The Free Market

America's worry over a general moral erosion in politics and society has coincided with ever-more draconian federal control over education. What's often overlooked is that government schooling itself may be the crux of the problem. In particular, the compulsory attendance laws that exist in every state, and which are reinforced by federal programs, guarantee a captive audience for political indoctrination.

The personal, political, and scholarly papers of Ludwig von Mises have been discovered in a formerly secret archive in Moscow. So have the papers of many of Mises's colleagues and associates during his years in Vienna, including friends and foes in academia, politics, and business.

They should have called it the Federal Advisory Panel for a Huge and Sneaky Tax Increase and a Massive Increase in Corporate Welfare. That—and not "privatization"—is the real upshot of what the advisory counsel to fix Social Security recommended.

Congress proved it: not even childbirth is off limits to federal mandates. Forty-eight hours will heretofore be the minimum hospital stay for new mothers, Congress said, double the time insurance companies used to cover. Who could disagree with such tender loving care, courtesy of D.C.?

The welfare state keeps being reinvented under new labels. In 1993, the Clinton administration renewed the Bush program (dreamed up by then HUD secretary Jack Kemp) called "Moving to Opportunity" (MTO). It gave welfare recipients housing vouchers worth as much as $1,677 per month for rental housing in middle-class neighborhoods.

Remember how, when you were a kid, the drawstrings on your jacket were constantly catching on the seesaw or the swing? How sometimes a passing car would snag the drawstrings of a friends hood, garroting him before your eyes? Neither do I. But someone at the Consumer Product Safety Commission must, because drawstrings are on their way out.

My idea of a great president is one who acts in accordance with his oath of office to "preserve, protect, and defend the Constitution of the United States." Not since the presidency of Grover Cleveland has any president achieved greatness by this standard. Worse, the most admired have been those who failed most miserably. Evidently my standard differs from that employed by others who judge presidential greatness.

Academic fraud has never been more acceptable. Works of literature are purged of material contrary to the latest political fad. Photographs are airbrushed to exclude incorrect habits like smoking. Movies with the wrong message are cut.

The same is true in economics, and the most recent con job involves the manipulation of data that reflect poorly on the government.

Yet the biggest obstacle to a gold standard, as always, is intellectual. What these Congressmen need is a good monetary education. Four objections invariably crop up when the subject of gold is raised. Here they are, with some short answers.

Among the many excuses for government planning is that it makes life safer for one and all. The automobile bears the brunt of this central planning. Like most all interventions in the free market, the effect of mandates to make the car safer is nearly the opposite. Witness the recent air bag fiasco.

Before the mid 1950s, there was no "retirement" as we use the term today. A 1950 poll showed most workers aspired to work for as long as possible. Quitting was for the disabled. Life did not offer "twilight years," two decades of uninterrupted leisure courtesy of the U.S. taxpayer.

As with other economists of the "old liberal" school, the rise of Nazism forced Röpke out of Germany and into intellectual exile. After the war, however, he made a triumphant return as adviser to finance minister Ludwig Erhard, another unsung hero of the period. Erhard repealed Germanys wartime economic controls and set the stage for the postwar boom. For this reason, Röpke is often called the brains behind the German economic miracle. He also became the most articulate opponent of European political integration.

Which is a greater cause of cultural and moral decline: the private sector or the government? Asked another way, which is doing more to promote a return to civilized social norms: the market or the central state? The answer highlights a dividing line between left and right.

In October, former HUD Secretary Henry Cisneros spent $716 million to demolish decrepit housing projects. Before you cheer, consider this. The units won't be replaced with a market system. More money will be spent on yet another socialistic program, this time to pay welfare recipients to move into private housing in suburbia and elsewhere.

People who advocate tax-funded school vouchers for private schools frequently hail the G.I. Bill of Rights education vouchers for World War II veterans as a model. In truth, the G.I. Bill was a budget-busting middle-class entitlement scheme that had destructive effects on higher education, and set the stage for virtually all our current educational problems.

The furor over the supposed racism of Texaco's management dramatizes, in miniature, the tragedy and danger of so-called civil-rights legislation. The Texaco story paints a vivid picture of what we've become: an economy distorted and abused by a racial spoils system, in which race is pitted against race, employees pitted against employers, and all power is held by federal bureaucrats and magistrates who "resolve" disputes by taking capitalists to the cleaners.

The big 2000 is approaching, and with it comes renewed interest in millennialism and the Book of Revelation. Everyone is looking for signs of something to happen, either cataclysmic or glorious. Will the Kingdom of God be established on earth? If so, what will it look like and who will be its prophet?

The excuses given for big government take many forms. But NASA has surely come up with something unique in world history. They are trying to convince us that there is life on Mars, that we'd better speed our way there to find out more, and that's why they need more of your money.

Shutting down the government was this Congress's most noble act. Though the freshmen, who forced the closing against the leadership's wishes, didn't properly prepare for the inevitable response from the media and the bureaucracy, they were on the right track. It may have been the only principled act in two years of political compromise.

The physical impossibility of Santa got me thinking about the economics of the old boy's operations. After all, he is not paid for the goods he delivers, and it would be improper for him to send a bill the next morning. Nobody asked him to leave the stuff, or contracted with him to do so. But that means he gets no feedback from the consumer, much less a clear indication of profit or loss.