September

Economic and moral arguments for total deregulation. 349 Lessons from Socialist Tanzania Sven Rydenfelt How socialism destroyed the Tanzanian economy. 352 Insolvency and Bankruptcy Law Dennis Bechara Bankruptcy law as a government intervention. 357 Readers' Forum 359 A Reviewer's Notebook John Chamberlain A review of "Forty Years Against the Tide: Congress and the Welfare State," by Senator Carl T. Curtis and Regis Courtemanche. CONTENTS SEPTEMBER 1986 VOL. 36 NO.9 THEFREEMAN IDEAS ON LIBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 President of the Board: Robert D. Love Vice-President of Operations: Robert G. Anderson Senior Editors: Beth A. Hoffman Brian Summers Editorial Adviser: Paul L. Poirot Book Review Editor: Edmund A. Opitz Contributing Editors: Howard Baetjer Jr. Bettina Bien Greaves Gregory F. Rehmke Joan Kennedy Taylor Production: Laurel A. Mascola The Freeman is the monthly publication of The Foundation for Economic Education, Inc., Irvington-on-Hudson, NY 10533 (914) 591-7230. FEE, founded in 1946 by Leonard E. Read, is a nonpolitical educational cham pion of private property, the free market, and limited government. FEE is classified as a 26 USC 501 (c) (3) tax-exempt organization.

Other officers of FEE's Board of Trustees are: Bruce M. Evans, chairman; Thomas C. Stevens, vice-chairman; Joseph E. Coberly, Jr., vice-president; Don L. Foote, secretary; Lovett C. Peters, treasurer. The costs of Foundation projects and services are met through donations. Donations are in vited in any amount. Subscriptions to The Freeman are available to any interested per son in the United States for the asking. Single copies $1.00; 10 or more, 50 cents each. For foreign delivery, a donation of $10.00 a year is required to cover direct mailing costs. Copyright © 1986 by The Foundation for Economic Education, Inc. Printed in U.S.A. Permission is granted to reprint any article in this issue, except "Pollution Control and Biblical Justice," provided appropriate credit is given and two copies of the reprinted material are sent to The Foundation. Bound volumes of The Freeman are available from the Foundation for calendar years 1969 to date. Earlier volumes as well as current is sues are available on microfilm from Univer sity Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106.

The Freeman considers unsolicited editorial submissions, but they must be accompanied by a stamped, self-addressed envelope. Our author's guide is available on request. PERSPECTIVE Spirit of Liberty Since the spectacular July 4th week end celebrating the 100th anniversary of the Statue of Liberty, America has been enjoying a -period of euphoria. With much flag waving we have rejoiced in the remarkable way people from all parts of the world have melded into a single nation. Race, color, or creed offer no serious barrier to becoming a suc cessful scientist, business owner, shop keeper, teacher, or entertainer. The spirit of liberty, as epitomized in the Statue, has been responsible for this record of achievement. That spirit of liberty offers opportunity to any who dare to try, to struggle, and to work. However, the spirit of liberty can be snuffed out by well-meant attempts to protect the "tired, the poor, the huddled masses."

Tax funds that finance "safety nets" can discourage the incentives of those who are less fortunate to improve their own situations. And the collection of taxes from those who must pay the costs hamper the efforts of those who could contribute the very most. The market economy is remarkably resilient. In spite of the many obstacles that have been placed in the path of en trepreneurs over the years, they con tinue to show energy and initiative. And so long as freedom of entry into various occupations and businesses is not seri 0usly restricted, so long as producers are not discouraged by high taxes and rigid regulations, newcomers will al ways be welcome for the contributions they can make. There is no limit to the number of new arrivals who can be ac commodated in such a free market econ omy. However, if people come here be cause of the "welfare state," because of government-financed ' 'safety nets,' , there is a limit to the number of people who can live within our borders. Pro duction and living standards would then decline and newcomers would find themselves in constant conflict with those who came here before.

Disillusionment with some of our so cialistic experiments has developed, and tentative attempts have been made to limit government, reduce taxes, deregu late, and privatize. If these attempts eventually do succeed, it will be a sign that perhaps the Statue of Liberty is not 100 years old, but 100 years young. Its torch will then continue to shine as a beacon of hope to persons throughout the world. It will tell them that here they can find, not security, but what is more important, liberty and freedom of op portunity. -BBG If Men Could Fly We tend to ask questions only about the unusual event. The everyday hap pening rarely excites our curiosity. We see a bird in flight and yawn. Were we to see a man flying unaided through the air we would immediately start an in vestigation. This poses a problem for the student of liberty. Our children, beneficiaries of the free market in a free society, take prosperity for granted. The laden shelves and burgeoning freezers in the local supermarket stimulate no ques tions. Bare shelves and empty freezers might.

Yet "bare shelves and empty freez ers" historically are the norm! The vast majority of men and women who have walked this planet have spent their ev ery waking hour in a struggle to keep destitution at bay. The puzzling excep tion which cries out for explanation is the plenty enjoyed by the beneficiaries of economic and personal liberty. If we teach our children the lessons of history, we may elicit the questions only free market economics can answer. -John K. Williams Visiting Scholar Op-Ed Update The Freeman's op-ed newspaper pro gram, in which we send Freeman arti cles to a select group of newspapers for use on their editorial or commentary pages, continues to expand. Sarah H. Lindsey's "Educational Freedom" (June Freeman) has appeared in The Au gusta Chronicle, The Anchorage Times, Fort Walton Beach Daily News, The Phoenix Gazette, and The Orange County Register. Peter S. Heinecke's "The Fallacy of Comparable Worth"

(June Freeman) has been published by the Gettysburg Times, Chicago Sun Times, and Long Island Newsday. James L. Payne's "It's Not Our Money" (June Freeman) has been used by the Chicago Tribune. And Dennis Bechara's "The Continuing Plight of Agriculture" (May Freeman) continues to be reprinted, most recently by the North Fort Myers Lee Constitution. If you see one of our articles, we would appreciate it if you would send us a clipping. Spanish Books from FEE For readers of Spanish-Hispanic newcomers to these shores and students of the language-it is difficult to obtain books which explain the free market, private property, limited government system. To fill this need, The Founda tion has stocked books from Spanish language publishers in Central America and Spain. Titles include The Law by Frederic Bastiat, The Incredible Bread Machine by Susan Love Brown and oth ers, Economics in One Lesson by Henry Hazlitt, Planning for Freedom, Liberal ism, Economic Policy, and Human Action by Ludwig von Mises, and The Essential von Mises by Murray Rothbard.

Write Bettina Bien Greaves for infor mation and a price list. PERSPECTIVE 324 The Selling of FreedoITI by Dennis L. Peterson E ntrepreneur and multimillionaire W. Clement Stone wrote, "Whatever your profession, you are selling some thing: ideas, concepts, goals, beliefs, values. While many persons think of selling only as of fering a product or service for profit, you begin to sell the day you were born and will continue to sell throughout your life." That statement is especially true in regard to the freedom philosophy. Although many people assume that this philosophy is passed on merely through tradition or in the formal, organized economics and government courses of certain schools, it is primarily transmitted by individ uals through a daily selling process. And this process goes on not simply in classrooms but throughout the nation with the countless inter actions of individuals during their everyday lives. We are constantly selling our ideas, goals, beliefs, and values.