March

THEFREE IDEASON LIBERTY 84 The Grapes of Opportunity HannahLapp Learningself-respect,purpose,and hope from familyand field. 88 Soviet Economic Reforms: An Inside Perspective Yuri N. Maltsev Observationsfrom a formerSeniorResearcherat the Academyof Sciences of the U.S.S.R. 93 Auto Insurance Chaos in California D. T. Armentano Governmentregulationof pricesand profitrates is hardlya step forward for consumers. 9S Friendly Societies: Voluntary Social Security - And More John Chodes How voluntaryself-helpassociationsprovideda "safetynet" for workingclassfamilies. 99 National Service: A Solution in Search of a Problem ThomasJ. DiLorenzo Do youngcitizenshavespecial"duties"that mustbe fulfilledthrough "nationalservice"? 104 Saying No to Federal Disaster Relief WilliamB. Irvine How disasterrelieftodaycan lead to additionaldisasterstomorrow. 106 Art, Censorship, and Markets StevenYates Gettinggovernmentout of the art business.

108 Beyond Eminent Domain Lee Ownby What happenswhen developersinitiatepubliccondemnationofprivateland for privatepurposes. 111 Playing Hard Ball EvelynPyburn Compellingtaxpayersto do more than root for their home team. 112 Academic Freedom at a Pub6c University John R. Lott,Jr. Somelessonsin practicalpolitics. 116 Book Reviews John ChamberlainreviewsGredeofMilwaukeeby CraigMiner.Other books: The GrandFailure:The BirthandDeathof Communismin the Twentieth Centuryby ZbigniewBrzezinskiand Choosinga College:A Guidefor Parents and Studentsby ThomasSowell. CONTENTS MARCH 1990 VOL. 40 NO.3 THEFREEMAN IDEAS ON LIBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 President of The Board: Bruce M. Evans Vice-President: Robert G. Anderson Senior Editors: Beth A. Hoffman Brian Summers Contributing Editors: Bettina Bien Greaves Edmund A. Opitz Paul L. Poirot Copy Editor: Deane M. Brasfield 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 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, secretary; Don L. Foote, 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. Additional single copies $1.00;10 or more, 50 cents each. For foreign delivery, a donation of $15.00a year is required to cover direct mailing costs. Copyright © 1990 by The Foundation for Eco nomic Education, Inc. Printed in the U.S.A. Permission is granted to reprint any article in this issue except "The Grapes of Opportunity," 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 1971 to date. Earlier volumes as well as current is sues are available on microfilm from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI48106. The Freeman considers unsolicited editorial submissions, but they must be accompanied by a stamped, self-addressed envelope. Our au thor's guide is available on request. FAX: (914) 591-8910 PERSPECTIVE Eastand West These are tumultuous times in Eastern Eu rope. While refugees are flooding across borders, the Western media is making much ado about freedom, capitalism, and democracy. What is be ing lost in the shuffle is that West differs from East only in degree and not in kind. Western gov ernments are also interventionist and they threat en to grow more so every year. Freedom, capitalism, and democracy are catchy words, but we must be careful with them.

Freedom and capitalism have never been fully at tained, so we can speak only of degree. At pre sent, we are better off than Eastern Europe, but the' trends are ominous. As a small example, the West German government is offering to subsidize refugee housing. Thus, West Germans will be "free" to pay for their neighbors' wellbeing. Democracy is surely the watchword of the 20th century. However, events around the world have demonstrated that democracy alone can guarantee neither prosperity nor stability. In fact, prosperity and stability seem to be the prerequi sites for a workable democracy. Prosperity and stability arise from the unre stricted, or the least restricted, exchange of goods, services, and ideas. As we watch the events of Eastern 'Europe unfold with great hope for the fu tun~, we must also remember to keep our own house in order. We must not be distracted. It is only our awareness and vigilance that stand be tween limited and unlimited government.

-DENNIS PEKIN San Diego, California Communismand Racism It is the Marxist-Leninists who often think like racists with their continued blather about the proletariat and the bourgeoisie and their conse quent refusal to confront the individual on his merit. This attitude has resulted in a sort of apartheid in the Soviet Union in which the nomenklatura (largely European, of course) has some of the privileges of a master race: special stores, a special currency, the right to travel, and the' use of country houses and restricted vacation resorts.

There is, after all, little difference in labeling a person a black and persecuting him and labeling him a kulak and persecuting him: In both in stances there operates a superstitious kind of de humanization. In the one case the human individ ual is sacrificed to some ghost called race. In the other he is sacrificed to an equally dubious specter styled class. It was no accident that when W. R .. Andrews founded the South African Com munist Party in 1921, he ended the party mani festo with the ringing words, "Workers of the world unite and keep South Africa white." -LEONARD E. BREWSTER, University of Zimbabwe The Corruptionof Socialism When India gained independence in 1947, its government promised to take care of the nation's people. The state would supply the needs of its citizens without any of them having to plan or take risks. It was all very alluring. In practice, however, the socialistic Indian gov ernment had to make millions of economic deci sions. Suddenly, politicians and bureaucrats in herited enormous powers which they had discretion to use or, more appropriately, misuse.

Corruption and nepotism started to spread. Soon, prices were being set for political favors. To get a government job, the figure was close to the annual salary of the position. Bribes to get permits and licenses were decided by competitive bidding. State chief ministers, in spite of the sup port of the party high command, had to buy votes from their legislators. To win elections and stay in power, politicians needed a lot of money. In one of the state capitals, a group of mer chants paid the chief minister to designate a busy road as a one-way street. Businessmen on the other side entered the bidding war, and the street's orientation was changed several times, leading to a lot of creative driving. The ability to collect and pass on bribes was re warded. Following orders-even if they were in conflict with the laws and values of society-was the best means for advancement. Honest people were viewed as obstacles, and were weeded out or silenced. The rest gave up their values.

Corrupt leaders are not the reason why socialPERSPECTIVE ism fails. They are the products of a socialisticsys tem. Without a fundamental rethinking of the re lationship between the individual and the state, India will continue to be a land of great corrup tion. -RAYASAM \Z PRASAD Jonesboro, Georgia Waron Dmgs The government declared "War on Drugs," but its citizens will have to wage it. How should we citizens fight this war? Let's get our priorities straight. We must cut off the tremendous wealth the drug lords are amassing from the artificially high street -prices of illegal drugs. First priority then is to abolish the anti-drug laws that have allowed these dealers to become so financially powerful. Once anti-drug laws are abolished, drug prices will fall to somewhere near the cost of produc tion, and drug revenues will plummet. The greatly reduced revenues of the drug lords won't completely solve the drug problem (re-· member, nothing will completely). But the entire illegal drug industry will be denied the extra funds it has been using for worldwide expansion.

We American taxpayers will get a double ben efit from abolishing anti-drug laws. No longer will we have to face the staggering costs the gov ernment tells us will be needed to wage its war on drugs. In addition, the crimes committed by ad dicts to support their habits would be substantial ly reduced. Abolishing anti-drug laws also will release our government from the hopeless task of trying to coordinate our drug policy with foreign countries. This would end the killing of Colombian officials for cooperating with U.S. policy. If we succeed in repealing our anti-drug laws, cut off underworld excess profits, and save tax payers the cost of massive enforcement pro grams, we will have taken an important first step. Then, perhaps, the remaining problem with indi vidual addicts can be dealt with by more tradi tional means and institutions such as education, medical treatment, and rehabilitation.

-RICHARD W. HOLDEN Avon, Connecticut 84 THEFREEMAN IDEASON LIBERTY The Grapes of Opportunity by Hannah Lapp ,'W e-e-e are go-o-oing down the A-arkansas River Bottom Laands!" chanted four young girls standingup behindthe cabofa '59pickuptruckon its way to an Arkansas hayfield.At ages 9 to 16, they werelaborersalready-field laborers,as was evidentby the dark shadesof their facesburned in the heat of southern summer.Their plain home made dresses, some patched or mended, were tossed about by rushing air as the truck rolled along.Skirtsand pigtailsfluttered,and the spirited childishvoiceswereallbut snatchedaway,but that gave even·more reason to sing out loud. Indeed, nowwasthe timeto sing,forin a few minutesmore the pickupwouldstop and dischargethe girlsin a hayfieldfullofheavybalesto load.Onceout ofthe wind, they'd feel the hot glare of sun in cloudless skies and 100 degree temperatures, which, com binedwiththe strenuouswork,wouldtemporarily mute them.