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| JINKISE

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DECEMBER 1962

IDEAS ON LIBERTY

"Planning’’ vs. the Free Market . . . . Henry Hazlitt 3
"The Alliance for Progress Must Fail . . . Willard M. Fox 12
They Arendiike Us. . . . . . . . Edmund A. Opitz 16
VYoluntary Giving . . . . . . . . H. P.B. Jenkins 25
Pocket-Sized Patriots . . . . . . . D.M Westerholm 26
Germany's Economic Miracle in Danger . William Henry Chamberlin 30
Everyone’s Favorite Game . . . , . Jess Roley 37
Leadership and the Rule of Law . . . . Cliff S. Emeny 41
Books:
To Whom It May Concern . . . . . . John Chamberlain 51
Other Books . . . . . . . . . . 54
Annualindex. . . . . . . . . . 59

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC.

levington-on-Hudsen, Now Veorl



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This latest volume of the ESSAYS ON LIBERTY series (448 pages, indexed)
contains selected writings from The Freeman and Notes from FEE
beginning with July 1961 through May 1962.

Cloth, $3.00 Paper, $2.00

The Set — all 9 volumes
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THE

Teemdi A MONTHLY JOURNAL OF IDEAS ON LIBERTY

DECEMBER 1962 Vol. 12, No. 12

LEONARD E. READ President, Foundation for
Economic Education

PAUL L. POIROT Managing Editor

THE FREEMAN is published monthly by the
Foundation for Economic Education, Inc., a non-
political, nonprofit educational champion of private
property, the free market, the profit and loss system,
and limited government, founded in 1946, with offices
at Irvington-on-Hudson, New York. Any interested
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tary donations. Total expenses average $12.00 a year
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maintaining and extending the Foundation's work.

Copyright, 1962, The Foundation for Economic Education, inc. Printed
in U.S.A,

Additional copies, postpaid, to one address: Single copy, 50 cents;

3 for $1.00; 25 or more, 20 cents each,

Permission is hereby granted to anyone to reprint any article in whole

or in part, providing customary credit is given, except * ‘Planning’ vs.
FVE the Free Market."

Any current article will be supplied in reprint form If there are enough

inquiries to justify the cost of the printing.


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N\A
oy

~pUANMING

Uo

WHEN WE DISCUSS ‘‘economic plan-
ning,” we must be clear concern-
ing what it is we are talking
about. The real question being
raised is not: plan or no plan? but
whose plan?

Each of us, in his private ca-
pacity, is constantly planning for
the future: what he will do the
rest of today, the rest of the week,
or on the weekend; what he will
do this month or next year. Some
of us are planning, though in a
more general way, ten or twenty
years ahead.

We are making these plans both
in our capacity as consumers and
as producers. Employees are either
planning to stay where they are,
or to shift from one job to an-
other, or from one company to
another, or from one city to an-
other, or even from one career to

Mr. Hazlitt is the well-known economic ana-
lyst, author, and speaker. This article is re-
printed by permission from an address at the
1962 meeting of the Mont Pelerin Society in
Knokke, Belgium.

HENRY HAZLITT

another. Entrepreneurs are either
planning to stay in one location or
to move to another, to expand or
contract their operations, to stop
making a product for which they
think demand is dying and to start
making one for which they think
demand is going to grow.

Now the people who call them-
selves “Economic Planners” either
ignore or by implication deny all
this. They talk as if the world of
private enterprise, the free mar-
ket, supply, demand, and competi-
tion, were a world of chaos and
anarchy, in which nobody ever
planned ahead or looked ahead, but
merely drifted or staggered along.
I once engaged in a television de-
bate with an eminent Planner in
a high official position who implied
that without his forecasts and
guidance American business would
be “flying blind.” At best, the
Planners imply, the world of pri-
vate enterprise is one in which
everybody works or plans at cross

3


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\

4 THE FREEMAN December

purposes or makes his plans solely were allowed to pursue the plan of
in his “private” interest rather production or consumption of spe-
than in the “public” interest. cific goods and services that he had
Now the Planner wants to sub- intended to pursue or would have
stitute his own plan for the plans pursued anyway, then the whole
of everybody else. At best, he Plan would be useless and point-
wants the government to lay down less, a complete waste of energy
a Master Plan to which everybody and time. The Plan would be mean-
else’s plan must be subordinated. ingful only if it forced the produc-
tion and consumption of different
It Involves Compulsion things or different quantities of
It is this aspect of Planning to things than a free market would
which our attention should be di- have provided. In short, it would
rected: Planning always involves be meaningful only insofar as it
compulsion. This may be disguised Put compulsion on somebody and
in various ways. The government forced some change in the pattern
Planners will, of course, try to of production and consumption.
persuade people that the Master There are two excuses for this
Plan has been drawn up for their coercion. One is that the free mar-
own good, and that the only per- ket produces the wrong goods, and
sons who are going to be coerced that only government Planning
are those whose plans are “not in and direction could assure the
the public interest.” production of the “right” ones.
The Planners will say, in the This is the thesis popularized by
newly fashionable phraseology, J. K. Galbraith. The other excuse
that their plans are not “impera- 18 that the free market does not
tive,” but merely “indicative.” produce enough goods, and that
They will make a great parade of only government Planning could
“democracy,” freedom, coopera- Speed things up. This is the thesis
tion, and noncompulsion by “con- ©f the apostles of “economic
sulting all groups”’—“Labor,” “In- growth.”
dustry,” the Government, even
“Consumers Representatives” — in
drawing up the Master Plan and Let us take up the “Galbraith”
the specific “goals” or “targets.” thesis first. I put his name in quo-
Of course, if they could really suc- tation marks because the thesis
ceed in giving everybody his pro- long antedates his presentation of
portionate weight and voice and it. It is the basis of all the com-
freedom of choice, if everybody munist “Five-Year Plans” which

The Five-Year Plans’’


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1962 “PLANNING” VS. THE FREE MARKET 5

are now aped by a score of social- sumers are told that they must
ist nations. While these Plans may ‘‘tighten their belts” for a little
consist in setting out some general longer. Sometimes, if the last Plan
“overall” percentage of production has not been too unsuccessful,
increase, their characteristic fea- there is a little relaxation: con-
ture is rather a whole network of sumers can, perhaps, have a few
specific “targets” for specific in- more motor cars and hospitals and
dustries: there is to be a 25 per playgrounds. But there is almost
cent increase in steel capacity, a never any provision for, say, more
15 per cent increase in cement golf courses or even bowling al-
production, a 12 per cent increase leys. In general, no form of expen-
in butter and milk output, and so diture is approved that cannot be
forth. universalized, or at least “majori-
There is always a strong bias in tized.” And such so-called luxury
these Plans, especially in the com- expenditure is discouraged, even
munist countries, in favor of in a so-called “indicative” Plan,
heavy industry, because it gives by not allowing access by promo-
increased power to make war. In ters of such projects to bank credit
all the Plans, however, even in or to the capital markets. At some
noncommunist countries, there is point government coercion or com-
a strong bias in favor of indus- pulsion comes into play.
trialization, of heavy industry as
against agriculture, in the belief ‘The Nation” Cannot Afford It
that this necessarily increases real This disapproval and coercion
income faster and leads to greater may rest on several. grounds.
national self-sufficiency. It is not Nearly all “austerity” programs
an accident that such countries stem from the belief, not that the
are constantly running into agri- person who wants to make a “lux-
cultural crises and food famines. ury” expenditure cannot afford it,
But the Plans also reflect either but that “the nation” cannot af-
the implied or explicit moral judg- ford it. This involves the assump-
ments of the ‘government Plan- tion that, if I set up a bowling al-
ners. The latter seldom plan for ley or patronize one, I am some-
an increased production of cigar- how depriving my fellow citizens
ettes or whisky, or, in fact, for of more necessary goods or serv-
any so-called “luxury” item. The ices. This would be true only on
standards are always grim and the assumption that the proper
puritanical. The word “austerity” thing to do is to tax my so-called
makes a chronic appearance. Con- surplus income away from me and


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6 . THE FREEMAN December

turn it over to others in the form consumers are, in short, boobs and
of money, goods, or services. But suckers, chronically wasting their
if I am allowed to keep my “sur- money on trivialities, if not on ab-
plus” income, and am forbidden to solute junk. The bulk of consum-
spend it on bowling alleys or on ers also, if left to themselves,
imported wine and cheese, I will show atrocious taste, and crave
spend it on something else that is cerise automobiles with ridiculous
not forbidden. Thus when the tailfins.
British austerity program after
World War II prevented an Eng- Bureaucratic Choice
lishman from consuming imported The natural conclusion from all
luxuries, on the ground that “the this —and Galbraith does not hesi-
nation” could not afford the “for- tate to draw it — is that consumers
eign exchange” or the “unfavor- ought to be deprived of freedom
able balance of payments,” officials of choice, and that government
were shocked to find that the bureaucrats, full of wisdom — of
money was being squandered on course, of a very unconventional
football pools or dog races. And wisdom — should make their con-
there is no reason to suppose, in sumptive choices for them. The
any case, that the “dollar short- consumers should be supplied, not
age” or the “unfavorable balance with what they themselves want,
of payments” was helped in the but with what bureaucrats of ex-
least. The austerity program, in- quisite taste and culture think is
sofar as it was not enforced by good for them. And the way to do
higher income taxes, probably cut this is to tax away from people all
down potential exports as much as the income they have been foolish
it did potential imports; and inso- enough to earn above that required
far as it was enforced by higher to meet their bare necessities, and
income taxes, it discouraged ex- turn it over to the bureaucrats to
ports by restricting and discour- be spent in ways in which the lat-
aging production. ter think would really do people
But we come now to the specific the most good — more and better
Galbraith thesis, growing out of roads and parks and playgrounds
the agelong bureaucratic suspicion and schools and television pro-
of luxury spending, that consum- grams — all supplied, of course, by
ers generally do not know how to government.
spend the income they have And here Galbraith resorts to a
earned; that they buy whatever neat semantic trick. The goods
advertisers tell them to buy; that and services for which people vol-


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1962 “PLANNING” VS. THE FREE MARKET 7

untarily spend their own money sector,” the scales would not be so
make up, in his vocabulary, the heavily weighted in favor of the
“private sector” of the economy, latter. In fact, this more neutral
while the goods and services sup- vocabulary would raise in the mind
plied to them by the government, of the hearer the question whether
out of the income it has seized certain activities now assumed by
from them in taxes, make up the the modern welfare state do legiti-
“public sector.” Now the adjective mately or appropriately come
“private” carries an aura of the within the governmental prov-
selfish and exclusive, the inward- ince. For Galbraith’s use of the
looking, whereas the adjective word “sector,” “private” or “pub-
“public” carries an aura of the lic,” cleverly carries the implica-
democratic, the shared, the gen- tion that the public “sector” is le-
erous, the patriotic, the outward- gitimately not only whatever the
looking — in brief, the public-spir- government has already taken
ited. And as the tendency of the over but a great deal besides. Gal-
expanding welfare state has been, braith’s whole point is that the
in fact, to take out of private “public sector” is “starved” in
hands and more and more take in- favor of a “private sector” over-
to its own hands provision of the stuffed with superfluities and
goods and services that are con- trash.

sidered to be most essential and

most edifying — roads and water Voluntary versus Coercive

supply, schools and hospitals and The true distinction, and the
scientific research, education, old- appropriate vocabulary, however,
age insurance and medical care — would throw an entirely different

the tendency must be increasingly light on the matter. What Gal-
to associate the word “public” with braith calls the “private sector” of
everything that is really necessary the economy is, in fact, the volun-
and laudable, leaving the “private {ary sector; and what he calls the
sector” to be associated merely “public sector” is, in fact, the co-
with the superfluities and capri- ercive sector. The voluntary sec-
cious wants that are left over after tor is made up of the goods and
everything that is really impor- services for which people volun-
tant has been taken care of. tarily spend the money they have

If the distinction between the earned. The coercive sector is
two “sectors” were put in more made up of the goods and services
neutral terms — say, the “private that are provided, regardless of
sector” versus the “governmental the wishes of the individual, out


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8 THE FREEMAN December

of the taxes that are seized from than the average, and the slothful
him. And as this sector grows at and unskilled lose their incentive
the expense of the voluntary sec- to improve their condition.
tor, we come to the essence of the
welfare state. In this state nobody The Growth Planners
pays for the education of his own I have spent so much time in
children but everybody pays for analyzing the fallacies of the Gal-
the education of everybody else's braithian school of economic Plan-
children. Nobody pays his own ners that I have left myself little
medical bills, but everybody pays in which to analyze the fallacies
everybody else’s medical bills. No- of the Growth Planners. Many of
body helps his own old parents, their fallacies are the same; but
but everybody else’s old parents. there are some important differ-
Nobody provides for the contin- ences.
gency of his own unemployment, The chief difference is that the
his own sickness, his own old age, Galbraithians believe that a free
but everybody provides for the market economy produces too
unemployment, sickness, or old much (though, of course, they are
age of everybody else. The wel- the “wrong” goods), whereas the
fare state, as Bastiat put it with Growthmen believe that a free
uncanny clairvoyance more than a market economy does not produce
century ago, is the great fiction by nearly enough. I will not here deal
which everybody tries to live at with all the statistical errors,
the expense of everybody else. gaps, and fallacies in their argu-
This is not only a fiction; it is ments, though an analysis of these
bound to be a failure. This is sure alone could occupy a fat book. I
to be the outcome whenever effort want to concentrate on their idea
is separated from reward. When that some form of government di-
people who earn more than the rection or coercion can by some
average have their ‘‘surplus,” or strange magic increase production
the greater part of it, seized from above the level that can be
them in taxes, and when people achieved when everybody enjoys
who earn less than the average economic freedom.
have the deficiency, or the greater For it seems to me self-evident
part of it, turned over to them in that when people are free, produc-
handouts and doles, the produc- tion tends to be, if not maximized,
tion of all must sharply decline; at least optimized. This is because,
for the energetic and able lose in a system of free markets and
their incentive to produce more private property, everybody's re-


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1962 “PLANNING” VS. THE FREE MARKET 9

ward tends to equal the value of it would be impossible to explain
his production. What he gets for the deep earnestness with which
his production (and is allowed to they argue among themselves
keep) is in fact what it is worth whether the growth rate “ought”
in the market. If he wants to dou- to be 4 or 5 or 6 per cent. (The
ble his income in a single year, he only thing they always agree on is
is free to try — and may succeed if that it ought to be greater than
he is able to double his production whatever it actually is.) Having
in a single year. If he is content decided on this magic overall fig-
with the income he has — or if he ure, they then proceed either to
feels that he can only get more by set specific targets for specific
excessive effort or risk — he is un- goods (and here they are at one
der no pressure to increase his with the Russian Five-Year Plan-
output. In a free market everyone ners) or to announce some general
is free to maximize his satisfac- recipe for reaching the overall
tions, whether these consist in rate.
more leisure or in more goods. But why do they assume that
But along comes the Growth setting their magic target rate
Planner. He finds by statistics will increase the rate of produc-
(whose trustworthiness and accu- tion over the existing one? And
racy he never doubts) that the how is their growth rate supposed
economy has been growing, say, to apply as far as the individual is
only 2.8 per cent a year. He con- concerned? Is the man who is al-
cludes, in a flash of genius, that a ready making $50,000 a year to be
growth rate of 5 per cent a year coerced into working for an in-
would be faster. How does he pro- come of $52,500 next year? Is the

pose to achieve this? man who is making only $5,000 a
year to be forbidden to make more
What Rate of Growth? than $5,250 next year? If not,

There is among the Growth What is gained by making a spe-
Planners a profound mystical be- cific “annual growth rate” a gov-
lief in the power of words. They ernmental “target”? Why not just
declare that they “are not satis- Permit or encourage everybody to
fied” with a growth rate of a mere do his best, or make his own deci-
2.8 per cent a year; they demand sion, and let the average “growth”
a growth rate of 5 per cent a year, be whatever it turns out to be?
And once having spoken, they act The way to get a maximum rate
as if half the job had already been of ‘economic growth”’— assuming
done. If they did not assume this, this to be our aim — is to give max-


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10 THE FREEMAN December

imum encouragement to produc- privileges to labor unions so that
tion, employment, saving, and in- their demands are chronically ex-
vestment. And the way to do this cessive and chronically threaten
is to maintain a free market and unemployment —and then to try
a sound currency. It is to encour- to offset all these policies by gov-
age profits, which must in turn en- ernment spending, deficits, and
courage both investment and em- monetary inflation. But I have just
ployment. It is to refrain from op- described precisely the policies
pressive taxation that siphons that most of the fanatical Growth-
away the funds that would other- men advocate.
wise be available for investment. Their recipe for inducing
It is to allow free wage rates that growth always turns out to be —
permit and encourage full employ- inflation. This does lead to the il-
ment, It is to allow free interest Ilusion of growth, which is meas-
rates, which would tend to maxi- ured in their statistics in mone-
mize saving and investment. tary terms. What the Growthmen
do not realize is that the magic of
inflation is always a short-run
The way to slow down the rate magic, and quickly played out. It
of economic growth is, of course, can work temporarily and under
precisely the opposite of this. It special conditions — when it causes
is to discourage production, em- prices to rise faster than wages
ployment, saving, and investment and so restores or expands profit
by incessant interventions, con- margins. But this can happen only
trols, threats, and harassment. It in the early stages of an inflation
is to frown upon profits, to declare which is not expected to continue.
that they are excessive, to file con- And it can happen even then only
stant antitrust suits, to control because of the temporary acquies-
prices by law or by threats, to cence or passivity of the labor
levy confiscatory taxes that dis- union leaders. The consequences of
courage new investment and si- this short-lived paradise are mal-
phon off the funds that make in- investment, waste, a wanton redis-
vestment possible, to hold down tribution of wealth and income,
interest rates artificially to the the growth of speculation and
point where real saving is dis- gambling, immorality and corrup-
couraged and malinvestment en- tion, social resentment, discontent
couraged, to deprive employers of and upheaval, disillusion, bank-
genuine freedom of bargaining, ruptcy, increased governmental
to grant excessive immunities and controls, and eventual collapse.

The Wrong Policies


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

1962 “PLANNING” VS. THE FREE MARKET 11

This year’s euphoria becomes next that France today has a high de-
year’s hangover. Sound long-run gree of stability and a strong cur-

growth is always retarded. rency along with its growth, the

stern fiscal discipline applied after

In Spite of “The Plan" . the devaluation of late 1958 must
Before closing, I should like to be held principally responsible.

deal with at least one statistical “That a plan is fulfilled, in other

argument in favor of government Words, does not prove that the
Planning. This is that Planning same or better results could not
has actually succeeded in promot- have been achieved with a lesser
ing growth, and that this can be degree of central guidance. Any
statistically proved. In reply I judgment as to cause and effect, of
should like to quote from an ar- course, must also consider the
ticle on economic planning in the cases of West Germany and Italy,
Survey published by the Morgan which have sustained high growth
Guaranty Trust Company of New rates without national planning of
York in its issue of June 1962: the economy.” :
“There is no way to be sure how In brief, statistical estimates of
much credit is due the French growth rates, even if we could ac-
plans in themselves for that coun- cept them as meaningful and ac-
try’s impressive 4% per cent aver- curate, are the result of so many
age annual growth rate over the factors that itis never possible to
past decade. Other factors were ascribe them with confidence to
working in favor of growth: a rel- any single cause. Ultimately we
atively low starting level after the must fall back upon an a priori
wartime destruction, Marshall conclusion, yet a conclusion that is
Plan funds in the early years, confirmed by the whole range of
later an ample labor supply si- human experience: that when each
phonable from agriculture and of us is free to work out his own
from obsolete or inefficient indus- €conomic destiny, within the
tries, most recently the bracing framework of the market econ-
air of foreign competition let in omy, the institution of private
by liberalization of import restric- Property, and the general rule of
tions, the general dynamism of law, we will all improve our eco-
the Common Market, the break- nomic condition much faster than
through of the consumer as a when we are ordered around by
source of demand. For the fact bureaucrats. @®


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

THE

NES JAN

WILLARD M. Fox

THE ALLIANCE FOR PROGRESS is or bare dirt floors. Many go bare-
foredoomed to fail. Both its pur- foot from the cradle to the grave.
pose and its methods are defective. With a few exceptions, as in Ar-
Its analysis of the problem misses gentina, large numbers of the peo-
the mark, and its proposed solu- ple are illiterate. Sanitation is ne-
tion will only aggravate the situa- glected and disease abounds.
tion it is intended to alleviate. The No Latin American country has
net effect will be disastrous. The a firm tradition of either repre-
waste of billions of dollars exacted sentative republicanism or parlia-
from American taxpayers is seri- mentary democracy. None has an
ous enough, but this is nothing electorate capable of making an
compared to the harm of fanning orderly transfer of power from the
into flames the smouldering anti- “Ins” to the “Outs.” Most have
Americanism south of the border. bloated bureaucracies of incompe-
Propaganda for the Alliance has tent, corrupt civil servants lacking
led Latin Americans to expect understanding of the kind of in-
miracles that are impossible. stitutional framework essential to
When these miracles fail to come a free, industrialized, expanding
off, the result must be bitterness economy.
and hatred toward those who held Yet, abetted by the Alliance, the
forth false promises. Latin American ruling cliques are
Latin America does have serious bent on creating industrialized
problems. Its population is explod- economies directed by govern-
ing. Far too many people live lit- ments. Almost all of them, to the
erally from hand to mouth and go extent that they have any economic
to bed hungry, sleeping on straw Philosophy, believe in state plan-
—— ning and direction of the economy.
rridinox. Is f morket research executive now They are inclined to take the word

12


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

1962 THE ALLIANCE FOR PROGRESS MUST FAIL 13

for the deed, and to believe that are anxious to plan it, do it, and
enunciating a grandiose plan is charge it to the American tax-
equivalent to executing it. payers. It is technically possible to
It is impossible to help people build Diesel-electric locomotives
effectively if they will not cooper- in any Latin American country. In
ate. It is doubly impossible to help fact, they are on the list of things
them if they insist that a request the Mexican government wants
for cooperation is an unwarranted built in Mexico. There are at least
and insufferable interference in three ways this could be done. The
their affairs and an impudent and government could set up a wholly
insulting affront to their pride owned corporation, just as it set
and dignity. This is the insur- up PEMEX to monopolize the pe-
mountable obstacle. troleum industry. It could set up
Latin American powers want a joint venture backed by Mex-
United States taxpayers to give ico’s Development Bank, Nacional
them billions of dollars with no Financiera, with all-Mexican or
strings attached. If we do, the bil- mixed Mexican and foreign capi-
lions will be spent by corrupt and tal and technical assistance and
inefficient bureaucrats. If we in- licensing agreements with some
gist on honest and purposeful firm in the Diesel-electric locomo-
spending for basics such as roads, tive business. Or, it could grant a
education, water and sewage sys- monopoly to some foreign firm
tems, with controls adequate to like General Motors or General
minimize graft and insure compe- Electric with a contract from its
tent management, we shall be state-owned railroads to insure a
damned for interference in inter- profit to the builder. None of these
nal affairs, interventionism, and methods makes sense, though each
imperialism. Either way, we are is technically possible. The simple
going to be even less popular than fact is that Mexico does not offer
we are. a big enough market for Diesel-
Latin American politicians and electric locomotives to make such
their advisers are most reluctant an enterprise economically sound.
to acknowledge the existence of
such principles as comparative The Facts about Comparative Costs
costs, geographic specialization, There is no question that any
and international division of labor. country has the naked power with-
They are loath to admit or accept in its own borders to undertake a
limitations of their powers. If a program of industrialization and
thing is technically possible, they self-sufficiency. A country such as


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

14 THE FREEMAN December

El Salvador or Honduras doubtless States and other countries. They
could build its own electronics in- have innumerable forestry and
dustry and manufacture its own fisheries products. They have large
television receivers and large-scale unused pools of potentially indus-
computers. There is also no doubt trious labor. They have, or can
that United Fruit has the techni- quickly develop, almost any num-
cal skill to grow bananas in Bos- ber of artisans and craftsmen cap-
ton, where it has its offices. Never- able of working with simple, low
theless, the cheapest way for cost tools to turn out products
United Fruit to get bananas is to readily marketable in industrial
grow them on its plantations in countries.
the tropics, The cheapest way for
Latin America to get the kind of What Kind of Jobs?
automobiles its roads and dis- The crying need in Latin Amer-
tances require is to buy them from ica is for jobs, a need that grows
Detroit. No Alliance is going to as an explosive birth rate and a
change these facts of life about falling death rate create a larger
comparative costs. potential labor force each year.
By going along with and even The most acute shortages in Latin
fostering the notion that Latin America are the lack of imagina-
American countries ought to in- tive entrepreneurs and the lack of
dustrialize and manufacture their equity capital for them to use.
own automatic tools and petro- Given this state of affairs, it
chemicals — under obvious disad- makes no sense to encourage the
vantages of economy of scale, com- development in Latin America of
parative costs, and specialization “showcase” industries — in which
of resources —the Alliance hurts Latin America has natural disad-
both Latin America and the vantages and which require large
United States. Far better to let capital investments and relatively
individuals do the things for small numbers of employees. Auto-
which they are competent and mobiles, petrochemicals, machine
have natural advantages. tools, and countless mass produc-
The comparative or absolute tion items are best produced in
natural advantages of Latin large-scale plants with huge capi-
Americans are not limited to min- tal investments and highly auto-
ing and growing bananas, cotton, mated processes. Yet these are the
coffee, and henequen. They can kind of investments that fascinate
and do produce various fruits and the political leaders involved in
vegetables not grown in the United the Alliance for Progress.


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

1962 THE ALLIANCE FOR PROGRESS MUST FAIL 15

Such projects hurt the citizens cally in Latin America at com-
of Latin America by diverting paratively high cost are sold lo-
available capital from economically cally at higher prices than imports
sound to economically unsound command. Thus, Latin Americans
uses. They also hurt the American have less to spend for other prod-
citizen, taking from him tax dol- ucts and must go without some im-
lars he could otherwise use for his ports they would otherwise buy.
own ends. The Alliance hurts The Alliance merely slows down
Americans who want to do busi- the U.S. economy without helping
ness in Latin America. It encour- Latin America.
ages Latin American governments

to increase their discrimination Proponents of the Alliance for
against American products which Progress are in the politically
their own citizens want. awkward position of having made

By way of the Alliance, we tax promises that can’t be fulfilled,
ourselves to destroy existing jobs having sown the seeds of bitter
within the United States and to disappointments. That the Alliance
prevent the creation of other jobs. must fail is daily more evident.
This reduces our own standard of What remains to be learned by
living to no useful or lasting pur- government officials in Washing-
pose. It is not true, as some labor ton and in Latin American coun-
leaders protest, that the Alliance tries is that the best hope for the
will “export jobs.” Closing Latin kind of progress useful to individ-
American borders to imports from uals is through competitive pri-
the U.S. means that job opportuni- vate enterprise and voluntary ex-
ties here simply vanish; they are change — whether within or across
not exported. Products made lo- political boundaries. @®

What Is a “Less-Developed” Country?

»”

NO ONE SEEMS SATISFIED with the term “less-developed country
or “under-developed country.” It does not exactly mean “poor
country,” for some comparatively poor countries are progressing
rapidly and resent the term. It does not fit the meaning of
“countries where development is going on apace,” for it is scarce-
ly applied, for instance, to Canada. . . . But among the “less-
developed” countries, as the term is most often used, almost all
have at least one thing in common. They are countries that desire
capital but have not yet put into practice the methods of capi-
talism,

HAROLD FLEMING, States, Contracts and Progress


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

Chey arent like us

EDMUND A. OPITZ

COLLECTIVISTS, in all but a few genuine problem; at issue is the
instances, try to base their case efficacy of political remedies.
on economic grounds. They call at- The natural way of tackling
tention to the plight of needy per- economic problems, one would
sons or groups and then propose think, is by the use of economic
legislation designed to alleviate means; and so one calls this point
the situation. Is there a slum? Re- to the attention of the “liberal,”
place it with a government hous- the socialist, or the welfare stater.
ing project. Is there a “depressed It is wasted effort, for the seed
area”? Build a “defense plant” usually falls on barren ground.
there. Is X industry in trouble? The economic argument is not
Give it a subsidy. Does the econ- hard to follow, and it clearly
omy need a shot in the arm? Hand demonstrates that the economic
out a veteran's bonus. And so on ends the “liberal” says he wants
and so on; the list is endless. Each to attain cannot be reached by the
of the items, however, has some- legislative route. This conclusion
thing in common with all the is buttressed by a brief analysis
others; each one proposes to cor- of the nature of political action,
rect an economic problem by po- to show its limitations; govern-
litical action. There is no deny- ment has no economic competence.
ing, in many instances, that the The “liberal” is singularly un-
economic problem alluded to is a moved; your arguments don’t
seem to get anywhere near him.
The Reverend Mr. Opitz is o member of the Ie acts as if they dealt with con-

staff of the Foundation for Economic Educa- siderations of only incidental in-

16


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

1962 THEY AREN’T LIKE US! 17

terest to him—and I have been Former Assumptions
forced to conclude that this is in-
deed the case! That is to say, the
collectivist is only incidentally
concerned with the economic
plight of this or that person, or
even the country at large. He
seizes upon economic problems as
an excuse for political action, be-
cause at our stage in history this
is the handiest and most accept-
able excuse available. And he un-
dertakes political action to pro-
mote his private utopia.

These tentative conclusions are
rather recent, so far as I am con-
cerned. Until recently I tended to
assume that “liberals” and welfare
staters are folks like us — “us” re-
ferring to libertarians and con-
servatives. Our goals, while not
identical, were at least compatible.
We differed on the question of
means, but our differences here
were discussible. Therefore, when-
ever I was buttonholed by a man
of the Left, my pitch would run
something like this: “You and I
are pretty much of one mind on

The Holy Grail the collectivist the questions of temporal ends or
pursues is a political vision; he is goals; we desire to see other folks
bemused by the dream of a society in better circumstances. We would
running with the smooth precision like to see them better housed,
of a machine — every cog in place, better fed, better clothed, and bet-
individual performance reduced to ter educated. We'd like to see them
routine, novelty eliminated, pre- healthier, receiving improved
dictability established. Such is the medical care, enjoying more leis-
Brave New World of collectivism; ure, and living in anticipation of
it is a pseudoreligious vision, a a happy old age in a world where
down to earth rendering of the the evils of war and poverty are
Kingdom of Heaven, and its remote. There is more to the truly
prophets hold out economic con- human life than this, of course,
siderations merely as a come-along but these are genuine human
for the populace, and as a ration- goods, and they are precisely those
alization. They are unaffected by ends which many of our contempo-
rebuttals of their economic argu- raries hope to attain by using gov-
ments because they attach so little ernment as a means.
importance to economic matters. “As to the desirability of these
Only their utopian vision is really ends,” I would tell my “liberal”
vulnerable, but the problem is —to friends, “we have no particular
paraphrase an old cliché — that quarrel; where we differ radically
“we are all utopians now.” is in the realm of means. You be-

Utopian Dream — Every Cog in Place


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

18 THE FREEMAN December

lieve that government is an apt ciety. In a complex society, such
instrument for attaining the as the one we live in, the number
aforesaid goals, while I hold that of plans by individuals, groups,
these goals cannot be reached via and corporations is virtually in-
the political route. That is to say, finite at any given time. The de-
the nature of the political action cision-making process is split up
is such that government cannot into millions of parts, and there is
possibly be used as a lever to raise free choice in profusion. This sort
the general level of economic, phy- of thing is incompatible with a
sical, and intellectual well-being. Planned Society, and so the Plan-
We must, therefore, rely on other ners must prevent people from
means — on men and women in a carrying out many of their pri-
market economy, working competi- vate plans. Repressive tactics are
tively and cooperatively, with gov- used to make people conform to
ernment seeing to it that the the Plan and some people are hurt
rules of the game are not being thereby.

violated.” When this deliberate injury to
some people as a matter of public
A Confusion Over Means policy is pointed out to the Plan-

ners, they offer us, in expiation,
some words of Lenin to the effect
that you can’t make an omelet
without breaking a few eggs.
This thought, when it is allowed
to sink in, carries some unpleas-
ant connotations — even when it is
obvious that the egg-breakers ac-
tually do have an omelet in mind.

The assumption behind this
opening gambit of mine is that
the great social drift of our time
— away from the free society and
toward one in which men are in-
hibited and directed in every sec-
tor of their lives — is explicable in
terms of a confusion over means.
If the way we are traveling is ac-

tually the road to serfdom, then But the connotations worsen as
—1 told myself —it is only be- the suspicion deepens that perhaps

cause those who are taking us step the egg-breakers have no thought
by step down this road do not of omelets at all! The Plan itself
realize what awaits us at its end. has become their end and goal;
The society at the end of the they break cgg after egg looking
road is regimented; it is operated for a pearl!
according to a Plan, and the Plan Go back a century or so. Spokes-
is imposed by the few at the top men for all parties of The Left
on the many at the bottom. Now, enunciated their goals in words to
planning takes place in every so- which those of us who feel some


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

1962 THEY AREN'T LIKE US! 19

affinity for the Classic Liberal tence, to the role of an umpire
tradition could respond. They said with the power to penalize aggres-
they wanted to abolish poverty, sors. This remedy was never fully
and so do we; they said they applied and, given human nature,
wanted to eliminate war, and we, probably never will be. But under
too, favor peace; they aimed at Classic Liberal prodding, society
overcoming man’s epidemic sense did move in this direction.

of alienation, and we go along. In brief, all men of good will,
until recently, could come to a

The Classic Liberal Remedy rough agreement as to ends, but
No libertarian could conscien- ‘ liberals” and libertarians clashed

tiously undertake a blanket de- on the question of means, Today,
fense of the nineteenth century; however, the “liberals” have a new
and when Karl Marx lit into some end: The Plan. The “liberal” es-
of the injustices of his time with chatology culminates in a utopia
the stridency of an Old Testament run by their kind; a heaven on
prophet, he appealed to that sense earth. They endorse this or that
of fair play which is deeply rooted Political intervention, then, not as
in our culture. Marx’s remedy, 2 political means toward some eco-
however, was an aggravation of nomic end, but as a Good Thing in
the disease because his analysis itself and as a necessary step in
and diagnosis were so wide of the the direction of a society con-
mark. He was warped by hatreds, ceived in terms of a work of art,
and came to regard the market the product of a few men’s design
economy as the fountainhead of and artifice.

social evil — a sort of inverse Deus

ex Machina. The New ’‘Liberal’’ Alternative
Proper analysis, on the other This is not to say that some
hand, reveals that “the market’— group of “liberals” has produced

shorthand for the system which a manifesto in which this new
provides for unfettered consumer tack is announced. Nor is it to
choice — has always been ham- suggest that every interventionist
strung by unwarranted political is a utopian; many are honestly
interventions, and that unforeseen in error as to the far-reaching ef-
injustices invariably occur in con- fects of some piece of legislation
sequence of such interventions. which seems momentarily to con-
The Classic Liberal remedy, based fer a benefit on AB industry or
on this diagnosis, was to limit CD pressure group. A man’s real
government to its proper compe- creed is to be determined by ex-


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

20 THE FREEMAN December

posing the assumptions on which on the other hand, the pros advo-
he habitually acts, and discover- cate political intervention as a
ing their purport. means to attain political ends —
Perform this surgery on the with a few economic sops tossed
professional “liberal” and things in as a camouflage — then econ-
begin to make more sense. The omic rebuttals are irrelevant in
real pros put through a program this instance. The pro is not try-
of legislation ostensibly to build ing to attain economic ends, even
houses, electrify rural areas, re- though his words convey this im-
lieve the unemployed, take care of pression, and therefore he is not
the aged, protect the investor, and dismayed when someone demon-
so on — listing every intervention- strates that he cannot attain eco-
ist item in the New Deal-to-New nomic ends! He seeks a collective
Frontier pharmacopoeia. The utopia as men of other ages have
sound economists then come for- sought personal salvation.
ward with an overpowering array What about power and privi-
of arguments to demonstrate that lege as “liberal” aims? That these
each intervention will result in a are ingredients of every political
new situation, worse than the old picture goes without saying. And
one it was designed to correct; collectivism of every variety and
that it will produce economic con- however diluted — from totalitar-
sequences at variance with those ian communism to the welfare
intended. These economic argu- state creates new power struc-
ments are not abstruse, and even tures in society and aggravates
if they were, the interventionists existing ones. It is inevitable,
are not stupid. To the contrary! therefore, that some people will be
Why, then, are they immune to attracted to collectivism by the
economic arguments which rebut hope that the revolution will put

their proposals? them on top. Power and control
for the sake of power and control
Economic Rebuttal Irrelevant exerts an irresistible attraction on

There is only one answer that Some personality types, a topic
makes sense. If the pros advo- which occupies the stage in politi-
cated political intervention to at- cal writings from Niccolo Machia-
tain economic ends, they would be velli to Gaetano Mosca; and the
crushed by the perfectly valid ar- minimizing and dispersal of
guments which show that their power in society has always been
stated aims cannot be achieved by chief among the aims of Classic
the means they employ. But if, Liberals.


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

1962 THEY AREN’T LIKE US! 21

The drive toward power for its ancient world looked back to a
own sake which crops up in to- Golden Age, a lost Eden, by com-
day’s ‘liberals’ and welfare parison with which the present
staters is not a novel thing in hu- and future are unprepossessing.
man experience, We have met the In the modern world, on the other
type before, and thus we can hand, a significant number of peo-
more or less take him in stride. ple has been encouraged to be-
History familiarizes us with lieve that progress toward a fu-
power struggles, and we have had ture earthly paradise is an inex-
some experience in defending our- orable law of nature. This is not
selves against power seekers. the outlook of the laboratory or

But defending ourselves against the observatory; it is a popular
those who pursue a political vision mood generated by the extrava-
with religious intensity is some- gant expectations people attach to
thing else again. This is a mutant the largely mysterious goings on
form of the political virus and in the laboratory and observatory.
our antibodies are not up to par. The various sciences have, since
The visionary, hitherto, has been the sixteenth century, accumulated
a harmless fellow toward whom an immense stock of knowledge
we tried to be polite. The political about the universe and man, in
visionary, on the other hand, is an which knowledge there inheres
armed prophet who hears voices. enormous powers of control over
Against this type our old defenses both man and nature. Many peo-
are of little avail and we must ple are thus disposed to believe
build new ones. Against an intel- that nothing is beyond the capac-
lectual and spiritual infection ity of Man, once Man puts his
there is no defense except under- mind, heart, and hands into a
standing, and so we must make project.

an earnest effort to understand The physical sciences have, in
how this new mood and mentality the modern era, far outdistanced
— utopianism — has arisen. the social sciences and other dis-

ciplines. So much is this the case
A Modern Development that the word “scientist” in con-

It is only since the Renaissance temporary discourse is usually re-
that men have dreamed up utopias served to the chemist and physi-
in earnest; the attempts associ- cist alone. The knowledge which
ated with the names of Plato and comes through other means than
Lycurgus in ancient Greece are those employed by the physical
half-hearted by comparison. The sciences is thought of as proto-


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

22 THE FREEMAN December

scientific, and perhaps untrust- construction. Socialist theories
worthy. Now, natural science ab- and socialist parties sprouted
stracts from the totality of things abundantly in this climate.
those aspects which are quantita- Men of previous ages had
tive and measurable. It puts to one dreamed of a society in which the
side, as not being amenable to masses of people would be con-
treatment by its methods, those as- trolled by an elite, so that society
pects of things which are qualita- would run according to rote. The
tive and nonmeasurable. This need will to control was there, but the
not imply any disparagement. The only means at hand were so primi-
scientist in his laboratory is inter- tive that the controls couldn’t be
ested in the classifiable, which made to stick for long. But now
means the common features of “science” gave would-be control-
things; the unique individuality of lers the means, and collectivists
things eludes the scientific method. tooled up for the job of making
men conform to the .Plan. The
Overworked Scientism universe, as ‘‘science” pictured it,
All of this is perfectly legiti- Was analogous to a piece of mech-
mate, as a method! It is only when anism, so it was only natural that
that which has been set aside — the any society scientifically estab-
qualitative and the unique — is for- lished and operated would be a
gotten or denied that trouble en- piece of social machinery requir-
sues. The guilty parties here are, ing social engineers for its main-
more often than not, nonscien- tenance.
tists; contemporary scientists are
quick to point out the limitations
of the laboratory. There is the A scientific law is more than a
British scientist, E. L. Grant terse statement expressing un-
Watson, for instance, who writes, varying relations between brute
“Life defies measurement. Only fact; it embodies elegance, sim-
the properties of nature, not the plicity, and convenience. A re-
essence, can be described in quan- cent writer on the philosophical
titative terms.” But many of the perspectives of modern science en-
scientists and publicists of a cen- titles one of his chapters, “Es-
tury ago were less cautious; they thetics and Relativity.” Discus-
vested science with a messianic sing the concept of Invariance, he
significance. Science was to be the writes: “Invariance with its im-
universal solvent for all human plied relativity is at least as im-
problems, the means for social re- portant in science as it is in art,

The Nature of Scientific Laws


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

1962 THEY AREN'T LIKE US! 23 .

for in science it introduces not from another: “He that knows
only elegance in the formulation one of their towns, knows them
of laws but also a large measure all.”
of simplicity and convenience.” A Every utopia is regarded as a
society at once elegant, simple, final accomplishment; it is at the
and convenient would be run like end of a line. Development has
a clock, needing only occasional proceeded up to that point, but at
winding and repair. The collec- that point it must stop. Such a
tivists had their ideal utopia in society has a symmetry which can-
direct view. not be matched by the free so-
A piece'of clockwork, composed ciety, not even in theory. It is the
entirely of interlocking, recipro- perfect adjustment to environ-
cating parts conforms more ment attained only when life and
nearly to the requirements of ele- growth are over, that is to say,
gance, simplicity, and convenience by a corpse!
than any living thing. The pro-
fusion of life in even a tiny
garden patch —its individuality,
its wildness, its defiance of en- But perhaps a new mood is
tropy, its lack of uniformity, and evolving in our day, more con-
its unmanageableness — is the genial to life and liberty. The ap-
despair of the mind that demands pearance of anti-utopian fiction
elegance. And when a man with is one straw in the wind. The
this cast of mind regards the an- spell of utopianism is broken
tics of his fellow men when they when men begin to write novels
are free, it is with a kind of hor- like 198} and Brave New World,
ror and loathing. So it was with giving the forces of life, develop-
Sir Thomas More — if his Utopia ment, growth, and freedom some
really reflects his own taste. Hu- air to breathe. Aldous Huxley's
man waywardness must be hero in the latter book is a rebel,
stamped out of utopia; uniformity called simply The Savage. He fails
inflicted. “Having rooted out of to adjust to the generally im-
the minds of their people all the posed uniformity, and when he fi-
seeds both of ambition and fac- nally confronts the dictator, Mus-
tion,” writes More, “there is no tapha Mond, this exchange oc-
danger of any commotion at curs:
home.” Nor would these de-in-
dividualized robots be able to dis- The dictator says, “We prefer
tinguish one of their termitaries to do things comfortably.”

A Spell Is Broken —
A Chance To Breathe Freely


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

24 THE FREEMAN December

The Savage replies, “But .I by unspeakable pains of every
don’t want comfort. I want God, kind.”

I want poetry, I want real danger, There was a long silence,
I want freedom, I want goodness. “I claim them all,” said the
I want sin.” Savage at last.

“In fact,” said Mustapha Mond,
“you're claiming the right to be The assessment of life implied
unhappy.” by this dialogue is profoundly

“All right then,” said the Sav- anti-utopian, but it corresponds
age defiantly, “I’m claiming the to a proper reading of the human
right to be unhappy.” condition. The facts of life are

“Not to mention the right to stubborn things indeed, and we
grow old and ugly and impotent; neglect them at our peril. There
the right to have syphilis and can- is no social insulation capable of
cer; the right to have too little to shielding us from the way things
eat; the right to be lousy; the are; we must face life as individ-
right to live in constant appre- ual persons in a society which is
hension of what may happen to- not based on any attempted mass
morrow; the right to catch ty- denial of life. The map of life has
phoid; the right to be tortured no spot marked “utopia.” @®

N LiBER TY A Real Problem

OUR GENERATORS, machines, and computers are precisely measur-
able, controllable, and predictable but the causes of the release of
human energy are not; least of all the ultimate source of all
energy and creativeness: the human mind. A real problem in our
society today is to find the way to keep free, to foster, and to
incite that great source of all our accomplishments: the restless
exploration and creativeness of the human mind.

., J. MCKINNON, President
Canadian Imperial Bank of Commerce


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

or — SANTA CLAUS "DIDN T NEED BIG. BROTHER

Another Christmas near. K -

The year had rolled around to bring

Old Kaspar tidied up the room

And radiated cheer, hy
While Peterkin and Wilhelmine 7
Looked at the metaphoric screen. J

They saw Old Santa’s little shop SA
Ablaze with neon lights, a
And watched the reindeer warming up J
In little practice flights; /
While Santa, looking spruce and gay,
Was stacking bundles on the sleigh.

“Old Santa Claus is back again!”
The little children cried.
“A year ago we were afraid /
He’d gone away and died!”
“When help arrived,” Old Kaspar said,
“They found him sick and nearly dead. ”

“Then after all,” cried Peterkin, A
“He did get Federal Aid!”

“No plans for that,” Old Kaspar sighed,
“Were ever even made.

A million parents made a dash

To rescue him with work or cash.”

“A few brought cash,” said Kaspar then,
“To pay Old Santa’s debts,

And pledged a fund to shield him from
The tax collector’s threats;

While others modernized his shop

From storage bin to chimney top.”

The children stood in silence then
With flabbergasted eyes. »
“It was amazing,” Kaspar smiled,
“For such an act implies
That helping hands can operate
Without compulsion by the state.”

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

25


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

D. M. WESTERHOLM

A FRIEND of mine asked a ques- them to respect the property of
tion a few months ago which others; not to steal, or destroy;
caused long moments of thought- not to borrow without permission;
searching until the surprisingly not to “redistribute” property
simple answer finally evolved. Its without the owner's consent —
simplicity should not have been even for the immediate good of
surprising, of course, because the neighborhood soft-ball team!
most truths are simple; (only We instruct them to enter an-
man’s attempts at qualifying and other's home only when invited.
compromising make them seem We explain that they must not tell
complicated). My friend’s ques- “stories” which would be harm-
tion was: “How can one possibly ful or distressing to someone else;
hope to teach very little children and not to make false accusations.
about such an involved and in- Further, we teach them that they
tangible concept as liberty?” may not simply command another
The answer given was: “Define child's unwilling obedience to
liberty, in your most basic and their own imperial bidding; and
simple terms, and you will find if our children are clever enough
that you are already teaching it.” or big enough to attempt this any-
Most of us start teaching our way, we try to dissuade them
children certain rules of behavior from becoming bullies. Finally,
at a very early age. We teach we teach them that all of these
them not to bite, kick, hit, or rules work both ways, both as re-
otherwise injure other people (ex- strictions and as protections.
cept in actual self-defense, or Well, if you are teaching these
formal competition). We teach things, you are teaching many of
Mrs. Westerholm is a Registered Nurse, house- the essentials of liberty - though

wife, and student of liberty of Inglewood, . PY : a . m..
torn perhaps not calling it liberty. Try

26


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

1962 POCKET-SIZED PATRIOTS 27

expressing some of these ground- usable attitude toward patriotic
rules of behavior in Constitu- actions and thinking. There's
tional language, and they would really nothing shameful or un-
read like this: manly or socially derelict about

“The right of the people to be saying right out loud that you
secure in their persons, houses, love your country and cherish
papers, and effects, against unrea- freedom! Most children love to
sonable searches and seizures, use new words, so why not give

shall not be violated.” . . . them some with real significance?
(Amendment IV) “No person A lot .of us give moral and re-
shall . . . be deprived of life, ligious explanations for many of

liberty, or property, without due our rules: “God wouldn’t like you
process of law; nor shall private to do this.” Certainly this is fine,
property be taken for public use and true. These issues are indeed
without just compensation.” — moral concepts. But if you would
(Amendment V) ‘. .. Neither - have your youngster grow up to
--siavery nor involuntary servitude, understand his national heritage
except as a punishment for crime of specific freedoms, why not
whereof the party shall have been simply also tell him that the
duly convicted, shall exist within Founders of our nation believed so
the United States . ..” — (Amend- strongly that man’s right to per-

ment XIII) And “. . . the accused sonal liberty was endowed by our
shall enjoy the right to a speedy Creator, that they built our gov-
and public trial . . . and to be in- ernment and our nation on it? Ex-

formed of the nature and cause of plain that these ideas are basically
the accusation; to be confronted positive protections, not just pro-
with the witnesses against him hibitive restrictions. Tell him that

. and to have the assistance of his ancestors fought with their

counsel for his defense.”’ — lives to achieve these freedoms —
(Amendment VI) and that we must all guard them

This isn’t a bad start for a carefully and sternly, because they
three- or four-year-old patriot! have priceless value.

It does seem to help clarify the
issues if one gives these rules ac- Youngsters Learn Quickly
tual names and clearly worded You may be amazed, as I was,
reasons. Helping children develop to discover how much of this even
a usable patriotic vocabulary, by your four- and five-year-olds will
example and repetition, will also comprehend. I do not understand
help them develop a practical and the tendency to underrate the ca-


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

28 THE FREEMAN December

pacity of a child to learn and un- has ten dimes, he’s going to have
derstand moral issues; after all, trouble buying twelve bottles of
most of the first formal lessons we pop that each cost a dime. Identi-
expect them to learn are based on fication has appeal to his imagina-
moral codes (or physical safety tion and dramatic sense. He loves
factors). Perhaps we need to re- to pretend himself into the back
view our own interpretations of hills of Kentucky as Daniel Boone!
these codes and arrive at simpler One had best be well armed with
definitions and clearer terms —so clearly thought-out facts before
that we may more easily pass trying to teach anything to any-
them on to our children. I know I body — but especially is this true
had to do this — am still doing it! when teaching children. Nothing
Youngsters seem to understand can be quite so withering as the
and respect the basic fairness and barrage of machine-gunned
logic of a statement such as: “No “why’s” that will follow a care-
one else has the right to harm lessly dropped vague generaliza-
your body or property except in tion!
self-defense; so, you naturally By using these three tools (and
have no right to harm another plenty of midnight study ses-
fellow’s body or property except sions), I have been able to tackle
in self-defense.” Usually, if you such diversified questions as:
simply tell a child that something “What does a parity taste like?”
isn’t right or proper, he will auto- And, “How can Alaska and Hawaii
matically ask, “Why?” It saves be part of the United States when
time to answer the “why” before they don’t even touch the rest of
he has to ask it! them?” Or, “Is the government
the building where the President
goes to work every morning when
If T had to choose the three he leaves his white house?’ And
tools I've found most helpful in once, after I had challenged a real
teaching my children (and my- whopper, “Gee, Mom, can’t we just
self), they would be: fairness, call this an example of my good
logic, and identification. Fairness old creative imagination?” Be-
appeals to a person’s own desire lieve me, pediatric patriotism has
for comfort and security. He likes its hilarious moments!
the idea of doing fairly to others Few are the things in life more
and of being fairly done to. Logic soul-satisfying or fascinating
appeals to his eagerly expanding than watching a child reach out,
intellect. It makes sense that if he and grasp, and use knowledge. To

Three Tools for Teaching


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

1962 POCKET-SIZED PATRIOTS 29

see him listen to an idea, come to liberty can man or child find the
understand it, and then act on it, environment for the fullest de-
is to see a miracle happen. The velopment of individual intellec-
entire process is one continuing tual and creative potentiality. And
miracle — a never-ending physical these potentials might be cathe-
manifestation of the omnipotent drals or careers, books or bridges
genius and love of our Creator. or businesses.

How awe-inspiring, unbelievably Young adults today have truly
complex, and exquisitely beautiful staggering problems to face. They
is the growth of a child. must not only learn to deal with

. the personal economic problems
Before the Man, Came the Child and responsibilities of earning a

The mind and hands of man can livelihood, and make the difficult
produce marvelous accomplish- adjustment from a sheltering
ments. But before the man, came home to a competitive society; but
the child he once was; and as the they must also face the untidy and
child grew, so grew the pattern of disconcerting facts of inflation, an
the man. If you believe, as many incomprehensibly huge national
of us do, that we were individu- debt, and the threat posed by in-
ally endowed by our Creator with creasing socialistic assaults
certain potentials of creativity, against the very foundations of
and that to develop, enlarge, and the fortress of freedom. It seems
utilize these potentials is not only reasonable that there might be
a worthy goal of living but a way less dismay and confusion for this
to grow closer to God, it becomes emerging citizen if he had been
enormously important to protect taught about the national situa-
the governmental environment tion, in a gradual way, as a child.
which allows every man to go Not in a gloomily negative man-
about this business of growing, ner, but in a constructive let’s-see-
learning, and creating in his own what-we-can-do-about-it manner.
way. I tend to agree with the gentle-

History repeatedly warns that man who said, “Patriots are made,
as freedom and liberty wane, so not born.” He might have added
does creativity and progress — for that they come in all sizes, too —
the latter can flourish only in the from three feet tall, to the top of
warmth and tolerance of the the scale. I confess a very special
former. Only in a nation dedicated warmth for those eager, wide-
to freedom and maintained in eyed, pocket-sized patriots! @®


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

GERMANY’S RISE from postwar
prostration to after-war affluence
has been widely called the “Wirt-
schaftswunder,” the economic mir-
acle. And anyone who saw Ger-
many in the bleak years of 1945-
1947, the cities half in ruins, the
currency so worthless that ciga-
rettes were preferred to marks,
the people hungry, listless, and
apathetic, economic revival

’ checked by scores of harsh occupa-
Germany’s y ooes be

tion regulations, might well have

mi set a generation as a minimum
Econo 1C term for the restoration of more
Miracle or less normal conditions.

- But striking improvement be-
in Danger gan in 1948, when the worthless
marks were swept into the ash
can and replaced by a new hard
EEESeEEEEEeseesm—mn Currency. It was a drastic surgical
operation; for the second time in
twenty-five years a hopelessly in-
flated currency had to be mainly
written off. But the restoration of
the incentive of sound money,
with which food and clothing could
WILLIAM HENRY CHAMBERLIN be bought at normal prices, was
the indispensable incentive to
hard work and rising production
figures.

What gave lasting momentum
to the brilliant economic recovery
was a stroke of genius on the part
of one man, chubby, cigar-smok-

Mr. Chamberlin is a skilled observer and re-
porter of economic and political conditions at
home and abroad. He hos written a number
of books, has lectured widely, and is a cone
tributor to The Wall Street Journal and many
nationally known magazines.

30


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

1962 GERMANY’'S ECONOMIC MIRACLE IN DANGER 31

ing, enormously energetic Ludwig Erhard did. He made a bonfire of
Erhard, Minister of Economics. all the wage and price restrictions
Well versed in classical econ- and launched Germany on the ris-
omics and a specialist in market ing tide of an economy that was
research, Erhard was completely freed after decades of severe con-
out of sympathy with the Nazi trol.
idea of a controlled economy and This was not accomplished with-
composed a secret memorandum out difficulty and opposition. There
on the economic and financial con- is a story that General Lucius D.
sequences that might be expected Clay, head of the American Mili-
after the collapse of Hitler's mad tary Government, called up Erhard
dreams of empire. Appointed di- and said: “All my economic ex-
rector of economic administration perts tell me that what you have
after the economic fusion of the done is very dangerous.”
American and British Zones of “So do mine,” replied Erhard,
Occupation, he had the vision and and continued to steer his freedom
courage to try the revolutionary course, with Clay’s later full co-
experiment of economic freedom, operation and support. For a time
leaving people free to work out of prices rose sharply. The trade-
the postwar devastation and im- unions called a general strike in
poverishment by their own efforts. favor of a return to planned econ-
One Nazi institution which the omy and controls. Some of the
occupation powers did not touch more fainthearted officials in
was an elaborate system of wage Erhard’s Ministry began to work
and price controls. When the cur- on drafts of new decrees restoring
rency reform was carried out in controls. But Erhard was un-
the summer of 1948, Erhard took moved. He had bet on freedom and
advantage of a loophole in what was confident he would not lose.
was then a strict system of for- “Even if the price pendulum
eign control over Germany’s econ- has passed the limit of what is
omy. It was strictly forbidden to moral and permissible,” he de-
change any single fixed price clared at that time, “we shall soon
without the consent of the occupa- enter upon a phase when, as a re-
tion authorities. But there was no sult of competition, prices will be
ban on abolishing the entire cum- reduced to their appropriate level.
bersome system; apparently, it This level will secure the best re-
was believed that no German lationship between wages and
would have the courage to risk prices, between nominal incomes
such a step. This is just what and the price level.”


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

32 THE FREEMAN December

Later, after the reality of the years from the shattered, listless,
economic miracle had been gen- hungry country of the first post-
erally recognized, Erhard, in a war years into one of the most
reminiscent mood, summed up the prosperous lands in Europe. I
considerations that guided him in knew Munich before the war bet-
this early critical phase of Ger- ter than most German cities.
man economic recovery: When I first went there after the

“The important thing was to end of the war, the main streets
create again an incentive to work. were almost unrecognizable as a
So, from the very beginning of result of the bombings that re-
our recovery, I encouraged free duced much of the city to rubble
imports of foreign goods, and not and ruins. Many beautiful pieces
on a basis of priorities or aus- of architecture have been irrep-
terity. I was sure that the more arably lost. But one can now go
we imported the more we would from one end of Munich to the
be able to export, thereby starting other and see few evidences of
an ascending curve. Confidence in war destruction. The city is burst-
our new money was strengthened ing at its seams with increasing
as people saw in the shop windows population. Its main problem now
a larger and larger variety of for- is not reconstruction, but control
eign goods, some of which they of the almost unmanageable traf-
hadn’t seen since the beginning of fic, symbolized in the figure of one
the Nazi era, million additional cars on the

“The competition of foreign roads of Germany in 1961. Year
products was bound to spur the after year, after the foolish and
ingenuity and resourcefulness of vindictive restrictions on German
our own manufacturers, who had industrial output were removed,
been cut off for a long time from new records were set in industrial
economic contact with the outside output and exports to foreign
world. There were critics at home countries. The only tangible sup-
and abroad who thought it was port for Germany's new currency
risky to bet so much on economic when it was introduced in 1948
freedom. But we were committed was an advance of $200 million
to this bet —and we won.” from the United States, and the
mark could be bought at a 40 per
cent discount in neighboring

Erhard’s policy touched off a Switzerland. Now Germany’s gold
steady boom of prosperity that and dollar reserves exceed six bil-
transformed Germany in a few lion dollars, and the mark is con-

Postwar Prosperity


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

1962 GERMANY’S ECONOMIC MIRACLE IN DANGER 33

sidered one of the soundest of Republic, one finds again and
European currencies. Indeed there again concrete examples of how
have been times when the German this free country has benefited
financial authorities were embar- from the managerial and technical
rassed by the big influx of fugi- and working abilities of people
tive money from England, France, who have been driven from their

and other countries. homes by national or class bigotry.
The Sudeten Germans of Czecho-
Refugees as Pacemakers slovakia were famous for their

A brutal decision, completely at handicraft skills in producing
variance with the principle of self- Musical instruments, toys, cos-
determination affirmed in the At- tume jewelry. They were driven
lantic Charter, has worked out, in {rom their homeland at the end of
practice, to Germany's economic the war. They brought these skills
advantage. This was the expulsion to the Federal Republic; one
or flight of some twelve million town, Gablonz, has even been re-
Germans and people of German established within the borders of
ethnic origin from the eastern Germany as New Gablonz.
provinces of Germany, from During a visit to Diisseldorf,
Poland, Czechoslovakia, Yugo- capital of the industrial state
slavia, and other countries of North Rhine-Westphalia, I be-
eastern and southeastern Europe. Came acquainted with a highly suc-
The booming free economy of the cessful manufacturer of cosmetics
Federal Republic found working named Schneider. Originally his
places for this enormous mass of business had been in Dresden, in
uprooted people. Germans often the Soviet Zone of Occupation.
speak of these newcomers as Realizing that private business
“pacemakers for all of us.” would ultimately be completely

Without this extra labor force Wibed out, Mr. Schneider took
Germany, its population depleted With him his blueprints, his trade
by millions of war dead, could secrets, some of his engineers and
never have gone so far so fast. skilled workers and moved to the
One such penniless refugee of the Federal Republic. His plant in
postwar period is named Berthold Diisseldorf now far exceeds in
Beitz. He is now managing di- quality and quantity of output the
rector of the historic firm of factory he left behind to be na-
Krupp, which does over a billion tionalized. This is only one of in-
dollars worth of business a year. numerable examples of how the

Traveling about in the Federal free part of Germany has bene-


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

34 THE FREEMAN December

fited from the brains and private arisen in the place of those which
managerial capacity that have fled were so brilliantly solved by the
from the part that is under com- powerful upsurge of the German
munist rule. economy during the fifties.

The combination of the German The business boom in Germany,
tradition of hard efficient work, still very pronounced in the build-
the immense release of individual ing industry, has been both cause
creative energy by Erhard’s free and consequence of increased sav-
competitive economy, the turn in ings and capital accumulation, not
American policy from repression only by the German people them-
to helpful cooperation, the big de- selves but by foreign investors
mand in the postwar world for the looking for a country in which the
machinery and machine tools rights to private property are re-
which German plants were espe- spected. This comparative abun-
cially qualified to turn out made dance of capital has eliminated
Germany until recently the model unemployment. With some 25 mil-
economic country of Europe. lion Germans at work, there are
Erhard struck off one restriction less than 100,000 registered un-
after another and led the parade employed; and these are mostly
of European nations back to full unemployable. Some 600,000 for-
currency convertibility. The im- eign workers, mostly Italians,
portance which the German Econ- Greeks, and Spaniards, have been
omics Minister attaches to this brought into Germany. And still
subject is evident from this quo- there are some half million job
tation from his book, Prosperity opportunities that remain unfilled.
Through Co-operation: Such full employment creates

“T go so far as to declare that its own special difficulties. When
whoever manages to do away with no one can be fired because of lack
foreign currency control will have of replacements, it is human na-
done more for Europe than all ture to slack off and work at
politicians, statesmen, members of something less than full efficiency.
parliament, businessmen, and civil Despite the traditional loyalty of

servants put together.” workers to some old-established
firms like Krupp, which have al-
New Problems Arising ways taken an interest in the well-

But a visit to Germany in 1962 being of the employees, one now
conveys the impression that the hears in the Ruhr and clsewhere
bloom is off the economic miracle numerous complaints of workers
and that some new problems have shifting capriciously from job to


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

1962 GERMANY’S ECONOMIC MIRACLE IN DANGER 35

job, shamming illness, and stay- possible the payment of the 8 per
ing away from work. Workers re- cent wage increase which the
ceive full pay for three weeks of workers were demanding.

absence from the job, and checks This sort of thing, of course,
on abuse of this right seem inade- does not make it easier for the

quate. harassed Minister of Finance,
The labor situation also places Heinz Starke, who no sooner gets
the trade-unions in the driver's the national budget balanced than
seat. During the first years of the he sees it unbalanced again by
“economic miracle” there was con- some new demand for higher pay
siderable restraint in posing new or larger subsidies. With the
wage demands. This is no longer memory of two destructive infla-
true. Wages have been shooting tions during the last forty years,
up, out of all relation to produc- there isin Germany a healthy fear
tivity. Wages rose by 9 per cent of deficit financing, and the head
in 1960, by 10 per cent in 1961; of the Bundesbank, Karl Blessing,
the corresponding growth in pro- has sternly announced that his in-
ductivity in the two years was stitution will not finance a new in-
6.5 per cent and 3.7 per cent. The flation.
threat of a politically imple-
mented, inflationary wage-price Production Comes First
spiral in a country which could
boast of one of the most stable
currencies (in terms of purchas-
ing power) in the world is quite
real.

These clouds on the previously
serene landscape of the “economic
miracle” caused Erhard last spring
to turn to the German people with
an appeal that was almost an SOS.

Another effect of this situation, Posing the question, “Have We
and one which is putting con- Tost the Feeling for the Possi-
siderable strain on Germany’s fi- ple?” Erhard warned his country-
nances, is that when employers men against succumbing to the il-
cannot meet demands for higher lysion that a people can consume
wages out of their own resources, more than it produces. Erhard
the state steps in and helps to has never been a mouthpiece of
foot the bill. This happened in the big business. He has criticized
Ruhr last summer when the min- employers as much for trying to
ers threatened to strike on the eve keep up prices artificially through
of an important state election and cartel arrangements as he has
the federal government offered a criticized the trade-unions for ex-
handsome subsidy so as to make cessive wage demands.


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

36 THE FREEMAN December

But in this appeal he took issue may happen in Germany detracts
with a viewpoint that has been from the tremendous object les-
gaining ground among the trade- son in the superiority of a free
union leaders: namely, that “jus- economy offered by Germany's
tice” requires a redistribution of spectacular recovery when Er-
national income. Erhard warned hard’s principles were in full
that continuation of excessive force. This object lesson is further
wage demands would lead to a enhanced by the drab squalor in
weakening of Germany's compet- the Soviet Zone of Germany. This
itive position, to a diminution of has been a real example of “com-
investment, to a reduction in tax petitive co-existence” between sun-
yields and, finally, to the destruc- dered groups of the same people,
tion of full employment. He ap- with the same educational back-
pealed to the German people, who ground and the same working ca-
for years had set an example to pacity. The results, to put it
the world of productive and finan- mildly, cannot be very satisfactory
cial discipline, not to throw away to Mr. Khrushchev. The erection
in a moment of blindness all they of the barbarous wall between the
had built up, and remarked that it two parts of Berlin has not
would indeed be an irony of his- changed by one iota the contrast
tory if Germany should go astray between busy prosperity in the
just when other nations which had Western part of the city and
suffered from loose inflationary desolate stagnation in the other.

finance were coming to their The German economy ran well
senses partly because of Ger- and smoothly when it was guided
many’s example. by the principles of classical lib-

It is an illustration of the jus- eral economics. If it is now expe-
tice of Erhard’s warning that the riencing some jolts and jars, this
big surpluses of exports over im- is because of departures from
ports, which enabled Germany to these principles.
advance from virtual national Wages, employment, prices, and
bankruptcy to a gold and dollar re- productivity will necessarily find
serve of over $6 billion, are di- their own natural and desirable
minishing just when they are levels if the government will fol-
most needed to meet such require- low two principles: (1) no infla-
ments as purchases of arms tion, and (2) no interference of
abroad, outlays for foreign aid, any kind in the arrangements that
and the like. employers and employees finally

Nothing that has happened or arrive at by free bargaining. @


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

ONE of man’s , No the Chinaman
first accomplish- | 7 smugly fattened
ments was the | 73) his own ego by
perfection of a | \ I claiming to have

simple, sure-fire, | i 8

almost fool-proof | !
method of build-
ing his ego. Often
known as the
“better - by - com-
parison” method, |
it has seen no im-

| cooked his meat
long before other
| men quit eating
theirs raw.

*. Hellenic women
| enjoyed little of
, the glory that was
| | ancient Greece.
provement since | < Because of Pan-
Adam claimed su- |! dora’s alleged cu-

=
periority over Eve EVERYONE'S riosity, Greek

because she ate | women were kept
the first apple. | FAVORITE at home while the

The beauty of | GAME less curious men
the ‘better-by- Lo ee _. . | went about mark-
comparison” JESS RALEY ing the begin-
method of boost- nings of a few

ing one’s ego is its simplicity of dozen branches of science and
operation. First, you make a state- bursting their laurel leaves over
ment that, being true, would give new explorations. It is difficult to
you an edge on someone. Next, visualize the heights Greek culture
you assume the statement is true might have attained had they been
and up goes your sagging ego. able to confine their ego-building
Don’t ever, under any circum- to other races in general and
stances, try to prove the original women in particular. But this
assumption. That’s not in the “better-by-comparison” game is a
game, although it is quite often growing thing. When Greeks be-
true. gan to apply the formula to other
All races, creeds, and colors, as Greeks of another city, the end of
such, are egoists. Many races Greek leadership was just around
built themselves up in their own the corner.
esteem for hundreds of years by Early Semitic civilization went
calling the Chinese heathen, while down the same drain. The Jew had
— a natural ego-builder because of
Mhilosonhar from Gogoince, author, speaker, his unique position in relation to

37


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

38 THE FREEMAN December

God; but this alone was not suffi- doubtful that any such decision
cient to satisfy him for long. Tribe can separate man from one of his
after tribe was expelled so that oldest and most cherished motiva-
the remnant might feel “better- tions.

by-comparison,” to the end that The same game is played quite
this remnant fell easy prey to the extensively on a person-to-person
enemy from without. basis, especially among children.

Each Germanic tribe fattened Most adults, in a more subtle
its ego by playing the “better-by- vein, use the “left-handed” method.
comparison” game at the expense This method gives the same re-
of other tribes of the same origin. sults but leaves no grounds for
They, in turn, provided ammuni- legal suits, hair-pulling, and right
tion for the conquering Roman hooks.

ego. To begin with, Smith, an archi-
tect, will agree Schweinsty, also
Racial Pride and Prejudice an architect, is one of the best;

Thus it has been from the be- but,— well, who wants plans drawn
ginning and quite likely will be by a man with a name like that?
until the end. By far the greater Blabberwise, the salesman, is
part of racial tension in the United quick to pass out orchids to a fel-
States today stems from this same low craftsman, but Old Slowpoke
source. Negroes are able to get a just can’t close one out, implying
boost by feeling “as good” as that he, Blabberwise, is a sure-
whites. Segregationists build their fire closer. Hammermore, the con-
ego by feeling better than Ne- tractor, builds his ego by believ-
groes. Integrationists feel better ing he’s the best there is, but he
by comparison because they claim doesn’t come right out and say
to believe all men are equal. Seg- 90— that would be childish. To
regationists pump their balloon hear him tell it, Plumbline, the
even larger by calling the integra- most persistent competitor, is a
tionists hypocrites who don’t prac- fine man, four square and all that,
tice what they preach; and so it but — those mechanics of his —
goes. The present Supreme Court Why, even his crew leaders can’t
may feel it has rendered a deci- read a square.
sion more in keeping with the Inkwell, the writer, keeps his
spirit of the Constitution than ego on the summit by believing
any like court in the past (and Blotter owes his success to an
possibly get a large charge from “in” with assorted editors. Circu-
so believing), but it appears lation may sag but not the edi-


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

1962 EVERYONE'S FAVORITE GAME 39

tor’s ego. He blames the distribu- standing. True, we no longer burn
tion agency. Distribution blames heretics at the stake, and there is
the editor. The publisher calls a commendable feeling of toler-
both to account — the publication ance among most Christians, but
may fold, but everyone's ego is that does not hinder the game.
preserved. Every member of an “ism” feels

No profession is above or be- strongly that he and the members
low playing “better-by-compari- of his “ism” alone are practition-
son.” People who do manual labor ers of the “true way.” The Ortho-
are especially adept at the game. dox Jew is quietly dignified in the
Pete, the shovel operator, admits certainty that his is the only way.
George can move more dirt; but Roman Catholics take pride in be-
look at the equipment he fouls up. longing to the oldest Christian re-
This without thought of the ligion. Protestants of different de-
cables he, Pete, breaks by crowd- nominations are firm in their con-
ing too fast. Bill, the carpenter, viction that the church of their
swells his ego by telling how Jim choice presents the more clearly
fouled up cutting a set of jack- defined road to heaven. In a mat-
rafters, while Jim takes pride in ter of such prime importance,
relating Bill's inability to fit a mankind longs to be part of a

joint. group capable of instilling such a
No one gets a larger charge feeling.
from playing “better-by-com- So popular is this game of com-

parison” than the gals. Their parison, so deeply imbedded in
scope is extensive (most of which man’s subconscious self, so im-
would seem unlikely material to a portant to his ego and necessary
mere man). It includes color of to his general well-being that
“hair and eyes, height, weight, families who might defend each
walk, talk, personality, clothes other to the death are unable to
(and how they are worn), pro- resist playing the game at the ex-
fession, running a home, children, pense of brother or sister, mother
family, men — considered personal or father, wife or husband.
property as a hat or bag —driv-
ing, and a hundred other things
too numerous to list. No one could deny that much of
Nowhere is the game played man’s uncomplimentary nature
with greater enthusiasm than in surges to the fore in the process
the field of religion, recent gains of playing “better-by-comparison.”
in religious tolerance notwith- Many complimentary attributes,

On the Other Hand


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

40 THE FREEMAN December

however, owe their origin to the the top. Southerner would love
game. Indeed, it is quite difficult, Yankee, Yankee would respect
and not at all pleasant, to contem- Southerner, Westerner would feel
plate a world without the influ- no better than the rest, and Texas
ence of this most popular game. products would decrease in size at
The exalting feeling known as an alarming rate.
pride would cease to be. No per- Women would cease to indulge
son would value country, race, col- in all the little tricks of the trade
or, class, religion, political belief, that make them more alluring.
or school of thought above an- There would be but one political
other. Among other things of party, one way of life, one reli-
greater magnitude, this would gion, one school of thought — the
mean all Frenchmen would agree. zeal to live, create, achieve, suc-
No longer would all good Irish- ceed, accomplish the near-impos-
men have cause to kiss the Blar- sible, build a better home, and
ney Stone. The Scots would cease furnish it better would be buried
to be conservative, and English- in one great abyss. Man would
men would have no preference be- find small incentive to provide
tween coffee and tea. more abundantly for his family.
Germans would no longer brag Women would not deem it impor-
that the Fatherland produced the tant to appear beautiful.
world’s greatest scientists. Span-
ish boys would have no reason to It is extremely doubtful that
dream of becoming great mata- any normal adult ever lived who
dors, and Italian chefs would did not play this ego-building
serve French fries with great game to some extent, although
gusto, There would be no motiva- few will admit participating. As a
tion for Americans to boast of matter of fact, many people be-
their country’s ingenuity. Sons of lieve they are above playing this
Eli would not feel superior to game—and get quite a charge
graduates of Harvard, Brown, or from so believing. In any case, if
Princeton. Lower class would have you should chance to meet a teeto-
no cause to fight for middle taler, no one will have to acquaint
ground, and middle class would you with the fact. You will recog-
no longer strive for a foothold at nize the bum at first glance.


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

HISTORY SHOws that whenever must also exist a choice between
people collect in groups, there two types of society. But the un-
must exist two factors if they are derstanding that everyone must
to rise above the level of animal constantly make this choice seems
conduct. These are leadership and to be a missing link in the voting
law. Admittedly, both leadership public's field of political knowl-
and law can foster evil and pre- edge. All too few perceive the

nature of this choice and how it

affects their actions and their

LEADERSHIP ne alternatives are these: On

the one hand, a society where all
responsibility for human endeavor
dation instead of ethical, tolerant, is vested in central authority —
creative, and peaceful conduct. government —be it the crown or
And though leadership quickly a political party or any other

rises among groups, "form. On the other
the law it produces and the - hand, a society where
can vary tremendously . . . . people accept per-

in quality. Yet the fact remains sonal ‘responsibility for their own
that human association in groups, affairs. This is the real issue, and
communities, or nations cannot it is relevant to everything people
last without these two factors.
People gather in groups mostly
for two reasons: (1) for the | RULE OF LAW |
destructive purpose of plunder or
warfare; and (2) to pool their ° CLIFF S. EMENY
skills, their assets, and their do, in work and in pleasure, in
labors in the endless struggle to the most obvious and in the most
wrest from nature the material intimate of human affairs. We
necessities of life. Our purpose in can no more escape choosing than
this discussion is not to foster we can escape the consequences
warfare but to concentrate upon of our choice.
creative and peaceful endeavor. Many people fall into the error
If there exists a choice of good of thinking that the choice is be-
or bad leadership and law, there tween communism (or socialism)
Mr. Emeny performs agricultural services on and some vaguely understood con-
a contract basis in New Zealand. This article ception of freedom — between gov-

is from an address before the New Zealand .
Society for Economic Individualism. ernment control and private con-

41


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

42 THE FREEMAN December

trol — always between things re- The Reason for Government

moved from themselves. In this At this point, let us try to es-
they are mistaking the methods ¢,p1ish clearly the reason for the
for the issue itself. existence of government in our

Obviously, most people want ,,;i44t As I see it, those groups
freedom. But they fail to define it joined together for the im-
conclusively. In fact, there are provement of the means of pro-
about as many variations of free- g,ction of the necessities of life
dom as there are people. Individu-  ¢,,, found, as we still do today,
ally, they fail to comprehend that ¢,.¢ humanity as a species always
the real issue is simply freedom produces its quota of predatory
from personal responsibility or gt ains — that a minority in its
freedom from slavery. To enjoy p,idst always prefer to plunder
freedom from personal responsi- the production of others rather
bility they must endure coercion {h.p struggle with nature to cre-
in some form. Those who have ate their own livelihood — that re-
delegated responsibility to some- spect for human life is not univer-
one else must henceforth do as gg among human beings — that it
they are told. Otherwise, the plan- iq necessary to defend by force
ning done for them will be dis- the fruits of their labors if they
rupted by the innumerable in- 4re to know even elementary se-
dividual conceptions of needs. curity.

Practically everyone rebels As the practice of peaceful co-
against slavery, or the use of operation increased, the wealth of
force against them by others. If those sharing the spoils of plun-
they desire freedom from being der attracted greater numbers,
bossed around, they must accept thug increasing the burden of de-
personal responsibility, and with fenge. Specialization being the
it, the consequences of their own pattern of all progress, the pro-
decisions. This state of affairs ducers soon found it more effec-
richly rewards wisdom and se- tive to hire some of their number
verely punishes folly. It is sig- to concentrate on becoming skilled
nificant that most people seek fighters. Long, long ago they
protection from their own folly doubtless delegated to this group
more diligently than they trust responsibility for their safety and
the rewards of wisdom, This is granted them a monopoly of the
merely a reflection of the lack of use of force in their community.
courage and character in our pres- Thus, they created government.
ent stage of human progress. It was an agency, supported by


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

1962 LEADERSHIP AND THE RULE OF LAW 43

the production of the rest, pre- their governments or the plunder-
sented with the opportunity to ing invasions of their neighbors.
contribute greatly to the advance- Over the ages, the slaughter of
ment of humanity by the exercise persons and the destruction of
of wisdom, tolerance, and honesty, natural resources, through wanton
through leadership and law. But, plundering and the attempts to
at the same time, it was also defend against it, defy compre-
equipped with the power to turn hension. Not even the greatest
on the people and enslave them. flights of imagination could en-
The gruesome pages of history compass the total carnage, which
show that, almost without excep- still goes on in many parts of the
tion, the power of government at- world. And though we ourselves
tracted or created men who chose appear secure today, the situation
the latter course. Government, could easily change overnight to
whose only justification for ex- our peril.
istence is to protect impartially The point is that fighting for
the property and the life of the freedom with weapons has been of
individual, has a shocking record little avail and holds even less
of doing just the opposite. Keep- promise for the future. Defen-
ing in mind government's proper sive violence is strictly an emer-
function in society, we must see gency measure, a last desperate
that whenever central authority resort, and its result for the most
transgresses beyond this strictly part has been to transfer coer-
limited role, it is no longer genu- cive power from one group to an-
ine government. Instead, it is a other, to the continued detriment
force of barbarism and corrup- of human liberty.
tion, something akin to the ma- I would trace the great break-
rauding wolf pack that plagues through in this struggle to the
the flock to satisfy its own appe- triumph of reason over force on

tite. the part of Moses. In his “Ten
Commandments” he appears to
The Struggle for Freedom have succeeded in combining

Let us now review briefly the leadership with the rule of im-
history of human progress in the partial and ethical law — to have
pursuit of individual freedom. produced a basic code of human

From the dawn of recorded his- conduct by which to resolve the
tory, men have been engaged in a problems of community life. That
continuous struggle to secure the Israelites grew and prospered
freedom from the barbarism of in a harsh and hostile land indi-


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

44 THE FREEMAN December

cates the value they gained from cient power to impose their will
this harmonization of leadership upon the populace, and Magna
and clearly defined ethical law. Carta could not prevail.
When they made the error of But a start had been made and
abandoning the system and ac- was followed by “The Petition of
cepting instead the rule of kings, Rights” in the third year of the
they were soon overrun by their reign of King Charles the First,
neighbors. a declaration of personal liberty
Greece and Rome both made and immunity from arbitrary tax-
their greatest contributions to hu- ation.
man progress when they permit- When William and Mary came
ted to function in large measure to the throne, the “Bill of Rights”
this combination of leadership advised them that the rights and
and law. Both nations suffered de- liberties inserted therein were
cline and subjugation when the the ancient, true, and indubitable
rule of law became the plaything rights of the people.
of government or sectional groups The “Act of Settlement” in
in the community, used for es- 1701 aimed at ensuring the inde-
caping responsibility for one’s pendence of the judiciary from
own welfare and plundering others control by the ruling monarch.
of the fruits of their labors. The Combined with these were the
change in the role of government Habeas Corpus Acts to assure

brought disaster to all. personal freedom from arbitrary
For European races, Magna arrest and imprisonment.
Carta in 1215 marks the begin- These five historic charters

ning of the battle to replace the represent a continuous attempt
rule of kings with the rule of law over several centuries to create a
and to make this an instrument rule of law sufficient to counter
to defend the individual owner- the abuse of power by kings —
ship of property from confisca- the groping of human minds for
tion by government. a solution to the repetition of
History records such events as plunder, slavery, and barbarism.
brief flashes where reason and
knowledge triumphed over brute Changing the Leader
force, where people laid down That progress came so slowly
their weapons and sought a solu- over these centuries can be traced
tion by intellectual effort. Un- to the main objectives of the
fortunately, human folly soon per- struggle. Our ancestors seem to
mitted men to accumulate suffi- have been primarily concerned


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

1962 LEADERSHIP AND THE RULE OF LAW 45

with replacing leadership from were sufficient to release mankind
the crown with leadership from from poverty and pestilence, from
parliament. The Civil War accom- the practice of plunder and the
plished this objective, but did abuse of political power. Further
little to abolish the abuse of evolutionary phases were neces-
power by central authority. sary before liberty was to be
Though great efforts were made achieved.

to fashion parliament into an im-

partial instrument of leadership, A Flow of Ideas

its laws were nonetheless dicta- Not all was in vain, however.

torial. Cromwell, the Civil War yaheas Corpus and the Act of
leader of such fine ideals and geitjement helped to free men’s
ethrcal standards, soon found it minds, their tongues, and their

necessary to condone shocking pong An intellectual offensive de-
standards of brutality to admin-  yelohed during the seventeenth
ister the economic affairs of the ,,q eighteenth centuries. Brilliant

people by parliamentary rule. minds dwelt deeply and freely up-
Eventually, finding it impossible = +p. oot pressing and the

to get agreement from parliament, oot apstract fields of politics
he assumed full dictatorship. and economics.

This appears to be the rock up- From such men as Ricardo,
on which the hopes of the people Adam Smith, Mill, Jefferson,
foundered. Both Cromwell and Hamilton, Paine, and Franklin,
parliamentary leadership still con- ; mention a few, came the flow
sidered the role of leadership and of pew ideas that were eventually
law to be one of coercively direct- 5 liberate great sections of man-
ing the economic affairs of the yind from the darkness of past
people. The people had merely ages. Their great contribution to
transferred the powers and privi- pLyman progress came from con-
leges of autocratic rule from a ceiving and proclaiming the view
group of courtiers to a group of that each and every human adult
parliamentarians, and they suf- possessed the ability to be respon-
fered accordingly. Though they giple for his own destiny; that
may have desired to live accord- individual freedom, matched with
ing to the highly ethical code of personal responsibility, was the
Moses, such a goal still eluded mainspring of all human prog-
them. Neither the fine words of ress; and that if freed of the
the five charters nor the turn crippling and frustrating direc-
toward representative government tion of central authority over


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

46 THE FREEMAN December

their property, their skills, and the economic system that finally
their energies, people themselves brought peace, progress, and lib-
would far better solve the prob- erty to Britain, the Common-
lem of providing their own food, wealth, the U.S.A. and all other
clothing, and shelter and at the nations that adopted it. The main
same time abolish both waste and effect of the system is to strip
barbarism from their midst. government of power over eco-

These were epic times, when nomic affairs and thus drastically
the darkness of economic ignor- limit its scope for coercion. With
ance was lifted and to the minds economic power dispersed over
of men were revealed the im- the whole population and eco-
mortal principles of natural and nomic affairs under the direction

economic law, of natural and economic law, po-
litical leadership was at last
Freedom of Enterprise stripped of both the temptation

Having discovered the princi- and the opportunity for violence
ples, great minds now turned to against the property and life of
fashioning the methods to imple- the individual. Because the gov-
ment such ideas. As has always ernment was relieved of responsi-
been the case, they were violently bility for the welfare of the in-
opposed at every turn by estab- dividual, it no longer had to im-
lished power and privilege. We pose a drastic form of coercion
owe a great deal to the eloquence upon his property, his skill, and
and perseverance of men like Ed- his energies. The dispersion of
mund Burke, the two Pitts, Cob- economic power led to dispersion
den and Bright and the Free of political power under universal
Trade groups of the early nine- franchise and, eventually, to a
teenth century, along with many vastly improved parliamentary
others, for the understanding and system.
acceptance of the economic system Few impartial observers will
combining private ownership with dispute the fact that the opening
freedom of enterprise, and the in- of the twentieth century saw
dividual’s unrestricted right to leadership and the rule of law
compete for support from con- far more actively engaged in pro-
sumers, who themselves enjoyed tecting the property, life, and
unlimited freedom of choice to liberty of the individual than at
shop where and when they re- any other time in world history.
ceived the greatest value. Between all English-speaking

It was this radical change in countries, and many of their


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

1962 LEADERSHIP AND THE RULE OF LAW 47

neighbors with whom they had For all forms of political lead-
fought for centuries, war had ership, of which parliament is
ceased completely. Trade and pop- only one, there existed the gravest
ulations flowed about the world in responsibility to exercise wisdom,
proportions previously undreamed tolerance, and honesty under the
of by the wildest prophets. rule of ethical and impartial law.

In these fortunate countries, A constant duty was to confine
central authority was limited to authority to the role of protecting
a strictly protective role, Parlia- equally the property of the popu-
mentary leadership and the rule lace from theft and fraud, and
of law attempted, within the their lives from violence and in-
limits of human frailty, to fune- timidation. Their task was not to
tion in harmony with the moral administer the affairs of men but
law, as laid down by Moses, natu- merely to dispense justice among
ral law as evident all around us, men who administered their own
and economic law as operated affairs —~to harmonize the use of
through private ownership of parliamentary and judicial law
property and freedom of competi- with the irrefutable principles of

tive enterprise. natural, economic, and moral law

It is surely worth reflecting up- — a fitting task for the most noble
on the basic structure of society men of any land.

which made this progress possi- One major point should be per-

ble. fectly clear. All the beautiful and

idealistic words within the human

The Foundations for Progress vocabulary, all the political and

For the individual, there were judicial institutions that mankind
four cardinal requirements: self- ¢an organize, are of limited value
reliance in productivity; self-di- 1 the task of preserving liberty
rection of economic and personal 2nd peaceful progress unless they
affairs; self-discipline in all as- &re created for the express pur-
pects of human conduct; and fi- Pose of defending four basic eco-
nally, self-respect for truth, for nomic principles. These are in-
quality of leadership, and for the dividual ownership of property,
rights of others. freedom of enterprise, sanctity of

For industry and commerce, contract, and freedom to compete
there was the obligation to place for consumer support.
no obstacle in the way of expand- Parliamentary rule can be just
ing the system of division of as autocratic as the rule of kings
labor and freedom of trade. unless it is devoted to such ends.


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

48 THE FREEMAN December

No community has ever known the only way to achieve coherent
liberty, democracy, and peaceful progress. Such people fail to rec-
progress until it embraced this ognize their own economic power
economic system. If any people and the methods available for
who have known such freedom are them to direct production, dis-
foolish enough to allow their gov- tribution, and exchange of all hu-
ernments to regain extensive man requirements.

powers of confiscation of private They fail to perceive that a
property or the direction of eco- most effective alternative method
nomic affairs, they are certain exists, which they and everyone
eventually to lose both liberty and else can use almost costlessly and
prosperity, once the reserves cre- eflortlessly. This is the method of
ated by freedom have been ex- voting through their disposal of

hausted. their personal resources. When
permitted to buy and sell freely,
The Urge To Control they will have one consistent

Whenever the subject of leader- thought, namely, to get the great-
ship and law arises in debate, one est value in every exchange. Thus
argument invariably comes for- people, acting individually, can at
ward, namely, that we must have the same time collectively pro-
someone, or some group, to gov- duce a prime motivating and di-
ern the country, to run every- recting force for industries and
thing; otherwise, there would be commerce accompanied by a dis-
chaos. The advocates of this cipline for human affairs vastly
policy, and I fear they represent Superior to any coercive power
the majority of our population, from central government. Also, by
demonstrate total ignorance of this method, the population can
economic law and little respect for establish conditions which insure
the noble quality of the human that no one rises to material well-
mind. Unwittingly they are re- being without bestowing a con-
turning to sixteenth-century tinuous measure of service upon
standards of thought and knowl- mankind everywhere.
edge. In the field of human relations

This implies that people individ- there is always one flaw in this
ually possess no sense of value in method of free and voluntary ex-
material things and no inherent change. It does not grant favors
moral standards —that force alone to anyone and has no use for
can show us right from wrong loafers, drones, or those who pre-
and that government control is fer plunder to creative effort. Con-


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

1962 LEADERSHIP AND THE RULE OF LAW 49

sequently, the predatory instinct, charters gives cohesion to human
always just below the surface in ideals, thus creating a lofty pin-
human nature, will everlastingly nacle to attract the noblest spirit.
try to find a way around such eco- The production of written consti-
nomic and moral law. Without the tutions gives guidance to the or-
aid of central authority, preda- ganizational requirements of com-
tory elements can have little suc- munity and national life. This al-
cess. But once let them succeed in so creates a banner around which
enlisting such aid and they will future generations can rally when
quickly wreck the pattern of their personal freedom is menaced
peaceful progress, enriching them- by predation in high places, as
selves at the expense of others. will inevitably happen. Constitu-

Human history is a continuous tionalism can define the strict
record of this evil. Only briefly limits of the exercise of power by
has any population escaped such authority and make those limits
troubles. Regretfully, granting fa- defendable by the rule of law. An
voritism to special groups has be- independent judiciary is essential
come the predominant feature of to resolve human conflict in every-
modern leadership, and the rule of day affairs. Universal franchise
law is being used extensively for can be used to choose the person-
plundering purposes. It is worth nel of central authority but gives
studying the lessons of Rome and very limited opportunity for the
Athens if we desire to know where expression of public will; as an
such dubious standards will lead instrument for directing economic
us. We seem to be treading the affairs it is most unsuitable and
same paths in our individual and highly dangerous. Parliamentary
national affairs that brought dis- institutions, if properly consti-
aster to both of these splendid ex- tuted with strictly limited powers,

amples of human association. can fulfill the need for leadership
and the rule of impartial and
Many Requirements To Be Met ethical law. The one main objec-

The lesson I would take from tive of all must be maximum free-
the history of the struggle for in- dom of voluntary and responsible
dividual liberty and human prog- human cooperation in creative
ress is this: that it takes a com- and peaceful endeavor.
bination of human activity to Yet, it would appear that all the
reach and preserve such treasured written laws in the world will not
goals. succeed in higher purpose, in de-

The production of finely worded fending liberty and progress, un-


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

50 THE FREEMAN December

less they seek to preserve and im- man race is wise and courageous
prove the only system for direct- enough to go forward to perfect
ing our economic affairs that is the harmonization of individual
consistent with economic and freedom with personal responsi-
moral law. For mankind lives and bility — or so foolish and cowardly
expands by the fruits of its as to prefer irresponsibility and
labors. Ample evidence exists that slavery. The irrefutable fact re-
we have found this method in pri- mains that in everything we do —
vate ownership and freely com- as individuals, as a family, as a
petitive enterprise. I would con- community, and as a nation — we
clude that the fate of mankind must everlastingly make this

will depend upon whether the hu- choice, @®
[pens SHOE All By Himself

THE MORNING after Charles Lindbergh flew the Atlantic nonstop
from New York to Paris, an associate of Charles Kettering
rushed into the research expert’s laboratory in Dayton, Ohio,
shouting: “He made it! Lindbergh landed safely in Paris!”
Kettering went on working. The associate spoke again: “Think
of it — Lindbergh flew the Atlantic alone! He did it all by him-
self!” Kettering looked up from his work momentarily and re-
marked quietly: “When he flies it with a committee, let me
know.”


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

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

THERE ARE fifty-two articles in winds blow into it and out again
this year’s anthology of Freeman from all directions. He is a little
and Notes From FEE articles, tired of being bought by the cen-
Essays on Liberty: Volume IX tral government with his own
(Foundation for Economic Educa- money, though his conscience
tion, 448 pp. $3.00 cloth, $2.00 hasn’t quite nerved him up to the
paper). To review such a collec- point of doing something about it.
tion is always a problem in the He prides himself on being a
disposition of the available space: small-d democrat, but he doesn’t
the poor critic inevitably feels as really believe that rights should
though he were being asked to be given or withheld on the say-so
compress fifty-two healthy and of 51 per cent of the voting pub-
pertinent responses into one. A lic. He doesn’t like to be called an
manifest impossibility! However, extremist, but can he always stay
one way to make a stab at accom- in the middle of the road and still
plishing the impossible might be respect himself as a man of prin-
to construct from the articles the ciple? He probably thinks the old
man whom the staff of FEE and central area of his city is pretty
The Freeman hopes to convince dilapidated, but he is of two minds
and then see how the articles as a when he sees his mayor carrying
whole apply to his predicament. a tin cup to Washington and beg-
ging for “urban renewal” funds
that are ponied up in part by peo-
The man whom The Freeman ple who live three thousand miles
hopes to change is uneasy about away from the region that is
retaining a mind so open that the slated for reconstruction.

A Time for Decision

51


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

52 THE FREEMAN December

Businessmen Wanted on synthetic ‘“image-making” as
If the man whom The Freeman a sheer economic waste.
hopes to reach is a businessman,
he is probably getting the benefit The Cost of Silence
of some subsidy or other. But pri- The man whom The Freeman
vately this businessman must hopes to convert may like to “get
often wonder about the virtue of along” with his fellows. But this
being “protected” by something desire for sociability is not always
that is calculated in the long run compatible with the responsible
to create a bothersome surplus of man’s urge to stand up and be
the very stuff he is offering for counted. The would-be responsible
sale. man may be ready for the gospel
This same businessman may according to Ludwig von Mises,
have a guilty conscience because, who has always been willing to
in the seventies of the nineteenth risk his neck for what he believes.
century, a few bold enterprisers Sociable people have kept quiet
attracted to themselves the name of gbout the inroads of inflation on
“robber barons.” Having a guilty their standards of living for the
conscience because Jim Fisk and past thirty years. They have also
Daniel Drew once rifled the Erie watched passively while the cost
Railroad treasury, the business- of government has risen from an
man may feel timid about coming average of $56 per person in 1900
out and saying that modern union to an average of $615 per person
officials are often guilty of prac- in 1960. They may have groused to
tices that would have caused the themselves about this high cost
pious Drew (who founded a theo- of government from time to time,
logical seminary) to blanch, but they haven’t wished to appear
Again, the business man may feel hard-hearted about the “need” for
that his alleged possession of government-dispensed charity.
“market power” means that he
must hire public relations men to The Welfare Burden
create for him a good “image” as The person whom The Freeman
one who would never use power hopes to reach may have been
unethically. Yet, under a system tempted in the past to undertake
where “market power” is entirely the ‘“do-gooder” role. But with
at the mercy of “consumer power,” dead-beatism being exalted as a
and hence must deliver in order way of life (see the response of
to hold its franchise, the business- the professional do-gooders to the
man may resent spending money attempt of Newburgh, New York,


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

1962 TO WHOM IT MAY CONCERN 53

to set up standards for city re- altation of the national purpose
lief), this person must be grow- works to undermine the concep-
ing skeptical of pushing “service tion of the individual as a crea-
to others” to the point of under- ture of God. Instead, he becomes
mining self-reliance. He may be a creature of the emergent state
ready to reflect upon the fact that —and a pushover for communist
the “general welfare” clause of infiltration.
the U. 8. Constitution has been
perverted to permit all sorts of
tax-supported ‘‘do-goodism” that The man whom The Freeman
Jefferson, Madison, Franklin, hopes to persuade is probably won-
Hamilton, and the other Founding dering why modern technological
Fathers would have deemed ar- efficiency hasn’t resulted in widen-
rantly unconstitutional, The erst- ing markets more than it has.
while do-gooder may now be ready And, in pondering the problem, he
to entertain the proposition that is no doubt ready to accept the
tax-supported welfarism is an in- proposition that taxes on business
vasion of the rights of an individ- must be charged into the price of
ual to employ the fruits of his goods and services if they are to
labor as he deems best — which, it be paid at all. The less the tax, the
should be noted, may include the lower the price and the wider the
private charity which some indi- market —and the less the chance
vidualists frown upon. that capital will “want out.”

As for the failure of foreign
aid to improve the efficiency and

The man whom The Freeman economic capacity of “underde-
hopes to reach has probably been veloped” nations, the potential
worrying about the purposeless- Freeman convert should be more
ness of many of his fellow citizens. than ready to realize that it makes
But the spectacle of people think- a difference whether the rulers of
ing more and more in terms of new nations import tractors or
compulsory national purpose must solid gold Cadillacs. Even John
seem to him to have its totalitar- Kenneth Galbraith and Chester
ian implications. The national pur- Bowles have arrived at the point
pose, when translated into such of questioning the ability of for-
things as price control, patently eign aid to take hold in countries
becomes “people control.” In emer- that haven’t developed traditional
gent countries, such as those of saving and investment habits of
mid-twentieth century Africa, ex- their own.

Taxation Affects the Market

Purposeless Citizens


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

54 THE FREEMAN December

Think on These Things pressed with analogies that are
The foregoing portrait of the not true parallels, with the tu
potential Freeman convert has quogque (or “You're another!)
been built up by abstraction from habit of name-calling, and with
articles in this year’s Essays on the “post hoc, ergo propter hoc”
Liberty. It may seem odd that a fallacy.
majority of Americans don’t al- It's unrealistic to suppose that
ready agree with the gist of the this year’s Essays on Liberty will
fifty-two articles. In the days of reach multitudes. But ideas aren’t
Madison and Jefferson practically Spread by sloganizing for the
every thinking citizen would have masses; they are spread by per-
quickly grasped the distinctions meation—and by example. Hi
set up in Clarence B. Carson’s “Of there, Freeman-contributor Stan-
Rights — Natural and Arbitrary.” ley Yankus under your Australian
The electorate of the early nine- banana tree! In living like a free
teenth century which refused to man, in undertaking the “hard-
vote for Albert Gallatin’s pro- est job” of improving yourself and
posals for a federally supported Your understanding of freedom,
canal and highway system would You are showing us all what to do.
have thoroughly understood John @
C. Sparks’s “The Highway Dilem-
ma” and Leonard Read’s ‘Into

Space and Beyond Criticism.” But, » MAN, ECONOMY, AND STATE:
as W. E. Sprague tells us in his

trenchant “Danger: ‘Mindtraps’ A Treatise on Economic Princi-
Ahead,” the socialist recruiter has ples, by Murray N. Rothbard.
rushed to benefit from the curious Princeton: D. Van Nostrand, Two
fact that America, with the most volumes. 987 pp. $20.00. ‘

comprehensive education system
in the world, has been strangely
unable to inculcate respect for the ONE of the unhappy casualties of
principles of elementary logic. We World War I was the old-fashioned
don’t think as clearly now as we treatise on economic “principles.”
did 150 years ago. This was a work not too technical

More than ever we fall for the to be read by the intelligent lay-
appeal to majorities, the appeal man, on the one hand, nor, on the
to the “heart,” the appeal to un- other, like current textbooks, a
analyzed statistics, the appeal to choppy and oversimplified com-
“authority.” We are still im- pilation of currently fashionable

Reviewed by Henry Hazlitt


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

1962 OTHER BOOKS 55

doctrine. One of the last of the ter, Knight, and Mises, a compre-
species was Frank W. Taussig’s hensive study of principles, which
Principles of Economics, first pub- treats economics as a coherent
lished in 1911. The spirit of that edifice, not a fragmented study of
book was revealed in a passage ‘utility,’ ‘‘monopoly,” “interna-
from the preface: tional trade,” “labor,” “agricul-
“] have tried in this book to ture,” “public finance,” and “linear
state the principles of economics programming.” Such a unified edi-
in such form that they shall be fice, as Rothbard explains, can be
comprehensible to an educated built only by treating economics
and intelligent person who has not as a deductive science using verbal
before made any systematic study logic. For “if economics proceeds
of the subject. Though designed by deductive logic grounded on a
in this sense for beginners, the few simple and evident axioms,
book does not gloss over difficul- then the corpus of economics can
ties or avoid severe reasoning. No be presented as an interrelated
one can understand economic phe- whole to the intelligent layman
nomena or prepare himself to with no loss of ultimate rigor.”
deal with economic problems who This was the method of the
is unwilling to follow trains of “Austrian” economists. It is the
reasoning which call for sustained method of Ludwig von Mises. In
attention. I have done my best to fact, Rothbard, a former student
be clear, and to state with care the of Mises, frankly takes off from
grounds on which my conclusions Human Action: “From now on,
rest, as well as the conclusions little constructive work can be
themselves, but have made no vain done in economics unless it starts

pretense of , simplifying all from Human Action. ... In one
things.” : sense, the present work attempts

to isolate the economic, fill in the
A Forty-Year Gap To Fill interstices, and spell out the de-

It is the announced purpose of tailed implications, as I see them,
Dr. Rothbard’s Man, Economy, of the Misesian structure.”
and State (two volumes running
to a total of 1,000 pages) to write
in this spirit and “to fill part of What contributions has Roth-
the enormous gap of forty years’ bard made to the structure? He in-
time.” And he has succeeded. He dicates some of them in his own
has given us a work in the tradi- preface. His book begins by deduc-
tion of Taussig, Wicksteed, Fet- ing the entire corpus of economics

Outstanding Contributions


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

56 THE FREEMAN December

from a few simple “axioms”: “the Rothbard also expounds “a com-
Fundamental Axiom of action — pletely new theory of monopoly —
that men employ means to achieve that monopoly can be meaningfully
ends”; that “there is a variety of defined only as a grant of privilege
human and natural resources,” and by the state, and that a monopoly
that “leisure is a consumers’ price can be attained only from
good.” Rothbard is not afraid to such a grant. In short, there can
be old-fashioned enough to begin be no monopoly price on a free
with “Crusoe economics” before market.”
he takes up interpersonal rela-
tions, and barter before he takes The Role of Time
up indirect exchange through So far I have adhered to Roth-
money. } bard’s own summary. But I am not
One of the features of his CON- gure he has done full justice to his
sumption-and-production theory is wn contribution. For example, I
“the resurrection of Professor gq, not recall any book (with the
Frank A. Fetter’s brilliant and, siple exception of the works of
completely neglected theory of rent Mises, Fetter, and Boshm-Bawerk)
— i.e, the concept of rent as the i,t ives so full a recognition to

hire price of a unit service. Capi~ the inherent and omnipresent (but
talization then becomes the process neglected) role of time, not merely

of determining the present values ;, tho explanation of interest, but
of the expected future rents of a, ay) economic activity. Rothbard
good. The Fetter-Mises pure time-  ,qctantly emphasizes time as an

preference theory of interest iS ;gispensable factor in all produc-
synthesized with the Fetter rent tion, and as a necessary but

theory [and] with the Austrian «g.a10e” means to all our ends.

theory of the structure of produc- On a score of other major
tion. . . . One ‘radical’ feature of points also, he contributes lucid-
our analysis of production Is a ty ang light: his excellent de-
complete break with the currently  goription of the enormous benefits
fashionable ‘short-run’ theory of ,f , money economy over one of
the firm, substituting for this a the direct exchange; his explana-
general theory of marginal value tion of why a separate theory of
productivity and capitalization. It “international” trade is unneces-
is a ‘general equilibrium’ analysis sary and why the “balance of pay-
in the dynamic Austrian, and not ments problem” for a nation is no
in the static, currently popular different from that for an individ-
Walrasian sense.” ual; his rigorous exposition of a


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

1962 OTHER BOOKS 57

pure time-preference theory of in- equations in which the mathemati-
terest; his mordant exposure of cal economists deal: “In human
labor union fallacies; his beauti- action there are mo quantitative
ful explanation of why the free constants. As a necessary corol-
market, far from being “anarchic” lary, all praxeological-economic
or “planless,” is the only organiza- laws are qualitative, not quantita-
tion under which true economic tive.” His exposure of the chief
balance and order are possible. Keynesian doctrines is thorough,
What does Rothbard’s book give and his criticism of Galbraith is
us that Mises’ does not? The ques- devastating.
tion can best be answered by a
comparison. One mathematician Some Debatable Points
does not necessarily differ from
another when he explores other
fields or other specific problems.
The chief difference between Mises
and Rothbard is that the latter,
treating at much less length some
of the basic problems that Mises
has explored more thoroughly, de-
votes a much larger part of his
work to the refutation of opposing
doctrines: some as found in the
older works, such as those of Hen-
ry George, Veblen, Marshall, Fish-
er, Schumpeter, and Knight; but
more particularly those found in
the literature of the last twenty-
five years — in the Keynesians, in
the “mathematical economists,” in

W. W. Rostow, in Galbraith. well be granted in perpetuity and

It is in the controversial part of the latter not at all; his conclusion
his work that Rothbard is most {pt repudiation of government

stimulating. With the statistical debt is no great evil; that it even
and mathematical economists he is has a “social utility,” and the add-
unsparing. He points out the ar- ed advantage of making future
bitrary and unscientific nature of government borrowing more diffi-
all index numbers, as well as the cult; his opinion that libel and
emptiness or deceptiveness of the slander ought not to be illegalized,

In discussing a book of such im-
portance, with so much in it to
praise, and with an instructive
challenge on nearly every page to
some “orthodox” or “unorthodox”
doctrine, it seems ungrateful to
call attention to flaws. Yet in a
structure of thought of which the
foundations are so carefully laid,
and in the midst of an otherwise
brilliant and penetrating discus-
sion, Rothbard will suddenly an-
nounce some extraordinary conclu-
sion based on a fragment of ab-
stract doctrinaire logic. Examples
are his sharp contrast between
copyrights and patents, and his
implication that the former might


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

58 THE FREEMAN December

and that even blackmail “would so rigorous, he is misled by his
not be illegal in the free society. epistemological doctrine of ‘‘ex-
For blackmail is the receipt of treme apriorism” into trying to
money in exchange for the service substitute his own instant juris-
of not publicizing certain informa- prudence for the common law prin-
tion about the other person. No ciples built up through genera-
violence or threat of violence to tions of human experience.

person or property is involved.” I mention these lapses because I
am certain that opponents of the
book, and victims of his devastat-
ing refutations, trying to discredit
so much that is brilliant and orig-

It is hard to explain these aber-
rations. They are in such sharp
contrast to the rest of the book
that they seem almost as if stuck inal and profound, will cite them
in by another hand. But they are ip olish and with the implica-
practically all in the legal and io, that the rest of the book can
political, rather than in the eco- ignored. But it cannot be ig-
nomic, field. The nearest I can poreq, It is in fact the most im-
come to a rational explanation of portant general treatise on eco-
them is to assume that when Roth- pomic principles since Ludwig von
bard wanders out of the strictly Mises’ Human Action in 1949. &
economic realm, in which his schol- ——

ee . . . From National Review (160 East 85th Street,
arship is so rich and his reasoning New York 16), September 25, 1962.

ID6R6. ON BIBEATY

CR Sn ET

Acting Individuals

THE FIRST TRUTH to be discovered about human action is that
it can be undertaken only by individual “actors.” Only indi-
viduals have ends, and can act to attain them. There are no
such things as ends of or actions by “groups,” “collectives,” or
“states,” which do not take place as actions by various specific
individuals. “Societies” or “groups” have no independent ex-
istence aside from the actions of their individual members. Thus,
to say that “governments” act is merely a metaphor; actually,
certain individuals are in a certain relationship with other in-
dividuals and act in a way that they and the other individuals
recognize as ‘‘governmental.”

MURRAY N. ROTHBARD,
Man, Economy, and State


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

— (INDEX

Volume 12, January-December 1962
Prepared by VERNELIA A. CRAWFORD of the Foundation staff

Note: In page references, the number preceding the colon designates the month; the number
following the colon refers to pages.
All Book Reviews are listed according to title of book in a separate section on page 63.

A
Abraham Lincoln; quote, 2:66 Carson, Clarence B. (continued)

Academic Freedom. By L. Read, 6:28 Individual Liberty in the Crucible of History
Alliance for Progress Must Fail, The. By W. 1. Foundations of American Liberty, 5:20
Fox, 12:12 2. Undermining the Foundations, 6:42
American System and Majority Rule, The. By 3. Circumstances Hostile to Liberty, 7:11

E. Opitz, 11:28 4. Collectivist Curvature of the Mind, A,
Anderson, Maxwell 8:28

Guaranteed Life, The, 10:16 6. Road to Collectivism, The, 9:17
Anderson, Robert G. 6. Rebirth of Liberty, A, 10:3

Pithole, 3:38 Of Rights—Natural and Arbitrary, 3:80
Are Consumers Boobs? By H. Hazlitt, 6:16 Chamberlain, John
Average Citizen: Sex Male, An. By J. Raley, Reviewer's Notebook, A. See Book Review

10:32 section of this index

Chamberlin, William Henry
B Communism Is Not the Wave of the Future,
Barger, Melvin D. 6:3

Could A. T. & T. Run the Post Office? 10:22 Germany's Economic Miracle in Danger,

Let the People Own the Airwaves, 6:3 12:30

Principle of the Thing, The, 4:45 Idolizing Institutionalism, 7:28
Basis of Liberty. By D. Russell, 7:9 True Face of Free Germany, The, 2:36
Better Alternative, The. Quote by G. Cleve- Circumstances Hostile to Liberty. By C. Car-

land, 6:40 son, 7:11
“Boundless Field of Power, A.” By S. Petten- Cleveland, Grover

gill, 4:6 Better Alternative, The; quote, 6:40
Bradfield, Marceline Coleson, Edward P.

ESP, the Downfall of Communism, 5:53 Freedom, Productivity, and Progress, 7:54
Braiding the Lash. Quote by L. Stearns, 12:66 Let's Wreck the Gravy Train, 10:35
British Nationalized Health Service, The. By Collectivist Curvature of the Mind, A. By C.

G. Winder, 8:3 Carson, 8:28
Brown, Frances West Coming Slavery, The. Quote by H. Spencer,

Thoreau and the Modern American House- 3:26

wife, 8:44 Communism Is Not the Wave of the Future.
Buckle, Henry Thomas By W. Chamberlin, 5:8

Monopoly of the Worst Kind, A, 8:42 Competition and Choice. By D. Russell, 4:42
Bureaucratic Decisions. By P. Poirot, 10:46 Confucius
Burke, Edmund Great Learning, The; quote, 10:20

Fruits of State Intervention, The: quote, Conklin, Gordon

7:66 Modern Tea Party, A, 11:40
Cooley, Oscar W,
C Failure of the State Employment Service,
Can Opera Be Grand If Socialized? By L. The, 8:16

Cooley, Roger B.
On Responsibility, 11:41

Coolidge, Calvin
Public Spending; quote, 3:66

Could A. T. & T. Run the Post Office? By M.
Barger, 10:22

Read, 9:31
Carle, Erica
Education Without Taxation, 3:48
Carson, Clarence B.
Defamation of the American Tradition,
The, 11:13

59


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

60 THE FREEMAN December

D Freedom, Productivity, and Progress. By E.
Coleson, 7:54
Dangerous Centralization of Power, A. Quote Freedom To Decide. By J. Sparks, 10:38
by D. Eisenhower, 1:66 Freedom's Foundation. By C. Williams, 7:3
Defamation of the American Tradition, The. Friend Battles Friend. From editorial in
By C. Carson, 11:13 INGERSOLLetter, 9:52
Defining Freedom. By E. Opitz, 9:3 Fruits of State Intervention, The. Quote by
DeGraff, Herrell E. Burke, 7:66
Spiritual Strength of the American System,
The, 9:38 G
Democracy and Mob-Rule. Quote by Polybius,
11:27 : .
. ae . . Genesis of Extremism. By L. Read, 4:3
Dishonest Financing. By D. Rogers. 2:1 ter. Germany's Economic Miracle in Danger. By
hol .0 g By L. W. Chamberlin, 12:30
Do ot E Government by Credit Card. By M. Stans,
. sl A. 9:49
Me aa in Our Thinking about Rus- Great Learning, The. Quote by Confucius,
Rv 10:20
Donist horp o% Wadsworth Grove, Cecil V.
ndividualism: quote, 5:28 Short History of Inflation, A, 3:47

Don’t Give Till It Hurts—Someone Else. By Guaranteed Life, The. By M. Anderson, 10:16
S. Siciliano, 4:49 '

Dykes, E. W.
What Price Parking? 6:62 H
Halifax, Marquis of
E He Might Have Known; quote, 2:27
Harper, F. A,
Eating Is Essential. By J. Sparks, 2:9 Liberty and Progress; quote, 4:66
Education Without Taxation. By E. Carle, Hauge, Gabriel
3:48 Long View, The; quote, 9:66
Eisenhower, Dwight D. Hayek, F. A. . ]
Dangerous Centralization of Power, A; Moral Element in Free Enterprige, The,
quote, 1:66 7:44
Elite under Capitalism, The. By L. Mises, Hazlitt, Henry
1:3 Are Consumers Boobs? 6:16
Emeny, Cliff S. International Order, An, 1:30
Leadership and the Rule of Law, 12:41 “Planning” vs. the Free Market, 12:3
ESP, the Downfall of Communism. By M. Three Blessings in One: quote, 8:66
Bradfield, 65:53 Welfare Mess, The, 10:14

Everyone's Favorite Game. By J. Raley, 12:37 He Might Have Known. Quote by the Marquis
of Halifax, 2:27

Healthy Skepticism, A. By P. Poirot, 9:13

Hoff, Trygve J. B., editor of Farmand

F Telephonic Centralization, 1:66
Failure of the State Employment Service, The. How © Be Happy Forever. By S. Yankus,
By O. Cooley, 8:16 : : : . .
Faith in Freedom. By D. Wright, 2:43 Hoy av instedites Kept Their Integrity. By R.
Farmand rou
Telephoniec Centralization, 1:68
Fertig, Lawrence 1
Subsidies for Everyone—A New Way of
Life, 1:14 : I Like Butter. By J. Raley, 6:36
Fleming, Harold M. Idolizing Institutionalism. By W. Chamberlin,
Sharing the Gains, 2:28 7:28
Foundations of American Liberty, The. By Importance of the Premise. By L. Read, 1:22
C. Carson, 5:20 Individual Liberty in the Crucible of History,
Fox, Willard M, Ry C. Carson, 5:20, 6:42, 7:11, 8:28, 9:17,
Alliance for Progress Must Fall, The, 12:12 10:8

Freedom of Speech, Quote by J. Trenchard, Individualism, Quote by W. Donisthorpe, 5:28
10:66 Inflation. Quote by P. Webster, 5:66


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

1962 INDEX 61

INGERSOLLetter (editorial) Maynard, Ruth Shallcross

Friend Battles Friend, 9:52 Who Conserves Our Resources? 7:36
Interesting Question, An. By G. Pearson, 8:51 Means to Progress, A. Quote from Monthly
International Order, An. By H. Hazlitt, 1:30 Letter (First National City Bank), 8:26
Irresponsibles, The. By K. Sollitt, 8:16 Medicine and Citizen. By M. Marshall, 2:50

Meet Henry Lin. By D. Strickler, 4:12
Mental Gaps in Our Thinking about Russia.

J By L. Dobriansky, 5:13
i Mill, John Stuart
Jebb, Reginald , i
Weltare Statism in England, 1:12 Tyranny of Public Opinion, The; quote,
Jenkins, H. P, B. 10:13

Miracle at Stake, A. By L. Read, 11:57
Mises, Ludwig
Elite under Capitalism, The, 1:3

Decontamination of Profits, The, 7:27
Economics of Risen Expectations, The, 1:41
, Effortless Prosperity, 4:57

Modern Tea Party, A. By G. Conklin, 11:40
\ J. "eral Stimulant, 8:27
9 TRI from Unions, 10:21 Monopoly of the Worst Kind, A. By H. Buckle,
ttin= *»o Tount Movi , 9: 8:42
a Day of Reokoning orate 9:37 Monthly Letler (First National City Bank)
Painless Tax Requirements, 3:41 Means to Frogress, A; quote, 8:26
Price of Food, The, 6:29 Moppets and Money. By D. Westerholm, 8:52
Profit-Sharing Plans 2:31 Moral Element in Free Enterprise, The. By
Transfer-Payments Net, The, 11:9 ae Flayek, T:\4
Voluntary Giving, 12:25 orano, Jac
nary Living One Big Howiing Project, 5:50
Mulqueen, Robei't R
4 Our Choice, 6: LH
King of Long Ago, A. By L. Love, 7:34 N N
N
L
Leadership and the Rule of Law. By C. Nader, Ralph
Emeny, 12:41 How Winstedites Kept Ther Integrity,
Legal but Immoral. By D. Russell, 1:19 10:49 \
“Let It Cost What It May.” By F. Mahaffy, Nancy Hanks’ Boy. By R. O’Brien. 2:32
65:19 Nicholas Turkey News \
Let the Pcople Own the Airwaves. By M. ‘Wolf Story, A, 2:49
Barger, 6:3 No Special Favors. By M. Van Burer! 9:54
Let’s Wreck the Gravy Train. By E. Coleson,
10:35
Liberty and Progress. Quote by F. Harper, 0
4:66
Locke, John O’Brien, Robert Lincoln
On Law and Freedom; quote, 11:66 Nancy Hanks’ Boy, 2:32
Long View, The. Quote by G. Hauge, 9:66 Of Rights — Natural and Arbitrary. By C.
Lost Freedom—Illusion or Fact? By J. Sparks, Carson, 3:30
11:23 Old Regime, The. By 8. Pettengill, 9:7
Love, Lewis On Law and Freedom. Quote by J. Locke,
King of Long Ago, A, 7:34 11:66
Lunden, Walter A. } On Responsibility. By R. Cooley, 11:41
Twilight of Morality, The, 3:29 One Big Housing Project. By J. Morano, 5:50
One Man's Gain. By P. Poirot, 3:26
M One’s Own Business. Quote by W. Sumner,
8:59
McDaniel, J. G. Opitz, Edmund A.
Whose Bread I Eat—His Song 1 Sing, 3:14 American System and Majority Rule, The,
Mahaffy, Francis E. 11:28
“Let It Cost What It May,” 5:19 Defining Freedom, 9:3
Malik, Charles H. Planned Chaos and the New Idolatry, 3:16
Web of Materialism, The, 1:53 They Aren’t Like Us! 12:16
Marshall, Max S. Our Choice. By R. Mulqueen, 5:47

Medicine and Citizen, 2:60 Our Legacy. By E. Rossit, 2:45


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

62 THE FREEMAN December

P Rossit, Edward A.
Our Legacy, 2:46
Pearson, Glenn L. Rukeyser, Merryle Stanley
Interesting Question, An, 8:51 When Republics Decay, 1:32
To Help a Neighbor, 10:54 Russell, Dean
Pettengill, Samuel B. Basis of Liberty, 7:9 *
“Boundless Field of Power, A,” 4:6 Competition and Choice, 4:42
Old Regime, The, 9:7 Legal but Immoral, 1:19
Phillips, James R. Principles of Taxation, 11:10
Russia’s Strength in Science Is Her Weak- Socialism Is Not the Answer, 5:10
ness, 4:18 Tariffs Kill Jobs, 2:16
Pithole, By R. Anderson, 3:38 United We Fall, 3:42
Planned Chaos and the New Idolatry, By E. Russia's Strength in Science Is Her Weakness.
Opitz, 3:16 By J. Phillips, 4:18

“Planning” vs. the Free Market. By H.
Hazlitt, 12:3
Pocket-Sized Patriots. By D. Waesterholm, 5

12:26 .
i Schuettinger, Robert

Poirot, Paul L. Add . .
Bureaucratic Decisions, 10:46 geroeauevide and the Bland Leviathan, 1:42
Healthy Skepticism, A, 9:13 To Rebuild the Ethical Foundation, 4:32

One Man's Gain, 3:26 : : : :
Social Security Program, The, 11:45 Sharing the Gains. By H. Fleming, 2:28

‘1s Shenoy, Sudha R.
Subsidies Work! 1:17 2! .
Two Views of Mankind, 6:41 Statism and the Free Market, 5:44

Why Capital Wants Out, 2:3 Short, History of Inflation, A. By C. Grove,

Polybius Siciliano, Samuel A.

D cy a b- : , 11: X .
Presto n. How and Mob-Rule; quote, 11:27 Dont Give Till It Hurts—Someone Else,
Taxpayers’ Money, 7:62 a. : :
Principle of the Thing, The. By M. Barger, Soctal Security Program, The. By P. Poirot,

4:45 A
Principles of Taxation. By D. Russell, 11:10 Socialism Is Not the Answer. By D. Russell,

Production Unlimited. By J. Sparks, 3:3 5:10

A RN : . Sollitt, Kenneth W.
Public Spending. Quote by C. Coolidge, 3:66 Irresponsibles, The, 8:16

Sparks, John C.

R Eating Is Essential, 2:9
Freedom To Decide, 10:38
Raley, Jess Lost Freedom—Illusion or Fact? 11:23
Average Citizen: Sex Male, An, 10:32 Production Unlimited, 3:3
Everyone's Favorite Game, 12:87 Untenable Mid-Point, The, 4:26
I Like Butter, 6:36 Wool Over Our Eyes, The, 6:18
What You Can Lose, 8:23 Spencer, Herbert
Read, Leonard E, Coming Slavery, The: quote, 3:26
Academic Freedom, 6:28 Supporters of Schemes; quote, 3:37
Can Opera Be Grand If Socialized? 9:31 Spiritual Strength of the American System,
Genesis of Extremism, 4:3 The. By H. DeGraff, 9:38
Importance of the Premise, 1:22 Sprague, W. E,
Miracle at Stake, A, 11:57 What Is “Freedom”? 1:38
Violence as a Way of Life, 2:18 Standard, A. Quote attributed to G. Washing-
Why Is Paternalism Wrong? 6:30 ton, 6:66
Rebirth of Liberty, A. By C. Carson, 10:3 Stans, Maurice H.
Regulation of American Business. By J. Government by Credit Card, 9:49
Swearingen, 6:22 Statism and the Free Market. By S. Shenoy,
Reinach, Anthony M. 5:44
Role of the Securities Market, The, 4:51 Stearns, Lewis
Road to Collectivism, The, By C. Carson, 9:17 Braiding the Lash; quote, 12:66
Rogers, Donald 1. Strickler, David S.
Dishonest Financing, 2:7 Meet Henry Lin, 4:12
Role of the Sccurities Market, The. By A. Subsidies for Everyone—A New Way of Life.

Reinach, 4:61 By L. Fertig, 1:14


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

1962 INDEX 63

Subsidies Work! By P. Poirot, 1:17
Success for All. From The Wall Street Journal,
4:65
Sumner, William Graham
One's Own Business; quote, 8:59
Supporters of Schemes. Quote by H. Spencer,
3:37
Swearingen, John E.
Regulation of American Business, 6:22

T

“Take One Flat of Tomato Plants—." By D.
Westerholm, 11:3

Tariffs Kill Jobs. By D. Russell, 2:15

Taxpayers’ Money. By H. Preston, 7:62

Telenhoniec Centralization. From Farmand,
1:56

They Aren't Like Us! By E. Opitz, 12:16

Thoreau and the Modern American Housewife.
By F. Brown, 8:44

Three Blessings in One. Quote by H. Hazlitt,
8:66

Times Bulletin
Who Fixes Milk Prices, Anyway? 3:56

To Help a Neighbor. By G. Pearson, 10:54

To Rebuild the Ethical Foundation. By H.
Sennholz, 4:32

Tocqueville and the Bland Leviathan. By R.
Schuettinger, 1:42

Trenchard, John
Freedom of Speech; quote, 10:66

True Face of Free Germany, The. By W.
Chamberlin, 2:36

Twilight of Morality, The. By W. Lunden,
3:29

Two Views of Mankind. By P. Poirot, 6:41

Tyranny of Public Opinion, The. Quote by J.
Mill, 10:13

u

Undermining the Foundations, By C. Carson,
6:42

United We Fall. By D. Russell, 3:42

Untenable Mid-Point, The. By J. Sparks, 4:26

Vv

Van Buren, Martin
No Special Favors, 9:54
Violence as a Way of Life. By L. Read, 2:18

w

Walk-Aways, The. By W. Wyman, 5:40
Wall Street Journal, The

Success for All, 4:55
Washington, George

Standard, A; quote attributed to, 6:66
Web of Materialism, The. By C. Malik, 1:53

Webster, Pelatiah
Inflation; quote, 5:66
Welfare Mess, The. By H, Hazlitt, 10:14
Welfare Statism in England. By R. Jebb, 1:12
Westerholm, D. M.
Do-It-Yourself Brainwashing, 7:22
Moppets and Money, 8:52
Pocket-Sized Patriots, 12:26
“Take One Flat of Tomato Plants—,” 11:3
What Is “Freedom”? By W. Sprague, 1:38
What Price Parking? By E. Dykes, 6:52
What You Can Lose. By J. Raley, 8:23
When Republics Decay. By M. Rukeyser, 1:32
Who Conserves Our Resources? By R. May-
nard, 7:36
Who Fixes Milk Prices, Anyway? From Times
Bulletin, 3:56
Whose Bread I Eat-—His Song I Sing. By J.
McDaniel, 3:14
Why Capital Wants Out. By P. Poirot, 2:8
Why Is Paternalism Wrong? By L. Read,
5:30
Williams, Carlton
Freedom's Foundation, 7:3
Winder, George
British Nationalized Health Service, The,
8:3
Wolf Story, A. From Nicholas Turkey News,
2:49
Wool Over Our Eyes, The. By J. Sparks, 6:18
Wright, David McCord
Faith in Freedom, 2:43
Wyman, William H,
Walk-Aways, The, 5:40

Y

Yankus, Stanley
How To Be Happy Forever, 4:34

BOOK REVIEWS

Adams Papers, The., Vols. I-IV, Edited by L.
Butterfield and staff. Reviewed by R. Thorn-
ton, 6:63
African Genesis. By R., Ardrey. Reviewed by
E. Opitz, 9:60
American Automobile Manufacturers: The
First Forty Years. By J. Rae. Reviewed by
J. Chamberlain, 2:58
Biochemical Individuality. By R. Williams.
Reviewed by J. Doenges, 7:62
Buy Now—Pay Later. By H. Black. Reviewed
by R. Thornton, 4:63
City in History, The. By L. Mumford. Re-
viewed by J. Chamberlain, 1:58


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64 INDEX December

Committee and Its Critics, The. By W. Man in the Middle, The. By N. Shefferman.

Buckley. Reviewed by W. Chamberlin, 5:61 Reviewed by W. Peterson, 2:61
Creativity and Its Cultivation. Edited by H. Money and Man. By E. Groseclose. Reviewed
Anderson. Reviewed by S. Miles, Jr., 8:61 by P. Greaves, Jr., 9:68
Day of the Mugwump, The. By L. Peterson. New Approach to Industrial Economics, A. By
Reviewed by J. Chamberlain, 1:60 J. Lincoln. Reviewed by N. Clark, 4:62
Death and Life of Great American Citics, The. Out of Step—The Autobiography of an In-
By J. Jacobs. Reviewed by J. Chamberlain, dividualist. By F. Chodorov. Reviewed by
1:68 R. Thornton, 10:62
Economic Education in the Schools. Issued by ~~ Revolt of the Conservatives: A History of the
National Task Force on Economic Educa- American Liberty League, 1934-1940, The.
tion. Reviewed by J. Chamberlain, 6:59 By G. Wolfskill. Reviewed by J. Cham-
Essays on Liberty, Vol. 1X. Published by berlain, 7:69
Foundation for Economic Education. Re- Revolt on the Campus. By M. Evans. Reviewed
viewed by J. Chamberlain, 12:61 by J. Tietz, 2:64
Financing Medical Care: An Appraisal of Rich Nations and the Poor Nations, The. By
Foreign Programs, By H, Schoeck. Reviewed B. Ward. Reviewed by J. Chamberlain, 9:56
by J. Chamberlain, 8:60 Rothschilds: A Family Portrait, The. By F.
Freedom and the Law. By B. Leoni. Reviewed Morton. Reviewed by J. Chamberlain, 5:58
by W. Peterson, 1:62 Schools Weighed in the Balance, Staff Study
Handbook for Independent School Opcration, for the Association for Christian Schools.
A. Edited by W. Johnson. Reviewed by F, Reviewed by R. Rushdoony, 6:62
Keith, 1:64 Selected Letters of Albert Jay Nock. By F.
Industry Comes of Age: Business, Labor, and Nock. Reviewed by J. Chamberlain, 11:59
Public Policy, 1860-1897, By E. Kirkland. Suffer, Little Children. By M. Rafferty. Re-
Reviewed by J. Chamberlain, 4:58 viewed by A. Brustat, 7:63
Inheritors, The. By J. Tebbel. Reviewed by J. Ultimate Foundation of Economic Science,
Chamberlain, 5:58 The. By L. Mises. Reviewed by P. Greaves,
Keynesian System, The. By D. Wright. Re- Jr., 11:63
viewed by J. Chamberlain, 10:69 Understanding Profits. By C. Robinson. Re-
Letters of H. L. Mencken. Selected and an- viewed by J. Chamberlain, 8:67
notated by G. Forgue. Reviewed by R. Vanderbilts and Their Fortuneca, The. By E.
Thornton, 3:63 Hoyt. Reviewed by J. Chamberlain, 5:58
Man, Economy, and State. By M. Rothbard. Who Is Ayn Rand? By N. Branden. Reviewed
Reviewed by H. Hazlitt, 12:54 by F. Knight, 7:64

THE FREEMAN on Microfilm

An agreement has been entered with University Microfilms to make
available to libraries and others who may be interested current as
well as back issues of The Freeman since January 1956. Inquiries
should be directed to University Microfilms, 313 N. First Street,
Ann Arbor, Michigan.


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

Pi Yanning Jor Freedom

By LUDWIG VON MISES

| 13 essays by one of the world’s greatest econo-
¥ mists. 192p. 2nd ed. 1962 $2

Recently two immigrant Turks washed rugs for a house-
holder. They said they were happy in the U.S. because the
standard of living was much higher. They gave as the reason
for that the “existence of unions in this country’; “that,” they
said, “was the sole explanation for prosperity in this country.”
These men, however, are deluded!

If unions had anything appreciably to do with the rise of
the standard of living, then the prosperity of the Chinese and
the Indians can be solved simply by organizing unions over
there. Put that way, of course, nobody believes that unions
cause prosperity. Unions do not create prosperity; they live

off prosperity!

All the essays in this book are classics. Open it at random, and on
practically any page basic ideas are succinctly stated. For example, in
the tenth essay Mises wrote (pp. 152-3):

Public opinion believes that the improvement in the conditions of the
wage-earners is an achievement of the unions and of various legislative
measures. It gives to unionism and to legislation credit for the rise in
wage rates, the shortening of hours of work, the disappearance of child
labor and many other changes. The prevalence of this belief made union-
ism popular and is responsible for the trend in labor legislation: of the
last two decades. As people think that they owe to unionism their high
standard of living, they condone violence, coercion, and intimidation on
the part of unionized labor and are indifferent to the curtailment of
personal freedom inherént in the union-shop and closed-shop clauses.

Bohm-Bawerk CAPITAL AND INTEREST 3-Vol. set $25; 3-in-1 Vol. $15
I History and Critique of Interest Theories, 512p.; II Positive Theory
of Capital, 480p; III Further Essays on Capital and Interest, 256p.

Shorter Classics of Eugen von Bohm-Bawerk 392p. 1962 $7.50 (Five Essays)

Order from Dept. C, LIBERTARIAN PRESS, South Holland, Illinois, U.S.A.


===== PAGE 68 =====