April

134 The Ethics of Entitlement Hans F. Sennholz The transfer society leads to conflict and strife. 140 Morality Laws = Majority License Robert James Bidinotto Should the state be the guardian of moral values? 143 Women and the Market Sam Staley The market, not government, offers women the greatest opportunities. 147 Alternatives to Public Libraries J. Brian Phillips The history-and the future-of independent libraries. 151 Supply-Side Economics and Austrian Economics Bruce Bartlett Tracing the free-market roots of the supply-side movement. 155 Power and Peasantry: A Report from the Soviet Union Sven Rydenfelt The mismanagement of agriculture, from the Bolshevik Revolution to date. 159 A Reviewer's Notebook John Chamberlain A review of "The Harvest of Sorrow: Soviet Collectivization and the Terror Famine" by Robert Conquest. CONTENTS APRIL 1987 VOL. 37 NO.4 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 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 champion of private property, the free market, and limited govern ment. 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 invited in any amount. Subscriptions to The Freeman are available to any interested person in the United States for the asking. Single copies $1.00; 10 or more, 50 cents each. For foreign delivery, a do nation of $10.00 a year is required to cover direct mailing costs.

Copyright © 1987 by The Foundation for Eco nomic Education, Inc. Printed in U.S.A. Permis sion is granted to reprint any article in this issue, except "The Ethics of Entitlement" and "Power and Peasantry: A Report from the Soviet Union," 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 issues are available on microfilm from University Micro films, 300 North Zeeb Road, Ann Arbor, MI 48106. The Freeman considers unsolicited editorial sub missions, but they must be accompanied by a stamped, self-addressed envelope. Our author's guide is available on request. PERSPECTIVE Speak for Yourself! There are many reasons to support the free market systema fact reflected in the diver gent philosophies of the system's advocates.

For some, the rationale for capitalism is strictly utilitarian: it fulfills the economic wants of the greatest number of people. Others deny the possibility of any single standard of values for all people, arguing that a free, pluralistic society allows for diversity and competition among subjective values. Some hold that capi talism's individualist roots can be traced to Christianity, which recognizes the sacred im portance of the individual soul. Still others, from a secular standpoint, contend that capi talism is the only system fully compatible with human life, creativity, and self-realization. Most people think there is strength in numbers, and feel reassured when they can claim a host of supporters for their positions. Perhaps that is why some proponents of liberty yearn for a mass movement, an identifiable "we." They would have "us" confront the public with a united front-a coalition based on suspension of divisive premises, and fo cused solely on "our" common conclusions.

But such a unity has its dangers. All philo sophical roads do not necessarily lead to the same political destination. Differing premises often color the kinds of conclusions people will reach on a variety of issues. The philosophical disputes among freedom's interpreters and ad vocates frequently have practical conse quences, and should not be evaded. Yet neither should they be feared. Funda mental debates help us clarify and strengthen our understanding. Just as importantly, debates will refine the emerging arguments for freedom and capitalism. What is crucial is to maintain open forums for these debates-forums (such as The Freeman) in which individuals may present their insights, contentions, and understanding for public consideration. Ideas are not spread by coalitions; rather, it is only after individuals advance their own visions of the truth that co alitions can arise around their fundamental po sitions.

Today there remains a variety of intellectual arguments for a free society. So let us not pre tend to ourselves, or to the public, that "'we" are part of some unified intellectual movement. Let us not hide behind the collective "we"; but rather, let us each accept full individual respon sibility for our own convictions. In short, when addressing the public, make it clear that you speak for yourself! -Robert James Bidinotto Freedom Around the World On his 70th birthday, in 1964, Henry Hazlitt spoke of the importance of continuing the struggle for freedom. In many ways, the situa tion then was discouraging. But Hazlitt admon ished his listeners, 4' Be of good heart; be of good spirit. If the battle is not yet won, it is not yet lost either." Twenty-three years have passed. Although "the battle" is still not "won," there is cause for cautious optimism. Groups all over the world are now promoting the freedom philosophy. Some date from be fore 1964-for instance, this Foundation, as well as organizations in Argentina, England, and Guatemala. But many more have sprung up since and are publishing books, conducting seminars, and establishing educational institu tions.

For instance, the Universidad Francisco Marroquin in Guatemala and the Escuela Supe rior de Economfa y Administraci6n de Em presas (ESEADE) in Argentina are dedicated to explaining free market principles and their ap plication to the real world. Some of the books of the noted 44 Austrian" economist, Ludwig von Mises, as well as those of his Nobel Prize winning student F. A. Hayek, once again are being published in the original German. Quite a few of them have been published in other lan guages, the latest being a Spanish translation of Mises' PLanning for Freedom. Some of the writings of Frederic Bastiat, who had been all but forgotten in his native France, are being re printed in French by a newly-formed institute in Paris. Other organizations to promote the freedom philosophy are operating in Australia, Austria, Belgium, Brazil, Canada, Denmark, PERSPECTIVE Germany, Iceland, Mexico, Netherlands, Norway, Panama, Portugal, South Africa, Spain, and Sweden.

As Mr. Hazlitt said, the battle may not as yet have been won, but it has also not been lost. -BBG A Look at the Supply Side Bruce Bartlett's first Freeman article ap peared in 1975. He went on to become one of the leading spokesmen for supply-side eco nomics. Because of the increasing importance of supply-side theory, and because of Mr. Bart lett's familiarity with FEE's free market, lim ited government stance, we have called on him to explain the supply-side position to Freeman readers. See his article, "Supply-Side Eco nomics and Austrian Economics" ')n page 151. -BJS Op-Ed Program Starts Second Year April marks the first anniversary of The Freeman's op-ed newspaper program, i which we send adaptations of Freeman articl\ ~ to a select group of newspapers for use on their edi toria1 or commentary pages. Thus far, columns have appeared in news papers in 23 states and the District of Co lumbia, including such major outlets as the Houston Chronicle, the Phoenix Gazette, the Chicago Tribune and Chicago Sun-Times, The Orange County Register, Long Island's Newsday, the Dayton Daily News, and the San Diego Union. Combined circulation for all newspapers who have used our columns is over 8 million.

These results are encouraging. They show that FEE, without compromising our message, can readily achieve publication in the main steam press. As we continue with this program, we would appreciate it if you would call our attention to any of our articles you may see. D 124 THEFREEMAN IDEASON LIBERTY Entrepreneurs and Their Gifts by Jane S. Shaw T he Terrapin. Station is a new restaurant "in the basement of an old hotel in Bozeman, Montana. At the end of a dingy hallway you suddenly come upon a place that's spiffy and charming, where the tables glitter, as the wine glasses-gaily filled with colorful napkins-reflect the light of kerosene lamps. What makes this place exciting and heart rending at the same time is that the proprietors are doing something outlandishly extravagant and probably foolhardy. They are providing a gO\lrmet seafood restaurant for the middle of southern Montana.sYou may not know much about Montana, but it's nearly a thousand miles from an ocean and hundreds of miles from almost anything else. Bozeman is a town of 25,000 people.