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

THE POLITICAL ECONOMY OF ECONOMIC FREEDOM.
BY ALAN PEACOCK. CHELTENHAM, U.K.: EDWARD ELGAR, 1997

n the decades following World War II, when the scope of government was

increasing dramatically, Alan Peacock was one of those rare British economists

who argued for less government. Because his ideas were outside the main-
stream, he often attempted to justify them, and this book is a collection of essays
and articles, almost all of them previously published, explaining his views on
economic freedom. Many books have been written arguing the merits of less
government, but this book has the advantage that in many places it draws on
Peacock’s own experiences as a policy advisor. Abstract ideas about the advan-
tages of economic freedom must be framed in a politically acceptable way if they
are to have any impact, and those interested in translating ideas into public policy
could benefit from the experiences Peacock describes in this book. The book's
strongest feature is the way that Peacock relates the ideas of economic freedom to
the development of public policy.

If Peacock had merely presented these ideas as his own, one could analyze
them solely on their merits, but Peacock also describes them as liberal, in the
British sense, and as libertarian, which will probably be more descriptive to
American readers. Thus, the reader is asked not only to consider Peacock’s ideas,
but also to accept them as being libertarian. Peacock notes that while libertarian
ideas are coming into fashion today, they were viewed as quite extreme when he
began writing in the 1940s and 1950s, and Peacock deserves credit for publicly
standing by his views. Itis easier to hold libertarian views today, when many people
believe government is too big, than it was in the decades immediately following
World War Il, when most of both the general public and the economics profession
believed that more government management of the economy was appropriate
public policy. Yet, by choosing to label his ideas liberal or libertarian, Peacock
invites disagreement from readers who hold a different view of libertarianism.

Peacock argues for a paternalistic state that looks out for the economic welfare
of its citizens rather than just protecting their rights. When discussing government
social insurance programs, Peacock notes that people could insure themselves
against calamities that might reduce their income-earning power, but, he contin-
ues,

if individuals cannot be relied upon voluntarily to take out such insurance this does not
make a case for some compulsory state scheme, but it does suggest some form of
government regulation which would make a minimum level of provision through
private sector insurance compulsory. (p. 64)

Despite his claim that liberalism “requires that individuals should accept the
necessity for choosing and for recognizing their responsibility for making choices”

The Quarterly Journal of Austrian Economics vol. 1, no. 4 (Winter 1998): 93-95
93


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

BOOK REVIEWS 95

in the public interest. From these chapters, one can conclude that Peacock’s
libertarian leanings come at least partly from his conviction that the private sector
allocates resources better than the public sector, although in other places Peacock
makes it clear that he believes freedom has intrinsic value, independent of the
other benefits it produces.

Peacock’s discussion of policy issues integrates the principles of economic
theory with the realities of the political structure, showing that political considera-
tions are always an important component of the degree to which the advice of
economic advisors will be incorporated into public policy. In many places, he
relates stories about his own personal involvement in the policy-making process,
drawing lessons from his experience. These insights from Peacock’s own experi-
ence are perhaps the book's biggest contribution. We can discuss the ideas of
economic freedom in the abstract, but translating them into public policy in a
modern government is another thing altogether. Those who want to become
directly involved in public policy-making can benefit from what Peacock has to say,
but his experience will also lend insight to academicians, who should take a more
realistic account of the actual policy-making process when analyzing policy issues.

RANDALL G. HOLCOMBE
Florida State University


===== PAGE 3 =====

IFSW - your link to

international social work !

IFSW - International Federation of Social Workers - links
professional social workers around the globe, representing
social work associations in 60 countries with more than
430,000 members. IFSW promotes social work as a
profession through international cooperation; supports
national associations in promoting social work in social
planning and formulation of social policies; facilitates
contacts between social workers globally; and establishes
relations with UN and other international organizations. Our
program for individual social workers, agencies,
corporations and others is called "Friends of IFSW ",
providing a link to international social work, by entitling
those who register to "The IFSW Newsletter " 3 times a year,
our publications free of charge, the special IFSW Friends
pin, a certificate of recognition,and information about and
discount registration at our international conferences.

The annual cost of being a Friend is $ 45.00, while Students
can be Friends for $ 25.00. Rates for organizations and Life
Friends on request. If you want to know more or become a
Friend, please mail or fax this to IFSW, P. O. B. 4649,
Sofienberg, N-0506 Oslo, Norway. Fax : (47) 22031114.

v YES, I want to be a Friend of IFSW. I am enclosing a
check of $ 45.00 / Please send me an invoice / I pay by
American Express / Diners / Mastercard / Visa (check one) :
Exp. date :

Card #

Signature

v YES, please send me more information about the IFSW
Friends program

Name :

Address :

City :

State : Zip Code :
Country :