Book Reviews

Since the State is so incompetent and so oppressive in many ways, there should be a built-in audience for David Friedman's The Machin ery of Freedom: Guide to a Radical Capitalism (Arlington House, 165 Huguenot St., New Rochelle, N.Y. 10801, 240 pages, $10.00). This is an enlarged version of an earlier work by Mr. Friedman, and not all of its statistics have been brought up to date. Its information about the ex pansion of the libertarian move ment, however, is current, and the arguments presented by Mr. Fried man for his case mesh with the lively material that is now being presented month by month by a dozen or so new libertarian publica tions. We have reached a point where Mr. Friedman can call The Freeman ~~an old-line conservative libertarian magazine," which can he taken, not as a put-down, but as a tribute to a pioneer who is suddenly surrounded by a host of new settlers. Mr. Friedman, who happens to be the son of Milton Friedman, would presumably call himself a radical libertarian rather than a conserva tive. His ((radical capitalism" would bring practically every thing schools, roads, the police, firemen into the scope of free market opera685 686 THE FREEMAN November tions. A conservative libertarian (such as myself) would go along with him on the subject of schools. The conservative libertarian can follow Mr. Friedman absolutely on the de sirability of ending the government first-class mail monopoly. Mr.

Friedman's plans for higher education-((Adam Smith Univer sity"-include a provision to let students pay the professors direct ly. The success of the Berlitz schools in teaching languages would argue that the direct payment for a mar ketable pedagogic commodity is fea sible. As for free immigration I can only say that I follow Mr. Friedman in my failure to worry about Mexican wetbacks who come to California and Texas to take jobs which nobody else wants to do. My only objection to opening the old Ellis Island gates indiscriminately relates to the idea, now enshrined in New York law, that the welfare rolls must be open to every indigent on an immediate basis. Mr. Friedman would take care of this by denying automatic welfare to any immigrant for fifteen years. He would also exempt immigrants from minimum wage requirement or, even better, repeal the minimum wage outright. Courts and Police It is when Mr. Friedman suggests that our police, our courts and the law itself can be turned over to the marketplace that he begins to get on marshy ground. It is possible, as he says, for two contracting parties to provide for arbitration when they draw up contracts. The justice com ing from private arbitration can be swift by comparison with the lag gard proceedings of government sys tems. As for the police, the tremen dous growth of private security or ganizations is evidence that protec tion can be bought and sold. The Wackenhut Corporation, for exam ple, provides central station alarms, screens passengers in air ports, and patrols the Trans-Alaska Pipeline.

Mr. Friedman is entirely plausi ble in making a case for the exten sion of private arbitration and pri vate protection. But he is not at all clear on what might happen if a contracting party were to go on strike against the decision of a pri vate arbiter. He suggests that any one who might welsh on an arbitra tion agreement could be blacklisted by the business community. But who would have the power to enforce the blacklist? When, in the days of the so-called McCarthy terror, cer tain screen writers were blacklisted they simply changed their names and went on providing moving pic ture scripts for studios that were willing to pay for a good product no matter who originated it. The ((mar ket" cares nothing for blacklists. Mr. Friedman envisages a society 1978 RADICAL CAPITALISM 687 in which there might be many courts and even many legal systems. Everybody would be entitled to his own protection agency. The pairs of protection agencies involved in a case would agree in picking a court.

Ah, yes. But what if a murderer didn't like the court that had been chosen for him? Could he fire his protection agency at will? And what about appeals from a verdict? The whole concept of free market legal systems, competing in the same ter ritory, is too nebulous for my grasp. National Defense When it comes to national de fense, even Mr. Friedman boggles a bit. How, when nuclear submarines and intercontinental ballistic mis siles cost billions, could they be fi nanced by what would amount to charitable contributions? What if the contributions were insufficient to protect the whole country? Would New York, having contributed more per capita than Philadelphia or At lanta, be entitled to better protec tion? The idea of letting private in surance companies finance national defense with money from their cus tomers also runs into difficulties: some people might consider them selves to be insufficiently menaced to take out insurance. Mr. Friedman also rejects Ayn Rand's idea of financing national defense by hav ing the government charge for the use of its courts. As long as a monopoly court system exists, it would be coercive taxation for the government to collect rent from anybody who is compelled to use the courts. Mildred Adams has sug gested that voluntary taxation might pay for national defense. The citizen would pay his defense tax in return for getting the right to vote.

But this would make the citizen part of a government, and how could any good anarchist accept that? In the end, Mr. Friedman admits he has a baffiing problem on his hands. If the free market cannot provide enough anti-aircraft de fenses and cruise missiles, Mr. Friedman is prepared to make one exception to his anarcho-capitalist credo. ((In such a situation," he says, ttl would not try to abolish that last vestige of government. I do not like paying taxes, but I would rather pay them to Washington than to Moscow-the rates are lower." Anyway, he says, ttl said, near the beginning of this book, that I thought all government functions should be divided into two classes those we could do away with today and those we hope to be able to do away with tomorrow." This makes David Friedman the realistic son of his father-and brings him closer than he thinks to the ttold line con servative libertarians" who accept the limited government theory of Adam Smith and James Madison.' A LITERATURE OF FREEDOM Besides The Freeman and its articles, The Foundation for Economic Education publishes or otherwise stocks for resale a number of books of other publishers concerning the free market, private property, limited government concepts and the moral and spiritual principles underlying freedom. These titles and prices are listed in an annual catalogue-order form distributed with the November issue ofNotes from FEE. Additional copies of that catalogue are available on request.

Several readers have asked for more descriptive reviews of these books than the catalogue affords; hence, the following abstracts. This list by no means includes all the authors or books worth studying in the field, but it will suggest the various areas and ideas on liberty to be further explored. BALLVE, FAUSTINO Essentials of Economics This is a primer of economics for the intelligent layman by a great Spanish authority. It deals lucidly with the basic concepts of economics and puts economic thought into historical perspective. It is a positive presentation of the principles of economics. BASTIAT, FREDERIC Economic Harmonies It has been the great work of economics to discover the natural harmony that 688 results when men are free to pursue their interests in their own way and prevented from using force and fraud. By contrast, socialists find discord, dishar mony, and exploitation when men are free. Bastiat reaffirms and reasserts harmony in this his most extensive ex position of economics.

Economic Sophisms This is Bastiat's most delightful book. It is devoted almost entirely to exposing the fallacies of protectionism and as sociated policies. His method is the logiA LITERATURE OF FREEDOM 689 cal extension of their ideas to the point that their absurdities become apparent. Bastiat bemoaned the necessity of going deep, but his writings are so luminous that the reader can stand safely on the shore and survey the depths. The Law The law, it has been said, is nothing more than the will of tyrants. ·So it has been many times in history. But just laws depend upon a law which underlies the law passed by legislatures or de clared by rulers. It is a law which pro vides the framework of lIberty. Emanci pation from the doleful theories of the compulsive state awaits discerning read ers of this brief treatise. Selected Essays on Political Economy The discovery of economics by Bastiat conferred a great boon on the world. For through him a delightful way was pro vided for every literate person to dis cover economics. It was Bastiat's insight that all schemes of government inter vention are more than somewhat ridiculous. It was his gift to present them in such a framework that others could see them in the same light. His essays on political economy hold the state up to the bright glare of the light in such a way that none who have read it should ever again be fooledby the fraudulent claims of the benefits of the use of political power.

BOHM-BAWERK, EUGEN VON Capital and Interest Anyone interested in being upresent at the creation" of the modern structure of economics, even vicariously, will find it exciting to read Bohm-Bawerk's studies. He may have been moved to some extent by his desire to refute the socialists, but it was even more important to him to get economics on a solid foundation. His Iucid explanations may make it appear that the task was easy, but in this mas sive work, he was struggling manfully to nail the edifice of economics to a founda tion that would hold it in place. The Exploitation Theory of Socialism-Communism The Labor Theory of Value was the foundation of Karl Marx's theory of exploitation, as well as that of many other socialists. Bohm-Bawerk here sub jects the theory to careful analysis and exposes its fallacies. The impact of this demonstration is to cut the foundation from under Marxism.

Value and Price Marx claimed that the price goods bring is determined by the labor that goes into making them available. The Austrians developed a counter theory to that of Marx. Value was their crucial concept in this theory. In this extract from a larger ~ork, Bohm-Bawerk makes the seminal formulation of what he called uthe sub. jective theory of value." By way of this theory, the buyer in the market place assumes his important role in determin ing price. BROWN, SUSAN LOVE and others The Incredible Bread Machine Most history textbooks are filled with bias against private enterprise, and in favor of government intervention. A group of young people assembled mate rials that counter that bias. In clear and provocative language they have de scribed the doleful impact of government 690 THE FREEMAN November intervention in the economy. They have, by so doing, uttered an articulate cry for freedom. The young may have their eyes opened by reading it; older readers may find hope in the appearance of such thoughtful young writers.

CARSON, CLARENCE B. The American Tradition Is the libertarian position incompatible with conservatism? Somewhere, perhaps, but in the United States, NO! This becomes clear in this careful and illuminating work on the American tra dition. In the United States, a great tradition took shape that was protective of and in harmony with liberty. This book describes, too, how the tradition has been distorted and is being undermined. The Fateful Turn from Individualism to Collectivism Most histories ascribe the massive gov ernment intervention of the 20th cen tury to changing circumstances. In this pathbreaking work, Clarence Carson shows that it was changing ideas which really underlay the movement. The case for individual liberty is set in a philosophical framework freed from materialism and determinism. The Flight from Reality We live in a world of cause and effect. Predictable consequences follow from ac tions because there is an order in the universe that makes it so. Reformist in tellectuals have emerged in· our era who ignore this order, and this enables them to visualize a new order of their· own creation. The result is spreading disor der, with tyranny in the wings. Theirs is the flight from reality.

The Rebirth of Liberty Liberty has been all too often stillborn in the revolutions of our era. The promises of freedom were but deceitful allure from would-be tyrants. One revolution was different, however; it was the American Revolution. How the promise was turned into reality is the subject of this contem porary study of the great men and events of that revolt by Americans from English rule. Throttling the Railroads The railroads drew the American people into an economic union. Even before they had succeeded in doing that, however, governments began preying upon them, regulating, disrupting, and inhibiting their activities. This book tells the story of that regulation and its debilitating impact on a once great industry. CHAMBERLAIN, JOHN The Enterprising Americans Those who are used to seeing American business pilloried for its warts will be pleasantly surprised-and relieved-by this study. True, businessmen have faults, even as do the rest of us. But they deserve to have their achievements memorialized without ideological bias.

John Chamberlain has performed this service admirably and in accord with the canons of good scholarship. The Roots of Capitalism The connection .between economic thought and practice is a vital one. In similar manner, the precondition of pri vate property to the effective use of capi tal is essential. Chamberlain has woven these and other threads together to tell 1978 A LITERATURE OF FREEDOM 691 the modern story of freedom and produc tion. CURTISS, W. M. The Tariff Idea No notion has been more persistently held in our era than the one that obsta cles ought to be placed in the way of goods entering a country. Even today auto stickers proclaim ~~Every foreign car imported cost 10 jobs for Ameri cans". W. M. Curtiss has exposed this fallacy in this brief, easy-to-read and hard-to-put-down booklet. The case for freedom is clearly and forcefully made. DIETZE, GOTTFRIED In Defense of Property What is the role of private property? Is it theft, as Proudhon proclaimed? Is it sim ply a means by which the individual pursues his selfish interests? Professor Dietze presents a quite different view in this erudite study. Property is the linch pin of civilization. It is essential to the determination and maintenance of what is proper. When the protections of it are removed, the civilization disintegrates.

The Federalist: A Classic on Federalism and Free Government It is generally conceded that The Federalist was the greatest American contribution to political thought. It fol lows that a clear understanding of these papers and the thought of the men who wrote them is vital both to thinking about politics and to an understanding of the United States Constitution. Profes sor Dietze has provided invaluable aids to doing this in his seminal work on The Federalist. FRIEDMAN, MILTON Capitalism & Freedom There is an unavoidable nexus between government and economics. The art of governing is entangled with economy. It is at the junction of the two that Milton Friedman brings his searching analyti cal mind to bear in this book. He realizes that the hope for freedom lies in reducing the role of government and extending the freedom of the individual. He makes not only some statements of general principles but also some interesting con crete proposals.

GARRETT,GARET The People's Pottage Something happened to the character, kind, and quality of American govern ment in the 1930s. That the New Deal was the engine of the change none can doubt. Garet Garrett tells what hap pened and how it happened, clearly, vig orously, and with a horrified fervor. Above all, it happened in the kind of necessary order and under such a cloud cover of confusing l'anguage that it had to constitute a coup d'etat. GREAVES, BEnlNA B. Free Market Economics, 2 volumes: A Basic Reader and A Syllabus Economics has been described as the dismal science. Some students may even think of it as a dreary study with its endless charts, graphs, and statistics. But free market economics is not that way. It is a hopeful science. These selected readings and accompanying study guide make it as delightful as man thinking, discerning, and setting forth in the most attractive way his best ideas.

692 THE FREEMAN November GREAVES, PERCY L., JR. Mises Made Easier Professor Ludwig von Mises wrote within the framework of the great intel lectual debates of the past century. Also, in his greatest work, Human Action, he wrote with fine precision, choosing just the word that expressed his exact mean ing. For these reasons, a glossary of the most important concepts, and most dif ficult, is a great aid to those who would understand his writings. Percy Greaves has provided such a glossary written in familiar language. Understanding the Dollar Crisis The dollar is declining in value. There have been several official devaluations, and there is a continual day-to-day de cline in its value. Why is the dollar falling in value? What is the cause of it? How can the situation be changed? In a series of lucid lectures, Percy Greaves answered these questions in Argentina, and they are now available in book form.

HALL, VERNA M. The Christian History of the Constitution of the United States The Constitution of the United States was founded upon the conception of a Higher Law. The Higher Law concept is itself founded in the belief in the laws of God. Vema Hall has collected and ar ranged in a single volume the evidences of the Christian foundation of our Con stitution. HAMILTON, ALEXANDER and others The Federalist Serious students of government, and particularly American government, may well begin with these papers written by John Jay, Alexander Hamilton, and J ames Madison. It is the most brilliant justification and explanation of the Con stitution that has been made. The prin ciples of effective government and lib erty are set forth in this great work! HARPER, F. A. Why Wages Rise Do real wages depend upon the growth of labor unions? The pumping of money into the economy? Higher minimum wage laws? Increased unemployment benefit payments? In this study of the trend of real wages in the United States since 1860, Dr. Harper traces their rise to the saving and investment of produc tive capital in open competition in a free market.

HAYEK, FRIEDRICH A. Capitalism and the Historians (edited by Hayek) Did working conditions worsen with the coming of the industrial revolution? Did pre-industrial man lead a simple, unhur ried, and gracious life? Have our histo rians presented an accurate picture of the economic past? Or were they all too often presenting distortions to promote political programs? The authors included in this anthology present some startling charges and support their allegations with a convincing array of evidence. The Constitution of Liberty Every party claims to favor freedom in our day. Yet this cannot be so, as Hayek points out, because some of their policies and practices result in the loss of liberty. The time has arrived to get a fresh hold on the meaning and implications of lib erty. By his superb exposition, Hayek 1978 A LITERATURE OF FREEDOM 693 has drawn the domain of liberty so that those who will read him may survey it whole. More, he applies his theories to policies he would recommend.

The Road to Serfdom What are the effects of economic plan ning by government? Is there a real choice between liberty and security? What happens to the rule of law under socialism? What happens to morality under socialism? Hayek answered these and other related questions about social ism during World War II. What has hap pened since has further confirmed Hayek in his belief in the superiority of freedom and the correctness of his analysis. HAZlITI, HENRY The Conquest of Poverty What is poverty? How may it be reduced? What are or would be the effects of most proposed efforts? Of minimum wages? Of a guaranteed wage? Of a Negative In come Tax? Of forced employment? Of land redistribution? Mr. Hazlitt has taken up these and numerous other pro posals and shows how ineffective they are, or would be. This is a sure-handed analysis of what is wrong with the pro grams that are supposed to help the poor.

The Critics of Keynesian Economics (edited by Hazlitt) Much of the world is in the throes of an inflationary binge the like of which has never before been experienced on this scale. John Maynard Keynes provided a theoretical justification of this inflation in his General Theory, published in 1936. It is eye-opening then to read what many leading economists have had to say about the Keynesian theory. Economics in One Lesson Does the destruction of buildings and equipment make for prosperity? Can government provide more employment? Do farmers need cheaper credit? Do jobs need to be spread around? Do protective tariffs benefit everybody? What is the impact of a government decreed minimum wage? Henry Hazlitt asks these and dozens of other questions and provides the answers-clearly, simply, directly, and persuasively. The Failure of the "New Economics" Was John Maynard Keynes' General Theory internally consistent? Was his HPropensity to spend" theory even factu ally based? Were his formulas really supported by any proofs? Why were the obscure theories of Keynes so popular?

Henry Hazlitt has exposed the whole pretentious mess for what it is-a call for political action supported by a facade of economic obfuscations. The Foundations of Morality Utilitarian ethics has a modern, and gracious, spokesman in Henry Hazlitt. The spirit of conciliation runs through this his magnum opus. Those who dis agree in some measure with what is persuasively argued here will nonethe less benefit from reading such an able exposition of it. The Inflation Crisis, and How to Resolve It In this 1978 updating and expansion of What You Should Know About Inflation, Hazlitt lays bare the facts about the New Inflation and analyzes problems the media scarcely skim, if they notice them at all. He shows how to protect yourself from the worst ravages of inflation, and 694 THE FREEMAN November shows how simple it would be to turn the tide-if we can develop the political will to do it. What You Should Know About Infla tion What is Inflation? What causes it? What are the effects of inflation? Is a deflation desirable? Can government control an inflation? How can government be made responsible in its fiscal policies? Henry Hazlitt answers these momentous ques tions and answers them simply, directly, and with no unnecessary qualifications or complications.

HUTT, WILLIAM H. (edited by Svetozar Pejovich and David Klinga man) Individual Freedom: Selected Works of William H. Hutt Among the most tangled issues of this era are: state power and individual rights; how to restrain the state to free the individual; what to do about private groups (such as labor unions) who exer cise coercive power; and whether a free market works or not. William H. Hutt sheds light on these with his precise thinking and careful scholarship. JUNG, C. G. The Undiscovered Self A great psychiatrist speaks here out of a lifetime of experience to what is needed in the world today. There is one thing, he says, that can successfully stop collec tivization. There is something stronger than the mass. It is the individual,-the unique, different, and exceptional indi vidual. When the discovered self replaces the undiscovered self, such an individual emerges. KIRZNER, ISRAEL M.

Competition and Entrepreneurship The market is surely the key concept in economics. The tendency toward equilib rium is one of the concepts that is an offshoot of market theory. However, a good deal of mischief has resulted from a failure to grasp the entrepreneurial role and its contribution to competition. Pro fessor Kirzner brings careful analysis to broaden our understanding of what hap pens in the market. The Economic Point of View What is economics? Does it consist of a department of human affairs? Or does it deal with an aspect of human action? Can there be a science of economics? How must it begin and what must be excluded from it? These are the basic questions which Kirzner examines in his fundamental study of the emergence of economics. KOOIMAN, HELEN Walter Knott: Keeper of the Flame According to a famous historical treatise, the frontier ended in 1890. The frontier was understood to be a symbol of oppor tunity in America. If Walter Knott en countered this notion, he certainly did not believe it. The story of his life is a refutation of any such notion. His life is a testimonial, too, to the importance of freedom.

LOVE,ROBERT How to Start Your Own School A school which follows the guidelines of the freedom philosophy is an exciting undertaking. It treats parents and stu dents as customers, education as a com1978 A LITERATURE OF FREEDOM 695 modity, the headmaster as a business man, and the teacher as a producer. Wichita Collegiate School has followed these guidelines, Robert Love maintains. The results are well worth examining. MACKAY, CHARLES Extraordinary Popular Delusions and the Madness of Crowds Those who are enamored of the supposed wisdom and sagacity of the people might profit from reading this book. Any who suppose that the number who believe or participate in something tells us any thing of its validity will find a healthy corrective. Doing what everyone does loses its attraction in the perspective of this marvelous history of mass delusions, whether the delusion was John Law's inflationary scheme, or witchcraft, or in fatuation with thieves, or what not.

MANION, CLARENCE The Key to Peace Those who think that the American way can somehow be evoked· by a vague and general term such as HDemocracy" should be especially interested in this booklet. With great economy, Clarence Manion covers the key ideas in the De claration of Independence and describes the basic institutions and practices. It reawakens pride in America and respect for the heritage. MILL, JOHN STUART On Liberty Is individual liberty of value only to the individual? Can liberty be endangered by majority rule? What is the purpose of life? What is the connection between this and liberty? Where should the power of society end and the liberty of the individual begin? These are the questions which Mill asks and to which he provides illuminating answers ·in these essays. MISES, LUDWIG VON The AntiCapitalistic Mentality Why do so many intellectuals hate capi talism? Why is it possible to get the approval of so many people for measures to restrain and penalize businessmen? A gifted scholar brings his vast learning and intuition to bear on the subject. He even explains the popularity of the de tective story from this angle. American readers will find this study particularly illuminating.

Bureaucracy Bureaucracy is neither good nor bad in itself. It is an appropriate technique for the conducting of administrative agen cies such as the police department. How ever, when bureaucracy enters the field of economic activities, the result is disre gard for the interests of consumers and disastrous rigidity and stagnation of the economy. A Critique of Interventionism The economic principles that Mises ex pounded in these six essays during the 1920s have endured the test of time. The names and places have changed, but the same tired statist notions prevail. Mises' incisive criticisms are as pertinent for Americans today as they were for the Germans of the Weimar Republic. Human Action Al though Mises wrote many books, this one is his magnum opus, the distilla tion of all his thought and learning. Although it is a broadly philosophical work and deals incisively with many 696 THE FREEMAN November branches of knowledge, all this is brought to bear on its object, economics.

It is an indispensable work for those who would master the study of man acting economically. Notes and Recollections Written in 1940, this is the story of the European economist who valiantly de fended European civilization against the ltSocialists of the Chair" until that civili zation had vanished in the darkness of World War II. This was the prelude to his second life of writing and teaching in the United States from 1940 until his death in 1973. Omnipotent Government: The Rise of the Total State and Total War Whence the penchant for total war in the twentieth century? How is this related to economic theory and practice? What was the demonic urge behind the rise of the Nazis to power? In essence, what did Nazis and Communists have in common? In this work, Mises brought his master ful powers to bear on the phenomenon of the total state. On the Manipulation of Money and Credit Translated by Bettina Bien Greaves and edited by Percy L. Greaves, Jr., are these earlier writings of Mises concerning political attempts to stabilize the pur chasing power of money and eliminate the undesirable consequences of the ~~trade cycle." Also included is a bibliog raphy of the works of Mises on money, credit and banking.

Planned Chaos The destruction of liberty in America as elsewhere has been accomplished both by private violence and by the near ir resistible force of the modern state. This ~~easy, bloodless and non-violent" transi tion to socialism is the subject ofPlanned Chaos. Professor Mises tells why the popularity of this policy is not a safe test of its soundness, why it fails in its avowed purposes, and what it does to nations which pursue it. Planning for Freedom Mises was one of the major theoreticians in the enduring principles of economics. These theories he was quick to apply to various of the controversies of his time such as ~~excess" profits, inflation, cen tral planning, unemployment, and so forth. Mises took sides courageously and argued dispassionately and well. Socialism Is economic calculation possible under socialism? What does socialism do to society? How do capitalist countries prop up and enable socialist countries to.sur vive? What is the crucial difference be tween interventionism and socialism? In this work, Mises used his great analyti cal powers to dissect the various aspects of socialism, to subject the ideas to the test of reality, and to expose their fal lacies.

Theory and History Whence came Marxism? What is the intellectual framework of socialism? How dia European thought come to re duce so much of reality to history? This is a wide-ranging philosophical work on the great issues of our age. Follow a great mind as it wrestles through delu sions to truth. The Theory of Money and Credit What people know, or think they know, 1978 A LITERATURE OF FREEDOM 697 about money and credit isn't necessarily so. For example, can government decree what is to be money in a society? Mises demonstrates decisively that this is not what governments do. In his careful scrutiny of every aspect of money and credit he brings new insight and preci sion to the handling of the subject. MISES, MARGIT VON My Years with Ludwig von Mises Ludwig von Mises was very much the formal man in public. To know his writings and hear his lectures was not to know him personally. This gives especial value to these glimpses be hind the scenes by the one who knew the greatest economist of the twentieth century best, his wife, Margit von Mises.

MOREELL, BEN The Admiral's Log Ben Moreell towered above most twen tieth century Americans. Not because of his height-though he was above the average-not because of his ac complishments, though they were outstanding-prominent engineer, Ad miral in the Navy, leading industrialist, writer, speaker, and statesman-but be cause of his courage, his integrity, and the high principles for which he stood. The best way to get to know him is through his' speeches, some of the most important of which are included in these selections. NOCK, ALBERT JAY Cogitations from Albert Jay Nock (Robert M. Thornton, editor) There is a specific medication to purge the system of the disease of statism. Its name is Albert Jay Nock. True, the medicine is addictive if taken in large doses but the addict is only much freer of the thrall of statist cant. This booklet serves only to introduce Nock, but every thing has to begin somewhere.

NORTH, GARY An Introduction to Christian Eco nomics Is there a ttChristian" economics? Indeed, is there an economics that does not have its foundations in Christianity? Do economic laws have ultimate sanctions? Dr. North has tackled these questions head-on and come up with revealing an swers. Indeed, the answers are a part of Christian Revelation rightly inter preted, he insists. Christians will want to know what is said here; others need to know. OPITZ, EDMUND A. Religion and Capitalism: Allies, Not Enemies Does Christian Socialism make sense? What are the ultimate foundations of freedom? What is the ultimate source of values and ends? Where does economics fit within the framework of philosophy? Is theism simply a convenient premise? An outstanding clergyman brings 'care ful analysis and concern to bear on these enduring questions which are particu larly important now. READ, LEONARD E.

Accent on the Right There are ways of looking at things that make it nearly impossible to decide any thing. Leonard Read invites us to ask some questions that can be answered, to 698 THE FREEMAN November focus our attention in such a way that we can draw conclusions. He shows us how to work our way out of the darkness by following glimmers of light. That is the meaning of accent on the right. Anything That's Peaceful If Leonard Read simply announced that he favored anything that was peaceful, what man of good will could disagree with him? But he does not leave it there. He goes on to name and demonstrate that a great many things we are doing do not make for peace. He shows that the peacemakers are greatly outnumbered by the aggressors. The core of his philos ophy is set forth in this book. Awake for Freedom's Sake Leonard Read's mission has been to stand in awe at the wonders about him-wonders both natural and man made-and to open our eyes to their marvelous character. He has preferred the journey to the destination, curiosity to the knowledge, the imagination to the static condition, and freedom to security.

It amazes him that so many should serve him in the market, unbeknownst to them, and he pauses to acknowledge what they do. Those who read this lyrical book may wish to join him in a chorus. Castles in the Air What is the secret to productivity? How may man's lot be bettered? Capital ac cumulation is not the answer. Tools are not the answer. These are valuable ad juncts in the effort to improve our mate rial well-being. But there is a way to improve our moral, spiritual, and mate rial well-being. First, there must be cas tles in the air. But for these to lead to anything, certain conditions must be present. Leonard Read sets them forth in this book. Comes the Dawn To humbly recognize and daily count our blessings is a vital first step toward that faith in freedom which will allow it to burst forth and overcome the darkness of socialism. Only then may we hope to bequeath to our children the foundations· of liberty we inherited.

The Coming Aristocracy Society must be shaped and influenced by aristocrats. Not hereditary aristo crats. Not aristocrats who lord it over other people. But aristocrats who are superior to others, who will be examples of what they teach, who will be followed because they so obviously know better. Leonard Read has some thoughts on how such aristocrats may emerge. Deeper Than You Think How do you measure growth? What is the effect of machines on our lives? What is the origin of the numerous ~~Problems" we hear so much about today? The an swers, Leonard Read says, lie deeper than you think. They can be found only by getting things· into a proper perspec tive. He demonstrates how it can be done with a number of telling examples. Elements of Libertarian Leadership A leader of mass men is one thing; a leader of free men is another. First it is necessary to know the difference. Then it is necessary to go to work changing and improving the one person who is avail able for the effort. Leonard Read ex plains why and how this is to be done.

The Free Market and Its Enemy Who are the enemies of the· free market?

1978 A LITERATURE OF FREEDOM 699 Is it the state? Is it the government? Is it ignorance? Is it thinkers? Leonard Read here sets forth an answer that is start ling in its simplicity, yet covers the field of all the particular enemies. There is much else in this brief book, but the character of the enemies is the central point. Government-An Ideal Concept Some vital questions for those concerned with liberty. Is government necessary? Is government an evil? Is taxation a proper use of government power? What about conscription? What are the improper and illicit uses of political power? Leonard Read employs his basic-premises and practical understanding to come forth with answers. Having My Way If there are macro problems in the world, Leonard Read thinks, they are probably reducible to micro problems. More specif ically, the great problems are really problems with individual dimensions. They are of this order: How can I im prove myself? What should my attitude be? How can I become the sort of person that other people would want to be with and consult? The answers to these and other such questions turn out to be won drously in accord with the freedom phi losophy.

Instead of Violence Violence, Leonard Read suggests, is the way to destruction. It is the easy way just as it is easier to destroy a structure than to build one-with the hard results. It is the way to inhibit creative activity and to foreclose opportunities. There is another way. Here is his rhapsody in tribute to that way. Let Freedom Reign Every man wants to be free himself, although he may not be so enthusiastic about the responsibilities entailed. But freedom for others-that is another mat ter. It is all too easy to imagine how this would threaten us. One of Leonard Read's great insights is how potentially beneficial to all of us is the freedom of others to create. This book focuses upon that insight and unfolds it in a variety of ways. The piece de resistance is ttThe Miracle of a Meal." But each essay con tains its own special tribute to freedom. Liberty: Legacy of Truth In contemplation of his 80th birthday, Leonard Read counsels that one's ambi tion in every laudable endeavor should be nothing less than an ever-improving excellence. Out of perpetual inquiry, the wooing of truth, comes the understand ing and practice of the liberty on which our lives depend.

The Love of Liberty What is liberty? Why love it? How does love of self merge with the love and concern for others? Out of a lifetime of commitment to liberty, Leonard Read speaks with authority on the burning issue of our day. He grasps the concept of liberty at its center and unfolds its numerous aspects for those who will to see. Talking to Myself It is commonly believed that people who talk to themselves are at least slightly ttoff." On the contrary, Leonard Read holds that it may well be our most re warding undertaking. True, it is not necessary to talk aloud, but the inward dialogue is itself essential. It may be that 700 THE FREEMAN November we will be ready to communicate with others when we have talked it out with ourselves. The method that Read rec ommends is clearly set forth here. Then Truth Will Out The problem, Leonard Read says, is fun damentally moral and spiritual. Under standing is important, and economic un derstanding is essential. But where there is greatness there must be great individuals. When men of virtue emerge, they will be followed. The aim of this book is to awaken the dormant spiritual ity within us.

To Free or Freeze Leonard Read has the knack of putting into everyday words the conclusions of many great thinkers. In this book he does that for some basic economic ideas. Others may explore in intricate detail the framework of economics. For him it is enough to go from premise to conclu sion in as short a fashion as possible so that the connection is not lost. He pre sents some of the great economic and po litical issues of our day in such a way as to make a choice possible. Vision UWhat is man that thou art mindful of him?" Leonard Read tells us that he is a creature of limitless potentialities. How can those potentialities be realized? What will free them for our benefit and enjoyment? Well, first there must be vision. But to have vision, there must be hope. In this volume, Leonard Read has not so much supplied us with his vision as told us how we can have our own. Who's Listening?

It is a fact of life that when you learn a new word you begin to see and hear it often. Whereas, before, you cannot even recall having encountered it. You have become ready for that word. Read's Law of Readiness comes into play. You are listening. This is a book for those who are willing to be ready. ROCHE, GEORGE CHARLES III American Federalism What is the essence of the American system of government? Is it a centralized democracy? Maya majority rightfully do whatever it pleases? What roles do the states play in our system? In this suc cinct study, George Roche covers the past, the present, and offers some thoughts for the future of federalism. Education in America Is education, and more education, a good thing? Does everyone need the same amount of education? What sort of edu cation is wanted? George Roche answers these and related questions. He presents many of the current criticisms of educa tion and presents sound advice for get ting education headed toward the target.

Frederic Bastiat: A Man Alone Bastiat's ideas were in many ways time less. His critique of protectionism will be relevant so long as there are those who use government to secure for them or to protect their vested interests. Yet he lived at a particular time in history, at a time when most of the heterodox ideas which are still besetting us were formu lated. George Roche has provided the setting which helps to clarify and il luminate Bastiat's writings. Legacy of Freedom Freedom is not simply something that can be conceived and discussed. To know 1978 A LITERATURE OF FREEDOM 701 it is not just to know an idea, ideology or philosophy. It has a history, a background, and a tradition. It has taken shape within the warp and woof of societies. Dr. Roche has here evoked and described that great tradition. Power The extensive use of political power has two general impacts. One is the restric tion of individual liberty. The other is the disruption of society. George Roche explores both of these effects here. He also provides a synoptic history of ef forts to limit power.

ROTHBARD, MURRAY N. America's Great Depression What caused the depression that fol lowed upon the stock market crash in 1929? Did it signify the failure of the capitalistic system? Was it the result of under-consumption? What part did gov ernment intervention play in setting off the depression? Professor Rothbard brings the analytic tools of an economist and the descriptive powers of the histo rian to the task of solving these riddles. His conclusions are unusually valuable for understanding both the past and the present. The Essential von Mises Those who have never heard of the Aust rian School of economics will find here a stimulating introduction to it. Those who are well acquainted with it can see the whole movement in perspective. Rothbard brings the movement and the men-particularly the man, Ludwig von Mises-alive in this stirring account. Man, Economy, and State Perhaps the most distinctive contribution of the Austrian School has been to restore man to the economic equation, not, it should be noted, sentimentalized man but man acting, man thinking, man making choices among means to achieve his ends. Murray Rothbard has inte grated this insight into a statement of economic principles. The result is a dy namic view of economics which provides the guidelines for economic and political action.

What Has Government Done to Our Money? Money is supposed to be a most difficult subject. It may be, but none would ever guess it from reading Murray Rothbard on the subject. He explains the in tricacies of money in clear and simple language, easy to follow and fascinating. Nor does he leave any doubt that gov ernment has wrought havoc with our money. RUSSELL, DEAN Frederic Bastiat: Ideas and Influence Devotees of freedom who have not dis covered Bastiat have a treat in store. After reading his devastating critiques of various government interventions, it becomes important to know the man be hind the polemics and what he did about his ideas. Professor Russell provides a valuable guide to the man, his ideas, and his actions. SENNHOLZ, HANS F. Death & Taxes What are the individual and social ef fects of taxes on estates? Is it true that inheritance taxes are painless? What general impact on capital does the tax and methods of evading it have? Profes702 THE FREEMAN November sor Sennholz provides a well thought out manual for those who want light rather than emotional verbiage on the subject.

Gold is Money (edited by Sennholz) Economists who do not talk sense about money do not talk sense for very long. That is because economics has to do mainly with exchanges of goods, and money is the medium of exchange. The authors of the essays in this book talk sense about money. It is, therefore, an inval uable foundation for anyone trying to understand economics. Inflation, or Gold Standard? Much of the debate about money as sumes that there are all sorts of mone tary possibilities. Professor Sennholz maintains the contrary. The live choice is between inflation or a gold standard. Experience and theory support this con clusion. SENNHOLZ, MARY Faith and Freedom J. Howard Pew was a distinguished en trepreneur, Christian layman, and philanthropist. He brought a similar zeal to each of these. undertakings. His busi ness career was a tribute to free enter prise and his greatest concern, next to advancing the Christian religion, was the expansion and preservation of indi vidual liberty. The story of his life emerges in the words of Mary Sennholz and the account of his beliefs is in Mr.

Pew's own words. SMITH, ADAM The Wealth of Nations Before the publication of this work, there was no branch of knowledge deserving of the name of economics. True, there were some works published about how some people could get ahead at the expense of others. It was Smith's great achievement to perceive an order within which each man's efforts benefited all. Smith's economics is firmly grounded in self interest, and a basis is established for the general improvement of mankind. SOWELL, THOMAS Race and Economics Thomas Sowell has ploughed new ground in writing about race and eco nomics. Much moralizing has of course been done on the subject, but all too little careful analysis. The author of this en lightening book brings both a knowledge of economics and the history of races and ethnic groups in the United States to his discussion. Those who would replace sen timent and prejudice with learning need to consult and study this book.

SUMNER, WILLIAM GRAHAM What Social Classes Owe to Each Other What does one owe to another? What rights do the poor have? What duties especially fall on the rich? Do the indus trious and economic have obligations to the lazy and profligate? When are ills natural and when do they arise from bad laws? William Graham Sumner pon dered these questions deeply and an swered them lucidly and forcefully in a manner applicable to all times and peo ples. WEAVER, HENRY GRADY Mainspring of Human Progress For centuries men sought the philosopher's stone--a ke~ that would 1978 A LITERATURE OF FREEDOM 703 unlock the mysteries of the universe. It has never been found. But there. is a key to progress and prosperity. In his best selling book, Henry Grady Weaver de scribes the key in pithy language illumi nated with fascinating details from man's experience. WHITE, ANDREW DICKSON Fiat Money Inflation in France What is inflation? What causes it? What is its pattern of development? What are its inevitable consequences? Andrew Dickson White composed and published a work in 1876 which became a classic on the subject. Revolutionary France was the particular locale for the study, but inflation anywhere and everywhere is its subject.

WILLIAMS,·ROGER J. You are Extraordinary Many of the most striking benefits of science have come by focusing on univer sal cause and effect sequences. Hence, scientists often have a bias in favor of uniformities. This creates a distorted picture when applied to man, Roger Wil liams tells us. We are individuals, he says, unique, different, and even one of a kind. And he proceeds to present, in a readily understood manner, impressive evidence for it. Government intervention is repressive because of our individ uality, or made more so. @ HANDSOME BLUE LEATHERLEX FREEMAN BINDERS $3.00 Order from: THE FOUNDATION FOR ECONOMIC EDUCATION, INC. IRVINGTON-ON-HUDSON, NEW YORK 10533 by BETTINA BIEN GREAVES, of the senior staff at FEE A textbook in two Volumes, each 81/2" by 11" Here is a unique opportunity, at small investment, to get the concepts of the free market into the hands and minds of those who can best make use of them. When you've had a chance to study and use your set, you'll doubtless think of many friends with whom you'll want to share it-or provide with a copy of their own.

Order from: THE FOUNDATION FOR ECONOMIC EDUCATION, INC. Irvington-on-Hudson, New York 10533 ttle Freeman VOL. 28, NO. 12 • DECEMBER 1978 Glory Be! Leonard E. Read 707 True glory consists of the service of truth and freedom. The "Invisible Hand" or the Heavy Hand? John Montgomery 711 A timely reminder of the dangers we face if we allow controls to close the market. Are Successful Businessmen Just Lucky? Brian Summers 719 Not by pure chance, but by the foresight of businessmen, are consumers served efficiently. Government Spending Must Be Cut Hans F. Sennholz 721 Meaningful tax reform hinges on the moral strength to resist special privileges government may arrange. World in the Grip of an Idea 24. The Cold War: The Spread of Communism Clarence B. Carson 725 Communism is less a political theory than a set of claims and promises-justifications-for holding and exercising power. Native Pottery Only William L. Baker 739 A study of the harmful effects of "protectionism," as applied during the Civil War-or today.