As I see it now, there are really two economies—two distinct systems of producing and exchanging wealth. Or rather, two systems that purport to do these things, though only one of them really produces anything, and the other is organized by a peculiar form of exchange.
The first is what is called the trade economy—the one summed up in the phrase "the free market." The other might be called "the tax economy."
Project Head Start is supposed to be the exception to the Great Society rule—a welfare program that actually works.
Has it occurred to many citizens that, for the few blessed days of federal shutdown, the world does not come to an end? That the stars remain in their courses, and everyone goes about their daily life as before?
Amidst the near-universal hoopla for President Bush's massive intervention into the Arabian Peninsula, a few sober observers have pointed out the curious lack of clarity in Mr. Bush's strategic objective: is it to defend Saudi Arabia (and is that kingdom really under attack?); to kick Iraq out of Kuwait; to restore what Bush has oddly referred to as the "legitimate government" of Kuwait (made "legitimate" by what process?); to dispose and/or murder Saddam Hussein (and to replace him with whom or what?); or to carpet-bomb Iraq back to the Stone Age?
Sometimes it seems that our entire apparatus of economic education: countless courses, students, professors, textbooks, backed up—in the case of oil pricing—by a decade of experience in the 1970s, is a gigantic waste of time. Certainly it seems that way when we ponder the near-universal reaction to the Kuwait crisis.
The "partnership of government and business" is a new term for an old, old condition. We often fail to realize that the point of much of Big Government is precisely to set up such "partnerships," for the benefit of both government and business, or rather, of certain business firms and groups that happen to be in political favor.
Government control takes freedom of choice away from the public and puts it in the hands of bureaucrats responsive only to their own interests and those of the state, instead of the buying public. Private enterprise in medical care means patient sovereignty. The Soviets ignored this principle, and the public is now paying for it with their health and lives.
He had been widely touted by the American media as the savior of Peru from hyperinflation and from the dangers posed by the current socialistic Garcia regime as well as the fanatical Maoist-type guerrillas who call themselves "The Shining Path." Mario Vargas Llosa, tall, aristocratic, eminent avant-garde novelist and ex-leftist, was running for president of Peru.
Riots in the streets; protest against a hated government; cops arresting protesters. A familiar story these days. But suddenly we find that the protests are directed, not against a hated Communist tyranny in Eastern Europe, but against Mrs. Thatcher's regime in Britain, a supposed paragon of liberty and the free market.
The sudden collapse of Communism in Eastern Europe has amazed and elated the West. But what does it mean? If Communism has lost, what has won?
