of a this time I have repeatedly warned ruinous inflation; and that we stockholders of the company .of should be boasting of our high which I was president, and all standard of living, growth, and Mr. Mullendore recently retired as Board progress, in face of the stark facts Chairman of the Southern California Edison which show a worsening situation Company. This article first appeared in Mod- . ern Age: A Conservative Review, Winter 1959- On every major front. 1960; copyright by the Institute for Philosoph- . . . . ical and Historical Studies, Inc. Consider that situation: Our na- 32 ===== PAGE 35 ===== 1960 OUR TRAGIC STATE OF CONFUSION 33 tion of 170 million people is called and buildings for all purposes — upon to bear the awful burden and beyond the powers of comprehen- responsibility of leadership of the sion or imagination. As a result, forces of freedom in a war for we live and are entrapped in the survival of modern civilization. most artificial, interdependent, Our military forces are deployed complicated, and complex system throughout the world in more than of human society which has ever forty countries and on the high existed. With it all, we have the seas, equipped with modern im- largest debt, the biggest burden plements of war, including mis- of taxes, the most advanced and siles, submarines, and supersonic dangerous inflation, the largest airplanes capable of handling crime and juvenile delinquency atomic weapons. Some two million rate, and the highest percentage of our men are under arms in the of mental patients in our history. Navy, the Marines, the Air Force, and various branches of the Army. The Nature of the Crisis The war which we call a “Cold These aspects of our “prosperity War” dominates our life, and we and progress” and the threats are today essentially a military na- arising therefrom are some of the tion, whether we mean to be or surface manifestations of our want to be. The cost to us per an- crisis. And we need to remember num, in man-years, in attrition of always that this crisis of ours, and freedom, and in tangible wealth, is of civilization, did not start with greater than in any previous war the Communists, however eagerly except World War II. And our un- they have seized the opportunity precedented and incalculable debt to stimulate trouble, confusion, accumulated in World War II has and disorder wherever it exists. not been reduced but has been in- The roots of the crisis lie much creased in our time of “greatest deeper — in revolutions and revolu- prosperity.” tionary changes, in wars and lesser Because of advances in tech- evil destructive forces, which are nology, automation, and the un- always at work within human so- precedented abuse of credit, cieties and institutions. coupled with all but unlimited sup- . Abler observers than I have plies of inanimate energy, we have written countless volumes about produced and are producing vol- the crisis and the events which led umes of physical equipment—tools, up to it. Two of these have sum- machinery, transportation, and marized its nature more power- communication devices, structures fully and comprehensively than 1 ===== PAGE 36 ===== 34 THE FREEMAN May could. Pitirim A. Sorokin, of Har- with our subjective reaction to it, vard, who has devoted much of that I am primarily concerned in his life to an intimate and in- this essay. In one respect I cannot formed study and interpretation agree with Whittaker Chambers: of many phases of the crisis, tells I can find little evidence in the ac- us: tivities and attitudes of the Ameri- We live amidst one of the can people that they are aware greatest crises in human his- that the crisis “threatens their tory. Not only war, famine, pes- |jyeg at every point.” I believe that tilence, and revolution, but a _ legion of other calamities are one of the greatest sources of dan rampant over the whole world. &er is the generally prevalent Un- All values are unsettled; all awareness of our truly appalling norms are broken. Mental, human situation. I also believe that moral, aesthetic and Social this unawareness is primarily due ) Chy reigns supre . e- . . to a lack of understanding, which Whittaker Chambers writes simi- 1 turn is due to a “failure of larly in his penetrating and mov- a.” and refusal to face facts ing “Foreword in the Form of a, {phe part of our people. I be- Letter to My Children,” in jjeve further that this “failure Witness: of nerve,” with resultant fantasies Few men are so dull that they of wishful thinking and “hoping do not know that the crisis fo. the best” is fundamentally exists and that it threatens . Lo . their lives at every point. It is grounded in one thing: confusion. popular to call it a social crisis. ~ . It is in fact a total crisis — re- The “Disease of Confusion ligious, moral, intellectual, so- For the remainder of these a ria PAN obs pages, 1 shall examine the thesis Western world. It is in fact a thata major element in the pres- crisis of the whole world. Com- ent-day crisis is a “sickness of munism, which claims to be a society” brought on by the “disease solution of the crisis, is itself ¢ .onfusion.” And. indeed. “con- a symptom and an irritant of «ays . ’ . the crisis? fusion’ is a medical term. Blakis- . : . ton’s New Gould Medical Diction- It is not, however, with the ob- Go jective nature of the crisis, but ary defines it as: “1. State of J mental bewilderment. 2. A mixing 1 Sorokin, Pitirim A. Man and Society or confusing.” And in Webster's in Calamity. New York: Dutton, 1943. New International. we find these p- 308. : EA 2 Chambers, Whittaker, Witness. New pertinent definitions: State of York: Random House, 1952. being confused, or disordered; dis- ===== PAGE 37 ===== 1960 OUR TRAGIC STATE OF CONFUSION 35 order, as of ideas, persons or consciousness, character, and con- things .... A mental state char- duct. It tends to destroy his an- acterized by unstable attention, chorage in principle; to weaken poor perception of present reality, his powers of perception, discrimi- disorientation, and inability to act nation, choice, and decision; and coherently.” to corrupt, retard, or halt his The disease of confusion mani- moral and spiritual development. fests itself in a human society by An epidemic of confusion is par- disorder, disunity, the disintegra- ticularly destructive of the ca- tion of unifying value-systems, and pacity for self-government and the abandonment of those princi- freedom upon which the structure ples which are the foundation and of a free society depends. elements of the established order. Russell Kirk, in his article in the A Time of Testing University of Detroit Law Journal In the great tragedy of history on “Our Reawakened Conscious- now being enacted on the world ness of Order,” writes of the pre- stage, the United States is the eminent position of order as “the protagonist of the forces of free- principle and the process by which dom; and upon our awareness, the peace and harmony of society alertness, moral and spiritual are maintained,” and quotes strength and integrity, depends the Richard Hooker to show the re- survival of civilization. Our fitness verse side of the coin: “Without for leadership is being tested. Are order, there is no living in public we meeting the test, or are we society, because the want thereof exhibiting alarming symptoms of is the mother of confusion.” The confusion and disorder in our re- ultimate in disorder is anarchy — action to the challenge of our time? the absence of all order — confu- During our country’s greatest sion complete. crisis previous to this one, Abra- ~ With the foregoing definitions ham Lincoln in his Gettysburg before us and having in mind that address, said: “We are now en- disorder and confusion are, in the gaged in a great Civil War, testing context of this discussion, very whether that nation, or any na- closely related, we may venture tion so conceived and so dedicated this more specific definition of the can long endure.” In this sentence disease of confusion as it affects Lincoln with his genius for defini- the individual in society: Confu- tion of principle used the word sion is an infection which attacks which characterizes the essence of the individual human being in his crisis — testing. A crisis is a test- ===== PAGE 38 ===== 36 THE FREEMAN May ing period, whether it occurs in ing unlimited quantities of en- the life of a single human being, ergy, and had devised the means nation, or civilization. And in this for conquering barriers of time testing period, as in school, ques- and space. Of even greater signifi- tions are asked which may deter- cance was the failure to foresee mine whether the questioned one that the vast number of individual is qualified to proceed. That is to minds could not keep pace in say, a crisis in the life of a coun- awareness and understanding with try or a civilization imposes ques- the sum total of changes affecting tions, upon whose answers the their lives. The discoveries, inven- continued existence of the country tions, and far-reaching innova- or civilization may depend. tions in human relationships were initiated by individual human Our Changing World beings; but, once launched in the As has been so often remarked, world, they affected and compli- great as was the foresight of the cated the lives of all far beyond Founding Fathers, no one in the the intention, to say nothing of eighteenth century could have con- the control, of any one man or ceived of the United States and group. the world in the last half of the twentieth century. Expansion and More Changes than Men growth in population, technology, Can Comprehend and in development of the poten- Herein lies the great dilemma of tialities of human beings for ex- freedom: Ideas originating in the ploration and discovery, for change minds of individuals are launched of and control over their environ- upon society as a whole, and their ment were predicted ; but the wild- adoption and implementation bring est prediction fell far short of about widespread and accelerating the total achievement. No wonder changes, both good and bad, in we are confused! In every field of human relations and in the na- human activity there is much to tural as well as the human environ- be confused about. ment. Thus perplexing difficulties The prophets of the eighteenth confront the individuals and century failed to realize particu- groups of organized society, in larly the enormous acceleration in their attempts to adjust to the the rate of change which would constantly changing order of result .once men were free of the things. restraints imposed by older re- Since the political and economic gimes, had succeeded in harness- forms and institutions of a free ===== PAGE 39 ===== 1960 OUR TRAGIC STATE OF CONFUSION 37 society are based upon the as- Society cannot exist unless a sumption that the individual has controlling power of will and a : appetite be placed somewhere; h : ’ Ra the more there must be with- may jeopardize his free institu- out. It is ordained in the eternal tions. This is the basis for the constitution of things, that men assertion that confusion is a dis- of intemperate minds cannot be free. Their passions forge their ease which endangers a free so- fetters ciety, and when, as now, it endangers the life of a civilization, Under communism, and other it rises to the level of high trag- forms of government which en- edy. Hence the title of this essay. slave the individual, the responsi- The word “free” is misleading, bility for restraint and direction and hence a breeder of confusion, of human relationships is largely as applied to our constitutional vested in those exercising un- system of limited government, the limited powers of government. The very essence and foundation prin- radical difference, therefore, for ciple of which is that the individ- the individual citizen, between the ual citizens must bear the burden free system and its opposite, lies of responsibility for the mainten- not in freedom from restraint, but ance of much of that order of in the degree and purpose of re- human relations which distin- straint, and whether that re- guishes and differentiates this sys- straint is self-generated and self- tem. A more accurate name for imposed (voluntary in this sense), such a system would be “respon- ‘or imposed from without and en- sible individualism,” because it is forced by the power of coercion the responsibility of the individual used at the ruler’s sole discretion. rather than his freedom, which should be emphasized as the lead- If Self-Government Fails ing characteristic of such an order Self-government, then, essen- of society. tially means self-reliance, self-re- There can be no organized and straint, self-control, self-discipline, ordered society in the absence of self-denial, and self-direction, as intelligent restraint of the indi- contrasted with the systems of vidual, either from within the in- government which make no such dividual himself or from without. assumption and place unlimited Edmund Burke, stated the point power in the government to re- with his usual clarity of insight strain, to control and direct and and expression: hence completely to enslave and ===== PAGE 40 ===== 38 THE FREEMAN May regiment the individual. It follows consciously applies to himself that, insofar as the American in order to remedy physical de- people have abandoned or refused terioration.? to obey the laws or rules for self- government — that is, insofar as individuals have failed and are failing or refusing to restrain themselves, to discipline them- selves, and in general to perform ) the affirmative obligations of self- System of society; and we have reliance upon the performance of noted a trend toward abandonment which the health and the wholeness °F loss of traits of character, of their country is dependent — to Which if lost, will greatly weaken, that degree we are abandoning our f not destroy, the former struc- free system. Or, to spell it out ture of our free institutions by more bluntly, this also means that radically changing our relations to the trend is strongly toward a One another. CL government of unlimited powers, The foregoing is only one area and the consequent disintegration of our confusion in the world crisis of all of our free institutions 1° Which we are so deeply involved. which are dependent upon the Let us now examine certain alarm- maintenance of responsible indi- 10g Symptoms .of confusion in vidualism. American understanding of the Much of what has been said basic issue in the great conflict which precipitated the crisis. This conflict, as we are only too well aware, is with the aggressive tyrants of communism who have When the American people have acquired unlimited power over, and been self-reliant, mutually help- have mobilized and are training ful and considerate, determined (but not educating), for their in their mistrust of political wholly evil purposes, hundreds of authority, this nation has been 11.500 of imprisoned people. in form”; its tradition alive; . its contributions to civilization The symptoms of confusion here outstanding. Confusion has under examination are those re- arisen as form has been neg- vealed by reports on the com- lected. The restoration will re- mynist system made during recent quire, for all of us, at least as arduous an effort, and as rigor- "3 Morley, Felix. The Power in the Peo- ous self-discipline, as the athlete ple. New York: Van Nostrand, 1949. p. 14. Confusion Regarding Communism Thus far we have considered some of the causes and general symptoms of confusion as mani- fested within our own American above is clearly and succinctly summed up in Felix Morley’s The Power in the People: ===== PAGE 41 ===== 1960 OUR TRAGIC STATE OF CONFUSION 39 months and years by American munism, and consequently of the visitors returning from Russia. true definition of the issue which These reporters include not only is at the heart of the world con- “run of the mine” American tour- flict. And it is this issue which our ists but, more importantly, news- reporting tourists are confusing paper editors, prominent state and for us. federal officials, business leaders, One of the most prominent and and members of other official and official of our reporting observers nonofficial parties who have been was recently quoted, on the front admitted to Russia to observe (un- page of all large metropolitan daily der surveillance and guidance of papers, as saying that the “essence Communists) and report to their of the conflict” between the Rus- fellow-Americans upon the com- sians and ourselves is whether munist system, how it is working, “our concept of progress with and how the Russians themselves freedom” will prevail over their seem to feel about it. “concept of progress without free- dom.” The emphasis here is upon Words Without Meaning the conflict between the means by The basic importance of the im- which “progress” shall be achieved pressions thus gained and reported — not upon the real issue, which is to the American public lies in the the end aimed at, or the meaning fact that the questions as to what of progress, as respectively defined the Communists are “up to,” what in the American and communist they intend doing to “change the systems of society. The word world,” and just how they threaten “progress” is used as if it had a us, are questions upon which most common meaning in both systems. Americans are quite uninformed It does not. and upon which they are eager to Essentially the same confusing obtain information couched in lan- idea appears in other reports, guage which they can understand. wherein there is much talk of how Generally, we understand that the much better the Russians are “suc- Russians are threatening us with ceeding” with their system in physical violence, especially with ‘competition’ with ours, than had missiles carrying atomic warheads, been anticipated by the observer in order to keep us from interfer- before his visit. Repeatedly ap- ing with their attempt to conquer pearing in the reports are such as- the world for communism; but we sertions as the following: “The have only the vaguest understand- Russian people are happy with the ing of the real meaning of com- progress they are making.” One ===== PAGE 42 ===== 40 THE FREEMAN May reporter grows ecstatic in saying, of individual human beings and “They are contented with and transform them into highly trained proud of their system because it animals, conditioned to exist as stresses equality, education, mere replaceable units and having science, culture, more leisure and no significance except as tools to be a shorter work week, the dignity used in the perfection of the com- of labor, free medical and dental munist ideal of a society of en- care, and other cradle-to-grave slaved beings deprived of all indi- services.” This same reporter, who viduality. This is the “death camp” is the editor of a large daily news- into which Communists are trying paper, warns that we had better to lure and to drive the world; and quit brainwashing ourselves by cir- this is the “essence of the conflict culating the idea that the Rus- between the Communist Powers’ sians are not succeeding with this concept of progress without free- system, because it was obvious to dom and our concept of progress him that they are making “prog- with freedom.” Now really, we do ress” in their endeavor to improve not need to go to Russia nor to the lot of their people, far beyond have Russian communist leaders anything we had predicted. come to this country to learn that! That the communist masters of the Russian people are indeed mak- The communist concept of prog- ing a real and ominous advance ress is advancement toward the toward their goal of building their realization of a dehumanized, de- slave society is undoubtedly true. personalized, and despiritualized But for Americans to speak of this society, to be attained by destroy- as progress, and as a gain for Rus- ing what they call the “myths of sia in a competitive race with us religion and other superstitions toward a common goal, is shocking which teach that there is a God or beyond expression. To the Ameri- any Power in the Universe higher can, “progress” is a good word, and than man.” The Russian goal is to it conveys the idea of advance build a world communist society by toward a desirable and laudable conquering and enslaving the peo- goal. Now, we can be sure that re- ples of the world. The purpose of sponsible, intelligent, and repre- the Russian “competition” with us sentative Americans, such as those will have been achieved if and when who made the reports above re- they have “buried us.” The means ferred to, would not have made to their goals are any and all which such favorable reports as to the will serve to crush the spiritual life progress and success of the Russian Progress Toward Slavery ===== PAGE 43 ===== 1960 OUR TRAGIC STATE OF CONFUSION 41 system, had they comprehended the and confidence, and capacity for total situation upon which they self-government required of us as were reporting, and foreseen the American citizens. For a quarter of implications and inferences which a century, we have been continu- their fellow-Americans, as well as ously, and at an increasing rate, anxious peoples in other countries, shifting more and more functions would derive from their state- and responsibilities, and hence ments. We must, therefore, in ever-increasing power and author- charity and in a spirit of forgive- ity, from ourselves as individuals ness, conclude that these reports and from our formerly free, private are but another symptom, albeit a institutions, to government and most alarming one, of the mental government institutions. We have bewilderment, disorientation, and sought to escape consciousness of disintegration of their judgment our failure and neglect by concen- and value-system, which we call trating on our physical environ- confusion, and which afflicts, in its ment — production, scientific inves- many disguises, the vast majority tigation, technology, automation, of our population. leisure, comfort, and physical health. That is, we have devoted more and more of our efforts to the As I stated at the outset, what I means of living, and we have neg- have attempted here is an examina- lected the ultimate ends, aims, and tion of some of the leading symp- objectives for which we live. toms or manifestations of confu- 2. We say we believe in freedom, sion in the minds of the American but we are quite “fuzzy-minded” people. The urge and hope motivat- about the meaning of freedom. We ing my effort have been that we tend to think first of freedom as might thus derive a better under- meaning freedom from obligations standing of the mess we are in. and responsibilities, and as a The symptoms which have been birthright of the American to re- noted indicate that our “disease of ceive something free. While we confusion” is a well-developed and readily join in any protest against serious case. The following sum- infringement of personal rights of mary seems justified: freedom of speech and religion, to 1. We are failing in our highest many of us such phrases as “free- responsibility, which is to main- dom of the spirit” mean nothing. tain, preserve and improve our Neither do we appear to be very moral environment — the self-re- sensitive about freedom of choice liance, independence, mutual trust or association; nor do we seem The Problem Summarized ===== PAGE 44 ===== 42 THE FREEMAN May really to care about oppression of more baldly proclaimed, to get the minority by the majority, par- along without God and vain- ticularly if the oppression appears gloriously to put man, his A A science, his art, his political to be in our favor. Definitely, contrivances, in God’s place. I the prevailing trend is toward am convinced that the insane modifying the American way of futility of this effort, now evi- life whenever we are persuaded dent only to a few, will one day break on most men like a tidal that the change will assist “myself wave. . . . and my group” to make “progress” toward the attainment of our own The Crisis Is Spiritual economic advantages and ‘happi- ness.” 3. We are tending to retreat from the higher dimensions of life, from the inner and the spiritual, and to spend our time and energy wisdom and even common sense,” in pursuits which contribute only pecayse we are seeking the answer to the physical. Thus by neglect, as i; the wrong dimension and the well as by positive action, we are contributing to the disintegration “Human existence in society has of the free system of this Republic pjstory ” says Eric Voegelin in his ~— Responsible Individualism. By jjtroduction to The World of the the same token, we are contributing pylis “because it has a dimension to the growth of its opposite num- ,¢ ¢pirit and freedom beyond mere ber —a government of unlimited ,pima) existence, because social powers, dominating, controlling, order isan attunement of man with directing, dictating, and restrict- the order of being . . . that has its ing the freedom of development of qi in world-transcendent divine those citizens who, under this Being.”* The pragmatists, many trend, may soon become “subjects.” gejentists, and intellectual liberals As Professor Wilhelm Roepke goride this as mysticism and de- stated in last summer’s issue of 1.4 something definite which can Modern Age: be tested in the laboratory so that The nidus of the malady from we may know where we are going. which our civilization suffers Ip reply we must ask: “Do you now lies in the individual soul and is only to be overcome within the individual soul. For more 4 Voegelin, Eric. The World of the than a century, we have made Polis. Baton Rouge: Louisiana State the hopeless effort, more and University Press, 1957. p. 2. Our crisis is spiritual, not eco- nomic. We have suffered a failure of nerve and are wandering, lost and bewildered, amidst a multitude of troubles and anxieties, “lacking wrong direction. ===== PAGE 45 ===== 1960 OUR TRAGIC STATE OF CONFUSION 43 know where you are going? Or their admiration of a particular why 7” Those who do not now know means. They fail to note what the what to hold by, nor where they Russian system does to the individ- want to go have deserted our “old ual; and under any system, it is system” for a hybrid system which what happens to the individual that has no unifying philosophy or de- is all important. I close with a sign for living. So long as we lack favorite quotation on this vital guiding principles and a coherent point from the Journal of Amiel, system, we will be in danger of the nineteenth-century Swiss phi- repeating the humiliating blunder losopher and teacher. Writing on of accepting the communist chal- June 17, 1852, Amiel said: lenge to ‘‘compete with” their system. The test of every religious, po- litical, or educational system, is . the man which it forms. If a But, What of the Individual? system injures the intelligence, Those who have thoughtlessly it is bad. If it injures the char- praised the superiority of the Rus- acter, it is vicious. If it injures . . the conscience, it is criminal. sian system of education, merely because it has been turning out We know that the system we are “trained” scientists and engineers fighting fails on every point in the in greater numbers than our sys- test. What shall we say about our tem, have lost sight of the goal in own? ~ For Peace Among Men WE MAY SWEEP the world clean of materialism. We may scrub the earth white of autocracy. We may carpet it with democracy, and drape it with the flags of republicanism. We may hang on the walls the thrilling pictures of freedom... we may spend ef- fort and energy to make the world a Paradise itself, where the lion of capitalism can lie with the proletariat lamb. But if we turn into that splendid room, mankind with the Same Old Heart, “deceitful and desperately wicked,” we may expect to clean house again not many days hence. What we need is a “peace confer- ence” with the Prince of Peace! ARTHUR BRISBANE ===== PAGE 46 ===== THE DECLINE of our export trade accompanied by a substantial in- crease in our imports over the past two years is certainly cause for concern. Two basic reasons for this trend are (1) American high-cost pro- . duction which makes American goods noncompetitive in many lines; (2) vigorous competition by European and Japanese plants fi- nanced largely by U.S. money which can often undersell Ameri- can products both here and abroad. The effects of this tough compe- tition have convinced many people that the solution is to raise our LAWRENCE FERTIG DO THE FACTS JUSTIFY A tariffs and prevent admission of foreign merchandise. It has also given ammunition to organized high-tariff advocates. The most PE curious result of all, however, has A been the effect upon those who pro- J An claim themselves liberals. Mr. Fertig is a columnist on economic affairs, New York World Telegram and Sun and other Scripps-Howard newspapers, in which this column first appeared, February 15, 1960. Illustration: A. Devaney, Inc., New York ===== PAGE 47 ===== 1960 A HIGHER TARIFF WALL? 45 A basic tenet of traditional lion of American-produced com- liberalism has always been the mercial products. If we curtail gradual elimination of economic this activity, what would happen barriers among nations, but an to the jobs and profits resulting AFL-CIO report recently an- from our producing for export? nounced that “powerful support After all, foreigners cannot buy developed for a resolution that American goods if they do not would reverse the AFL-CIO tradi- earn dollars by selling their mer- tional backing for the U.S. recip- chandise to us. Japan, for in- rocal trade policy and request stance, which competes keenly ‘tariffs to curb imports of goods with American producers in the produced in foreign sweat shops.” United States, was nevertheless Of course the phrase “sweat shops” the No. 3 buyer of American here is merely a semantic trick to goods last year. Even in a bad designate every nation in the year like 1959 our commercial ex- world where labor costs are lower. ports exceeded our merchandise Many self-styled liberals like the imports by about one billion dol- AFL-CIO have renounced the lars. basic liberal principle of freer in- Finally, it must be remembered, ternational trade. every dollar saved by an Ameri- Do the facts justify those who can consumer who buys an im- say this country will benefit if we ported product cheaper is a dollar build up a higher tariff wall to spent for some other necessity exclude foreign merchandise? We manufactured right here. One do not think so. They make the American manufacturer’s loss be- fundamental error of looking at comes another’s gain — but the only one side of the coin. But consumer and the nation get an there are two sides to it — exports advantage. Just how terrible is as well as imports. Advocates of this situation on balance, and why higher tariffs gloss over the em- should believers of freer trade ployment to American labor and get panicky? the profits to American industry derived from the production of Look at the Record goods in this country which are Let’s get specific and take U.S. exported to foreign purchasers. exports and imports on finished Although last year was not manufactures, since we hear so favorable for our foreign trade, much about our disadvantage in we nevertheless had commercial this type of trade. In the 12 exports of approximately $16 bil- months ended September, 1959, ===== PAGE 48 ===== 46 THE FREEMAN May our exports were $9.2 billion and In steel mill products we have a our imports $4.8 billion, so we similar situation. We import more had an excess of exports of $4.4 than we export. But our exports billion. Is this a cause for panic? are substantial. In every major classification we import some goods while our fac- STEEL MILL PRODUCTS tories make substantial exports. Exports $165 million For instance: Imports 291 million Net Imports 126 million MACHINE TOOLS Exports $156 million If we want to wipe out our im- Imports 30 million ports, we will have to wipe out our Net Exports 126 million exports which produce jobs and profits. This would not make much AGRICULTURAL EQUIPMENT sense. Our imports are profitable, Exports ~~ $141 million as Professor Gottfried Haberler Imports _112 million of Harvard recently pointed out. Net Exports 29 million “If factors of production are shifted from the inefficient indus- tries, which can be kept alive only by skyscraper duties, to efficient export industries, real national in- come per head, real wages and salaries will go up.” After all, ENGINES AND PARTS Exports $232 million Imports 5 million Net Exports 227 million CONSUMER GOODS (Excluding foods and textiles) that is the objective of economic Exports $890 million policy, to make real income go up. Imports 876 million Net Exports 14 million A case can be made out for in- creased protection where national defense is involved. We may be in dire need of products of cer- tain industries in the future, and we do not want to be left high and Now let's take a classification where we have a lot of trouble: textiles. Even here our export trade is substantial. The figures read: dry if a crisis occurs. But this TEXTILES does not mean that we must throw Exports $434 million a higher tariff wall around the Imports 591 million U.S. and thus lower the real in- Net Imports 157 million come of U.S. workers. Pe ===== PAGE 49 ===== A clergyman, who has served since 1945 as a missionary of the Orthodox Presbyterian Church in Eritrea, East Africa, takes excep- tion to certain views of some highly-placed spokesmen for organized religion. SPIRITUAL _ or SECULAR Socialism FRANCIS E. MAHAFFY ONE of the strange ironies of this of the Welfare State to the econ- generation is the fact that the omists.! His interest lies solely in Christian Church has lent its the Christian attitude toward this moral support to the advance of new conception of the work of the socialism. This is not to say that State. He concludes that the Wel- the majority of Christians are so- fare State is in accord with Chris- cialists, but by and large Chris- tian principles. It seems never to tians have supported either social- have entered his mind that if the ism or interventionist policies that Welfare State cannot provide the lead progressively toward social- welfare which it claims is its duty ism. to secure for the citizens, the One fact that must impress a Christian should oppose it as a reader of the works of modern visionary scheme. It does not oc- theologians and church leaders is cur to him that the economic prac- the almost universal lack of in- ticability of the scheme should be terest in or knowledge of some of of primary concern. the basic principles of economics. One cannot but be stunned by In fact, one gets the impression the complete lack of evidence of that they view economics as a knowledge of or concern for basic purely secular science whose find- economic facts in the writings of ings are thus suspect from the most of the outstanding theolo- start. They are not interested in gians of today. The attitude of the secular but in the spiritual. A these writers and of Christians gen- writer from England in discussing erally seems to be that since eco- the Welfare State leaves the prob- "Carson, H. M., The Christian and the lem of the financial practicability state. London: Tyndale Press. 47 ===== PAGE 50 ===== 48 THE FREEMAN May nomics deals with material things, Barth has always been one of the it cannot be the concern of a spiri- most ardent warriors against what tual organization, the Church. So he terms “bourgeois capitalism.” men of international repute con- To many the term capitalist con- tinue to write and exert a wide in- jures up the concepts: exploiter, fluence on Christendom in the field rugged individualist, tycoon, busi- of man’s social relations, ignoring ness magnate, monopoly — all of the science that deals specifically which bear a distinctly evil conno- with important aspects of that tation in their minds. Individual- relationship. ism is viewed as the very opposite Likewise, the very mention of of social concern and brotherhood the word capitalist or capitalism, and inimical to the Christian con- and especially of laissez-faire capi- cept of love. Profits are set in con- talism, immediately stirs up an ad- trast to service, the term big verse emotional response if not one business is equivalent to exploita- of outright hostility in the minds tion and injustice. Capitalism is of most Christians. Emil Brunner, concerned only with earning more who is classed as one of the bitter- money while the Christian’s con- est opponents of communism by cern lies in the higher spiritual many, equates capitalism with an realm. unrestrained, unlimited individ- Thus, while Christians may re- ualism that is destructive of jus- ject complete socialism as a system tice for the common man. Paul hostile to Christian ethics, almost Tillich speaks of class war as the as emphatically they reject capi- secret condition of all capitalist talism as crass materialism. The society and says that “free econ- apologetic attitude of many entre- omy tends necessarily toward in- preneurs toward profits lends mor- finite commercial imperialism.”? al support to this viewpoint. Reinhold Niebuhr, especially in his earlier years, looked upon cap- Wrong Problem, Wrong Answer italism as incompatible with the Capitalism, which is the fruit of necessities of a technical civiliza- sound economics, is deemed by tion and a system that brought many Christians as one of the about overproduction, unemploy- main contributing causes to the ment crises, and a breakdown in materialistic spirit of our age. the system of distribution. Karl With the increase in the standard "3 Tillich, Paul. The Religious Situation. of living and the search for more New York: Meridian Press, Inc. nd. material comforts has come a p. 72. breakdown in morals in the home, ===== PAGE 51 ===== 1960 SOCIALISM : SPIRITUAL OR SECULAR? 49 the Church, and in the State. The society. Most of them no doubt do greed, dishonesty, covetousness, this from the sincere conviction juvenile delinquency, growing di- that they are thus promoting the vorce rate, increased drunkenness, spiritual over against the secular. and crime are all attributed open- Few, certainly no Christian, would ly, or in the minds of many, to quarrel with their desire to im- the materialism inherent in capi- prove the general welfare of all, talism. With the increase in ma- or with their concern for improve- terial comforts effected by capital- ment in the general morality, in ism has come a concomitant de- respect for the authority of par- crease in adherence to moral stand- ents and for the law. Materialism, ards, and so a causal relationship when it is defined as placing the is assumed. love for material goods in place To be consistent, Christians who of love for God, is certainly con- come to this conclusion should ad- trary to Christian virtue. vocate a lowering of the standard We may well approve the sin- of living and poverty as the cure cerity of such persons and the for this ill. Very few, however, are noble ends they seek. However, no ready to draw this consistent con- matter how earnest they may be, clusion. Rather, they seek the solu- if the system they advocate is tion along Marxian lines. They are incapable of realizing their own hostile to the atheism of Marx noble ends, we must oppose their and to what they consider to be his principles on those grounds. It materialism. Yet they believe gov- can also readily be demonstrated ernment intervention toward equal- that the carrying out of these izing the wealth will help elimi- principles involves direct defiance nate selfishness, greed, and ma- of the revealed moral law of God. terialism. In their estimation the Christian religion requires self- Wealth as a Means less love and being our brother’s In the first place, such views keeper. This they feel is best ful- involve a false antithesis between filled by the Welfare State. the secular and the spiritual. For So it is that multitudes of sin- the Christian the material goods cere Christians who are deeply of this life should be viewed as concerned about the spiritual life gifts of God that are to be used to of the Church follow their out- his glory. In the Bible sin is never spoken leaders in openly advocat- inherent in matter but rather lies ing or at least not opposing a in the thoughts and deeds of men progressive socialization of our with its fountain in the evil heart. ===== PAGE 52 ===== 50 THE FREEMAN May God has placed us in the world he to the very principles of Chris- created, given us the intellects and tianity to which they hold. It is a strength to utilize the resources gross misunderstanding of the of the world for our good and for study of economics that classes it his glory. The Bible tells us, as a secular science dealing with “Whatsoever ye do, do all to the the material realm which is of no glory of God.” (I Corinthians concern to the Christian. Eco- 10:31) Certainly this involves nomics does not deal with the using material goods in obedience ultimate ends of man, his highest to the specific commands of God. religious or moral ideals. It deals It also involves using them in the rather with the means man chooses service of the kingdom of God and to attain his ends and seeks to for our Saviour, Jesus Christ. It show whether these means are fit also involves permeating our use to attain the ends aimed at or of the things God created with an not. attitude of devotion and worship Certainly most Christians agree to God. When secularism or ma- that a decrease in infant mortality, terialism is defined as the act of increase in the span of our life, a making an idol of things, honor- progressive upgrade in our stand- ing, loving, and serving them in- ard of living, elimination of stead of God rather than using poverty and misery are ends con- them for God’s glory, the Chris- sistent with Christian ideals and tian may well seek to prevent its toward the ultimate glory of God creeping into the Church. But in and our good as God’s creatures. Christianity there is no evil in- The question economics deals with herent in things nor is the pos- is whether free enterprise and a session of material goods sinful. government limited to the suppres- The sin of materialism lies rather sion of evil or whether state in- in making of goods an idol that is terference in the economy, worshiped and served in the place government control and ownership of God. in the means of production is the means best suited to the accom- The Role of Economics plishment of these ends. The thinking of these people The science of economics has is characterized by lack of eco- demonstrated clearly that social- nomic understanding. This omis- ism is a system unable to realize sion is a grave one, and one that ——— } on £ Hv ’ . . 3 See Ludwig von Mises’ Human Ac- of necessity involves them in seri- 4,4 New Haven: Yale University Press, ous inconsistencies and opposition 1949. ===== PAGE 53 ===== 1960 SOCIALISM : SPIRITUAL OR SECULAR? 51 the ends it claims as its own. The cause they have been demonstrated more consistently it is applied, the inadequate to achieve the ends at more the mass of men are impover- which they aim. ished. Complete world-wide social- ism must lead to chaos because In Defense of Laissez-Faire without the market economy eco- Christians often oppose capital- nomic calculation would be impos- ism because of a complete mis- sible. It has been demonstrated understanding of what capitalism that socialism must lead progres- is. Laissez-faire capitalism simply sively to loss of freedoms and to teaches that men ought to be free slavery.’ The Christian who is except to do evil. The work of the ignorant of economies should op- government is that of the police, pose socialism and government in- to restrain evil. Capitalism has tervention in the economy, except been characterized as a system of to restrain evil, because such in- irresponsible freedom, a harsh sys- tervention of necessity involves de- tem unconcerned for the welfare fiance of the moral law. It is the of mankind. On the contrary, it is use of coercion for a purpose other the system that alone can benefit than to restrain evil which is con- the mass of mankind best. It is trary to the law of God. It in- improper restraints on freedom volves a redistribution of the along with inadequate restraint of wealth, which is theft. It is based evil that lead to poverty and suf- on the sinful tendency of men to fering for all. covet that which is not theirs in Capitalism allows free play to opposition to the command, “Thou ideas which of necessity are the shalt not covet.” Thus on moral product of individual minds and grounds alone, socialism and inter- by means of which progress and ventionism should be rejected. In the well-being of all is best pro- this rational world created by God, moted. Capitalism advocates the wrong means must always result restraint of evil which is the in failure to achieve the ends de- greatest deterrent to the happi- sired. So, even those who reject ness and well-being of each. It is the finality of the moral law (to the system in accord with Chris- their own hurt) should reject so- tian ideals and ideas. It promotes cialism and interventionism be- the greatest equality of wealth that is consistent with Christian 5 See Friedrich Hayek's Road to Serf- morals and progress. It recognizes dom. Chicago: University of Chicago the truth of Ricardo’s law of as- Press, 1944, sociation which shows that peace- 4 Ibid., chapter 26. ===== PAGE 54 ===== 52 THE FREEMAN May ful noncoercive cooperation results ianism, deprived of its atheism, is in the greatest benefit to the weak viewed as compatible with Chris- and to the strong — with the weak tian ideals. This shows complete benefiting even more than the unawareness of the fact that the strong. The efficient use of our system has been demonstrated as various abilities in the division of utterly unfit to attain its ends and labor in capitalistic production is the welfare of the proletariat, that the factor that utilizes cooperation it is wholly at variance with - to the fullest in mass production Christian morals, and is a system for the masses and results in that demands as one of its precepts cheaper prices for the so-called almost complete loss of freedom common man. and a strong dictatorship. Only - Capitalism is the system that ignorance of Christianity and of alone allows freedom of thought, Marx could lead a Christian to of criticism, and of religion. Under laud his system as ideal. no other system can the Christian Co Church be free to propagate its Worship of the State ideas. Only under capitalism can Christians may well bemoan the the Christian freely teach the increased lawlessness, disrespect Christian message of the sover- for the State, parents, and for law, eignty and love of God, of salva- in our generation. H. M. Carson tion by God’s grace through faith says, “One strange result of the in Christ, and of the necessity of growing concern by the state for love for God and of obedience to the welfare of its members has his law as the means to the great- been a growing lack of respect est happiness in this life and the for the state.”¢ Christians have next. It is a fateful irony that has turned to the State to secure their led the Church to support a system well-being. They want the power- inimical to its own interests. ful State to subsidize the less pros- Christians idolize Karl Marx and perous workers, to pay their socialism because of a complete medical bills, to support them in misapprehension. The materialism old age, to protect weak industries, of Marx is not materialism in the to educate their children, in fact sense used by Christians. It is to provide for their welfare from rather the completely untenable the cradle to the grave. The law view that it is the material pro- has been perverted from its pur- ductive forces that determine so- pose of restraining evil to the work ciety’s structure and man’s —m —— religious and other views. Marx- 8 Carson, H. M. op. cit., p. 32. ===== PAGE 55 ===== 1960 SOCIALISM : SPIRITUAL OR SECULAR? 53 of redistributing the income to creased government intervention satisfy special groups of voters. It but rather in a return to the prin- soon becomes evident that the ciples of laissez-faire capitalism State cannot pay Paul without rob- and of Christianity. It lies in ad- bing Peter, and the Peters -and herence to the moral law by in- Pauls both lose respect for the law dividuals and by the State. It lies that, instead of restraining evil, in government, not of special perpetrates it. privilege, but by law. It involves This lack of respect for the government by law that secures State, which cannot replace the equal justice for all and special security of individual initiative privilege for none. Law that does and savings, is the natural fruit not grant special privileges to of the principles of the Welfare labor or to business. Law that State. Law that perverts the jus- treats the rich the same as the tice which is its province to main- poor, the black the same as the tain will not long retain the white, the Christian the same as respect of its victims or of its the non-Christian. Law that metes beneficiaries. This disrespect for out justice firmly and equally. law will carry over into the home, When men are free to promote and children, whose parents have and practice their ideas unre- lost respect for the laws of the strained except when they inter- State, will likewise lose respect for fere with the same rights of the divinely constituted authority others, and when government is of the parents. The very system restricted to the work of restrain- that defies God's law in order to ing evil, then and only then may equalize the wealth must breed a we expect the trend toward social- spirit of lawlessness and material- ism, war, and poverty to reverse ism. With the law favoring one itself. When the Christian Church group at the expense of another, and Christians learn that God’s each will seek to be on the re- law requires freedom except to do ceiving end of the government’s evil to others, and when they see beneficence. This, and not capital- that Christian ideals and the wel- ism, is what breeds the spirit of fare of all are best served by the materialism and lawlessness. principles of laissez-faire capital- ism rightly understood, greater re- Less Intervention—Not More spect for the message of the The solution to the problems of Church regarding salvation and our society does not lie in in- the future life will be generated. ~> ===== PAGE 56 ===== N 1]. ng 8k = THE RESULT IS SLAVERY HowARD E. KERSHNER THE PEOPLE who live in the regions Suppose the commuters would round about New York, and other go to their noncommuter friends, cities, are in great distress because and to others in the cities and commuter railroad fares are being throughout the state, and say to raised sharply — to $50 and $60 a them frankly, “I cannot afford to month and even more. I heard a go to and from my work because minister say, last night, that gov- the fare is too high. Will you con- ernment must step in and do some- tribute to the cost of my transpor- thing about it. There is general tation?” How many would do it? agreement with his statement. Would you? If not, why do you What can government do to solve think government should force you this problem? It can tax noncom- to do that which you do not wish muters and give the proceeds to to do? the commuters. It can reach out to You have no more returned the farthest corners of the state from canvassing the public to ob- and take money from people who tain help with your transportation never use suburban railroad serv- problem than a neighboring ice and give that money to those farmer comes in and says he can- who do. It can go into slums of pot afford to continue farming, New York and tax people who have ynless you and others will pay him never been on a train, to make life more for his produce than he can easier for those who live in the ghtain in the open market. You suburbs and use the trains daily. refuse to help, and he successfully Dr. Kershner is resident of the Christian invokes the power of government weekly column, “It’s Up to You,” February 185, to rob you in order to pay him. 1960. . . Illustration: A. Devaney, Inc.,, New York After the visit from the farmer, 54 ===== PAGE 57 ===== 1960 THE RESULT IS SLAVERY 55 a delegation calls to tell you they not content ourselves with request- cannot afford the proper kind of ing help but systematically rob housing. Some of them want you one another by the exercise of the to pay part of their rent and police power of government. How others want you to pay part of the foolish we are to think we can cost of building a house for them. have more by paying each other’s You refuse, and they successfully expenses. Doing it through the invoke the power of government to machinery of government is very compel you to pay part of the rent wasteful and in the end we all for those who prefer to rent and have less. part of the building cost for those Coming back to the problem of who want to own their own homes. the commuter, the problem exists Next, a group of publishers call in the first place because of gov- who say they cannot afford to send ernment intervention. Govern- their publications through the ment-regulated rates have long United States mails without some been too low to cover costs. Taxes help from you. You refuse their in many cases are above the total request, and they successfully in- railway receipts in certain areas. voke the power of government to Disastrous “featherbedding” has compel you to pay a part of the been made possible by government- cost of their operation. granted privilege to railway Your next visitors are a group workers. One government inter- of labor leaders who say their vention has followed another until members do not wish to work 40 now disaster is upon us. As always, hours a week but ask you to con- more of the disease is proposed as tribute so they may be paid for a cure. Socialism seems unable to the time they are not working. stop short of complete control of You refuse indignantly, and they the economic activities of the successfully invoke the power of people; but that means slavery. Do government to compel you to con- the American people want it? Any tribute to a full day’s pay for government intervention makes many of them who work possibly matters worse and calls more a few hours, a few minutes, or not loudly for further intervention. at all. There is no stopping place. We If we confined ourselves to ask- must either deprive government ing others to help us in all these of the right of all intervention in matters, we would be a nation of the economic activities of the beggars. Actually, we have become people or go on to full control a nation of thieves because we do which amounts to slavery. pe ===== PAGE 58 ===== JAMES C. PATRICK NWA Better Way to Help Farmers od we EDITOR'S NOTE: Mr. Patrick, Manager of the New Albany (Indiana) Chamber of Commerce, is enrolled in a course in Economics at the Southeastern Center of Indiana University at Jeffersonville. The following article is his answer to a question asigned by the instructor from the textbook used in the class. . TEXTBOOK: Economics — An Introduction to Analysis and Policy, George Leland Bach, Professor and Head, Department of Economics, Carnegie Institute of Technology; Prentice-Hall, Inc., Englewood Cliffs, New Jersey, 1957 QUESTION 3, p. 488: If the demand for basic farm prod- ucts is in fact substantially inelastic, is there any way the government can help farmers except through output-re- striction programs? THIS QUESTION is only partly, and ing, or refuse to pay the portion not even primarily, a question in of his federal taxes going for de- economics. To answer it adequately fense purposes as a Cincinnati it is first necessary to define what clergyman did not long ago, or government is and what its proper violate acreage limitations on a functions are. In order to find out crop as a Hoosier farmer did, with what government really is, a per- the result that his tractor was son has merely to run a red light seized and sold just a few days while a traffic policeman is watch- ago. It quickly becomes apparent, 56 ===== PAGE 59 ===== 1960 A BETTER WAY TO HELP FARMERS 57 when tested in some such manner others to do “what is best for as these, that government basi- them” in our opinion. cally is force — the organized force The Constitution of the United of society. States reflected the thinking of The real question then be- men who had studied closely and comes: what is the proper use of thought deeply about the nature of force? It is certainly inherent in man, the sources of power or the fact that the Creator —call force, and the proper functions of him by whatever name we will: government, because they had God or First Cause or some other lived close to much misuse and term — in giving man life, gave abuse of government power. The him the right to preserve and de- document was influenced by the fend his life, and hence, to defend thought of men such as John those possessions he has which Locke, Thomas Paine, and Thomas sustain his life. So man possesses Jefferson. the right to defend his life and Among its framers were men property, using force in their de- who had personally witnessed how fense, if need be. power corrupts and absolute As populations have grown and power corrupts absolutely, so it relations among people have be- spells out the limited powers of come more complex, men have the federal government and makes pooled a major portion of their it clear that the residual powers right to use force in organizations lie with the people primarily and which we call governments and with the states. have turned over to these organi- The proper use of the force of zations much of the responsibility government might be defined as to for defending life and property. defend the life and property of all citizens equally, to protect all will- Improper Use of Force ing exchange and restrain all un- It may well be “more blessed to willing exchange, to suppress and give than to receive,” but the right penalize all fraud, all misrepre- to use force to defend our life and sentation, all violence, and all the things that sustain our life predatory practice, to maintain a certainly does not imply the right common justice under law, and to to force others to give also, keep the records necessary to these through taxation, to support the functions. This is a bigger assign- needy, be they farmers or not, nor ment than governments generally does it imply the right to impose have been able to perform ade- our will upon others nor to compel quately. Let government do these ===== PAGE 60 ===== 58 THE FREEMAN May things and do them well and leave culture, business, labor, or what other activities to the willing, cre- have you. The fact that govern- ative efforts of free men. mental powers have been misused On February 16, 1887, Presi- in the past does not make it right dent Grover Cleveland vetoed to misuse them now. House Bill No. 10203 which pro- posed to enable the Commissioner I cannot escape the conclusion of Agriculture to extend aid to that the way for the government drought-stricken farmers in to help farmers is for it to get out Texas. His veto was based on the of the business of passing special lack of any authority in the Con- legislation for them or for busi- stitution for such aid and upon ness or for labor and let these the fact that the service or bene- groups seek solutions to their fit of the general public was not problems by their own initiative, involved. The Constitution con- expressed individually or through tains no provision for legislation their associations, acting volun- to assist any special group —agri- tarily. ~ A Futile Life LIFE 1S INFINITELY less important than freedom. A free "man has a value to himself and perhaps to his time; a ward of the state is useless to himself — useful only as so many foot-pounds of energy serving those who manage to set themselves above him. A people which has lost its freedom might better be dead, for it has no importance in the scheme of things except as an evil power behind a dictator. In our hearts we all despise the man who wishes the state to take care of him, who would not rather live meagerly as he pleases than suffer a fat and regimented existence. Those who are not willing to sacrifice their lives for their liberty have never been worth saving. MAXWELL ANDERSON, The Guaranteed Life ===== PAGE 61 ===== A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN i The Constitution of Liberty IT 1s as an “Old Whig,” not as a Whig with the names of Henry New Conservative, that Friedrich Clay and Daniel Webster, who A. Hayek addresses his public in supported the “American System” his monumental essay on the na- of using the tariff to pay for “in- ture and principles of a free so- ternal improvements’ that did not ciety, The Constitution of Liberty necessarily benefit the various (University of Chicago Press, 570 citizens or sections of the nation pp., $7.50). equally, should be careful to make By ‘old Whiggery,” Hayek no mistake about what Hayek be- means to imply the philosophy lieves. He is not a tariff man, nor that animated Edmund Burke, does he advocate arbitrary rejig- Lord Acton, Tocqueville, and gering of personal incomes by way Macaulay, all of whom believed of the selective subsidies that that true freedom consisted of a seem inseparable from federal constitutional dispensation that sponsorship of “internal improve- guaranteed to every man his legal ments.” “independence of the arbitrary So much for clearing the nature will of another.” Since the word of Hayek’s self-chosen party label. “liberal” has been conscripted by Inasmuch as the book is about Fabian socialists and many shades principles and their application, of interventionists to describe the question of ‘“what-should-the- their own brands of Statism, and true-liberal-call-himself” is not too since the word “conservative” important. What is important is might indicate a willingness to that Hayek, an Austrian, has use the powers of the State to thought longer and harder about protect certain favored groups the heritage bequeathed to Ameri- against change, Hayek’s label for cans by James Madison than al- himself will probably do as well most any modern native-born as any. (He rejects the word American you could name. This in “libertarian” as a clumsy fabrica- itself does not bode well for our tion.) But Americans who have freedom. Americans, taking James learned to associate the word Madison and the U.S. Constitution 59 ===== PAGE 62 ===== 60 THE FREEMAN May for granted, have let slippery for bad law — and one cannot be semanticists redefine the original certain that his long and some-- Madisonian constructions to mean times tortuous attempts to explore their opposites. For example, the the twilight zones where the prac- Madisonian phrase, “general wel- tise of freedom is difficult will fare,” no longer implies benefits help his readers to be clear about that accrue to everybody; in the basic principle. The reader’s modern context it means particu- troubles multiply particularly in lar exemptions from the rules that the section of the book devoted to govern the generality. Lazy and “Freedom in the Welfare State.” slack about their verbalisms, Take Hayek's chapter on social Americans no longer know what security, for instance. Hayek is Madison meant — or even said. obviously in favor of a “poor law” Hayek, on the other hand, has that will enable government to been compelled by the exigencies provide for “the extremes of old of a European life to think hard age, unemployment, sickness, etc.” about meanings. As an Austrian People, says Hayek, just can’t be he grew up in the shadow of the left in “need,” and local charities neighboring Bismarckian Social must at least be supplemented by Service State of Prussia, and he national attention. “The necessity has seen at firsthand how the of some such arrangement in an seemingly innocuous doctrines of industrial society,” says Hayek, “is “socialists of the chair” can lead unquestioned — be it only in the to concentration camps and war. interest of those who require pro- The moral would seem to be that tection against acts of desperation liberty must be periodically lost on the part of the needy.” in order to wake up its defenders; The trouble with this is that it is not safe in the hands of “need” in the modern State has those who have never known its come to include just about every- absence. thing from television sets to vaca- i" . tions in whatever is the closest The Twilight Zones of Liberty equivalent to Florida. The claims If sheer thinking could change for large federal supplements to this, would Americans be saved in local charity thus become irresist- the future because of Hayek’s ible. book? In general, I think they As a practical matter of going would. But Hayek seems to be ir- from the ‘here” of our present resistibly drawn to a considera- “unitary” social security system tion of the hard cases that make to the “there” of universal volun- ===== PAGE 63 ===== 1960 THE CONSTITUTION OF LIBERTY 61 tary insurance on a decentralized lects his property, it must have basis, Hayek’s proposal that “co- ‘neighborhood effects’ that in- ercion” be maintained to “require evitably drag down the values of everybody to make provisions of a the surrounding real estate. Re- kind which only some had made garded in this light, zoning and before” may constitute good “in- even compulsory slum clearance terim” common sense. The trick can be thought of as bulwarks of would be to compel everybody to the value of private property, even prove — via a declaration on the though they may infringe the income tax statement — that he or principle of private ownership it- she is insured somewhere, with self. Hayek tries to introduce the exemption from compulsory gov- concept of the municipality as a ernment insurance being granted sort of “superior owner,” with to those who choose to take out ‘superior rights” to determine the policies with private companies. ‘character of a large district to But to keep our minds clear on be developed.” Again, his approach the subject, such a proposal should may be commended as a “practical be labeled as a faute de mieux in- politics” that is preferable to out- fringement of principle, not as right government seizure of the something that is in consonance urban landscape. But his attempt with principle itself. Hayek tries to make such things as compul- to argue that free men have the sory control of “neighborhood ef- need to employ the coercion of fects” a more or less integral part compulsory insurance to “protect of the “constitution of liberty” is themselves against the conse- not conducive to clarity in think- quences of the extreme misery of ing. It would have been better if their fellows.” Well, it may be Hayek had let expediency remain practical politics and even good labeled as such, leaving the basic business to force people to pro- principle to stand unencumbered. vide for their retirement. But it Once one has accepted the moral is only by doing violence to the desirability of free land use,.one language that it can be described can then move on to the esthetic as part of the “constitution of need for positive voluntary substi- liberty” itself. tutes for the compulsory zoning principle. There is, for example, Urban Renewal and Zoning Mr. Spencer Heath's suggestion When he tackles the subject of that small property holders pool town planning, Hayek is disturbed their titles in order to get the by the fact that if one man neg- benefits of planned “neighbor- ===== PAGE 64 ===== 62 THE FREEMAN May hood control” without charging laboring man’s freedom when he the costs to society. This proposal is taxed — and progressively taxed, is something that Dr. Hayek might at that — to provide a subsidy for have elaborated on with profit to a farmer who may live on the his own general theory of free- other side of the continent. But dom. what if a government, by demo- As to the general proposition cratic majority decision, were to of freedom, Hayek wisely observes vote a proportional capital levy on that it requires a basic frame- everybody, rich and poor alike, to work of law. And the protections pay for some hypothetically incon- offered by the law must be the testable general benefit. In such a same for all men. The free society case nobody would be compelled to must be prepared to accept the obey the “arbitrary” will of an- fact that unequal results will flow other; all would have been done from treating unequals equally legally, and everybody in society under the law. This may offend would remain in his same relative humanitarians. But if it does, place. Nevertheless, 49 per cent of there is nothing to prevent them the population might feel ag- from raising funds voluntarily to grieved — and very much unfree. make things easier for the people It may be stretching things too who have had less talent, less far to suggest that a society money, or less luck than their fel- would ever vote to oppress all its lows. members equally: where taxes are When it comes to taxation, the proportional, for example, there principle of equality under the will be a general interest in so- law must rule out the progressive ciety to keep them at a point ° income tax. In championing the where they will not bear down too proportional income. tax, Hayek inexorably on anybody. Moreover, would make exceptions for the under Hayek’s “constitution of lowest brackets on the ground liberty” there would be all the that they are already paying a familiar checks on precipitate ac- bigger proportion of their income tion. In a good Rechistaal the or- to the government in the form of dinary courts would settle dis- hidden taxes. putes arising from administrative Whether the equal application acts, an upper legislative chamber of the rule of law can guarantee would prevent too hasty legisla- a free society might in itself be tion by a lower, a Ninth Amend- an arguable point. It is obviously ment (or its equivalent) would a palpable infringement of a city forestall the usurpation of individ- ===== PAGE 65 ===== 1960 THE CONSTITUTION OF LIBERTY 63 ual or states’ rights by central To steal from Winston Churchill, government, and the executive never was so much scholarship himself would be bound by laws made so easily available to so — and also by limiting the funds many in so small a space. at his disposal. » THE IDEA OF A COLLEGE Hayek is enough of a believer B in human nature to feel that peo- on sao) | eblood (Harper. 207 ple will behave under civil liberty ' i if they aren’t tempted by the doc- Reviewed by Edwin McDowell trines of socialism into doing THE COLLEGE exists, writes Dr. things that involve treating in- Trueblood, erudite professor of dividual wealth and talent as if it philosophy at Indiana’s Erlham were a pool belonging to the na- College, for the sake of producing tion. He feels that socialism itself significant changes in the lives of has been discredited by recent ex- those who enter the community periences in Europe. As for State voluntarily in the hope of personal Welfarism, Hayek is less sanguine improvement. Its purpose is to re- that people will learn to distin- move students from the partial guish between the provision of worlds which are the product of common amenities and the use of their own misguided imaginations government to insure that particu- and distorted viewpoints, in order lar people get particular things. to introduce them to the “only We could, he thinks, still slip into world that is or ever will be.” socialism and serfdom via an at- Of the major types of academic tempt to legislate a “more just establishments in America, the distribution of goods.” liberal arts college provides the To an American — and very characteristic and central pattern probably to an English — reader, of higher education. Although pri- The Constitution of Liberty will vate in the sense that it receives be doubly valuable because Hayek, no money from government, the a continental European, has drawn college is in fact a “public” insti- widely from non-Anglo-Saxon ex- tution, the author maintains, in perience to illustrate his points. that it serves the entire nation in- The 113 pages of notes bearing on stead of existing for the profit the text are almost incredibly of its owners; and, until recently, rich; they are conveniently set up despite the existence of tax sup- in the rear of the book with direc- ported institutions, it has served tions laid out so that one may get the majority of American stu- the proper reference at a glance. dents. Professor Trueblood points ===== PAGE 66 ===== 64 THE FREEMAN May with pride to a study by two Wes- “The Christian psychologist will leyan University professors which learn from Freud; but he will also revealed that of the 50 institutions learn from Augustine, and his which have, per capita, contribu- study of the Bishop of Hippo will ted the most toward science, 39 of enable him to see some of the self- them were those with independent contradictions which are to be boards and support, usually com- found in the work of the doctor of paratively small, and with a Chris- Vienna.” tian emphasis. Although the need for the pres- It is the author’s concern with ervation of Christian principles in Christian ideals which dominates the colleges is the theme of Pro- much of the book. He traces the fessor Trueblood’s message, he combination of the love of God pens many other words of wisdom and the love of learning to our which college officials would do early colonialists, explaining how well to heed. Together with warn- most of the great early colleges — ing against emulating the Russian even a number of state universi- educational system, he also re- ties — were built on Christian prin- minds us it is not necessary for ciples. “No scholar . . . can hope viewpoints to be represented in to understand American culture,” order for them to be presented. he says, “if he does not study care- ‘Because a good Christian scholar fully the immense impact of the can present dialectical materialism Christian college upon the total with real fairness, at the same American life.” time expressing his own criticism, This Christian emphasis, which it is not necessary to employ an Professor Trueblood sadly admits avowed communist on the faculty.” is disappearing from many -col- “Colleges are bound to have an leges, is rarely devoted either to effect upon the outcome of current religious studies or to denomina- history,” Professor Trueblood tional instruction of its members. warns. “If we succeed in destroy- Instead, it is devoted to emphasiz- ing the race, that will be partly ing the reality of human freedom ‘because of what has been devel- and the responsibility which is oped in colleges; and if we come meaningless apart from this free- out into a brighter day, that, too, dom; further, it spurs the Chris- in part, will be because of what tian scholar to search always for college men and women have the truth because it is God’s truth thought. Ivory towers are among that he is trying to discover. (For the most productive of human example, writes Dr. Trueblood, structures.” -> ===== PAGE 67 ===== 76.500 Students of bendy" * This best describes the readers of The Free- man — of whom 45,000 are in the United States, 1,500 in other lands. No other description applies for they are teachers, wage earners, clergymen, captains of industry and finance, farmers, housewives, pro- fessional people. They are of varied creeds, races, and colors and range from the very poor to the very wealthy. Their common interest is as students of liberty! A few of The Freeman pages are available each month for advertising messages to this select readership. Inquiries are invited. THE FOUNDATION FOR ECONOMIC EDUCATION, INC. IRVINGTON-ON-HUDSON, NEW YORK ap ===== PAGE 68 ===== 3