The Free Market

Americans are concerned about the rising cost of pharmaceutical drugs. This has drawn the attention of writers, politicians, and others who have attempted to deal with the issue in typical fashion by advocating the use of government force to implement their plan.

Until a few months ago, the sum of my experience with Latin America had been a few trips to border cities like Juarez, Nogales, and Tijuana. Beyond that, I had to depend upon Dan Rather, the New York Times, and various social activist groups to find out what was true about life South of the Border. All had a sad story to tell.

It was a revolting display to see the bureaucrats at the Justice Department cheer Federal Judge Thomas Penfield Jackson's decision. Many of these people didn't even know how to get around the web twelve months ago, and now they are making decisions for millions of consumers and threatening to smash the company that democratized information. The government, driven by power-lust and fueled by the envy of Microsoft's competitors, is happy to jam a crowbar into the wheel of commerce.

The technology is Now Available that would allow your grocery store to track the movements of customers across the store using the distinct infrared signature of each individual. By linking the data with information at the checkout counter, the purchasing habits and meanderings of each person could be analyzed.

When one thinks of "death by government," either those killed by armed members of the state or the millions who have perished in the vast gulags and prisons run by governmental agents usually come to mind. However, government has demonstrated far more creativity in eliminating people than just by shooting or starving them to death. It also has successfully drowned them while destroying property to the tune of billions of dollars. Here are a couple of horror stories.

E.O. Wilson of Harvard University is among the world's most esteemed biologists. An authority on ants, he has won two Pulitzer Prizes and coined the term "sociobiology," outraging his peers by suggesting that human behavior has some relation to human nature. Sadly, these triumphs seem to have inspired him to lay down the law on everything—a trend that culminated about a year ago in his book Consilience, which purports to unify all branches of science, religion, ethics, and art into a recipe for human happiness.

Fifteen years ago, Murray N. Rothbard wrote a piece on the most prevalent economic errors of that time. What are the great economic errors alive today?

Like a man who douses a large pile of rags with gasoline and then warns of a fire hazard, Fed Chairman Alan Greenspan has begun issuing dire warnings of impending inflation after orchestrating several years of explosive monetary growth.

The US government is now awash in revenue, owing to the economic boom that has dramatically enlarged the pie on which the state can gorge itself. And yet the Clinton administration not only refuses to curb the rates, even a smidgeon, but it wants to trade some higher taxes for a few more targeted loopholes. Meanwhile, the GOP is promising-yet again-to cut taxes. But like Lucy with the football, no one believes it any more.

The Republican Congress, fearful of taking on a Democratic president who plays the class-warfare card, again has failed tens of millions of small American businesses and families: The death tax lives. And tens of thousands of small businesses are at risk as long as it survives.

The good news that tax audits and property seizures are down obscures a more important point: by slow degrees, step by step, the tax man in America has gained total control over everyone's economic life.

The Virginia legislature has been toying with the idea of curbing or even abolishing sales taxes. The idea comes in response to merchants who fear that they are losing because of the availability of untaxed goods purchased over the web. Whether big changes in the tax code happen this year or five years from now, clearly the battle over net taxation has just begun.

In at least one area, the US economic expansion has left a trail of destruction in its wake: on it are members of the profession that pretends to forecast future economic conditions. Gene Epstein of Barron's, speaking at a Mises Institute conference, cited as an example the famous Wall Street Journal survey of economists, published on a regular basis. It represents ten years of solid failure.

Legal scholar Gene Healy has made a powerful argument in favor of abolishing the Fourteenth Amendment to the US Constitution. When a fair vote was taken on it in 1865, in the aftermath of the War for Southern Independence, it was rejected by the Southern states and all the border states. Failing to secure the necessary three-fourths of the states, the Republican party, which controlled Congress, passed the Reconstruction Act of 1867 which placed the entire South under military rule.

America' s first wage and price controls were enacted in Massachusetts, a little more than a hundred years after the first pilgrims arrived. The opportunities available in the New World combined with a strong work ethic were raising the wages of working men, to the consternation of their employers. In 1630, the colony' s Court of Assistants capped wages for several categories of skilled workers and for common laborers at 16 pence and 12 pence per day.

Statism has so permeated our culture that even the games we play reflect the popular belief in omnipotent government. For example, one of the most successful computer games of all time is the SimCity series, which requires the player to plan a city in exhaustive detail from uninhabited terrain. Over five million copies of the game have been sold, and each version to date has reflected a government-centered view of the world.

At the end of the century, Bill Clinton declared Franklin D. Roosevelt the "man of the century" for having "saved capitalism," echoing the gushing praise that Newt Gingrich has heaped on FDR, calling him "the greatest figure of the twentieth century." The greatest phony of the twentieth century would be more appropriate.

The left, most recently New York politico Lenora Fulani, likes to render the Boston Tea Party as a protest against corporate capitalism, and thereby analogous to the property-destroying protests at the World Trade Organization meetings in Seattle. A more traditional interpretation regards the Boston Tea Party as simply a revolt against taxed tea, so perhaps the WTO, which purports to support tariff reductions, fulfills the promise of the Tea Party.

The city of Seattle, which had planned to make money on hosting the World Trade Organization, wound up trying to cut its losses by asking the WTO to end its conference early and leave town. Self-described free-traders who helped to create the WTO ought to be feeling the same way. The organization that writes the rules of world trade is now the focus of nearly every unionist, environmentalist, and capitalist-hating pressure group in the world.

In The Foundations of Leninism, Stalin declared "For the overthrow of the bourgeoisie, we must have the efforts of the proletarians of several advanced countries." What he secured instead was the slavish devotion of Western intellectuals who claimed to represent the proletariat: left intellectuals. With some exceptions, these apologists either ignored or adamantly denied the atrocities of Stalinism. In doing so, they became accomplices to the bloodbath that was Soviet communism; that is, Marxism as popularized by Lenin.