Your Freedom; R. Bearce

RobertBearce YOUR FREEDOM WHATABOUTIT? MORE than one thoughtful observer has advised us that "history repeats itself because no one listens the first time." This truth should challenge all those who truly value freedom. History is the tragic story of nations that have lost their liberty through indifference and complacency. The reasons for the destruction and loss of freedom are clear. Weare ca pable of understanding how freedom is threatened. Yet, despite the warnings of past experience, Amer ica and other relatively free nations ofthe world are committing the same mistakes which ultimately lead to economic collapse and political des potism. Will we continue to ignore the les sons that should be learned from history regarding the conflict be tween liberty and tyranny? Writing over a century ago, Fred eric Bastiat asked the French people Mr. Bearce is a·freeIance writer in Houston, Texas.

a similar question. With soundjudg ment and courage of conviction, he spoke out vigorously for freedom. Serving as. a member of the French Legislative Assembly, he placed lib erty in perspective-a timeless per spective we need if we are to remain free. "Actually," wrote Bastiat, "what is the political struggle that we wit ness? It is the instinctive struggle of all people toward liberty. And what is this liberty, whose very name makes the heart beat faster and shakes the world? Is it not the union of all liberties-liberty of con science, of education, of association, of the press, of travel, of labor, of trade? In short, is not liberty the freedom of every person to make full use of his faculties, so_longas he does not harm other persons while doing so?" Consider Bastiat's words. Con sider them carefully. He understood freedom and defended it at a time 387 388 THE FREEMAN July when France was plunging toward complete socialism- "legal" despo tism. In 1848, French politicians were propo~ing a multitude of idealistic plans for directing France's politi cal, social, and economic life. These blueprints for perfecting society were made in the name of "freedom,"

"helping the poor," ''justice,'' and so on. The socialists talked boldly about liberty and compassion, but their political/economic philosophy was nothing new. It was founded upon the same beliefs which had caused so much suffering in the past, so much oppression, misery, despo tism. Just as freedom was widely mis understood during Bastiat's day, there is widespread lack of under standing about freedom in the United States today. Many politicians, members of the mass media, those in the academic community, and just average citizens fail to comprehend the true meaning of freedom. Freedom is the right of each indi vidual to work toward the highest level of achievement consistent with his own effort and God-given abili ties. True freedom is both the capac ity and responsibility to exercise personal judgment. We have free choice, but we also have to abide by the consequences of our actions. This acceptance of personal accountabil ity brings a justified sense of dig nity, self-worth, and integrity to in dividuals. We learn by our mistakes and grow in our efforts to lead moral, productive lives. As we accept indi vidual accountability, we develop according to how we use our physi cal and mental abilities.

Four Basic Principles We have enjoyed the blessings of this freedom because we were at one time firmly committed to four basic principles of liberty. Individuals are free only when: (1) They accept responsibility for their own daily lives, (2) They are safe from criminal elements and internal strife, (3) They are secure against for eign domination, (4) They are safe from the abuse of domestic power and authority in the hands of their own government. A deep, honest faith in individual freedom inspired the Declaration of Independence and the Constitution. The Founding Fathers understood the four essentials of freedom, and they knew what was required to protect freedom. A free society must be founded upon just law and order. Government laws should be the just means of guarding each citizen's rights~"life, liberty, and the pur suit of happiness." Free people need the collective force of government authority, but that legal power must be clearly de fined and restricted. We accept a certain amount of governmental au thority in place of acting individu1983 YOUR FREEDOM-WHAT ABOUT IT? 389 ally. Instead of everyone being his own policeman and F.B.! agent, we give these roles to the government.

History, however, shows that gov ernments have an eventual ten dency to go beyond their legal au thority, violating instead of protecting the rights of law-abiding individuals. Such corruption and abuse of gov ernment power threatens freedom today. Our critical problem in America is a wayward political phi losophy-a philosophy of govern ment which rejects the principles of the Declaration of Independence and the Constitution. Whereas the Founding Fathers believed in lim ited government, we have allowed our federal government to grow, grow, grow. Most legislators con tinue to inform us solemnly· that government can solve our problems, "correct" the economy, provide jobs, and otherwise map out America's future. Deadly as gangrene, the federal government gradually spreads and eats at the life of freedom-regard less of the truly courageous efforts of· some in government to restrict government power and authority.

To the extent that the collective force of the federal government de stroys personal accountability and self-responsibility, we will lose our liberties. It is a matter of govern ment trying to do for us what we can and should do for ourselves. To the extent we trust lawmakers to be the mighty problem-solvers of our real or imagined social/economic ills, we will see the deterioration of free dom. The Powerto Tax May Be a Meansto Plunder With the power of taxation, the lawmaker can tackle what he be lieves to be the problems facing so ciety. By way of our tax dollars, Congress finances some of the proj ects which it thinks will be just, good, and right for society. Frederic Bas tiat would call their attention to one aspect of such government financ ing: . "Nothing can enter the public treasury for the benefit of one citi zen or one class unless other citizens and other classes have been forced to send it in. If every person draws from the treasury the amount that he has put in it, it is true that the law then plunders nobody. But this procedure does nothing for the per sons who have no money. It does not promote equality of income. The law can be an instrument of equaliza tion only as it takes from some per sons and gives to other persons.

When the law does this, it is an in strument of plunder." Bastiat's use of the word "plun der" may sound somewhat exagger ated or old-fashioned, but we ought to think about how our tax money is spent.

390 THE FREEMAN July How much of it goes to the gov ernment's legitimate responsibility of maintaining justice and providing for the national defense? On the other hand, what amount is used to fi nance domestic programs which benefit special· interest groups? How much is spent to obtain the votes of people demanding some "right" from the governmenta right to guar anteed income, right to welfare, right to a subsidy, right to guaranteed jobs, right to a college grant, right to a guaranteed profit, and the like? Those are false, nonexistent rights, and they can be fulfilled by 100 Senators and 435 Congressmen only through pIunder. "But how is this legal plunder to be identified?" Bastiat asked. "Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without commit ting a crime."

A crime would be committed if Congressman Joe stole Senator Sam's car. Both Joe and Sam, along with others in Congress, imitate such an offense when they use coercive leg islation to take from some people in order to give to others. Legal plun· der operates easily under the cloak of the "democratic process." Being a freely elected official, a Senator or Congressman assumes that he has the right to enact laws favoring par· ticular groups in society-even when this action deprives other citizens of their rightful earnings. Although individuals who truly understand the proper functions of government see how and why elected officials act the way they do, the truth about government must be made available to those who do not com prehend the meaning of freedom. We should be able to clearly explain the nature of government force and au· thority-legitimate government power. The Boundsof Lawful Defense "What, then, is law?" Bastiat asked, speaking of government force and authority. "It is the collective organization of the individual right to lawful defense. Each of us has a natural right-from God-to defend his person, his liberty, and his prop erty. These are the three basic re quirements of life, and the preser vation of anyone of them is completely dependent upon the pre servation of the other two. For what are our faculties but the extension of our individuality? And what is property but an extension of our fac ulties?"

Our faculties include our intel lects, talents, physical and mental abilities. Some of these are natural while others are acquired. They en able us to handle the responsibility of living. When millions of free. in1983 YOUR FREEDOM-WHAT ABOUT IT? 391 dividuals voluntarily use their fa culties to work and produce, we have economic freedoma capitalistic, free enterprise, free market system. Actually, free enterprise or capi talism is not a stale, dull "system." No self-appointed group of legisla tors or economic theorists designed it. Rather, free enterprise is the nat ural, vibrant collaboration of free individuals laboring together coop eratively, competitively, volunta rily. Economic freedom allows indi viduals to use their skills, wisdom, and energies to manage their own lives. Free enterprise depends upon per sonal freedom and accountability, private property, and a free market.

Economic freedom places the matter of living ·upon the shoulders of the individual. This is where it ought to be-not in the hands of government. Unless an individual can control and use his own possessions (private property and income) he cannot fully decide for himself how he will work, direct his own life, house and feed his family. Choice in the Market Place Working and associating with other free people, the individual finds himself in a free market. Here he has free choice. He can choose his own employment, rejecting the pay offered at other jobs if he so wishes. Between him and his employer there should be freedom to exchange a solid day's work for a fair wage. At the supermarket or appliance store, the individual again expresses freedom ofchoice. Free enterprise enables him not only to go to different stores but to buy from a wide assortment of products and services. He is not forced to purchase goods he does not like or use the services of businesses he distrusts.

The "he" and the "individual" in all of this voluntary action are not abstract human beings, but WE whoever we are and wherever we live, as long as we are willing to ac cept the responsibilities of freedom. If we are to have economic free dom, the free market must operate within a framework of just laws. Thus, government has the function of prohibiting violence, force, theft, and fraud. Laws should be adminis tered which protect private property and require individuals to live up to their freely made agreements. "Under such an administration," wrote Bastiat, "everyone would un derstand that he possessed all the privileges as well as all the respon sibilities of his existence. Noone would have any argument with gov ernment, provided that his person was respected, his labor was free, and the fruits of his labor were protected against all unjust attack." Free, private enterprise is the only way we can freely use our creative energies for, not only our own good, but the remainder of society. We (free 392 THE FREEMAN July individuals)-not economic legisla tion from Congress-are the basis for America's strength and stability.

This general prosperity can develop when there is efficient, industrious production of goods and services. Such performance is generated when individuals and businesses are ea ger to w:orkhard and honestly. There must be the incentive to do so. That incentive is found in compet ition and the profit motive. Compet ition encourages us to make the best use of our faculties. The just reward of profit goes to industries, busi nesses, employers, and employees as we freely combine our energies, cre ativity, and labor. Profits are made without having coerced the con sumer. They are made because enough of us freely decided to pur chase a particular good or pay for a particular service-not because the federal government "stimulated" the economy or tried to "protect" some industries from so-called "unfair competition. " Freedom Is Threatened Working upon the moral grounds of competition, individual freedom, and profits, free enterprise has brought past prosperity to the United States. Our progress can be traced back to a respect for the worth and dignity of the individual. Economic freedom, however, is under attack.

Invariably, we find ourselves and the preservation of freedom again facing the issue of government in tervention and plunder. Politicians and others simply will not allow our economic activities to be free and voluntary. They would deny us the right to go about our daily lives in a free market atmosphere-making an honest living for ourselves and our families. Realizing that there are some not-so-productive elements of society (individuals, businesses or whoever) who are willing to partici pate in plunder, politicians proceed to abuse government power and au thority. "Man," Bastiat said, "can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of prop erty. But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder. Now since man is naturally inclined to avoid pain and since labor is pain in itself-it follows that men will resort to plun der whenever plunder is easier than work. History shows this quite clearly."

Indeed it does, and through taxa tion, government regulations, spending power, grants, and the like, we still see plunder at work. Al though America still experiences many of the blessings of free enter prise, we are being subjected to greater doses of destructive plunder.

1983 YOUR FREEDOM-WHAT ABOUT IT? 393 As legislators and other groups continue to call upon the federal government to create more pro grams and to pass more "laws," we need to hear forcefully and clearly from more individuals like Bastiat: "It is not true that the function of law is to regulate our consciences, our ideas, our wills, our education, our opinions, our work, our trade, our talents, or our pleasures. The function of law is to protect the free exercise of these rights, and to pre vent any person from interfering with the free exercise of these same rights by any other person." That is the one basic fact free peo ple must understand and explain to others-other people who daily work for more government controls, laws, aid, intervention, and so on. How Government Grows Existing government bureaucra cies plod forward-regulating our lives, taxing our hard-earned in comes, and infringing upon personal freedom. Those who will never give up calling for more and more gov ernment will speak in honorable, compassionate terms. Their objec tives. will supposedly be achieved in a "free, responsive, caring, respon sible, democratic" manner. They are against "oppression, discrimination, and prejudice." They uphold the "rights and needs" of the "poor," the elderly, the "disadvantaged," the handicapped, the "needy," and so on.

"Social consciousness" and "the pub lic interest" weigh heavily upon their minds. To each problem they believe ex ists in every area of the United States, their automatic question is: "How can the federal government solve it?" Daily, we hear Senators and Con gressmen soberly, eagerly, and forcefully asking: "How can the fed eral government solve this prob lem?" Their concern appears honorable enough, but beneath it lies distrust. They distrust the individual. They distrust freedom. They have faith only in their own good intentions and the power of government. Other in dividuals, so they vainly think, are not capable of managing their own lives. Voluntary charity will not work. Individuals, they claim, ei ther cannot or will not freely help others who are truly in need of aid. Along with this distrust for the av erage citizen in Salt Lake City, Peo ria, Dayton, and Muskogee, there is a hint of self-righteousness. Fred eric Bastiat describes it aptly: "The organizers maintain that so ciety, when left undirected, rushes headlong to inevitable destruction because the instincts of the people are so perverse. The legislators claim to stop this suicidal course and to give it a saner direction. Appar ently, then the legislators and the organizers have received from 394 THE FREEMAN Heaven an intelligence and virtue that place them beyond and above mankind; if so, let them show their titles to this superiority.

"They would be the shepherds over us, their sheep. Certainly such an arrangement presupposes that they are naturally superior to the rest of us. And certainly we are fully justi fied in demanding from the legisla tors and organizers proof of this nat ural superiority." This presumed superiority Bas tiat was talking about over a cen tury ago is seen today by the confi dence in which elected government officials promote their legislation for social and economic planning. Simi lar programs have failed throughout history, and the same manipulation fails in socialized nations today. Ig noring past and present, spokesmen for more government power some how feel their own efforts at orga nizing society will be much superior. Organize, regulate, and coerce, they will-unless those who under stand freedom are willing to bear the responsibilities of that freedom. First, of course, we have the primary re sponsibility to comprehend the basic principles of liberty, free market economics, limited government, and so on. Having that understanding of and appreciation for freedom is the critical foundation we must have be fore we can actively labor for a sta ble' free, prosperous nation.

If we have the basic gras.p of freedom (always learning more and growing in the faith) we also make that faith in freedom a living reality in our daily lives-not drifting away to join the large numbers of those who unknowingly become a part of the "More, More, More Govern ment" crowd. Our labor for liberty remains the same. We must make our lives, our attitudes, and our actions consistent with "what we preach." Those who would destroy true freedom and jus tice-as well-intentioned as they may be in their beliefs-will never stop promoting more government spend ing, power, and authority. While they undermine freedom, we should be as tireless in our own efforts-efforts to preserve the freedom they are at tempting to take from us, efforts to restore the freedom we have already lost, and efforts to expand the bless ings of freedom. It's your freedom. What about it? All quotations by Bastiat are from The Law, written in 1850, trans lation by Dean Russell in 1950.

76 pages, paperback. Single copy $2.00 10 copies, each 1.00 100 copies, each .60 Available from: The Foundation for Economic Education, Inc. Irvington-on-Hudson,NY10533 Elgin Groseclose Prescription for Economic Health THAT radical reform is needed for an economic system that periodically produces booms and busts, inflation and deflation, is recognized by a growing number of students. The prescriptions for reform are numer ous and varied. Among the defects of the system, however, are several that continue to be ignored-in deed, are regarded not as defects but with reverence as healthful agents of progress. At the risk of being read out of the profession as eccentric or iconoclas tic, I list a few that have produced more confusion than progress, more chaos than order, and that need ex amination as to their utility. Dr. Elgin Groseclose (deceased April 4,1983) was a financial consultant in Washington, D.C. He was the author of Money and Man (1934, 4th edition 1976) and America's Money Machine (1966,1980). He served also as executive director of the Institute for Monetary Re search.