August

THEFREE IDEAS ON LIBERTY 284 10 Leggoe Scrivo James L. Dati Meet Giuseppe Doti, a reader and writer who keenly appreciated the freedom in his adopted land. 288 Freedom and DemocracyAre Different John T. Wenders The value of keepingthe publicsector out of private economicactivity. 290 The Growth of Government in the United States RobertHiggs The growthin governmenthas meant the sacrificeof liberty. 296 The Last Wild Childrenof Capitalism William B. Irvine In defense of futures markets. 300 Patience and Property: Corporate vs. Union Management DwightR. Lee andRobertL. Sexton Private property ownershipis criticalto efficient,future-oriented business decisions. 303 A Tale of Two Estates Andrew E. Barniskis Thingsowned by everyone are cared for by no one. 305 MunicipalServices:Unfair Competitionfrom Local Governments Bill Tomlinson Fightinghometowncollectivism. 306 MisdirectedCompassion DouglasMataconis Government intervention often worsensthe lot of the poor.

308 The SocialSecurityTrust Fund: "Savings" vs. Saving RichardW Fulmer Producingmore than we consumeis the key to providingfor the future. 310 U.S.Trade DeficitsAren't a Problem RogerNils FolsomandRodolfo Alejo Gonzalez Voluntarymarket transactionsbenefit both trading parties. 316 Readers' Forum 317 Book Reviews John ChamberlainreviewsThe Questfor Communityby Robert Nisbet.Also reviewed:Discovery,Capitalism,and DistributiveJusticeby Israel M. Kirzner. CONTENTS AUGUST 1990 VOL. 40 NO.8 THEFREEMAN IDEAS ON LIBERTY PERSPECTIVE FAX: (914) 591-8910 Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 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. Copyright© 1990 by The Foundation for Economic Education, Inc. Printed in the U.S.A. Permission is granted to reprint any article inthis issue, provided appropriate credit is given and two copies of the reprinted material are sent to The Foundation.

Whether or not mail should cost more to deliver depends on whether there are cheaper or better ways to deliver it. That's not something to be set tled by talk because both sides can argue forever. The way to find out if the job can be done cheaper and better is to let other people try. We have already found out from experience that the United Parcel Service can deliver packages better than the post office. A number of private overnight delivery companies are thriving in com petition with the post office. In neither of these cases do we have to waste our time listening to rhetoric or looking at statistics to make a decision. Each of us can make his own decisions as to how we want to send packages or overnight mail. Unfortunately, when it comes to the basic mail services-the letters and postcards-we are for bidden by law from having a choice. Even when you buy your own mail box, the federal govern ment forbids anybody except the post office from putting anything in it.

It is only because the Postal Service is a legal monopoly that decisions about it have to be made through a process of political hot air instead of a process of competition in the marketplace. -THOMAS SOWELL writing in the March 16, 1990,HoustonChronicle SocialSecurity In contrast to nurtured common misconception, SocialSecurity is nota program of personally fund ed pensions. It is not a process of individuals accu mulating their own retirement accounts. Rather than a saving process of building retire ment funds, the operation is inevitably consume as-you-produce for the community as a whole and pay-as-you-go in financing retirement benefits. In deed, since Social Security tax payments now are much greater than benefits dispersed, it is a pay morethan-you-goscheme. Today's workers are not accumulating money which will be retured to them years later; instead, today's workers are pay ing taxes to finance benefits for today's retirees-and to finance other government spend ing, as well....

Is the PostOfficeEfficient? Bruce M. Evans Robert G. Anderson Beth A. Hoffman Brian Summers Bettina Bien Greaves Edmund A. Opitz Paul L. Poirot Deane M. BrasfieldCopy Editor: President of The Board: Vice-President: Senior Editors: Contributing Editors: Bound volumes of The Freeman are available from The Foundation for calendar years 1971 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 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. Addi tional single copies $1.00;10 or more, 50 cents each. For foreign delivery, a donation of $15.00a year is required to cover direct mail ing costs. 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 champi on 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: Thomas C. Stevens, chairman; Ridgway K. Foley, Jr., vice-chairman; Paul L. Poirot, sec retary; Don L. Foote, treasurer.

No bookkeeping "trust fund" accumulated to day willtake care of tomorrow's retirees. The com munity and its government will have to provide and pay for tomorrow's benefits out of tomorrow's production and income. -WILLIAM R. ALLEN The Midnight Economist Dmgs,Values,and Self-Control The popular notion of drug addiction to such hard drugs as heroin and cocaine says that those who take such drugs will inevitably increase their intake until they reach a point where the craving for the drug high and the fear of withdrawal causes them to lose control. The loss of control is evi denced by the willingness to sacrifice all-to the point of self-destruction-to ingest the drug. This popular belief in addiction is buttressed by animal research that allegedly shows that monkeys will press a lever to get more cocaine until they kill themselves. The monkeys cannot help themselves because the addictive power of cocaine is so great.

Critics dispute the "monkey model" of addic tion. Other research suggests that animals will not choose drugs when they have a choice and when studied in a natural environment. Furthermore, the view that addiction is the automatic result of a biological process is contradicted by millions of "controlled" users of such drugs as alcohol, mari juana, amphetamines, and even cocaine and hero in. The controlled users regulate their intake of drugs because their self-image, value system, and self-discipline keep them from descending to the "depths of addiction" as it is commonly perceived. The controlled users simplydecide to limit their in take of drugs. Thousands of American soldiers in Vietnam be came "addicted" to hard drugs, but only 14percent remained "addicted" upon their return to the United States. The 86 percent who quit simply de cided that they did not want to get involved in the American drug culture. Their value system and self-discipline helped them to "Say No."

Don't misunderstand me. I do not favor exper imentation with drugs. I do not use drugs, and I do not approve of or associate with those who use drugs. But the focus on the overpowering and addictive nature of drugs has led us to PERSPECTIVE ignore the issues of values and self-discipline. It seems to me that the worst thing we can do is tell those who are greatly tempted to continue the use of drugs that they willreach a point where they will lose control and can't help themselves. That message erodes their effort toward self-control. Those who study the psychology of control tell us that a belief in the ability to control is needed to ensure maximum effort toward self-control. The message that one has lost control may contribute to "learned helplessness" and greatly erode the ability to exercise self-control. -WILLIAM LEE WILBANKS Professor of Criminal Justice Florida International University Developinga MarketEconomy in Eastern Europe A market economy must be built from the mar ket up-from the very arena in which the day-to day decisions of buyers and sellers methodically and objectively allocate the available resources to the most efficient producers. To assume that a market economy can be dropped into place by the orders and edicts of central planning agencies is to make mockery of the term "free market."

A free market is built on the foundation of vol untary exchange between economic actors. There is nothing at all voluntary about government edicts. A government, especially a government still committed to socialist principles, cannot legis late a market economy into being. One might just as well claim that a few adjustments on a worn-out engine will fill the tank with gasoline. It's the gas that fuels the engine, not the other way around! Likewise, it's the commitment to free markets that dictates the principles of government that will be exhibited in any society. A free market can be based only on the founda tion of individual liberty, which includes the free dom to own property. Beliefin the abilityof govern ment to "create" free markets by legislative fiat belies a lingering faith in the efficiency of social ism-whatever form it may take. And if there is one lesson to be learned in Eastern Europe, it is that so cialisteconomies are unworthy of such a faith.

-JOHN S. VIEHWEG Mesa, Arizona 284 THEFREEMAN IDEASON LIBERTY 10 Leggo e Scrivo by James L. Doti G iuseppe Doti was a reader and writer. He had other jobs that paid money,but when asked what he did for a living,he would say, "10 leggoe scrivo." After emigratingto America, he found his abil ity to read and write a rare talent in the Chicago community known as Little Italy. Illiterate immi grantsneeded a sympatheticsoul-mateto read and write letters passing to and from the old country. His letters arranged marriages,kept waitingwives and lovers content and, in general, soothed the ravaged nervesand achinganxietiesof disconnect ed people. In reading and writingletters, Giuseppe grewto understand the verysoul of a person. His abilityin conveying a person's passions and petty preten sionswithdignityand spiritmade hima reader and writer of the first rank. Giuseppe was consciousof his high calling and devoted following, and he dressed the part.