The Assault on Free Choice; R. Ream

An assault on the peaceful exer cise of free choice has been the con sequence of most government proRoger Ream is Director of seminars of The Foundll tlon for Economic Education. grams. Whether advocated by conservatives, present-day liberals, or doctrinaire Marxists, all govern ment activity rests on the power to coerce. It removes decision-making power from the individual and vests it in the hands of the state. This is an awesome power, best left in the hands of the many, acting voluntar ily, than concentrated· in the hands of those few who would compel obe dience. The greatest assault on free choice has taken place in the economic sphere, especially in our roles as consumer, worker, and business man. This is due to the subtle and roundabout manner in which the as sault has taken place. Those quick to defend the concept of free choice in the area of civil liberty often fail to recognize that the concept ex153 154 THE FREEMAN March tends to economic liberty as well.

Free choice is free choice, whether it involves the exercise of religion, the press, or speech, or whether it in volves the expenditure of money or the investment of capital. Unfortu nately, most businessmen are as guilty of the failure to recognize this as are the self-proclaimed protectors of civil liberties. EconomicLibertyat Stake When making the case against government regulation, our argu ments should not rest solely on cost/ benefit analysis or economic effi ciency. Rather, the question comes down ultimately to whether individ uals-reporters, ministers, artists, consumers, workers, or business men-are entitled to exercise peace fully their freedom of choice. We must recognize that freedom of choice is not exclusively an issue involving civil liberty-the concept pertains to economic liberty as well. The assault on free choice is easily recognized when it involves civil lib erty or where laws specifically pro hibit certain activities. For in stance, laws which prohibit church attendance, require the use of mo torcycle helmets or safety belts, out law gambling or ban the sale of lae trile and other drugs clearly limit the exercise of free choice by indi viduals. That such laws restrict the peaceful exercise of free choice is difficult to deny. However, government regulations aimed at protect ing or regulating consumers, work ers, and businessmen likewise restrict free choice, but do so in a manner difficult to diagnose. Per haps if as much emphasis were placed on the case for free choice in the economic sphere as is expressed on behalf of civil liberty, business men would have greater success de feating harmful restrictions of their freedom. Furthermore, it. is just as important to acknowledge that all restrictions on businessmen ulti mately curtail the free choice of con sumers. As Ludwig von Mises has written, ((The market economy capitalism-is a social system of consumers' supremacy." In a free market,consumers, by buying or abstaining from buying, are the pri mary influence on a profit-seeking businessman. Restricting free choice inhibits the businessman's ability to serve consumers.

The assault on free choice in eco nomic affairs has been possible pri marily because of an incomplete concept of freedom and an ignorance of the true nature of government. A clear definition of freedom reveals the coercive nature of government activity. Freedom is the absence of coercion-force or the threat of force-in peaceful activities. Free choice, therefore, is the absence of coercion in the peaceful exercise of choice. With a proper understanding of freedom and the nature of govern1981 THE ASSAULT ON FREE CHOICE 155 ment it is possible to examine recent government programs, recognize the presence of coercion, and cons,e quently understand the danger which threatens the survival of the free dom-of-choice principle. Protectionism One of the most recent exampl4es of the assault on free choice is the demand for protection against the influx of foreign automobiles. In an effort to protect the owners of Amer ican automobile companies and the jobs of American workers, various proposals have been made to limit or regulate the importation of for eign automobiles. Such a regulation would strike at the very heart of the free-choice principle. It would deny American consumers the freedom to choose what type of automobile they wish to drive. It is an anticon sumer, anti-free choice proposal. The American consumer would be as much of a victim of such a restric tion as the Japanese producer.

Similarly, all restrictions on frE~e trade curtail free choice. They take the decision-making power away from individuals and vest it in the hands of the state. The consumer is denied the freedom to choose how to spend his money. A more subtle assa ult on free choice occurs in the area of employ ment. Often under the guise of ((fair_ ness" or ((socialjustice," legislation is passed which substitutes compulsion for voluntary cooperation and free choice. But it is neither fair nor just to prohibit a worker from freely choosing whether to accept a specific wage offer. Our minimum wage.laws deny a worker the choice of selling his labor for less than a politically mandated wage rate. 'The govern ment intervenes and denies both the employer and the worker the free dom to choose mutually acceptable terms of their voluntary and peace ful relationship. Passing laws which arbitrarily set ((proper" pay levels increases conflict in society and shifts decision-making power away from willing buyers and sellers of ser vices over to politicians and special interest groups.

During the 1980 election cam paigns, candidates for national of fice were loudly proclaiming their undying commitment to social secu rity. To suggest that saving for re tirement be voluntary was consid ered one ofthe worst possible political blunders. This is an indication of how far we've wandered from the principles upon which this nation was founded. It has become a politi cal death wish to argue that citizens should be allowed free choice to de cide how much-if anything-they wish to save from their weekly pay check. Whatever happened to the individual's unalienable right to his life, liberty and property? Compul sion seems to have become a more cherished principle than free choice.

156 THE FREEMAN Another area where the role of free choice is often overlooked con cerns profits. In a free market,profit and loss derive from consumers ex ercising their free choice. The con sumer is sovereign. He decides whether to buy a Chrysler or a Toy ota; to purchase from Mobil, Exxon, or Shell, or to take the bus to work. Both profits and losses are primarily a result of the exercise of free choice by consumers. Ultimately, con sumers determine which producers will be rewarded and which will fail. Assaults on free choice take the form of coercion and conflict. The basis of relationships among indi viduals becomes compulsion rather than voluntary cooperation. When wage rates are determined by mutual agreement of employer and employee, jobs open up for all who want to work. Likewise, allow ing free choice to· determine profit and loss maximizes consumer satis faction. Allowing individuals free choice to save for their retirement is an effective means to security in old age. And allowing free choice in trade means increased harmony among nations and a higher standard ofliv ing for all people of the world.

Freedom of choice is a prerequi site of moral behavior. Herbert Spencer observed that ((the ultimate effect of shielding men from the ef fects of folly is to fill the world with fools." Abridging freedom of choice, even the freedom to make mistakes, will create a world of fools and fail ing enterprises. It is important that we respect the freedom-of-choice principle. Govern ments, whose proper role is to de fend this concept, have far too often been the violator of it. The idea that people will be better off if their free dom to choose is restricted is absurd. It leads to the tyranny of 1984 and Brave New World. As Aldous Hux ley warned in the latter book: ((Government by clubs and firing squads, by artificial famine, mass imprisonment and mass deporta tion, is not merely inhumane-it is demonstrably inefficient. A really totalitarian state would be one in which the all-powerful executive or political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude."

Upholding the freedom to ·choose is the alternative to such servitude. A two-pronged approach ·is neces sary. Businessmen must emphasize the role of free choice when defend ing their profits or opposing govern ment interventions. And those quick to proclaim the importance of free choice in the realm of civilliberty~ if they desire consistency-must de fend a businessman's exercise of free choice. Together these forces can guarantee an increase of freedom throughout society. i Joe Cobb Planning for an Emergency Letthe MarketWork! ON September 30,.1981, the EmE~r gency Petroleum Allocation Act will expire. Some members of Congress and the Department of Energy are beginning to think about extending the emergency provisions of the la'w, or drafting new standby plans. The National Petroleum Council's COIn mittee on U.S. emergency prepar edness has begun work on a study of the nation's ability to cope with a cutoff in oil imports between now and 1985. The war between Iraq and Iran makes this entire issue new's worthy, and critical.