June

207 A Subtle Seizure Daniel F. McInnis Restricting the use of property is governed by the Fifth Amendment. 210 Government Highways: Unsafe at Any Speed Richard Barbarick Government, rather than trying to improve cars, should privatize roads. 214 Saving Sick Children from State Science A. M. Rogers Government has no authority to prescribe medical treatment. 219 In Defenseof PropertyRights and Capitalism Tibor R. Machan The free economy requires and deserves an ethical as well as an economic defense. 226 Re-regulating Airlines Paul A. Cleveland Air travel is safer, cheaper, and more convenient than it was 15 years ago. Why.do some want to turn back the clock? 230 Rent Control and the Penultimate Solution Scott Gardner Legally enforced economic discrimination was used by the Nazis first. 234 Sexual Harassment: What Is It? Wendy McElroy Should insults be actionable? 238 Do No Harm Jane M. Orient Government threatens the art and science of medicine.

239 Book Reviews Doug Bandow reviews Drug Policy and the Decline of American Cities by Sam Staley. CONTENTS JUNE 1993 VOL. 43 NO.6 THEFREEMAN IDEASON UBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 President: Hans F. Sennholz, Ph.D. Editor: John W. Robbins, Ph.D. Senior Editor: Beth A. Hoffman Associate Editors: John Chamberlain Bettina Bien Greaves Edmund A. Opitz Paul L. Poirot, Ph.D. Contributing Editors: Doug Bandow Clarence B. Carson, Ph.D. Thomas J. DiLorenzo, Ph.D. Robert Higgs, Ph.D. John Hospers, Ph.D. Ronald Nash, Ph.D. William H. Peterson, Ph.D. Richard H. Timberlake, Ph.D. Lawrence H. White, Ph.D. The Freeman is the monthly publication of The Foundation for Economic Education, Inc., Irvington-on-Hudson, NY 10533. FEE, established in 1946 by Leonard E. Read, is a non-political, educational champion of pri vate property, the free market, and limited government. FEE is classified as a 26 USC 50l(c)(3) tax-exempt organization.

Copyright © 1993 by The Foundation for Economic Education. Permission is granted to reprint any article in this issue, except "Government Highways: Unsafe at Any Speed, " provided appropriate credit is given and two copies of the reprinted material are sent to The Foundation. The costs of Foundation projects and ser vices are met through donations, which are invited in any amount. Donors of $25.00 or more receive a subscription to The Free man. Additional copies of single issues of The Freeman are $2.00. For foreign deliv ery, a donation of $40.00 a year is suggested to cover mailing costs. Bound volumes of The Freeman are avail able from The Foundation for calendar years 1972 to date. The Freeman is available on microfilm and CD-ROM from University Microfilms, 300 North Zeeb Road, Ann Ar bor, MI 48106. A computer diskette contain ing the articles from this month's issue is available from FEE for $10.00; specify ei ther 3V2" or 5Vi' format.

Phone (914) 591-7230 FAX (914) 591-8910 PERSPECTIVE Advice to Youth Seeking to Go Down in History from the Editors of Time Last fall, Time magazine put out a special issue on "The Millennium," a survey of the history of the past one thousand years. Among the offerings is a list of the ten "Greatest People" of this entire period. The list comes as something of a surprise, when placed alongside Time's weekly editions. In their regular coverage, the editors dwell on political leaders , on the comings and goings of senators, presidents, and prime minis ters. To the impressionable, this attention might suggest that politics is the most im portant thing in the world, and that rising high in government is the path to greatness. Significantly, even Time's own editors don't seem to believe that. In identifying greatness, they virtually ignored politicians. Instead, they picked religious figures (St.

Francis of Assisi, Martin Luther), scientists (Galileo, Albert Einstein), artists (Michelan gelo, William Shakespeare, Wolfgang Ama deus Mozart), an inventor (Johannes Guten berg), and an explorer (Christopher Columbus). Only one person on the list (Thomas Jefferson) had anything to do with politics. While they were at it, the editors also compiled a list of the ten "Worst Villains" of the last one thousand years. All were political figures: Genghis Khan, Tamerlane, Vlad the Impaler, Cesare Borgia, I van the Terrible, Robespierre, Joseph Stalin, Adolf Hitler, Idi Amin, and Pol Pot. The two listings taken together suggest a rather sobering lesson about going down in history: If you go into politics, you are more likely to wind up a villain than a hero. -JAMES L. PAYNE Controlling Government But what is government itself, but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on 202 government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself. A dependence on the people is no doubt the primary control of the government; but experience has taught mankind the necessity of auxiliary precau tions.

-The Federalist "One-for-AII" Health Care: A Firsthand Account I held an engineering position with an American company in Sao Paulo, Brazil, from 1957 to 1961. The Government of President Juscelino Kubitschek de Oliveira had set up a "one-for-all" health care sys tem, supported by premiums paid into it by people with incomes above an established minimum. The Government subsidized poor and low-income people. Several health care centers were set up, where medical needs would be determined in an interview, and doctors and hospitals would be assigned. Every morning starting at 4 A.M., lines three blocks long would form at the centers. The first 100 patients would be admitted by 9 A.M., then wait inside till about 2 P.M. to be seen. Many in the lines had to return the next morning. During my stay, both my children needed tonsillectomies, and my wife required a varicose vein operation. It took me a week to find out that I would have to wait 8 to 12 weeks. In addition, I would have to pay a fee PERSPECTIVE commensurate with my above-average income.

I ~ent private: all three operations were performed within three weeks for a cost of one monthly salary. Eventually, all who would rather pay and get fast and reliable service, instead of waiting three months for the services of an unknown doctor, suspended payments for their state insurance premiums. I did too. The lines at the state health centers thinned: only low-income people and the poor lined up in the morning. In time, the Government health program collapsed for insufficient funds. -ARTHUR S. KELLER Property-the Secret of U.S. Economic Development A farmer who owned the land on which Rochambeau's troops were encamped asked for his rent. The French officers paid no attention to this "absurd claim." Seeing this, the republican clodhopper cut short any further discussion and went off to fetch the Sheriff, asking him to arrest the tres passer . Your excellency should imagine the arrival of these two poor countrymen-the plaintiff and the Sheriff-unarmed but strong in support of the Law, and resolved to arrest the French General, M. de Roch ambeau, in front of all his troops. The General was duly summoned by the Sheriff and required to pay all of his due.... How, in such a country, could desert land fail to bloom; how could the shiest and most tim orous of men fail to turn honest, just, hard working, educated, and courageous?

-FRANCISCO DE MIRANDA (1750-1816) 203 THEFREEMAN IDEASON UBERTY DENIAL OF RIGHTS THROUGH REGULATION by Zak and Jo Anne Klemmer W hen does uncompensated regulation become theft? Environmental regula tions have become some of the most obtru sive laws invading private property rights today. Regulatory taking gave rise to Lucas v. South Carolina Coastal Commission, decided last year by the U. S. Supreme Court. David Lucas paid $975,000in 1986for two beach-front lots on which he planned to build two houses, one for himself and one to sell. A state agency barred the construction under an environmental law that took effect two years after he purchased the lots. Lucas sued the state of South Carolina, arguing that the regulation denied him all economi cally viable use of his land. (It should be pointed out that similar single family houses are adjacent to both sides of Lucas' prop erty.) The state court agreed with Mr. Lucas' argument and awarded him $1.2 million for the regulatory taking of his property. How ever, the South Carolina Supreme Court reversed the lower court's decision on ap peal, ruling that "a restriction 'enacted to prevent serious public harm' doesn't require a state to compensate landowners for their losses. "