May

Government Schooling: The Bureaucratization of the Mind by Thomas E. Lehman Why privatization is the only "education reform" that can succeed. The Moral Obligations of Workers by Jeffrey Tucker The free market promotes productive and ethical labor relations. American Labor Law-Bad and Still Getting Worse by George C. Leef Legislation has corrupted labor relations. Life, Liberty, and Pizza Delivery by Thomas J. DiLorenzo How the free market eliminates "service redlining." Free-Market Emancipation by Karol Boudreaux How competitive markets freed slaves in Colonial America. A Friendly View of Dealing by Tibor R. Machan The justice of free exchange. Benefit Societies in America: The Way It Used to Be by Michael 1. Probst Benefit societies can provide genuine welfare reform. How Galveston Opted Out of Social Security by Ed Myers One county's success in privatizing Social Security. The True American Tradition by WesleyAllen Riddle We ignore our constitutional history at our peril.

Atlas Shrugged Revisited: Forty Years of Voicing the Philosophy of Freedom by Edward W Younkins Ayn Rand's masterpiece lives on. Private Property and "Social" Justice by Antony Flew The charade of "social justice" is exposed. Free-Born John Lilburne: Mighty Martyr for Liberty by Jim Powell A seventeenth-century champion of limited government. COLUMNS NOTES from FEE-A Farewell by Hans F: Sennholz IDEAS and CONSEQUENCES-The New Zealand "Revolution" by Lawrence W Reed POTOMAC PRINCIPLES-The New Assault on Capitalism by Doug Bandow ECONOMICS on TRIAL-What's the Best Measure of Inflation? by Mark Skousen DEPARTMENTS Perspective-Thomas J. DiLorenzo, Thomas Jefferson, John Randolph Book Reviews -Capitalism: A Treatise on Economics by George Reisman, reviewed by Jim Powell; The Pyramid by Ismail Kadare, reviewed by Richard A. Cooper; Sovereign Nations or Reservations? An Economic History of American Indians by Terry L. Anderson, reviewed by Bruce L. Benson; Jefferson's "Bible": The Life and Morals of Jesus of Nazareth by Thomas Jefferson, reviewed by William H. Peterson; Migrations and Cultures by Thomas Sowell, reviewed by George C. Leef.

THEFREEMAN IDEAS ON LIBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 Phone (914) 591-7230 FAX (914) 591-8910 E-mail: freeman@westnet.com FEE Home Page: http://www.fee.org President: Hans F. Sennholz Managing Editor: Beth A. Hoffman Guest Editor: Thomas J. DiLorenzo Editor Emeritus Paul L. Poirot Lewisburg, Pennsylvania Book Review Editor George C. Leef Adjunct Professor of Law and Economics, Northwood University Editorial Assistant Mary Ann Murphy Columnists Doug Bandow Cato Institute, Washington, D. C. Lawrence W. Reed Mackinac Center for Public Policy .Midland, Michigan Mark Skousen Rollins College, Winter Park, Florida Contributing Editors Charles W. Baird California State University, Hayward Peter J. Boettke New York University Clarence B. Carson American Textbook Committee Wadley, Alabama Thomas J. DiLorenzo Loyola College, Baltimore, Maryland Joseph S. Fulda New York, New York Bettina Bien Greaves Resident Scholar, FEE John Hospers University of Southern California Tibor R. Machan Auburn University Ronald Nash Reformed Theological Seminary Edmund A. Opitz Chatham, Massachusetts James L. Payne Sandpoint, Idaho Jim Powell Westport, Connecticut William H. Peterson Adjunct Scholar, HeritageFoundation, Washington, D.C.

Jane S. Shaw PERC, Bozeman, Montana Richard H. Timberlake University of Georgia The Freeman is the monthly publication of The Foundation for Economic Education, Inc., Irvington-on-Hudson, NY lOS33. FEE, established 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 S01(c)(3) tax-exempt organization. Copyright © 1997 by The· Foundation for Economic Education. Permission is granted to reprint any article in this issue, except "John Lilburne," provided credit is given and two copies of the reprinted material are sent to FEE. The costs of Foundation projects and services are met through dona tions, which are invited in any amount. Donors of $30.00or more receive a subscription to The Freeman. Student subscriptions are $10.00 for the nine-month academic year; $S.OO per semester. Additional copies of this issue of The Freeman are $3.00 each. For foreign delivery, a donation of $4S.00 a year is suggested to cover mailing costs.

Bound volumes of The Freemanare available from The Foundation for calendar years 1972 to date. The Freeman is available in microform from University Microfilms, 300 N. Zeeb Rd., Ann Arbor, MI 48106. PERSPECTIVE George Washington on The Role of Government Lost in the fog of another presidential election year was the fact that 1996 was also the bicentennial of one of the greatest speeches ever made by an American presi dent: George Washington's Farewell Address to the Nation in September of 1796. Review ing some of the highlights of Washington's last presidential address sadly reminds us of how the American republic, as envisioned by the founding fathers, has been lost. But it also serves as an eternal road map for regaining our freedoms. Though he was the most famous military leader of his time, Washington disdained the existence of a permanent military establish ment. "Avoid the necessity of those over grown Military establishments," he said, "which, under any form of Government, are inauspicious to liberty, and which are to be regarded as particularly hostile to Republican Liberty."

It is wise to assume that all politicians are liars, Washington advised, for "one of the expedients of Party to acquire influence, within particular Districts, is to misrepresent the opinions and aims of other Districts." Special-interest groups may "now and then answer to popular ends," but as a rule they should be despised. For they inevitably "be come potent engines, by which cunning, am bitious and unprincipled men will be enabled to subvert the Power of the People, and to usurp for themselves the reins of Govern ment." It is "the interest and duty of a wise people," moreover, to "discourage and re strain" government power by every available means. Washington would be appalled at all the foreign campaign contributions solicited by today's politicians, for such solicitation "opens the door to foreign influence and corruption," whereby "the policy and the will of one country, are subjected to the policy and will of another."

The "Great rule of conduct for us" in foreign affairs ought to be to trade with other countries, but "to have with them as little 250 political connection as possible" and to "steer clear of permanent Alliances, with any por tion of the foreign world" except in the case of extraordinary emergencies. Modern-day "judicial activism" would likely cause Washington to reach for his sword, for he believed it to be a devious means of constitutional "change by usurpation" and a dire threat to liberty. Judicial activism is nothing less than "the customary weapon by which free governments are destroyed." On economic policy George Washington favored strict laissez faire. Our commercial policy should "hold an equal and impartial hand: neither seeking nor granting exclusive favors or preferences" to anyone. Instead, we should rely on "consulting the natural course of things" and "forcing nothing" by legislation and regulation.

In Washington's eyes, a laissez-faire eco nomic policy, minimal military establishment, the absence of entangling political alliances with foreign nations, and a Constitution that would perpetually confound special-interest politics and keep the size and scope of gov ernment to a bare minimum were essential to "prevent our Nation from running the course which has hitherto marked the Destiny of Nations." This message is just as important to Americans in 1997 as it was in 1797. --THOMASJ.DILoRENZO Dr. DiLorenzo, a professor of economics at Loyola College, Baltimore, Maryland, is this issue's Guest Editor. Jefferson on States' Rights Resolved, That the several states compos ing the United States of America are not united on the principle of unlimited submis sion to their general government; but that by compact under the style and title of a PERSPECTIVE Constitution for the United States and of amendments thereto, they constituted a gen eral government for special purposes, dele gated to that government certain definite powers, reserving each state to itself, the residuary mass of right to their own self government; that whensoever the general government assumes undelegated powers, its actsare unauthoritative, void, and of no force: That to this compact each state acceded as a state, and is an integral party, its co-states forming, as to itself, the other party: That the government created by this compact was not made the exclusiveor final judge of the extent of the powers delegated to itself; since that would have made its discretion, and not the Constitution, the measure of its powers; but that as in all other cases of compact among parties having no common judge, each party has an equal right to judge for itself ...

--THOMAS JEFFERSON, Kentucky Resolution of 1798 Parchment Promises I have no faith in parchment, sir, I have no faith in the abracadabra of the constitution; I have no faith in it. . . . If, under a power to regulate trade, you draw the last drop of blood from our veins; if ... you draw the last shilling from our pockets, what are the checks of the constitution to us? ... When the scorpion's sting is probing us to the quick, shall we pause to chop logic? Shall we get some learned and cunning clerk to say whether the power to do this is to be found in the constitution, and then, if he, from whatever motive, shall main tain the affirmative, like the animal whose fleece forms so material a part of this bill, quietly lie down and be sheared? -JOHN RANDOLPH, commenting on the Tariff of 1824 251 THEFREEMAN IDEAS ON LIBERTY Free Trade and Human Rights in China by James A. Dorn T he best way to promote human rights around the world is to promote free trade.