The Secret Knowledge

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The question, as posed by Milton Friedman, was not “What are the decisions?”—any human or conglomeration is capable of decisions both good and bad—but “Who makes the decisions?” Shall it be the Government, that is, the State, or shall it be the Individual?

In some cases it must be the Government, which is, in these, the only organ capable of serving and protecting individual liberty and freedom: notably, in defense, the administration of justice, and maintenance of and oversight of Federal Infrastructure, e.g., Roads, Interstate Travel, Waterways, Parks, and so on. But what in the world is the Government doing meddling in Education, Health Care, Automobile Production, and the promotion of dubious, arguable, or absurd programs designed to bring about “equality”? Should these decisions not be left to the Individual, or to a Free Market, in which forces compete, to serve the Individual who will be the arbiter of their success?

But but but, some will interject, “Look at the abuses.” Well, some abuses fall afoul of the laws, in which case the provision has been made for their correction which, if not forthcoming, is in the right of the public to demand. Others fall afoul of custom, and will or can be corrected by censure, withdrawal of custom, or attempts at criminalization. Some must be borne, as they would under any system of government, business, or administration: someone eventually, inevitably, makes what someone else might characterize as “an error.”

But which system, Free Enterprise, or the State, is better able to correct itself?

For this is the essence of the difference between the Free Market (constrained) and the Liberal (unconstrained) view of the world—to use Friedrich Hayek’s terms. It is not a difference of preference for plans or programs—in which either side may not only differ but, equally, be wrong. It is a difference in appreciation of structure.

The constrained view is that neither human beings, nor any conglomeration into which they may form themselves, are omnipotent, nor omniscient, nor omnibenevolent. We are incapable even of knowing, let alone of implementing, engines to alleviate the true causes of, and indeed of understanding the true nature of, many of the problems besetting us. This is, as Hayek says, the Tragic View. We are not only wrong, but most often wrong. The treasured values of one generation (slavery, phrenology, lobotomy, physical discipline of children, women as property, et cetera) are seen now not only as vile but as absurd. As, eventually, will many of the cherished ideas of today. This is tragic, but inevitable.

The question is which of two systems is better able to discard the failed and experiment to find the new; and the answer is the Free Market. It is not perfect; it is better than State Control; for the Free Market, to a greater extent, must respond quickly and effectively to dissatisfaction and to demand—if a product or service does not please, to continue in its manufacture in the Free Market is pointless. (Compare Government persistence and expansion of programs proved to have failed decades ago—farm subsidies, aid to Africa, busing, urban renewal, etc.) On the other hand, in a Free Market, every man, woman, and child is scheming to find a better way to make a product or a service which will make a fortune. The garage mechanic, the housewife, the tinkerer, the scientist, the artist, and their kids—everyone is always looking for a better way. (Compare the Government employee sitting at his desk. Why is he not looking for a better way to do his job? Why should he? A more efficient way might possibly eliminate his job, or that of the superior to whom he owes allegiance.)

Nothing is free. All human interactions are tradeoffs. One may figure out a way to (theoretically) offer cheap health insurance to the twenty million supposedly uninsured members of our society. But at what cost—the dismantling of the health care system of the remaining three-hundred-million-plus? What of the inevitable reduction, shortages, abuses, delay and injustice caused by all State rationing?

There’s a cost for everything. And the ultimate payer of every cost imposed by government is not only the individual member of the mass of taxpayers who does not benefit from the scheme; but likely, also, its intended beneficiaries (cf., welfare, busing, affirmative action, urban planning).

Well, you will say, it’s not Either/Or. And, of course it is not. All civilizations need, and all civilizations get Government. Many have inherited, had forced upon them, or in fact demanded a real or obviously potential dictatorship (Nazi Germany, Fascist Italy)—these, and their like, began as Welfare States, dedicated, supposedly, to distributing the abundant good things of the Land to all. But they, and all the Communist States, and Socialist States, operated at a cost, for everything has a cost. The cost of these benevolent dictatorships was shortage, famine, murder, and the eventual dissolution of the State. Hayek calls this utopian vision The Road to Serfdom. And we see it in operation here, as we are in the process of choosing, as a society, between Liberty—the freedom from the State to pursue happiness, and a supposed but impossible Equality, which, as it could only be brought about by a State capable and empowered to function in all facets of life, means totalitarianism and eventual dictatorship.

Is the State to decide for the individual, or is the individual to insist upon a reduction of State powers to that point at which this power is reserved only for application in those cases, as specified in law, where one individual or group abridges the liberty of another?

The latter is the revolutionary understanding of government spelled out in that Constitution elected officials swear to defend. They are elected as public servants, the public granting them only that freedom of action necessary to fulfill that oath. Is it not time for a return to that revolutionary understanding?

11

WHAT IS “DIVERSITY”?

It is a commodity. Parents purchase it for their children; for as much as they might pay to achieve and brag about their children’s membership in a “wonderfully diverse” setting, they all eat in restaurants whose clientele looks just like themselves. As do we all. This is “Pediatric Diversity,” or diversity-by-proxy.

Once, in my younger days, I was asked to help out at some fund-raising event for some good cause. The event was to raise funds to alleviate hunger. All the attendees bought a ticket, but the tickets were numbered one, two, or three. Those getting number one were entitled to all they could eat; the twos, to a meal consisting of five hundred calories (the supposed caloric intake, for the evening meal, in the area to which the funds were supposed to be sent); the threes got nothing at all. I was passing out tickets at the head of the line. I collected the money from a fellow there with his young son. He leaned in toward me and asked me to give them both a three.

I went home after the event and felt something of a fool. What, I wondered, was this charade in which I was participating? If the fellow wanted his son to know what it felt like to miss a meal, couldn’t he have played that charade at home? If everyone had, the event would have had no overhead costs, and everyone would have been able to send all the ticket costs to the hungry. But this fellow was practicing Pediatric Socialism: he, rightly, as a loving father, never wanted his son to be hungry; but, like a loving but overindulgent father, he wanted to purchase for him an approximation of the experience, which, he thought, might make his son a better person.

But how would the two possibly be connected? For the son had not only noticed that a point was made that some people were hungrier than others, and that it was (supposedly) a matter of chance, but that one could appreciate and learn from this unfortunate fact by purchasing a ticket at a game show; and, perhaps (more likely), the son had observed that money and influence could buy anything, even a charade of