Chapter 75 of 130 · The Freeman 1967 by Foundation for Economic Education
Is it Practical? J.C. Sparks?
price changes, and other aspects of competition. Such great faith in government's ability to administer charities, services, and controls would sug gest a long string of successes. At least, that's how most businesses gain a clientele. One satisfied cus tomer is the advertisement to the next. When a businessman wants a new office building, he seeks an architect of demonstrated skill in the design of similar structures. Professional football managers try to fill their rosters with experi enced players who show promise of greater success. An entertainer discovers that each round of ap plause is the steppingstone toward more popularity and demand. The successful consulting firm grows on its record for solving perplex ing problems. There is no finer recommenda tion than prior success - except 459 460 THE FREEMAN August where government is concerned. That's a different .story, as the record clearly reveals.
Compounding the Problem In the area of "charity," it has compiled a miserable showing of waste and graft. Recipients, who need above all else to regain self responsibility and self-reliance, are rewarded and encouraged instead to remain dependent. Unwedded motherhood becomes a livelihood. Unemployed persons choose. to re main jobless because of the com pensation. Educators and parents relinquish their responsibilities toward their children in exchange for state and Federal aid. The something-for-nothing years of the social security program are over. Henceforth, workers would do far better to buy insurance pri vately - if they had the choice. From medicare may be expected costly and inadequate service, wrapped in .red. tape and inacces sible when needed. The government's record for rendering economic service also· is deplorable. The monopolized postal service has been unimaginative and inefficient .. in contrast with other forms of communication.
Operating· costs rise year after year. Yet, in. many respects, the quality of service has declined. Part of the rapid cost increase is paid directly by "captive" customers, the nation's postal users, through higher postal rates. The remainder is "out of sight" in the government's accounting records, adding to the taxpayer's burden. Another economic service by a combination of municipal, county, state, and Federal governments is the network of highways across the nation. And to come across one of the completed stretches of the new interstate highways is a trav eler's delight. Have we an excep tion here - government successful at something other than policing? Before passing judgment, consider the alarming increase in the high way death toll. The super high ways have seen· super collisions and super holiday casualty re cords as well as super traffic jams. The word is out in Los Angeles and other cities: Avoid the free ways when large numbers of mo torists are likely to be using them.
The government has made quite a fuss about the safety of private ly manufactured automobiles. Imagine the. furor over traffic con gestion and highway fatalities if the roads were privately owned and operated! But hardly anyone ever thinks about that possibility. If we did, we might dream of the convenience and safety of a high way system under competitive pri vate enterprise rather than a gov ernmental monopoly. Government also has monopo1967 IS IT PRACTICAL 1 461 lized the business of money and credit, with a sorry record of booms and panics and depression and endless inflation. But where is the "practical" man with an alternative monetary system? When Government Plays a Handicapper's Role Another governmental role ac.. cepted in blind faith by the practi cal man is that of the handicap per, arbitrarily adjusting the vol untary agreements that have been reached in the market place. In 1966, Florida orange growers had a bountiful harvest, a surplus situ ation from which the U. S. De partment of Agriculture hastened to rescue them. But the price sup port program, based on use of orange juice in the school lunch program, afforded little help. Fi nally, the processors wisely cut out of the government program with a sales campaign to sell or ange juice at lower prices. Early results indicate success ; consump tion is running 20 percent heavier than in the previous year .. Juice processors and consumers, in this instance, have found a way around the government's good intentions.
May it serve as a lesson to all who place their. faith in the "practi cality" of government relief! This poses a provocativeques tion. Why is it that when a man of proven ability in private under .. takings is ordained with govern .. mental power, he so often becomes a·hobble to progress? Why thee dif ferencebetween the success he was and the failure he becomes? There is a difference - of this there can be little doubt - but what is that difference? Call the difference self-reliance. Call it self responsibility. CaU it incentive to achieve a greater reward. Call it a fear of not succeeding. Call it a burning desire to serve.·customers better than does a competitor. Call it any or· all of these. A business man places his savings and per sonal effort on the line, betting he will succeed. He must rely upon himself; success or failure is his personal responsibility. If he does not attract enough customers, he will not obtain a satisfactory in come and may even lose his sav ings. He risks all this on his ability to serve others and achieve in r~turn the financial and psy chological rewards of profit and satisfaction. The private owner ship spur is twofold and very real - fear of failure, and pleasure of success.
Now, put this successful busi nessman in government office, and he will have to operate without those incentives. There is no penalty involved for the lack of self-reliance unless gross neglect of duty or misconduct occurs. Government· seldom permits the 462 THE FREEMAN August existence of competition. Conse Q.uently, there is no need to per form well in order to attract more customers. Nor is there any com pelling reason to perform effi ciently. There is no competitive standard with which to compare results. With what private postal system can one compare the gov ernment's performance? There is always the taxpayer to cover defi cits. The profit incentive makes the difference. In the absence of that incentive, it seems most unlikely that a Henry Ford, Thomas Edi son, Charles Kettering, or David Sarnoff will ever emerge from the ranks of government employees. It is not a matter of selecting the "right" persons for government jobs. It is a matter of selecting the jobs that government is competent to perform. The organization de signed to defend people lacks the disciplines and incentives for suc cessful business operation. So let's be truly practical. Let the police force attend to its appropriate de fensive functions. And let economic services be performed in open com petition by responsible individuals with a proven capacity for such service. + Herbert Spencer MARVELLOUS are the conclusions men reach once they desert the simple principle that each man should be allowed to pursue the objects of life, restrained only by the limits which the similar pursuits of their objects by other men impose. A generation ago we heard loud assertions of "the right to labor," that is, the right to have labor provided; and there are still not a few who think the community bound to find work for each person. Compare this with the doctrine current in France at the time when the mon archical power culminated; namely, that "the right of working is a royal right which the prince can sell and the subjects mu'st buy."
This contrast is startling enough; but a contrast still more startling is being provided for us. We now see a resuscitation of the despotic doctrine, differing only by the substitution of trade unions for kings. For now that trade-unions are becoming univer sal, and each artisan has to pay prescribed monies to one or another of them, with the alternative of being a non-unionist to whom work is denied by force, it has come to this: that the right to labor is a trade-union right, which the trade-union can sell and the in dividual worker must buy!
The Freeman 1967
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