===== PAGE 1 ===== THE [eelld DECEMBER 1961 Having Our Cake and Eating It, Too The Freedom To Choose What Freedom Means . A Basic Proposition of Conservatism . Inflation Strikes Home . Saving, Foreign Aid, and Growth . Alliance for Progress — or Socialism? Legal Federal Embezzlement . Danger: ‘Mindtraps’’ Ahead . Look Behind the ‘Front’ Words . Books: Prosperity Through Freedom . Annual Index . yi E IDEAS ON LIBERTY Clarence B. Carson 3 Fred DeArmond 12 Dean Russell 18 Daniel K. Stewart 22 H. P. B. Jenkins 25 William R. Allen 26 Edwin McDowell 33 Howard Buffett 38 W. E. Sprague 40 Melvin D. Barger 50 John Chamberlain 55 59 THE FOUNDATION FOR ECONOMIC EDUCATION, INC. Irvington-on-Hudson, New York ===== PAGE 2 ===== [TT —_— m—— —r—— 2 rms on OUTSTANDING ADVANTAGES FOR SAVERS COAST FEDERAL SAVINGS i OF LOS ANGELES JOIN the more than 100,000 savers who hold individual, joint, trust, or corporation savings accounts at Coast Federal and get these important advantages: UNMATCHED SAFETY —Assets over $450 million—third largest association in the U.S. Strong reserves and high ratio of cash and Po government bonds to assure withdrawal of savings immediately Lo] on request._ » HIGHEST EARNINGS consistent with safety. Current rate 42% | per annum. Accounts opened by the 10th of the month earn from the first. : SAVE-BY-MAIL CONVENIENCE — Airmail postage paid both ways. Prompt, efficient service on all transactions. INSURANCE —Each account insured up to oe $10,000 by the Federal Savings and Loan | Insurance Corporation. TL ® FREE — Beautiful, full color Guidebook _ oe 1 iH to Greater Los Angeles. Ten "CORST FEDERAL SAVINGS JOE CRAIL, PRESIDENT Coast Federal Savings, Department “'H"’ 855 South Hill St. at 9th Los Angeles 14, Calif. (Please check-mark as desired.) 1. O 1 enclose [] check, [I money order, to open a 2. (J Please send information savings account in the following name or names: and L. A. Guidebook to: Name Address City Zone State ===== PAGE 3 ===== INTERCONNECTING AND POOLING: A SUPERIOR KIND OF ELECTRIC SERVICE ON A NATIONWIDE SCALE Here is the kind of advanced electric service that America enjoys today from the investor-owned electric light and power companies — 280,000 miles of transmission lines, plus bil- lions of dollars in power plants — hydroelectric, steam and even atomic power—with many plants and lines tied together in giant networks, so that power can be sent where and when it’s needed throughout the nation. This is a bigger and more resourceful power system than any other in the world, and it has immediate advantages for every user of electricity. It can help keep rates low. In many places . R customers of one investor-owned company bene- Pooling works—the Pennsylvania- fit from the savings of the newest, most efficient New Jersey-Maryland pool. It plants of interconnected companies. Single large serves large cities, small towns, generating units can be built more economically suburbs and many kinds of farms than scattered smaller units. ; i ; —a population of 18,400,000. Service becomes still more dependable. Homes Power is sent back and forth and businesses have the advantages of big re- r 49,000-square-mile example of the way Interconnecting and serves of power from many areas. If an emer- 25 needed over interconnected gency shuts down a plant in one area, power is lines of investor-owned -com- instantly brought in from others — perhaps hun- panies. This always insures dreds of miles away. Interconnecting and Pooling of power helps emergency, without the needless the investor-owned companies supply the bulk ex f building duplicat of America’s electricity today. It is a big reason pense of building duplicate why they can supply all the additional electric facilities. The pool has been power the nation will need for the new homes, serving customers, and growing, new jobs and new businesses of the future. for nearly 40 years. Investor-Owned Electric Light and Power Companies . Company names on request through this magazine P | Age Amarin Bumifit ample reserve for any need or ===== PAGE 4 ===== THE Xe Feu ond fl [4 ( Il 1d] a maT 5 JOURNAL oF bk LIER “ “, pe Tes, AA is > DECEMBER 1961 Vol. 11 No. 12 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. Copyright, 1961, The Foundation for Economic Education, Inc. Printed in U.S.A. Additional copies, postpaid, to one address: Single 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 ‘‘Having Our Cake and Eating It, Too.” . Fok Any current article will be supplied in reprint form if there are enough inquiries to justify the cost of the printing. ===== PAGE 5 ===== and ating It, Too... A critique of the report by the Presidents’ Commission on National Goals. CLARENCE B. CARSON NATIONAL PLANNERS have a pen- clothbound and paperback editions chant for relieving us of the diffi- as Goals for Americans, (My ref- cult task of making hard choices. erences will be to the paperback Indeed, they make it appear fre- edition published by Prentice- quently that there is no need for Hall as A Spectrum Book.) The such choices. We shall be able to Report has two parts: a statement have all that we want without giv- by the whole Commission which ing up anything significant. We purports to represent their collec- can have social security without tive judgments, and chapters by losing individual liberty, govern- individual authors, some commis- ment aid without government con- sion members and some not. The trol, receive help from groups to Commission, chaired by Dr. Henry provide the intimate necessities M. Wriston, had eleven members of life and retain our independ- ranging from former college presi- ence. dents to a labor leader. The under- This penchant is clearly and taking was administered by The amply demonstrated in The Re- American Assembly, Columbia port of the President's (Eisen- University, hower) Commission on National One of the most interesting and Goals. It is available to us in both confusing aspects of the Report is Dr Caren is Associate Professor. of History its many professions of devotion at Jacksonville State College in Alabama, to the individual, his freedom, ful- 3 ===== PAGE 6 ===== 4 THE FREEMAN December fillment, and protection. This is One man’s freedom should involve made remarkable, of course, by the no trespass upon others’ rights to fact that virtually every concrete life, liberty, and the pursuit of hap- proposal is for some kind of col- Piness. (p. 50.) lectivistic action. This is a con- The acid test of successful demo- stant theme in the work, both in cratic government is the degree of the Report of the Commission and effective liberty It meles available . ogee to the individual. (p. 48.) in many of the individual chapters. I want, then, to examine this ap- Mr. Clinton Rossiter, in the parent contradiction and try to de- selection called “The Democratic termine whether they have re- Process,” declares: solved it or not. The Report contains numerous references to the primary impor- tance of the individual. To wit: The price of liberty, today as through all history, is self-reliance and self-discipline. (p. 76.) Dr. John W. Gardner, “National The status of the individual must i i intai e status o e individual mus Goals in Education,” maintains: remain our primary concern. All our institutions — political, social, and Our deepest convictions impel us economic —must further enhance the {, fi cter individual fulfillment. We dignity of the citizen, promote the (.i} each one to achieve the prom- maximum development of his capa- ise that is'in him. (p. 81.) bilities, stimulate their responsible exercise, and widen the range and Dr. Warren Weaver, “A Great effectiveness of opportunities for in- Age for Science,” asserts his be- dividual choice. (p. 3.) lief in “the transcendant impor- Respect for the individual means tance of the imaginative individ- respect for every individual. (p. 4.) 441 worker, free to think about The degree of effective liberty any scientific problem that arouses available to its people should be the 1g curiosity and attracts his ultimate test for any nation. (p. 4.) mind.” (p. 106.) There are kind Individuals should have maximum (45 in the report for free enter- freedom in their choice of jobs, prise, individual initiative, and in- goods, and services. (p. 9.) dividual responsibility. The authors of the individual If we knew no more than this chapters are just as profuse in about the book on Goals for Amer- their concern for the individual. icans, we might conclude that it is Here are a few excerpts: a new declaration of independence Dr. Henry M. Wriston, in the cast in the mold of romantic in- chapter on “The Individual,” says: dividualism. There is little, if any, ===== PAGE 7 ===== 1961 HAVING OUR CAKE AND EATING IT, TOO 5 in what I have quoted to which uct must be devoted to educational Benjamin Franklin, Thomas Jef- purposes. (p. 6.) ferson, George Mason, Richard The economy should grow at the Henry Lee, or Ralph Waldo Emer- maximum rate consistent with pri- son might have objected. One mary dependence upon free enter- might expect that the concrete Prise and the avoidance of marked proposals of the Commission would inflation. Increased investment in be along the lines of the reduction the public sector is compatible with . . this goal. (p. 10.) of governmental operations, limi- tations of the powers of regula- Government programs of help for tory commissions, curtailment of farmers, including price supports the taxing powers of government and other means to prevent collapse . or oye ' of incomes, will continue to be nec- restoration of the responsibility of . - essary for some time; they must be parents for their children, and an managed that they cushion the increase of privately initiated, fi- shock of the transition, without un- nanced, and managed activities. duly slowing the pace of necessary Such expectations would be badly fundamental adjustments. (p. 13.) disappointed. We must remedy slum conditions, reverse the process of decay in the large cities, and relieve the neces- By what means does the Report sity for low-income and minority seek to implement its professed groups to concentrate there. concern for individual liberty, free =~ We should also seek solutions for enterprise, the fulfillment of the haphazard suburban growth, and individual and the like? The Com- provide an equitable sharing of the missio recommends increased cost of public services between cen- n . tral cities and suburbs. (p. 13.) government spending, government manipulation of thought, mainte- Federal grants for the construc- nance of regulation, and, in gen- tion of hospitals should be con- eral, extensions of the collective tinted and extended to other medi- effort. Some excerpts from the cal facilities. Increased private, state, Ah A and federal support is necessary for Report of the Commission will in- training doctors. (p. 14.) dicate this: In addition, there should be estab- One role of government is to )ijshed a federal reinsurance pro- stimulate changes of attitude. (p. 4.) gram for states with temporary Greater resources — private, cor- acute employment problems. Public porate, municipal, state, and federal and private arrangements for main- — must be mobilized. A higher pro- taining income during sickness portion of the gross national prod- should be improved. (p. 15.) Intervention Recommended ===== PAGE 8 ===== 6 THE FREEMAN December Lip Service to Liberty Commission must have had in The character of the report be- mind the example of the Defense gins to manifest itself. It pays lip Department, unified but separate, service to such traditional Ameri- co-ordinated but each service act- can ideals as freedom for the in- ing in its own way! dividual, individual fulfillment, Or consider this example of pro- free enterprise, and individual re- posals to go in both directions at sponsibility. It makes concrete pro- once. At one point, the Report of posals, however, for collective re- the Commission advocates the en- sponsibility, government stimula- largement of “local discretion, as tion and planning for the econ- for example in the handling of omy, urban renewal with the aid matching federal grants....” (p.6.) of the national purse, and national Elsewhere they say, “The federal more often than individual fulfill- government should enforce the ment. principle that federal funds shall The reconciliation of opposites not be disbursed to employers who is possible by the manipulation of discriminate on the basis of race. words, so long as the words are Similar policies should progres- vague and undefined. The Commis- sively be applied to federal grants sion demonstrated this principle for universities, hospitals, and adeptly. For example: airports, and to federal housing The federal government supports programs.” (p. 4.) To state it more than half of the research and abstractly, the Commission favors development in the United States. It enlarging local discretion by in- is of urgent importance that the ad- creasing federal intervention. ministration of its scientific and It is no wonder that men who rea- technical programs bz strengthened, gon thusly can believe that indi- but without resort to bureaucratic vidual liberty can be promoted by overcentralization and planning. (p. o4vernmental intervention, or that ’ collective responsibility can be as- Is this to be an unplanned sumed for the well-being of each strengthening of the administra- of us without any loss of individ- tion of the programs? When does ual initiative. The confusion of bureaucratic centralization become these men is more apparent than “bureaucratic overcentralization”? real, however. Without question- It appears to me that the Commis- ing motives, I would suggest that sion is saying something like this: these men are not informed by the “Tighten the nut on the bolt, but ideas of individualism, whatever leave it as loose as it now is.” The the appearance to the contrary. ===== PAGE 9 ===== 1961 HAVING OUR CAKE AND EATING IT, TOO 7 Their tribute to the individual is individual desires and social ne- only a pious pilgrimage to the cessities becomes difficult.” (p. 49, grave of an ancestor. Their very italics mine.) Who would care to willingness to draw up such com- defend individual desires when prehensive goals for the nation at- social necessities are in conflict tests to the enfeeblement of their with them? I had not supposed individualism. Their concrete pro- that an individual's desires mat- posals involve the increased ac- tered to anyone except himself. tivity of some collective, corporate, Those who established the Repub- community, city, state, and/or na- lic thought in terms of the natural tional organization. Judging by rights of the individual, not his what they recommend, no single desires. activity can be left solely to the It is plain in another instance individual; not unemployment in- that Dr. Wriston does not think surance, nor the arts, nor the de- in terms of individual rights. He velopment of resources, nor hous- declares, “Property and business ing. There are no concrete pro- exist for the benefit of individuals posals for protecting the individ- and have no inherent rights.” (p. ual from governments, despite the 52.) This is a truism and a cir- vast increases in governmental cumlocutiom of the question it activity which the Commission purports to raise. The question is advocates. To the contrary, there not, nor should it ever have been, are subtle suggestions for remov- whether property has rights but ing such limitations as now exist whether individuals have rights in the congressional power of ap- to the use of the proceeds from propriations, and in the virtually the property which they own or unlimited debate in the Senate. rent. This is the central question about property with which indi- vidualism is concerned. The very manner in which Dr. The Commission concludes its Henry M. Wriston, in his chapter report by urging individuals to on “The Individual,” defines the assume their responsibilities. One conflict between individual and might suppose that the Commis- social realms shows that his in- sion would avow the primary re- dividualism is only vestigial. He sponsibility of the individual for says, “In a society so completely, his own well-being. It should fol- and complexly, organized as ours, low, then, that they would recom- in a world so interdependent and mend such things as private sav- so disturbed, the choice between ings against misfortune, the “Social Necessities’ ===== PAGE 10 ===== 8 THE FREEMAN December avoidance of indebtedness which does not trouble the Commission limits independence, the securing that individuals who cannot pro- of private property by which the vide for their own private medical individual might provide for his needs should assume the responsi- needs, and the restoration of pri- bilities of the whole world. mary responsibilities to the home. Language, when not used in full oo consciousness of its portent, can Personal Responsibility Called betray the true orientation of the “A Purely Selfish Attitude” writer. So it is with Dr. Wriston I am dreaming, of course. No when he says, “The basic natural perceptive person who had read resource of the United States is as far as “A Concluding Word” its people. It follows inescapably in the report would have expected that the first national goal to be any such denouement. There is an pursued — at all levels, federal, oblique reference to the Ameri- state, local, and private — should can’s responsibility “for his own be the development of each in- life and livelihood,” but the con- dividual to his fullest potential.” crete proprosals which follow deal (p. 53.) There are some “nice” with our responsibilities to others. words in the quotation which give An individual who did devote him- the whole a soothing quality, but self primarily to his personal re- what is he saying? He is saying sponsibilities is no doubt con- that the individual is a “natural demned by the Commission’s edict resource,” a resource of the na- against “the fallacy of a purely tion, a subject for “national selfish attitude — the materialistic goals,” something that is to be ethic. Indifference to poverty and fully developed so that he can disease is inexcusable in a society benefit us all. Fair words obscure dedicated to the dignity of the in- the radical character of such dividual; so also is indifference to thought. Does the individual exist values other than material com- for the nation, or does the nation fort and national power.” (p. 23.) exist for individuals? If I am a We are, instead, to assume re- “natural resource of the United sponsibility for everyone else. “A States,” I must conclude that I basic goal for each American is to exist for the State. achieve a sense of responsibility as broad as his world-wide con- Man a Natural Resource cerns and as compelling as the How far are the United States dangers and opportunities he con- from their foundations when na- fronts.” (p. 23.) Apparently it tional leaders refer to human be- ===== PAGE 11 ===== 1961 HAVING OUR CAKE AND EATING IT, TOO 9 ings as natural resources, when tirely with the stated objectives individual fulfillment has as its of the Commission. Yet it is the end the meeting of national needs, tendency which is most important when individual responsibility is when we are thinking in terms of defined as responsibility for all developing a society. Even a jet mankind, when private property is plane goes from one port to an- subtly attacked in the name of the other inch by inch, as it were. The individual, when the extension of tendency of the Report of the collective activity is urged in the Commission is toward a totali- name of individual liberty? To- tarian society, however far we ward what kind of society would may be from that destination. We the “goals” of the Commission should attend more to those who take us (whether wittingly or have lived in such a society, and not) ? What rights would remain listen to what they protest for the individual in such a so- against. Czeslaw Milosz, in The ciety? Would it not be a society Captive Mind (New York, Vintage in which everyone is “developed” Books, p. 240), was not bemoaning to his fullest (whether he will the shortage of shoes under Com- or no?), in which each is respon- munism or the long hours of work. sible for all and all are reponsible Read his concluding statement: for each, in which it is one’s “duty” to contribute significantly When . . . I stand before Zeus to the general welfare? How much (whether 1 die naturally, or under longer can such a society permit sentence of History) I will repeat the wasteful “laissez-faire” prac- al this that 1 have written as my . ea. A efense. Many people spend their tice of individual choice of voca- entire lives collecting stamps or old tion? Lest I be accused of imag- (gins, or growing tulips. I am sure ining such dangers, note this pro- that Zeus will .be merciful toward nouncement by the Commission: people who have given themselves We must use available manpower entirely to these hobbies, even more efficiently. The practice of though they are only amusing and wasting highly trained people in Pointless diversions. I shall say to jobs below their capacity . . . must him: “It is not my fault that you be eliminated. (p. 8.) made me a poet. . . . I felt that if I did not use that gift my poetry . would be tasteless to me and fame wasting my talents, would I have detestable. Forgive me.” And per- to be eliminated also? haps Zeus, who does not call stamp- I deal here with the tendency collectors and tulip-growers silly, of these ideas, of course, not en- will forgive. Suppose I were to insist upon ===== PAGE 12 ===== 10 THE FREEMAN December Mr. Milosz has seen that there that we can have our cake and eat can be no room for the human it, too. Yet just as choice is the spirit in a society animated by sine qua mon of freedom, so it is necessity (called History in the the heavy price of freedom. The Communist orbit), in a planned individual cannot participate in a society, in a society where all ac- group without yielding up some tivities must be socially signifi- of his autonomy to the group. He cant, where the common good is cannot accept aid from others ‘the final arbiter of what can be “without having his existence con- done, ditioned by that aid. The man who cannot bear to :be alone will Ominous Implications have to learn to put up with the My purpose here is not to indict inconveniences of company. those who worked on Goals for It may be, at best, that for Americans for whatever ‘beliefs ‘every gain we make there is a cor- they may hold about the good so- responding loss. At any rate, there ciety. The tendency of the report, are no choices which are between however, is ominous. Its implica- everything we desire on the one tions are misleading. It .implies hand and things we loathe on the that there are no hard choices con- other. The choice should be made fronting us. It implies that we can in terms of what is ultimately have both free enterprise and gov- most important. If liberty is most ernment guaranteed security, that to be desired, we must sometimes we can increase collective action choose between it and a govern- with little danger to individual ment guarantee of security. If the liberty, that the federal govern- individual is most important, we ment can be extended into virtual- may sometimes have to see organ- ly every area of life without dead- izations destroyed. ening individual or local initiative. All our choices are not always The Commission invites discus- so immediately pressing as the sion but does not pose alternative above might be understood to im- courses for us to discuss, The ply. Yet each direction that we most insidious thing about the take by each action is a choice Report is its failure to present which, when its tendency is traced the broad range of alternatives out, points toward some goal. which confront us today. It im- Failing to name the goal does not plies, instead, that we do not have prevent movement in the direction to make any choices among the of it. No more will neglecting to many values which .we may seek, choose as a result of bringing the ===== PAGE 13 ===== 1961 HAVING OUR CAKE AND EATING IT, TOO 11 choices into focus keep us from world in which the right choices going in some direction. The Com- sometimes lead to apparent de- mission, by the vagueness of its feat. It is a world in which the vocabulary and looseness of its nation unwilling to risk failure by thought, has obscured the choices maintaining its principles will fail available and created a verbal il- because it will be corrupted by its lusion of compatibility between own actions. It is one in which the individualism and collectivism. Its man who fears to stand on his own statement of goals implies that we two feet may find help to stand, can maintain our traditional val- but he will be propelled in unde- ues — individual liberty, personal sired or unchosen directions by independence, and private realms those who uphold him. — by adoption of a social ethic Those who would outline nation- which leaves no room for them. al goals should do so with fear, They may conjure up a make-be- trembling, and humility, conscious lieve universe in which such things of the consequences of whatever are possible, but it is not the one direction they take. They should I inhabit. be aware of the numerous choices The world known to man which confront us. They should through the centuries is one in have some acquaintance with the which Socrates drank the cup of universe in which we actually live. hemlock, in which Jesus of Naza-- They should know that it is one in reth was crucified, in which Co- which you can’t have your cake and lumbus died in disgrace. It is a eat it, too. @® IDEAS ON LIBERTY The Master Word THOUGH LITTLE, the master word looms large in meaning. It is the “open sesame’ to every portal, the great equalizer, the philoso- pher’s stone which transmutes all base metal of humanity into gold. The stupid it will make bright, the bright brilliant, and the brilliant steady. To youth it brings hope, to the middle-aged con- fidence, to the aged repose. It is directly responsible for all ad- vances in medicine during the past 25 years. Not only has it been the touchstone of progress, but it is the measure of success in everyday life. And the master word is work. WILLIAM OSLER, M.D., 1849-1919 ===== PAGE 14 ===== The Freedom To CHOOSE FRED DEARMOND AS A YOUNG MAN and a dreamer I and end all the duplication of driv- went through the rebellious stage ing and equipment and begging when socialism appeared to me as for business; farmers and manu- the hope of an erring world. I read facturers providing too much of The Nation and the little Blue some things and not enough of Books, published by E. Haldeman- others; abortive business failures, Julius and authored by that re- dog-eat-dog competition. If all markable stable of writers that he this activity were organized and enlisted. Among them were some planned intelligently, then Tho- literary geniuses and more who reau’s dream of living comfort- represented the long-haired avant ably and working at a dull repeti- garde of contemporary reform — tive job only six weeks a year the skirmish line for our present could be made a reality. Then, too, heavy thunder of socialism’s le- Oscar Wilde's aim, so alluringly gions. voiced in his Soul of Man under The claim for the new order Socialism, to “reconstruct society that appealed most strongly to me on such a basis that poverty will at that time was the efficiency be impossible,” might be realized. that it was to usher into economic But I was fortunate in having life. Think of all the waste in a an older and wiser friend with competitive system: three men de- whom to discuss my aspirations livering milk or laundry in the for a better world. “Yes, it does same block, when one could do it look inviting at first glance,” he —_— said to me. “But here’s what is Mr. DeArmond, salesman, writer, and busi- principally wrong with the whole ness consultant on personnel training, is a con- tributor to numerous periodicals and the author scheme of the Socialists. It would of books such as The Executive at Work and . . How To Sell and Unsell Ideas. deprive men of the right to choose. 12 ===== PAGE 15 ===== 1961 THE FREEDOM TO CHOOSE 13 That is one of the basic freedoms The Importance of Saving that I cherish, and I believe you An important area of choice in do, too.” the economic zone is that between My friend went ahead patiently present gratification of immediate to explain that when a man ex- desires and the expectation of fu- amines his own motives, he doesn’t ture pleasures. Every time one want the good life prescribed for chooses the former, he spends, and him by anyone on earth. He wants when he chooses the latter, he to choose the road he will travel, saves. Saving was once considered decide for himself, make his own good, by the old-fashioned stand- mistakes. ards of Ben Franklin. Then John Later, I came to see how true Maynard Keynes sold America as this was. Then I realized that the well as his native Britain the mod- nearest thing to paradise a man ern philosophy that spending is a can hope to attain in this world is good word and saving a bad word. to get up in the morning when he But if past generations had not chooses, eat what he chooses for chosen to save, how could we have breakfast, choose what he will do all these great industries to pro- for the day, where he will go, duce goods and provide jobs? where he will live, and with whom Collectivism in all its forms is he will associate. This, of course, basically a denial of free choice is a Utopia not often completely for the individual. The regimen- realized. But we approach content- ters say people are incapable of ment in just about the degree that choosing what is best for them. we are free to choose for our- When that doctrine is refuted, selves. they retire to an inner fortress of That wise old seer, Ludwig von polemics and maintain that such Mises, has pictured the horizon of choice is not for the good of so- choice in his Human Action. ciety as a whole. “The greatest Choosing determines all decisions, good for the greatest number” is he says. More, “all human values their final dogma. No tyranny in are offered for option. . . . Man history has been so monstrous but never chooses between two modes that it could be defended on this of action which we call, from an pragmatic ground. What are a few adopted point of view, virtuous or million lives of Russians or vicious.” The various courses are Chinese in the scales against some arranged in a row before him. He fanatic’s notion of well-being for picks out one and sets aside the generations yet unborn? others, The area left for human choice ===== PAGE 16 ===== 14 THE FREEMAN December has been and is being pushed back a nation we can produce it, says in this country by a continually Wyatt F. De Loache, an official moving fence of government con- of Dupont’s Extension Division. ‘trols. Fifty years ago individual The stopping-point in govern- liberty was just passing its peak ment control of our money is not in America. Since then it has been in sight. In fact, the outlook in trending steadily downhill along 1961 is darker than ever before. the slope of central authority and The economic advisers of the new prescriptive rule of colonial days administration agree with one of under the English Georges, their number, Harvard Professor which the pioneers had shed their John K. Galbraith, that the people blood to change. It is the most re- are far too affluent. Much more of markable and fearsome cyclical their income must be taken by reversion of our times. Fearsome government for “socially desira- because on below the present ble” ends. The people’s morals and downward slope is a swampy low- culture will be improved if they land where liberty may be so re- have less to spend on elegant strained that Americans will look autos, exotic foods, erotic cloth- back to 1961 as a golden age by ing, and all the other things that comparison. Americans choose to buy with ree . their own money. Pwindling Area of Choke We do not have the choice of In 1911 an American could whether or not to invest in gov- choose where to spend or invest ernment bonds. Our savings in practically all his earnings. Then banks, investment companies, and we had no income taxes, but held insurance are in considerable part to the wise provision in the first in these securities without the in- article of the Constitution, which vestor having any choice about it. reads that “representatives and ) direct taxes shall be apportioned The Right To Werk among the several states . . . ac- The American of 1911 could cording to their respective num- contract to work for almost any bers.” Today an American has, on employer of his choice. Today, in the average, control over less than a large segment of industry, he two-thirds of his income. In the can take a job only if he has a above-average brackets he may union card or agrees to get one have as little as 9 per cent to dis- within sixty days. Then, except pose of as he chooses. Taxes are for a few tightly organized areas, confiscating wealth faster than as he could join a union or not. Now ===== PAGE 17 ===== 1961 THE FREEDOM TO CHOOSE 15 he is denied that choice in most such a fancy. But it has come to trades. pass; farmers have actually been It is no answer to say that the taken to court for harvesting a majority of union men seem to wheat crop for the market. prefer it that way. In some dicta- No longer can men and women tor-led unions we have been shown choose when they will retire or by the congressional investiga- how much they can earn by part- tions that there is no such thing time work after retirement. That as free expression of views. And is prescribed for them in most well over half the nation’s work- instances. ers are still unaffiliated with the The businessman’s traditional unions and entitled to choose how right to set the prices for his they shall bargain with employers. goods or services has been hedged In the Taft Administration no in to the point that he can’t be ‘one questioned the inalienable sure whether he has violated one right of an employer to choose for law by pricing too high or another a job the best available applicant, law by making his prices too low. or the one he thought he could get He is rightly prohibited from price along with best. Now, in some collusion — by a federal law en- states, he may have to answer to acted in 1889 and recently shown a board which says in effect, “You to be still adequate for its purpose. have discriminated against this To speculate on what will be race, or that religion, because it next is to open up an unpromising had more applicants than the one prospect. In view of the federal represented by the person you government's assumption of a sub- hired. We can’t permit that.” A stantial part of the responsibility militant minority in the Congress for education, how much longer clamors for a Fair Employment will your school board be free to Practices Act which would make choose texthooks your children this restriction national. and grandchildren will study? Is the freedom to choose your doctor and hospital to last much longer? Had anyone told an American Are we heading for some sort of farmer in 1911 that he would live resurrected caste system under to see the day when he would have which the careers that youth em- to obtain permission from a fed- bark upon will be chosen for eral official before choosing to them? Aldous Huxley's Brave New plant his south forty in wheat, the World and George Orwell's 1984 farmer would have laughed at have become much more than nov- When To Sow, When To Reap ===== PAGE 18 ===== 16 THE FREEMAN December elists’ fancies. Today they are ap- course —is being narrowed hourly. paritions of what may happen Von Mises says, “We do not as- here. sert that man is (entirely) free in choosing and acting. He is subject “Essential to Survival” to inherited characteristics — his At this point I pause to give biological patrimony .... Man is the Planners their chance for re- free in the sense that he must buttal. I know what they will say daily choose anew between policies first. “But limitations on freedom that lead to success and those that of individual choice are essential lead to disaster, social disintegra- to survival. You wouldn't permit tion, and barbarism.” people to choose all sorts of un- Both von Mises and F. A, Hayek social conduct. That would be a (Individualism and Economic Or- reversion to barbarism.” der) stress the dependence of This much, of course, must be sound choice on the chooser’s sense granted. There are some choices of values. The expression of val- that we cannot leave to individual ues we call judgment, and it discretion without inviting an- comes from character and experi- archy. No one in possession of nor- ence even more than education. mal faculties would leave a wife We cannot permit freedom of in possession of the liberty to choice to a patient in a hospital choose another husband more to without endangering the success her fancy without going through of his treatment. Nor can a prison certain processes of law. In busi- inmate be given much choice while ness, practices of deception and he is under discipline for his mis- fraud have long been proscribed doings. alike by public opinion and com- But the necessity of protecting mon and statute law. But in our freedom of choice, as the basis of time no businessman knows for all freedoms, from merely bureau- sure what he can and cannot cratic curtailment is not to be re- do, because he is subject to a futed by attacking these absurd myriad of regulatory orders by exceptions that only prove its es- quasi-legislative, quasi-judicial sential worth. The application of boards and commissions in Wash- all rules must be varied for fools ington, all having the force of law. . and criminals. However, we may Congress has abdicated much of well preserve even the right of its authority to the bureaucrats. a citizen to make fool choices, as The area of executive decision — long as in doing so he doesn’t freedom to choose the wisest trample on the rights of others. ===== PAGE 19 ===== 1961 THE FREEDOM TO CHOOSE 17 We Never Had It So Good! straints of collectivist “reform” The advocates of statism will have acted to bar material prog- raise another objection on strictly ress in many ways. To mention empirical grounds. “These fifty only one area, this influence has years when you say that freedom kept agriculture from realizing has been eroded in so many partic- the shining promise of natural ulars have been years of fabulous development in keeping with the advances in material well-being. scientific spirit of the age. Statism We never had it so good before. has created large new problem Do you want to go back to the way areas that under individual enter- people lived in 1911?” prise would not have confronted This argument is specious but us: in foreign trade and labor re- false. It begs the whole question lations as examples. Henry Wal- by posing two fallacious assump- lace’s effort in the 1930’s to rig tions. higher prices for the cotton farm- Assumption No. 1 is that er caused the United States to “standard of living” is the only or lose its position in the world cot- the chief yardstick of human hap- ton market and heavily restricted piness. It leaves unanswered the our exports by building up com- question: Are people on the whole petition from other countries. The happier than they were in 1911, Wagner Act and its National La- when their freedom to choose was bor Relations Board displaced gen- so much greater? Have their spir- uine collective bargaining between itual resources been undermined? management and labor with a new Could they endure with fortitude form of collective bludgeoning another terrible ordeal such as which still prevails. they met successfully in 1861-65? We must remember, too, that Assumption No. 2 is that there the American economy didn’t is some relation of cause and ef- stand still before the coming of fect between the rise of statism the collectivist revolution. It could and the advance of twentieth cen- be shown that material progress tury technology that has brought from the end of the Civil War to so many new inventions and the 1911 was relatively even greater ability to produce and distribute than it has been since that time. more goods to more people. There We have reason to believe that un- is no valid evidence of any cor- fettered individualism would have relation between the two phenom- accomplished more, rather than ena, On the contrary, the dead less, in the past fifty years, than hand of bureaucracy and the re- we have witnessed, and at the ===== PAGE 20 ===== 18 THE FREEMAN December same time have preserved these ders and regulations from hun- lost freedoms. Nor is it too late to dreds of boards and commissions, deflect the present trend. commanding the citizen he must do this and he must not do that, If we are to continue as free- free choice is being suppressed at born Americans, we should not, in an alarming rate. These omniscient Emerson’s words, ‘abdicate planners are deciding for us. Every choice.” Actually we have already day the difference between being in abdicated shockingly large areas prison and out of prison becomes of choice. With every session of less. And that man with the brief Congress and of the fifty legisla- case, from the IRS, may be ring- tures, to say nothing of the city ing your doorbell today to spell it councils and the daily grist of or- out for you. @® DEAN RUSSELL MORE MONEY is being spent today mental and private expenditures. than ever before to sell “freedom The primary reason for this is and the American way of life.” that the persons who are conduct- Literally, hundreds of millions of ing these sales campaigns seem to dollars are spent every year on this think that freedom is a tangible project, at home and abroad. In product. Thus it is hardly surpris- my opinion, almost all of it is ing that they try to sell freedom in wasted, including both govern- exactly the same way that has proved so successful in selling Dr. Russell is Professor of Economics at soap Rockford College and Chairman of the De- : partment of Economics and Business Adminis- i . 3 tration. This article is from his weekly edi- But freedom is not a product; it torial column in the Sunday edition of the iS an idea — an abstract, hard-to- Rockford [Illinois] Morning Star, July 23, : 1961. understand, and generally unpopu- ===== PAGE 21 ===== 1961 WHAT FREEDOM MEANS 19 lar idea. Since freedom is not a higher level of material living. (It product, it cannot be bought or will, but that is a mere by-prod- sold. With that in mind, examine uct.) the central theme of these adver- Our forefathers who fought for tisements and campaigns for free- freedom never claimed that it dom and the American way. You would provide more buggies and will usually find the promise that wagons than socialism would. (It “freedom will provide you with did, but that is merely one of the more bathtubs and automobiles results of freedom, not freedom it- than communism will.” self.) That statement is true enough, True enough, the founders of but it hardly inspires men’s souls. this nation believed firmly that While I enjoy bathtubs and auto- private ownership of property un- mobiles (and own two of each), dergirds freedom. And all of them I am not willing to die for them. said so, loudly and clearly. Thus, If necessary, however, I am will- of course, they were willing to fight ing to die for freedom. Since 1 for that, too. But note that they will not give up my life for an fought for the right of ownership automatic dishwasher or central (the abstract idea) rather than heating, just what is this abstract for the property itself. idea of freedom that I find so They fought for the right of a precious? person to go into business for him- self — if he wanted to, and if he The Kind of Freedom could earn, borrow, or inherit the the Founders Sought necessary capital. Perhaps a logical starting point They fought for the right of for our discussion would be to ex- any person to hire any other per- amine again the concept of free- son to work for him, on terms dom for which the founders of this mutually agreed to by both indi- nation were willing to sacrifice all viduals, of their material wealth, and their They fought for what is perhaps lives, too. Read their letters and the key to all freedom — the right speeches and books — the minis- of a person to quit his job for any ters, statesmen, farmers, mer- reason whatever, and to try to find chants, lawyers, and others who another one. They fought also for advocated and led our revolution the equal right of an employer to for freedom. You will be hard put fire any employee he chooses to to find any promise that freedom fire, and for any logical or illogical will bring to its defenders a reason he may have. Realists like ===== PAGE 22 ===== 20 THE FREEMAN December Franklin and Madison were well the only thing we seem to have left aware that the one right cannot —material rewards like the tangi- long exist in the absence of the ble money payments from compul- other. sory social security. We rhapsodize Above all, they fought to keep about our public housing develop- their own government (their own ments and hydroelectric dams that duly elected officials) out of their all of us are forced to pay for, and personal and business affairs. They that can actually be photographed fought to preserve the right (the and shown to the leaders of the chance, the possibility) of any per- new nations as examples of what son to become a millionaire or a they should do. We pridefully re- pauper — as ability and luck might count the actual jobs that are determine. They fought to pre- guaranteed or provided by govern- serve the precious right of persons mental decree. And so on through to love their fellow men and to be all of the realities and promises charitable to them, if they choose of material benefits that underlie to do so. In short, they fought for our compulsory social programs. the abstract idea that is freedom We talk about sacrifice but vote —that is, the “exemption from for more subsidies and material necessity, in choice and action.” benefits. We Americans have so Can you imagine our “Voice of lost our way that it should have America” trying to explain that surprised no one when our leaders nonmaterial and abstract idea to actually appointed a committee to the “uncommitted nations of Asia try to find for us some acceptable and Africa”? I can’t, for two rea- national purpose! As could have sons. been predicted, of course they failed miserably. Even so, perhaps If We Do Not Believe we can draw some comfort from First, we Americans don’t be- the fact that our leaders at least lieve in freedom any more; we realize that something is missing. would rather have government- This emphasis on government- guaranteed security. Second, even guaranteed material possessions if we did believe in it, the Africans may now well be the “American (and Europeans and Americans way of life” (just as it has always and Asiatics) wouldn’t understand been the communist way of life), such an abstract idea of personal but it most definitely is not free- responsibility anyway. Thus, since dom. That disappeared with the we no longer have an abstract ideal advent of the words “compulsory, to offer them, we try to sell them forced, governmental decree,” and ===== PAGE 23 ===== 1961 WHAT FREEDOM MEANS 21 so on. Freedom (choice) for the filling their promises, the Com- farmer really disappeared when he munists speak of the abstract accepted those first “free” seeds ideals of brotherhood, peace, from government ; the present con- equality, dignity, and so on. Mean- trols over what and how much he while, we Americans keep yapping may grow followed automatically. about material bathtubs, automo- Freedom (exemption from neces- biles, soap, guaranteed jobs, com- sity) for employees disappeared pulsory social security, and federal with the Wagner Act (and its suc- aid to state and local governments. cessors) that permits and encour- Can you find anything worth fight- ages labor leaders to force them to ing and dying for in any of them? join a union against their wishes. If my political leaders decide Freedom (choice in action) dis- that it is necessary for me to man appeared for all of us when the my machine gun again “to fight for government first compelled us to freedom,” I'll do it. But let them pay tribute to its alleged insurance clearly understand that I'll be scheme whereby everybody is fighting for an abstract idea and promised that he can live at the ideal — freedom; the right to be re- expense of everybody else. And so sponsible for my own welfare; to on and so on through the thou- suffer the consequences, good or sands of other material schemes bad, that result from my own that compel peaceful persons to choices; to go unemployed if no participate against their wishes, one wants to hire me; to go hungry if no person or church or We Fly False Colors charitable organization will give Today we are trying to sell these me bread; to associate with any- compulsory material aspects of our one who cares to associate with society under the fraudulent label me, and for any good or bad rea- of freedom. The Communists will son that appeals to either of us; continue to beat us at this game to worship God, or not, as I for two reasons. First, they can please; to teach my children that (and do) outpromise us in ma- freedom automatically disappears terial benefits. Second, and by far when the government applies com- the most important, the Com- pulsions against peaceful persons; munists understand that men pre- and above all, to hold to my con- fer to fight for abstract ideals that viction that freedom is more appeal to their souls instead of precious than any material bene- their bellies. Thus, though they fit — yea, even more precious than have no intention whatever of ful- life itself. @® ===== PAGE 24 ===== DANIEL K. STEWART A ) PROPOSITION ) OF CONSERVATISM [] THERE has been in the making for — are the true reactionaries of our some time in the United States a age. general, albeit hazy, delineation However, even while this gen- among the citizenry between two eral distinction between Liberal- major kinds of political philoso- ism and Conservatism has been phies, namely: Liberalism and made, there is ample reason to Conservatism. Political nihilists, believe that the distinction has otherwise euphemistically called not gone far enough in terms of “middle-of-the-roaders,” “moder- a critical examination of certain ates,” and the like, are increasing- philosophical propositions under- ly and justifiably suspect as the lying these two antithetical polit- intellectual exponents of meta- ical systems. The purpose of this physical fraud. : paper is to provide such an ex- That this rather basic distinc- amination. tion has taken so long to reflect First, is the self-evident obser- itself in our communication media vation that at the basis of any merely shows the opposition to system of thought which purports change by existing social institu- to be explanatory, one must make tions. It illustrates what the so- a metaphysical decision as to how ciologists mean by “cultural lag,” he is going to view reality. And, and affirms assertions by Con- my position is that, philosophi- servatives that the Liberals — in cally speaking, a Conservative is control of these social institutions essentially an Idealist, while a —_— Liberal is essentially a Material- Dr. Stewart is an Assistant Professor of jot The implication would be, Natural Science at Michigan State University. He is faculty advisor to the Michigan State therefore, if one is to arrive at Conservative Club, a member of the National . Advisory Board of Young Americans for Free- an understanding of modern Con- dom, and state chairman of the Conservative . «x _.» . n Association of Michigan. servatism vis-a-vis Liberalism, he 22 ===== PAGE 25 ===== 1961 A BASIC PROPOSITION OF CONSERVATISM 23 must have at least a rudimentary main the atheists we have always knowledge of the philosophical dis- been.” tinction between Idealism and Conservatism has its philosoph- Materialism. ical foundation in the spiritual world — in Idealism. For Conserva- Idealist and Materialist tives, reality or “true essence con- Views of Reality sists of certain intelligible and in- Idealists view reality as con- corporeal ideas; the bodies of the sisting of ideas, as something materialists (are taken to be) not spiritual, as something to do with essence, but generation and mo- the psyche, as “logos.” Thus, as tion.” Plato says, “true essence consists In final analysis, it’s a matter of of certain intelligible and incorpo- where you wish to place your faith real ideas.” —in that which is forever in a As opposed to this, Materialists state of becoming, namely, the view reality as something sensory, physical world, or that which has as something which can physically true being, that which is. It's a operate on our perceptual organs, matter of intellectually discerning, something which lends itself to quite literally, of what 7s and what what scientists call ‘fundamental isn’t — of what has being and what measurement.” Thus, for the Ma- is forever in a state of becoming. terialists, those “things only which If anyone should be under the can be touched or handled have impression that modern empirical being or essence, because they de- science is not, in final analysis, a fine being and body as one.” matter of faith, let him — when he (Plato) gets through talking — merely pro- Sometimes we hear Conserva- duce for us a sack of those things tives referring to Liberals (So- we call “genes,” or for that mat- cialists) as being “Idealists.” But ter, a sack of discrete “atoms” this simply is not true — certainly which these genes are assumed to not philosophically, and certainly be made of. When this occurs, we not politically. Socialists are con- shall be more inclined to believe genitally concerned with things of him when he would persuade us the physical world. They are not that man is merely a sack of chem- concerned with the spiritual real- icals. ity of the Idealists. This is why, Now, just as Materialism has for example, it is quite accurate its political manifestations, so does for Khrushchev (a militant So- Idealism. Just as any good Ma- cialist) to announce “that we re- terialist would be inclined to be- ===== PAGE 26 ===== 24 THE FREEMAN December lieve that “Man is the Measure of stroy his Free Will, and, in con- All Things” (i. e., not dependent sequence of this, destroy the moral upon God), and, hence, embrace foundation of his government. some variation of Socialistic-type This is the precise reason why government, the Idealist would be Conservatives are opposed to So- more inclined to believe that God cialistic-type legislation — whether is the measure of all things, and, it be in the form of government hence, embrace some form of gov- enforced medical aid to the aged, ernment which would provide max- government enforced farm con- imum freedom for the individual. trols, government enforced regu- And, in our age, the latter are lation of business, or any proposal commonly known as “Conserva- that would have the effect of in- tives.” © creasing the power of the govern- ment over the individual. Through Freedom Is a Moral Concept such legislation, the individual Thus, in terms of political sys- loses his freedom of choice, and tems Conservatives begin with the ultimately, the moral foundation basic premise that government of his society. must be predicated upon a moral This, therefore, is the reason foundation. We believe that the why the basic metaphysical prop- primary object of political activity osition of American political phi- should be freedom of the individ- losophy, for Conservatives, is the ual citizen. existence of a moral God. And while it is true that free- It is only by granting the ex- dom can be manifested in many istence of a moral God that it ways, what makes any given act makes any sense for Conserva- a valid predication to the concept tives to be talking about freedom of freedom is that it is the product of the individual. This “freedom” of a genuine choice on the part depends upon freedom of choice, of the individual citizen. It fol- and therefore, Free Will. And lows, then, that freedom is a moral Free Will depends upon the ex- concept — the concrete manifesta- istence of a moral God. tion of which is the exercise of Being guided by a moral phi- Free Will. losophy, the Conservative believes Hence, when political systems that God is the measure of all destroy man’s freedom, they de- things. : @® ===== PAGE 27 ===== INFLATION | . NAN STRIKES HOME ~~, A . . or — FEDERAL AID FOR SANTA CLAUS? / It was a bright December day 7 With Christmas drawing nigh. Va Old Kaspar shivered in his chair vd And turned an anxious eye / ~, On Peterkin and Wilhelmine Vo Who watched the metaphoric screen. \ They saw the far, secluded spot / Beneath the Northern Lights Pa Where Santa Claus made all the toys J ; | He carried on his flights. / But now the little shop was dark And coyotes prowled the reindeer park. / The children turned the vision off i And ran to Kaspar’s side. | “Now tell us where Old Santa is!” : They both together cried; “Now tell us why he’s gone, and where; And why his shop’s deserted there!” Old Kaspar drew the children up And sat them on his knees. “We must be very calm,” he said, “And brave in times like these; For who can tell what may befall To save Old Santa after all.” “Things got so bad,” said Kaspar then, “He had to close up shop. His costs kept rising every year And never seemed to drop, While taxes whittled down his wealth And worry undermined his health.” “How can we live,” the children wailed, “Without Old Santa Claus!” “To think of that,” Old Kaspar sighed, “Is premature because The many wealthy friends he made Will surely get him federal aid.” H. P. B. JENKINS Economist, Fayetteville, Arkansas 25 ===== PAGE 28 ===== WILLIAM R. ALLEN S\VINg FOREIGN AID, “THE WORLD LOOKS [for] an early Board of Governors, “I have no- solution,” said a Pakistan repre- ticed a tendency at times for de- sentative to the International velopment to be regarded as some- Monetary Fund and the World thing which is due, as of right, Bank, to the problem of “the slums from the more advanced nations of the world, which are otherwise to those less well developed. What- called backward areas.” Unfortu- ever the rights and obligations of nately, there are no buttons to different nations may be, develop- push which will overnight — or ment is not something which can over a decade — transform a poor be imported from abroad. It is nation into a wealthy one. If there something which can only be won were, no nation would long remain internally by acceptance of respon- poor. sibility, hard work, and sacrifice.” However, it now and then ap- There are difficulties in both de- pears that some Americans fining and measuring ‘economic (clearly too anxious to do good) development.” But presumably the and some foreigners (possibly too crux of economic development is a anxious to consume wealth which “substantial and persistent” rate they have not produced) look upon of increase in per capita income, United States aid as a close substi- perhaps with the proviso that the tute for such a magic button. Eu- increased output of the commu- gene R. Black, President of the nity be “reasonably” widely dis- World Bank, bluntly told his persed. The ever enlarging flow of Dr. Allen is Associate Professor of Economics goods and services which provides University of California at Los Angeles. "economic betterment is not manna 26 ===== PAGE 29 ===== 1961 SAVING, FOREIGN AID, AND GROWTH 27 from heaven, nor is it produced other means of production? Are from an unlimited supply of re- there adequate incentives for effi- sources. The overriding economic cient work — and appropriate pen- fact of scarcity thus calls for pro- alties for inefficiency? Is the gov- ductive efficiency. And efficiency, ernment sufficiently “stable” to in turn, calls for the devoting of maintain economic, political, and some resources to capital goods — civil order, to generate confidence factories, equipment, dams, har- in a future for which plans may bors, roads, schools. be made, and perhaps to undertake Assistance from abroad may be certain key production projects intended to help in the accumula- not attractive enough commer- tion of capital. Capital accumula- cially to engage private enter- tion doubtlessly is a necessary con- prises? Are the mores and philoso- dition of economic development, phy of the community cordial to but it is not a sufficient condition. ‘growth’ activities? Are the peo- And foreign aid is neither neces- ple sufficiently flexible and mobile, sary nor sufficient for an apprecia- geographically and occupationally? ble degree of capital accumulation Can population increase be kept — a degree which, however, many under control? will deem inadequate on various Having thus suggested that the grounds. world is a complicated place, the The value of American aid to emphasis here is on the second underdeveloped countries, while reason why American aid cannot scarcely negligible, is basically by itself ensure foreign economic limited, because (a) growth re- growth: the would-be growers quires more than capital, and (b) must, in a real sense, do their own “saving” must be done by the saving. growing country itself. We shall not pursue far the Sources of Savings matter of growth prerequisites If, for the moment, we ignore other than capital. Suffice it to receipts of foreign gifts and in- note that such prerequisites are vestments, an economy can accu- “social” and “political” as well as mulate capital only if it saves. narrowly “economic.” There are two basic internal Are there enough literate and sources of capital. (1) Some re- energetic workers? Are there sources which are now producing enough experienced and imagina- for current consumption may tive entrepreneurs? Is there a fav- shift into production of . capital orable ratio of working force to goods. (2) The total output of the ===== PAGE 30 ===== 28 THE FREEMAN December economy may be increased, with and instead uses the foreign re- the additional output (or some of sources simply for more current it) being channeled into capital consumption. production. In either case, total output is greater than comsump- Robinson Crusoe tion; the excess requires an act of Consider the case of Robinson saving and constitutes investment. Crusoe. He catches fish by hand, Capital accumulation, then, in- fishing eight hours per day, catch- volves currently producing more ing one fish per hour. He may de- than is currently consumed. Cur- cide that fishing with a net would rent production in excess of cur- be more efficient. Building the net rent consumption makes feasible is a process of investment and re- the devoting of output to capital sults in capital accumulation. How goods. shall the process be carried out? If there is an excess of produc- What is the source of the capital? tion over consumption, the gap in- There are alternatives. First, volves saving. For saving is usu- Crusoe may continue to catch eight ally defined as income currently fish per day, but he might eat only received (earned in current pro- six and store two. After gathering duction) and not currently con- enough fish to feed himself for sumed. But suppose that country the necessary time, he could then Alpha consumes all of her own stop fishing long enough to con- output. Could she not then build struct the net. up her capital with gifts from There is a more likely variation abroad or with borrowing? Under of this first possibility. Instead of the definition of saving given doing nothing but catch fish for a above, the answer is yes. But a while and then nothing but build modified definition will clarify the net, Crusoe might cut his fish- matters. ing to six hours and devote the re- Let us now define saving as the maining two hours to working on gap between consumption and the the net. In either variation, the whole of the community’s avail- important point is that current able resources, including those consumption (of fish) is reduced supplied by foreigners through so that resources can be directed gifts and loans as well as those to accumulating capital (in the stemming from domestic produc- form of a net). tion. Then American aid will not The second basic alternative in- contribute to Alphian capital ac- volves a greater total output. For cumulation if Alpha fails to save Crusoe, this means reducing lei- ===== PAGE 31 ===== 1961 SAVING, FOREIGN AID, AND GROWTH 29 sure, working perhaps ten hours ity of starting “international” per day. He could then continue to flows of trade, loans, and gifts be- catch and consume eight fish per tween them. Under these circum- day while devoting two hours to stances, what is the relation be- making the net. Total current con- tween saving and capital accumu- sumption (of fish, but not of lei- lation? Does international trade, sure) remains unchanged. investment, or aid enable a coun- Both of these basic alternatives try to develop economically with- have one crucial point in common: out being subject to the discipline consumption must be less than to- of saving? tal output. Whether we accumulate Crusoe and Friday might en- capital through holding total out- gage in balanced trade, t.e., the put constant and cutting consump- money value of Crusoe’s exports tion, or whether we hold consump- equals the money value of his im- tion constant and increase output, ports. In money terms, Crusoe there must be a gap between the gives up as much as he gets. He two. The creation of this gap in- is presumably better off in terms volves saving; and saving frees of ‘“welfare” or “satisfaction” — resources for capital accumulation. why else would he have bothered Saving makes “productive” invest- to trade? But is balanced trade a ment possible. Whether the re- source of capital accumulation? sources are wisely used is another With trade (and the presumed matter. Crusoe might devote his production specialization on which investment not to producing a net it is based), Crusoe — and Friday, but to constructing a totem pole. too — will have available more com- In either case, the first step is modities than if there had been no saving. trade. Trade makes possible a more efficient use of resources, so a great- Enter, Friday er output can be obtained from giv- Thus far we have assumed that en inputs. But whether there will Crusoe is isolated. If he is to ac- be capital accumulation depends on quire a net, he must construct it whether Crusoe devotes some of with his own resources. The re- this additional income to invest- sources may have been diverted ment or whether it all goes into from catching fish for a time or consumption. Actual capital goods may have come from working long- need not be imported; consumer er hours. Now perhaps Mr. Friday goods may be bought abroad, sub- appears. With two economic units stituted for domestic goods, and in the picture, there is the possibil- thereby allow domestic resources ===== PAGE 32 ===== 30 THE FREEMAN December to be shifted to investment proj- day, he now has at his disposal ects. additional commodities. This, in it- Again we arrive at the conclu- self, neither constitutes nor guar- sion: saving means foregoing con- antees capital accumulation. The sumption out of current produc- problem obviously is what Crusoe tion and income, and saving re- does with his acquired command leases resources for capital ac- over foreign resources. Does he cumulation. import tractors or solid gold Ca- Consider another situation. In- dillacs? stead of exporting valuable goods It may be objected that if Fri- in order to obtain desired items day has granted the gift or loan in from Friday, suppose that Crusoe order to aid economic development gets a loan or a gift from Friday. by Crusoe, he could specify, as a Here, one might suppose, is an condition of the aid, that Crusoe easy, burdenless way to achieve buy tractors. But can Friday real- economic growth. Instead of Cru- ly thereby direct Crusoe to save soe having to suffer the pains of instead of consume? Not if Crusoe saving, he will accumulate capital is already doing some saving. Un- through gifts and loans from less Crusoe has been consuming abroad. all of his output, he could now If Crusoe wants to be pedantic, import tractors, according to the he can claim that it is possible in order of Friday, and simply in- this case of foreign assistance to crease consumption of his own out- accumulate without saving. For put. Thus “foreign saving” (i.e. saving is generally defined, as we using the foreign loan or aid for have seen, as foregoing some con- investment in tractors instead of sumption of current production; in consumption of Cadillacs) is and Crusoe is not, of course, pro- offset by reduced domestic saving ducing the goods which he re- (i.e. increased consumption of ceives from Friday as a gift or a domestic output). loan. Assuming that his own pro- duction remains constant, Crusoe Can the Poor Catch Up? can maintain his old level of con- Loans and gifts from abroad sumption — thus no additional sav- make possible capital accumula- ing, according to the conventional tion without curtailing consump- definition — and still accumulate. tion. Also they make possible ad- But in a fundamental sense, Cru- ditional consumption. It is essen- soe would be kidding himself. If tial that consumption not rise by he gets a loan or a gift from Fri- the amount of the foreign aid. The ===== PAGE 33 ===== 1961 SAVING, FOREIGN AID, AND GROWTH 31 moral is clear: although assistance sumption disparities in the world, from abroad can help a country while possibly inspiring the poor grow economically, such assist- to save in order to “catch up,” ance does not excuse that country seems more likely to lead the poor from the onerous chore of saving. to emulate the wealthy as much as Outside aid can supplement do- possible in their consumption. mestic saving but cannot supplant The people ‘who need most to it. save, if they are to develop eco- In general, the underdeveloped nomically, are those for whom countries save relatively small saving is most difficult. percentages of relatively small in- comes — and, it should be added, they usually have, or threaten to A few concluding words are in have, relatively high rates of popu- order. lation growth, thus preventing Over the past twenty-odd the rate of per capita accumula- years, America has given eco- tion from rising much, if any, nomic assistance to the rest of the above zero. (With per capita in- world in a manner and on a scale come some ten times that of two- unique in history. The aid was thirds of the world’s people and vital in repulsing the legions of a net saving rate of around ten the Axis in the early 1940s; it per cent of national income, the may have been instrumental in average American saves each year keeping the Russian flag from the an amount equal to the annual in- British Channel and the Mediter- come of most of the inhabitants of ranean in the late 1940’s. The aid the world!) has continued, not to help win a It should be appreciated by war or to clear the rubble after a Americans, who are fabulously war, but in large measure to al- wealthy compared to most of the leviate the misery, the hopeless- world’s residents, that saving gen- ness — yes, the cancer — of appal- erally is more irksome for the ling poverty which afflicts most of rest of the globe. This is the case the world’s people. We need not for two reasons: (a) when income be reluctant to say forthrightly is desperately low, consumption (even if some are) that the basic cannot easily be cut, and if in- objective and the ultimate test of come is raised a bit, the tempta- American aid, or of any public use tion is tremendous to consume, of our resources, is American sur- rather than save, the increase; vival and general well-being. But (b) the fact of income and con- in a world in which progressing The Situation Reviewed ===== PAGE 34 ===== 32 THE FREEMAN December and prospering friends can be an for the underdeveloped nations, in- asset, this objective and test has cluding the U.S, of 150 or 200 seemed to many to be consistent years ago. with our motivations of compas- In America, the cultural back- sion and generosity. ground; the supply of acquired The main resources and the skills of workers and of experi- main effort for growth must come enced investors and managers; the from the growing nations them- legal, religious, and economic in- selves. American aid can usefully stitutions; the climate; the endow- complement, but can never replace, ment of natural resources; the their own means and endeavors. ratio of population to other re- Indeed, gifts and loans are not the sources — all were favorable to major contribution we can make to growth and, by and large, remain economic growth abroad. More im- favorable to continued growth. portant is that we maintain a Not all areas of the world are so fully and efficiently employed and blessed. And even if they were, the expanding economy of our own living standard of this part of the and that we maintain free access world is now far higher than that to this economy by the rest of the of most regions — and it is very world. In neither good sense nor likely that the size of the gap will in good conscience can we expend grow much larger during the next our resources on foreign aid while several decades. at the same time leaving clogged Without hope, nothing will be the channels of foreign trade and accomplished. And there is a basis investment. for hope, for something can be ac- Finally, we must appreciate that complished. It may be a condition the world is a complicated place. of our survival that much be done. In important respects, it is far But wishing will not make it so more complicated and discourag- — nor will fervent expressions of ing for today’s economically un- exaggerated expectations or spuri- derdeveloped countries than it was ous statements of grandiose goals. Henry Hazlitt HELP FROM OUTSIDE to any country goes eventually to relieve the least urgent needs which the government of that country then decides to meet. Will Dollars Save the World? ===== PAGE 35 ===== Ebwi ‘MCDOWELL AMID GREAT FLOURISH, the U.S.A. sanitation programs, reform tax in August launched a $20 billion, laws, improve working conditions, ten-year Alliance for Progress maintain sound monetary and fis- program of economic aid to Latin cal policies, and otherwise lift America. The objective of the pro- Latin America by its bootstraps so gram is to effect overdue social that the area might escape the and economic reforms in an area grinding poverty that has for too which, despite its vast natural re- long been the lot of our hemi- sources and potential wealth, gen- spheric neighbors. erally has lagged behind its North- No one can quarrel with the ern neighbor and behind the na- aims of the Alliance. But one can tions of Europe. and should ask whether the pro- The Alliance for Progress, for gram agreed to at Punta del Este, which the U.S. will furnish the Uruguay, will advance or retard great bulk of development loans, the lot of Latin America’s citizens, running up to as long as 50 years and whether it will advance or re- at little or no interest rates, is as tard the cause of freedom in those ambitious a program as has ever lands. For that reason it is well been undertaken by any nation — to take a good look at the program more ambitious, even, than the to which the U.S. is committed post-war Marshall Plan. It pledges South of the Border. to increase incomes in Latin Amer- A fundamental flaw in the crazy ican countries, provide adequate quilt patchwork of “reforms” out- housing, effect land reforms, wipe lined in “The Charter of Punta del out illiteracy, introduce health and Este” is, as Henry Hazlitt observed _— oo in Newsweek, that they are not Mr. McDowell is on the editorial staff of The . . . . Arizona Republic in Phoenix. aimed in the direction of encour- 33 ===== PAGE 36 ===== 34 THE FREEMAN December aging free enterprise, removing charter’s pledge to ‘assure to vexatious controls, safeguarding workers fair wages and satisfac- private property, reducing onerous tory working conditions.” Is there taxation and government extrava- really such a thing as a “fair gance, balancing budgets, and wage”? If so, who is to decide? halting inflations. “The money has The employee? The employer? been offered,” Hazlitt writes, “on Both? Or, as seems inevitable, the the condition that the Latin Amer- government? If it is the latter, ican countries will undertake ‘na- how will it be possible to honor tional [i.e., governmental] plan- such a pledge without bringing ning,’ ‘land reform,” and socialized the entire machinery of govern- housing — in brief, if they will ment into the vital area of labor- move still further toward social- management negotiations? ism and the Welfare State.” What about housing promised oo the Latins by the charter? Will it Marxist Implications be the result of private enterprise, That columnist Hazlitt is cor- or, as seems more likely to be the rect can be seen in the following case, will it be the result of mas- aim of the Alliance: “To reform sive public housing programs paid tax laws, demanding more from for by U.S. taxpayers? And how those who have most, punishing about land reform, which is em- tax evasion severely, and redis- phasized so strongly by the char- tributing the national income in ter? In the past this usually has order to benefit those who are meant a grave infringement of most in need, while, at-the same private property rights, resulting time, promoting savings and in- in a reduction rather than an in- vestment and re-investment of crease of agricultural output. Fear capital.” (Emphasis mine) That that such an infringement might passage is not from Karl Marx, indeed result from land reform although it might have been. What prompted this remark to U.S. else does “demanding more from News & World Report from a those who have most” or “redis- Latin American businessman: tributing the national income in ‘Personally, I see no need for land order to benefit those who are most to be seized from some and par- in need” suggest than the very celed out to others. There's plenty core of Marxist theory, “From of land for all in most countries of each according to his abilities, to Latin America, if roads are built each according to his needs”? and governments divide up their Consider what is implied in the vast holdings.” ===== PAGE 37 ===== 1961 ALLIANCE FOR PROGRESS — OR SOCIALISM ? 35 Private Enterprise Overlooked to ameliorate them,” the Times It is discouragingly clear that asked, “what basis is there for private enterprise — which stands believing that the necessary tenth in a list of twelve “goals” -- changes will now be made?” was included merely to be dangled in front of U.S. taxpayers. Accord- A Discouraging Prospect ing to the Washington Post, when ‘There is no doubt that Latin Communist Cuban economic boss America is in dire need of invest- Ernesto (Che) Guevara proposed ment capital, either from within that a promise to promote all sec- or without. Yet governments in tors of a nation’s economy be sub- that area seem determined to drive stituted for a pledge to stimulate investment away. U.S. private in- private activity, the U.S. delegate vestment in Latin America has to the Uruguay conference replied been enormous, considering the that it would be hard for the obstacles it faces. Private U.S. American public to understand a funds have accounted for about $9 change which eliminated stimula- billion (or nearly two-thirds of tion of private enterprise. This all foreign investment) in Latin shockingly weak defense of free America thus far. And this despite enterprise was then further vi- the fact that investors live in con- tiated by our promise to help boost stant fear of having their property the price of coffee and tin against seized by ambitious and unfriendly American consumers, by our en- governments that keep the Hemi- dorsement of export quotas of sphere in a constant state of tur- these products from Latin Amer- moil — and poverty. (Mexico in the ican producers, and our recom- 1930’s, and Cuba today, are two mendation of policing imports into prime examples.) Exorbitant tax the United States. rates on investment, government- Overlooked by supporters of the like labor unions that oftentimes Alliance is the fact that none of run the country, and socialist these problems is new; as the Los countries and socialist rulers that Angeles Times pointed out, some at best are hostile to free enter- have existed since the days of the prise, all work to scare off private conquistadores. Most are strictly investment. internal problems which can be Just recently the Chilean gov- solved only by internal measures. ernment, angered because U.N. “If these problems have been al- Ambassador Adlai Stevenson hit lowed to exist for this long with- at that country’s ‘economic stag- out any serious effort being made nation,” reacted by clamping ===== PAGE 38 ===== x 36 THE FREEMAN December stringent new restrictions on U.S. and livestock industry and placing copper companies in the nation. an unjustifiable burden on tax- And in Buenos Aires, the Wilson payers. Meat Company, the third largest Wrote Venezuelan economist U.S.-controlled packing company Francisco Pereira, in the news- in Argentina, closed down after 48 paper Universal, “Unfortunately years (at a loss to that nation of this plan and this evil still exist 2,400 jobs) because of a series of under other names, and have in- strikes which halted production vaded not only the ministry of pub- for almost three months. lic works, but also the autonomous Is it any wonder, then, that U.S. institutes, the states, the munici- companies are reluctant to invest palities, even private firms, like in Latin America? Even Latin the telephone company, the city Americans themselves recognize transportation institute - (which the risk, and for that reason have has said that it does not need even invested an estimated $6 billion half of its personnel). The tax- of their own in Europe and the payer's money is thus being used U.S. as a hedge against political in effect to strangle its production, turmoil and inflation. its activities —it is practically suicide.” Expropriation in Venezuela And so it is. The number of Events in Venezuela and Bolivia government employees in Vene- provide evidence that internal re- zuela has risen from slightly more form is Latin America’s most than 30,000 in 1957 to 125,681 in pressing need. Trouble began in 1960. the former country when the Like so many other nations, Venezuelan government resorted Venezuela fell prey to the error of to policies of inflation and deficit trying to strangle the goose laying spending, together with welfar- the golden egg. It altered the uni- ism. The first two policies discour- versally accepted system of divid- aged both foreign and native in- ing the profits of the petroleum in-- vestors, and trouble accompanied dustry from a 50-50 basis to a new the social welfare measures when proportion of about 70 per cent the government offered work to for the state and about 30 per cent anyone who wanted it, at mini- for the companies. As a result, the mum daily wages. This caused average return on invested capital hundreds of thousands of persons in the petroleum industry has de- to leave their work in the fields, clined sharply and the number of thereby crippling the agriculture crew-months of drilling for oil has ===== PAGE 39 ===== 1961 ALLIANCE FOR PROGRESS — OR SOCIALISM? 37 dropped from 240 in 1956 to 144 in rate), and the nation today is 1960. Both are logical concomi- bankrupt (with $150 million in tants of too heavy a tax burden. foreign debts). “All that has kept Mr. Pereira says that rent con- the country going through its rev- trols crippled the construction in- olution,” observed U.S. News & dustry by discouraging investment World Report, “has been a steady and stifling incentives, and that treatment of U.S. aid, adminis- the increase in import duties on tered in timely doses.” so-called luxuries has had the effect of reducing the revenue col- The Will To Rise lected on imports (a decrease of Without the will of individual almost 200 million bolivares per nations to increase their own year in revenue) and increasing standard of living, no alliances or smuggling. large-scale programs can possibly oo » succeed. The only way a country Inflation in Bolivia can develop its economy is through In Bolivia, which eight years the formation of capital — which ago was taken over by revolution- depends primarily on domestic ists, the picture is equally discour- saving and investment. Tax-raised aging. Labor leaders have been funds invested in backward lands running the country into bank- are almost invariably misused. Dr, ruptey in an all-out attempt to Norman Bailey, Columbia Uni- create a socialist state. When they versity economist, wrote an excel- took control, the labor bosses im- lent article in the Columbia Uni- mediately provided bonuses, wersity Forum not long ago, in granted large raises, allowed which he said, “The bureaucracies workers to halt production with- of the underdeveloped countries out penalty, granted 16 months’ are inefficient always, and corrupt pay for a year’s work in some in- usually . . . and all the best will dustries, guaranteed overtime pay and good wishes in the world will whether workers actually worked not alterthat fact.” They look upon overtime or not, and passed work those loans and grants as substi- laws making it impossible to fire tutes for internal effort and initia- incompetent or unwanted workers. tive, and in that way our aid harms And with the inevitable result rather than helps. that productivity has fallen The most helpful and most last- sharply (about 55 per cent), infla- ing outside investment comes from tion has reduced purchasing power private foreign capital, Dr. Bailey (to about one-sixtieth its former said, which stimulates the econ- ===== PAGE 40 ===== 38 THE FREEMAN December omy without offering the dangers fare, and at the same time rapid of public aid. Because it is in- industrial development. It cannot vested for purposes of making a be done now any more than it was profit, it generates its own capital. ever done in the past.” Much of this capital stays in the For Latin America to raise its underdeveloped country in the living standard, it must choose be- form of taxes, royalties, and rein- tween the collectivist policies of vestments, and most of the re- regimentation, and the framework mainder eventually returns in the of political and economic freedom form of better methods, lower and a healthy climate that favors costs, and greater efficiency. foreign private investment. The only things that can remove disease, poverty, and illiteracy It is true that this is a prescrip- from Latin America, as well as tion for economic development, not from the Congo and all other eco- “social justice.” Yet it is a curious nomically backward nations, are fact, as Dr. Bailey has observed, work and profit. “But the under- that those countries which today developed countries want the best have the highest degree of effec- of both worlds,” Dr. Bailey says. tive social justice are precisely “They want to have high wages those which in the past have fol- and costly programs of social wel- lowed that prescription. ® NO FATHER could long play Santa continually to spend billions of Claus for children in other parts tax dollars abroad and at the of town and Old Scrooge at home. same time vote for austere econ- Neither can congressmen vote omy at home. The Honorable Mr. Buffett is a former Con- The Congress is vested by the gressman from Nebraska. This article is con- (Constitution with the power to densed from his testimony, as a member of the Citizens Foreign Aid Committee, before regulate the value of our money. the House Appropriations Subcommittee on As 1 « n . Foreign Operations, August 19, 1961. 8 long as foreign aid continues, ===== PAGE 41 ===== 1961 LEGAL FEDERAL EMBEZZLEMENT 39 Congress is constrained to regu- These groups, and all conscien- late the value of our money down- tious citizens, are urged to ponder ward under the policy of deficit the effect on the morals and mo- spending that has been in effect, rale of the American people after with some short interruptions, 16 years of foreign aid and the since 1933. hog-trough behavior it engenders Among the pressure groups to in domestic spending. continue foreign aid are: Since 1939 the purchasing 1. Debtors, whose original obliga- value of the savings of the thrifty tions, contracted in dollars of Americans then invested in gov- higher purchasing power, be- ernment bonds, building and loan come smaller as the value of shares, pensions, annuities, and the dollar goes down. life insurance have been cut in 2. Promoters, speculators, busi- half, and then some, nessmen, and officials who un- derstand the workings of in- When Congress appropriates flation and stand to profit money for foreign aid and domes- from the further deficit spend- tic deficit spending without fully ing that goes with foreign aid. informing the American people of 3. Union bosses who have ex- the inevitable dollar dilution ac- ploited inflation to entrench companying such action, the only and expand their power. accurate label for it is “legal fed- 4. People who sincerely believe eral embezzlement.” The fact that that foreign aid brings per- other branches of our govern- manent political strength to ment, plus foreign governments other lands and that America and private groups, have pres- has — or soon will possess — the sured Congress to take the actions intellectual, moral, political, that diminish the dollar’s value is and economic capacity to do it no defense. The final responsi- successfully. bility is on Congress alone. IDEAS ON LIBERTY Inflation “T0o0 MANY DOLLARS chasing too few goods” as an explanation of inflation overlooks the dominant part played by snowballing gov- ernment spending. Today’s inflationary buildup might be ex- plained as “too many dollars chasing too many votes.” J. KESNER KAHN ===== PAGE 42 ===== : Mindraps” | read } W. E. SPRAGUE “Like a stairway leading to a gal- An exaggeration? Perhaps, but lows, there are thirteen perilous remember that opening para- steps that often lead a man to graph; we will return to it. Socialism. And like the sprung There are thirteen devices, in- trap, the fatal fourteenth step, cluding the one above, commonly Socialism seals his fate.” used by the utopian planners and, } i . in a sense, they are indeed “steps.” } This — despite the “reverse Eng- They do not follow one another in lish” —is a splendid example of a 45y special order, nor do they have basic device commonly used by So- , mounting, cumulative effect cialists themselves in a subtle sort (though they may at times) ; still of verbal “sleight of hand” to win they are “steps” in the sense that converts to the Welfare State or {pov are designed to lead you and the Planned Economy or whatever nq nto what can rightly be called idea they are advancing as the a “mindtrap.’ They are steps grand solution to all mankind's {,ward a dark world of anguish, problems. But, as the “reverse ho anguish of confusion, and English” indicates, it is a game away from a bright world of rea- you, too, can play. It is, in fact, son. a game we had all better learn to These thirteen basic devices, play because it is a deadly game however, were not invented by So- in which our personal freedom is cialism, nor are they strictly so- at stake. cialistic property. They are, in Mr. Sprague is a free-lance writer with a fact, as old as Plato, Aristotle, and background of some fifteen years in sales, those “Madison Avenue boys” of credit, and insurance. He now specializes in . . what he terms “the practical application of ancient Greece, the Sophists. They history, logic, and language studies to daily living.” are perhaps even older. They work 40 ===== PAGE 43 ===== 1961 DANGER: ‘“MINDTRAPS’” AHEAD 41 on a simple principle that has been may very well be, but don’t be de- known to every tyrant, despot, and ceived! They are also deadly little dictator since the time of Alex- tricks that play on certain weak- ander and before — the principle nesses we all possess. They are that: no man can think clearly if subtle little “terror tactics” that he is frightened, angry, or in any really have little to do with logic, other way emotionally over-stimu- as we usually think of that word, lated. New or not, these thirteen and have a lot to do with striking devices are as effective today, be- at our fears and, through our cause of that principle, as they fears, arousing our hatreds or feed- have been throughout history. In ing the flame of anger. Remember the hands of a skilled socialist re- — no man can think clearly, indeed cruiter, these devices can and do at all, if he is emotionally over- trap thousands of us who are “sit- stimulated. Rather than “logical ting ducks” because we are un- fallacies,” perhaps they should be familiar with this sort of verbal called “emotional irritants,” since legerdemain. they relate to logic, it may be said, Once you have become familiar only in that they attempt to short- with them, however, once you have circuit your power of reason. learned to spot their use, you be- come free of them to a consider- Appeal to the People able degree — providing you re- —Ad Populum main aware of them. To free your- Consider these phrases — self altogether, though, requires phrases we have all heard many more than constant vigilance, more times over: than the ability to merely “peg” “Which is more important — big these devices when you encounter business or the little fellow?” them. What that “something more” “Price controls protect the work- is, we will explore very shortly. ing man.” “Why not have federal But first — what are these devices, aid? It’s our tax money, isn’t it?” these “steps” to Socialism? And A philosopher or logician would how do they work? probably call these examples of The collective name by which argumentum ad populum, one of they are known sounds innocent the logical fallacies. The impres- enough. They are called “logical sive Latin name means ‘“argu- fallacies.” Their name is mislead- ment appealing to the people.” The ing, however; it makes them important thing is the way it ap- sound like the toys of philosophers peals to the people. Each of the and formal logicians. This they three phrases contains certain key ===== PAGE 44 ===== 42 THE FREEMAN December words which evoke in us an image completely obscured — no mention — a word picture — to which all of is made of what these words really us tend to respond. By contrasting mean in the objective world the words “big” and “little,” the around us, or even what the speaker creates a picture of a speaker intends them to mean. gruesome sort of Goliath, labeled What, for example, is really meant “big business,” about to strike out (if anything) by “big business”? at courageous but tiny David Which “big business”? What com- called “the little fellow,” with panies or corporations and when? whom anyone familiar with that What “little fellow” and how is Bible story will automatically he less important? ‘Price con- identify. And even if one had trols” when and on what and for never heard of David versus how long? And how do they “pro- Goliath, the key words still tend tect”? Or do they? Is it truly “our to excite the common American tax money”? How much of it did sentiment for the underdog. In the you pay? Or me? Isn’t tax money second phrase, the key words are more of a common trust that in “working man” and “protect.” reality “belongs” to no one? Or Again, most people working for is it? wages will almost automatically The point is, you see, that the identify with “working man,” and answers to these questions are the the. implied threat in the word facts of the issue, but ad populum, “protect” (after all, we need pro- like the other fallacies, dare not tection only if “someone is out to be concerned with facts. Instead, get us’) instantly stirs our fears. facts are obviated by “image In the third example, the key word words” so generalized they have with which we will tend to identify practically no meaning. If you is “ours”; if the tax money is in- coded these words and fed them deed “ours,” we certainly have a to a computer, the computer would a right to it then! reject them or else answer them Ad populum — the appeal to the with equally meaningless phrases. people — is quite typical of all Or if you presented these three thirteen devices, all thirteen phrases to a formal logician for “steps.” It is structured with key analysis, he would be powerless words that invite us to identify to act until you also gave him the with an image that is somehow answers to the questions, until you (within the scope of that image) gave him facts. Logically, then, threatened. Thus the facts are these thirteen ‘‘steps” are unten- ignored, snubbed, trampled, or able but, emotionally, they are ===== PAGE 45 ===== 1961 DANGER: “MINDTRAPS’’ AHEAD 43 potent. They hit you —to coin a By now you are perhaps begin- phrase — “right where you live.” ning to see that all of these de- Their aim is to make you defen- vices, these “mindtraps’” have cer- sive, to make you feel “picked on,” tain things in common: they aim and thus forget the facts. After at obscuring the facts by creating all, how can you be bothered by images with which you will iden- facts when some bully is about to tify, first, then react to emotion- “clobber” you? ally. It seems so simple one won- ders that they work at all. But they work, and work astoundingly In case you can’t be scared into well! Why ? Because our emotional forgetting the facts, there is an- petwork, as any psychologist will other fallacy so closely related to tell you (and I will leave the fine ad populum it is considered by points to him), is made up of a some to be merely a twist. Its collection of more or less standard- Latin name means “an appeal to jzed and generalized images that the heart,” and it aims to coax we have all acquired simply by the you, if you won't be frightened, process of being born, living, and into ignoring the facts by arous- growing up. This emotional net- ing your sympathy. “Peace and work, incidentally, with its collec- harmony and cooperation,” it tion of images, is quite necessary might say, “are Man’s destiny — to survival; we would never have not competition.” Who among us the time to reason out the billions does not respond to the image of of decisions of a minor note that Eden, especially since we were we encounter in daily living. But brought up on it? What culture in only careful, rational thinking can what age has not had its ideal of carry us through the vast com- a Paradise or an Elysian Field? plexity that is our economy and Who can resist the picture of a oyr pation. And it is here that sunny, green world living in idyllic these “steps” to Socialism would “peace and harmony and coopera- have us forget facts and struggle tion”? But what kind of “peace through on emotional response to and harmony”? What kind of images, to “word pictures.” “cooperation” ? The kind known to What, then, are the remaining the shepherd’s unthinking charges, eleven logical fallacies? It might or the kind achieved by the volun- do to mention at this point that, tary association of free individu- viewed strictly as logical fallacies, als who have made their decision as toys of the logicians, there are on facts? many more than thirteen. A com- Appeal to the Heart ===== PAGE 46 ===== 44 THE FREEMAN December plete listing and classification can hence, we have a sort of “half- be found in textbooks on logic or brother” to mon sequitur, some- in any standard encyclopedia. We times called “false cause.” Its are concerned here, though, as Latin name — post hoc, ergo prop- stated earlier, with the ones most ter hoc (a mouthful even for the commonly used by the planners of old Romans) — translates: “after Utopia in their battle against this, therefore because of this.” ideas of free market, private prop- An example? How about — “Free erty, individual enterprise, and enterprise collapsed and that’s why the many other aspects of a free we had the Depression.” In this philosophy. Restricted so, there statement, the speaker is commit- are then eleven remaining falla- ting a dual fallacy. First he is cies. equating “free enterprise” with all the conditions in both indus- Non Sequitur try and government that existed ~It Does Not Follow prior to the Depression; then he “Without compulsory govern- is ignoring a host of external ment health programs, thousands (that is to say, international) fac- upon thousands of people will tors that may have very well con- suffer for want of proper medical tributed to the Depression; for care!” Sound familiar? Of course these, taken all together, were the it does. This current battle cry major determinants. Yet in his of Socialism is essentially the flippant use of the term “free en- fallacy of mon sequitur —trans- terprise,” he intends you to react lated: “it does not follow.” Put to the image of business and in- simply, it means there is no logical dustry, symbolized by the 1929 connection between “thousands of crash, as being the sole factor. suffering people” and the absence of a program of socialized medi- Over-Generalization cine, but there certainly is an emo- This same example also falls, tional connection once you are at least partly, under the heading tricked into placing yourself in the of another of the commonly used image of those “thousands upon fallacies, secundum quid. In a thousands.” Stay out of the image word, it means “over-generaliz- and ask for the facts. ing.” It works in a variety of ways. In the case of “collapsing” False Cause free enterprise “causing” the De- In some ways, all of these pression, all factors — contributing “mindtraps” touch and overlap; or not, extraneous or not -— are ===== PAGE 47 ===== 1961 DANGER: “MINDTRAPS’’ AHEAD 45 lumped under one very broad gen- Name Calling eral heading, ‘free enterprise.” Tu quoque, in Latin, means Another method of over-generaliz- “thou also”; in everyday Ameri- ing is what might be called build- can it means: “Oh yeah! Well, ing “straw men” or “paper drag- you're one, too!” The fallacy of ons.” The idea is to take a hand- {u quoque is nearly pure name- ful of superficial characteristics calling. Venture to suggest that and build an image to represent complex, bureaucratic government each individual in a certain class is a burden on taxpayers and tends or group. Thus the Socialist is to destroy profit motive for both fond of depicting the “capitalist” business and the wage earner, and as a bloated, walking money-bag, you might hear this: “How about preying on “the common people.” the greedy profiteers of capital- Absurd? Of course, but the image ism? Look what they do to initia- would not persist if it were not tive!” Aside from the fact that effective. greed is no more intense or evenly distributed among “capitalists” Give ‘em a Foot and (whoever they really are), than They'll Take a Mile among Hottentots, the trick here Another “mindtrap,” this one is a quick counterattack, again closely related to secundum quid, with “image words,” to trap you and indeed another form of over- into defending something entirely generalizing, is sometimes called foreign to the issue being dis- the “entering wedge” argument cussed — thus saving your antago- or sometimes referred to as “give- nist the job of defending elaborate ‘em-a-foot-and-they’ll-take-a-mile’’ government. reasoning. A good example is still bounding about the current scene: Authorities and Statistics “If you allow automation in in- “Jefferson once said. .. .” Or dustry, you'll soon have thirty mil- “our figures prove. . ..” Familiar? lion unemployed!” Again, this is Indeed so, and they are familiar a “David and Goliath” image, in- to logicians as argumentum ad viting you to identify with thirty wverecundiam, another ‘“two-in-one” million unemployed ‘‘Davids.” fallacy. Some logicians, in fact, Well, automation is more and more consider these statements as sepa- on the scene and our economy rate fallacies. In the vernacular, seems to be adjusting nicely. But “Jefferson once said. . . .” might that is unimportant to the be called “appealing to the wise speaker; it’s merely a fact. man,” while “our figures prove” ===== PAGE 48 ===== 46 THE FREEMAN December stands apart as a separate fallacy. man. In close alliance with ad Consequently, it can be said that hominem is its variation known we have here a “double step” to as “poisoning the well.” Examples Socialism. of these two abound in every area In either case, quoting a famous of human endeavor, but perhaps person (living or not) or quoting the favorite of Socialism occurs figures, verecundiam means ‘“ap- when a proponent of limited gov- peal to authority.” This is a par- ernment is brash enough to sug- ticularly effective device for uto- gest that there may still be some pians, since we have all been merit in referring occasionally to reared to respect authority and some of the original premises of most of us to stand in awe of large liberty as variously stated by the numbers. What Jefferson or any framers of our Constitution. one else said about a particular “You'd still have us wear silk topic, or what statistics allegedly breeches and powdered wigs,” show about it is really not the they shout. Or let any man criti- point — though that is what we cize wasteful government spend- are urged to believe. The point is ing, and he may be assailed as a the validity of the topic judged “tight-fisted, inhuman Scrooge,” on current, reliable facts. And, or worse. The basic idea, the aim since any competent mathemati- of ad. hominem is to attack the cian can show you several ways to man, not the issue, especially if “lie” with numbers, figures in the issue cannot be logically de- themselves are not necessarily cur- fended at all. “Poisoning the well” rent or reliable or factual. Did is essentially the same tactic used Jefferson, or whoever else is against groups, political or racial quoted, have firsthand knowledge or religious, and sources of ideas of the facts relating to the topic? such as books, documents, or pub- Is the topic within his field of lications. special knowledge? Who compiled These two fallacies are espe- the statistics, and how? Are there cially vile in that, to their users, any cross references on them? there are “no holds barred”; at- tack on any grounds, including, if Destroy the Man or Source necessary, the deliberate assassi- Perhaps the most popular, and nation of reputations by out and certainly the most vicious, of these out lies. In fact, the closer you “mindtraps” is argumentum ad come to the truth in your presen- hominem — the argument that at- tation or criticism, the greater tacks not the issue but rather the risk you run, usually, since you ===== PAGE 49 ===== 1961 DANGER: ““MINDTRAPS”’ AHEAD 47 then represent a hazard that must analogy is false; a locomotive is be removed at all costs. not a horse. Modern day physics would be The False Analogy— lost without the analogy, though All Analogies Are False here whole sets of analogies are We come now to the most considered and called by various troublesome “mindtrap,” the slick- names such as “constructs” or est “step” to Socialism that we “abstractions.” Nonetheless, they shall examine. It is, in many ways, are analogies in that terms like the most difficult to deal with, ow- “electron” or “neutron” or “chain ing to a peculiar duality of its na- reaction” are essentially descrip- ture. It is at once both “true” and tive terms for things and events “false,” which is to say that, while no one has ever actually seen; still it will always contain certain seeds the terms are useful and vital, or elements of truth, it is always since they reduce the processes of false; yet it is an absolutely in- matter to a comprehensive level dispensable tool in the process of by acting as working models of learning — anything. It is the a- these processes. nalogy. Stated simply, an analogy But analogies, no matter how is a device for explaining one useful, no matter how closely they thing in terms of another. A resemble that to which they are classic example can be found in the compared, are always “like” some- lore of the Old West. thing — but they are not identical When the transcontinental rail- to that thing. Hence, in this sense, road pushed its way across our they are always false. The test of nation, the American Indian got the usefulness or reliability of an his first (and probably frighten- analogy lies in asking yourself, ing) look at a locomotive. We are “How close is the resemblance? all familiar with his name for it, Does this specific analogy really the Iron Horse. The term was an fit? What are the similarities and abbreviated analogy; the Indian what are the differences in this had long been familiar with the particular comparison?” Above all white man’s metal, iron, and with else, we must remember that an the horse, He explained the loco- analogy is always a comparison, motive to himself, then, in these not a proof. When we view it as a terms which he knew and under- proof (or advance it as one), we stood — the strange machine was commit the “logical fallacy,” the iron and it carried things and “mindtrap” of what logicians call people as did his horse. Still, the the “false analogy.” ===== PAGE 50 ===== 48 THE FREEMAN December Consider the following: than play this game, however; “Like a stairway leading to a deadly as it is, we need to avoid gallows, there are thirteen peril- playing it. Rather, do we need ous steps that often lead a man to effectively to combat its effects. In capitalism. And like the sprung times past, asin the present, whole trap, the fatal fourteenth step, nations and cultures have suc- capitalism seals his fate.” Yes — cumbed to those effects. our opening paragraph rephrased “Today Germany! Tomorrow as the utopian planner often uses the world!” —one of history’s it. Phrased either way it is a greatest non sequiturs. false analogy, for the comparison “For the good of the people!” between a gallows and any ideol- — a tired, clichéd ad populum; yet ogy is a farfetched one; yet the how many nations have been cap- image it evokes is a powerful one, tured by this one alone? an image calculated to steer your mind completely away from the Appeal to Fear facts. Don’t be steered; the major The last of the “mindtraps” is factor in comparing two ideologies argumentum ad baculum, the “ap- or philosophies is simple: they can peal to fear.” In its most crude be compared only to each other form, it is nothing more than a and done so with a cold, objective threat; a club, as it were, held eye. over our heads; a statement of The false analogy of the gallows, “.. . or else!” We rarely encoun- however, illustrates my major ter it in this form, though, until point in all of this, a point I cited its users stand on the very thresh- earlier. By a simple switching of old of their goal. But how about terms, by “reverse English,” any something like this: “Where do one of these thirteen common de- you stand? With big business or vices, used so much these days by with the people? You're either the advocates of government con- with us —or against us!” That trol, government aid, and govern- ‘against us” is simply a thinly ment intervention, can just as veiled threat. In a sense, ad bacu- easily be used against them —if lum is an element inherent in one cares to play at such games. nearly all the arguments of the For a game is, as I have said, ex- Omnipotent State faction, since actly what it is: a game that peo- the arguments, as we have noted, ple of all kinds have been playing aim at arousing the emotion of perhaps since the birth of the fear above all other emotions — human race. We need to do more fear of big business, of poverty, ===== PAGE 51 ===== 1961 DANGER: ‘“MINDTRAPS’’ AHEAD 49 of unemployment, of exploitation, — “Jefferson once said .. ..” of . .. you name it! Yet fear is Oh? Was he there? Did he see dispelled by knowledge and by it? specific truths. Herein lies the 9. Argumentum ad verecundiam most effective means of combating (second variety) — “Our fig- the “mindtraps” and freeing our- ures prove. . . .”” How reliable selves from their effects alto- are “our figures”? gether. 10. Argumentum ad hominem — “Attack the man, not the is- The Steps Reviewed sue.” But the issue is what is And so we have the thirteen important. “steps,” the thirteen devices used 11. Poisoning the well—the source in the socialists’ game. Remember of the idea is not important; them well: the idea is! 1. Argumentum ad populum — 12. False analogy —all analogies the appeal to the people, the are false, so consider the dif- “little fellow.” ferences as well as the similari- 2. The appeal to the heart — ties. “peace and harmony,” the 13. Argumentum ad baculum — image of Eden. “believe or else!” 3. Non sequitur —it does not We must learn this game at follow, even if someone says it least to the extent of recognizing does. Check it yourself. those arguments that appeal not 4. Post hoc, ergo propter hoc — to our reason but to our unreason- the “false cause.” able fears. When next you meet 5. Secundum quid — over-general- an argument that evokes an im- izing. age and excites fear, check it 6. The entering wedge — “Give with questions — “Who said so? ’em a foot and they'll take a And how does he know? What are mile” — but only if someone the facts, the specific facts?” gives ’em the mile, too. Facts, not dialectics, are the 7. Tu quoque — “You’re one, too!” best weapons. Truth, not emotion, 8. Argumentum ad verecundiam will keep us free, @® IDEAS ON LIBERTY Montesquieu COUNTRIES are well cultivated, not as they are fertile but as they are free. ===== PAGE 52 ===== <= — phrases probably stir your sense of justice considerably. Rare is LOOK the American who has no strong ideas about justice, and who BEHIND wouldn’t applaud and assist ef- forts to do something about hu- THE man misery, wherever it might ex- ist. Hence, words and phrases like “exploitation,” ‘conspicuous con- sumption,” and “ruling classes” often appear in learned essays and editorials discussing the world’s problems. One could easily get the impres- sion that those who use these terms are concerned and that per- haps some genuine efforts would be made toward solving the world’s problems. Sadly, however, this is not true— for the words and phrases are in reality the slogans of Communism —and many of those who use them are concerned only with “exploiting” our human tendencies to be outraged by in- justice. Like “front” organizations ostensibly in operation to deal with some item of “social justice,” but actually in business to further the ends of an incredible conspiracy, these words are “front” words, used as barbed tools to prick the conscience of well-meaning people. It's an old technique. Take that matter of “conspicuous consump- tion,” for example. Back in the first century, an uncommonly Mr. Barger is Editor of The Flying A, com- gifted young rabbi named Jesus pany magazine of the Aeroquip - Corporation . Ls . at Jackson, Michigan. of Nazareth was just finishing his “FRONT” MELVIN D. BARGER How DO YOU FEEL about “conspicu- ous consumption”? Do you think it wrong for a person to use goods or services lavishly when others are in want? And how about “ex- ploitation’”? Do you burn with in- dignation over the plight of op- pressed peasants in underdevel- oped nations — serfs who get but a few cents a day while the “ruling classes” loll unmindfully in lux- ury? And that name “ruling classes” itself — doesn’t it evoke a picture of a clique of smug, arro- gant aristocrats perched indiffer- ently upon the groaning backs of masses of suffering people? If you have even an ounce of human decency, these words and 50 ===== PAGE 53 ===== 1961 LOOK BEHIND THE “FRONT’’ WORDS 51 earthly ministry. For two or three strings of men’s hearts. In the years he had blazed forth with above situation, we probably pass numerous solutions to the prob- judgment on Judas only because lems which beset the world; now, of what else we know about the in less than a week, his enemies man. Otherwise, we would be in- were to place him on a cross. But clined to say that he had a point for a few minutes he paused in — and at the time it may have the village of Bethany, outside seemed so to some of the disciples Jerusalem, where his friends Mary — since Judas’ treason was as yet and Martha prepared him a sup- unrevealed. per. And it was here that one of his The Cold War disciples — Judas Iscariot — point- Now, let us jump quickly back ed indignantly to an example of to the twentieth century — (for “conspicuous consumption”: one of the dogmas of socialist Then took Mary a pound of writers is that those who disagree ointment of spikenard, very costly, with them are suffering from an and annointed the feet of Jesus, and unfortunate chronological lag). A wiped his feet with her hair: and struggle is in process between the the house was filled with the odour West and the communist world of the ointment. for the allegiance of the “emerg- Then saith one of his disciples, Judas Iscariot, Simon’s son, which should betray him, “Why was not this ointment sold for three hundred pence, and given ing” and “underdeveloped” na- tions. It is a chaotic situation. Despite what it does, or refrains from doing, the United States is to the poor?” systematically smeared as a “rich, This he said, not that he cared capitalistic, imperialistic nation.” for the poor; but because he was a We have been accused of indulging thief, and had the bag, and bare in “conspicuous consumption” even what was put therein. in the face of world-wide condi- JOHN 12: 3-6 tions of starvation and disease. The lesson in this story, com- Sometimes it’s hard to remem- ing to us across a bridge more ber that the very people who are than nineteen centuries long, is making these accusations — like that not everybody who professes Judas — care nothing for the poor to have an interest in the poor is whose cause they profess to es- a humanitarian. He may be a hyp- pouse. It is especially hard to re- ocrite who knows that the right member this when some of our kind of catechism will pull the own representatives take unto ===== PAGE 54 ===== 52 THE FREEMAN December themselves the very jargon so skill- pricious metaphor, seen in the fully employed by the Commu- light of its historic meaning. nists. There does not exist any ‘agrar- An editorial entitled “Innocents ian reform’ in the sense of laws Abroad” in the July 19 edition of to create more initiative in rural the Wall Street Journal bears this economy. . . In this part of Amer- out. The Journal, in commenting ica, this today is exclusively a on Ambassador Adlai Stevenson’s subject of Castro subversion. And recent tour of Latin America, it does not have any sense but pointed out that La Prensa of that of the violent taking away Buenos Aires, one of Latin Amer- of the property of landowners. ica’s leading newspapers, had “And regards the term ‘revolu- scolded Mr. Stevenson for some of tion, it serves those north of us his well-intended phrases. to designate such peaceful and Said La Prensa, via the Jour- healthy phenomena as the indus- nal : trial revolution or the marvelous “Present United States policies technical innovations. In our con- with respect to Latin America are fused (South) America it means, inspired by an attempt to set apart from taking recourse to limits to communist penetration, force and in a doctrinal sense, whose instrument today is the only one thing: The catastrophic Cuban regime. . . However, those overthrow of the existing social in power in that country at times order and the dictatorship of the use a language which defeats their proletarian masters. own purpose. “By using such terms indiscrim- “In a desire to display a full un- inately, and without analyzing the derstanding of ideas, they talk — concepts they convey, certain as did Mr. Stevenson —of ‘ter- United States politicians and peri- ritorial feudalism,” of ‘indeter- odicals unwittingly contribute to minate agrarian reform,’ of ‘revo- the nourishing of magic slogans lution,” plainly and simply. They which are beneficial only to the are unaware of the explosive force Soviet imperialistic designs.” which these phrases carry in our In saner times, there would be surroundings. They are unaware nothing wrong with these words that they are the chosen slogans and phrases. The man on the of the Communists and their al- street — be he a citizen of Chicago lies, who joyfully welcome such or Havana or Calcutta — will never unexpected imperialist assistance. really be very elated over the fact “The term ‘feudalism’ is a ca- that in some countries a few fami- ===== PAGE 55 ===== 1961 LOOK BEHIND THE “FRONT’’ WORDS 53 lies control much of the wealth. gain nothing at all in the long He certainly won’t strongly op- run. pose the idea of “agrarian reform,” Exploitation — This word is di- or a “redistribution of the rectly from Marx; yet many who wealth.” Only when he has seen the repudiate Marxism still use it. real motives of those who advocate It’s a loaded word, and evokes a these things will he be in strong picture of selfish interests abus- opposition. Yet, long before this ing workers or underprivileged happens, his apprehension or persons, and making enormous doubts may have been neutralized profits at their expense. by strong propagandists who Those who use the word con- pointed out that the “reformers” tend that all workers who are were just bringing “social justice” employed by private business are to countries that had long needed being exploited. The Detroit brick- it. layer, earning $9,000 a year and } driving the latest model car, is Deadly Motives being “exploited” by his contrac- The point that can never be tor boss, though in truth the lat- emphasized too strongly is that ter may have operated at a loss these terms are “front” words, for the year. Used in that sense, camouflaging the deadliest of mo- of course, the term is silly. But it tives. They serve as euphemisms is important to remember that the for processes that entail murder, term is rarely used by anybody tyranny, theft, and fraud. Here who is in earnest about getting are some of the real meanings: to the bottom of “exploitation” Agrarian Reform — Ostensibly, and doing something about it! this means breaking up large es- Few of us have ever recognized tates traditionally owned by dy- that workers can also “exploit” nastic families, The land is then the boss! to be parceled out to the deserving Vested Interests —In commu- peasants, who live happily ever nist language, the “vested inter- after. ests” are any private owners and Actually, the previous owners their hand-picked government of- of the land are murdered or im- ficials in free enterprise countries. prisoned. Though the land may be The presumption is that these in- parceled out in a cynical token at- terests are always selfish, reac- tempt at “agrarian reform,” the tionary, and dishonest. The “ves- deserving peasants never gain ted interest” resists any changes rights of ownership, and probably in the status quo, because these ===== PAGE 56 ===== 54 THE FREEMAN December changes may mean loss of property To the Communists, it means to the traditional owners. the overthrow of private owner- In practice, the private owners ship and the liquidation of the in free enterprise countries are present managerial classes. ‘“So- constantly upsetting the status cial justice,” in practice, means to quo, and deliberately making ob- them exactly the opposite of what solete their own products and it means to us! plants. Change is welcomed rather As the Wall Street Journal said than resisted. In fact, natural in commenting on Mr. Steven- processes swiftly eliminate the son’s phrases, there’s more to com- concern that is not continuously munications than a Babel of seeking opportunities for better- tongues! And it's not simply a ment. In contrast, the “vested in- question of “semantics,” either. terests” in communist countries The pre-emption of certain words are the true reactionaries, for by for devious purposes — and their their government monopolies they corruption — has been deliberately have thus far been avoiding the planned and executed with cynical necessity for change. cunning. Social Justice — Here’s a “front” It’s no little task to deal with expression that is almost irresist- this sort of thing. For sound ad- ible. There’s about as much chance vice as to the frame of mind that that you’ll oppose “social justice” work’s best, we might refer again as there is that you’ll step over to to the first century, back to the the nearest orphanage and chloro- uncommonly gifted young teacher form babies. Yet “social justice” accused of “conspicuous consump- means one thing to the Commu- tion” that day in Bethany. nists, and means something quite “Beware of false prophets,” he different to people in the Western sald, “which come to you in sheep’s world. “Social justice,” to us, clothing, but inwardly they are means a fulfillment of our Con- ravening wolves. stitutional rights, particularly those guaranteed by the first ten amendments — the Bill of Rights. It also involves charitable works, decent treatment of one’s fellow “Even so every good tree bringeth man, and the observance of orderly forth good fruit; but a corrupt tree legal procedures in settling dis- bringeth forth evil fruit.” putes. MATTHEW 7: 15-17 @ “Ye shall know them by their fruits. Do men gather grapes of thorns, or figs of thistles? ===== PAGE 57 ===== A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN PROSPERITY through FREEDOM AUTOBIOGRAPHY is in order. I first cation. He became a trustee of met Lawrence Fertig at a tennis New York University. And he club in Bermuda, some time in the started a column on economics for middle nineteen thirties. I didn't the New York World-Telegram have the ghost of an idea what his and other papers in the Scripps- economic philosophy was, but it Howard chain. was obvious that here was a man The column, which appears once who wanted to direct his own life. a week, is rigorously argued, He wanted, for one thing, to have pungently written, and incredibly freedom to play tennis, come sum- well-informed. It is also fearless mer, come winter. Shortly I dis- in the way it sails into popular covered that he ran his own busi- prejudices. Maybe Mr. Fertig ness — and made it profitable — so learned his polemical tactics on that he could play when he wanted the tennis court; at any rate, to play. when it comes to polemical jour- It wasn’t until some time later nalism, he plays a forcing game that I learned that Mr. Fertig's that is always under cool control. passion for self-direction had other All of Mr. Fertig’s qualities are outlets, such as studying for his present in his first book, Pros- Ph.D. in economics at New York operity Through Freedom (Reg- University. He liked to discuss the nery, $3.95). The volume is jour- economics and philosophy of free- nalistic in that it deals with a dom. But, unlike most people, he wide range of running problems. had ideas about making his dis- But, unlike most journalists, Mr. cussion effective. Having built up Fertig is far more concerned with a business, he intended to use basic principles than he is with some of his time, energy, and merely presenting the news with money to help shape education in a little innocuous “perspective” on the United States. He began tak- the side. Great names — Locke, ing a hand in the operations of Lord Acton, Adam Smith — come the Foundation for Economic Edu- to life in his columns as active 55 ===== PAGE 58 ===== 56 THE FREEMAN December opponents of such things as def- veloped the art of verbal impreci- icit spending, or price control, sion to an extraordinary degree. or industry-wide bargaining. One Mr. Fertig hates semantic ob- has a sense of the continuity of fuscation — and goes after it like sound thinking throughout the a tiger in every chapter of his ages in Mr. Fertig’s writing as book. : well as a sense of what is going There is the verbal imprecision on, say, in the sanctum of Chair- in the common use of the word man Martin of the Federal Re- welfare, for example. Why, asks serve Bank. Mr. Fertig, is it only “welfare” As a follower of Ludwig von when the state does it? Isn't it Mises in particular, Mr. Fertig “welfare” also when private in- knows that economics is motivated vestment provides $14,000 worth by choice, which is never wholly of tools per worker in industry? predictable. The sense of man Isn't it “welfare” when a good choosing saves Mr. Fertig from private school gives a boy a good making a fetish of statistics, education? Isn’t the Union Pa- which, however much they may cific Railroad’s operation at Sun tell you about the past, are merely Valley, Idaho, where the accom- tentative indicators of the future. modations are both excellent and More to the point in Mr. Fertig’s cheap, just as much “welfare” as economic science is his knowledge the U. S. government’s operation of man as a moral being. Eco- at Yellowstone Park? Isn’t it “wel- nomics, to him, is something to fare” to offer a customer a better be deduced from the broad princi- car, a better refrigerator? Mr. ples of human nature. When men Fertig wants to know. make certain choices, the con- Then there is the tissue of im- sequences are generally predict- precisions clustering around the able no matter what the immedi- notion of the Gross National Prod- ately available statistical evidence uct, or GNP. When three-fourths may or may not say. of the dollar in a year’s increase in the GNP is accounted for by a rise in prices, of what value is What troubles Mr. Fertig above the GNP as a measure of “af- all is that modern man wants fluence”? Again, Mr. Fertig wants something for nothing. To kid to know. himself that such a violation of Since Mr. Fertig is a consis- the law of conservation of energy tent—i.e., an intellectually hon- is possible, modern man has de- est— man himself, inconsistency Verbal Imprecision ===== PAGE 59 ===== 1961 PROSPERITY THROUGH FREEDOM 57 in others bothers him. Though he a high individual wage in an ef- has no animus against big business ficient industry is quite compatible as such, he is perfectly willing to with a low unit cost of labor and say that certain officers of General a high dividend rate. It all de- Electric and Westinghouse were pends on what labor does in a entirely in the wrong when they given amount of time to earn its were party to price fixing agree- money. ments. Mr. Fertig doesn’t like Mr. Fertig is willing to grant price fixing, period. But he thinks that labor should get something it comes with very poor grace — though by no means everything when “liberals” who believe in -— from increases in man-machine such price fixing devices as rent productivity. But if Ricardo was control or agricultural crop sup- wrong at one point in his writing ports or minimum wage legisla- in implying that wages couldn’t tion turn around and assail GE rise without taking it out of prof- and Westinghouse with such fe- its, then the modern labor leader rocity for trying to get their is making the same type of mis- share of economic “stability.” take when he argues that high wages are a sine qua non of ef- Labor’s Inconsistency fective purchasing power. The The inconsistency —or the in- wage rate is not at all the same tellectual dishonesty — of certain thing as the wage total. The labor leaders is another target of truth is that when wages are Mr. Fertig’s controlled wrath. pushed beyond productivity, un- For several generations labor employment— and a consequent spokesmen have carried on a bit- decrease in total purchasing power ter war against the shade of David — may be the result. If labor is Ricardo. According to those who to persist in beating the shade of haven’t read him with proper al- Ricardo, it had better refrain from lowance for his footnoted material talking like Ricardo-in-reverse in or his afterthoughts, Ricardo held confusing one arithmetical thing that wages and profits are in mor- with another. tal conflict —i.e.,, you can’t raise Another piece of intellectual an employee's pay without taking dishonesty which angers Mr. Fer- it out of the stockholder’s divi- tig is the modern “liberal’s” dou- dends. ble standard when it comes to the Labor has always denounced this subject of law enforcement. When variant of “wage fund” thinking, a government servant takes a and has rightly pointed out that vicuna rug or a mink coat for his ===== PAGE 60 ===== 58 THE FREEMAN December wife, the modern “liberal” throws a tantrum. But when it comes to enforcing the law against feather- bedding, the “liberal” is usually of the Vital Issues silent. Despite the fact that the of Our Times! Taft-Hartley Act says that no Ng $x employer should be forced to “em- | gu ei ploy or agree to employ any per- son or persons in excess of the number reasonably required to perform actual service,” the pro- ducer of a Victor Borge one-man | §: %...pue® show (without props) was com- pelled to hire four idle musicians and eleven idle stagehands. It was “union rules” — which are evi- dently superior to the law of the land that is Taft-Hartley. If it is “reasonable” to charge a patron for non-listening to a musician who is non-playing a non-violin, then language has no more mean- ing—and Mr. Fertig might as well shut up shop with the rest of us. But Mr. Fertig is not one to 3 3 aul ora 1] admit the human race is lost, and highly respecied column "on eco- nomic IT the rest of us can take courage in the N.Y. Wold Telegram and from his stalwart insistence on other Scripps-Howard newspapers. consistency as a test of probity. * * * This review has only barely “PROSPERITY THROUGH scratched the surface of Mr. Fer- FREEDOM" Sentures 13 exciting tig’s compendious book. Practically Growth in A Free Society— Welfare . . and Education—Labor Unions in A every phase of the deleterious in- Free Society—The United States oni Faces the World—Inflation—How ioni tervent on st assault on the free Free Is Public Opinion In A Free economy is thoroughly canvassed Society?—Producing the Goods in : : ss a Free Society— Which Way ot in Mr. Fertig’s pages. This 18 a Life? — Capitalism, Socialism, book with a whole arsenal of live Communism. ammunition for libertarians. Hap- AT ALL BOOKSTORES... $395 py hunting to all of you! @® HENRY REGNERY & CO, CHICAGO ===== PAGE 61 ===== THE FREEMAN, Volume 11, January-December 1961 Prepared by VERNELIA A. CRAWFORD of the Foundation staff NOTE: In page references, the number preceeding the colon designates the month; the number following the colon refers to pages. All Book Reviews are listed according to title of book in a separate section on page 64. A Cc Abraham Lincoln Said. Quote by A. Lincoln, Capitalist International. By A. Kennedy, 9:44 2:66 Carson, Clarence B. Abundance Versus Scarcity. By H. Bugbee, Having Our Cake and Eating It, Too, 12:3 6:10 “You Can't Turn Back the Clock,” 10:45 Acton, Lord Case for Saying No, The. By J. Hochderffer, Liberty: quote, 11:66 9:3 Allen, William R. Cassidy, Morley Saving, Foreign Aid, and Growth, 12:26 It Isn't Insurance, 1:37 ] Alliance for Progress—or Socialism? By E. Centralized or Multiple Economies. By G. McDowell, 12:33 Winder, 6:45 Amiel, Henri-Frederic Chamberlain, John Zeal for Equality, The. Quote from Journal Progressive Income Tax, The, 11:30 . Intime, 10:66 Reviewer's Notebook, A. See Book Review Ample Warning. Quote by J. Madison, 5:24 section of this index Andrews, Donald H. Chamberlin, William Henry New Science and the New Faith, The, 4:52 He pa ae Self-Help, 8:25 . : ow - ’ . Armaments and Our Prosperity. By E. Opitz, Liberals Versus Statist “Liberals,” 3:38 : . Modern Robber Barons, 7:3 Art of Deception, The. By J. Sparks, 6:3 Revolutions Come in Different Packages, 6:14 B There Ought Not To Be a Law, 4:11 Barger, Melvin D, Changing Iron Ore Industry, The. By R. Lessons of Lost Weekends, The, 3:10 Lloyd, 3:51 Look Behind the “Front” Words, 12:50 Charitable View, A. Quote by R. Cobden, 8:22 Persistent Voice of Protest, 7:31 Christianity and Education. By E. Opitz, 2:7 Barron's Clark, Neil M. ‘“Wasteful and Vulgar’; quote, 6:54 Inpert in Industry, The, 11:50 Basic Proposition of Conservatism, A. By D. Inpert Situation, The, 10:40 Stewart, 12:22 Coase, Ronald H. Bastiat, Frederic Why Not Use the Pricing System in the Law and Education, The; quote, 3:37 Broadcasting Industry? 7:52 Being Negative. By E. Hutton, 6:44 Cobden, Richard Better Living Charitable View, A; quote, 8:22 Waste-Maker Nonsense, 5:32 Coleson, Edward P. Black, Eugene R. Rats, Fleas, and Fallacies, 1:3 Government in Industry: quote, 3:57 Collapse of Communist Economic Theory, The, Bradfield, Marceline By L. Sullivan, 4:17 Potlatch, U. S. A., 10:13 Collingwood, R. G. Brandt, Karl Valid Question; quote, 1:66 Hard Core of the Farm Problem, The, 4:23 Competitive Spirit, The. By A. Sullivan, 1:15 Brown, Wendell J. Conquest from Within. By G. Leslie, 8:44 What Liberty Is, 9:16 Conquest of Mexico. Quote by A. de Solis, 5:20 Buffett, Howard Conscience of the Majority. By L. Read, 3:16 Legal Federal Embezzlement, 12:38 Cooley, Oscar W. Bugbee, Helen No Jobs? 8:20 Abundance Versus Scarcity, 6:10 Creative Ideas, Quote by A. Griswold, 6:66 “Buy American” Is Un-American. By J. Crockett, David Morano, 11:15 Sockdolager, A, 8:49 59 ===== PAGE 62 ===== 60 THE FREEMAN December +} G Danger: “Mindtraps” Ahead. By W. Sprague, Gazette-Telegraph (Colorado Springs) 12:40 Individuals Do It, 5:21 Davidson, Thomas Gifts from the Maharajah. From The Wall Freedom and Morality; quote, 3:66 Street Journal, 5:22 DeArmond, Fred Gordon, Gerald Freedom To Choose, The, 12:12 How To “Live” with Your Job, 1:48 Death in the Afternoon. By G. Winder, 2:30 Government Contract? No, Thanks! By “Don’t You Want To Do Anything?” By H. J. Schoeph, 7:60 Sennholz, 5:57 Government in Industry. Quote by E. Black, Dykes, E. W. 3:57 Worse than Chain Letters, 7:27 Government vs. Government. From Economic Intelligence, 9:64 E Great Britain and the Common Market. By G. Winder, 11:19 Griswold, A. Whitney Creative Ideas; quote, 6:66 Economic Highlights Senator Borah Was Wrong; quote, 5:56 Economic Intelligence Government vs. Government, 9:64 Education for Individualism. By H. Hazlitt, H 9:25 Hall, Willis H. Emrich, Richard S. “I'm for Free Enterprise—But!"” 4:9 Men Are Not Naturally Good, 11:44 Hancock, John, and others European Common Market, The. By J. Van July 4, 1776; quote, 7:64 Sickle, 8:32 Hard Core of the Farm Problem, The. By K. “Every Man a King.” Quote by F. Harper, Brandt, 4:23 2:29 Harper, F. A. Everybody Knows That. By S. Yankus, 8:23 “Every Man a King’’; quote, 2:29 Exploitation. By G. SnelGrove, 9:7 Having Our Cake and Eating It, Too. By C. Extension of the Suffrage. By J. Mill, 5:54 Carson, 12:3 Hayek, F. A. F Use of Knowledge in Society, The, 5:44 . Hazlitt, Henry Fertig, Lawrence . Education for Individualism, 9:25 Our “Experts” Almost Ruined Germany, Jobs by Inflation? 6:11 8: 10 . . What Rent Control Does, 6:28 Significant Role of Ludwig von Mises, The, Heart of the Capitol, The. By G. Winder, 5:3 10:33 Highway Dilemma, The. By J. Sparks, 8:14 Fleming, Harold M. Hochderffer, Joe Methods of Capitalism, The, 2:36 Case for Saying No, The, 9:3 Foreign Aid. Quote by H. Weaver, 9:43 How Did Lincoln Get His Education? By 8S. Foreign Aid Off Target. By J. Sparks, 7:12 Pettengill, 2:3 Foreign Spokesmen for Freedom. By L. Mises, How State Help Destroys Self-Help. By W. 3:14 . Chamberlin, 8:25 Forging Africa’s Chains. By F. Mahaffy, 8:3 How To “Live” with Your Job. By G. Gordon, Four Foundations of Freedom. By K. Sollitt, 1:48 2:50 Hutton, E. F. Fraud of the Welfare State, The. By S. Miles, Being Negative, 6:44 Jr., 4:35 What H d to Whale Oil? 8:43 Freedom and Morality. Quote by T. Davidson, at Happened to e Oil? 8: 3:66 Freedom and the Nature of Man. By S. Petro, I 9:9 . “I'm for Free Enterprise—But!” By W. Hall, Freedom Depends on You. Quote by W. Smith, 4:9 12:66 . Importance of Beliefs, The. By D. Russell, 11:3 Freedom Does Pay. By W. Chamberlin, 2:18 Individualist Ethics. Quote by A. Schweitzer, Freedom Is Hard Work. By K. Wood, 11:9 8:9 Freedom To Choose, The. By F. DeArmond, Individuals Do It. From Gazette-Telegraph, 12:12 5:21 From “The Virginia Bill of Rights.” By G. Inpert in Industry, The. By N. Clark, 11:50 Mason, 9:66 Inpert Situation, The. By N. Clark, 10:40 ===== PAGE 63 ===== 1961 INDEX 61 Into Space and Beyond Criticism. By L. Read, M 10:3 } McDowell, Edwin It Isn’t Insurance. By M. Cassidy, 1:37 Alliance for Progress—or Socialism? 12:33 Madison, James J Ample Warning; quote, 5:24 Mahaffy, Francis E. Forging Africa’s Chains, 8:3 Majority Rule. By F. Keith, 3:30 Manchester, Frederick A. Jenkins, H. P. B. Direct Taxation, 8:19 Double Jeopardy, 9:15 xporting Affnence. 7:87 On a Text from The Federalist, 4:40 isc 18ta, 10: I. Republic and Democracy: A Study in Mean- Free Collective Bargaining, 2:35 ings, 1:18 Freedom from Toil, 11:43 Inflation Strikes Home, 12:25 Mason, George From “The Virginia Bill of Rights,” 9:66 Interest Rate Control, 3:9 : \ sta Measure of Virtue, The. By L. Read, 2:13 § fabricated Advice. 6:27 Memory of Man Runneth Not to the Contrary, The Tailfiry py The. Quote by D. Webster, 1:32 Ultimate Foreign Aid, The, 1:17 Men Ave Not Naturally Good. By R. Emrich, Jobs by Inflation? By H. Hazlitt, 5:11 Methods of Capitalism, The. By H. Fleming, Journal Intime 2:36 Zeal for Equality, The. Quote by H. Amiel, Miles, Stephen B., Jr. 10:66 Fraud of the Welfare State, The 4:35 July 4, 171 5. Quote by J. Hancock and Retreat from Reality, 5:13 Mill, John Stuart Extension of the Suffrage, 5:54 K Milton, John Power of Truth, The; quote, 8:66 Miracle of Individual Responsibility, The. By C. Williams, 4:3 Miracle of the Market. By L. Read, 9:32 Mises, Ludwig Foreign Spokesmen for Freedom, 3:14 Keith, Frank B. Majority Rule, 3:30 Kennedy, Alfred Anderson Capitalist International, 9:44 i Modern Robber Barons. By W. Chamberlin, Landrum, Lynn 7:8 Revolt Against Liberalism, 11:17 Monthly Letter (First National City Bank) Law and Education, The. Quote by F. Bastiat, REA Through the Looking Glass, The, 10:28 3:37 Montllor, Clytia C. Legal Federal Embezzlement. By H. Buffett, Needed: New Vigilantes, 5:25 12:38 Morality and Vigilance. Quote by D. Webster, Leslie, Grey 4:34 Conquest from Within, 8:44 Morano, Jack Lessons of Lost Weekends, The. By M. Barger, “Buy American’ Is Un-American, 11:16 3:10 Morbid Democracy. Quote by J. Ortega y Let's Not Do-It-Ourselves. By P. Poirot, 2:25 Gasset, 4:66 Liberals Versus Statist “Liberals.” By W. Chamberlin, 3:38 Liberty. Quote by Lord Acton, 11:66 N Lincoln, Abraham Needed: New Vigilantes. By C. Montllor, Abraham Lincoln Said; quote, 2:66 5:25 Lloyd, Robert M. New Order of the Ages, A. By S. Pettengill, Changing Iron Ore Industry, The, 3:51 1:40 Long Road Toward Knowledge, The. Quote by New Science and the New Faith, The. By D. W. Ramsay, 4:60 Andrews, 4:52 Look Behind the “Front” Words. By M. New York Daily News Barger, 12:50 Unsocial Insecurity, 7:10 Lost in the Shuffle. By L. Sullivan, 6:9 Newton, V. M., Jr. ] Lyne, Ralph E. Our Secret Government, 5:34 Nonsense vs. Common Sense; quote, 10:64 Nilsson, George W. To Strengthen or Destroy; quote, 8:48 Not in the Constitution, 7:16 ===== PAGE 64 ===== 62 THE FREEMAN December No Jobs? By O. Cooley, 8:20 Ramsay, W. M. Nonsense vs. Common Sense. Quote by R. Long Road Toward Knowledge, The: quote, Lyne, 10:64 4:60 Not in the Constitution. By G. Nilsson, 7:16 Rats, Fleas, and Fallacies. By E. Coleson, 1:3 Nothing To Lose but Our Gains. By C. REA Through the Looking Glass, The. From Scoltock, 2:43 Monthly Letter, 10:28 Read, Leonard E. 0 Conscience of the Majority, 3:16 .On a Text from The Federalist. By F. Man- io Space Vira oe Crit com, 10:3 chester, 4:40 . Miracle of the Market, 9:32 On Private Property and Economic Power. When Businessmen Behave like Blue Eagles, By H. Sennholz, 1:11 6:22 . Opitz, Edmund A. . Redistributing the Wealth. By E. Rossit, 11:46 Armaments and Qur Prosperity, 3:3 Republic and Democracy: A Study in Mean- Christianity and Education, 2:7 ings. By F. Manchester, 1:18 Ortega y Gasset, Jose Retreat from Reality. By S. Miles, Jr., 5:13 Morbid Democracy; quote, 4:66 Revolt Against Liberalism. By L. Landrum, State Interventionism; quote, 8:68 11:17 Our “Experts” Almost Ruined Germany. By Reayolutions Come in Different Packages. By L. Fertig, 8:10 W. Chamberlin, 6:14 Our Secret Government. By V. Newton, Jr., Revolutions, Liberal and Conservative. By T. 5:34 Stevenson, 7:38 p Rigged Rules and Fair Play. By J. Sparks, 11:11 Padilla, Benedicto Right To Go Broke, The. By D. Witham, 6:20 Price and Exchange Controls, 6:32 Rogge, Benjamin A. Paton, W. A. Who's To Blame? 1:33 Tale of the Little Red Hen, The, 11:28 Rossit, Edward A. Persistent Voice of Protest. By M. Barger, Redistributing the Wealth, 11:46 7:31 Rothbard, Murray N. Petro, Sylvester Statistics: Achilles’ Heel of Government, Freedom and the Nature of Man, 9:9 6:40 Pettengill, Samuel B. Rowland, Koil How Did Lincoln Get His Education? 2:3 Profit and Public Relations, 2:15 New Order of the Ages, A, 1:40 Rukeyser, Merryle Stanley Pity—But True, A. Quote from Star-Journal, What Education Should Business Support? 7:49 3:31 Plato Russell, Dean Tyrant as Slave, The; quote, 3:50 Importance of Beliefs, The, 11:3 Poirot, Paul L. Price Control Is People Control, 10:25 Let's Not Do-It-Ourselves, 2:25 What Freedom Means, 12:18 Potlatch, U.S.A. By M. Bradfield, 10:13 Power of Truth, The. Quote by J. Milton, 8:66 $ Price and Exchange Controls. By B. Padilla, Saving, Foreign Aid, and Growth. By W. 6:32 Allen, 12:26 Price Control Is People Control. By D. Russell, Schoeph, John M. 10:25 Government Contract? No, Thanks! 7:50 3 Schweitzer, Albert Pe propery 8nd Freedom. By W. Individualist Ethics; quote, 8:9 s . Scoltock, Claire Profit and Public Relations. By K. Rowland, Nothing To Lose but Our Gains, 2:43 p Selected Facts in the British Nationalized Progressive 1 ncome Tax, The. By J. Chamber Coal Industry. By G. Winder, 3:44 Pursuit of Happiness, The. Quote submitted Senator Borah. Was Wrong. Quote from Eco- by S. Yankus, 5:43 nomic Highlights, 5:56 ’ Sennholz, Hans F. “Don’t You Want To Do Anything?” 8:57 R On Private Property and Economic Power, Raico, Ralph 1:11 Wilhelm von Humboldt, 9:46 Volunteers for the Peace Corps, 9:38 ===== PAGE 65 ===== 1961 INDEX 63 Significant Role of Ludwig von Mises, The. Urban Renewal Fallacy, The. By J. Sparks, By L. Fertig, 10:33 10:17 Smith, Adam Use of Knowledge in Society, The. By F. Source of Wealth, The; quote, 5:66 Hayek, 5:44 Smith, William Freedom Depends on You; quote, 12:66 Vv SE ore ation 9:7 Valid Question. Quote by R. Collingwood, 1:66 " “R Value—A Moral Issue. By R. Stocking, 10:52 Sockdol , A. By D. Crockett, 8:49 Solis, Antonio de y exe Van Sickle, John V. Conquest of Mexico; quote, 5:20 European Common Market, The, 8:32 Sollitt, Kenneth W. Volunteers for the Peace Corps. By H. Senn- Four Foundations of Freedom, 2:50 holz, 9:38 Solomon, Louis H. Youth in Search of Freedom, 5:41 w Source of Wealth, The. Quote by A. Smith, wun Street Journal, The 5:66 Gifts from the Maharajah, 5:22 Sparks, John C. “Wasteful and Vulgar.” From Barron's; quote, Art of Deception, The, 6:3 6:54 Foreign Aid Off Target, 7:12 Waste-Maker Nonsense. From Better Living, Highway Dilemma, The, 8:14 5:32 Rigged Rules and Fair Play, 11:11 Urban Renewal Fallacy, The, 10:17 Your Turn at Bat, 2:14 Sprague, W. E. Danger: ‘“Mindtraps’” Ahead, 12:40 Weaver, Henry Grady Foreign Aid; quote, 9:43 Webster, Daniel Memory of Man Runneth Not to the Con- Star-Journal (Warrensburg, Missouri) trary, The; quote, 1:32 Pity—But True, A: quote, 7:49 Morality and Vigilance; quote, 4:34 State Intervention. Quote by J. Ortega y What Can a Banana Tree Do? By S. Yankus, Gasset, 8:58 9:29 Statistics: Achilles’ Heel of Government. By What Education Should Business Support? By M. Rothbard, 6:40 M. Rukeyser, 3:31 Stevenson, Thomas H. What Freedom Means. By D. Russell, 12:18 Revolutions, Liberal and Conservative, 7:38 what Happened to Whale 0il? By E. Hutton, Stewart, Daniel K. 8:43 Basic Proposition of Conservatism, A, 12:22 what Liberty Is. By W. Brown, 9:16 Stocking, Robert M. . What Rent Control Does. By H. Hazlitt, 6:28 Value—A Moral Issue, 10:52 Sullivan, A, M. Competitive Spirit, The, 1:15 Sullivan, Lawrence When Businessmen Behave like Blue Eagles. By L. Read, 6:22 Who's To Blame? By B. Rogge, 1:33 Collapse of Communist Economic Theory, Why Not Use the Pricing System in the The, 4:17 Broadcasting Industry? By R. Coase, 7:52 Lost in the Shuffle, 6:9 Wilhelm von Humboldt. By R. Raico, 9:46 Williams, Carlton Miracle of Individual Responsibility, The, T 4:3 Tale of the Little Red Hen, The. By W. Paton, Winder, George 11:28 Centralized or Multiple Economies, 6:45 There Ought Not To Be a Law. By W. Cham- Death in the Afternoon, 2:30 berlin, 4:11 eye ' 4 Great Brit d ket, To Strengthen or Destroy. Quote by R. Lyne, 110 ritalin snd the Common Marke ro “» Wil Heart of the Capital, The, 5:3 chus, am Selected Facts in the British Nationalized Private Property and Freedom, 2:46 Tyrant as Slave, The. Quote by Plato, 3:50 Coal Industry, 3:44 Witham, Dale Right To Go Broke, The, 6:20 U Wood, Keith S. Unsocial Insecurity. From New York Daily Freedom Is Hard Work, 11:9 News, 7:10 Worse Than Chain Letters. By E. Dykes, 7:27 ===== PAGE 66 ===== 64 THE FREEMAN December Y Intellectual Schizophrenia. By R. Rushdoony. Reviewed by R. Thornton, 9:58’ Jefferson. By A. Nock. Reviewed by R. Thorn- ton, 1:61 Kohler Strike: Union Violence and Adminis- trative Law, The. By S. Petro. Reviewed by E. Keller, 6:59 Law and the Profits, The. By C. Parkinson. Reviewed by R. Thornton, 5:63 Mark Twain: The Man and His Work. By E. Wagenknecht, Reviewed by J. Chamberlain, 4:61 b 4 Moulding of Communists: The Training of the Communist Cadre, The. By F. Meyer. Re- viewed by J. Chamberlain, 3:58 My Own Story. By B. Baruch. Reviewed by J. Chamberlain, 10:61 BOOK REVIEWS New England Clergy and the American Revo- Admiral’s Log II—In Search of Freedom, The. lution, The. By A. Baldwin. Reviewed by E. Yankus, Stanley Everybody Knows That, 8:23 Pursuit of Happiness, The; quote submitted by, 5:43 What Can a Banana Tree Do? 9:29 “You Can’t Turn Back the Clock.” By C. Carson, 10:45 Your Turn at Bat. By J. Sparks, 2:14 Youth in Search of Freedom. By L. Solomon, 5:41 Zeal for Equality, The. Quote from Journal Intime. By H. Amiel, 10:66 By B. M 1. Reviewed by F. Chod , Opitz, 1:62 i Yo oreel eview y odorov Philosophy of Edmund Burke, A Selection American Might and Soviet Myth. By J. Cam- from His Writings and Speeches. By L. Bredvold and R. Ross. Reviewed by S. Pettengill, 6:62 Prophet of Progress. Edited by T. Boyd. Re- viewed by J. Chamberlain, 6:55 Prosperity Through Freedom. By L. Fertig. Reviewed by J. Chamberlain, 12:55 Scientism and Values. Edited by H. Schoeck paigne., Reviewed by J. Chamberlain, 2:58 Cost of Freedom: A New Look at Capitalism, The. By H. Wallich. Reviewed by E. Mec- Dowell, 8:62 Critics of Keynesian Economics, The. By H. Hazlitt. Reviewed by J. Chamberlain, 7:58 oo My o gsephson. Reviewed by J. and J Wiggins. Reviewed by W. Peterson, Employment Opportunities in Later Years. go.ialist Empire: The Incas of Peru, A. By By J. Morris. Reviewed by P. Poirot, 2:62 L. Baudin. Reviewed by J. Chamberlain, Egsays on Liberty, Vol. VII. Published by 8:59 : Foundation for Economic Education. Re- States, Contracts and Progress: Dynamics of viewed by J. Chamberlain, 1:58; Vol. International Wealth. By H. Fleming. Re- VIII, 11:61 viewed by J. Chamberlain, 5:59 Facts on Communism: The’ Soviet Union from United States Foreign Policy: Ideology and Lenin to Khrushchev. From Government Foreign Affairs. Study by Center for Inter- Printing Office. Reviewed by L. Sullivan, national Affairs, Harvard University. Re- 5:63 viewed by K. Glaser, 1:63 Federalist: A Classic on Federalism and Free What Is Political Philosophy? And Other Government, The. By G. Dietze. Reviewed Studies. By L. Strauss. Reviewed by J. by K. Templeton, 7:61 Hauptmann, 3:63 Gilded Age, The. By M. Twain and C. Warner. You Can Trust the Communists. By F. Reviewed by J. Chamberlain, 4:62 Schwarz. Reviewed by B. Bien, 2:63 ===== PAGE 67 ===== ESSAYS “i ON LIBERTY VOLUME VIII, just published (448 pp., indexed), contains selected writings from THE FREEMAN and NOTES FROM FEE, from June 1960 through June 1961. Cloth, $3.00 Paper, $2.00 Cloth, $19.00 He Sot — all 8 volumes ! Paper, $13.00 Consider these volumes, either singly or in the set, as choice and thoughtful Christmas gifts. ORDER FROM: THE FOUNDATION FOR ECONOMIC EDUCATION, Inc. Irvington-on-Hudson, New York ===== PAGE 68 =====