===== PAGE 1 =====

OCTOBER 1962

Individual Liberty in the Crucible of History

6. A Rebirthof Liberty . . . . . . ClarenceB. Corson 3
The Welfare Mess . . . . . . . . Henry Hazlitt 14
The Guaranteed Life . . . . . . . Maxwell Anderson 16
Freedom From Unions . . . . . . . H.P.B. Jenkins Nn
Could A. T. & T. Run the Post Office?. . . Melvin D. Barger 22
An Average Citizen: Sex Male . . . . JessRaley 32
Let's Wreck the Gravy Train . . . . . EdwordP. Coleson 35
Freedom To Decide . . . . . . . . JohnC. Sparks 38
Bureaucratic Decisions . . . . . . . Paull. Poirot 46
How Winstedites Kept Their Integrity . . Ralph Nader 49
To Helpa Neighbor. . . . . . . . Glennl. Pearson 54

Books:

Keynes versus Keynes . . . . . . . John Chamberlain 59
Other Books . . . . . . . . . . 62

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC.

lrvington-on-Hudson, New York



===== PAGE 2 =====

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REPRINTS OF RECENT ARTICLES

The following articles from recent issues of THE FREEMAN are available as reprints:

Date of Issue Author Title Price per copy
1961
January MORLEY CASSIDY It Isn't Insurance 2¢
" BENJAMIN A. ROGGE Who's to Blame? 2¢
February LEONARD E. READ The Measure of Virtue 1¢
" KENNETH W. SOLLITT Four Foundations of Freedom 5¢
” JOHN C. SPARKS Your Turn at Bat 1¢
March LEONARD E. READ Conscience of the Majority 10¢
April WILLIS H. HALL “I'm for Free Enterprise — But!" 1¢
September JOE HOCHDERFFER The Case for Saying No 2¢
” LEONARD E. READ Miracle of the Market 10¢
October JOHN C. SPARKS The Urban Renewal Fallacy 10¢
November ~~ RICHARD S. EMRICH Men Are Not Naturally Good 1¢
" W. A. PATON The Tale of the Little Red Hen 1g
1962
January LUDWIG VON MISES The Elite Under Capitalism 10¢
February LEONARD E. READ Violence as a Way of Life 10¢
March CECIL V. GROVE A Short History of Inflation 2¢
" J. G. McDANIEL, M.D. Whose Bread | Eat 2¢
" JOHN C. SPARKS Production Unlimited 10¢
April SAMUEL B. PETTENGILL A Boundless Field of Power 10¢
" LEONARD E. READ Genesis of Extremism 2¢
May JACK MORANO One Big Housing Project 3¢
" SUDHA R. SHENOY Statism and the Free Market 2¢
June JOHN E. SWEARINGEN Regulation of American Business 5¢
” JOHN CHAMBERLAIN Problems of Democracy 2¢
July LEWIS LOVE A King of Long Ago 2¢

September ~~ SAMUEL B. PETTENGILL The Old Regime 5¢


===== PAGE 4 =====

THE

Teemdi A MONTHLY JOURNAL OF IDEAS ON LIBERTY

OCTOBER 1962 Vol. 12, No. 10

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, 1962, The Foundation for Economic Education, Inc, Printed

in U.S.A.

Additional copies, postpald, 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 ‘‘The Welfare
FYE Mess,” and “The Guaranteed Life."

Any current article will be supplied In reprint form if there are enough

inquiries to justify the cost of the printing.


===== PAGE 5 =====

BUT SURELY, I will be told, even if
a rebirth of liberty were needed,

y now is not the time for it. What
we need in these times, says the
critic, are unity and strength.

Surely, it is unwise to cast doubts
upon the benevolence of our gov-

ernment and to divide our people
LIBERTY by calling for a return to liberty.
Besides, times have changed, and

we must adjust to and go forward

a with them. The trend everywhere

th today is toward socialism and col-

11 e lectivism, and Americans must

. Ts , adapt to the actual world within

: which they live. Even if it were

possible to “turn back the clock,”

what would our socialistic allies

\ think of the effort? Speak to us

\ Co not of individual liberty but of

of \ collective security, for the latter

i . is what our age requires. Let us

, shed a tear for the passing of in-

dividualism and merge ourselves

a Pp : once more with the spirit of the

;ON times and join in the collective
| SE effort.

Can there be an effective reply
to this propagated “wisdom” of

CLARENCE B. CARSON } our era? Is it possible to restore

N - Dr. Carson has recently transferred from Jack-
. \ sonville State College in Alabama to his new
\ post as Professor of American History at Grove
z City College in Pennsylvania. This is the sixth
/ and concluding article of the series on Indi-

vidual Liberty in the Crucible of History.
Illustration: Tower of Old North Church, Bos-

ton. A. Devaney, Inc., New York.

b. A Rebirth of Liberty

3


===== PAGE 6 =====

4 THE FREEMAN October

liberty, to return to the path from English monarch, George 111, was
which we have wandered? Is in- attempting to reassert the de-
dividual liberty practical in these clining authority of the English
complex and disordered times? If crown. There was not a major re-
these questions could be answered public anywhere in the world.
affirmatively, would it be possible Were these propitious times for
to arouse people from their apathy liberty?

and unconcern with liberty? Historians, with that particular
distortion which they almost in-
The Right Time variably bring to the past, have,

But when, let us ask, were the of course, presented a rather dif-
times right for liberty 7 Surely, no ferent picture of the eighteenth
one will say that they were right century. They see that people were
in 1776, Read again Thomas being sensitized and made ready
Paine’s description of the world for liberty by the Enlightenment,
situation in that year: “Every by the works of philosophers and
spot of the Old World is overrun scholars, by the thrust of mer-
with oppression. Freedom has chants for economic freedom, and
been hunted round the globe. Asia by a rising tide of discontent. Yet
and Africa have long expelled her. even as late as 1760 there was no
Europe regards her like a discernible rising tide of discon-
stranger, and England has given tent even in America. Nor were
her warning to depart.” there many signs of greater polit-

Grant that Paine may have been ical sensitivity. Voting records
guilty of exaggeration, for his re- for the mid-eighteenth century in-
port was not that of a sober re- dicate that even among those who
porter but of a man on fire for could vote in elections only a
liberty and independence. Yet a minority did.
historian can only modify the We read now of the works of
judgment and eliminate the exag- John Locke, Voltaire, Adam Smith,
geration, not deny its validity en- Montesquieu, and Jean Jacques
tirely. Continental European coun- Rousseau. But suppose events
tries were generally ruled by des- and developments had taken a dif-
pots, though some of them were ferent course? It is likely the
called enlightened. The French memory of some of these men
Estates General had not met in would not have survived their day.
the memory of any living man. Thomas Paine might have been
Spain was well on the way of its only a ‘“misguided” polemicist,
long day’s journey into night. The had things turned out differently.


===== PAGE 7 =====

1962 A REBIRTH OF LIBERTY b

Who are the great economists of Franklin, and those others who
our day? Shall we remember John struck a responsive chord in the
Maynard Keynes and John Ken- hearts of Americans and guided
neth Galbraith? Or will historians that response toward the achieve-
fasten one day on the seminal ment of liberty and indepen-
work of Ludwig von Mises and dence? I incline to the latter view
F. A. Hayek? The libertarian myself.
movement which today appears But if Americans are uncon-
virtually insignificant may one cerned and apathetic today, lead-
day be studied by historians as a ers would be of no avail, even were
sign of a rising tide of freedom. they to speak out. It may be, as
Stranger things than this have the critics say, that there is
happened in the past. among us little enthusiasm for
I do not predict what will hap- public undertakings. This may,
pen in the future. Nor will I ac- however, be a hopeful rather than
cept the predictions of others as a discouraging sign for liberty. It
to what will be. So far as I know, may mean nothing more than that
the future is undetermined. I do men are unenthusiastic about wel-
know with certainty that at one fare programs, that they have
time in the past America ceased tired of a never-ending expedi-
adjusting to the world of its time. ency, that they are weary of vul-
Americans did not follow the gar appeals to self-interest nar-
trend of Europe but led it. And rowly conceived.
the example of Americans break-
ing with the leadership of Europe Tired of Reform
and striking out on their own en- Man does not live by bread
couraged and emboldened other alone, and materialistic politicians
men who longed for freedom. How and leaders may be subsisting to-
daring it was in 1776 to throw off day on the dregs of appeals which
monarchy, in 1787 to conceive a have lost their evocative power.
Constitution for which there was The man with a two-car garage
no model, and to rest the govern- may endure grudgingly yet an-
ment finally upon the consent of other proposal to extend social
the governed! Was it the times security but be ready and eager
that wrought these things? Or to stand for something which will
was it Patrick Henry, Thomas ennoble him and restore meaning
Jefferson, Samuel Adams, John to his life. Letters-to-the-editor
Adams, Richard Henry Lee, suggest that there may be mil-
George Washington, Benjamin lions of Americans who have not


===== PAGE 8 =====

6 THE FREEMAN October

yet forfeited the faith of their court decisions. But the restora-
fathers, who remember still the tion of liberty can be made within
meaning of liberty and long to the constitutional framework and

see it restored and revitalized. would involve to considerable ex-
Could it be that it is the intel- tent a return to that document.
lectuals and politicians who are Then, too, there is a great tra-

out of step? It is possible that dition of liberty, for which
words like Liberty, Truth, and America was once known round
Justice might awaken a glad re- the world. That tradition em-
sponse, had we men with the cour- braces such concepts as constitu-
age to use them and the sturdiness tional government, government by
to exemplify them. Apathy may law rather than by men, repre-
well be the end product of a stulti- sentative government, separation

fying welfare state. of powers within the government,
limited government, and certain
The Path to Recovery inalienable rights belonging to

Is it possible to get off the road man. These are concepts and prin-
to collectivism and return to the ciples that can serve as mighty
path of liberty? I think so. As I levers for the protection and ex-
said in the first article of this tension of liberty.
series, we must retrace our steps But concepts, institutions, and
if we are to restore liberty in documents are of little use if men
America. This is the least difficult have lost faith in liberty. It is
of changes of direction to take. It useless to talk of a return to the
is the way of rededication, not Constitution if that return is not
revolution; of restoration, not in- preceded and accompanied by a
novation; of a return to the tried vital faith. Faith is essential to
and true, not an embarking into all human undertakings for the
the unknown, following reasons: (1) Human

Superficially, the return to knowledge is always limited, par-
liberty should be easy for Amer- tial, and subjected to distorted in-
icans. The United States Consti- terpretations resulting from hu-
tution — the bulwark of our lib- man frailty. (2) Such knowledge
erty — still provides the higher as we attain can only be had by a
law in this Republic. Technically faith that we can obtain it. (3)
it does, anyhow. There have been Faith must precede the works by
some regrettable amendments to which we test the validity of our
it, notably the Fourteenth and hypotheses. (4) Insofar as we
Sixteenth, and numerous dubious would know of ultimate ends and


===== PAGE 9 =====

1962 A REBIRTH OF LIBERTY 7

results, our knowledge is based with the most equitable distribu-
entirely upon faith. tion in the long run, they would

Faith alone can restore the be answered by a Harry Hopkins
meaning and urgency to liberty that men do not eat in the long
that would cause it to blossom run. More, it is doubtful that the
once more in America. Why does materialistic argument can give
liberty matter anyhow? Can it be that urgency to liberty that can
pragmatically — that is, in terms foster its restoration. Today we
of its immediate results — justi- may be eating the remains of the
fied? There are those who argue goose that laid the golden egg,
that liberty produces material and but so long as we are well-fed,
social benefits, and they appeal to not many of us will be concerned
reason and history to support to notice it or have the vision to
their point of view. But there are comprehend its meaning.
others — probably more numerous
— who point up the inequalities
that result from liberty, who em- But there is a higher, nobler,
phasize the unhappiness and and more forceful justification for
warped lives that result from de- liberty, before which materialistic
privation, who declare that pro- explanations pale. It is simply
duction — which they concede this: man is a moral being. His
might be advanced by liberty —is existence has ethical and spiritual
no longer the problem. Liberty, dimensions which give it ultimate
they say, is of no account to men meaning. The moral character of
who are hungry. The liberty of his life is evinced in the making
some must be reduced so that the of choices. Liberty is that condi-
happiness of all may be advanced. tion within which choices can be
The pragmatic defenders of lib- made and spiritual growth take
erty say this is not so, and retire place. The greater the degree of
behind a barrage of statistics to liberty the larger the latitude for
prove their contention. But alas, choice and growth. To put it nega-
there are statistics and statistics, tively, when liberty is reduced and
and the lesson of history is neither taken away, the moral character
so plain nor human vision so clear of human action is limited and
that any one answer must be ac- the opportunities for growth are
cepted. diminished.

Even if the pragmatic defend- Within this framework, social
ers of liberty were right, and lib- planning becomes not simply a de-
erty will provide the most goods batable method of achieving the

Man Is a Moral Being


===== PAGE 10 =====

8 THE FREEMAN October

production and distribution of the spread of crime, and the blight
goods but rather a diabolical as- of corruption in government. They
sault upon the meaning and sig- remove some of the main props of
nificance of human existence. For the family and describe the disin-
social planning reduces the area tegration of the family as a tran-
of individual decision and choice. sition.

This is so whether the planning is When men are still not entirely
done by a dictator or democrati- good, they proceed to make them
cally by a vote of the whole people. good by legislation. They enact
The actions of societies and gov- compulsory attendance laws for
ernments have moral conse- school children, make plans for
quences, but neither societies nor teaching morality in the schools,
governments are moral in any lobby for prohibitions upon the
significant sense. The ultimate sale of firearms, alcoholic bever-
significance of human morality ages, certain kinds of literature,
lies in an eternal realm to which and gasp in horror at the “intoler-
no entrance has been promised so- ance” which they have bred.

cieties and governments. Once set upon this road of mak-
ing man good by law, they ap-
Improper Methods parently will find no place to

There are those who agree that turn back until they have removed
man is a moral being, but who all opportunities to do evil. But
maintain that this is the very in this, too, they are frustrated
justification of their social pro- at every step. For the agencies
grams. They want to free man they invent to control man for
from those economic urgencies good fall into the hands of those
which stunt his character and ab- who use them for selfish and evil
sorb his life. ends.

In order to do this, they take All of this could have been, and
away from all men those liberties no doubt was, predicted in ad-
by which they produce and dis- vance. Man was so created that
tribute goods and relieve men of he cannot be made good. Good-
much of their responsibility for ness, as men know it, is an option
providing for themselves. They in- of man. It depends upon free
troduce a vast immorality into choice and voluntary commitment.
human relations — by taking from He needs all the choices and re-
those who produce and giving to sponsibilities that can befall him
those who do not — and wonder at to remain sensitive to the problem
the rise of juvenile delinquency, and practiced in the right re-


===== PAGE 11 =====

1962 A REBIRTH OF LIBERTY 9

sponse. Remove the responsibili- by scientific and psychological
ties that are by rights those of a findings? I have shown how the
man and you take away the most belief in reason was undermined
immediate incentives for right by an emphasis upon irrational
choice. There is visible evidence motives, how freedom of the mind
of the truth of these remarks, but and will were undercut by deter-
their full meaning must be ap- ministic theories, how individual
proached from a deep faith. responsibility was left stranded
Those who have such a faith are when freedom no longer seemed
ready to learn the other steps to possible, and how new ideas were
be taken for a rebirth of liberty. brought forward to replace the
From this vantage point we can old by men with a collectivistic
restore the foundations of Amer- bent.
ican liberty. “The three basic
foundations of our liberty are,” The Same Old Ideas
as I said, “(1) beliefs which sup- But was there anything new in
port it, (2) institutions which all these ideas except the “scien-
protect it, and (3) personal inde- tific” trappings within which they
pendence without which it is were purveyed? Surely it is no
meaningless and impossible.” The recent discovery that man is a
fundamental beliefs of the found- creature of passions. What philos-
ers of American liberty were, as I opher, ancient or modern, has not
pointed out in the first article of noted and remarked upon it? Were
this series: belief in “natural law, not the great Greek philosophers
freedom of the mind and will, in- all too conscious of the tendency
dividual responsibility, and ra- of man to yield to unreason? For
tionalism. These in turn were what did saints and monks go
given evocative power by the be- aside from the world and mortify
lief that there is a God who im- the flesh if it was not to subdue
bedded his immutable laws in the these unruly passions? Nor is it
visible universe, that the individ- a new notion that all material ex-
ual has a worth not measurable istence is contingent and depend-
in human terms, that each indi- ent. Even the belief that all things
vidual’s good is inseparable from are in a state of continual change
the general welfare, and that lib- was advanced by one of the ear-
erty is priceless for the individual liest of philosophers. The great
and socially beneficial.” achievements of thought have been
Are these still viable beliefs? not the recognition of the obvi-
Or have they now been discredited ously changing but of the subtly


===== PAGE 12 =====

10 THE FREEMAN October

enduring; not the portraying of real justification of political dis-
the patently ephemeral but the course and debate. This is as true
distinguishing of the eternal today as it was 2,000 years ago.
amidst the flux; not the discovery The case for liberty does not
of relationship and contingency hinge upon man’s actual freedom
but the perception of ultimate at any given time. Rousseau was
freedom; not the describing of drastically wrong: man is not
the tendency of man to yield to born free. He is from the moment
passions but the working out of of conception dependent upon
reason by which he might over- someone else for sustenance, and

come them. there is reason to believe that as
} the infant ages, il becomes more
A Capacity for Reason emotionally dependent. We are all

The case for reason is not based subjected to inner passions and
upon the belief that man is al- outer influences and pressures.
ways reasonable but upon the No, man is not born free, but per-
view that he is capable of using chance he may become progres-
reason. The claim for requiring sively free. It is for this end that
reason in polite discourse is not liberty is important. A man may,
that it is the sole or even the most by exercising choice and initia-
important motive in human be- tive, become relatively independ-
havior but that reason alone can ent of others for his livelihood.
be profitably dealt with in dis- By so doing, it was once believed
course. Indeed, reason is not a and may still be true, he can be-
motive at all but a method. Irra- come practiced in those ways that
tionalists have made much of make for moral and spiritual in-
reason as a motive —in order to dependence. (But let us not claim
discredit it — but they simply set too much for man. The religious
up a straw man when they do so. heritage of Christians proclaims
When men have to cast their sel- that ultimate freedom as a spirit-
fish aims in the language of rea- ual condition depends upon the
son, they put the best possible face Grace of God. The increasing de-
upon them and have to leave them pendency and pervasiveness of
at the mercy of rational analysis. doctrines of social dependency
If they will not stand up in dis- gives weight to this position in
course, they should and possibly our day in which men are not
will be discarded. That men are noted for piety.) At any rate, it
capable of reasoning and submit- is only by the exercise of choice
ting to the best reason is the only that man expresses his freedom.


===== PAGE 13 =====

1962 A REBIRTH OF LIBERTY 11

It was not the newness nor even one pushed the child from the cliff,
their apparently scientific charac- then he was the doer of the evil
ter that gave such impetus to doc- action, not the law of gravity.
trines of determinism and irra- Obedience to natural law is one
tionalism. It was rather the con- thing; yielding to natural im-
text within which they came. pulses is another. The first is ex-
Romantics had taught that nature pedient and wise; the second may
was good. If this be accepted as a be neither. Neither natural law
universal, then everything that nor natural rights are the cause
can be shown to subsist in nature of our morality. They are condi-
should be accepted as good. Thus, tions within which morality oc-
if man was irrational by nature, curs. Once we have committed an
if he was dependent by nature, act, natural law may extend it to
then these should be accepted and an end which we did not foresee
yielded to. This position intro- or will. It is in this sense that
duced a confusion into thought natural law is thought to reflect
from which we have not yet re- the will of God. Here, too, it is
covered. It is also a vast simplifi- that the attempt to go contrary
cation of man, the universe, and to natural (divine) law is pun-

its meaning. ished and brought to naught. It

is within such a framework that
Natural Law natural rights can have meaning
" Here is not the place, however, and the belief in them defended.
to disentangle all the knotty issues But why use so much space

about nature which have been in- writing of theoretical matters?
troduced in the last two centuries. Why not speak rather of practical
Suffice it to say that the belief in matters? After all, liberty is a
natural law and natural rights can practical consideration. Faith and
be held without believing that na- beliefs are practical matters also.
ture is good in human terms. A Try to restore liberty in America
child can fall to its death from a without faith and belief and you
cliff through the operations of the - will have revolution rather than
law ‘of. gravity. As such, there is government by law. Try to con-
no moral issue involved in this: it vince a man who lacks faith in
is neither good nor bad, though liberty that we should revoke the
it may be almost unbearably sad privileged status of organized
to those who have lost the child. labor, remove the acreage .allot-
Morality enters the picture when ments and price supports from
willed human action'does. If some- agriculture, ‘dismiss the boards


===== PAGE 14 =====

12 THE FREEMAN October

and commissions which hold so of price supports if he does not
much arbitrary power over busi- turn to the production of scarce
ness activity, and repeal the vast crops that will net him a better
accretions of social legislation. He return.
might agree with you that liberty
would be desirable, but he would Times Have Changed
be appalled by the vision of But circumstances have changed
sweated labor, crop surpluses and since the eighteenth century, the
declining farm prices, concen- defender of the status quo will
trated wealth in the hands of the say, and the liberty that was ap-
few, “cutthroat” competition, mil- propriate to those times is no
lions unemployed, hungry, ill-fed, longer practical. Circumstances
ill-clothed, and with inadequate have changed, indeed. I have been
medical care. Will liberty work? at some pains to point them out.
It might, but the risks are too We live in a country that becomes
great to try it. increasingly urbanized and indus-
My point is that we can only trialized. Independence is much
persuade men to return to liberty more difficult to achieve and main-
when we can persuade them that tain today than it was in 1800.
there is something at issue worth The economy is much more intri-
suffering and dying for, that there cately interrelated, and the in-
are ultimate issues involved. Sup- habitants of the land more inter-
ported by such a faith, men can dependent. The mass media play
recapture the faith and regain the upon us with advertising and
experience that liberty will work. propaganda. World-wide problems
But it will work only to the extent beset us.
that men are devoted to making But are these arguments
it work. That worker will be paid against liberty? They might
low wages who does not exert him- rather be powerful arguments for
self to attract a higher offer. liberty. Complexities require more
Those men who band together in knowledge and better understand-
a union and strike will find them- ing for operating within them, not
selves without jobs if they cannot arbitrary protections from them.
convince the employer that he To protect a man from the conse-
stands to lose more by giving up quences of living in his society is
their experience than he will gain to support him in his ignorance
by the lower wages of those he and ineffectiveness. When circum-
employs. The farmer will find his stances change, those who are de-
income diminished with the loss voted to liberty will think of new


===== PAGE 15 =====

1962 A REBIRTH OF LIBERTY 13

ways to protect it and defend it, should be cast in positive and
not arguments for reducing it. hopeful terms, too. Free men are
Radio and television are regulated vital and alive. Competition is an
because the minds of men were invigorating and enlivening thing.
bent toward regulation. Libertar- Apathy receives its due punish-
ians would try to think, instead, ment just as effort is likely to re-
of ways of freeing these inven- ceive its just reward when liberty
tions from control and the privi- prevails. Liberty dignifies those
leges that pertain to those who who support it because it is a
have franchises. The difficulties noble cause. Americans should re-
and problems of our time cry out ject the way that leads to a pale
for free and responsible men to imitation of the stultifying social-
deal with them. Men who are pro- isms which beset and inactivate
tected will become less effective in European countries. They should
their thinking and more feeble in embrace the only national purpose

their efforts. that was ever defined for America
The call for a return to liberty and work for a rebirth of liberty.
@

The Tyranny of Public Opinion

PROTECTION . . . against the tyranny of the magistrate is not
enough; there needs protection also against the tyranny of the
prevailing opinion and feeling; against the tendency of society
to impose, by other means than civil penalties, its own ideas and
practices as rules of conduct on those who dissent from them; to
fetter the development, and, if possible, prevent the formation,
of any individuality not in harmony with its ways, and compel
all characters to fashion themselves upon the model of its own.
There is a limit to the legitimate interference of collective opinion
with individual independence: and to find that limit, and main-
tain it against encroachment, is as indispensable to a good con-
dition of human affairs, as protection against political despotism.

JOHN STUART MILL, On Liberty


===== PAGE 16 =====

:
/ THE WELFARE MESS

Se ~~ HENRY HAZLITT

WHEN the Senate rejected Presi- and 1961, the bank’s letter shows
dent Kennedy’s Medical Care for that old-age, survivors, and dis-
the Aged bill by the narrow vote ability insurance payments rose
of 52 to 48, he denounced the vote from $784 million in 1950 to $12,-
as “a most serious defeat for ev- 160 million in 1961, an increase of
ery American family ... We have 1,451 per cent. Unemployment ben-
to decide,” he continued, “the efits rose to nearly $4 billion, an
United States, in 1962, in Novem- increase of 67 per cent. Old-age as-
ber, in the Congressional elections, sistance payments rose to nearly
whether we want to stand still or $2 billion, an increase of 33 per
whether we want to support this cent. Aid to dependent children in-
kind of legislation for the benefit creased 115 per cent, hospital and
of the people.” medical care costs 106 per cent,

Was the defeat of the medicare government spending on medical
"bill a defeat, or was it really a research 827 per cent, veterans
victory, for most American fam- compensation and pensions (at
ilies? May it not at least be better nearly $4 billion) 34 per cent. Al-
to “stand still” for a while than to together, total public welfare ex-
keep going in the wrong direction penditures grew from $13.8 billion
— further and further away from in 1950 to $37.3 billion in 1961, an
individual initiative and self-help, increase of 170 per cent.
and deeper and deeper into the pa-
ternalistic welfare state? Limit to Taxes

How deep we have already got This tremendous total does not
into the welfare state is docu- include such welfare-related activ-
mented in the July monthly letter ities as farm price supports, ur-
of the First National Bank of ban renewal, aid to depressed
New York. In a tabular compari- areas, and so forth.
son of public social welfare ex- The money to pay these gigantic
penditures in the fiscal years 1960 welfare benefits did not come out

14


===== PAGE 17 =====

1962 THE WELFARE MESS 15

of some magical fourth dimension. “liberalize” unemployment insur-
It came out of taxes — nearly half ance further.
out of a flat tax on payrolls. If the In the last year or so, reports of

employer's contribution is consid- abuses and scandals in the welfare
ered to be in lieu of higher pay programs have been mounting.
for the worker (as in the long run The bank letter cites a few. From
it must be) the tax on the workers Hollywood, it was reported that a
is now at 614 per cent. The com- child actor, who turned down a job
bined tax is now scheduled to rise paying up to $28 a day because he
to 7% per cent next year, to was accustomed to $100-$150 a
814 per cent in 1966, and to 9'4 day, was awarded unemployment
per cent in 1968. The President’s benefits. In New York, a ring of
medicare program, if enacted, six persons was uncovered which
would add another 1% of 1 per allegedly had bilked the public of
cent. Yet even Secretary Ribicoff $41,900 in unemployment compen-
declared last February: “I think sation by faking unemployment
we have reached a stage of almost records. A committee of the New
maximum taxation under social Jersey legislature discovered a
security. In my mind, I place that family with 23 children that was

at 10 per cent of payroll.” receiving $969 a month in welfare
payments (including social secur-

Mounting Abuses ity).
Rates have to be raised to keep It is obvious that handing out

the program solvent. But it is a generous welfare benefits to idle
real question whether presently People while imposing heavy tax
scheduled rates are high enough to Purdens on those who work and

do this. No serious thought is giv- Produce can only discourage am-
en to the enormous “unfunded li- bition and responsibility, work,

abilities” already assumed by the production, and economic growth.

. . . The President’s medicare program
social security program. Official 1d give h ( d) ben
actuaries have placed these at $350 “Cu.¢ give neavy (unearned) ben-

S15 efits to the present aged and load
billion. One former actuary places the cost onto the present youn
them at $650 billion. p young.

3 The whole social security sys-
Yet hardly a week goes by In tem is in urgent need of re-exam-
which a further piling up of liabil-

Nua ination. @
ities is not recommended. Several —m8—

ve . Reprinted by permission from Newsweek,
Administration proposals would August 6, 1962


===== PAGE 18 =====

= Guaranteed Life

MAXWELL ANDERSON

a

Maxwell Anderson (1888-1959), noted American dramatist,
first wrote this article as a preface to his Knickerbocker
Holiday in 1988. He revised it somewhat in 1950, when it
was published as a pamphlet by the Foundation for Economic
Education. It is again presented here because the ideas
seem even more timely now than ever before.

“A GOVERNMENT is a group of men And some kinds of government
organized to sell protection to the are far better than others. Spe-
inhabitants of a limited area at cifically, our American experiment
monopolistic prices.” So said Peter has worked so well that we can
Stuyvesant in Knickerbocker Holi- point to it as one of the most suc-
day, and so I believe now. In other cessful in the history of the world,
words, there’s no such thing as a if not the most successful.

“good” government; one and all In Knickerbocker Holiday 1
they partake of the nature of tried to remind the audience of
rackets. But government is better the attitude toward government
than anarchy, and was invented which was prevalent in this coun-
as an insurance against anarchy. try at the time of the revolution
—_— of 1776 and throughout the early
Preface to Knickerbocker Holiday: Copyright years of the republic. At that time

1938, by Maxwell Anderson. The Guaranteed | .
Life: Copyright 1950, by Maxwell Anderson. it was generally believed, as I be-

16


===== PAGE 19 =====

1962 THE GUARANTEED LIFE 17

lieve now, that the gravest and stitution was dominated by such
most constant danger to a man’s men as Franklin and Jefferson,
life, liberty, and happiness is the men with a high regard for the
government under which he lives. rights of the individual, combined
with a cold and realistic attitude
Balance of Selfish Interests toward the blessings of central
It was believed then that a civ- authority. Knowing that govern-
ilization is a balance of selfish in- ment is a selfish interest, they
terests, and that a government is treated it as such, and asked of it
necessary as an arbiter among no more than a selfish interest can
these interests, but that the gov- give. But the coddled young re-
ernment must never be trusted, former of our day, looking out on
must be constantly watched, and his world, finding merit often un-
must be drastically limited in its rewarded and chicanery trium-
scope, because it, too, is a selfish phant, throws prudence to the
interest and will automatically be- winds and grasps blindly at any
come a monopoly in crime and de- weapon which seems to him likely
vour the civilization over which it to destroy the purse-proud haves
presides unless there are definite and scatter their belongings
and positive checks on its activi- among the deserving have-nots,
ties. The Constitution is a monu- Now he is right in believing that
ment to our forefathers’ distrust the accumulation of too much
of the state, and the division of wealth and power in a few hands
powers among the legislative, ju- is a danger to his civilization and
dicial, and executive branches suc- his liberty. But when the weapon
ceeded so well for more than a he finds is economic planning, and
century in keeping the sovereign when the law he enacts sets up
authority in its place that our bureaus to run the nation’s busi-
government has become widely re- ness, he is fighting a lesser evil
garded as a naturally wise and by accepting a greater and more
benevolent institution, capable of deadly one, and he should be
assuming the whole burden of so- aware of that fact.
cial and economic justice, But
there was nothing natural or acci- Protection at Monopolistic Prices
dental about it. Our government A government is always ‘“or-
has done so well because of the ganized to sell protection to the
wary thinking that went into its inhabitants of a limited area at
making. monopolistic prices.” The mem-
The thinking behind our Con- bers of a government are not only


===== PAGE 20 =====

18 THE FREEMAN October

in business, but in a business cial guardian, running their busi-
which is in continual danger of ness and making their decisions
lapsing into pure gangsterism, for them. This is statism, or
pure terrorism, and plundering, Stalinism, no matter who advo-
buttered over at the top by a cates it, and it’s plain treason to
hypocritical pretense at patriotic freedom.
unselfishness. The continent of
Europe has seen too many such Wards of the State
governments lately, and our own And life is infinitely less impor-
government is rapidly assuming tant than freedom. A free man
economic and social responsibili- has a value to himself and perhaps
ties which take us in the same to his time; a ward of the state
direction. Whatever the motives is useless to himself — useful only
behind a government-dominated as so many foot-pounds of energy
economy, it can have but one re- gerving those who manage to set
sult, a loss of individual liberty in themselves above him. A people
thought, speech, and action. A which has lost its freedom might
guaranteed life is not free. Social better be dead, for it has no im-
security is a step toward the abro- portance in the scheme of things
gation of the individual and his except as an evil power behind a
absorption into that robot which dictator. In our hearts we all de-
he has invented to serve him — the gspise the man who wishes the state
paternal state. to take care of him, who would
When I have said this to some not rather live meagerly as he
of the youthful proponents of pleases than suffer a fat and regi-
guaranteed existence, I have been mented existence. Those who are
met with the argument that men not willing to sacrifice their lives
must live, and that when the eco- for their liberty have never been
nomic machinery breaks down, worth saving. Throughout remem-
men must be cared for lest they bered time every self-respecting
starve or revolt. This is quite true man has been willing to defend his
and nobody is opposed to helping liberty with his life. If our coun-
his fellow man. But the greatest try goes totalitarian out of a soft-
enemies of democracy, the most headed humanitarian impulse to
violent reactionaries, are those make life easy for the many, we
who have lost faith in the capacity shall get what we vote for and
of a free people to manage their what we deserve, for the choice is
own affairs and wish to set up the still before us, but we shall have
government as a political and so- betrayed the race of men, and


===== PAGE 21 =====

1962 THE GUARANTEED LIFE 19

among them the very have-nots Professional Planners
whom we subsidize. Qur Western All these dangers were foreseen
continent still has the opportun- by the political leaders who put
ity to resist the government-led our Constitution together after
rush of barbarism which is taking the revolution against England.
Europe back toward Attila, but The Constitution is so built that
we can only do it by running our while we adhere to it, we cannot
government, and by refusing to be governed by one man or one
let it run us. faction, and when we have made
If the millions of workingmen mistakes, we reserve the right to
in this country who are patiently change our minds. The division
paying their social security dues of powers and the rotation of
could glimpse the bureaucratic offices was designed to protect us
absolutism which that act pre- against dictatorship and arbitrary
sages for themselves and their authority. The fact that there are
children, they would repudiate the three branches of government
whole monstrous and dishonest makes for a salutary delay and a
business overnight. When a gov- plessed inefficiency, the elective ro-
ernment takes over a people’s eco- tation makes for a government not
nomic life, it becomes absolute, py cynical professionals, but by
and when it has become absolute, normally honest and fairly incom-
it destroys the arts, the minds, the petent amateurs. That was exactly
liberties, and the meaning of the what the wary old Founding
people it governs. It is not an ac- Fathers wanted, and if we are wise
cident that Germany, the first ye shall keep it, for no scheme
paternalistic state of modern Eu- jj, the history of the world has
rope, was seized by an uncontrol- gycceeded so well in maintaining
lable dictator who brought on the the delicate balance between per-
second world war; not an accident gon4) liberty and the minimum of
that Russia, adopting a centrally ,yuthority which is necessary for
administered economy for human- the free growth of ideas in a
itarian reasons, has arrived at a tolerant society. But we shall not
tyranny bloodier and more abso- keep our Constitution, our free-
lute than that of the Czars. And dom, nor our free elections, if we
if England does not turn back let our government slide gradually
soon, she will go this same way. into the hands of economic plan-
Men who are fed by their govern- ners who bribe one class of men
ment will soon be driven down to after another with a state-admin-
the status of slaves or cattle. istered dole.


===== PAGE 22 =====

20 THE FREEMAN October

Since Knickerbocker Holiday of Mark Hanna. We march stead-
was written, the power of govern- ily toward the prefabricated state.
ment in the United States has Yet we see clearly that in Eng-
grown like a fungus in wet land, socialism turns rapidly into
weather, price supports and un- communism, and that in Russia
employment benefits and farm and Yugoslavia, communism gives
subsidies are the rule, not the ex- neither freedom nor security. The
ception, and our government has guaranteed life turns out to be
turned into a giant give-away pro- not only not free — it’s not safe.
gram, offering far more for votes Do we want a gangster govern-
than was ever paid by the most ment? That's what we're going
dishonest ward-heeler in the days toward. @®

Reprints available at 5 cents each.

| ivan @ LIBERTY The Great Learning

THE ANCIENTS who wished to illustrate illustrious virtue through-
out the empire, first ordered well their own States. Wishing to
order well their States, they first regulated their families. Wish-
ing to regulate their families, they first cultivated their persons.
Wishing to cultivate their persons, they first rectified their
hearts. Wishing to rectify their hearts, they first sought to be
sincere in their thoughts. Wishing to be sincere in their thoughts,
they first extended to the utmost their knowledge. Such exten-
sion of knowledge lay in the investigation of things.

Things being investigated, knowledge became complete. Their
knowledge being complete, their thoughts were sincere. Their
thoughts being sincere, their hearts were then rectified. Their
hearts being rectified, their persons were cultivated. Their per-
sons being cultivated, their families were regulated. Their fami-
lies being regulated, their States were rightly governed. Their
States being rightly governed, the whole empire was made
tranquil and happy.

CONFUCIUS (656-479 n.C.)


===== PAGE 23 =====

FREEDOM FROM UNIONS

or — THE EXORBITANT PRICE oF uo’ GAINS.

The streets were full of idle men
And frost was in the air.
Old Kaspar stacked the supper plates
And settled in his chair, vl
While Peterkin and Wilhelmine /
Look at the futurama screen.

They watched some workers park their cars
And never hesitate
To cross the union picket line
Outside the factory gate;
While union bosses standing there
Were wringing hands and tearing hair.

“Why aren’t those workers beaten up?”
The little children cried.

“They've lost the look and smell of fear,
Old Kaspar soon replied.

“No longer do they live in dread

Of loss of job or broken head.”

2”

“There was a time,” said Kaspar then,
“When many workers’ pay

And right to work at chosen jobs
Were under union sway;

And few were those who dared refuse

To pay the soaring union dues.”

“Did no one ever try to free
The men the unions caught?”
“It was a time,” Old Kaspar sighed,
“When other folks were taught
To hold the union picket lines
As sacred as religious shrines.”

“What happened, then,” asked Peterkin,
“To set the workers free?”

“They simply took their freedom, Pete,
Because they came to see

How paltry was their share of gains

Against the weight of union chains.”

H. P. B. JENKINS
Economist, Fayetteville, Arkansas

21


===== PAGE 24 =====

COULD
AT &T.
RUN
the
POST OFFICE (r=

aa —
re oo h
“Custom has so strongly

imbedded the monopoly myth in our minds
that the mere suggestion of a private
postal system seems incongruous.”

FRANK CHODOROV!

MELVIN D. BARGER

IT IS PROBABLY one of the miracles economics and political science in-
of the past half-century that the structors to be fundamentally sus-
giant American Telephone and picious of A. T. & T. and other
Telegraph Company has escaped privately-owned utility monopo-
direct government ownership. lies.

It is miraculous because such a Also, many people have been
tidal wave of printed and spoken conditioned to oppose and fear
propaganda has been produced in “bigness” in privately-owned en-
criticism of the mighty telecom- terprise, and of course, A.T. & T.
munications firm, while oncoming is indeed “bigness.” Also, there is
generations of future leaders have substantial support throughout

been carefully taught by their 1 Frank Chodorov, The Myth of the

Mr. Barger is a public relations ropresenta- Post Office, Henry Regnery Company,
tive in Jackson, Michigan. Hinsdale, Illinois, 1948,

22


===== PAGE 25 =====

1962 COULD A. T. & T. RUN THE POST OFFICE? 23

the country for the view that have so few done so in the case of
“natural” monopolies ought to be the Post Office? Since it is intel-
publicly owned. lectually respectable to argue for
Finally, almost every advanced a government takeover of telecom-
nation in the Western world has a munications services, why hasn't
government-owned and operated it been just as respectable to ar-
telecommunications system, with gue for an opposite viewpoint —
the exception of large systems in say, for example, a private take-
Italy, Spain, Denmark, and Fin- over of certain faltering govern-
land.2 At least four countries — ment businesses?
Great Britain, France, Holland,

and West Germany — have com- The Postal Crisis

bined postal and telephone serv- Such a faltering business is the
ices, with whatever advantages U.S. Post Office Department,
this is supposed to produce. which drifts from one crisis to an-

Yet 1962 finds A. T. & T. safely other without apparently finding
in private hands, though tightly the roots of its problems. There
regulated by the F.C.C. and nu- has been mounting criticism of its
merous state commissions. operations in recent years. “The

But an even greater miracle is American public and American
that few people of influence have business have been paying higher
ever argued for private ownership and higher prices for worse and
and operation of the U.S. Post Of- worse postal service,” said the
fice. Perhaps many people assume trade magazine Advertising Age
that a private postal system is im- in May 1960, in a critical editorial
possible. Others may believe it is opposing further rate increases.
impractical. And some may even Reader's Digest published an ar-
think it is unpatriotic. Yet there ticle in May 1957 entitled “Our
have been many times when per- Horse and Buggy Mails,” with an-
sistent men have argued with suc- other the following year signifi-
cess against ideas which were gen- cantly called “How To End Our
erally assumed to be impossible, Post Office Mess Permanently.”
impractical, or unpatriotic. Why And Newsweek, in a special na-
SE tional report in the July 13, 1959
LEE mer a aay Tow, issue, observed that the U.S. mail
graph Company, 195 Broadway, New 1S slow because of *antediluvian
York. It should be noted that the Italian methods and equipment, human

telephone system is government-owned erro a -
but privately-operated, while the Fin- system plagued by bu

nish and Danish systems are mixed. 3 The Reader’s Digest, February 1958.


===== PAGE 26 =====

24 THE FREEMAN October

reaucracy and petty politics.” It a profit-making corporation, its
was further noted in the same ar- service record has greatly sur-
ticle that the service was so bad passed that of the Post Office,
that one in four letters was being which has often excused its defi-
delayed, sometimes for days, en cits on the grounds that its pur-
route or at a delivery point. Worse pose is public service rather than
yet, it was stated that the Post profits.

Office’s problems were getting The Bell System had a humble
worse, and seemed to be outrun- origin shortly after the first pat-

ning its solutions. ents were issued to Alexander
oo Graham Bell in 1876 and 1877,
A. T. & T's Continuing Success and has since become the colossus

In sharp contrast with the Post of American public utilities. A. T.
Office’s dimming image is the Bell & T. has assets of $21.7 billion,
System, whose corporate parent is employs 750 thousand persons, and
The American Telephone and Tel- has 63 million telephone installa-
egraph Company. It has been at- tions." Although the country is
tacked as an overpowerful monop- peppered with small independent
oly, threatened with punitive leg- telephone companies and subsidi-
islation, subjected to rigid con- aries of the substantial General
trols, and regularly scrutinized by Telephone and Electronics Corpo-
state and federal agencies. But for ration, A. T. & T. commands the
all the stumbling blocks strewn in industry with all but 16 per cent
its path, A.T. & T. has consistent- of domestic telephone installa-
ly provided the finest telephone tions. And by possessing a com-
service in the world, a fact that plex nationwide network of inter-
even its statist-minded critics connecting telephone lines, A.T. &
freely concede.* Ironically, though T. has a part in all but a very
"4 Horace Coon, whose American Tel Small percentage of all long dis-
& Tel was itself a book highly critical of tance calls.

A T. & T., on many counts, wrote: “It

is generally conceded, even by its critics, .
that (A. T. & T.) has given the United A Management Genius

States the ey anon systom in the The pattern for success was es-
orld, in nearly every respect superior . .
to any of the government-owned systems tablished early in the Bell Sys-

in Europe.” Horace Coon, American Tel tem’s history by Theodore N. Vail,
& Tel. New York: Longmans, Green and . PU -
Co., 1939, (It should be noted that one of the company’s early found
Coon’s observation preceded A, T. & T.'s —
tremendous growth and improvement of 5 1961 Annual Report, AT, & T. All
services in the post-World War II AT. & T. statistics, unless otherwise
period.) noted, are from this report.


===== PAGE 27 =====

1962 COULD A. T. & T. RUN THE POST OFFICE? 25

ers who headed the corporation in part when it controlled the com-
its infancy, dropped out for a pany briefly during the closing
time, and returned in 1907 to push days of World War I, finally
AT. & T. toward its present level killed, for the time being, most of
of greatness. Vail had been a rail- the political impetus for govern-
way mail supervisor before step- ment ownership.b
ping into the fledgling telephone Four decades after Vail, the
business, and was apparently the case was never better for his be-
first man to have thought of hav- lief that he could build a service
ing railway mail clerks sort the vastly superior to the world’s na-
mail on trains so that it could be tionalized systems. A.T. & T. to-
distributed to the post offices with day has a great depth of talented
a minimum of handling. A man- management, sound organiza-
agement genius who probably tional procedures, almost un-
could have succeeded in almost matched technical personnel, and
any business, Vail had a special comfortable reservoirs of financial
dedication to A. T. & T., and was strength. While we take most of
probably chiefly responsible for its services for granted, a little
the fact that the company never thought about the Bell System
passed into government hands would reveal that not only has it
even though telecommunications “kept up” with the progress of
systems the world over were being the economic environment in
nationalized. which it operates, but it has also
Vail recognized as early as spearheaded much of that prog-
1909 that pressures for govern- ress. A large amount of today’s
ment ownership were soon to business and government affairs
arise. In 1912 telecommunications is handled smoothly and quickly
systems in Great Britain were na- because the Bell System had the
tionalized, a move which aroused technical ability to create faster
sentiment for a similar action in long distance services and such
the U.S. But, Vail believed that improvements as direct distance
A. T. & T. could survive and pros- dialing, wide area telephone serv-
per even under government regu- ices, teletype equipment, and
lation, and could resist a govern- CENTREX systems (permitting
ment takeover if he could build a dialing to and from extension
system far better than any of the phones in large organizations). It
nationalized systems in other would be almost intolerable to im-
countries. This, plus a rather inept agine the state of our present
performance on the government’s “6 Horace Coon, op. cit.


===== PAGE 28 =====

26 THE FREEMAN October

economy and government if the ata minimum, and it wasn’t until
art of telecommunications were after the Civil War that the an-
to be set back ten, twenty, or nual postal deficit became a re-

thirty years. current pestilence.

Today the Post Office is the gov-
The Constitutional Monopoly ernment’s largest business, with
A Politics-Oriented Organization 580,000 employees, 35,000 post

Meanwhile, the Post Office had offices, and annual revenues of
been in business almost a hundred $3.4 billion. Its visible deficit in
years before the Bell System was 1961 was more than $800 million,
born. It certainly had an auspi- and since 1946 its cumulative
cious beginning, for Article I, deficits have been almost $8.5 bil-
Section 8 of the U.S. Constitution lion. It does not pay income taxes,
documented the government's of course, so a realistic analysis of
right to own and operate a Post Post Office operations should ac-
Office: The Congress shall have tually add to the present deficit an
power to establish post-offices and estimated amount that the De-
post-roads. In 1790, the first full partment would have paid into the
year after the Constitution was federal treasury if it were a priv-
ratified, the Post Office had reven- ate corporation and earned aver-
ues of $37,935, against expendi- age profits. The loss to the gov-
tures of $32,140. This was obvi- ernment units in taxes may actu-
ously a profit, and for good reason: ally be the Post Office Depart-
it is doubtful that the frugal citi- ment’s largest “deficit,” for as we
zens of those lean years would shall see later, American Tele-
have tolerated serious postal defi- phone and Telegraph Company
cits under any pretext. For many has paid far more to federal,
years after that there were pri- gtate, and local tax collectors than
vate mail carriers competing very the total of its net earnings.
successfully with the government, Since even a casual examination
but by the middle of the last cen- yields evidence that our telecom-
tury most of them had been firmly munications industry towers head
legislated out of business. In those and shoulders above our postal
years postal operating losses were service, the next problem is to dis-

cover why. And while many rea-
7 Annual Report of the Postmaster y y

General, U. S. Post Office Department, SONS are often given to explain
Washington, D. C., 1961. Unless other- why the Post Office is the way it

wise noted, all subsequent statistics con- }
cerning Post Office operations are from is, few go further than to plead

this report. for changes in rates, use of auto-


===== PAGE 29 =====

1962 COULD A. T. & T. RUN THE POST OFFICE? 27

mated equipment, higher wages, former.”® And the Newsweek arti-
greater employee efficiency, and cle previously cited took note that
similar so-called solutions. Yet though the Post Office Department
what has prevented the Post Office needs technological improvement
from improving its operations almost desperately, “there is little
regularly and without fanfare, as incentive to replace postal clerks,
might any other business? Does who can vote, with machines,
it take an act of Congress to bring which can’t vote.”

these things about?

Yes, it does. And this is the Political Pressures Call the Tune
core of the Post Office problem: At no time does this political
The Post Office is a politics- Sensitivity of the Department be-
oriented institution, and has been ~COmMe more obvious than when a
ever since the day our Constitution Proposed postal rate increase
first breathed it into life. As a comes before Congress. Tremen-
politicalized enterprise, it will for- dous pressures are imposed on
ever do an adequate or superior Congress by those who have an in-
job of satisfying its political mas- terest in preventing the increases
ters in Congress and the White on the classes of mail they use.
House, but under these circum- This year the second and third-
stances it hasn't the slightest class users have bitterly de-
chance of turning in an operating nounced the fact that proposed
performance that would be con- increases for first-class mail are
sidered superior by business proportionately less than on the
standards. The Department is far Others. Yet as one looks at the
more sensitive to the most domi- bewildering rates system used by
nant political winds than it is to the Post Office Department, it is
the need for “breaking even” or clear that political considerations
giving users “better service.” This made it expedient to give second-
is, in fact, its central malignancy. class users (i.e, paid circulation
“When the politics motive super- periodicals) extremely low rates
sedes the profit motive,” wrote and third-class mailers (usually
Frank Chodorov, “the direction business organizations) special
and intensity of effort is com- advantages?
pletely altered. The officeholder’s "5 Chodorov, op. cit.
bread is not buttered by a cus- 9 To use only two examples. It is safe
tomer but by a higher-up, and te say that the rates and handling of all
hence his natural inclination is to mail and every type of delivery (such

as R.F.D.) have been influenced by polit-
cater to the latter, not the ical forces.


===== PAGE 30 =====

28 THE FREEMAN October

If one doubts that political con- fact, a partial cause of it? We
siderations shape the running of expect the Post Office to be effi-
the Post Office, he should check cient and modern and flexible;
some of the national magazines yet we have imposed on it a 535-
earlier this year and read the edi- man “board of directors” that has,
torials and articles which they itself, often used its free postal
ran in their own interest in bitter privileges shamelessly.
opposition to the proposed in- There's nothing wrong with
creases on second-class matter. the Post Office that couldn’t be
For example, in an article entitled corrected quickly if we really did
“Second-Class Mail Rates Can have the courage and good sense
Ruin First-Class Magazines,” in fo put it on a “businesslike basis.”
The Reader's Digest of this past This would actually mean cutting
April, the magazine summed up it loose from all political control
its case against higher rates for whatever, and releasing it from
newspapers and magazines by government ownership, for the
urging readers to make their distressing truth is that the gov-
views (that is, The Reader's Di- ernment cannot resist meddling
gest’s views) known to their con- with that which it owns. In the
gressmen, case of the Post Office, this polit-

While again scoring the De- ical meddling has led the Depart-
partment for its inefficiencies and ment in directions which no pri-
obsolete methods, as it had done vate business could travel and re-
some years before, the Digest main solvent.
failed to explain how the Post
Office got that way. It was said A Profits-Oriented Organization
that the Department performs Again in sharp contrast is
many functions which are unre- A.T.&T., which has been able to
lated to the carrying of mail and manage its affairs so that special
for which no payment is made. interest groups of customers
But isn’t it obvious that these aren’t at war with the company
functions must have at one time and each other. A. T. & Ts chief
or another been assigned to the advantage, among many others, is
Department by either the legisla- that it has the good fortune to be
tive or cxecutive branches of the a profits-oriented organization.
government, and that, therefore, It is still primarily a business
the very Congress to whom we organization and must earn profits
ave supposed to appeal for a solu- to survive at all. Its excellent
tion to the ‘postal mess” is, in earnings record also accounts for


===== PAGE 31 =====

1962 COULD A. T. & T. RUN THE POST OFFICE? 29

A. T. & T.s continuing growth limited by the reasonable speed at
and vigor. which man and machine can
In the years 1946-1961, A. T. travel. It is unfair, for example,
& T. earned profits of $934 bil- to say that because the Bell Sys-
lion. Out of this amount it paid tem can connect a New York
dividends of $6.6 billion, leaving caller with a San Francisco num-
$3.2 billion retained in the busi- ber in two minutes, or less, the
ness. This was part of the com- Post Office should deliver a letter
pany’s investment in its future. with similar speed. Moreover, the
Without these profits, there would Bell System with its automatic
have been little or no growth, for dialing systems and other crea-
additional capital for expansion tions is rapidly eliminating the
simply wouldn't have gravitated possibility of human error, while
toward a losing business. postal clerks are still forced to
Incidentally, the Bell System’s waste long minutes studying, for
revenues have also contributed example, Dlr, wel. and fi-
mightily toward the support of nally determining that this is a
government, for in the same pe- ccmmunication addressed to Jack-
riod it has paid out more than son, Michigan, and not Jackson,
$15 billion in local, state, and fed- Mississippi. Obviously, A. T. & T.
eral taxes.10 and che Post Office have com-
pletely different operating prob-

The A. T. &T. vs. the U.S. Post Office ems.

It can be argued that it is un- Still, it is fair to say that of
fair to attempt comparison of two dissimilar communications
A. T.&T. and the Post Office, systems, one is partially failing
since the methods of communica- us while the other seems destined
tion differ radically. A.T.&T. for greater achievements. It is
deals primarily with circuitry, fair to wonder how the delivery
which when installed can handle of written communications would
verbal messages instantaneously. have been handled if our national
Not so the Post Office, which traditions hadn't imposed on us
must transport solid objects over an ironclad government postal
great distances and is necessarily monopoly. Would the Postal Serv-
To Am . cy pe ice now be faced with mounting
obtained from Moors Puplie Uinits deficits? Would there have been
Manual, 1961, and Moody’s Public Utili- a long period of time when the
ties, February 20, 1962, published by service actually made no invest-

Moody’s Investor Service, New York. I ’
Totals were computed by author. ment for new buildings, as union


===== PAGE 32 =====

30 THE FREEMAN October

official William Doherty has same day of mailing in metro-
charged, due to the unwillingness politan areas? One final remark:
of Congress to appropriate money It is said that thousands of spe-
for this purpose ?!! Would a letter cial delivery letters are actually
carrier now earn a starting salary delivered by regular carrier, since
of $4,345 a year, with a 25-year no special delivery service exists
maximum of $5,605, or would at certain times in many com-
wages and salaries be much munities. Yet the person mailing
higher?12 Would the service be the letter has no practical way of
using such antiquated methods knowing this, and thus wastes
that as late as 1953, incoming his extra 30¢ postage.l* If a pri-
Postmaster General Arthur E. vate postal enterprise existed and
Summerfield could make the engaged in this dubious form of
shocking discovery that postal customer-deception, would govern-
clerks in Denver had to sort mail ment regulatory agencies not or-
out on the street because of der a full-scale investigation?
cramped building space?! Would

deliveries be faster or slower? A Marked Contrast

Would automated methods of It is, then, fair to say that
handling mail have been put into A.T.&T. gives excellent service
widespread use? Would it be pos- in its field, while the Post Office
sible to get letters delivered the is giving mediocre service that is
EE obviously incompatible with our
1038 and 1955 Congress failed to appro. Present state of economic develop-
priate as much as a single dime for the ment. It is fair to say that A. T.
construction of new postal facilities.” & T. operates efficiently, with a
A TT AT a Ay persistent attempt to cut costs
1960. Mr. Doherty, who is president of and improve its own organization,

the National Association of Letter Car- hile the Po fi ra i
ricrs (AFL/CIQ), credits Summerfield’s the . st Office ope tes with
plan of leasing postal facilities built by only a fair degree of efficiency,

private capital with having saved the often because Congress does not

system from absolute chaos. (Elsewhere :, : 3
in his book he is less complimentary appropriate capital funds. It is

toward the embattled postmaster gen- also fair to say that A, T. & T,,
eral of the Eisenhower administration.) despite its monopoly status, runs

12 Salary information obtained from : ar se
National Association of Letter Carriers, its affairs as competitively as any

AFL/CIO, Bulletin No. 1, January 2, Other U.S. enterprise, going to
1962. PE

13 Arthur E. Summerfield, U.S. Mail, 14 Floyd Clymer, The Post Office Di-
Holt, Rinehart and Winston, New York, lemma, Floyd Clymer, Los Angeles, 1960,
1960. page 166.


===== PAGE 33 =====

1962 COULD A. T. & T. RUN THE POST OFFICE? 31

great lengths to promote new tele- though it’s not certain that there
phone services, courteous treat- is any great advantage in combin-
ment of customers, and installa- ing the telecommunications and
tion of additional telephones in letter-carrying systems, despite
businesses and residences. But the example of Great Britain and
postal units do not seem to be others. However, it is clear that
competing with anybody, and somebody, if not A. T. & T., could
hardly appear to recognize that run it much better than the U. S.
it would be possible to increase Congress and President can, or
the department’s revenues by are allowed to by the political na-
hard-hitting promotional cam- ture of things. At some point in
paigns and programs designed to future government deliberations
give customers better service. It over postal policies, a hardy soul
is also fair to ask if it is even a ought to inquire into the reasons
moral thing for the federal gov- why the United States has the
ernment to maintain such an en- world’s best telephones and the
" terprise as the Post Office, or any Western world’s slowest mail-
business, using the power of the bags.’ The answers might cause
state to force citizens to subsidize some government official to say, in
a service which is of much greater a somewhat facetious manner,
benefit to some users than it is to “Hey, maybe we ought to turn the
others. All other businesses, mo- Post Office over to A. T. & T. and
nopolistic or otherwise, must rely see what they could do!”
on the customer’s voluntary pa- After the chuckles had sub-
tronage in order to survive. But gided, a few thoughtful persons in
in the case of the Post Office, the ,ttendance might conclude that
money which makes up its deficits this wasn’t a bad idea after all. ®
is taken from us against our will,
while federal police power pre- 15 At least in the metropolitan areas,
vents other competitors from en- according to The New York Times, No-
tering the field and giving us al- vember 27, 1955, U. S. News & World
ternate forms of letter delivery. Report, February 7, 1958, and News-
Could A. T. & T. run the Post week, op. cit. Some foreign cities (Lon-

. . . don, Paris, Berlin) have same-day de-
Office? Certainly it could, al- jivery.


===== PAGE 34 =====

An Average ;

SEX: MALE

JESS RALEY

ACCORDING to the latest tabula- may determine the fate of the na-
tion, I am not quite the average tion. I think it might be possible
U. S. citizen (sex male). to acquaint him with the facts of
To begin with, I'm several life; but to get an idea of the
months too old, and my contribu- workmanship required, let us take
tion to the total population is well a good long look at the material.
above average. My income is above Excessive taxes, lack of prog-
and so are my obligations. The car ress, and general injustice are the

is too new, but the house is too pximary subjects discussed.
old. (Thank goodness, they don’t First of all, Mr. Average Citi-
build them like that any more.) zen dislikes taxes: federal taxes,
Just how far from average those state taxes, county taxes, and city
things would place a man is any- taxes, including all fees and li-
body’s guess. censes. Of the many federal taxes,
Even though I am not quite the income tax is his favorite tar-
average myself, I know this myth- get. It should be lowered drasti-
ical man well. He is not a bad fel- cally or, better yet, abolished en-
low, really; just unrealistic and tirely., How did they manage to
inconsistent at times. In baseball sneak that amendment through,
terminology Mr. Average Citizen anyway? Second, this is by no
has a lot on the ball himself, but means his only complaint with the
is a sucker for a low, outside federal government. He thinks it
pitch. This is the man whose vote should protect citizens better with
a larger and better equipped army,

Mr. Raley is a free-lance author, speaker, .
philosopher from Gadsden, Alabama. navy, and air force. All elements

32


===== PAGE 35 =====

1962 AN AVERAGE CITIZEN : SEX MALE 33

of national defense should be up-dating of state orphanages is
stepped up along with scientific very real. The state should in-
research. There should be bigger crease the size and personnel of
and better satellites and a space industrial schools at least three-
platform. No expense should be fold to obtain the best results.
spared to insure our arrival on Successful rehabilitation of juve-
the moon and points “moonward,” nile delinquents should be stepped

well ahead of the competition. up.
State Taxes County Collections
State taxes are excessive, op- The county doesn’t collect an in-

pressive, and unreasonable. The come tax, but manages to do quite
state has a sales tax, income tax, well for itself with assorted prop-
tobacco tax, and gas tax, just to erty and privilege levies. Why the
name a few of the more irritating. county should need an ever-in-
Honestly, at the rate his state col- ‘creasing amount of money is well
lects taxes, he wouldn't be sur- beyond the understanding of a
prised at any time to hear that mere citizen. He is quite insistent,
the Treasury vaults had burst and however, in his demands that the
disgorged century notes all over county build a new courthouse,
the Capitol lawn, raise county employees’ salaries,

Mr. Average Citizen has an- and double the remuneration for
other, even larger, bone to pick jury duty. If he must pay taxes,
with the state. It’s a crying shame the collector’s staff should be in-
that the people can’t have more creased substantially —standing in
and better schools, hospitals, line adds injury to insult. The
roads, docks, state parks, and sheriff’s office is inadequately
game and fish conservation. staffed and equipped. The person-
Teachers are underpaid, highways nel here should be increased,
are inadequately patrolled, and transportation modernized, and
prisons are obsolete. State old-age this office should avail itself of all
and disability pensions to the so- the latest data concerning crime
called hardship cases are too dif- detection and prevention. Many
ficult to obtain and shamefully roads and bridges within the coun-
small. Needed are more spacious ty’s jurisdiction are obsolete. They
and better equipped mental insti- should be repaired or rebuilt at
tutions with more resident doc- once — especially those which Mr.
tors and psychiatrists. The need Average Citizen has occasion to
for complete reorganization and drive on.


===== PAGE 36 =====

34 THE FREEMAN October

The whole county school system support the movement for renova-
is a mess — worse than that —it’s tion of the municipal auditorium.
a disgrace. Classrooms are obso- Existing facilities must be en-
lete and crowded. Lighting, heat- larged and at least three new ele-
ing, and ventilation are well be- mentary schools, two new high
low par, and the school libraries schools, and one new college must
are far from complete. Mr. Av- be built each year if children are
erage Citizen contends that the to be properly educated.
county should launch a school
building program at once. Qld Average Citizen Too Busy
buildings should be completely de- To Be Concerned

molished and larger modern plants The actual procurement and
erected in their stead. maintenance of all these improve-

ments is of little concern to Mr.
City Costs Average Citizen. The-powers-that-

Last, but by no means least, be asked for their jobs, let them
there are municipal taxes. The work out the details. As for him-
city seems to have clamped a few self, supporting four governments
mills or a few cents (several dol- requires so much of his meager
lars in some cases) on all the income, the proverbial wolf is for-
items embraced by the other three ever gnawing at the portals of his
and added quite a few of its very dilapidated domicile. It has prob-
own. Mr. Average Citizen is pas- ably occurred to him quite often
sionately opposed and pledged to to shoot the varmint and sell its
fight for the repeal of the whole hide to relieve his financial dis-
works, right down to the last mill. stress. But alas, he can’t afford to

As a public-spirited citizen, he avail himself of this pleasure. To
will fight; if necessary, lead the do so would require a hunting li-
fight for more and better equipped cense, trapping license, fur ship-
playgrounds, pools, and recreation per’s license, and state shipping
centers. There must be more and tags, state and county privilege
better equipped fire stations, a license, and a city permit,
new city hall, and several branch Thirdly, Mr. Average Citizen is
libraries, Many streets need re- wholeheartedly opposed to any-
surfacing, storm sewers are inade- thing tainted with injustice, no
quate, and there aren't enough matter how remotely. Graft, “pull,”
traffic cops during “rush hours.” “ins,” “outs,” corruption — every-
He is ready to head a committee thing with a semblance of unfair-
for a new, modern hospital and ness or dishonesty is noisome to


===== PAGE 37 =====

1962 AN AVERAGE CITIZEN: SEX MALE 35

him. Kickbacks, ticket-fixing, and hibit someone gaining an advan-
backscratching is a disgrace and tage; if “ins” with the top brass
should be stamped out. A social just can’t be eliminated, then he
system wherein justice is truly will battle skillfully with every
blind and no man enjoys an ad- weapon at his command to make
vantage over his neighbor — that certain that the person obtaining
is what he is working for. Mean- such an advantage is ye olde tax-
time — if the-powers-that-be insist hating, justice-loving, crusader
on favoring a few chosen ones; if for progress — Mr. Average Citi-
it is absolutely impossible to pro- zen. @®

EpwARD P. COLESON

TH E GRAVY TRAIN

A Proposal to Stop and look after themselves, made
Piling Burdens on an Already America the great nation it is,
Overloaded Conveyance, has been, and can remain. But a
multitude of Americans will have
LET'S WRECK the “gravy train” be- to rise with “firmness in the
fore it ruins our country. Inde- right” if this nation is going to
pendent, self-reliant men and survive.
women, who were willing to stand The facts are almost overwhelm-
on their own feet, do a day’s work, ing. Starting from depression
days the list of federal dependents
.slight condensation from an article which ap- Five years ago Senator Byrd said

peared in the August 1962 issue of The Flying es
A magazine of the Aeroquip Corporation. that 37 million people were then


===== PAGE 38 =====

36 THE FREEMAN October

receiving federal payments. To ance is already seriously over-
these would have to be added an loaded.

unknown number of relatives plus The resulting spectacle reminds
a good many others who were the writer of a little narrow gauge
benefiting indirectly from gov- train he once boarded out in the
ernment handouts. The Senator bush in Africa. The coaches were

warned us “...the spread of gov- crammed with natives, bundles,
ernment paternalism is frighten- chickens, and pigs in the wildest
ing.” disarray until no one else could

even hang on. The only trouble
Clamoring to Get on Board was that when the train reached

But Americans are a compla- a hill, it couldn't make the grade
cent people and don’t frighten and the passengers had to pile out
easily—certainly not as long as the and push. But our fellow Ameri-
stream of checks from Washing- cans don’t want to be inconven-
ton continues. Indeed, many more ienced: they expect a streamlined,
have boarded the “gravy train” in air-conditioned ride all the way
the last five years and there is an through—no pushing for them ex-
ever-increasing queue of would-be cept crowding to get more bene-
passengers jostling one another fits. And in this space age they
for the best position in the wait- see no reason why it shouldn’t be
ing line. Apparently almost the possible.
entire population is clamoring to
get on board. Nonproductive Government

The resulting situation is ridic- The simple truth is that gov-
ulous and would be funny if the ernment is not productive: we, the
future of our country were not at people, must support ourselves
stake. Seemingly no one is im- plus Uncle Sam and all his poor
mune. The educators of the nation relatives. But, as many of us have
who ought to know better are noticed, often Uncle’s hangers-on
pleading for their share of the seem more prosperous than the
federal bounty as a right and a rest of us, and parasitism no
good many others can think of longer carries even a stigma: it
equally convincing reasons why has become a way of life. The
they should be included. Certainly net result is that the decreasing
the rest of us could just as logic- number of producers find it
ally demand “reservations” as harder and harder to maintain
those already “on board,” but the themselves and all the free
practical fact is that the convey- loaders, until they too are tempted


===== PAGE 39 =====

1962 LET'S WRECK THE GRAVY TRAIN 37

to give up the struggle and run to by hiring ourselves (to the gov-
Washington with a tin cup like ernment) to rivet their chains
everyone else. Increasingly peo- on the necks of our fellow-suf-
ple are saying that we must have ferers.

federal help; we simply can’t make A large fraction of every

it on our own slender resources. budget simply goes to placate the
But as more people are subsi- pressure groups —buy our votes
dized the burden becomes even with our own money.
more impossible for the few in- Most of our fellow countrymen
dependent Americans who are still know this and have known it all
trying to go it alone. Nor does along. Their justification usually
government assistance offer more is that we might as well get our
than the illusion of relief: we pay share while it’s going around. In-
it all plus the cost of bureaucratic deed, in the tomorrows when the
inefficiency. Thomas Jefferson de- historian takes pen in hand to
scribed our present-day situation describe the Decline and Fall of
with prophetic eloquence: the United States, (should present
If we run into such debts, as trends continue) he will have to
that we must be taxed in our record the fact that the fault lay
meat and in our drink, in our mainly with good, well-meaning
necessaries and our comforts, people. The demagogues could
in our labors and our amuse- never have gotten their way had
ments . . . as the people of Eng- not a multitude of respectable
land are, our people, like them, people gone along because it was
must come to labor sixteen easy, profitable, and the thing
hours in the twenty-four, give being done—‘fellow travelers” on
the earnings of fifteen of these the road to ruin. Let’s each start
to the government for their a one-man campaign to close out
debts and daily expenses; and the federal give-away program by
the sixteenth being insufficient pledging ourselves to stand on
to afford us bread, we must ... our own feet and encouraging our
be glad to obtain subsistence friends to do the same. @®


===== PAGE 40 =====

lo Decide

JOHN C. SPARKS

Independent decision-making enables man to evolve toward
his destiny, but this is possible only after he unshackles him-
self from other men who would obstruct his right to decide. . ..

IN ONE of our best-known patri- cal arena? Or is there a deep and
otic songs, we sing of our “sweet genuine meaning of liberty and
land of liberty.” The implication freedom that is desirable and im-
is evident; it is good to live where portant to mankind?

liberty is present. But, how do we Philosophical reasoning as to
define liberty or know if we have the desirability of things usually
it? harks back to man’s purpose on

There is good reason to ask this earth. Though we humans may
question. As words, liberty and never fathom Ultimate Purpose,
freedom are in common use, es- the best clues afforded by Judeo-
pecially by politicians of nearly Christian and other religious phi-
every political persuasion. Each losophers suggest that each man’s
faction promises freedom through purpose is to achieve the highest
its program, and forecasts the degree of his own potential. With-
loss of freedom if the opposition in this framework, mankind’s fa-
wins. Though used to describe op- vorable evolvement occurs only
posing programs, the words al- as each individual progresses
ways are intended to connote toward his capacity. Evolution is
something highly desirable, Are the accumulated and combined
these words only something to be changes in all individuals.
lightly bandied about in the politi- Each man can achieve only to
—_ the degree that he successfully
Mr. Sparks is o business exccutive and past overcomes those obstacles lying

president of the Canton, Ohio, Chamber of Pipe . .
Commoerce. within and outside himself. To

38


===== PAGE 41 =====

1962 FREEDOM TO DECIDE 39

overcome internal obstacles is an a religious institution. The listing
important task requiring great could go on and on.
concentration, for human weak- One purpose of parenthood
nesses invite wastage of time and should be to provide knowledge
misdirection of effort. While diffi- out of personal experience and
cult to conquer, these inner ob- rules of good judgment so that a
stacles are nevertheless surmount- child, as he grows toward adult-
able by the individual without hood, may become more and more
anyone else’s consent. Our pri- capable in making decisions for
mary concern in this discussion, himself. A parent should gradu-
however, are those outside ob- ally introduce his child to the art
stacles that deny freedom to in- of making decisions. When adult-
dividual persons in their attempts hood is reached, the new adult
to attain their goals. These ex- may expect a parent to be avail-
ternal obstructions are numerous able for consultation; but deci-
and can block an individual's op- sion-making should rest with the
portunity to shape his own pur- new adult. It is better to rob a
pose. person of all his possessions than

External obstacles are of two to rob him of his right to make
kinds. In one the choice to reject decisions. One’s own maturity de-
or nullify the obstruction lies en- pends upon knowing how impor-
tirely within the person being ob- tant it is to refrain from violating
structed; in the other the obstruc- another’s right to decide for him-
tion arises out of the coercive ac- self. Surely, the same principle
tivities of some men toward applies to married couples, espe-
others in society, and the choice cially when one partner attempts
to reject or nullify the obstruction to degrade the other to a second-
does not lie within the person be- class obeyer of instructions.

ing obstructed. Another aspect of child develop-
ment merits mention. Many sports
Obstacles One May Avoid provide valuable training aside

Examples of those external ob- from the skill peculiar to that
stacles falling in the first classi- sport. Baseball instruction not
fication are the domination of an only teaches how to throw, field,
adult child by a parent, the domi- and bat, but also affords the op-
nation of a married person by his portunity to train young minds to
or her spouse, the domination of make a myriad of quick, individual
an employee by the employer, or decisions. The batter must deter-
the domination of its members by mine within a split second


===== PAGE 42 =====

40 THE FREEMAN October

whether to swing at a pitch or his creative abilities. The em-
not. Coaches constantly try to ployer or manager finds his job
alert defensive players to think overdemanding on his time and
ahead about the choice of play to energies, with results unsatisfac-
be made if the ball is hit to one tory even to himself. The com-
of them. This choice depends on pany fares poorly, like an eight-
whether the ball is hit sharply or cylinder automobile running on
is a slow roller, how many are one cylinder. Such a vehicle is
“out,” the number and position greatly handicapped in a race with
and speed of base runners, and other vehicles (competitors) mov-
many other factors, all of which ing along on full power. Obstruc-
must come into consideration tion of this kind may be as detri-
within a matter of seconds. mental to progress as any obstacle
Adults working with boys’ base- raised by uncooperative labor
ball teams would do a disservice groups. The problem also occurs
to the young players if the game within departments of many com-
were stopped at the end of every panies where the superior domi-
play to instruct each fielder con- nates his subordinates.!
cerning the choice that should be Some of the most difficult ex-
made on the next play. Dismal re- ternal obstacles originate within
sults could be predicted in that religious organizations formed to
case, not only in the scarcity of point the direction toward right
victories, but more vitally in the spiritual and moral citizenship.
lack of decision-making develop- Among their leaders are those
ment. zealous to determine, in one man-
In the area of employer-em- ner or another, choices normally
ployee relationship, occasionally falling to individual members.
an owner or manager of a busi- Such action presumes the mem-
ness attempts to make all deci- bers are either too immature, too
sions, not just those pertaining unintelligent, or too susceptible to
to over-all company policy and di- temptation to arrive at proper de-
rection. The employees conse- cisions themselves. If so, how are
quently are denied the responsi- they to gain maturity under a
bility of decision-making in their "1 For an interesting discussion of the
own assigned areas of activity. problem arising from the superior-sub-
The ill effects on all persons in- ordinate relationship, read “Freedom,
volved in such a situation can Authority, and Decentralization” by
. . Bennett E. Kline and Norman H. Mar-
readily be seen. The employee is

: - tin in Harvard Business Review, May-
denied the opportunity to develop June 1958.


===== PAGE 43 =====

1962 FREEDOM TO DECIDE 41

system whereby others decide mon theme sanctifying the right
moral questions for them? of each person to his life and
All of the external obstacles property — “thou shalt not kill....
discussed above contain a high de- thou shalt not steal.” Most gov-
gree of pressure persuasion. None ernments have laws against mur-
uses physical force to coerce the der and theft, often punishable
person being restricted, although by imprisonment or death.
the seed of force is there ready to While almost everyone is aware
bloom forth in all its ugliness. that it is unlawful both in the
The adult child, if he chooses, can eyes of God and of men for an in-
cast off the domination of his par- dividual person to murder and
ents. The spouse can sever the steal, a large number of society’s
marital bonds. The young baseball members have become blinded to
player can quit. The employee can the very same laws of God in situ-
resign. The member of a domi- ations alleged to be more complex.
neering church can resign alto- The same society that prohibits
gether or transfer to another any one of its members from
church. The final choice, as with stealing from another enacts laws
internal obstacles, remains with permitting some to take the prop-
the person himself — either to sub- erties of others. The same society
mit to the interference of others, that would never tolerate the en-

or to decide for himself. slavement of any one of its mem-

bers by another enacts laws with-

When Coercion Is Involved drawing freedom of choice from
The second category of external everyone.

obstacles differs from either of This is the area of deep con-

the previous obstruction group- cern. In the name of the public
ings, in that it involves physical good and the general welfare, so-
coercion (or its threat) against ciety through its organized gov-
one’s person. Refusal to comply ernment removes the freedom es-
with the directives of coercive sential to individual good and in-
force results in forfeiture of one’s dividual welfare. Without individ-
liberty or life or property. In this ual welfare there can be no gen-
area, freedom of individual choice eral welfare, no matter how sin-
can vanish unless virtually all cere are those who believe that as
persons agree to protect each a collective they are endowed with
other against coercion. more and better knowledge and

Running through the great re- wisdom than any individual. How
ligious and moral codes is a com- two boys, both of whom have


===== PAGE 44 =====

42 THE FREEMAN October

mastered the multiplication tables While people individually may
through the sixes, can together choose to invest or not in a private
have more knowledge about mul- power company, such choice is de-
tiplication than each has sepa- nied in the realm of government-
rately is difficult to reconcile with owned power ventures; everyone
logic. Yet this is the illogical must invest via taxation. Inves-
premise of those who expect gov- tors in a private company can sell
ernment to excel at any task un- out when they please, but not one
dertaken, and who even go so far of us can sell his individual “in-
as to withdraw from all private vestment” in the government's
persons or groups the opportunity Tennessee Valley power project.
to try to solve certain problems at There is no faith among interven-
hand.2 tionists that government can at-

One can only wonder at the tract and hold investors volun-
quality of such faith held by these tarily or successfully compete on
admirers of government interven- an equal basis. Faith is thin that
tion. Fans of a good football team must be supported by force of law.
usually urge a post-season cham-
pionship game with another win- Central Regulation and Control
ning team to test the skill of their A philosophy in favor of big,
favorites. They have faith that powerful government that substi-
their team can “take on” the best tutes centralized bureaucratic dic-
and come out victorious in a fair tates for the numerous separate
contest with the same rules apply- daily decisions of millions of in-
ing to both contestants. Not so dividuals, is a philosophy opposed
with the interventionist’s faith, to the growth and development of
however. He urges government each individual person in the
into the electric power field, for country. Knowing the whole can-
example, only on the condition not exceed the sum of its parts,
that there be special rules in favor we must realize that neither can
of government, such as relief from the growth and development of a
taxation, interest-free financing, nation exceed the growth and de-
and enforced investment. velopment of its individual citi-
EEE— zens,

2 “ .
Deliver. Mail." Essays on Liberty, Vol. The man who is required to pay
ume V (p. 890) and John C. Sparks, “If social security tax as a hedge
Men Were Free To Try,” Essays om against his old age is not likely to
Liberty, Volume III (p. 63). The Founda- develop respect for frugality. The

for Economic Education, Inc, Irving. 5
ton-on-Hudson, New York. wage earner whose federal income


===== PAGE 45 =====

1962 FREEDOM TO DECIDE 43

tax is deducted before he possesses ment houses in “slum clearance”
his wages is unlikely to develop a areas will eventually come to real-
deep patriotism or vigilant watch- ize that there is today a popular
fulness about the things his taxes preference for living in the coun-
go to support. A parent whose try rather than in the city, leaving
child is educated at public ex- too few tenants to return him a
pense, forced to attend and to be profit on his new apartment busi-
taught a state-directed curricu- ness. Developers of industrial
lum, is not likely to be concerned tracts on ‘“‘cleared” land may find
about thrifty use of educational that higher local taxation growing
funds or in the quality of instruc- out of the urban renewal program
tion — until one day he discovers is not an attraction to new indus-
that his child cannot read. Then try. Every such interference re-
the parent discovers that he him- moves, either by restraint or false
self has failed the parenthood lure of a government-conceived
course of life, largely because the bargain, the vital role of decision-
government education system had making by individuals.

removed his right and duty to

make decisions involving himself Socialized Medicine

and his child. Those citizens who clamor for
government programs to artifi-
Urban Renewal Problems cially control the field of medicine

The downtown merchants and unwittingly propose to rob their
landowners who receive the pre- self-reliant fellow citizens (and
sumed benefits of the federal gov- themselves) in numerous ways.
ernment’s urban renewal handout Since one step of government in-
will probably continue to overlook terference inevitably leads to fur-
the voluntary economic decisions ther “free” service and control,
made daily by their present and one can logically expect an early
former customers. These decisions proposal for government fixing of
point clearly to a new and chang- the maximum fees to be charged
ing world of shopping in which by doctors. This has happened in
downtown is no longer the prime other parts of the world. A ceiling
destination for the nation’s house- price is established by government
wife as she sets out to buy. The only when the legislators believe
artificial aid will merely numb the that the prevailing price or fee is
recipient into a false sense of well- too high. When they fix it at a
being while he is losing his cus- lower level, they hope that more
tomers. The builder of new apart- persons can afford the treatment


===== PAGE 46 =====

44 THE FREEMAN October

or operation. A delicate but ex- Tax Barriers to Progress

pensive operation, perfected at the High tax rates on earnings and
outset by a few highly skilled sur- excessive interference and control
geons, undoubtedly would be a is discouraging to those potential
blessing to many sufferers. The entrepreneurs who would start
relatively high fee does not pre- new businesses or expand existing
vent a person from choosing be- businesses in our country. Some
tween values; and if the restora- other nations of the world, mean-
tion of vision, hearing, or other while, have encouraged growth of
normal bodily function is worth industry there by reducing or re-
the sacrifice of less-valued posses- moving government intervention.
sions, the sufferer will choose the Growth and development occur
delicate operation in exchange for when people live in an atmosphere
the fee. of minimum restraint and maxi-

However, if government inter- mum freedom. The policy of in-

venes to fix fees, the choice to the terventionism threatens to sap the
sufferer will probably disappear. strength of our country, for prog-
The surgeon may find it more re- ress depends upon individual
warding, for example, to perform freedom to decide. Authoritarian
ordinary tonsillectomies than to obstruction emanating from
drain his nervous strength in an Washington and the state capitols
intricate operation on the inner erodes, deeper by the day, our
ear. This operation that has been liberty to choose.

restoring hearing to many grate- These are typical examples of
ful patients at an “open market” the countless infringements by or-
fee of several hundred dollars ganized society against the right
would not be available at all if of its individual members to make
$50 were set as a maximum fee by their own decisions. Few of the
government, A ceiling price al- foregoing examples show anything
ways leads to the disappearance but the good intent of those who,
of the product or service; and a through government, decide for
ceiling fee for the delicate ear others. Among the worthy objec-
operation would merely diminish tives are cheaper electric power,
its availability, with eventual loss certainty of saving for one’s later
of technical skill and doctor re- years, convenience of paying tax-
cruits in that specialized area. es, education for all, restoration of
Such restrictive action would deny the former downtown economy,
individual choice to many persons, lower surgical fees, and business
doctors and patients alike. regulation. But in the attempted


===== PAGE 47 =====

1962 FREEDOM TO DECIDE 45

attainment of these goals, incor- themselves without other persons
rect methods have been adopted, in society adding more obstruc-
resulting in lost goals, and worse, tions through the organized coer-
lost opportunities to be self-reli- cion of government,

ant, decision-making individuals. While a person may wish sin-
cerely to be his brother’s keeper,
The Uses of Adversity this activity should be confined to

Mankind favorably evolves only personal encouragement and mak-
as each man progresses. Every ing available such enlightenment
person has to do his own fighting as he has attained that may arouse
to achieve a worthy goal. As his brother to achieve his own
Charles de Gaulle put it: “The purpose. Coercion applied to him,
man of character finds an espe- even with a good intent and a
cial attractiveness in difficulty, worthy objective in mind, will do
since it is only by coming to grips nothing for his development and
with difficulty that he can realize may, in fact, corrupt both the co-
his potentialities.” It helps no one erced and the coercer.
to remove the consequence of a
person’s choice. Each individual The freedom to make decisions
must of his own choosing over- is the God-given right of every
come obstructions blocking his human being. Let us remove those
way toward fulfillment of his pur- governmental obstructions that
pose. Such obstructions are suffi- prevent independent choice, and
ciently numerous and difficult in restore the freedom to decide. @®

To What Can One Turn?

THEY SAY no tyranny can match that produced by the vote of a
majority. Many mad social schemes have been foisted off on the
American public under the guise that “the people voted that
way.” Already our people have been driven from choice to com-
pulsion, from self-reliance to the pitiable position of dependence.
In the end this is certainly a grim circumstance. Progressive
science proves that the future will be found in growth, not stag-
nation. Do we want the prodding road of self-determination and
creation, or the seemingly comfortable road of dependence and
slow degradation?
In. the absence of self-reliance and responsibility, to what can
one turn for true direction?
RALPH E. LYNE, Taylor, Michigan


===== PAGE 48 =====

PaurL L. PoIrROT

GOVERNMENT-PLANNED agricul- stem from decisions of the mar-
tural programs aren’t working out ket place. The market encourages
in the Soviet Union, or in Red conservation of any resource in
China, or in other countries under short supply and discourages fur-
totalitarian rule. For some reason, ther production of goods or serv-
the plans have gone awry and ices for which there may be a
there isn’t enough food to go dwindling demand. Rising prices
around. freely bid by consumers for a

The United States, at the same scarce resource tell present owners
time, is plagued with more food- to handle with care the supplies
stuffs and other farm products on hand while doing their best to

than consumers seem to want. produce or obtain more of the
Many Americans, who know item.
perfectly well why Russian and Declining prices, on the other

Chinese peasants are facing a hand, as reflected by decisions of
greater than ordinary threat of the market place, tell consumers
starvation, are thoughtlessly say- and producers alike that the item
ing: “We'd rather have problems is abundant, that possibly new or
of surplus than of scarcity. And increased use ought to be made of
let's not change the nature of our it, and that there is no great ur-
problems by aping the methods of gency to supply more of it at the
totalitarian governments that sub- moment. In other words, the mar-
stitute the decisions of bureau- ket place reflects at once the best
crats for the decisions of the mar- judgment of those buyers and
ket place.” sellers most closely concerned and

The leak in that line of “logic” most able to do something about
is that American surpluses do not the supply of and the demand for

46


===== PAGE 49 =====

1962 BUREAUCRATIC DECISIONS 47

any given item, whether it be rela- not — production being subsidized
tively abundant or relatively and use discouraged to provide a
scarce, If prices are free to fluctu- world-shocking example of wasted
ate and reflect the true market resources.

situation, the conditions of so- True, Americans are not starv-
called scarcity or surplus are ing for food. It is abundant. But
avoided. a man may hunger for many

things for himself and his family.
Shortages and Surpluses He lives not by bread alone. The

Both scarcity and surplus, then, stockpiles of wheat are plainly
are problems arising out of bu- visible. Seldom seen or seriously
reaucracy and totalitarian govern- contemplated are the frustrated
ment; they do not result from the ambitions and undeveloped alter-
free play of market forces. natives to which taxpayers might
Scarcity or surpluses stem from otherwise have devoted their en-
efforts to fix the price of a good ergy, ingenuity, and property. A
or service either lower or higher person might have preferred an
than might be agreed upon education for himself or his child,
through competition between will- or medical attention, or a home
ing sellers and buyers in a free of his own, or funds for research
market. Shortages are to be ex- and development of an idea, or
pected when prices are fixed too opportunity for rest and recupera-
low to bring forth a supply equal tion, or many other things more
to the demand. Miscalculations of important to him than a surplus
totalitarian planners direct re- of wheat. Who knows how many
sources into improper uses, and dreams — indeed, how many lives

starvation may be the price peo- —have been dashed by the tax-

ple then have to pay. gatherer and buried under those
If prices are artificially pegged mountains of surplus?

so high that production outruns Furthermore, some of our most

use, then surpluses develop. This, wasteful surpluses are not even
too, is a miscalculation, or mis- recognized as such — because the
direction of scarce and valuable government apparently has un-
resources; and the people pay, in limited use for all the moon shots
one way or another. or new aircraft designs or urban

Surpluses of farm products are renewal plans or “defense” high-
well known to Americans of the ways or other projects that irre-
mid-twentieth century — wheat, sponsible government spending
cotton, butter, peanuts, and what can develop. These are surpluses


===== PAGE 50 =====

48 THE FREEMAN October

in the sense that no individual held responsible and accountable
would willingly create or buy them for his own mistakes. He has no
in any such quantity at his own power to tax his more productive
expense. And such projects surely or thrifty fellow citizens to cover
divert resources from a thousand his personal failures and deficits.
and one other uses owners might By and large, his power to down-
have had in mind. grade society is limited to the
As a national average, taxes damage he can do to himself and
take about a third of personal in- his own; there is no way for him
come to support bureaucratic de- to pyramid a personal disaster
cisions. But a much higher pro- into a national calamity. And to
portion of income is taken, the extent that he is held per-
through graduated federal, state, sonally responsible, he has the
and local taxes, from the more maximum incentive to take cor-
creative and thrifty members of rective action at the earliest pos-
society. And these tax-inflicted sible opportunity. This is why
shortages that appear to hit hard- general shortages or surpluses do
est the wealthy few are, in reality, not and cannot develop under com-
borne by the poor who can least petitive private enterprise in a
afford trips to the moon. Our lives free market.
are thereby diminished, our po-
tentialities unfulfilled. But these Both shortages and surpluses,
are shortages or lost opportuni- whether Russian or Chinese or
ties for progress that no bureau- American, are a consequence of
crat could possibly recognize or substituting the decisions of bu-
measure; nor is it possible to hold reaucrats for the decisions of the
a bureaucrat accountable or re- market place. The same miscalcu-
sponsible for the impact of his ac- lation that results in a shortage

tions on others. or surplus of one thing adversely
oo affects the supply-demand rela-
Personal Responsibility tionship for other things, and

Now, it may be that, by your there’s nothing constructive that
standard, or mine, some individ- bureaucrats can do about it ex-
uals wastefully use their own lives cept to stand aside and let the
and their own resources. This, of market function. American bu-
course, is unfortunate. But, at reaucrats are no better than those
least, the life a private citizen of any other nationality when it
wastes is his own; it is his own comes to making socialism work.
fortune that he dissipates; he is It can’t be done. @


===== PAGE 51 =====

HOW Wirstodite KEPT THEIR INTEGRITY

RALPH NADER

“OPPOSE a public housing project!
You might just as well come out
against Mother and Social Secu-
rity.”

In the face of this typical de-
featist attitude, the rejection of a
federal housing project in three
successive referendums in Win-
sted, Connecticut, is of more than
local significance.

The issue first arose in this New
England mill town of 10,000 peo-
ple in December 1957 when the
local housing authority brought
before a Town Meeting a proposal
for fifty federal housing units.
Despite public apathy, the pro-
posal was defeated by the tiny
vote of 20 to 16. However, it was

re-submitted the following month and housing proponents petitioned

and approved by hy voice vote: I for another referendum, which
The townspeople seemed largely was held in August 1960. The

unconcerned through the next two
years of preliminary preparations
for construction. But in January
1960, a young housewife’s letter
in the local paper questioned the
whole idea of public housing,
pointed to some of the likely in-
jurious consequences, and berated
citizens for letting it be imposed

SE {

 [fwinsed

ove Harttord lL J
THX

upon them by default. In short or-
der, 550 signatures were secured
petitioning for a referendum on
the project; and when the vote was
counted in April 1960, after the
largest referendum turnout in re-
cent history, the project had been
rejected two to one.

By then, however, the local
housing authority had spent some
$20,000 of federal disbursements;

vote, even heavier than that of
April, again spelled a resounding
rejection.

The next move came when the
federal Public Housing Authority
called a meeting of selectmen and
local housing officials to offer what
it called a “redirected” program.
The earlier proposal had involved
Mr. Nader is a practicing member of the Bar 40 low-rent units and 10 units for
in Connecticut and Massachusetts and an in the elderly. The new alternative

49


===== PAGE 52 =====

50 THE FREEMAN October

was to reverse that ratio. And in The statute does not require
some unexplained way, the adop- that local housing authorities
tion of the “redirected” program make any housing surveys or
would also absorb the $20,000 other studies before proposing
otherwise to be billed against the public housing. When the law it-
town. self encourages rather than safe-

Their ‘“‘concern for the elderly” guards against abuse and bureau-
prompted the selectmen to call cratic dominance, freewheeling
for a new referendum. On April and irresponsible projects are
28, 1962, aroused but weary voters likely to result. Unrestrained by
rejected the program for the third legal standards and used to pub-
time — a most remarkable showing lic apathy, housing officials at
of integrity in the face of formi- federal, state, and local levels are

dable pressure. prone to assume that they need
only decree a project to have it

Enabling Legislation carried out.
In Connecticut, the state en- Under the U. S. housing law,

abling act for the creation of local the local authority is permitted
housing authorities by municipali- the use of federal funds to ac-
ties sets the official tone. The quaint the public with any hous-
statute declares that a serious ing proposal. Prior to each of the
slum condition exists, unrelieved first two Winsted referendums,
through private enterprise. This the authority drew upon federal
supposedly justifies the use of tax- funds for newspaper advertise-
collected funds to provide housing ments in behalf of its program,
accommodations. As in other for “progress,” “growth,” and
states, local housing authorities “sympathy for one’s less fortu-
are given autonomous status nate neighbors.”
which shields them from both the
town governing body and the Need for Information
voters and thus fails to encour- A group of citizens sought to
age responsible action. break the authority’s monopoly of
The statute is so drawn that significant facts, requesting the
the members of the housing au- selectmen to send the authority
thority, who serve without pay a list of questions concerning
(which can be very costly), may costs, consequences to the Town,
delegate all powers and duties to and the alleged need for the proj-
the executive director. This had ect. But, secure in its autonomy,
been done in Winsted. the authority rejected brusquely


===== PAGE 53 =====

1962 HOW WINSTEDITES KEPT THEIR INTEGRITY BEY |

this bid for public information. have low rent housing, hundreds
Such agencies can maintain their more want it. Anyone who wants
secrecy with near impunity, since Winsted to grow and progress
resort to the courts is expensive should vote for it.”

and time-consuming and seldom Some tenants who had recently
satisfactory, anyway, in suits argued with their landlord
against housing authorities. thought the project would be

To rely on the popular vote is “healthy competition.” Others fa-
not an entirely satisfactory alter- vored the project on the ground
native. A majority decision may that it would bring more people,
be unjust, though democratic, and especially elderly couples, to live
the rights of a minority may be in Winsted. Finally, it was widely
violated. Moreover, the right to asserted that private enterprise
vote is impaired in substance would not do the “job” (not de-
when there is not access to infor- scribed) so public funds had to
mation upon which to base judg- be used.
ment. Nevertheless, the referen-
dum appears to be the only re- Presenting the Evidence
maining practicable way for citi- To inform the townspeople
zens to check the actions of hous- about the nature of the housing
ing authorities. Giant govern- project was a difficult task. Com-
ment has outgrown the capacity mon conviction and concern
of the institutions designed to re- brought together a small number
strain its encroachments and of citizens from various occupa-
abuses. tions. They set out, each in his

The Winsted experience re- own way, to talk about the proj-
vealed much lack of understand- ect and why it should be rejected.
ing as to how the lives of people By telephone, personal contact,
are affected by public housing. letters to the local paper, they im-

“I am against public subsidies plemented their belief that right
but I want to get back our share will prevail when given half a
of the tax dollar instead of hav- chance to be heard. What was

ing it go to some other city.” their message?
“It’s free; so why not grab it?” 1.. Public housing involves an
“We pay high taxes, let’s get annual subsidy by local taxpayers
some of it back.” as well as an initial and con-

“This project doesn’t cost the tinuing subsidy by all taxpayers.
Town a red cent and it is being Federal housing projects pay 10
offered to us. Thousands of towns per cent of collected shelter rents


===== PAGE 54 =====

52 THE FREEMAN October

to the Town in lieu of taxes. This It will destroy the incentive to
amount is usually one-tenth of build new dwellings and to de-
what that property would pay in velop creative methods of private
local taxes were it fully taxable. financing.
Consequently, an extra burden is 3. Consider the proposed project
shouldered by private property in itself and the people who would
the form of a higher property occupy it—the drab, uniform,
tax. barrack-type existence. Living
2. Public housing pushes pri- under the government as landlord
vate housing toward deteriora- neither teaches children the value
tion and away from expansion. of property (which is one reason
The private sector must pay for why public housing deteriorates
public housing which, in turn, so quickly) nor produces the en-
takes away their tenants from vironment for the exercise of in-
whom income is derived to pay dependence, self-reliance, and,
the taxes in the first place. “It above all, citizenship. Any gov-
takes the fruits and chops the ernment intrusion into the econ-
roots,” as one old-timer phrased omy deters the alleged benefici-
it. The more public housing, the aries from voicing their views or
more difficult for owners to keep participating in civic life. The
their property in repair and the reason for this goes beyond the
weaker the incentives for people stigma of living in subsidized
to want to own their own homes. housing. When public housing be-
Instances were found where po- comes, as it has over the nation,
tential home owners held off buy- a source of additional patronage
ing until the outcome of the refer- for local distribution to contrac-
endums was known. tors, repairmen, and tenants, the
A vicious circle begins to op- free expression of human beings
erate; as private property is un- is thus discouraged.
dermined by public competition, 4, The local housing authority
private investment is discouraged was discredited by exposing its
by the threat of more public hous- policies to the public. It had made
ing. As local taxes increase, the no attempt even to produce a
prospects diminish for new or ex- housing inventory before spend-
panding industry. ing vast sums of money. It had
Public housing accentuates that never explored the possibilities of
which it professes to alleviate, any private housing solution to
creating conditions that will raise alleged needs, but always assumed
the call for more public housing. the public way. It viewed its func-


===== PAGE 55 =====

1962 HOW WINSTEDITES KEPT THEIR INTEGRITY 53

tion as obtaining more and more clearly described along with the
public housing in spite of repeated explanation of what private prop-
referendums to the contrary. In erty contributes to the Town. All
this way, it was trying to wear this required leg work, the tedi-
down the voter. ous but essential job of reaching
5. An average of 75 decent people and overcoming their
dwellings for reasonable rent were apathy and “can’t fight city hall”
shown to be regularly available attitudes.
in Winsted, where dwelling space
per capita had increased over the A Vital Lesson
situation ten years ago. A check If there is a single lesson to be
of housing facilities showed quite learned from Winsted’s experi-
the opposite of what the local ence, it is that freedom, to be
authority had been alleging with- meaningful, must find direct ex-
out substantiation. pression in practice as well as in
6. Finally, there was the appeal principle. Articulations of princi-
to principle. People were asked ples of liberty may provide the
whether Winsted should be like understanding, but these must be
other towns who had succumbed practiced to give freedom objec-
to the Lorelei of “getting our tive existence. Freedom is a proc-
share of federal funds before ess of being and becoming, in our
somebody else does.” Would Win- laws and their enforcement, in
sted be different by being respon- our institutions and the purposes
sible, by showing community in- for which they are used, in our
tegrity ? Is Winsted to admit that policies and methods and daily be-
the resourcefulness of its citizens havior. The faster our way of life
has reached the low level of rush- changes, the greater the danger
ing, hands unfolded, to the serv- of service state dominance and
ice state? It was discovered that the greater the need to strengthen
holding people to high standards the “tools of freedom.” Principles
can bring about an encouraging have their noble pedestal in man’s
response. life but to defend their living sub-
In summary, the approach em- stance requires continual citizen-
ployed to defeat the repeated on- ship in action. One must act, as
slaughts of public housing pro- well as articulate; and in each
ponents was to explain the cost, community the success with which
the. abuses, and the consequences these are fused will spell the gain
to the Town. The steady bit by bit or the loss of the blessings of
erosion of private property was liberty. ®


===== PAGE 56 =====

To Help a
Neighbor

GLENN L. PEARSON

ON A coLD, windy, early autumn loaned some money. He was able
day some fifteen years ago, a dis- to borrow the rest of what he
astrous fire struck my neighbor's needed on his own credit from
farmyard. It destroyed all of the regular lending agencies.
feed this dairyman had stored to His church loaned rather than
carry his cattle through the seven gave the money, and then only
months until he would begin to after he had exhausted his own re-
reap again. It burned his ma- sources, because the philosophy of
chinery, even killed a few of his the church is that men should be
animals. He had no insurance, and as self-reliant as possible. After
could not continue on his own re- all, the fire was his responsibility:
sources alone. Yet, he was soon it was caused by faulty wiring.
back in business, on the way to his The loss was his fault: he should
former independence—without gov- have been insured. It would not
ernment subsidy! add to his stature as a man to let
How was this done? Through him think that, in some mysteri-
private charity and regular busi- ous way, something called “so-
ness channels. His neighbors im- ciety” was responsible and should
mediately gave him enough feed Pay.
to last two or three months. They An important moral of this
helped with the extra chores he story is that, contrary to the ugly
faced due to loss of his milking suspicion of the socialist mind,
facilities. His church, through the there are people who will help
voluntary contributions of his their fellow men voluntarily. And
neighbors in a broader sense, everybody benefits by it: the
—_— helped ones appreciate the generos-
ne Cai” Raligious Tnscruciion at ity of their neighbors and seek to
Brigham Young University. return the favor in kind; the

Ilustration: A. Dovaney, Inc.,, New York.

b4


===== PAGE 57 =====

1962 TO HELP A NEIGHBOR 55

helpers know a joy that comes only The fire started before dawn one
from voluntary giving. Sunday morning and was out of
Another lesson that might be control when it was discovered. A
found in this, if one looks hard few hours later that same morn-
enough, is that the government ing, the victim’s fellow church
cannot stop expanding public members gathered in their chapel
(coerced) welfare programs if it at a regular meeting of the adult
starts them. Who is to say that males of the area and were ad-
government insurance should stop dressed as follows by their pre-
with medical care for the aged and siding officer: “I guess you all
not include reimbursement for know that Jim was burned out this
every conceivable disaster which morning. This is a terrible dis-
might threaten the success of a aster for him. We must all give
business venture? Is government until it hurts and then keep on
wiser than God that it should save giving until it feels good. Most of
men from the consequences of us are farmers. I suggest it would
their own deeds? When people be easiest for us simply to give
have become accustomed to look- feed. Of course, money and build-
ing to government instead of ing materials are going to be
themselves, they then will expect needed, too.”
the government to do what my Within a few minutes several
neighbors did. And since govern- hundred dollars in money and ma-
ment is by nature inefficient, it terials had been pledged. These
must take care of the total welfare were not idle pledges; they were
program at infinitely greater cost fulfilled, for they came from hearts
than under voluntary private wel- filled with sympathy and pain for
fare. On top of all the help that their unfortunate neighbor.
normally would have been needed
are added two heavy burdens: first, Pocketbook Pains
the burden of those who become I, too, felt a pain which I then
wards of the state simply because mistakenly traced to a generous
they can get away with it; second, heart, though I have since changed
the burden of graft and bureauc- the diagnosis. It came from my
racy. pocketbook. It was a geographic
But let me continue my story; error. My wallet was near my
for it shows the operation of the heart but not committed to its
socialist mind—that is, my mind service.
as it had begun to function at that Wanting to be known as a man
time. who was concerned about the wel-


===== PAGE 58 =====

56 THE FREEMAN October

fare of his fellow men, I got the small offering. Subconsciously, I
floor and said, “I think this is a was hoping to expiate the sin of
problem that should be solved on my neglect by seeing that someone
a higher level of responsibility. I else did the job. I had a speech all
am not opposed to our giving prepared in my mind: “All my life
locally. But we cannot give enough. I have heard about our wonderful,
I believe this should be solved on efficient church welfare program.
the level of the General Church Yet, the first time I see a real
Welfare Program. Each of us al- chance for it to do something, we
ready has given 10 to 15 per cent have to fall back on a system of
of his income to help the various begging. What is wrong?’ For-
charitable programs of the church. tunately, I did not have a chance
It is not fair to expect us to meet to give my speech,

all of these emergencies alone. I

think that is the reason we have The Program Explained

the general program. Let us call on The president of our group in-

them for help.” troduced our guest who then made
The others blinked, for such rea- the following statement:

soning had not occurred to them. “lI understand you have some

They lacked the “refinements” of questions about the church welfare
modern welfare state thinking program, but first let me give a
wherein the responsibility is put brief history of it.

as far away as possible, even to “In the early days of the de-
that magic basket of plenty called pression of the 1930's the leaders
Washington, D. C. But I knew, for of the church became concerned
I was majoring in social science in about the increase in the number
a large university. It was agreed of poor among us. Through a
that the following Sunday we series of events and developments,
would invite a church official to the church increased its facilities
explain why the welfare program for caring for our own people. It
had not given immediate help in wasn’t anything new. It just be-

this case of extreme emergency. came bigger and required more
The man came and I was ready attention.
for him, burning with desire, as I “As you know, a basic tenet of

supposed, to help my unfortunate our faith and teaching is a pas-
neighbor. 1 was soon to realize, sionate belief in liberty. As a peo-
however, that my burning was ple, we generally felt that the pro-
from shame because I had not grams that were being introduced
stepped forward with my own in Washington, D. C., would in-


===== PAGE 59 =====

1962 TO HELP A NEIGHBOR 57

evitably lead to moral decay and ity. We think of the obligation of
loss of freedom. For liberty cannot welfare or Christian giving as
be divided. We cannot speak of being operative on three levels.
freedom of worship without the First is the family level. The mem-
right to own property. And one bers of the family should have the
eventually must lose his right to first privilege and responsibility
own property if government con- of helping their own needy. If they
tinues to increase its activities and help, theirs are the blessings of
responsibilities. the Almighty. If they fail to help
“We recognized that in the en- when able, they stand condemned
largement of our church welfare before His judgment bar. If we
program we could make the same step in without giving members of
mistakes as the government, and the family a chance, how can
thus destroy the moral strength there be a blessing or a judgment
of our people. We saw that we on them?
must not help anyone in such a “Next are the neighbors. They,
way as to rob him of his self-re- too, should have a chance to suc-
spect or his ability to go on and ceed or fail in the most important
help himself instead of becoming challenge that comes to men. Let
helpless. So all of our programs me read from the book of
are designed to preserve these Matthew, chapter 25, verses 31 to
virtues. 46 — enough to refresh your mem-
“In this connection, our policy ories. You read the rest when you
is not to loan money to people who get home.
are able to borrow it through reg-
ular business channels. For that “For I was an hungred, and ye
would be unfair both to business gave me no meat: I was thirsty,
and to those to whom we loan the 214 ee rink: twas a
a be coer naked, and ye clothed me not: sick,
) ] and in prison, and ye visited me not.
their self-reliance. We also must
be careful not to create an impres-
sion that our loans are really gifts hungred, or athirst, or a stranger,
in disguise. Our object is to help, or naked, or sick, or in prison, and
not hurt, those to whom we loan  4iq not minister unto thee?
the money. . “Then shall he answer them, say-
“And there is another factor we ing, Verily I say unto you, Inas-
must consider. It is the factor of much as ye did it not to one of the
judgment, justice, or responsibil- least of these, ye did it not to me.

“Then shall they also answer him,
saying, Lord, when saw we thee an


===== PAGE 60 =====

58 THE FREEMAN October

“Finally, if the family and the of being stingy. But what possible
neighbors have failed, or if the job motive can a man have for want-
is manifestly too big, the higher ing to put the responsibility of
headquarters of the church wel- social welfare on the willing
fare program take over. shoulders of the bureaucrats in

“Now, are there any questions?” Washington? How much is

There were many questions, But needed? Who can say where
all of them were friendly. And poverty stops and plenty begins?
none came from me. I had heard Where can government get what it
enough. In clear terms, without gives but from the people? How
apology, this man had told the can it take it but by the use of

simple truth. It stood by itself. force? How can it avoid taking
more and giving less? We do not

There are many ways one can neighbors by putting these prob-
say, “Let Washington do it.” But lems at the door of the legislators
they all add up to the same thing: in Washington. We only compound
“I want the responsibility as far what must eventually return to us
away from me as possible.” In the for solution.
case of social welfare by govern-
ment, it means: “I am ever so Can the advocate of coercive so-
anxious to have the poor cared for. cial welfare salve his nagging con-
But I do not believe it will be done science by demanding help from
unless people are forced to do it.” the government for the people he

Of course, we cannot say that personally passes by and leaves
every social planner is basically “an hungred, athirst, naked, sick,
stingy and suspects everyone else and imprisoned?” @®

CORRECTION: On page 54 of the June 1962 FREEMAN it was re-
ported that “. ... studies conducted by the Urban Land Institute
reveal that the cost of servicing downtown areas generally ex-
ceeds the taxes collected from those areas ....”

Subsequent efforts to document this report reveal quite the
opposite conclusion, and we deeply regret that inadvertent mis-
representation.


===== PAGE 61 =====

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

KEYNES Will KEYNES

FroM Henry Hazlitt’s recent The blame. In the first place, says Pro-
Failure of the New Economics, fessor Wright, the ‘‘general
the reputation of the late John theory” which the title of the
Maynard Keynes emerged in a book is supposed to cover is not
sorry state of disarray. Professor general, it is a particular theory
David McCord Wright does not designed to fit a special instance.
directly take issue with Mr. Haz- Keynes, however, corrected him-
litt’s estimate of Keynes in his self in the course of writing his
The Keynesian System (Fordham book. His own actual “general
University Press, $3.00). But un- theory” is larger than the theory
like Mr. Hazlitt, Professor Wright that is indicated by the title.
insists, by implication at least, Professor Wright arrives at his
that in spite of all his faults conclusions by taking careful note
Keynes remains one of the tower- of Keynes's qualifying phrases.
ing figures of economics, It is the The General Theory is spangled
“Keynesians” to whom Professor with sentences that have a tenta-
Wright objects. Lord Keynes, in tive flavor. Thus Keynes says,
his view, was not a “Keynesian.” “In contemporary conditions the
The “Keynesians,” says Profes- growth of wealth, so far from be-
sor Wright, have been guilty of ing dependent on the abstinence
selecting that portion of the fa- of the rich . . . is more likely to
mous General Theory of Employ- be impeded by it.” Or: “Interest
ment, Interest, and Money that today rewards no genuine sacri-
was elaborated to fit the peculiar fice, any more than does the rent
condition of England in the twen- of land.” The italics have been
ties and thirties and making it do added by Professor Wright.
duty as an “explanation” to fit any To clear the long-term elements
time and place under conditions of the Keynesian system from the
of advanced capitalist machine misunderstandings that have
production. For this aberration on been cultivated by those who have
the part of his many disciples failed to note the sort of thing
Keynes himself was admittedly to that Professor Wright chooses to

59


===== PAGE 62 =====

60 THE FREEMAN October

italicize, one must first take “Keynesian” proposals: let wages
Keynes as a man of the twenties remain where they were, let the
and thirties who was interested government “tax and spend” to
in immediately practical solutions. spread purchasing power to the
The England of the twenties was unemployed, let deficit finance
a deeply crippled country. Its pro- create “government investment,”
ductive plant was old, the price let everyone have his bit of Bever-
of its exports was high. What was idgean social insurance. The “eu-
needed was modernization of pro- thanasia of the rentier” would be
ductive equipment. But an “in- rendered painless of letting the
tensely job-conscious, and very impoverished capitalist come un-
powerful” labor movement re- der the general welfare provisions
sisted modernization, on the short- along with the rest of the coun-
sighted theory that it would up- try. The nation, in Wright's
set union boundary lines and ex- words, could ‘become happily
ploit the worker. Meanwhile, stagnant.”
crushing taxation helped to stifle
whatever initiative business did A Very Special Situation
manage tentatively to put forth. Professor Wright thinks
The restoration of the gold Keynes's proposals might have
standard, which was undertaken made sense on their own rather
to save the third of England's craven terms for a New Zealand
balance of payments abroad that or a France, which were countries
were met by the “export” of that “could have fed themselves
banking and insurance services, and become peacefully poor.” But
did not help to revive the export England, unlike New Zealand or
market for British manufactured France, is in no position to feed
goods. Picking the story up “in itself. “England then and now,”
the middle,” Lord Keynes took says Professor Wright, “can only
the decline of the “marginal ef- eat by selling abroad and can only
ficiency” of British capital for sell abroad by producing better
granted. Since there seemed to be and cheaper goods. The problem
no expectation of profit in a stag- of relative efficiency inexorably
nant world where savings were presents itself.”
not flowing into investment, Lord Sooner or later, Keynes would
Keynes started elaborating a have had to confront the need for
“general theory” for a “frozen” thoroughgoing capitalist innova-
economic system, tion in the English economic sys-
There followed all the famous tem. But the war came and “gov-


===== PAGE 63 =====

1962 KEYNES VERSUS KEYNES 61

ernment investment” took over footnote directed at the “Keynesi-
temporarily. ans,” he “would have tried to bal-
That Keynes himself was not a ance stability versus pressure
“Keynesian” for all times and groups about where the Eisen-
places was proved during the war, hower administration did — ex-
Foreseeing that the war might cept that Keynes would probably
create both scarcity and inflation have tried to be more conserva-
(in other words, bring about a tive!”
condition that was a negation of
the twenties and thirties), Keynes A Fundamental Error
went back on his prewar pro- What particularly annoys Pro-
posals for the establishment of fessor Wright about Keynes's
indiscriminate credit. His How To American and Canadian “dis-
Pay for the War was a scheme for ciples” is that they are thinking
drastic taxation of consumption of present-day North America as
“coupled with certificates which constituting a post-World War II
could be cashed when (or if) un- version of the Britain of the
employment returned.” In other twenties and the thirties. We are
words, Keynes had “set upon a supposedly “glutted” with produc-
more orthodox track in his think- tion. “Innovation” is not needed.
ing.” Professor Wright doesn’t What is important is “purcnasing
think Keynes was guilty of incon- power,” which should be spread
sistency in stressing the need to among the workers by granting
face different times with different them nine-tenths of the gains
economic policy. For Keynesian from “productivity.” Thus the

analysis, even on the basis of sug- ‘“Keynesians” in their stuck rec-
gestions in the General Theory, ord left over from 1938.
recognizes that when full employ- Maybe the United States and

ment is a fact, a government Canada, like France or New Zea-
“would want to be able to ‘pull in land, could become “happily stag-
its horns’ without having created nant” by following such advice
too much extra credit.” from the “Keynesians.” But North

This being the case, “we see America, outmaneuvered in world
that Keynes and Keynesianism be- markets because of a failure to
comes no longer a revolutionary let increases in productivity flow
bogey but a very moderate and re- into lower prices, would soon be
spectable school of thought.” If drained of its gold. And the
Keynes had lived, so Professor penalty for ‘happy stagnation”
Wright says in a quietly malicious would assuredly be a controlled


===== PAGE 64 =====

62 THE FREEMAN October

economy. As Professor Wright to Serfdom, would hardly have
puts it, quoting from Schumpeter, urged more “government spend-
we would have “capitalism in the ing” as the cure for the ills of
oxygen tent.” The shadow of pri- 1962. Professor Wright shows
vate property might remain, but why.
there would be no freedom to ex- Much of the middle part of Pro-
periment and little social mobility fessor Wright's book consists of
save through government chan- a technical analysis of the Keynes-
nels. The young, of course, would ian ‘tool box.” Unlike Henry
try to succeed by becoming bu- Hazlitt, Professor Wright is will-
reaucratic courtiers. ing to grant logical value to the
Keynes died before he could see Keynes system, provided the
where the “Keynesians” were postulate of a “frozen” economic
headed. On the basis of his cor- world is accepted. In Keynes's
respondence with Keynes, Profes- General Theory the “apparent”
sor Wright undertakes to “broaden contradictions disappear, accord-
the model” left by the dead mas- ing to Professor Wright, as soon
ter. He notes that Keynes himself as one realizes the points at which
actually used two models of the Keynes has tacitly “unfrozen” the
economic system, one a mechanical system. It is the continual switch-
one with mechanical outlook, and ing of assumptions that “forms
the other a ‘dynamic, subjective a continual trap for the careless
model.” If Keynes had lived, he or biased reader.” @®
stressed the need for sings, op > OUT OF STEP—The Autobiogra-
) . ’ phy of an Individualist, by Frank
innovation, for profits, and for Chodorov (New York:

Devin-
lower prices in a world that is in Adair Company, 1962). 261 pp.
dire need of an expanding eco- $4.50.
nomic system to feed the “explod- Reviewed by Robert M. Thornton

ing” millions of Asia, Africa, and No oNE today takes his life in his
tropical America. hands when he expounds the con-

Europe has responded to the cepts of individual liberty, limited
changed situation by rejecting the government, and free enterprise.
counsels of the “Keynesians.” Hig audience may be small but its
And North America, if it is not growth rate is sufficient to war-
to be outdistanced, will have to rant publication of more and more
follow suit. The Lord Keynes who, conservative or libertarian books
in a thoughtful moment, praised and magazines. Fifteen, twenty
Professor F. A. Hayek’s The Road years ago this was not the case.


===== PAGE 65 =====

1962 OTHER BOOKS 63

In the forties little was heard seems, in the light of what is hap-
from fellows who held to such be- pening, a fatuous undertaking.
liefs. One of the few who did What of it? There is a lot of spir-
speak up for the good cause in itual profit in being true to one’s
those dark days for liberty was self.
one Frank Chodorov. Untroubled “In carrying on for principle,
by the odds against him Mr. Chod- self-respect at least is preserved.
orov started publishing a monthly The loser is he who quits; what
broadsheet, analysis, which was material advantages or conven-
destined to last over a half-dozen iences he might gain by compro-
years, thanks to a few thousand mise is paid for with the currency
faithful subscribers. We can, I of manhood. A pig accommodates
think, understand the spirit un- himself to the environment im-
derlying Mr. Chodorov’s grand posed on him, and that is why we
efforts by a careful reading of ascribe to the pig no soul worth
his statement in the first issue, speaking about.
November 1944: “There is further ‘profit’ which
“It's fun to fight — when what this voice-of-individualism hopes
you are fighting for stirs your to render its supporters. It is that
imagination. Fondly adhering to imponderable value which is de-
the ideal of individual dignity, rived from communion with kin-
striving to keep alive the embers dred spirits. Every reader of this
of that hope which was fired by highly opinionated journal be-
the American Declaration of In- comes ipso facto a member of a
dependence, those who are mak- fraternity of individualists, held
ing this paper possible expect only together by the greatest of human
a measure of enjoyment in return, bonds —a common ideal, a com-
It is in that spirit that I, while I mon hope. To know that one has
manage to rub along by other the moral support of a host who,
means, assume my editorial in their hearts at least, protest

duties. and proclaim with him, is a real
“For, to point up the state’s comfort.”
encroachment upon social power, Some of analysis has rubbed

to expose the insidious economic off on this book, and it is radical
forces which are robbing the in- stuff. It will make delicious read-
dividual of his will to resist the ing for the libertarians among us,
trend, to suggest a way by which but some right-wingers —not to
this degradation of man might be mention so-called “liberals” — will
stopped short of state-slavery, find it pretty powerful medicine,


===== PAGE 66 =====

64 THE FREEMAN October

much too strong to take under any ideal for it is, in a real sense, a
circumstances. For Mr. Chodorov, false idol.
being a consistent individualist, Mr. Chodorov devotes a full
does not advocate sacrificing in- chapter of his “autobiography”
dividual liberty in order to do to his good friend, Albert Jay
battle with those who would de- Nock, who has recorded his own
stroy freedom. Nor is he con- view of our author: “Mr. Chodo-
cerned with telling people how rov has a social philosophy that
they should live. His aim is to is fundamental and his command
establish the context of freedom of it is so complete that he can
— a society in which men may do express his critical view of a large
as they see fit as long as they do subject in the fewest and simplest
not prohibit others from doing terms. In his last issue, for ex-
the same, ample, he wrote one page on The
Mr. Chodorov does not cham- Unimportance of Yalta and an-
pion the cause of businessmen. other on Mr. Wallace’s Compe-
Nor does he speak for labor tence. He took these subjects en-
unions, or farmers, or intellec- tirely away from the conventional
tuals, or veterans, or elderly peo- line of approach, applied a new
ple, or any other group, large or and competent measure to them
small, He is one hundred per cent in the simplest kind of language,
for ending all privileges—to all and when he ended there was
individuals or organizations! He nothing left for anyone to say;
is as strongly opposed to subsi- he had said it all. . . . Mr. Chodo-
dies for businessmen as he is to rov has the kind of humor that
government-bestowed privileges keeps him always superior to his
for labor unions, subject. If the aspiring pamphle-
Frank Chodorov is a practicing teer hasn't that, he had better
individualist, it should be noted, sweat blood to cultivate it. Much
and as such he has been willing of our controversial and hortatory
throughout a long life to accept — literature is sound and good
nay, demand — personal responsi- enough; but dear Lord, how dull,
bility. Unlike so many who merely dogged, dreary it is, and how dis-
talk about freedom, Mr. Chodorov mally it plods along on the dead-
has actually lived by his principles level of platitude!”
as well as any fallible being can — Mr. Chodorov is a colorful per-
even when it hurt. He recognized sonality who could hardly write a
early in his life that no true liber- dull line if he tried. The reader
tarian could look on security as an has a treat in store. ®


===== PAGE 67 =====

A Paradox

Do you believe that the employe is entitled to remuneration for his full
production, equal to the value of all that he produces?
Our answer is, YES.
How, then, can there be anything left for the employer? Is he to get
no return on his investment?
Yes, there will still be a return, in the form either of profit, interest
or rent for him."
But you will say, “That is impossible.”
No, it is not! We agree with employes, and admit to them, “You
are entitled to a wage equal to your FULL productivity; neverthe-
less, your employer must and will obtain a ‘return on his capital’;
and what is more, you will wish him to have it — when you under-
stand the economics.”
Who pioneered the way through this paradox? Read
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===== PAGE 68 =====

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