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March 1987 $4.00 Volume 1, Number 4 How YOur Child Could Be a Millionaire by Age 21 -Karl Hess

apitalism for Kids hy Karl Hess want to urge you. as strongly and sincerdy career that has included starting a busi­ is unlike any book you have ever as possihk. to huy it and read it first for ness at age 16, selling it for 5100,000 C read. For the very first time, free yoursdf. Only then give it to a kid you like. and starting other husinesses dealing market economics is presented simply Karl's hook c-rystallizt:'s thoughts that most with limousines. and clearly. And, it teaches the most people have had. hut havt:'n't thought out fully. It washt:'s away the foundations upon practical skill ofall-how to make money. which fears and guilt arc constructed over a Special Note From The Publisher The hook is aimed at teaching husiness lifetime; it rt:'plact:'s them with ideas you "It is with special pleasure that I am to kids in the 9 to 19 age group. Any always helicvt:'d in intuitively hut wert:'n't offering Capitalism For Kids to you young person you know who has quitt:' sure how to ddend, and your fanlily. entrepreneurial anlhitions should read This hook is rt:'ally grt:'at. Makt:' surt:' it is From my personal experience at a availahle to your kids and yourself." this hook. Itpresents why and how young age, I remelnher how much I always you can earn a profit in business while Douglas Casey Author(ij'Investing in Crisis wanted to he in husiness for myself. still maintaining the highest possihle Yet, in school, virtually all I was taught standards ofhonesty and integrity. "Karl is one of tht:' ht:'st writers I havt:' t:'\Tr was how to become someone else's Capitalism for Kids is fun to read come across. Ht:' workt:'d t()r mt:' in my Prt:'si­ employee. When I asked my teachers and the ideas it presents are truly unique. dential Campaign, has written any mimher of where I could get infornlation ahout It is \:vritten it,l a lively style with lots papers and articles for mt:'. and I can find heing my own hoss, they couldn't recom­ of useful examples. no bult with him, mend any hooks on the practical aspects I thinkCcljJitalism For Kids will makt:' vt:'ry Here are a few highlights revealed: intt:'rt:'sting rt:'ading, not just for young people, of running a successful small husiness. •A self tt:'st to help Lktt:'rmint:' how t:'ntt:'r­ hut t()r people of all agt:'s. I say that. ht:'caust:' That's why this hook is so unique. prising tht:' young reldt:'r rt:'ally is. Karl umkrstands capitalism, he understands The "how to" ideas it presents are rarely •A spt:'cial st:'ction for part:'nts to show how socialism. and ht:"s quick to tdl you which is taught in any schools. you can help your child hn:ome tlnancially tht:' hetter of tht:' two," I feel sure that this hook \villundouht­ succt:'ssful. Barry Goldwater edly make a hig difference in the future • \X'hat youngpt:'opk nt:'t:'d to know ahout Former U.S. Senator development and financial success of working for tht:'mselvt:'s. anyone who reads it, and I am proud to • How to makt:' any product or st:'rvi<..T rt:'ally "Author Karl Ht:'ss dot:'s a hrilliant joh stand out. prt:'senting capitalism in a style that is hoth he its puhlisher." • How managing mont:'y and time is crucial. dear and t:'ntertaining to young people. 67..ut~ • All ahout taking risks. But adults will he t~lscinated hv it as well. I Puhlisher • How to gt:'t tht:' most from an nlucation. certainly learned much. partic'ularly ahout the • St:'tting up a family company. practical aspects ofstarting a small husiness, About The Author • 'What typt:' ofcolkgt:' nlucation is tht:' Capitalism For Kids is hound to ht:'comt:' most ust:'ful. a classic as wdl as inspirt:' and encourage Karl Hess is an entrepreneur, former • Improving tht:' education rt:'ct:'ived at home. many new entrepreneurs young and old, And editor at Nell'Sll 'eek and author ofsix • l'sing computt:'rs as handy husint:'ss and hecause it shows vou how to hecome indepen­ hooks. He writes with conviction ahout financial aids. dent, make mont:'~'. and even hecomt:' rich. it's how and why applying the principles valuahl~ • \X'ht:'re high school entrt:'prt:'nt:'ur c1uhs tht:' most gift hook I"T t:'\Tr seen offree enterprise leads to independence art:' located, for any young person," • \X'hy doing voluntt:'er work can often he ont:' Roy A. Childs,Jr. and success. of the hest ways to start a husint:'ss car<"Tr. Laissez Faire Books, Inc. Free Bonus- Money Plant •A practical rt:'~it:'w of laws. lict:'nst:'s and Iiahilitics. "Karl Ht:'ss. one of tht:' most intt:'rt:'sting free As a honus for ordering, we'll send you • Thrt:'e common types ofliahilityin husint:'ss. thinkers I know. has written a marvdous ahsolutely free a packet ofseeds for • \Vhich fidds hold thegreatest mont:'y making hook. It explains what making money is all your (or your child's) very own. easy to potential t()r young peopk. ahout. in simple readahle fashion that anyone grow money plant. The flowers for the • Special advice to the reader from famous nine or older can understand. unique Lunaria plant hloom into pods entrt:'preneurs contactedduring the prepara­ I f(>und it ddightful f(~ading. especially the which resemhle silver dollars. tion of the hook including David Packard, chapter on government intervention in Chairman, Hewktt Packard. Inc.: Lillian husiness. Money Back Guarantee Katz, Founder Lillian Vernon Inc.: and Capitalism For Kids can really get your \X'illiam Deardon. Former Chairman, childor grandchild excited ahout the free Enterprise Puhlishing, Inc. ensures Hersht:'y Foods Corporation. enterprise system." your conlplete satisfaction. Review Mark Skousen, Editor Capitalism For Kids for up to 30 days, Forecasts & Strategies and if you are not completely satist1ed Attention Readers 19 or Under for any reason, you may return it for a To any reader of this message Kids Success Stories prompt and courteous refund. who is age 19 or under. you are Heather Brackeen and Stacey Smit, To avoid disappointment, order your eligible to participate in a contest both 11, ofAlbuquerque, New Mexico hardcover, limited edition copy today. that will help us capture the youth opened their own shop called the The price is only 512.95 postpaid. market. Your task is to create a full Weaving Loom. They specialized in hand There is no sales tax on your order and page ad, aimed at your age group, woven items such as scarves, placemats, ifthe book is used to start a business, on why you like the book Capital. purses, and pot holders. the purchase price is fully tax deductible. ism for Kids. The grand prize is Javier Corral Jurado, ofCiudadJuarez, Quantity discounts are available to an opportunity to star in an up­ Mexico, at the age of13 was the founder, children's groups, c1uhs and organizations comingcommercial about the book. reporter, photographer, editor, ad sales­ upon request. Deadline for contest entry is man and publisher ofEl Chis1ne, "The To order, call now Toll-Free: June 1, 1988. Gossip". His newspaper is puhlished every 1·800·533·BOOK (2665) 2 weeks for 1500 readers. Or send check or credit card information to: What Readers Say: At 15, Robert Lewis Dean borrowed Enterprise Publishing, Inc. "I don't want to just halfheartedly recom­ 51,500 from his parents, hought a 1972 725 Market Street, Dept. NU-81U mt:'nd this hook among the thousands of Cadillac and fixed it up then sold it Wilmington, DE 19801 others out there that arc worth reading. I at a profit. That was the heginning ofhis c Enterprise Puhlishing. Inc. :\lC1\1LXXX\'11 l'lO16 Contents Freedom For the Adventurous William Cate, page 7 The Majority V5. The Majoritarian Robert Bork on Trial Sheldon Richman, page 9 Libertarians, Moralism, and Absurdity Ethan O. Waters, page 14 The Readers on Waters (A Disputation), page 16 Free Speech & The Future of Medicine Sandy Shaw and Durk Pearson, page 20 Game vs. Game a story by Raul Santana, page 23 The Crash of 1987 Eight Perspectives, page 25 Strange Bedfellows The Libertarian/Conservative Misalliance John Dentinger, page 37 Freedom is for Everyone Murray N. Rothbard, page 43 Can Computers Save the World? Ross Overbeek, page 45 Me and the Eiger an observation by Murray N. Rothbard, page 60 Departments ---+---- [{eviews R. W. Bradford on "Blood in the Streets," page 49 Mike Holmes on "In Search of Melancholy Baby," page 51 Terry Inman on Murray Bookchin, page 54 Stephen Cox on Going Beyond Gideons, page 55 Booknotes, page 56 Timothy W. Henderson on Film, page 57 Buronic Episodes, page 36 Letters, page 4 Contributors, page 61 Terra Incognita, pages 61 & 62 Classified Advertisements, page 60 membership by the time of the National Convention in 1989. During my campaign·I did promise [ Letters ] to try to double or triple membership within a two year span. If would require a Brownian Movement the day. miracle to triple membership by 1988 (as I suppose, then, that I should now be you quoted me) since we are in it. I enjoyed reading your initial issue­ careful how I apply similar questions Matt Monroe especially the interesting articles about about the same lack of influence of Max Houston, Tex. Tom Marshall. However, I was a little Stirner. I've been thinking on The Ego surprised to read: and Its Own for quite a while now, and A Matter of Style "Tom arrived in the ideologically have nearly come to view Stirner's ideas seminal atmosphere of Los Angeles Bruce Earnheart (Letters, Liberty, as the logical conclusion of careful re­ in the early 1960s. Harry Browne was Oct. 1987) is correct in noting how re­ flection in normative morality. And as a at the Henry George School..." formist or charismatic politicians are ca­ I'm afraid I've never been to the result, I just cannot understand the pable of bringing marginal groups into overall neglect of old Max's ideas in li­ Henry George School, nor would I even politics. The strongest claim of the bertarian literature. Oh, I can under­ know where it is. I mention this only so Means campaign was that Means would stand the strategic or political difficul­ that no one will get the idea that I'm a bring into our fold many nonvoters, es­ ties that would face the Libertarian Party Georgist. I have always been, and will pecially minorities. His experience in when accused of amorality, but I don't continue to be, a card carrying, dyed in the civil-rights left was cited. For reasons the wool, unrepentant, unreconstructed understand how the subject just never too complex to go into here, I was not Brownist. seems to come up at all. Even Ethan convinced, and am glad that the nod in Waters doesn't quite cut the cord with I mean Browneist. Seattle went to Paul. However, it is (or normative ethics in his comments on Harry Browne rather was) a debatable point; and I can Robert Nozick, though he comes very Austin, Tex. quite understand those who were con­ close. vinced. Reflections on the Apostasies And so I ask, what's so hard to accept But the luftmenschen that Dr. Roth­ in faulting Robert Nozick, his neighbors, bard refers to are not significant blocsof of Wollstein and Waters or anyone else, for that matter, for per­ potential voters. They are rather "those Liberty is everything you advertised haps being short-sighted in evaluating dirty, unshaven, and profane New Left­ and well worth its price. Why it is, then, personal interests? Why not recognize ists" and their ilk. To say that liberal atti­ that I have chosen to write a complaint and admit to mistakes in personal judg­ tudes toward the family are a result of instead of praise I don't know. But the ment without getting all twisted up in their efforts is ridiculous. Traditional silly little piece by Nathan Wollstein the convoluting details of normative eth­ morality was changed by the automo­ ("The Dilemma of the Gladiators," Lib­ ics? (Let's see, now was that a logically bile, penicillin, and the Pill. Similarly, op­ erty, Oct. 1987) was just more than I false morality or the misapplication of position to the quagmire in Vietnam was could stand. I mean, I knew that aca­ what we think is a logically true morali­ inevitable, given the nature of the con­ demic libertarians still pondered over ty? And have you really stayed awake flict. normative ethics from the leisure of " during most comments in Critical Re­ As the latter movement. was political, scholarship stipends and tenure, but I view?) its history is relevant to Libertarians. had no idea that the agony had reached As I said, I know that I should have And I think it can be safely said that the this intensity. And were it not for the learned prudence in knee-jerk accusa­ prominence in the anti-war movement quickly following antidote of Ethan Wa­ tions that whole groups of people areig­ of luftmenschen like Abbie Hoffman ters ("Reflections on the Apostasy of noring a particular idea that seems com­ and Tom Hayden was disastrous. There Robert Nozick") in the same issue, I pelling to me, and I'm trying to keep my was no inherent reason why Middle think I would have swooned. balance. But my goodness; dilemma of America should have been opposed to When I first began reading and the gladiators! Please Mr Wollstein, an anti-war movement, given America's thinking about libertarian sorts of things share your reflections on Max Stirner. traditional isolationism. One of the about five years ago, I was struck by the Jim Smith things that kept them 'away, perhaps the conspicuous neglect of the ideas of Ayn Shrewsbury, Mass. main thing, was the prominence of radi­ Rand in both popular and orthodox aca­ Note: Additional letters on Ethan Wa­ cal crazies to whom Nixon and Agnew demic philosophy. Her notions of atheis­ ters' "Reflections on the Apostasy of could always point to as Horrible Exam­ tic morality and her writing style both Robert Nozick" appear on page 14 of ples. Late in his life, Norman Thomas seemed the perfect contribution for this issue.-Editor urged the New Left to clean the flag, not what I considered to be the long­ burn it. That his advice was not heeded standing search for an appropriate alter­ Correction cost America twenty thousand lives. native to conventional religious morali­ I read with great enjoyment your But, Mr. Earnheart points out, the ty. Well, I've since worked my way past "Conventional Notes" (Dec. 1987). The generation of the sixties has grown up. the initial seduction of her prose and on Membership Committee of the Liber­ True, and they aren't the type of people through what I consider some of her tarian National Committee is involved who would reject a Russell Means for his faulted ideas. And so now I think I un­ in membership drives at different levels nonconformity. But neither will they re­ derstand why Ayn Rand has not carried at this time, trying to double or triple ject Ron Paul because of his conformity.

4 Liberty More ues lead us to conclude that we, as liber­ of religion, I would think they provide tarians, have a natural place on the left, fertile ground for the growth of Libertari­ rather than on the right? Certainly liber­ anism, and a prime source of votes in ( Letters ] tarian concerns with Church-state separ­ elections. So, why attack them? ation and civil liberties are concerns On page 23 of the same issue, Mur­ These were, after all, the people who more common to the left than the right. ray Rothbard says he is getting tired of backed Gene McCarthy in '68, and he Certainly atheism and the basic grounds lithe offhanded smearing of religion..."I wasn't exactly what you call a hippie. In (pro-reason, pro-science) behind athe­ fully agree. Let's spend our time attack­ any case, the image that appeals most to :ism are common to both libertarians and ing government and making our beliefs these people is that of a JFK clone; and the left in general, however good or ill as attractive as possible. If we don't on that test, both a Means and a Paul those reasoning powers are applied by think harder about the consequences of flunk. On the other hand, there remains either libertarians or leftists. It is some­ what we are doing and saying, there will a significant bloc of conservative voters thing to consider. be no votes, no elected libertarians, and who are turned off by someone like Kenneth R. Gregg, Jr. no progress toward true freedom. Means. That's bigotry, and I don't like it, editor, Atheists Richard Geyer but it exists. The liiftmenschen, as I un­ United Newsletter New York, N. Y. derstand Rothbard's use of the term, are Sherman Oaks, Cal. minuscule in number. What Correlatives Imply My conclusion is that while sub­ The Dynamics The point I sought to develop in my stance must remain radical until of the Inappropriate book, The Man and Woman Relation­ enough people agree with us to make it ship ("Booknotes," Dec. 1987) had to do the status quo, there is no reason why we I question the· essay "The Dynamics with the fundamental nature of relation­ should not make the style as palatable of Voluntary Tyranny" (Liberty, Dec. ship, that without relationship meaning as possible. 1987) not for its contents, but for its ap­ cannot be given to something. Without Jeff Schneier propriateness. To what good end is the the intrinsic nature of relationship we Chestertown, Md. inclusion of an essay so critical of a relig­ ious group? Particularly one that is so could not singularize one part of any­ Unholier Than Thou well organized and centered on a very thing in its relation to something else. well read publication that can quickly This idea of relationship is not any­ I thoroughly enjoyed the statistical alert its members to your attack on their thing new. What I did was relate it to our analysis of Libertarians ("The Sociology beliefs. It seems to me no matter how sexuality. Without both male and fe­ of Libertarians" 'by John C. Green and valid the author's essay may be, it is cer­ male, neither sex would hold any mean­ James L. Guth, Liberty, Oct. 1987), par­ tain to alienate a group of several mil­ ing. Sexuality only has meaning in terms ticularly the section on religious affilia­ lion people within our society who might of male as to female. That is fundamen­ tion. The article corroborates research otherwise be disposed towards Libertari­ tal. My comment that homosexuality is which I have done with atheists. Liber­ anism. As the Jehovah's Witnesses are not a sexuality follows by definition; tarians, as a general rule, are methodo­ both anti-government and pro freedom there is no sexuality without the funda­ logical individualists, taking their own mentalness of the opposite sex included reasoning power as the primary means of analysis, rather than accepting the dogma of some religious authority. While atheists are, as a general statisti­ Publisher's Notes: cal rule, left of center, this leaves me Launching a new periodical, especially an explicitly ideological one, is al­ with an interesting question. ways a difficult venture. During Liberty's first six months, we have made signifi­ On the political left-rig~ spectrum, cant progress. non-libertarian atheists and libertarians Liberty continues to grow and prosper. The paid circulation for our De­ are normally placed in opposite corners. cember issue was more than 2,100-which gives Liberty the second highest paid circulation of any libertarian periodical based on the most accurate fig­ On the religious left-right spectrum, ures we can assemble. Our circulation remains well behind Reason (paid cir­ however, they reside, as they always culation is about 28,000) but significantly ahead of The Pragmatist (paid circu­ have, on the far left. Historically, liber­ lation about 1100), the only other libertarian periodical we know of whose paid tarians were associated with the political circulation exceeds 1,000. left (indeed, the extreme left), and it has We have conducted two surveys of our readership. The results were very only been since the political upheavals encouraging: on average, each article published in the Liberty is read by an as­ associated with the rise of Franklinstein tonishing 86% of respondents, and 95% of respondents indicated they would re­ (FDR) of the 30's that libertarians (Le., new if their subscriptions expired at this time. the non-Marxist, anti-Stalinist leftists­ The cover date on this issue is March. This does not reflect our falling be­ who did not fit well in the simplistic no­ hind schedule, an all too frequent problem of libertarian publications. Our newsstand distributors have asked us to push back the date to give our maga­ tion of leftist/commie/bomb-thrower) zine a longer shelf life. were merged with the disgraced reac­ You will note our December issue was expanded to 56 pages, and this is­ tionaries of the traditionalist right wing in sue to 64 pages. Increasing the length of these issues has meant additional American politics. This is where Ameri­ work and expense, but we think it has been worth it. We realize that we are still can libertarians have been pigeon-holed getting glitches out of our publication, and appreciate any comments or sug­ ever since. gestions. Might this article on libertarian val- Liberty 5 More legal tradition of arbitrarily imposing ian legislator is going to have to make sharp boundaries.on concepts that are some deals and compromises, support inherently imprecise. Roe vs. Wade some mildly unjust bills, in order to get [ Letters ] rather provided rough distinctions any support from his non-Libertarian among one class of cases where a fetus colleagues for the bills he favors. Roth­ in the relationship. I also develop the is enough of a human being to be grant­ bard's demand that libertarians refrain idea that it is the interaction of opposites ed limited status as a person, a second from participating in coercive state ac­ that makes for the creative. where a fetus is clearly not enough of a tivity "in any circumstances" would ef­ What, one may ask, does this have to human being to be granted even that fectively bar libertarians from govern­ do with liberty? Simply, that if one is limited status as a person, and a third ment entirely. holding himself as part of a relationship class of cases in which the grounds for There may still be a case for libertari­ that is not balanced, where one side. is granting or withholding any status as a ans taking jobs whose functions are com­ held to be intrinsically superior or inferi­ person are so weak that the Court is not pletely illicit. A libertarian, arguably, or to the other metaphysically, that. a competent to make any general deci­ may justifiably work for the Fed, the master/ slave situation will result. Mas­ sion for that class of cases. My only dis­ FCC, or some agency of that ilk, provided ter/ slave equals relationship out of bal­ appointment with the Roe vs. Wade de­ that his post is a policy-making one, ena­ ance. cision is that it has not led to any re­ bling him to influence and restrict the Christopher A. Anderson evaluation of laws and legal precedents agency's operation. Rothbardian prohi­ Santa Rosa, Cal. in which arbitrary precision has been bitions would lock libertarians out of the imposed on imprecise concepts such as very positions where they're most need­ Kneecap Rights... that of "adult." I would have liked to see ed. Libertarians are not going to take the courts and legal theorists taking the Although Murray Rothbard's re­ government by storm; we will have to "fuzzy areas" at the borders of such con­ marks about abortion ("Life or Death in settle for a gradual infiltration, and that cepts as a fact of life that must be lived Seattle," Liberty, Aug. 1987) are tangen­ means working within the system. tial to his evaluation of Ron Paul's candi­ with rather than as an inconvenience Nothing I've said endorses Nozick's that must be legislated or adjudicated dacy, I feel obliged to comment on a or anyone else's working to increase the out of existence. I am especially sorry common error that he perpetuates, sum-total of coercion in our society. Nor that libertarians have not explored a namely confusing the issue of whether a would I deny that there are some cases particularly libertarian way of living with human fetus is a human being with the in which a libertarian is obligated to re­ imprecision in those concepts: that of al­ non-issue of whether it is human. frain from participating in coercive ac­ Human earlobes, human kneecaps, lowing persons to decide how the con­ tivities, even when such participation cepts apply to them in the "fuzzy" cases, and human pancreases are human but would lead to a net reduction in coer­ e.g., of allowing a woman to classify her are not human beings. A human fetus is cion. For example, if a kidnapper threa­ 5-month fetus as a non-person if she unquestionably human, indeed, every tened to kill his 12 hostages unless a by­ wants to abort it and to classify it as a bit as human as a human earlobe, knee­ stander killed an innocent person, it person if she seeks legal redress for inju­ cap, or pancreas, but that says nothing would be wrong for the bystander to ac­ about whether it is a human being, ries that have resulted in the fetus's cede to the request. We must, as Roth­ death. which is a question not about its biologi­ bard himself notes, walk the fine line be­ James D. McCawley cal species but about its status as an in­ tween the two extremes of dogmatic Chicago, Ill. dividual in its own right, rather than as a martyrdom and utilitarian expediency. part of another individual. The two best­ But I'm not sure he realizes just how known sides in the dispute agree that Something Fishy close his own principles takes him to the there is a sharp distinction between a Murray Rothbard offers some very martyrdom pole. human being and a human non-being, simple advice ("Libertarians in a State­ A final question: I'm curious how but differ with regard to which of the two Run World," Liberty, Dec. 1987) on the Rothbard would (and why he didn't) re­ landmark events in the developmental subject of government employment: spond to the central argument of Ethan history of a human being provides the government jobs whose functions are Waters' article ("Reflections on the distinction: conception or birth. Each otherwise legitimate are morally permis­ Apostasy of Robert Nozick," Liberty, side is correct in dismissing as ridiculous sible, while jobs whose functions are in­ Oct. 1987). Even granting Rothbard's dis­ the other side's way of drawing the dis­ trinsically rights-violating are not. tinction between legitimate and illegiti­ tinction: there is in fact no event that Unfortunately, the real world is not mate government activities, Waters marks a distinction between a separate that simple. Many government jobs that claims that the Cambridge Rent Control individual and a mere part of the moth­ are largely legitimate have illegitimate Board passes the legitimacy test be­ er's body-there is rather a continuous aspects. For example, a judge or police­ cause a non-government analogue of it development that begins with a single man will, in the course of his duties, could have arisen non-coercively (put­ cell that is joined to and biologically to­ have to enforce laws that are unjust ting it in the same category as the Post tally dependent on the mother's body from a libertarian standpoint. Doesthis Office or the Fire Department). There's and ends with an organism capable of mean that no libertarian should become certainly something fishy about Waters' survival separate from the body of a (real a judge or a policeman? If so, libertari­ argument, but I haven't quite got my fin­ or surrogate) mother. ans should not beconle legislators either ger on it yet. I am delighted that the Roe vs. (so much for the Libertarian Party!), Roderick T. Long Wade decision avoided the regrettable for-let's face it-any effective Libertar- Ithaca, N.Y.

6 Liberty Advice Freedom. for the Adventurous by William Cafe Liberty's correspondent' from "somewhere in Latin America" offers some practical advice to those considering opportunities in the "Third World."

A few years agoI was having coffee i~ the Upper ~mazon Basin, whe~ two Germans joined me. They wallted me to collect Insects for shipmen.t to Europe. ThIS w~s during the late 1970's; inflation had made hard asset investing look good and anythIng that had kept pace wIth the inflation rate could be sold as an investment. These men realized that the value of specimen insects had television and the security of his hotel. plied hundreds of times for almost any more than doubled annually for the A few days in a library and a visit to a Third World country. The British, past couple of years and felt they could couple of local Third World museums French, Germans, Spanish, and Portu­ create a European market for "Invest­ can provide the seeds of an entrepre­ guese have all held sway over much of ment Insects." neurial adventure. the world in the recent past. In each The result was an agreement that case they sent out nationals to rule the put me in the jungle with a few Indians Where to Start country and develop trade and com­ collecting insects, preserving them What do you look for in your li­ merce. These nationals brought arti­ and shipping them to Europe. I made brary? Read the footnotes in national facts from their home countries. Rich good money for a few months until the histories. Bone up on the development nationals brought valuable artifacts; in local government decided that my op­ of Colonial Empires during the past places where the percentage of rich eration was harming the environment. five centuries. Study population migra­ nationals was high, such as India un­ They were unmoved by my objection tions. Learn about minerals and gem­ der the British, the potential for Eng­ that their annual spraying of tons of stones, or plants and animals. lish artifacts is high. DDT killed a thousand more insects in If you read the footnotes in a histo­ The ideal situation is where there an hour than I could collect in a year. ryof Mexico, you may come across the was a significant number of rich for­ Put out of the business, I noted that the curious fact that there was a Ukrainian eign nationals in an emerging country locals could not make it work, primarily enclave in Baja California during the which totally rejects the Colonial pow­ because they did not understand the 19th Century. The question you ask er. That situation exists in many areas concept of a perfect insect. In due yourself is what are the chances that of Africa today. There are valuable an­ course, the inflation rate reportedly Ukrainian artifacts, such as icons, can tiques whose values are not known by leveled out, investment insects be­ be found in the area? If you think the locals in all of these places. Knowing came passe and I went on to other odds are good and you want to visit what artifacts of a European power things. Baja you have the basic plan for an ec­ might have been imported a hundred An aversion to regular employ­ onomic expedition. or more years ago can give you good ment, a desire for travel and adven­ The only remaining question is leads on what to seek out during your ture, and a need for money can enable whether or not the present Mexican travels. anyone to pursue profitable adventure, government prohibits the export of During the Ming Dynasty, the Chi­ ranging from buying gem rough from 19th Century Ukrainian artifacts. Since nese Empire was expanding. A signifi­ miners to exporting "investment" in­ no one has exported Ukrainian arti­ cant number of Chinese migrated to sects. facts from Mexico the odds are there is the Philippines. In due course, they It is possible to maximize your own no law against it. Plus the odds are that died and were buried with their pot­ economic freedom by following the even if someone passed such a law, no tery. For a couple of years in the last time-honored formula: maintaining one working with the Mexican govern­ decade, Manila was a major source of citizenship in one country, while earn­ ment would recognize an antique icon. authentic Ming porcelain. (In this fash­ ing a living in a second, banking in a (Footnote: Ifyou were to go to the Rus­ ion, the German migration to Argenti­ third and living in a fourth. You can't sia and find an authentic icon, it would na in this century has made that Span­ build that sort of international diversi­ be impossible to export. The Soviets ish-speaking country a major source fication and invulnerability without have laws against it and their employ­ of German antiques.) As Manila be­ venturing abroad. ees at airports recognize icons and oth­ came better known as a source of In fact, profitable adventure can be er Russian antiques.) Ming pottery, fakes became more found by anyone willing to desert his This type of approach can be multi- common. Today, the odds of buying an Liberty 7 authentic Ming vase in Manila are no America or Europe. Back in the 1960s, steadily increased. Obviously, the mil­ better than finding an authentic Inca a number of adventure travellers be­ lions or billions spent have had little af­ necklace in Lima. gan to export hand made Indian wool­ fect on the major traffic. The government of Colombia owns ens to the U.S. It was a profitable busi­ But there is always constant pres­ the emerald mines at Muzo. In their ness until the handwoven goods sure to catch someone smuggling hundred year ownership, the govern­ became popular in the U.S. Then buy­ drugs. The ideal someone is a U.S. citi­ menthas yet to have a single profita­ ers for Wards, Penneys, and Sears zen doing it for the first time. You get ble year. The emerald rough moves arrived in the Indian villages. The caught, the DEA shows it's doing its through independent business chan­ market was ruined in less than two job, and the drug trade continues. nels to markets in North America and years. Meanwhile you rot in a rat-infested Europe. To buy the rough at jail. the source is dangerous, but Almost everyone stuck in there are other, smaller Latin I know it's hard to pass the opportunity an office or on an assembly American sources for eme­ when you see a parrot in a jungle village line thinks life would be rald rough. An adventurous that you can buy for two dollars and know great, if only it were more in­ entrepreneur need not sit in teresting. But actually be­ Muzo bartering with a min­ you can sell it in the U.S. for a thousand coming an entrepreneurial er's patron to get a good dollars. But don't buy it. The problem adventurer is not for every- price. is the Government. one. The fact of the matter is Other mineral specimens very few people find long have good markets in North term happiness in unusual America and even more so in Europe. Don't export live animals. I know lifestyles. Exploring 16th and 17th Century Span­ it's hard to pass the opportunity when The reason is that if you can make ish mines for vugs of perfect mineral you see a parrot in a jungle village that it as an adventurer, you probably have specimens is not dull work. And the you can buy for two dollars and know the ability to make a lot of money in profits can be very satisfying: profits of you can sell in the U.S. for a thousand any environment. Most of the people I fifty to one hundred times cost are not dollars. But don't buy it. The problem explored with a quarter century ago unknown. is the Government, which requires a 30 are now part of the economic and polit­ Or consider other government in­ day quarantine period (at the cost of ical power elite. tervention resulting economic disloca­ $998) on live parrots. I exported rep­ And it takes hard work and ability tions. New Zealand, for example, has tiles for awhile, until new regulations to make anything work. The further long imposed high tariffs on automo­ by the Department of Fish and Game you are from the mainstream of life biles. The cost of cars has been so high made it necessary to smuggle the the more work and ability it takes to that Kiwis have been very careful specimens. I never lost a live reptile in maintain a comfortable living. about maintaining them. As a conse­ legal shipment, but smuggled reptiles If you are interested in exploring quence, in recent years New Zealand typically have a fifty percent death the opportunities for adventure entre­ has been a major source of antique rate. preneurship, I suggest you begin by vi­ cars for American collectors. Don't expect to make a living as an siting your library. You might want to adventure writer: the market is too start with these three books: Guidelines for small and the competition too great. Mary & Gillmar S. Green, "How to Succesful Adventure When I began my wanderings there be an Importer and Pay for Your Ignore the common wisdom. You were many adventure magazines like World Travel," Celestial Arts Publish­ cannot make your fortune by exporting True and Argosy that accepted manu­ ing, Millbrae, Cal, 1979. something closely associated with the scripts from adventure travellers. They Sylvia Dorn, "The Insider's Guide country. Pre-Columbian art from Latin have disappeared, along with the ma­ to Antiques, Art, and Collectibles," America is impossible to acquire and jority of their writers, many of whom Cornerstone Library, NY, 1977. (Origi­ sell. Even experts have difficulty distin­ limited their adventures to the New nally published by Doubleday in '74) guishing the real from the fake. Some York city library or a bar in Bel€m. I've Daniel & K. Leab, "The Auction experts estimate that twenty five per­ never seen an adventurer's newsletter. Companion," Harper & Row, NY, 1981. cent of the Pre-Columbian art in U.s. Jack Wheeler in "The Adventurer's You should start out from your cur­ museums is "fake." What's worse, Guide" may have started in that direc­ rent base by taking a long vacation. In Congress has passed laws outlawing tion, but the tide of history was against the long run, it is uneconomic to work importation of pre-Columbian arts, so success. from a U.S. base. It is not just the taxes: even if you manage find genuine spec­ Don't get involved in the drug busi­ the cost of living in the States or main­ imens and smuggle them into the ness. The U.S. government spends taining a U.S. base far exceeds the cost country, you cannot advertise your hundreds of millions-perhaps bil­ of living and maintaining a base in the wares. The FBI shows more interest in lions- of dollars to stamp out the drug Third World. I recently moved back to stopping the sale of Mayan art than in trade. Political and economic pressure Latin America for just this reason. J am breaking up a drug ring-perhaps be­ is exerted against all Third World gov­ comfortable living there, and I know I cause the latter is somewhat more ernments to insure their cooperation will find opportunities. dangerous. with the "War on Drugs." Despite this If your library time proves fruitful, Don't get involved with products massive effort, drug prices have maybe someday I'll meet you over cof­ that can have a mass market in North dropped in the States as the supply has fee in the Upper Amazon Basin. 0 8 Liberty The Majority vs. the Majoritarian Robert Bork on Trial by Sheldon Richman

The failure of Robert Bork to be confirmed for the U.S. Supreme Court is by far the best political event of the Reagan years. When, for instance, did you last hear the Ninth Amendment discussed on television, even if it was being defended by the buffoon Joe Biden? When did you last witness a debate about what right of privacy maybe possessed by the people-even if no one got it quite focus only on how we should regard obituary, "Our Nestor Taken From right? And when did you last watch that document. The issue in the con­ Us," "It should be borne in mind that government officials talk about the text of the Bork nomination was not the question [at issue between Spooner purpose of the Constitution? whether the Constitution was binding and abolitionists such as William The point isn't that the pompous on anyone (I said the discussion was Lloyd Garrison] was one of interpreta­ usurpers in the committee room knew interesting, but not that interesting). tion simply; the authority of the Consti­ what they were talking about. But at The issue rather was what does the tution as such was not under discus­ least they were blathering about some­ Constitution mean. There is nothing sion; if it had been, Spooner's thing interesting for a change. And be­ wrong with an individualist anarchist opposition to it would have been far cause of this, most of the press was who denies the authority of the Consti­ more radical than Garrison's."l clearly out of its league. tution to nonetheless argue for an in­ It is interesting that for all of the op­ Robert Bork, let it be said, is a fasci­ terpretation as consistent with natural position to Bork, no mainstream figure nating figure. Articulate and bright, he law and justice as can be made out. disagreed with Reagan's judgment represents a view that is so widely held, My authority on this is none other that Bork is a great constitutional usually implicitly, that it is important than Lysander Spooner. Spooner, of scholar. Every opponent, however viru­ for libertarians to understand and an­ course, was the author of The Constitu­ lent in his opposition, felt obliged to swer it. Bork is all the more interesting tion of No Authority, in which he say that Bork is a prodigious thinker because he was a libertarian of sorts in argued incontrovertibly that the Con­ and jurisprudential theorist. Maybe the 1960s-not a natural-rights liber­ stitution was morally binding on no this is protocol, but it is by no means tarian, but a Chicagoite, utilitarian with one. Yet Spooner also wrote The Un­ self-evident. One could make a a commitment to private property and constitutionality of Slavery, in which he persuasive case that Bork, however the free market. In this, Bork stands as challenged his fellow abolitionists who clever (as opposed to wise), is a mere the latest illustration of what weak reed readily conceded that the Constitution dilettante who flits from subject to sub­ utilitarianism is for libertarianism. sanctioned slavery. (This book will be ject, shooting from the hip, turning a Without a commitment to rights and discussed in due course.) Spooner's phrase here and there, but no intellec­ the justice of individual liberty, one seeming acceptance of the Constitu­ tual heavyweight. should not expect a long-term commit­ tion in this book is usually taken as evi­ ment to a free society. And so it was dence that he had not yet arrived at his The Anti-American Spirit with Bork, who migrated from libertari­ "no authority" position. But this is not' Heavyweight or not, Bork's ideas anism to a variant of Burkeanism, with the case. According to his friend and about government are easily assailed touches of Rousseauianism, under the fellow anarchist Benjamin Tucker, and just as easily shown to be contrary influence of the late Yale legal scholar Spooner was willing to argue that slav­ to the spirit of the American revolution Alexander Bickel. More on this later. ery was unconstitutional even though and its Lockean backdrop. Before proceeding to an analysis of he also believed that the Constitution First, let's look at some of Bark's the Bork phenomenon, I should ex­ was not binding. He did so because he fundamental ideas about politics. As plain that the following is what we can saw that the text did not sanction slav­ Stephen Macedo pointed out so well in call an "intraconstitutional" discus­ ery and because he thought he could his recent book on the jurisprudence sion; that is to say, for the purposes of deny the proslavery forces the high le­ of the New Right, 2 Bork is a moral discussion I will take the authority of gal ground by making his case. skeptic who, for lack of a better guide the U.s. Constitution for granted and As Tucker wrote in his Spooner to political decision-making, defers to Liberty 9 the majority of the body politic. (Mace­ quist and Justice Antonin Scalia, and an interpretation of the Constitution as do notes that majoritarianism is itself a his mentor Bickel, see the judiciary as informed by the original intent of the moral principle, however dubious, and an institution out of place in a democ­ framers and ratifiers. As he said in his thus that Bork's moral skepticism is racy. "Judicial review is a deviant insti­ AEI lecture, "The Framers' intentions self-contradictory.) For Bork, "the peo­ tution in the American democracy," with respect to freedoms [note that he ple," which means 50 percent plus one, wrote Bickel. doesn't speak of powers here -SR] are is authorized under the Constitution to The exact constitutional status of the sole legitimate premise from which establish a "public morality" in all are­ judicial review is a complex topic that constitutional analysis may proceed." as except where it is specifically pro­ would take us far afield. Suffice it to say Macedo has dealt this view a devastat­ hibited by the Constitution. that Bark distrusts it because it can too ing blow. Whose intentions? Why the In a 1984 lecture at the American easily become an infringement on the framers and not the ratifiers? Which Enterprise Institute, Bork quoted G. K. "freedom" of the majority to make intentions? Those stated in public Chesterton approvingly, "What is the law. speeches or in private letters an~ diar­ good of telling a community that it has ies? And how do you reconcile inten­ every liberty except the liberty to make Sham Neutrality tions with compromises made by the laws? The liberty to make laws is what Bork presents his jurisprudence of many people who framed and ratified constitutes a free people." judicial restraint and deference to the the final document? In fact, original in­ To this Bork added, "The makers of legislature as a "neutral" principle. In tent is no guide at all. our Constitution thought so too, for other words, as he told the Senate Judi­ Moreover, original intent is a self­ they provided wide powers to repre­ ciary Committee so many times, his subverting philosophy, since it requires sentative assemblies and ruled only a philosophy is neither liberal nor con­ "judicial activism" to invoke it. No­ few subjects off limits by the Constitu­ servative; he as a judge does not take where in the Constitution does it say tion." substantive positions on the issues at that future generations should be Now this is interesting. guided by the intentions Here is a conservative de­ of anyone. Alexander Ha­ fending nearly pure de­ If the courts stop the majority from milton, in an essay he mocracy. All of a sudden, prohibiting the use of contraceptives, wrote in 1791, specifically populist majoritarianism is denied that the authors' the central faith of Ameri­ the freedom of the collective "to make subjective intent was to be can conservatism. I can re­ laws" has been infringed. It counts for a guide: call conservatives in the nothing that the freedom of concrete Whatever may have 1960s telling liberals, "The individuals is upheld ... been the intention of United States is not a de- the framers of a con­ mocracy; it is a constitu- stitution, or of a law, tional republic." I can also recall when hand. He merely defers to the people's that intention is to be sought for a "strict constructionist" was someone legislature, unless the matter is con­ in the instrument itself, according who strictly construed the enumerated cretely addressed in the Constitution. to the usual and established rules powers of government and expansively But this supposed neutrality is a sham. of construction. Nothing is more construed liberty. Today conservatism We know from work of Public Choice common than for laws to express stands for the opposite; a strict con­ theorists and their precursors that the and effect, more or less than was structionist narrowly construes liberty government has a tendency to grow intended. and defers to the powers of the state­ because, among other reasons, legisla­ All Hamilton was saying is that if all in the name of the people. tures serve concentrated interests at you want to know what the law says, Ironically, the New Right, of which the expense of diffused taxpayers. you read it. You don't delve into the Bork must be counted a cardinal Thus, deference to the legislature facil­ minds of the authors. If the 14th member and favorite son, says it de­ itates the growth of the state. Strictly Amendment says "No state shall deny spises Rousseau. But the Chesterton limited government cannot be the re­ any person the equal protection of the quotation has a heavily Rosseauian sult of the Borkian philosophy. laws" you do not investigate to see if by and even Hegelian flavor. Freedom is The strange thing is that Bork "any person" the authors.meant only seen not as liberty for the individual to claims to be a disciple of James Madi­ black people or former slaves. The au­ pursue his own ends unmolested by son, the chief author of the Constitu­ thors were perfectly capable ofwriting his fellows. Rather it is the holistic free­ tion. Bork invokes Madison repeated­ "black people" or "former slaves" if dom of the collective, the enactment of ly. Yet it was Madison who feared the that's what they wanted us to read. the "general will." Thus, if the courts tyranny of the majority that he felt Spooner discussed constitutional stop the majority, acting through the would grow in the legislature unless interpretation at length in The Uncon­ legislature, from prohibiting the use of checked. As he wrote in Federalist 10, stitutionality of Slavery. He was con­ contraceptives, the freedom of the col­ "Measures are too often decided not cerned with answering the argument lective "to make laws" has been in­ according to the rules of justice· and that the Constitution was intended to the right of the minor party, but by the fringed. It counts for nothing that the sanction slavery, despite the fact that superior force. of an interested and freedom of concrete individuals is up­ the word slave appears nowhere in the overbearing majority." Bark has no held. This is not the original notion of document. He went after this argu­ such fear. liberty. Bork and his intellectual mates, ment with his characteristically sharp such as Chief Justice William Rehn- For Bark all authority comes from 10 Liberty mind: which is consistent with right, make no law abridging the freedom of Why, then, do not men say dis­ shall be attributed to them­ speech, or of the press." That is about tinctly, that the constitution did unless other parts of the instru­ as straightforward as English can be, sanction slavery, instead of saying ment overrule that interpretation. wouldn't you say? So why, we may ask, that it intended to sanction it? Another rule is, that no extrane­ does Bork hold the position that "polit­ We are not accustomed to use ous or historical evidence shall be ical speech" is what was in the minds the word "intention," when speak­ admitted to fix upon a statute an of the framers or ratifiers? In the 1970s ing of other grants and sanctions unjust or immoral meaning, when Bork in fact argued that only political of the constitution. We do not the words themselves of the act speech was constitutionally protected. say, for example, that the consti­ are susceptible of an innocent He later broadened his view to include tution intended to authorize con­ one. scientific and moral speech; he broa­ gress "to coin mon- dened it still more during the hearings. ey," but that it did But do not be misled by his authorize them to broadening. A particular coin it. Why, then, in I'm sure we could come up with an form of speech gains protec­ the case of slavery, do tion only if it somehow con­ men say merely that argument showing that pornography in tributes, however, indirectly, the constitution in­ fact cloes contribute to the democratic to the democratic process. tended to sanction it? process. But this would miss the point. Speech that can be shown to The reason is obvious. have no relationship to that If they were to say un­ The perniciousness of Bork's view is process is not protected in equivocally that it did that to be protected speech has to have Bork's view. He now puts sanction it, they such a connection. only one form of expression would lay themselves in that category­ under the necessity of pornography. Now I'm sure we could pointing to the words Without a doubt one of the reasons come up with an argument showing that sanction it; and they are for these stringent and inflexible rules that pornography in fact does contrib­ aware that the words alone of the is that judges have always known that, ute to the democratic process. But this constitution do not come up to in point of fact, natural justice was it­ would miss the point. The pernicious­ that point. 3 self law, and that nothing inconsistent ness of Bork's view is that to be pro­ For Spooner, then, you have to find with it could be made law, even by the tected speech has to have such a con­ the meaning in the words. You must most explicit and peremptory lan­ nection. Where does it say that in the not invest the words with meaning guage that legislatures could employ. 5 Constitution? During the hearings Bork's approach is precisely oppo­ drawn only from elsewhere, such as the Bork said that "everyone" agrees that site of Spooner's because he believes subjective intention of the authors. political speech is the core of the The constitution itself contains no one must derive meaning not from a amendment and that other protected designation, description, or ne­ common-sense reading of the lan­ forms must ripple out from the core. 7 guage, but from knowledge of the cessary admission of the exis­ Lots of people may believe that, but framers' or ratifiers' subjective inten­ tence of such a thing as slavery, that does not make it so. The fact is tions. This method is far closer to that servitude, or the right of property that the text of the amendment does used by Chief Justice Roger B. Taney in man. We are obliged to go out not qualify the word speech with the in the infamous Dred Scott decision of of the instrunlent, and grope word political. Even if you could show 1857. Taney ruled that the Constitution among the records of oppression, that political speech is what every forbade blacks from being citizens and lawlessness and crime-records framer and ratifier had in mind, that the Congress from outIawing slavery in unmentioned, and of course un­ would not warrant such an interpreta­ the territories. Yet he could not find sanctioned by the constitution­ tion. They wrote speech-period. to find the thing, to which it is said such language in the document. His There is no need to refer to anyone's opinion at one point says we must not that the words of the constitution subjective intent. The language is crys­ apply. 4 read into the Constitution meaning not tal clear. intended by the authors. Yet it is he Spooner emphasized that when in­ We find this sort of thing over and who refuses to simply grasp the lan­ over in Bark. He has become famous terpreting legal language, one must guage. Whatever may have been in not ascribe meaning contrary to funda­ for his criticism of the opinion in Gris­ the minds of the framers, they wrote wold v. Connecticut, in which the Su­ mental natural law unless no other only of "persons" and never referred to reading was possible. Echoing general­ preme Court struck down a law that any other living being. Even where they forbade the use of contraceptives. The ly accepted canons of construction, he were supposed to have referred to wrote, majority opinion, written by Justice slaves, they used the term "other per­ William O. Douglas, held that, based Where words are susceptible of sons." 6 Dred Scott was the work of an on several provisions of the Bill of two meanings, one consistent, Original Intentionalist. Rights, we can properly infer a right to and the other inconsistent, with Observe the perverse results of privacy that protects people in their justice and natural right, that Bork's approach. Let's start with the use of contraceptives. Bork accused meaning, and only that meaning, First Amendment. IICongress shall the court of inventing a free-floating Liberty 11 right of privacy that could have perni­ Let's turn to the Ninth Amend­ compared it to an inkblot covering up cious effects. ment. Again, it says, "The enumeration a phrase, his point being that since we The issue is not clear-cut, in this in the Constitution, of certain rights, can make no sense of the amendment sense: There is in natural law no free­ shall not be construed to deny or dis­ we should not imagine what it might floating right of privacy. Privacy is not a parage others retained by the people." mean. He said he is sure that it does fundamental right, but rather a right Why is it in the Constitution? During not refer to a body of natural rights be­ derived from self-ownership and the the Constitutional Convention, the del­ cause the framers would have said so. right to property. If you are a self­ egates declined to include a bill of Now it is bizarre indeed that a dev­ owner and if you therefore have a right rights, over the objections of the Anti­ otee of original intent and "historical to justly acquired property, you have a federalists. During the ratification materials" would be so woefully ignor­ right to be left alone, which means a debates in the 13 states, this became a ant of the history of the Ninth Amend­ right to keep people off your property. ' big issue. Some states ratified the ment. When he was asked at the hear- But since the rightto priva- ings if he had read the book cy is rooted in self­ The Forgotten Ninth ownership, it cannot pro­ Bork compa,red the Ninth Amendment by Bennett B. tect all activities. It cannot Amendment to an inkblot Patterson, Bork said he had protect activities that not because the Ninth themselves violate rights. covering up a phrase, his Amendment hadn't been a For example, a parent can­ point being that since we can central concern of his. You not rationally invoke the would think that someone right to privacy when he make no sense of the amendment writing the kinds of things beats his child. On the oth­ we should not imagine what it Bork was writing would be er hand, Bork can show the interested in this amend- left-liberals that they don't might mean. ment in particular. What really believe in a full right does that tell us about his in­ of privacy by asking if this tellectual integrity or cou- right protects competing businessmen Constitution only on the condition that rage? when they discuss prices. (This is obvi­ the first Congress include a bill of ously not a problem for libertarians. rights. Might vs. Right But it is not primarily the right to priva­ The Federalists (more precisely, Let us turn to another issue now, cy that protects the businessmen; it is nationalists) rebutted the Antifederal­ that of "substantive due process." This the right to property.) ists by arguing that a bill of rights was doctrine was used widely, though not Bork is wrong, however, in arguing both unnecessary and dangerous. It consistently, before 1937 to protect that Griswold "invented" a right with was unnecessary because the national freedom in the economic realm. The respect to the use of contraceptives. government could do only what was most famous case was Lochner v. New The Fourth Amendment protects "The specifically allowed in the Constitution. York in 1905, in which the Supreme right of the people to be secure in their It was dangerous because to list a lim­ Court struck down a New York State persons [and] houses"; the Fifth ited number of rights would imply that law that prohibited bakery employees Amendment says "No person shall those were the only rights the people from working shifts longer than 10 be...deprived of life, liberty, or proper­ had. Anything not listed would be con­ hours. As any libertarian might sus­ ty, without due process of law"; the strued as not being among the peo­ pect, and as Richard Epstein of the Ninth Amendment says, "The enu­ pie's rights. (Whether the Federalists, University of Chicago Law School has meration in the Constitution, of certain such as Hamilton, really meant this is pointed out, this law was blatant spe­ rights, shall not be construed to deny not the point here. They said it and it cial-interest legislation. At the large, or disparage others retained by the made sense.) union bakeries employees worked people"; and the Fourteenth Amend­ The Federalist James Madison, the nine-hour shifts. At smaller, nonunion ment says, "No State shall make or en­ chief framer of the Constitution, was bakeries, they worked 14 hours. Actual­ force any law which shall abridge the persuaded of the need for a bill of ly, what they did was report to work late privileges and immunities of citizens of rights by Thomas Jefferson. But he saw in the afternoon, put the bread in the the United States; nor shall any State the danger in a limited enumeration. ovens, and then sleep until morning, deprive any person of life, liberty, or So he decided to have the best of both when they removed the bread. The law property, without due process of law." sides: a bill of rights with a caveat that was clearly a way for the union baker­ It should be noted that Bork never the bill was not exhaustive. Hence, the ies to drive the smaller bakeries out of said that the freedom to use contra­ Ninth Amendment. business. ceptives could not be found in the Unfortunately, the Ninth Amend­ The Supreme Court, in a split deci­ Constitution; he merely said the meth­ ment has never played a central role in sion, struck down the law as violative of od used by the court was unfounded. any Supreme Court opinion. It was freedom of contract and substantive When asked at the hearings how such mentioned, however, in the Griswold due process as embodied in the 14th a freedom might be validated, he said case, both by Douglas and by Justice Amendment. It was in this case that he never thought about the issue. I re­ Goldberg in a concurring opinion. Justice Oliver Wendell Holmes, a dis­ cite this only to show that Bork's inter­ For Bork and his allies in the New senter, wrote that the "14th Amend­ est in individualliberty is, shall we say, Right, the Ninth Amendment is an ir­ ment did not enact Mr. Herbert hard to locate. relevant, inconvenient nuisance. Bork Spencer's Social Statics." 12 Liberty Isn't substantive due process a the Civil Rights Act's "public accom­ ment setting up the machinery of de­ strange idea, even a contradiction in modations" provision-the principle of mocracy. Oddly, this is not what the terms? Not at all. Consider: Let us say compulsory association-was one of framers said it was. They said it was a that the Congress, following regular "unsurpassed ugliness." During the barrier between the people and the legislative procedure, passes a law hearings he several times conceded government. In particular, the courts, compelling everyone to shave his head that his opposition to forced associa­ according to Madison, were to be "an and that the bill is signed by the presi­ tion was a mistake, attributable to what impenetrable bulwark against every dent. There is no question that the reg­ he derisively called his "libertarian­ assumption of power in the legislative ular procedures were followed in en­ ism." He explained that early in his ca­ and executive" branches. Government acting this law. But such a law would reer he thought that political questions powers were limited and enumerated; nonetheless be out of spirit with the could be judged on the libertarian individual rights were expansive. Gov­ Constitution and its philosophical un­ principle and that libertarianism could ernment could do only what it was spe­ derpinnings of natural rights and natu­ be read into the Constitution. He said cifically allowed to do. ral law. Because of these underpin­ that under the influence of Alexander Bork has turned this topsy-turvy. As nings, mere compliance with formal Bickel he came to realize that he was Macedo viVidly writes, Bork treats procedures is not enough to make a wrong. Political questions, he said, "rights as islands surrounded by a sea law legitimate. The substance must be could not be neatly decided on the ba­ of government powers, precisely taken into account when judging the sis of whether or not they were consis­ revers[ing] the view of the Founders as validity of any law. This is implicit, but tent with individual liberty. One should enshrined in the Constitution, wherein clear, in the Constitution. Thus, a law ask, as Edmund Burke did, whether a government powers are limited and that interferes with freedom of con­ law does more good than harm and if specified and rendered as islands tract was held to be unconstitutional so it is a good law, Bork said. The surrounded by a sea of individual despite the fact that it was enacted by state's dictating to property owners rights." the specified procedures. whom they must associate with There have been many dark mo­ Bork and nearly every mainstream "worked" and thus was good, he add­ ments in the Reagan years that liber­ legal thinker believe that substantive ed. tarians can point to. There are few due process is illegitimate, at least And so Judge Bork bashed libertar­ bright ones. I believe that the brightest when applied to economic matters. ianism whenever his opposition to the moment of all is the resounding defeat Lochner for most is a dirty word. Bork Civil Rights Act came up. He sat be­ of Robert Bork. It was inspiring most of disparaged it during his confirmation fore the likes of Ted Kennedy, Howard all because much of the public opposi­ hearings. Metzenbaum, Orrin Hatch, and Strom tion to Bork seemed to stem from his But, then, Bork has disparaged the Thurmond-scoundrels through and callous and crabbed view of individual idea of individual liberty on many oc­ through-and said individual liberty is rights, especially that of privacy in casions. Here is his quintessential not a principle for judging laws. You one's own home. How ironic that the statement: "Every clash between a mi­ could almost hear them thinking, "So conservatives, who rail at the judici­ nority claiming freedom and a majori­ what else is new?" This is conservatism ary's supposed insulation from majori­ ty claiming power to regulate involves laid bare. ty opinion, were so livid at the Senate's a choice between the gratifications of The Bork nomination has posed apparent responsiveness to public two groups." In the same article he anew the question, What is the Consti­ opinion when it cast a big thumbs down wrote, "Where constitutional materials tution? Bork says it is simply the docu- on Robert Bork. 0 do not clearly specify the value to be preferred, there is no principled way to prefer any claimed human value to Endnotes any other." 8 This takes us back to Bork's moral 1 The obituary was reprinted in Lysander Spooner, Vices Are Not Crimes: A Vin­ skepticism. When a thief wishes to dication of Moral Liberty [Cupertino, California: TANSTAAFL, 1977]. steal your silverware and you wish to 2 Stephen Macedo, The New Right v. The Constitution (Washington: Cato Insti­ tute,1987). keep it, there is nothing but a clash of 3 Lysander Spooner, The Unconstitutionality of Slavery, in Charles Shively, ed., competing gratifications. When a kill­ The Collected Works of Lysander Spooner, Vol. 4, "Anti-Slavery Writings," er wants to take your life and you want (Weston: Mass., M&S Press, 1971), p. 57. to keep it, it is the same clash. Since for 4 Ibid., p. 59. Bork there is no principled way to me­ 5 Ibid., p. 62. Spooner proceeds to show that the three allegedly slavery­ diate between gratifications, he would sanctioning provisions of the Constitution cannot be reasonably construed as leave the decision to the majority. But, such. as noted above and as others have 6 In this connection, see the excellent article "Why Blacks, Women & Jews Are pointed out, Bork is using a principle Not Mentioned in the Constitution" by Robert A. Goldwin, Commentary, May even if he wishes to evade it. The prin­ 1987, pp. 28-33. 7 I apologize for not haVing direct quotations from the hearings. The transcript ciple is: Might makes Right. had not been published at the time of this writing. That Bork once advocated individ­ 8 These remarkable statements were in Bork's article "Neutral Principles and ual liberty

Ethan O. Waters' essay "Reflections on the Apostasy of Robert Nozick" (Liberty October 1987) t?~c::hed off a m~elstrom of criticism from our readers. Below we print a sa~pling of that crItIcIsm, along wIth Waters' response.

Fervor and Complicity The Oldest Scam in the Book Waters argues that Nozick's dis­ Mr Waters argues "a hypothetical pute with his landlord, conducted Ethan O. Waters finds it silly for li­ through the Cambridge Rent Control bertarians to accept the state's booty contract" using the oldest scam in the Board, was possibily legitimate, by li­ and is "not convinced that it is psycho­ philosophical book. Like proving the bertarian standards, given the U.S. Con- logically possible for an individual to existence of God using some indirect, oppose statism while living off its bene­ but underlying, assumption that God fits." I don't know Mr Waters's con­ exists, Mr Waters has engaged in cir­ ception of silliness but I don't find what cular reasoning. he finds silly at all if one never sup­ His assertion is that it is not rele­ Waters ports the taking of the booty and op­ vant that the hypothetical contract Tibor Machan begins by claiming poses it whenever possible. And I don't probably wouldn't exist; only that it that I "find it silly for libertarians to ac­ know how Mr. Waters might achieve could exist. Assuming he would stay cept the state's booty." Such a view is conviction in some area of concern true to the philosophical law of cause so far from my thinking that I had to but I can testify to and report on oth~ and effect, then to discuss this hypoth­ reread my essay closely to find what he e'rs' fervent anti:statism "while living esis, he is assuming certain causes to was talking about. What I had written off its benefits," e.g., as we teach in exist. Under any imaginable scenario, was "The spectacle of opponents of state universitities, make use of the in order for so many individuals to be­ statism competing for its booty seems post-office, drive on state roads, etc. come a party to this "hypothetical con­ a bit silly." Certainly the distinction be­ To help understand this stance, im­ tract," the acceptability of initiated tween "accepting" the state's booty agine a community ruled by a group of force must, not just could have, but and "competing for" the state's booty thieves and robbers who now and then must have existed. should be plain even to professors of conduct a raffle at which victims gain a To prove that immorality is accept­ philosophy. rare chance to have some of their tak­ able using an argument built on a pre­ He criticizes me further for failing ings returned. In the absence of any mise that immorality is acceptable is to to appreciate how "it is psychologically other way of rectifying the group's prove nothing whatsoever. possible for an individual to oppose criminal conduct, the victims take ad­ Then, he attacks Ms Rand's accept­ statism while living off its benefits" and vantage of the raffle and use much of able argument with the intellectual re­ goes on to regale me with tales of "fer­ their recovered property to mount a re­ tort: "It seems a bit silly to me." vent" anti-statists teaching in state uni­ sistance to the group. I fail to see any­ As Mr Waters quotes Rand: versities, using the post office and thing silly in the behavior of these vic­ "Check your premises." roads, etc. tims. Am I alone? Will this be Randy Paulsen I suppose that I may have overstat­ dismissed as the ravings of someone Phoenix, Ariz. ed my case a bit here: I certainly do not with a vested interest in statism? Or is believe that it is literally impossible for there.an argument against this-and The Contract is Not Vai'id: I an individual to oppose statism while how will it be mailed to me (perhaps by The issues involved in Robert No­ living off its benefits. As I said in my es­ hiring a private party to bring it to me zick's rent dispute, raised by Ethan o. say, I have observed that many individ­ via private aircraft)? Waters, were anticipated by the 19th uals who become state employees Tibor Machan century libertarian lawyer Lysander gradually lose their anti-statist fervor. I Auburn, Ala. Spooner. am delighted that Dr Machan's fervor 16 Liberty stitution. Waters argues that the Con­ Waters Supports Rapel ~d the state's rules and got away with stitution would be a form of contract if What Mr Waters has done, ulti­ It. To the "utilitarian" libertarian re­ all property owners had agreed to it. mately is provide a libertarian justifi­ proach proposed by Waters, that our As Spooner explained, regardless cation for rape. The distinction be­ rapist had contravened his "own of whether a constitution is agreed to tween rape and making love is avowed principles," our rapist could by all, it is different from a contract. coercion versus contract-which Wa­ respond, "Hey, I got what I was after." Contracts do not allow individuals to ters acknowledges "makes all the dif­ As could Robert Nozick, real or hypo­ give away their inalienable rights. Un­ ferenc~ thetical. like constitutions, contracts do not in the world." But we can hy­ potheSIze that the victim might have Victor Milan give open-ended, blank check authori­ consented, and afterwards falsely Albuquerque, N. M. ty to any person or group over another. made the accusation- and, unlike Each person always remains the moral Waters' hypotheticals, that has actual­ authority over his or her life. False Analogy ly happened, however rarely. If we fol­ For example, five people cannot Nozick's simple use of government low his argument that we need not sign a blank check contract which roads is not wrong because, as Rand "demonstrate that such a contract could allow a majority to vote to appro­ might have put it, he would not be does exist, only that it can exist in a priate the house of one of the five "initiating, advocating or expanding" way consistent with libertarian mora­ without consent. For a constitution to Welfare Statism. Nozick is forced to listic principles," the fact of coercion is be a contract, it must specify the limits participate in a "market for road rendered irrelevant-as Waters would upon obligations of citizens and gov­ services" that is hopelessly distorted render it with the Nozick affair. Our ernments to each other. (obliterated) by the state. His walking victim is really screwed. ~aters is wrong for apologizing for or driving on them has absolutely no If a libertarian rapes a woman, and NOZICk. There are grey areas for liber­ influence on whether the state will then convinces a jury to acquit him on tarians living in a non-libertarian maintain or expand the road system the grounds that she "asked for it" world. But the issues raised by Waters (both financed by increased robbery then clearly he's "simply a free m;n aren't among them! of citizens). acting in his own self-interest" to the Clifford F. Thies Now, say Nozick owns an out-of- same extent as Nozick: he manipulat- Baltimore, Md. "" continued next page

into freely by individual land owners, the issue. But that issue is not relevant in which for valuable consideration to the hypothesis. Responds they transfer title to their land to a cor~ The hypothetical contract does not poration, and agree to joint control of ~ive any such authority to the corpora­ (and the· fervor of the "others" he the land. tIon, any more than any other corpo­ cites) is intact. I am inclined to think The fact that as a consequence of rate contract does. The hypothetical that Dr Machan's skill as a philoso­ this contract, an individual loses the contract gives the corporation control pher and teacher is such that his em­ nominal title to his land for failure to over the land given to it by the land­ ployment by the state is a purely acci­ pay various fees (called "taxes") or for owners and provides for a way to ad­ dental result of the state's oligopoly of failing to follow conditions about how minister that land and its use and to education, and thus does not consti­ he uses the land, provided for in the adjudicate disputes among its users, tute "living off state benefits." contract, does not constitute a case of plus a provision to amend the contract On the other hand, how he can initiation of force. His loss is analogous in the future if the need is felt. The in­ equate mailing letters or driving one's to the loss of use of an apartment for dividuals who live on the land that is car with "living off the state's benefits" failing to pay the rent or for for violat­ controlled by the corporation in the I do not know. Most people who use ing restrictions on the use of the apart­ hypothesis remain their own moral au­ the state postal monopoly and road ment that are specified in the lease. thority. The only actions the contract monopoly use them because they are Mr Paulsen's claim that I "attack covers are those that relate directly to the only sensible and available means Ms Rand" is just plain silly. I respect­ its land and to the behavior of those of communication and travel. fully note that she is virtually the only who lease land from the corporation. Of course, I did argue that the libertarian moralist to address the is­ Victor Milan suggests that I have moralistic libertarian who consistently sue, summarize her views and then ex­ follows the logic of his position must inadvertently made a case for rape. He plain why I disagree with them. Why condemn all individuals who accept overlooks a very important distinction. Mr Paulsen would see this as an "at­ state benefits. But I hope that it is Making love without coercion is not tack" is a mystery to me. abundantly clear that I am not a mor­ rape, but rent control without coercion (as in my hypothesis) is still rent con­ alistic libertarian. Clifford Thies argues that the hy­ pothetical contract is not a contract at trol. The logic of the moralistic libertar­ Randy Paulsen argues that the hy­ all, because it confers "open-ended, ian position leads to support for gov­ pothetical contract could exist only in blank check authority" to the corpora­ ernment interference with all aspects an environment in which "the accepta­ tion. of people's lives, provided that inter­ bility of initiated force" must exist. I am not convinced that any agree­ ference is the result of contract, no I haven't the vaguest idea where ment that gives ''blank check" author­ matter how distant. he comes up with this notion. The con­ ity is ipso facto not a valid contract, tract in my hypothesis was entered "" continued next page whatever Spooner may have said on, Liberty 17 lord? Contrary to the author's insinua­ appears to lump me in the "moralistic" Readers on Waters tions, it is not just a "disagreement" libertarian camp on the basis of my cri­ -+ continued from previous page when somebody sticks a gun in your tique of Robert Nozick's actions. face. If the story about 'Nozick is true Readers are welcome to check for the-way plot of land with no access to (and I have not read about it anywhere themselves my Individual Liberty cri­ a main road, but he now wants a else), he is a thief. tique of Nozick. >, l make not' a single paved road to his property. He has two Is being opposed to people stick­ moralistic statement in the whole choices, either... ing guns in your face and stealing your thing! Like Waters, I point out that 1) pay for the road himself or build property a religion? I think it has more Nozick acted against his own avowed it in partnership with other property to do with wanting to keep what one principles, and analyze how this activi­ owners between his plot of land and has invested time and effort in creat,.. ty harms the movement for liberty: the main road, by whatever voluntary ing. Perhaps people were, especially "How can we keep our credibility if bargain he can work out (Good!)...or; angry because Nozick represented our spokesmen themselves contradict 2) lobby the government to "pro­ himself as a libertarian. their own vaunted 'principles'?" Be­ vide" him with "decent" access­ Here's the goodnews. The Su­ cause we' have accepted the descrip­ meaning rob'more money from the preme Court, in a decision in the' 10 tion of Nozick as a "libertarian," ac­ populace to finance the new road, June 1987 Los Angeles Times, deter­ tions like Nozick's make' it harder for and, if the other land owners are un­ mined that property owners must be other libertarians to successfully advo­ cooperative, then rob enough land paid compensation if zoning boards or cate freedom" from them to make way for it (Bad!). other agencies impose rules that pre­ My article didn't condemn Nozick This example, not simply "walking vent or drastically,restrict them from anywhere. I deliberately avoided con­ or driving on government roads," is a developing their land. this applies to demnatory language. But the article proper analogy to the real Nozick and rent controls. So, I would like to sug­ the Rent Board. does express my deep disappoint­ gest that Nozick's landlord sue the ment at the spectacle of a famous fel­ Like the example, Real Nozick was rent control board for compensation. low libertarian' opening'himself up to forced to participate in a rental mar­ And I hope the rent control board, to the sort of ridicule William Tucker ket that was very distorted by the recover their payment, will sue the provided. As a particle-theory physi- state, and like the example, it was still pants off the son-of-a-bitch Nozick! possible for Nozick to participate in a Sandy Shaw voluntary manner, without the expan­ Los Angeles, Calif. sion of state intervention. He demon­ Waters Responds... strated this by his first negotiations -+ continued from previous page and lease, corresponding to choice 1. Rand's Name Invoked Falsely Making love. without coercion is Nozick's lobbying the Rent Board af­ There are two aspects to Nozick's fine. Governmental control over all as­ ter the second lease is precisely anala­ crime: 1) he "screwed" the landlord, pects of our lives is not. And the inabil­ gous to choice 2. That is, Nozick's ac­ and 2) he used the state to do it. ity of moralistic libertarianism to op­ tions directly resulted in another Waters emphasizes the second pose that system of governmental increment of force being added to the aspect, concluding in a slippery-slope control is one of the reasons I have se­ situation. This action is of a complete­ argument "that it is no more wrong to rious doubts about moralistic libertari­ ly different character than Nozick use the state to 'screw your landlord' anism. walking or driving on government (or otherwise coerce your fellow man) roads. than it is to walk on public sidewalks." Sam Deasy ignores the argument The outrage really was justified. He even invokes Ayn Rand to sup­ I make. Instead, he cites Ayn Rand's Sam Deasy port his conclusion. If she were alive ethical dicta, points,out that both the Ephrata, Wash. today (hypothetical Rand?) would any­ real Nozick and a hypothetical Nozick one want to be in the same room with of his own invention had the opportu­ The Contract is Not Valid: II her when she heard how she was being nity to act in accordance with Rand's I see one major problem in Wa­ used? rules, and that the real Nozick, by fail­ ters' hypothetical contract: neither hy­ I should think that most libertari­ ing to obey Rand's rules, was wrong. I pothetical Nozick nor his hypothetical ans are outraged more by the first as­ can't really disagree with any of this, landlord ever signed, the hypothetical pect of Nozick's lack of integrity. I am. but I fail to" see its relevance to the ar­ contract. Indeed, neither was even Not only as a libertarian, but also as a gument that I. made. alive when it was signed. Therefore person who reveres the commitment He also asserts that his hypothesis they cannot be bound by it. to truth and integrity displayed by is more appropriate than my example Russell Wingate most philosophers, I am disappointed of "walking or driving on government Chicago, Illinois by the philosopher who "screwed his roads." He is comparing apples to or­ landlord." anges: my, reference to roads is not Waste of Space Jim Metheny made in the context of any hypothesis, but as an element in the conclusion of Come on. Did four pages of Liberty Springdale, Ark. a much more complicated argument. really have to be devoted to an analy­ The situation I hypothesized was sis' of whether it is reasonable to re­ Nozick Betrayed Me, identical in all respects to the actual spond with anger to somebody using but I'm No Moralistl case exceptone: the state by which Mr rent control lavvs to rip off his land- I am amused that Ethan Waters Nozick sought to exploit his landlord 18 Liberty cist, wouldn't you feel at all puzzled­ has forcible evicted its owners. It while statist societies can be, and tend yes, even betrayed-if you suddenly would, however, be wrong to inform on to be, worse. discovered one of your longtime co­ the owners in order to get them evict­ So, yes, some libertarians seem to researchers lecturing on "Waves as ed. (I'm assuming that one is "inform­ think that morality begins and ends the Future of Physics"? It's not a pecu­ ing" in a matter which is merely ille­ with libertarianism. Not so. But admit­ liarly "religious" sentiment, it's a hu­ gal, not morally wrong.) ting this does not imply that the utili­ man reaction. This brings us to Waters' point tarian approach is the right one. It Jorge Amador that we can fancifully construct a liber­ does mean that libertarianism is just Forest Grove, Penn. tarian society in which a theoretical one aspect of morality. The fact that Nozick could use arbitration to force a utilitarian arguments for libertarian­ Nozick Made His Point? theoretical Segal to change their ism seem so compelling is simply an agreement. Interesting. But, to me, instance of the general truth that the Nozick actually had to initiate an this just points out that some unethi­ moral thing to do and the enlightened action (going to the Rent Control cal actions would be legal in a libertar­ self-interested thing to do are so often Board) with the intention, and the re­ ian society. Yes, that's very true. Some one and the same. But it is both easier sult, of paying less than he had al­ immoral actions, too. Just because a and more inspiring to concentrate on ready agreed to pay. The action of go­ society is libertarian is no guarantee morality first. ing to an outside arbritor in order to that that society is necessarily just, ra­ Is it possible that Nozick. was break one's own agreement, for the tional, or compassionate, or even mo­ forcefully making a political point, that purpose of financial gain, is, it seems ral. I think that many libertarians of the absurdity of rent control, to his to me, in and of itself morally wrong. (I falsely believe that "libertarian" liberal colleague? A kind of "You don't mean to sound self-righteous equals "good," and that's where the asked for it you got it" tit for tat? I here; there are lots of degrees of religious quality to their outrage wouldn't put it past him. And I must "wrongness," and this one is a mild comes from. The world is a lot more admit, I would look on it much differ­ "sin" indeed.) The distinction I'm try­ complex than that. I would make the ently if that were the case. I wonder ing to make might be clearer in an more modest claim that a libertarian what that says about my morality? analogy: it would not be morally wrong society would be as good, wise, moral, James McEwan to move into a house after the state etc. as the individuals who make it up, Lakeville, Conn.

had its origin in contract rather than co­ held with great enthusiasm on faith as her. I am not sure how Rand would ercion. Since that distinction was pre­ part of a more or less coherent world react to my quoting her; she may in cisely the difference I addressed, the view might be characterized as "relig­ fact be quite angry. But my quotation hypothesis was precisely appropriate. ious" rather than "scientific," and that and summary of her views was accu­ Russell Wingate's argument that the belief in the nonaggression "axi­ rate, and I continue to admire the way the hypothetical contract cannot be om" which characterizes most of the she (alone among libertarians, to my binding on Nozick and his landlord attacks on Nozick thus qualifies as a knowledge) addressed the problem. because they did not sign it also miss­ "religious" belief. I am grateful to Jorge Amador for es the mark. On the other hand, I think equat­ correcting any misimpression I may In both practice and common ing Nozick's action with "sticking guns have left by quoting verbatim his reac­ sense, contracts frequently bind non­ in your face" is an oversimplification tion to Nozick's "crime," which I signers. Consider what happens when of the issue, all too frequently typical thought had the flavor of an ingenu­ the owner of a leased building dies. of those who hold the nonaggression ous bride spurned at the altar. My Does his heir have the right to cancel axiom as a panaceatic absolute. apologies. the leases with all tenants on grounds Jim Metheny quotes me as writ­ The distinction James McEwan that "he did not sign" the rental con­ ing that "it is no more wrong to use the makes between passive and active tract? If the leaseholder dies, does his state to 'screw your landlord' (or other­ participation in state activities seems heir have the right to get out of the wise coerce your fellow man) than it is sensible to me, although I cannot see lease? to walk on public sidewalks." This is how this distinction can be inferred Occasionally a lease. will have a about as blatant an example of con­ from the nonaggression axiom.) Like­ specific provision allowing a right to text dropping as I can imagine. The wise, I appreciate Mr McEwan's cancel in the event of the death of the sentence in question actually states: thoughts on the limits of libertarian lessor or leaseholder. But in the ab­ "If it can be ineluctably proven that morality. sence of such a provision, the heirs 'no man has the right to initiate the I suspect Mr McEwan shares some must honor the terms of the contract. use of physical force against others' of my concerns with the implications Even heirs that didn't sign the con­ and that coercion is universally oppro­ of the nonaggression axiom. tract. Sandy Shaw, on the other hand, brious, then "it is no more wrong to Mr McEwan's fanciful suggestion completely missed the point of my es­ use the state to 'screw your landlord' that perhaps Nozick was just kidding, say. She is content to denounce me for (or otherwise coerce your fellow man) that he was only trying to "screw his characterizing opposition to "people than it is to walk on public sidewalks." landlord" to make a point, is charm­ sticking guns in your face" as a relig­ He also accuses me of taking the ing. Hope springs eternal in the liber­ ious view and to argue that Liberty name of Ayn Rand in vain, wondering tarian breast. ought not publish writing like mine. how she would react to my "using" I suppose that any belief that is Liberty 19 Essay

Free Speech and The Future of Medicine by Sandy Shaw & Durk Pearson

The purpose of the First Amendment was not simply to protect the rights of citizens to discuss the weather; no protection from government action was needed for that. It was needed to protect the rights of Americans to talk about "unpopular" subjects or subjects where there were strongly felt differences of opinion. That includes not only politics, but the effects of drugs, food, and the compo­ The label of a vitamin C supple­ limitations to the information you can nent nutrients of foods upon health. ment is so heavily regulated, you can provide about drugs, nutrient supple­ The freedom. to make truthful state­ hardly say more than that it prevents ments, and even foods (which are in­ ments about legal biomedical prod­ scurvy. If you mention, for example, creasingly being recognized as impor­ ucts has been severely curtailed d ur­ that it stimulates healing (recognized tant to the maintenance of health) ing this century, despite the existence since at least the early 1940's), you may beeause the FDA has been given the of the First Amendment. be accused of selling a drug, which re­ unconstitutional power by Congress to Today, much health information quires FDA approval taking 8-10 years forbid manufacturers and sellers of vi­ and scientific research is funded and, and an average of $125 million dollars. tamins and other nutrients from saying hence directed, controlled, and made You cannot say on a bottle of a anything, no matter how truthful, that public by the government. Political fac­ health food store niacin supplement the FDA has not approved about these tors, rather than matters of scientific "Ask your doctor about niacin" even products. Scientific research is running fact, often determine what work shall though niacin is being prescribed by years ahead of the FDA's censorship. be done, when results are announced, doctors to reduce serum lipids, 1 for For example, low dose phenylala­ and in what context they are placed. which purpose it was declared a drug nine (100 to 500 mg. per day) has been The free speech rights of commer­ of choice by the Expert Comittee on found to be effective in relieving de­ cial speech is on a par with political Coronary Drugs of the American pression in many depressed individu­ speech. Why? Because, in the market­ Heart Association, and has been ap­ als in clinical trials. 2 Yet, an American place, in a real sense, you vote every proved for this purpose by the FDA as could not include a citation to the time you purchase company A's prod­ a prescription drug. Once again, pro­ scientific publicaton containing this in­ uct rather than company B's or Z's. viding information turns a nutrient into formation about the use of phenylala­ There are ideologies in commercial a drug. And then the FDA prohibits nine for the widespread problem of de­ speech just as in overtly political your saying anything about it except pression on the label of a speech. Free expression of these ideol­ what they consider to be approprate. phenylalanine supplement oradver­ ogies, values, or economic and scientif­ What happened to freedom of speech tisement or company statement about ic worldviews has a great deal to do here? such a product. Why? Because the with whether the marketplace is to be a Early in this century, people be­ FDA says that would make the essen­ place of informed freedom of choice or came so concerned about phony tial nutrient amino acid phenylalanine of government imposed censorship of claims for poorly formulated, even an illegal unapproved drug. To obtain truthful statements about products. dangerous, pharmaceuticals that Con­ its approval to market phenylalanine As biomedical research scientists gress took from drug manufacturers as a drug would require the spending familiar with legal restrictions on ad­ much of their freedom of speech. Not of $125 million dollars and take 8..10 vertising copy for pharmaceuticals, only was the freedom of speech of years, if approval were forthcoming at heavily regulated products such as to­ fraudulent drug manufacturers taken all. Even then, no patent could be ob­ bacco, and in quasi-medical areas away, but so was the freedom of tained for phenylalanine, so that there such as foods and nutrient supple­ speech of the majority of drug manu­ would be no way to recover these huge ments, we realize how fully this nation facturers who were making scientifical­ approval costs by having a market has departed from the freedom of ly justified claims. It was a case of a monopoly for the period of time grant­ speech supposedly "guaranteed" in cure much worse than the disease. ed in a patent. the Constitution. Today there are very strict legal The FDA's regulations on new

20 Libert"tl.:J drugs are also a severe barrier to the after two years or so. Deprenyl is wide­ when they were introduced and many widespread use of new medical tech­ ly used in Europe (and was first used in people tried to get them banned. 9 nologies. These restrictions, based humans as early as 1967) to restore the Some people still disapprove of them. upon the idea of reducing the risks to responsiveness of Parkinson's disease There are certain health risks associat­ drug consumers, are so stringent that patients to L-Dopa. In fact, patients re­ ed with birth control pills, too, though many valuable drugs have been used ceiving standard therapy (L-Dopa and research has recently produced ver­ by millions of people in Europe for ten a decarboxylase inhibitor) plus depre­ sions that are much safer than preg­ years or more before they are permit­ nyl lived 25% longer than patients re­ nancy. 10 ted for use by sicI< people in the U.S. ceiving only the standard therapy Another lethal example of govern­ For example, the FDA's infamous beta available in the U.S.6 As people age, ment regulatory ineptitude is its han­ blocker approval delay resulted in the the dopaminergic activity in the brain dling of a product in common use for otherwise avoidable deaths thousands of years­ of literally hundreds of thou- tobacco-which has been sands of hypertensive Ameri­ associated with some se- cans. While waiting for the Freedom of speech is a necessary vere health risks (e.g., approval that may never prerequisite for a free market, lung cancer, cardiovascu­ come, many people die. The lar disease). New research costs of unnecessary illness SInce no one can buy or sell your is discovering how to and death during these long product if they don't know it is markedly reduce those delays are not included in risks. For example, in- the FDA'sanalysis. 3 Phar­ there or what it does. creased dietary beta caro­ maceutical companies are tene reduced the risk of forbidden to supply informa- lung cancer to smokers to tion on the proposed new the same level as non- drug to physicians, including biblio­ declines sharply. In one critical area of smokers who get below average graphic data. In most cases, even ter­ the brain, dopaminergic activity de­ amounts of beta carotene in a 19 year minally ill patients are denied access clines by about 13% for every decade study of 2000 men.n In Japan recently, to experimental drugs. past 45 years of age. 7 Researchers now patents were granted for treatments An FDA spokesman admitted in a suggest that deprenyl be taken as a for tobacco products that remove the recent interview that they did not want prophylactic against this natural loss of harmful carbon monoxide and ben­ widespread distribution of experimen­ dopaminergic activity which can even­ zoalphapyrene (tars) from cigarette tal drugs to AIDS victims because, tually result in Parkinson's disease. 8 smoke. then, how could they do a placebo con­ Yet, Parkinson's disease patients in But in America, politicized bureau­ trolled study, since nobody would take this country are doomed to a shorter cratic government agencies, not a placebo! 4 .Please re-read that last average lifespan and greater disability scientists, control creation of safer sentence, so that you fully realize the from their disease because the FDA tobacco products. Tobacco companies extent to which a well intended govern­ will not permit marketing here of a rel­ are not permitted to make health ment agency can end up looking like a atively safe drug used by Europeans claims for safer tobacco (such as Nazi concentration· camp "medical ex­ for close to 20 years! A drug company smokeless varieties). It is no surprise perimentation" unit! However, it attempting to offer the drug would therefore that tobacco companies do should be remembered that the FDA have to go through the FDA's usual not invest a great deal to develop such has not chosen the laws it enforces; approval process and, while spending products. that responsibility lies with a Congress huge sums of money, they would be But the FDA cannot eliminate all comprised almost entirely of lawyers forbidden to tell the public about the risks. No product is perfectly safe. Peo­ having negligible knowledge of drug. Unfortunately for American Par­ ple persist in cutting themselves with science! kinson patients and their friends and knives, drowning in swimming pools, Of the 72 new drugs approved by families (to say nothing of the overbur­ choking to death on chicken pie, crash­ the FDA during the period of 1984­ dened taxpayers), the small British ing in automobiles, falling down roller 1986, 55 (76%) were already approved pharmaceutical company that devel­ skating, crashing in airplanes, slipping or available in one or J110re major for­ oped deprenyl could never have af­ in bathtubs, poisoning themselves by eign markets and more than half of forded the astronomical approval taking too much of common house­ those 55 drugs were available in at costs, and the patents have now ex­ hold drugs... But the FDA costs the least four countries at the time of FDA pired. American public billions of dollars and approval. The average lag between hundreds of thousands of lives in its fu­ first foreign marketing and FDA Lethal Regulation tile attempt to eliminate risk. approval.for the 55 products was 6.2 Freedom of speech is a necessary Recent reports that the FDA is at­ years. 5 prerequisite for a free market, since no tempting to streamline its procedures A current example of the FDA's one can buy or sell your product if they are, so far, little more than talk. Power­ high costs to Americans with serious don't know it is there or what it does. ful politicians (such as Rep. Henry disease is the unavailability of the Par­ There are always going to be contro­ Waxman) oppose attempts to make kinson's disease drug, deprenyl. A pa­ versial products which some people experimental drugs available to peo­ tient with Parkinson's disease typically wish to use and others don't. Birth con­ ple with terminal or serious illnesses. becomes refractory to L-Dopa therapy trol pills were extremely controversial There is practically no discussion of re- Liberty 21 storing free speech to the health mar­ ic: The Story of Penicillin, "So long as a research men the great credit due ket. medical discovery remains in the la­ them, we often forget to pay tribute to The government now controls pro­ boratory stage it is of little value to any­ the manufacturers who make the fruits vision of much health advice and di­ one. It cures no disease, saves no lives. of this discovery available to all of rects much scientific research. Mod­ It is a scientific curio. It is only when a us." 13 ern politics has a much broader scope manufacturing company starts pro­ Regulations can never cure than it did back in the days of the ducing the material in large quantity anybody of disease. The FDA's Founding Fathers. The government that the product can find its way into approval delays have killed more has grown, and vigilance is needed the stock rooms of hospitals and the Americans than have all wars since the now more than ever. However, most handbags of physicians....In giving our Civil War. 0 people do not notice government ac­ tions that they think only affect other people. Freedom of commercial speech is felt to be of concern to rela­ tively few people and it's problems of Endnotes little interest to the general public, which does not know what it is not al­ lowed to hear. The future of medicine must not be limited to research; it must also include commercial availa­ bility of both information and products 1 Charman, et. al., "Nicotinic Acid jn the 5 Data from the Pharmaceutical Manufac­ based on that information. Treatment of Hypercholesterolemia," l. turers Assoc. Informed freedom of choice makes Angiology (Jan. 1973); Miettinen et. al., 6 Birkrnayer e.t al., "Increased Life Expec­ sense to us. 12 The Constitution didn't Acta Med. Scand. 186:247-53 (1961); Coro­ tancy Resulting from Addition of Deprenyl give the government the power to dic­ nary Drug Project, "Clofibrate and Niacin to Madopar treatment in Parkinson's Dis­ tate to Americans what health regimen in Coronary Heart Disease," I. Am. Med. ease: A Long Term Study," I. Neural they must follow. The clear disclosure Soc. 231:360-381 (1975); American Heart Transm. 64:113-127 (1985). of risk on labels of drugs can enable Association Special Report No. 72-204-A 7, 8 Knoll, "The Facilitation of Dopaminergic people to make informed choices. The (1984) on "Recommendations for Treatment Activity in the Aged Brain by Deprenyl. A disclosure of risk should reduce the le­ of Hyperlipidemia in Adults"; "Effects on Proposal for a Strategy to Improve the gal liability of drug manufacturers. Plasma Lipids and Lipoproteins," page 839 Quality of Ufe in Senescence," Mech. Age. Such a policy is entirely consistent with in Goodman and Gilman's The Pharmaco­ and Dev. 30:109-122 (1985). freedom of speech. And it serves logical Basis of Therapeutics, Sixth Edi­ 9 Carl Djerassi, The Politics of Contracep­ people's health needs better, save tion (MacMillan, 1980). tion (Stanford Alumni Assoc., 1979). (An millions of lives, and billions of tax dol­ 2 Fischer, Heller, Nachon, Spatz, "Therapy eye-opening, fascinating history of the lars. (Today, ironically, the disclosure of Depression by Phenylalanine," Arz­ birth control pill controversy written by of risk often increases a manufactur­ neim.-Forsch. 25(1):132 (1975); Beckmann, one of the early pioneers in birth control er's legal liability [by alerting people to Athen, Olteanu, Zimmer, "DL­ pill research.) potential problems], thus discouraging Phenylalanine versus Imipramine: A Dou­ 10 Rosenberg, et. al., "Epithelial Ovarian companies from supplying the ble-Blind Controlled Study," Arch. Psy­ Cancer and Combination Oral Contracep­ information.) chiat. Nervenkr. 227:49- 58 (1979); Borison, tives," lAMA 247:3210 (18 June 1982); Hul­ We suggest that the FDA should Maple, Havdala, Diamond, "Metabolism ka et. al., "Protection Against Endometrial become an advisory agency, pending of an Amino Acid with Antidepressant Carcinoma by Combination-Product Oral its abolition, and that the labels of Properties," Res. Commun. Chem. Pathol. Contraceptives," lAMA 247:475 (22/29 Jan­ drugs, approved or unapproved, be Pharmacol. 21 (2): 363-366 (1978) uary 1982); Bush et. al., "Estrogen Use and divided in half. Allow the FDA one half 3 For a complete analysis of the huge costs All-Cause Mortality," lAMA 249(7):903 of the label to say whatever it wants. (in terms of premature deaths) of FDA's (18 Feb. 1983). But the manufacturer gets the other delays in drug approvals (which are not 11 An example is Jpn Kokkai Tokkyo Koho JP half and can say what it wants. And included in the FDA's analyses), see Peltz­ 60,248,160, (CL. A24BI5/30), 7 Dec. 1985, may the best science win! man, "An Evaluation of Consumer Protec­ "Tobacco additive to reduce harmful com­ Government agencies, especially tion Legislation: the 1962 Drug Amend­ pound formation." the FDA, have an entrenched deliber­ ments," I. Political Econ., pp. 1049-91 12 For a concrete "informed freedom of choice" ate policy of reducing the flow of infor­ (Sept./Oct. 1973); Landau et al, Regulating proposal, see Appendix E in Durk Pearson mation to potential users of drugs, New Drugs, (Univ. of Chicago Center for & Sandy Shaw, Life Extension, a Practial foods, and nutrients, as well as severely Policy Study, 1973); Dealing With Drugs, Scientific Approach (Warner Books, 1982). curtailing the availability of new drugs. edited by Ronald Hamowy (Pacific Re­ Dr. Milton Friedman, Nobel laureate in ec­ In the future, it will be as important to search Institute for Public Policy, 1987). onomics, recently made our day when he put a stop to this censorship as it will 4 Dale H. Gieringer, "Compassion vs. Con­ told us that he really liked our analysis. be to produce new biomedical technol­ trol: FDA Investigational-Drug Regula­ 11 Susan G. Hadden, Read the Label (West­ ogy because new therapies will do no tion," CATD Institute Policy Analysis No. view Press/AAAS, 1986). good until they are applied to real peo­ 72, May 20, 1986,224 Second St. SE, Wash­ 12 J. D. Ratcliff,Yellow Magic: The Story of ple with real health problems. ington, DC 20003 (copy of report available Penicillin, (Random House, 1945). As J. D. Ratcliff said in Yellow Mag- for $2 from the CATO Institute). 22 Liberty Game Versus Game

"Philosophy is like a game, sir. You are right." I'Tanned and hard, the young man's face reminded the professor more of soldiering than philosophy. 1/And, yes, in some important ways it resembles the game of chess. But, in another way-in a way you've spent half your life refusing to face­ philosophy is more like Russian roulette." A Like the face of a bronze statue now, it waited-passive in the fact of its cold strength. story A beautiful face, the professor thought, beautiful in the same austere way that rnathematics is. So certain. And so certainly wrong. Silence continued for some minutes before the professor remembered it was his by turn to speak. No, he thought, I am not, for a change, being accorded a respectful si­ lence. Not in the sense of the meek before the wise. More, this silence is like-is like Raul the kind of respect one is accorded after being challenged to a duel. Very well, he thought-with an inward twinkle, as he parted his dry lips to Santana speak-a duel. I will choose my weapon. ''Having some knowledge of your political convictions, young man, I assume you are not proposing that the Russians invented philosophy." "No, sir." White teeth set behind dark face made the grin vivid. "But I'm afraid the Russians do understand the practical importance of philosophy-even though they are damned sure wrong in their premises." "Nothing is for sure-damned or not." "Are you sure of that, sir?" "Young man, you are the first person to ever ask me that question." "And the answer is?" "A question no one ever asks doesn't merit an answer." "Well, I shan't waste any more of your time, sir. Thank you for granting me the interview." Grabbing his brief case, he stood and extended his hand. "But you said you wanted to discuss something about politics. A movement of some kind. A political demonstration. Isn't that what you said?" "I'm afraid, sir, you would not want to get mixed up in this. It is an unpopular idea." "But I've spent my life advocating unpopular ideas. World peace. Free love. 'Nhy, many books you see in this study are banned." "Yes, and the other half of your life you've spent ignoring unpopular questions. Philosophical questions." "One can afford to ignore those, because-" "I know. I know, sir. 'Because philosophy is just a game of chess.' And, if you re­ rnember, that is where I came in. All right," the young man sighed, putting down his brief case. "For the sake of argument we'll forget philosophy. May I speak sir, to the This story originally appeared in the March, 1966 issue of Innovator. political half of your personality?" Liberty 23 Chuckling at the impatience of the young, the professor other?" nodded. "The half of me that would rather be Red than dead "Oh my." A resigned sigh issued from the professor; he is now ready to talk politics with the man who would rather be spoke in a voice that seemed tired and old. "Contradiction dead than have a Red in the same hemisphere with him. You is not a political word. It is a philosophical word. And the may proceed." capitol of a nation is not an ivory tower." ''You misunderstand my position, sir. I don't think those "Is that your answer, sir?" are the alternatives." "That, I feel, is the only answer I can give you." "From what I gather of your philosophy, though-in which Picking up his brief case again, he turned and walked you maintain politics has a place-everything must be either to the door, opened it, stepped out-and closed the door one thing or another." quietly behind him. ''Yes. In this case, not surrender or death. Either defeat­ That, thought the professor, was the quality of his face. or victory." The quality of a closed door. A door locked against com­ "No, son. Victory is impossible in an atomic age." promise. "Impossible for the West, but possible for the Reds. I see, One thing still puzzled the professor. Something he sir. We are talking in circles again." saw. And did not understand. Or had forgotten many "Perhaps we can avoid all this if we come to the point. years ago. The meaning of those two words: Shah Mat! An What was this unpopular political action for which you came Arabic phrase. Ah! Now he remembered. Checkmate! The to solicit my support? Nothing as violent as your previous en­ root of that was Shah Mat! Meaning: The King is Dead! deavor I trust." The professor frowned as he emphasized Well, the professor thought, I certainly am having a each word of his last sentence. difficult time keeping from admiring that young man. So "No, sir. In fact, this is entirely a matter of passive resis­ certain of himself! And so certainly wrong. Nobody will tance, which is why I came to you. Your experience in the join his crusade. Nobody feels the way he does about technique would be of great value." politics. Opening his brief case, the young man put a pamphlet on Relaxing in his comfortable chair, he thought: Nobody the professor's desk. "I want you to organize a passive rebel­ would have expected a young man like that-a man with lion against income taxes in this country. Next year, I want to the face of soldier, the mind of a philosopher, and the persuade every citizen opposed to compulsory taxation-to hand of an artist-nobody in the world would have expect­ refuse to pay!" ed him, of all people, to smuggle himself into a Latin­ The pamphlet was entitled: Shah Mat! American country, past the dictator's own guards and- "What is Shah Mat?" As if the small, white booklet were a A loud knock broke into his thoughts. hot iron-the professor drew back. Opening the door, the professor saw a uniformed po- "The name of my movement, sir." liceman. And a search warrant. . Again came the silence of respect accorded upon a chal­ "Sorry to disturb you, professor. We just got a report lenge. that you are keeping obscene reading material in your No-thought the professor. Not this time. study, and I've been assigned to check it out." "Why," the professor said, softly, with a strange kind of "Some of the world's greatest literature is currently anger turned more against himself than against the level, considered obscene, officer. And, to save us both embar­ brown eyes meeting his gaze, "you are morally irresponsi­ rassment, I'll tell you now that I pride myself on having a ble!" good deal of great literature in this room that happens to "Not according to the morality that is mine, and should fall in that category. I do not, however, see how the con­ be yours, sir." A long, narrow hand fell on the pamphlet and tents of my library can be rightfully subjected to police lifted it off the desk into the brief case. A hand that reminded regulations. Good day, officer." the professor more of art than politics. "Tell me, sir, is it mo­ "I'm sorry, professor. You are under arrest." rally irresponsible to insist upon the abolition of force be­ "I refuse to be placed under arrest!" Returning to his tween nations?" chair the professor sat down and folded his arms. "It is not "Of course not." the concern of this--or any other-eommunity that I "Then please tell me why you think-if 'think' is the right choose to read whatever I wish to read!" word-that to insist upon the abolition of force by a nation ''Your attitude, professor, is morally irresponsible." against its own unarmed citizens is morally irresponsible. Is it The professor stared. Before him stood a man with the not the same issue? Are not the same principles involved? Is fine, impractical face of a philosopher, the mind of a mini­ it not a contradiction to uphold one view and damn the ster, and the hand... the hand rested on a gun. 0

Moving? Durk Pearson & Sandy Shaw's Be sure and leave a Paper Trail... Life Extension Newsletter Please notify us at least 4 weeks in advance. Be sure to include Box 92996, Los Angeles, CA 90009, $29.95/12 monthly both your old address (as it appears on your mailing label) and your new address, including your zip code. eight page issues. Send address changes to: If you are not 100% satisfied with your subscription, Durk & Sandy will refund 100% of the cost of your un­ Liberty, Circulation Department, sent issues. PO Box 1167, Port Townsend, WA 98368. Thank you. 24 Liberty The Crash of '87

Liberty interviews six leading libertarian-oriented market analysts: Douglas Casey, Adrian Day, Harry Browne, Mark Skousen, R. W. Bradford and Ron Paul, plus two of Liberty'S Editors: economist Murray Rothbard and social philosopher Karl Hess. What they say rnay surprise you.

On October 19, 1981', the Dow Jones Industrial Average fell 508 points. It was the largest siI1lgle day decline in history-amounting to some 22.6%. In an effort to put the dran1atic events of that day in perspective, Liberty surveyed the think­ ing of eight leading economists and m,arket analysts in early December, after the dust had settled.

Douglas Casey is author of Crisis Investing, the some in Europe. In the Orient, I think Hong Kong is the best best-selling investment advisory book of all time, as well as place to be. In Europe I think Switzerland is best. several other books. He is founder of the Eris Society, and Liberty: You mentioned cash. What specifically do you editor of Investing in Crisis,* a monthly investment advisory mean? Money market funds... T-bills... or greenbacks... letter. Mr Casey is also an editor of Liberty. Casey: T-bills or money market funds that invest exclusively Liberty: What caused the crash? in T-bills. And I would certainly have some greenback cash. Casey: The fact that stocks were bid much too high, they Although I am more confident than ever that the long run were bid up beyond all sight of reality~ They were selling at fate of the dollar is to vanish, to turn into toilet paper, in the historically high prices, relative to earnings, relative to book short run we could have a 1929 style deflation. value, relative to dividends. They were selling at 1929 levels. Liberty: Where is the stock market headed? Liberty: Do you think there were any external causes? The Casey: A lot of that will depend on what the government causes you list are basically internal causes... does next. My suspicion is that the Japanese market is going Casey: I discredit the theories that it was caused by com­ to crash next, and when it crashes it's going to make what puters, for example. If you believe it was computerized sell­ happened on Oct 19 seem trivial by comparison. Then you ing that crashed the market, then you have to believe it was will see real estate markets all over the world crash and the computerized buying that drove it up. stock market fall much further. What drove the market up was a huge expansion of the By the time it bottoms, the stock market will be far be­ money supply over the last five years, especially as a reac­ neath its fair value. If I was going to take a guess-and it's tion to the last recession. strictly a guess-I would say the Dow will fall to 500 or 600 by the time it ultimately bottoms. That's 500 or 600 in terms of Liberty: What do you think of the idea that the crisis was today's dollars. touched off by restrictive monetary policies by the Fed dur­ The U.S. dollar could collapse next, like in the 1982 movie ing the early part of this year? Rollover. That would be the perfect whipsaw: people have Casey: I think there is something to that. Stocks were driven been panicking out of stocks to get into cash... maybe next up to unreasonable levels and at that point it was just a ques­ they will panic out of cash and the dollar will be wiped out. tion what would touch off a decline. Of course, money makes Liberty: Where do you think interest rates are headed? the mare go: they restricted the money supply, that tended to put prices in reverse, then one thing led to another. Casey: I think in the short run the Fed will be able to drive in­ terest rates down. But in the long run if inflation is increasing, Liberty: What do you recommend to investors today? interest rates are going to have to follow. I think we will see Casey: I suggest they invest one third in gold coins, one massive corporate bankruptcies, especially among the cor­ third in gold stocks, and one third in cash. I suggest those porations that have done leveraged buyouts. assets be held partly in this country and partly abroad. We will see defaults on debt, so rather than predict the di­ Liberty: What foreign countries would you recommend? rection of interest rates, I am much more comfortable pre­ Casey: I would suggest holding some in the Orient and dicting that there will be a huge spread in quality among in­ terest rates. As people panic out of junk paper like Euro- It 1101 King St, Suite 400, Alexandria, VA 22314, $195/year (12 issues). Liberty 25 dollars and into T-bills, the difference in their interest rates Liberty: Then I guess you foresee a recession? may increase to 5% or more. The same is true of Treasury Casey: Oh! I see something much worse than a recession. A bonds versus junk bonds. recession is where the business cycle starts to climax, but the Liberty: Where do you think gold is going? government stimulates the thing to keep the ball rolling. A de­ Casey: I think it's going to go through·the roof, but not neces­ pression is something where it gets entirely out of hand, where sarily because of inflation. It will go through the roof because the chewing gum and bailing wire can't keep the rotten struc­ in a panic situation it is the only financial asset that is not si­ ture propped up any longer. multaneously somebody else's liability. Liberty: What do you see over the next couple years for the I think that if you buy gold and gold stocks you can make CPI rate? back whatever money you may have lost in the last few Casey: That's hard to figure. It's still unclear whether we will months, and more. get a devastating inflation due to a default of bonds, the clo­ Liberty: Why do you think that gold coin and bullion has out­ sure of banks, the further drop in the stock market, and the performed gold stocks collapse of real estate. by such a wide margin All these things could since the crash? "The Depression will be worse than even I make the dollar worth Casey: Gold stocks got more and the CPI could caught up in the stock thought it would be. A lot of yuppies will be actually decline. market mania on the grubbing for roots and berries in a few years." But that's a short run way up, and got caught phenomenon. In the in the downdraft on the long run I think the cost waydown. A lot of gold of living will go through stocks were sold just because there was a market for them, the roof, because the government will respond to these crises and people had to sell to generate cash to meet margin calls. by printing money. But gold stocks are going to come back soon, I think-I am not Liberty: What do you think would happen to gold in this short sure industrial stocks will for many years. term deflationary scenario that you consider to be a possibility? Liberty: What about taxes in the United States? Casey: I think gold will go up even during a deflation. The rea­ Casey: I think the U.s. government is dumb enough to raise son for that is that people will want an asset that cannot be de­ taxes at this point. faulted upon, that is completely liquid and negotiable, and that is private. Gold is not just an inflation hedge-gold is a Liberty: Do you have any feel about when we will see higher chaos hedge, a crisis hedge. And we will have plenty of crises taxes? and chaos, so I think gold will go up. Casey: No, I don't have any feeling on the timing, but I am Liberty: Do you see the crash as an isolated phenomenon that very confident that they will raise taxes. If they don't raise the won't seem important in a few years, or do you see it as part of income tax directly, they will get it through a value added tax a much broader crisis of the Western economies or the Ameri­ or something else. I don't have to tell you how counterproduc­ can economy? tiveand destructive that is. Casey: I think it's going to change the way people perceive Liberty: What do you think will happen to the budget deficit? things. It will change the social and political structure. In a way Casey: I think it will widen tremendously. it's a good thing that the crash happened, it will serve as a Liberty: Do you have a number that you think we will see warning to people to take this last opportunity to put their within the next 2 or 3 years? houses in order. Casey: It's pure conjecture right now, but I wouldn't be sur­ Liberty: How do you think you will describe the crash of '87 prised to see it at $300 to $500 billion dollars within the next 2 when you look back at it ten years from now? or 3 years. Tax receipts will go down, despite any forthcoming Casey: That's a good question... I don't know... I suspect it will tax increases, because as the economy craters income will fall mean the end of an era. I think a lot of yuppies will be grub­ much worse. bing for roots and berries in a few years. I think survivalism will come back in vogue. The going is really going to get tough. So­ ciety is much more urban than during the 1930s; people are much less self-sufficient. It has a lot further to fall. The government safety nets that everyone thinks will pre­ vent a depression are part of the cause of the depression and discouraging people from taking action to protect themselves. I think the depression will traumatize a whole generation. I think this thing will be terrifying. It will be worse than even I thought it was going to be. Liberty: Is there any good news here? Casey: Yes. The good news is that all the real wealth of the world is still going to be here. It's just going to change owner­ ship. And if you can keep your assets together over the next several yearsyou will have the opportunity to pick up assets at "Of course it will- it ends every Monday." prices that are the equivalent to prices in the 1930s. Liberty: What do you think of the notion that the crash marks 26 Liberty the end of a period of American economic dominance of the overvalued in terms of price/earnings ratio, or price to book world and that Americans are going to have to accustom value or the yield rate. Those that hold stocks should look for themselves to a long period of economic decline of the sort an opportunity to get out. that citizens of Britain experienced during the past 70 years? Liberty: Where should they be? Casey: I think a lot depends on what the government does, Day: I recommend investors go to three main areas. whether they really stomp on the country and institute a lot of The first is gold and other precious metals. I would buy gold welfare programs like Britain did. on price dips, followed by palladium, then platinum, and silver. I doubt they will abolish these welfare programs-\vhich Silver I think is more a short-term trading vehicle right now. It were largely responsible for Britain's collapse--voluntarily. offers greater potential for the short term investor. For the long But they may have to let them die because there is no wealth term, I think gold is far and away the primary metal to buy. to fund them. Secondly, I would be a very aggressive buyer of good quality, Adrian Day left his studies at the London School of Ec­ producing North American gold companies. I would also buy onomics in 1974 to offer his assistance to the libertarian revo­ some of the top quality, long life South Africans and Australi­ lutionaries in Abaca in the Bahamas. The revolution ultimate­ ans. I would avoid the short-life South Africans and the non­ ly failed, and Mr Day moved to the U.S 18 rllonths later. He is producing Australians. editor of Investment Analyst* and author of several books on And thirdly, I would begin to nibble a little bit at some of the personal investing. bargains available in good quality, undervalued, cash rich, blue chip companies in undervalued markets. I am looking Liberty: What caused the crash? not just for undervalued stocks, but also undervalued markets. Day: Fundamentally, the crash .was caused by the fact that Liberty: What is an example of such a stock? stocks were grossly overvalued. Of course, that doesn't explain why it happened exactly when itdid. Nor does it explain the Day: Hongkong & Shanghai Banking Corporation. It is selling severity of the crash. But it certainly explains why stocks came at less than ten times earnings, about 15% over book value, down. They were simply grossly overvalued. and yields about 6% cash and 12% stock dividends per year. All The restrictive money policy of the Fed earlier this year ac­ those are indications of fundamental value. And Hongkong & counts for the timing. Over the past several years, the Fed was Shanghai is very aggressive but still a very substantial and con­ very loose with the money supply. About April they started servative institution. tightening, or at least leveling off, the money supply. They con­ Liberty: You recommend some South African gold stocks. Are tinued this somewhat restrictive policy through October. As a you concerned about the morality of investing in firms in­ result of this tightening, interest rates moved up, which volved in South Africa's racial system? touched off the crash. Fundamentally, on a value basis, this Day: Yes I am. I am a morality investor. There are certain collapse could have come in March or April, May, June or July companies that I will not invest in, whose business revolves or, indeed, stocks could have continued to rise for another six around doing things that I morally object to. So I think it is a le­ months. gitimate issue. Liberty: What does the But I take a contrary crash mean to inves- view to most people tors? What are the con­ "I am a morality investor: there are compa­ about South Africa. I sequences for inves­ think investment in tors? nies that I will not invest in, whose business re­ South Africa is good for Day: The Dow today is volves around doing things I morally object to. the population, in that about where it was in But I think investment in South Africa is good it helps raise its stan­ January. So the only los­ dard of living. Not in­ ers are those who in­ for the population, in that it helps raise its vesting in South Africa vested this year. This standard of living. And many gold companies doesn't do the people has been a very salu­ any good at all. It only are amon(~ the most liberal elements in South hurts them. In addi­ tary warning for inves­ ' 'f tors. It demonstrated to Afrlca. tion, many of the gold investors-especially companies are among new investors who have the most liberal ele­ never really seen prices fall significantly-that prices can go ments in South Africa. In fact, Anglo-American, the largest down as well as up. The crash has awakened them to the fact mining house, has just issued about 15% of their total stock to that a sharp decline can happen. the black workers. Liberty: Do you think investors should be out of the stock Liberty: Where are interest rates headed? market right now? Day: Compared with historical levels, real interest rates in this Day: Yes. I am a value oriented investor. In the long run, I country are very high right now. (Real interest rates are the dif­ think things return to their true value. Things that are under­ ference between nominal rates and the rate of inflation.) Even valued have less risk and more potential than things that are so, on a risk/reward basis, investing in bonds doesn't look like overvalued. That is a pretty simplistic statement, but worth a good bet to me. bearing in mind. Right now, most U.S. stocks are clearly over­ As the dollar continues to lose value, I doubt foreign inves­ valued, not so much as three months ago, perhaps, but still tors will continue to pour money into our debt-particularly our government debt-simply to prop up a bankrupt govern­ ment. If they're losing 20% or 30% or 40% a year on their money "'Box 3217, Silver Spring, MD 20901, $49 per year (12 issues, plus special reports). Liberty 27 because of the decline of the dollar, it seems to me they are Day: To a large degree what will happen will be the result of not going to want to do that forever. So interest rates will have the government action. At the time of the crash, the Fed to rise to attract bond investors and stem the decline of the moved to lower interest rates and pump money into the sys­ dollar. (I say continue to rise because it seems to me that they tem. But in the last couple weeks, the money supply started bottomed in March or April, and we are now in a long term up­ coming down again. All I can say with certainty is that we have ward trend. This last month or two is only a temporary aberra­ huge fundamental misallocations in the economy that in the tion in that trend.) longer term are building up tremendous problems that cannot Liberty: What is your outlook for taxes? Will they go up? be staved off. Day: I get very depressed about taxes. I haven't seen lower Harry Browne is the author of several best-selling taxes during the last five years, personally, and I don't know books of investment advice, beginning with How You Can who has. Social security taxes continue to rise, other taxes Profit from the Coming Devaluation in 1971. His most recent keep on going up. Already to decrease the deficit, they're rais­ book of investment advice is How the Best Laid Investment ing taxes by $9 billion. I think Reagan should listen to Winston Plans Usually Go Wrong. He also publishes a monthly invest­ Churchill, who said, " There's no such thing as a good tax." All ment advisory letter Harry Browne's Special Reports.* His this talk about some taxes are good and some are bad is just book How I Found Freedom in an Unfree World is a classic nonsense. (and controversial) interpretation of libertarian ethics. Liberty: Do you think they will get the budget deficit under Liberty: What caused the crash? some kind of control? Browne: The most likely explanation was the sharp.slowdown Day: No. Not at all. The deficit has shrunk considerably dur­ in the money supply after a year of very strong monetary ing the past few years, although it remains enormous com­ growth. But that's just my number one choice. pared to what it was before 1980. But that hasn't been the re­ I think there is an unlimited demand for explanations of sult of any government action; it's simply because the things, so the supply will always be there to meet it. But I don't economy has been growing at a moderately healthy rate, driv­ think even in retrospect that many of these. things are capable ing up tax receipts. of absolute explanations. What the politicians do to reduce the deficit is mostly a Liberty: What would you recommend to investors today? game with mirrors: postponing expenditures for a couple of Browne: My "forever" position is that an investor should sep­ weeks to move them into the next fiscal year and then telling arate his capital between that which he can afford to lose and us they have closed the budget by that amount. I don't know that which he cannot afford to lose, to set up two different port­ who they think they're fooling. They're not fooling us. folios, though he may decide not to have the portfolio of the Liberty: What sort of cost of living rate do you think we'll see money he can afford to lose, even if he does actually have during the coming year? some he can afford to lose. Day: During the next 6-12 months, we will likely have a rate of I call the money he can't afford to lose the "permanent increase in the Consumer Price Index that is fairly subdued, portfolio." I believe he should set up a portfolio once and for probably in the 4%-5% range, as a result of lower consumer de­ all that he keeps forever and only adjusts to restore the origi­ mand because of recessionary fears. nal percentages. But after that, I think we will have significantly higher in­ The percentages that I've arrived at evolved over a period of crease rate-somewhere in the 8%-10% range. Whether the time: they are 25% in stocks, 25% in bonds, 25% in gold and 25% onset of the faster growth in the cost of living will be in 3 in either T-bills or in a mutual fund invested entirely in T-bills. months or 9 months I find very difficult to gauge. But we're There are details as to what kind of stocks best fill the stock list, sowing the seeds for double digit inflation now; I'm not exactly but it is not a question of picking those that will beat the mar­ sure when we will reap the harvest. ket or do best next year or anything of that sort, and what kind Liberty: How do you think the Crash of '87 will look from the of long term treasury bonds are best, and so on. That's all in perspective of 1997? my book. Day: I don't think the Crash is an aberration. The crash is by The only question between one investor and the next is how no means finished yet; we're going to see a lot more decline. much to have in the "Permanent Portfolio" and how much Liberty: Will we have another depression? one is to have in the other portfolio, which I call the "Variable Portfolio." Though questions such as whether one is retired or young or has a big income would dictate the split between the two portfolios, they do not change my view of what the Perma­ nent Portfolio should consist of. Obviously I don't argue with anyone who says "1'd rather have 30% in gold" or wants to have 5% in Swiss Francs or some­ thing of this sort. More diversification is not a sin in my eyes, although it can be overdone. I have found that simplicity is al­ most essential because otherwise an investor with the best of intentions will never carry out the program when it is more di­ versified and complicated. I believe that my simplified portfolio provides about 90% of the protection I had when I possessed a more complicated i'Youire right - the economy does pick up whenever version. Johnny Carson gets married." .. PO Box 5586, Austin, IX 78763. 28 Liberty Liberty: What would you do with your varia.ble portion today? during the Reagan era. I don't think Reagan is responsible for Browne: Right now it's 50% in gold and 50% in cash. I went 40% this change, though he does deserve part of the credit. in stocks in August of 1984 and we stayed thE~re until we were If there is a tax increase in 1989, what we will get is a 32% rate stopped out in the dip in the fall of 1986. We got back in 50% or something like that. They're not going to just raise it back to into stocks in January 1987, but were stopped out at the time of 50%. It would take many years to get it back up to 50%, and I the crash. The signal was given Thursday before the crash. I really doubt that that will happen. got my managed accounts out the next day. For purposes of I think it is more likely that it will be lowered to 25% or even the newsletter's" model portfolio" we sold on the day of the 20% in 1989. I'm not predicting that, but I think that it is at least crash. But we're still a little bit ahead on the year. as likely and probably more likely than an increase. We got into gold when it dropped to $300 at the end of 1984 Liberty: What about the budget deficit? and were stopped out at the end of 86 and got back in around Browne: I think it will slowly but surely go down, especially if January of 1987. So we've been in gold and stocks almost con­ the line is held on taxes. It isn't novel to realize that raising tax­ tinually for the last two years. The gains have not been excit­ es is a sure way to increase spending, probably by more than ing, but they've been the taxes are increased, all right. For 1986, I and to increase the defi­ think the gains were "Before October somebody might have said cit. I don't know whether about 16% or 18%. For something like, there are two things that could the deficit will fall to zero 1987, figuring we sold never happen in this country: the Fed will never in the next five years, but our stocks the day of I think the trend is down­ the crash, we are up let a large bank fail, and there could never be a ward. about 3%. 500 point crash in one day in the stock market." Liberty: Do you have a Liberty: When you feel for what the changes sayright now you are in the cost of living will be 50% ingold, do you mean gold stocks or physical gold? in the next few years? Browne: Definitely physical gold. Whether bullion or coin is Browne: No. But I think that the chances are greater that it up to the individual. But not gold stocks. will be up next year than down. I doubt it will be over 10% by Liberty: Where do you think the stock market is headed? 1988, however. So that really dampens my enthusiasm for gold, Browne: I have no idea. I really don't. but we've done all right being in gold with our variable portfo­ Liberty: Interest rates? lio. Because I don'tbelieve in fortune telling, I would never say this is the top and sell. I would just raise the stop loss until it Browne: I have no idea. I really don't. was finally triggered. Liberty: Gold? Liberty: What do you think the Crash of '87 will look like from Browne: I have no idea. I really don't. the perspective of 1997? Liberty: Should I put thatdown for everything? Browne: That depends on what follows. If there is nothing sim­ Browne: Sure... ilar to it, even if there's a long decline, it will always stand out Liberty: Taxes? because it was a record breaker. But if there are one or two Browne: The only time it is worth talking about a personal ex­ more, people will look back at the whole picture rather than pectation is when you believe you are noticing something that just the crash of '87. As far as I know tomorrow morning there other people are not noticing. That doesn't mean that you could be another 500 point crash. I am not saying that it will know what will happen, but maybe you are noticing some fac­ happen, but it is foolish for anyone to say it cannot. tor bearing on the future that other people do not, and it might I think investors had a wonderful opportunity to learn from help them. For one thing, it might keep them from going too this crash. Before October somebody might have said some­ far in the other direction. thing like, "there are two things that could never happen in With regard to taxes, I think my opinion is a little different this country: the Fed will never let a large bank fail, and there from others. I really don't know what is going to happen to any­ could.never be a 500 point crash in one day in the stock mar­ thing, but I feel a little more confident with regard to taxes ket." than I do with the outlook for gold or stocks. For all I know gold I hope that people will learn from this that anything can may have hit its top this week, and we may be in a long down­ happen and that there is nothing that absolutely has to hap­ ward trend now. I don't know... the stop loss we have is at $430, pen. To rely on such a fixed belief is a mistake. I hope the but I may change it before the weekend is over. crash will teach people some humility about what they know I think that people are too cavalier when they say that now about the future. that deductions are gone that tax rates will be raised. Liberty: What do you think are the prospects for deflation I think we are sure to have all of 1988 without an increase during the next 3 or 4 years? over the 28% rate. Reagan would veto any such increase and Browne: I think it is very possible. And I'm talking about real the veto would be sustained. If Reagan died, I think George deflation, not mere disinflation like we had in the early '80s. I Bush undoubtedly would veto any raise. If he got elected Pres­ think deflation is possible, but that the crash makes deflation ident, he might be persuaded to do otherwise, but he certainly less likely than it was, because the Fed will for at least a while won't do it in 1988. So I think the chances are overwhelming be very much afraid of erring on the side of deflation. But that that we win have one complete year at the 28% maximum rate. doesn't mean they will have that same viewpoint a year from 1989 will bring a new president and a ne,,y Congress and the now. question becomes much more iffy. But I think few people ap­ is adjunct professor of economics at preciate just how much the terms of debate have changed Mark Skousen Liberty 29 Rollins College, author of ten books on investment and eco­ hedge. nomic topics, and editor of a monthly advisory newsletter, Liberty: I take it you recommend holding the balance of your Forecasts & Strategies. * portfolio in cash and cash substitutes? Liberty: What caused the crash? S'kousen: Yes. I recommend keeping 60% to 70% of holdings in Skousen: The crash was primarily caused by the Federal Re­ money market funds. serve's switching policies from fighting recession to fighting in­ Liberty: What about interest rates? flation...The Federal Reserve System under Paul Volcker-and Skousen: Right now my outlook is for interest rates to decline then under Alan Greenspan-sharply reduced the expansion a bit over the next year. of the money supply in the beginning of 1987. The money sup­ Liberty: Why? From credit expansion by the Fed? ply (M1) growth rate declined from 16% to Skousen: Initially, I less than 6% in less think it will come from than a year... M2 fell "There will be a strong effort to ralse tax the fact that the Fed's from 8% to about 2%­ rates, especially when the deficit expands policies are causing a its lowest rate in about recession. It is hard to 25 years. The result was rapidly as the recession sets in. The deficit will say what would happen a rise in interest rates baloon to perhaps $300 billion. I think we will if they flood the market while inflation as meas­ see a tax increase in 1989. 1988 will be the again. It might be an ured by rising com­ initial decline, then a lowest tax year for a long time." rise, depending on modity and consumer ______.. what happens with eco- prices continued to move back up. So basi­ nomic activity. cally the stock market which had gone through a 5 year mas­ Liberty: What about taxes? the deficit? sive bull market simply ran out of steam as the liquidity was Skousen: There will be a very strong effort to raise tax rates, taken out of the system. Expectations for fantastic earnings especially when the deficit expands rapidly as the recession and profits by major corporations turned out to be illusory. sets in. The deficit will balloon, to perhaps $300 billion. I think Liberty: What would you recommend to investors today? we will see a tax increase in 1989, so for individuals, 1988 will be Skousen: My advice depends on government response to the the lowest tax year for a long time. crash. Our economy and financial instruments are heavily de­ Liberty: Where do you think consumer prices are headed? termined by government policy these days. So far it appears Skousen: I think they will level out with this recession. I don't that the Fed is not responding to this crisis by flooding the think price inflation will be as serious a problem as the fact markets with money; to the contrary, it appears they are con­ that people will be thrown out of work and businesses will be tinuing a relatively tight money policy. If this trend continues, hurting. investors would be wise to head for the hills, build a strong Liberty: Did you prepare your clients for the crash? cash position, get out of debt, and unload any assets that they Skousen: In my September 8 special alert, I advised selling all are relying on to preserve their capital. We could be entering stocks when the Dow was at 2600. In my Oct 1 issue, I advised a deflationary phase. that the credit crunch by the Fed could devastate the stock On the other hand, if the Fed panics, as they have in the market, and that if the Dow fell 500 points in short order it past, we could see a massive influx of new money in the sys­ would be a full scale bear market, not a correction. I told sub­ tem which would be highly favorable to a recovery of the stock scribers that gold shares were a high risk and that I had per­ market, at least temporarily. But so far I see no indications of sonally sold most of my gold stocks in September. But I did not this happening. give an all out sell to my subscribers, unfortunately, though I Liberty: You have seen no indication that the Fed is flooding continued to recommend gold bullion coins. the market with money, other than the immediate reaction af­ ter the crash? R. W. Bradford publishes Analysis & Outlook,* a monthly newsletter oriented toward gold and silver invest­ Skousen: That wasn't as spectacular as I expected. It's very ment. He founded Liberty Coin Service, a pioneer gold and sil­ similar to the Continental Illinois bailout, which I thought ver brokerage firm, in 1971, and retired from active manage­ would cause a massive increase in inflation. It did eventually, ment in 1981. He is also publisher of Liberty. but initially there was no indication that they had reversed pol­ icy. Liberty: What caused the crash? Liberty: As of this moment, how do you feel about stocks? Bradford: Investors finally noticed that stocks were ridicu­ louslyovervalued. Skousen: I am entirely out of stocks, and I have been since early September. I expect stocks to head lower. Liberty: What would you recommend to investors today? Liberty: How about gold? Bradford: It all depends on the nature of the investor, his net worth, his age, his goals and his outlook on life. My own inclina­ Skousen: I have only a survival position of 10% of my portfolio tion is to see investing more as a way of maintaining wealth in precious metals, primarily in the form of coins, although it than gaining wealth, so the advice I give tends to be rather could include some gold stocks. conservative. Liberty: What about bonds? I recommend holding 30% to 50% of one's investments in Skousen: I recommend a small position-no more than the form of gold, for two reasons: as a hedge against inflation 20%-in high grade bonds, not junk bonds, as a deflationary and as a hedge against social chaos. .. 7811 Montrose Rd, Potomac, MD 20854, $95 per year (12 issues). .. PO Box 1167, Port Townsend, WA 98368, $36 per year (12 issues, plus special reports.) 30 Liberty In my judgment, a significant increase in inflation during perceive things. the next 2-4 years is overwhelmingly likely. I expect gold will Liberty: How do you feel about stocks? rise significantly faster than the inflation rate, so gold bugs will Bradford: The stock market is really beyond my area of ex­ profit substantially. pertise, but I believe that most stocks are still overpriced in But gold is also the best hedge against social chaos. If the terms of fundamentals. Stocks are already overpriced in terms market collapse touches off a depression (which I think is a of corporate earnings, and I don't think the outlook for corpo­ strong possibility), I think most people will react by demand­ rate earnings is very good. So I believe the stock market still ing more benefits from the state, and there is a good chance has a long way to fall. I would not be surprised to see the Dow that such demands will not be able to be met from govern­ fall to 600 or 700 before any significant new bull market starts. ment's current resources. The result could be a violent reac­ Liberty: How about gold? tion, either from those demanding more benefits from govern­ ment, or from those demanding government tax them less. Bradford: Right now I think the outlook for gold is outstand­ Social violence is not likely, but there is a real potential for it, ing. At the most fundamental level, gold is money; not because and I want to beprepared for that possibility. And gold has governments make it money, but because individuals acting in long been the best hedge against revolution and social chaos: the marketplace make it money. In times of extreme uncer­ its purchasing power has survived the rise and fall of govern­ tainty, like the present, people will increase their demand for ments, nations and even entire civilizations. gold. Because I think there is also a small but significant possibil­ In the most likely scenario-inflation-gold should do tre­ ity of deflation, I recommend holding 10% or so of one's hold­ mendously well. But even if we have deflation, I expect gold fo ings in top quality bonds .with maturities of about 5 years, do fairly well. which should provide protection if deflation comes. Liberty: What form of gold do you recommend? I would keep the balance of my holdings incash: preferably Bradford: I favor gold coin or bullion, rather than certificates T-Bills or a money market fund invested in T-Bills. Cash is or gold stocks. The rationale for buying gold is that it is the something of a hedge against deflation. And cash allows maxi­ most fundamentally liquid investment available, the commod­ mum flexibility, since I want to let markets sort themselves out ity that retains its value through all the vicissitudes of human a bit. history. Gold certificates or stocks have some of the advantag­ Liberty: You mention both inflation and deflation as possibili­ es of gold. But they also have some of the disadvantages of pa­ ties. It seems to me that with the Fed inflating constantly try­ per investments... ing to avoid a depression, inflation is as near to a sure thing as Liberty: Like what? you can get. Bradford: Their value Bradford: Whether we ultimately depends on have inflation or defla­ IIGold certificates or stocks have some of the the financial integrity tion is a matter ofindi­ advantages of gold. But they also have some of of their issuer. They vidual people's percep­ the disadvantages of paper investments: Their aren't as liquid. And tion of reality, of how they are. much easier each person evaluates value ultimately depends on the financial for the authorities to the situation. More integrity of their issuer. They aren't as liquid. tax. than anything else it is And they are much easier for the authorities to Incidentally, I a matter of expecta­ should warn you that as tions. The Fed can con­ tax." a substantial owner of a trol the money supply; gold coin brokerage it can increase it· or de- firm, my answer may crease it at will. But human perceptions are in the control of not be entirely disinterested... Although it might be more accu­ individual human beings. rate to say that I got interested in gold coin brokerage twenty I think inflation is much more likely than deflation because years ago because I believed physical gold investments had a I think the incentives are there for the Fed to increase the sup­ great future. ply of money, in part to try to stave off a depression, in part to Liberty: What do you think of bonds? finance the gigantic budget deficits I foresee as people de­ Bradford: I see them mainly as a hedging device against de­ mand more of their governments. flation. If interest rates fall, the value of bonds will rise. Of I suspect most people will react to this growth of the money course, if interest rates rise, the value of bonds will decline. supply by figuring that money is not a good commodity to hold. But it is always possible that this increase in the money Liberty: What about interest rates? Do you expect them to supply will come at a time when people are increasing their rise? demand for cash for some other reason. Bradford: They will most likely fall in the short term as the Fed tries to stave off depression. In the long term, they are dif­ Liberty: Like what? ficult to predict, since they depend so much on the decisions of Bradford: Well, people might panic out of everything and go the government. into cash which they perceive as a safe haven. That is essen­ tially what happened to the metals' markets in the few days af­ Liberty: You say that you expect interest rates will probably fall ter the crash when gold and silver prices fell badly. Since then, in the short term, and you recommend bonds as a way to take advantage of rising interest rates. This seems contradictory... of course, people have changed their perceptions, and gold and silver have risen considerably. Bradford: I recommend bonds as a medium term hedge As I said before, it ultimately comes down to how people against the possibility that people will react to events different­ ly than I expect. Liberty 31 Liberty: What about taxes? the deficit? Liberty: Then you don't think there is much chance of defla­ Bradford: I think the deficit will continue to grow as citizens tion? demand more from their governments. I expect taxes to be Papl: No. There's not much chance of deflation. But there's a raised significantly, though probably not until after the 1988 big, big chance of a continued, sustained, accelerated infla­ elections. tion. This means we can still have a recession or depression along with inflation. Ron Paul was a member of the U.S. Congress from 1976 to 1984, during which time he earned a reputation as a leading Liberty: You advise avoiding stocks. Does this mean you advocate of the gold think the stock market has some distance to fall? standard and reducing Paul: Yes. I believe it the size of govern­ will go down a lot fur­ ment. He is publisher "The crash is worse than the crash of 1929. ther. of the Ron Paul Invest­ Unless we as libertarians are successful, there Liberty: Would you ment Letter. * will be another quantum leap in government care to estimate how Liberty: What do you much further it will fall? think caused the mar­ control of our lives and in our loss of privacy. I Paul: One important in­ ket crash? hope than in 20 or 30 years we don't look back sight of Austrian eco­ Paul: The crash is the and see this is the case." nomics is that it is im- consequence of the possible to make monetary inflation accurate predictions of created by the Federal the future. We know di- Reserve System over the past four or five years. It was the nat­ rections but we don't know precise numbers or the exact date ural, expected, predictable consequence of the central bank in which a market will turn. But my guess is the Dow will fall pursuit of a policy of sustained monetary inflation. during the next two years as low as 1000. Liberty: How does inflation cause stock prices to fall? Liberty: You recommend investors buy gold and silver. Am I Paul: When the Federal Reserve creates money out of thin safe in inferring that you think the price of gold and silver will air, those funds distort markets by lowering interest rates, rise? causing people to take actions that they would not have other­ Paul: I don't see it as a matter of the price of gold rising. But wise done. Sometimes it goes into running up prices of com­ investors always measure everything in terms of dollars. I in­ modities, sometimes it goes into running up prices in the fi­ terpret things in terms of gold. The value of the dollar will de­ nancial markets. In the past five years, the excess credit has cline; so the price of gold will rise. Silver will also rise in the long been used to run up the financial markets. All the markets term. Eventually people will rush out of dollars, and the price needed was an excuse to make the correction that was neces­ of gold and silver will skyrocket. sary. Liberty: How much gold orsilver should investors buy? Liberty: Do you think the crash was the result of specific ac­ Paul: I think investors should put half their holdings in gold tions by the Fed in mid-1987? and silver. Paul: Well, it happened that way, so people can argue that Liberty: Do you mean physical gold, in coin or bullion form? way. But the basic cause was monetary inflation. The precipi­ Paul: Physical gold, fully paid for, no leveraging. But I would tating event can be anything. In this case it was probably the include gold shares in that. Fed's slight tightening of the money supply, which the market Liberty: What is your outlook for taxes? interpreted as a lot of tightening. It was just an excuse for the Paul: They're going up. Ronald Reagan has fooled the people market to do what it had to do. for a long time, but he is one of the biggest tax increasers we've Liberty: What are the implications of the crash for investors? ever had. He has raised taxes four times for a total of over a What should the investor do now? half trillion dollars already, and he has conceded that he will Paul: Stay out of the stock market. Stay out of the bond mar­ raise them once again. I will not be surprised if they cancel ket. Hedge your bets by holding gold and silver. next years tax break which is already in place. *1120 NASA Rd, #1, Houston, TX 77058, $99 per year (12 issues). Liberty: Will the crash affect the budget deficit? Will it be brought under control? Paul: Just the opposite. The stock market crash was telling us that there is a recession ahead. When a recession hits, expen­ ditures explode and revenues go down. Every attempt in Con­ gress to cut spending in normal times is full of loopholes. In a recession, no one even makes the attempt to cut spending or balance the budget. So there is no way the deficit will be re­ duced. I predict a record deficit for the 1988 budget. Liberty: Do you expect another depression? Paul: Yes. Liberty: When? Paul: Two or three years. "You have to realize that a little famine is good for the economy." Liberty: What is the outlook for the CPI rate?

32 Liberty Paul: It will accelerate. In 1988 it will be up to to the 7-9% level. the crash is inevitable. Eventually double digit inflation will return" As a matter of fact, some guy on Wall Street has compiled Liberty: When do you think we will see double digit inflation the average dividend ratios of the Standard and Poor Index, again? and he says that during the past sixty years, whenever the rate Paul: Probably by 1989. has fallen below 3% a crash is imminent. By mid-August the ra­ tio had fallen to 2.5%. The combination of interest rates going Liberty: What do you think is the long term significance of up while earnings to price ratios were going down made the the crash? How wiUthe crash look when we look back at it from crash inevitable. Another significant factor was the recent be­ the year 2000? havior of the Fed. After expanding the money supply for sever­ Paul: The thing I fear most is that it will prompt this country to al years, the Fed stopped the expansion in late April. The flat take another giant leap toward totalitarianism. After the last money supply almost insured a recession, which the stock great crash, in 1929, the defense of capitalism and the gold market was anticipating. standard was easily rejected and the nation embraced the Liberty: Why do you think the crash happened in mid­ New Deal. We have since learned to live with a lot more gov­ October rather than, say August or September? ernment. This crash is worse than the crash of 1929. Unless we as li­ Rothbard: What triggers a crash on any given day no one can bertarians are successful, there will be another quantum leap know. But those two underlying factors made the crash in government control of our lives and in our loss of privacy. I inevitable. hope that in 20 or 30 years we don't look back and see this is Liberty: What are the implications for investors? the case. Rothbard: It forecasts a recession. It also means accelerated But everything depends on what we do from this point on. inflation. The Fed poured in something like $8 billion that The fact that we've had a stock market crash means that the week. economic correction IS inevitable. How we react to that correc­ There is also an international aspect: the dollar has been tion is up to us. falling since early 1986. Treasury Secretary Baker decided in The big question is: how much freedom are we going to sac­ February 1987 that the dollar had fallen enough. Somehow he rifice before it's over? decided in all his wisdom that the dollar was at its ideal rate in Liberty: Will the fact that the crash occurred under a Repub­ terms of other countries, and he managed to bludgeon the lican Administration that is generally perceived as an advo­ other industrial countries to stabilize the dollar at those rates. cate of free markets result in the idea that free markets cause This meant our allies central banks had to buy about $70 to $90 depressions? billion dollars from February to October to prop up the dollar. Paul: Yes, that's one of the worst aspects to this. One of the They can't keep doing this forever. So the dollar is bound to reasons I left the Republican Party a year ago was to make collapse. At some point foreign support will end because the sure I wasn't identified with this. The Ronald Reagan rhetoric real rate of interest will go down. To attract capital the nominal will be blamed, instead of the Ronald Reagan policies of big interest rates will have to rise. The Fed is caught in a bind: if government. they allow the interest rates to rise, the recession will be deeper and the stock market will fall further; on the other hand, if they Murray N. Rothbard is an economist and historian, push rates down, the dollar will collapse even further. and author of America's Great Depression and The Panic of So the Fed is really screwed. They are in a total bind. It's a 1819. He is S. J. Hall Distinguished Professor of Economics at beautiful thing to see. Whatever happens they are in a total the University of Nevada at Las Vegas, and vice president for mess. academic affairs of the Ludwig von Mises Institute. He is also Liberty: What will happen next? an editor of Liberty. Rothbard: What I forecast for 1988 is what Maxwell Newton, Liberty: Why did the market crash? the financial editor of the New York Post, calls the "nightmare Rothbard: The market scenario": a stiff re­ crashed because it was cession, accelerated runup artificially after sev­ "I forecast for 1988 a stiff recession, acceler­ inflation, a falling eral years of Federal Re­ ated injqation, a falling dollar and rising inter­ dollar, and rising in­ serve expansion of money est rates. The average person will get the terest rates. and credit, and for various Liberty: Isn't this reasons consumer prices worst of all worlds. He gets a recession, which what was called hadn't responded to the means bankruptcies and unemplpyment. And "stagflation" in the expansion for quite a while. mid-1970s? By the end of 1986, prices he gets an increase in the cost of living. It won't Rothbard: Yes, it's started to go up. Prices rose be like the last depression, in which the cost of very much like stag­ about 1% in 1986 but 5% flation, except that this year. That's a 400% in­ living fell." this time we have a crease in the rate of infla- falling dollar as a tion. So even though 5% sort of added treat, a special bonus. It's a lovely thing shaping doesn't seem like much, it was a big increase from before. up. It will come just about in time for the election, and will This increase re-activated people's sensitivity to inflation mean a smashing defeat of the Republicans. and interest rates started going up. At the same time, stock prices were very high. But dividends weren't growing. When Liberty: What can investors do to protect themselves from you have high interest rates, and low dividend-to-price ratios, this? Liberty 33 Rothbard: Unless you have a really special situation in some Liberty: What caused the crash? particular, the stock market is no place to be. The bond mar­ Hess: I have absolutely no idea. ket will be crushed. The best investments will be gold or col­ Liberty: What does the crash signify to investors? lectibles. Hess: I think it will remind people to cOl}sider financing spe­ Liberty: When you say gold are you talking gold stocks or cifically as the backing of productive enterprises instead of physical gold? gambling on the stock market. I hope the raising of capital will Rothbard: When you buy gold stocks you have to be an ex­ more sensibly return to individual enterprises rather than the pert in the individual stocks, what's going on in the individual stock market. I think people should invest directly in enterpris­ stocks, in South Africa. The best investment is actual gold bul­ es, in usable tools, landscapes, skills, things like that. lion or, better yet, coins. I have never believed that the stock market was crucial in Liberty: You mentioned very traditional hard money invest­ funding new enterprises anyway. But some peoplewanttosim­ ments, gold and collectibles. What do you think about so­ ply gamble their money. Maybe the best advice for them is to called hard currencies, like the Deutsche Mark, the Swiss go to Las Vegas. Gambling is gambling. Franc or the Yen? Liberty: Do you mean that what one should invest is not mon­ Rothbard: I am not sure how much the market has discount­ ey, but perhaps energy and effort? ed the stronger fundamentals of these other currencies. Hess: No, I think investing money is important. But I think it Liberty: Another traditional hard money investment is silver. should be invested directly in·a productive enterprise'with Whatdo you think of silver? which you are familiar and with which you have some involve­ Rothbard: I don't think silver is a monetary metal anymore. I ment. In the long term, I think this is the most productive way think it's nostalgia from the past. It's been a long time since it to deploy your money. has been used as money. I think silver is a mistake on the part I think having your own business or developing your entre­ of many hard money people. All this nonsense about the gold/ preneurial skills is a very good investment. But gambling in silver ratio seems foolish to me. There has never been any rea­ the stock market as the basis of your wealth strikes me as be­ son to expect the ratio to remain constant. ing too iffy to be dependable. I do not know why anybody Liberty: You think bonds will be crushed. I take it you don't would put all their eggs in that basket. I can't sympathize with think there's much chance of deflation? people who turn their money over to stockbrokers or invest­ ment advisors and expect some sort of magic to be worked on Rothbard: There is not going to be any deflation, that I am their behalf. sure of. There ain't going to be no deflation. By deflation I mean the substantial decline in the cost of living. I do not Liberty: What long term implications do you think the crash mean a decline in' the prices of commodities: they have fallen has for life in the rest of this century? in every recession. But consumer prices have not fallen in any Hess: I don't think it was a crash. The Dow today stands higher recession since World War II. than it did a couple years ago. I think Sam Walton was as sen­ The consumer-the average person-will get the worst of sible as anybody. When somebody asked him how it felt to all worlds. He gets a recession, which means bankruptcies and lose-I forget what the exact figure was... I think it was $3 bil­ unemployment. And he gets an increase in the cost of living. It lion-and he said it didn't bother him. It was just paper. That's won't be like the last depression, in which the cost of living fell, a healthy attitude. so those people who were employed were much better off. I hope that the implications for the future are that'capital Liberty: And the bonus you mentioned earlier-the falling markets will become more personalized; that people who in­ theIn~ dollar-will come into play... vest in things will take a closer interest in and the stock market... people have tried to explain the stockmarket to me Rothbard: Exactly. As the dollar declines, the cost of imported but they have never convinced me that it is a good wayto pro.. goods will increase, ....- duce new capital for new which will raise the cost enterprises. It's arou- of living even more. We iiI hope the raISIng of capital will more lette game. are just beginning to see the effects of this. For the sensibly return to individual enterprises rath- Liberty: Whatdo you' first year or so of the fall­ er than the stock market. I think people think is the outlook for ing dollar, foreign firms bonds? Hess: I don't know. I were trying to keep their should invest directly in enterprises, in usable market share, so they cut ______tools, landscapes, skills, and things like that." • don'tey to worryhave enoughabout it,mon-sol their prices in order to maintain their market think in other terms. But share. But this price cutting can only go on so long: further dol­ if I had a lot of money, I don't think I'd put it to work that way. lar declines will be reflected almost immediately in import I'd put it to work buying more tools, to produce real wealth prices~ which you can convert to money ifyou need money. But wealth is composed of so many other things, such as vegetables and Karl Hess is a welder from Kearneysville, West Virginia. knowledge and... His ideological odyssey has taken him through the labyrinths Liberty: Are you suggesting that money is not wealth? of left and right in his search for liberty. He has been an editor H~ss: of Newsweek, and is now editor of Libertarian Party News, and Money is only part of wealth. Money as a way of keeping accounts and deferring purchase is greatly useful. But once it has written many books. He is also the only editor of Liberty goes beyond those roles, money can get to be a sort of magic. who is quote<;i in "Bartlett's Familiar Quotations." People believe in it as having some sort of intrinsic value. It 34 Liberty has value only as a statement of account. These accounts al­ of inventions that there are today. It was a period of doldrums. ways have to be cleared. Just piling up IOUs from something But today, I don't see how anything can collapse because too called the Federal Reserve is useful only so long as everyone many people are thinking of too many new things to make and else is practicing the same magic. But if they ever stop.... then I sell and there are the tools available to make them. wouldlike to have my turnip patch and a 45 ACP. I have a long range feeling that we're switching away from Liberty: What's a 45 ACP? the mass economy. I think we're heading toward a more indivi­ Hess: Automatic Colt dualistic type of produc­ Pistol. tion. Liberty: Now there is a UThe urge for people to have things of tan­ Liberty: How so? hard core, survival in­ gible and particular value is so great that Hess: The tools are so vestment! What do you much more flexible than think of the notion that they will overthrow any system that stands in before. There is no rea­ the stock market crash the way of their having those things, as those son to invest millions of was caused by the trade idiots in the Soviet Union are beginning to dollars in some huge die deficit or the budget def­ that will punch out the icit? find out. ~rhey may not have thought that blue roofs of General Motors Hess: If either of those jeans anti CD players are important, but automobiles for the next explained the crash, that's simply because they are idiots." seven years when there then why did it happen are plastics and molding on a single day instead of ... 11 processes available that a slow slide? Something happened, and people just started enable you to change selling stuff. I don't know why. I remember Johnny Carson designs according to a customer's desires or whims. A confed­ once made a joke on television about toilet paper shortages. eration of cybernated machine tool companies could build au­ Within a week there wasn't any toilet paper at any store in the tomobiles, but they could build them exactly the way each cus­ area. Who knows? Some chance remark. Magic is a fragile tomer wants them. The U.S. government and Ralph Nader thing. People believed these things were worth so much. Then stand in the way, of course, but I don't think they will prevail somebody started believing they weren't worth so much... then forever. The urge for people to have things of tangible and par­ poof! the bottom dropped out. Or, at least, prices fell suddenly. ticular value is so great that they will overthrow any system that But prices of things fall constantly, and we don't consider it a stands in the way of their having those things, as those idiots in great disaster. the Soviet Union are beginning to find out. They may not have thought that blue jeans and CD players are important, but Liberty: Do you think as a consequence of the crash we will that's simply because they are idiots. Blue jeans and CD see some significant changes in public policy? players are incredibly important to people and people want Hess: Oh, yes! And all for the worse. It occurred to me that the things and by golly they will have them. crash was caused by people making sensible decisions about And the system that denies them things will collapse and what their stocks were worth. If you try to interfere with these the system that encourages them will flourish. The system that decisions, you destroy the ability of the market to function, to encourages it is the free market. The new tools are conducive be productive. to this: these new small highly flexible tools mean that people It would be like saying once you buy an automobile the in the next generation or two will be able to design all the arti­ price has to remain constant. Automobile prices crash con­ facts of their lives to fit their personal lives. People are design­ stantly, as anybody who owns a five year old car knows. We ing their personal lives already. For the first time, people are don't take that as a sign of instability. I knoV\{ there is a differ­ designing their families, their relationships with other people ence between the automobile and the stock market... I tell you, in idiosyncratic and highly individualistic ways. That's one rea­ I have to fall back on this: I do not understand the stock mar­ son why the big corporate and state bureaucracies will have to ket as anything more than a place to gamble. If I thought it go. It's not ideological. It's just that people want too much. And was important to the production of wealth, I would be dis­ the big institutions can't provide it. The only people that can turbed. But I see wealth production going on rather merrily. provide it are entrepreneurs. Liberty: What do you think about investments in commodi­ Liberty: How did these corporate bureacracies-say the GM ties, in tangible assets, assets that are "non-producing," heavi­ bureaucracy-come about? Are they products of the market? ly ballyhooed commodities like gold and silver? Or of anti-market forces? Hess: I think gold and silver are productive. Gold is very pro­ Hess: I think the,Se bureaucracies came about because of the ductiveif you are building certain electric circuits. Silver is vi­ mechanics involved. It used to be that to produce a lot of auto­ tal to various industrial processes. The fact that people attach mobiles, you had to make them all the same. That is what's a certain magical value to gold is interesting, but I think its ar­ changed. tistic value and its chemical value would assure it a high place The development of the information revolution and the cy­ in a productive economy anyway. bernetic revolution has changed man"ufacturing forever. All Liberty: How do you think the Crash of '87 will look from the General Motors has going for it now is the U.S. government. If perspective of 1997? Will the crash be viewed as part of some you strike down regulations, people in Fairfield, Connecticut, significant historical change, in the way that the 1929 crash is would be making their own automobiles. seen as the start of the Great Depression? Or will it be forgot­ Look to the tools. I don't know how anybody can look at a ten? Macintosh and not realize that the world has changed. 0 Hess: One thing that was lacking in 1929 was the proliferation Liberty 35 r'VE GOT TO GO TO COURT IT COSTS A LOT or: MONEY ISN'T THAT PART OF THE nl\s MOIUJIN(i; 1'0 ANSWER TO BRING AIRLINE SERVICE ro O~ A LAWSUIT BROUGoHT BY AN WAT WOULD MAKE ~E COST LIVING IN A SMALL COMMUNITIES. ~EY ANTI-GOVERNMENTALIST UNDER TICKETS MUCH ;no SMALL COMMUNITY? NEED HELP FROM TAXPAYERS. THE ORGANIZED CRIME STATUTE! E.XPENSIVE FOR Tt-IE/R WHY NOT .:ruST ADD IT TO AIRLINE PASSENGERS. NOT IF THEY A THE PRICE OF THEIR I DON'T PAY IT. GOOD LUCK. R FEDERAL~ L (~:L6?_,_ II AVIATION SMAL[ro.e.u,,,J'\ , __AOMINISTRATIOIi SERV'CE PIVI.'~~ ) ~ § E (1j fD ffi as ~ Be s 5Jffi) u s E u LATER ••• I CANT BELIEVE I B BUT Tl-IERE'S NO ACTUo'LLY SAID THAT. T SUCH THING AS WE WON! THE JUDGE S A FREE LUNCH. H DISMISSED THE sUlr. I WELL YOU DID. IT'lL HAVE 10 GO INTI) '\'tlUR E D PERSONNEL FILE. I 8 E FAA "WE HHPYOU AFFORD SMALL .- SMALL COMMUNITY SER.VICE DIVISION TOWN LIVING·D S S T i;A. _I.- \.X) CO itt R D 5 i'l4E (;ROUNDS THE ;r\JOGE ! <.;AVE J:"OR DISMISSAL. WERE' r'VE GOT IT! WHEN PANIC L.6SS THAN SATISFYING. SELLING STARTS) WE CAN WE NEED A SYSTEM TO LIMIT SELLING TO 1}lE PREVENT PANIC SELLING MORNING HOURS) ONLY. FROM DEVASTATING. lliE BUYINe; CAN BF: DONE S STOCK MARKET AGAIN. IN THE AFreRNOON. To C K M A R NO. HE RULED we LACK A :BURONlc L£GAL.LY-SUF'F'lC.IENT l<­ Nor AT ALL) BONG. IT'S A DEGREE OF ORGANIZATION ••• PANIC SEU.ERS GOOD SOL.UTlON) BUT NOT EPISODES TO QuALIFY AS E ARE OPERATING; ON FOR THIS PP.OBL.EM. WRITE A DEFENDANT. T EMOTIONS, NOT L.OGIC. IT UP AND WE'L.L. KEEP IT FOR THE FUTURE.

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36 Liberty Viewpoint

Strange BedfelloV\Ts The Libertarian!Conservative Misalliance by John Dentinger

We libertariansare agreed that our philosophydiffers greatly from both liberalism and conservatism. We hold up a Nolan Chart to prove we are ninety degrees away from each. But the media and the public, to the extent they perceive us at all, perceive us as conservatives. Recently the syndicated columnist Richard Reeves, in discussing Robert Bork, wrote, "The libertarian Cato In­ information for civil libertarians. Liber­ classroom or out-a proposal so vi­ stitute, which might be expected to als then do not come into our move­ cious and bigoted that even Ronald stand on the right with Bork, has, in ment to provide the needed fresh and Reagan opposed it. Gay libertarian ac­ fact, attacked his fundamental majori­ hot blood on civil liberties issues, mak­ tivists picketed the state convention tarianism...." The accompanying box ing the movement more socially com­ (and some later quit the party in dis­ "Perceptions of Libertarianism" fortable for conservative semi­ gust), which generated additional pub­ presents dozens of other recent exam­ converts, thus further justifying our licity for the hapless activist's conclu­ ples of major media seeing libertarian­ conservative image and completing sion that this demagogic thug was ism as an ally or a species of conserva­ the vicious circle. "libertarian." A typical media coup for tism. These are comments from us. people with more than the average Libertarian party and movement The 1982 California state LP con­ amount of interest in and knowledge of insensitivity on civil liberties vention provided another litmus test of politics-viz., people who are paid to Our appearance of insensitivity on which issues were significant and write about it. We may reasonably in­ civil liberties issues cannot just be which could be slighted. The conven­ fer that the general public is no better chalked up to media bias: the appear­ tion featured Ron Paul as its banquet informed. ance simply reflects an all too common speaker right after Paul had voted to Why? reality. reinstate the Washington, D.C. sodo­ In the first place, information is In 1978 one well-meaning LP acti­ my law (which had been repealed by costly even to those who get it "free." It vist in California decided to rate the li­ the D.C. city council). Very little upset takes time and mental effort to absorb bertarianism of the state legislators, was evident at the banquet, and there information, so its recipients must esti­ based on a selection of their votes. But was even less scrutiny of his stated rea­ mate its probable value to them, based the votes he selected happened to be son for so voting; but you can bet he on proxy information. For example, the weighted toward economic matters, would have been treated very frostily maxim that a person is known by the and the few civil liberties issues were had he merely voted to repeal a tax company he keeps is a good first ap­ conservative ones like gun control. His cut. proximation to the truth; and often it is widely distributed conclusion: that the In 1984, there was substantial heat­ the last approximation. most libertarian state legislator was ed opposition to the candidacy for Cal­ Politics is a little more forgiving; the John Briggs. ifornia Lieutenant Governor of Norma "strange bedfellows" maxim is well­ Briggs was an Orange County fe-. Jean Almodovar, a former call girl. known, so a person or movement may ver-swamp right-winger, one of the Self-styled radicals expressed horror be forgiven an occasional liaison with loudest hatemongers against drugs, that someone so disreputable as a an unsavory political crowd. But when prostitution, gays, etc. He was running prostitute would represent us, al­ a clear pattern of association develops, for governor and was known statewide though they (rightly) welcomed tax re­ such as libertarians socializing and at the time for only two things: a death sister Jim Lewis as a vice-presidential sympathizing almost exclusively with penalty initiative, and what became candidate, and had (rightly) made a conservatives, the civil libertarians rea­ the Briggs Initiative. The latter would hero of IRS foe, convicted felon, and sonably dismiss without further expen­ have barred from teaching in public federal prisoner Karl Bray. There is a diture of valuable time the idea that we schools not only all gay people, but Karl Bray Award, but there will not are good on civil liberties issues-all also anyone who ever spoke out publi­ likely soon be a Norma Jean Almodo­ because we have raised the cost of that cly for the rights of gay people, in the var Award. Liberty 37 Reason's outreach ter-which even a federal judge called herd to trample at the ballot box the to civil libertarians: state action-and by threats from state arch-demon Rose Bird, then chief jus­ Reach out and slap someone... legislators. Here was an opportunity to tice of the state Supreme Court, and reach out to civil libertarians by ex­ her liberal colleagues. What most of The outreach of the Reason Foun­ plaining that it was the state, not the these libertarians did not recognize dation is becoming increasingly con­ marketplace, that yanked Playboy was that Bird was sometimes better on servative. Members of the committee from 7-Eleven; to give a passing, token property rights cases than conservative for its November, 1987 fundraising thank-you to Playboy magazine and Justice Malcolm Lucas. banquet included Bible-thumping, the Playboy Foundation for their valua­ Moreover, the real alternative to smut-stomping L. A. County Supervis­ ble civil liberties work over the years. the liberals on the court was several or Michael Antonovich, and right-wing Reason reached out, all right-and commentator Bruce Herschenson appointments by Governor George slapped them. Even the pre­ Deukmejian, a right-winger who had both of whom had run for U.S. Senat~ deregulation AT&T was never so gra­ such open contempt for civil liberties in 1986 on far right anti-civil.liberties tuitously rude. that while running for California platforms. In fairness,. Reason has printed Attorney General-speaking to a The Reason Foundation customari­ SOIne good articles on civil liberties: group of libertarian lawyers-he said ly hands out copies of Reason maga­ criticizing the Meese Commission and he regretted the repeal of the state's zine at this banquet, and the cover sto­ the Drug Enforcement Administration, sodomy law, and that he even ry of this, the December, 1987 issue, tells us "How the Government Is for example. But the context makes philosophically favored the prohibition these articles appear as a meal provid­ ofa1cohol. Quietly Stealing Religious. Liberty." ed by a dutiful wife to an unwanted Granted that Rose Bird was a (How? By refusing to give churches ex­ stepchild. mixed bag, libertarians still should emptions from all instead of just some of the economic regulations which have been leery of giving a blank How some libertarians helped put check to this governor. Yet a number of strangle the rest of us. Just the sort of Paul Jacob and Norma Jean them worked actively-even going on heart-rending injustice bound to ap­ Almodovar in Prison speaking engagements-to get rid of peal to right-wing donors.) the liberals on the court. Curiously, Civil libertarians find it a great deal All this "fusionism" is not just other than myself, no libertarian urged more unjust that the state is still break­ harmless playing in the mud. Libertari­ people to vote against the two existing ing into people's bedrooms and arrest­ an collaboration with the right has conservatives on the court. Some LP ing people for unapproved sex. Even helped do observable damage. candidates for public office even made conservative newspapers denounced In California in 1986 a lot of liber­ anti-Bird literature part of their official the Supreme Court's 1986 Bowersv. tarians moved with the conservative Hardwick decision, which upheld the sodomy laws which exist in 24 states I;!~re are. so~e rec~nt an~ representative samples of the way (and in Washington, D.C.) The only ar­ llber(artan and lts dertvattve terms are used in the press~ ticle on the subject published in Rea~ son, America's premiere libertarian Birds flocking together magazine, concludes that "the Court "!he rarticipants at the July gathering work for conservatives throughout the reached the right decision-albeit for ~ltY-I~ the Reagan Administration, on Capitol Hill and in policy study groups thewrong reason." Including the Eagle Forum, the Cato Institute and Accuracy in Media. Some Other specimens of Reason's sensi­ are strict Christian fundamentalists. Some are anti-Communist neo­ tivity on civil liberties issues include conservatives. Still others are free-wheeling libertarians." * editorials in February, 1986 and July, -N.Y. Times, 8/11/87 1986. Both use the old libertarian de­ vice of criticizing both liberals and con­ " ..: sever~l fringe conservative-libertarian research groups ... have gained servatives-but in these two cases, lib­ prominence In recentyears: IHS, the Cato Institute (a Washington, D.C., liber­ erals deserve next to no. criticism. In tarian think tank ... ) and the Federalist Society (a conservative-libertarian the first, liberals are attacked for wish­ group for law students) " -National Law Journal, 12/29/86 ing "to force dial-a-porn on one busi­ "[Tlhe Cato Institute an organization with conservative credentials...." ness (the phone company)... in the -N.Y. Times, 5/19/87 name of freedom of expression." In . "Th~ [Federal~s~ Society] is a broad grouping of conservatives, ranging from the second, liberals are criticized for hbertarlans to rehglous fundamentalists...." -Washington Post, 2/1/87 "frothing at the mouth" over the deci­ "Mr. Epstein, Mr. Siegan and other 'free-market libertarians,' ... are far less sion of a number of chain stores, such known and less numerous than the traditional conservative advocates of judi­ as 7-Eleven, to drop Playboy and Pent­ cial restraint, such as Justice Scalia.... Libertarian conservative ... Edward H. house. Crane, president of the Cato Institute ... wrote recently that the brand of In each case, however, there was 'judicial restraint' or'majoritarianism' deferring to elected officials departs state action: local phone monopolies from 'the individualist, free market tradition that is the best of conservative are instruments of the state, and as thought." * -N.Y. Times, 2/8/87 such, subject to the First Amendment. 7-Eleven's action was influenced by the "There is scant ideological coherence to the new legal conservatism. Some Meese Commission's threatening let- * An asterisk after the selection means IFemphasis added." 38 Liberty Libertarian campaign materials. question but that they would have JlNeutral principles" And they got what they wanted. The overturned the decision of the appeals Conservatives and liberals both like seven-member court now has five panel-they would have turned to pretend to "neutral principles," but Deukmejian. appointees. Some of its Norma Jean free. Instead, she is right it is only the conservative ones libertar­ decisions have been better than the now serving a three-year prison ians are apt to fall for, such as that "ju­ Bird court's would have been. But oth­ sentence for this victimless dicial selection should be non­ ers have been worse. crime-and some libertarians helped political." Translation: out with liberal Libertarian Norma Jean Almodo­ put her there. Rose Bird, in with majoritarian-statist var had been convicted of a (possibly A number of libertarians are also Robert Bork. trumped up) charge of pandering. This proud to tell us that they voted for Ro­ Other favorites are "federalism" felony consists of "encouraging a per­ nald Reagan in 1980, because Ed Clark and "judicial restraint." The first son to commit an act of prostitution." wasn't sufficiently hawkish on defense. sounds fine until you realize "federal­ The judge sentenced her to probation, Let's look at one accomplishment of ism" means the Ed Meese ideal of the but the Los Angeles District Attorney, the candidate of these libertarians. Ro­ Bill of Rights not applying to the states. infuriated by Norma Jean's public ap­ nald Reagan said he would put an end It means states (absent a provision in pearances promoting a book she had to Jimmy Carter's draft registration. their state constitutions) can outlaw written exposing corruption in the Los He did not. He put Paul Jacob, libertar­ private schools, force Christian prayers Angeles Police Department, appealed ian draft registration resister, in federal on Jews and atheists in public schools, the judge's sentence under the "man­ prison. and ban abortion, interracial marriage, datory minimum" sentence provision I'm certain libertarians intended birth control, cohabitation, sodomy­ of the law (which is in fact seldom ap­ no complicity in this; perhaps they be­ the whole conservative package deal. plied). Of the three-judge appeals lieved Ronald Reagan's promises, de­ And "judicial restraint" means that panel, the two right-wingers (including spite his string of broken promises as judges will restrain themselves from Malcolm Lucas's brother) voted to governor. But are these libertarians performing their duty of interfering imprison Norma Jean. The State proud to tell Paul Jacob they voted for while duly elected thugs carry out this Supreme Court, now packed with Ronald Reagan? That they handed (or any other) agenda, short-circuiting right-wingers, refused to hear the Reagan some of the rope to hang Paul the separation of powers. appeal. with? Probably not. Yet these libertari­ Conservatives such as Rehnquist,* Rose Bird and the other liberals ans, who would have felt a visceral Bork, and Scalia (the finest legal minds had consistently ruled that judges revulsion at voting for any Democrat, It See "Mr. Justice Rehnquist: A Preliminary View" by Da­ have discretion under so-called man­ felt comfortable voting for Ronald vid 1. Shapiro, 90 Harvard Law Review 293-357, Dec 1976; "Justice Rehnquist and Constitutional Interpretation" by datory sentencing laws. There is no Reagan. John Denvir, 34 Hastings lAw JOllrnal 1011-1053, May-July 1983.

of its fans are economic libertarians, who would like to undo "Bork is widely regarded as more conventionally conser­ the New Deal. Some are social libertarians, who believe that vative, while [Bernard] Siegan is distinguished by his strongly what they put into or take out of their body is their business, libertarian views on economic and property rights." * not the state's. Others are more authoritarian conserva- -L.A. Times, 7/10/87 tives "* -The Economist, 2/7/87 ''Liberals need all the help they can get these days-but " there was considerable disagreement even among they don't need, don't want, and don't have any alliance with the conservatives, who included Reagan supporters, Tory the libertarians.... the libertarians support the liberal [juris­ traditionalists, libertarians...." --N.Y. Times, 2/1/87 prudential] agenda because they 'are willing to tolerate the "[T]he typical mold ... generally views libertarians as Re­ activism of the left if they can have their own activism of the publicans and populists as Democrats." right.'" * -Commentary by the Rev. Robert Drinan, a former -National Journal, 3/21/87 Democratic congressman from Massachusetts; Legal Times, 5/11/87 Political science researchers found Republican contribu­ tors "to be split into 'hard right,' traditional conservative, We ought to be in Scriptures moderate and libertarian factions, but among these compet­ ing groups 'there is significant overlapping' in ideology and "The American and Libertarian parties [of Wyoming] at­ political style...." * -Washington Post, 9/5/87 tempted to forge an alliance last year.... [An American Party spokesman] said the American Party creed is 'based on con­ Bork was "A conservative law professor who stated his stitutional principies tied to traditional Americanism and beliefs-first as a libertarian believer in judicial activism...." * scriptural truth.'" -UP!, 6/29/87 --L.A. Times, 9/13/87 "Many conservatives are closet libertarians. For exam­ Ideas flocking together ple, ... most Reagan judges (including Bork) take a dim vie,.\' From a review of The Solution: "LouW.I. and Kendall, editor of of libel actions ... by public figures...." * a conservative newsletter, offer a libertarian plan...." -Washington Post, 8/9/87 -Time, 3/23/87 For Robert Bork, "Libertarianism eventually gave way to "Mr. Hoiles [of Freedom Newspapers, whose flagship pa­ a more conventional conservatism tracing its roots to the per is the Orange County Register] ... wants to control his own writings of Edmund Burke." * newspapers to spread the conservative political philosophy -David Broder, Washington Post, 9/20/87 ""continued on next page Liberty 39 of the 13th century), hold to these and substance, to be the leading Liber­ Paul's penchant for right-wing conspir­ "neutral principles" mainly when it's tarian spokesman for the coming year. acy theories (the government is ,con­ convenient, Le., when it supports the At the Seattle convention, Libertari­ spiring to ,hide from us how serious restilts they want. Libertarians should ans had a chance to distinguish them­ AIDS is; the Trilateral Commission not help the Right to pretend that its selves from conservatives by nominat­ and the Council on Foreign Relations principles are ,neutral or are applied ing Russell Means as our presidential are out to get us; etc.). And there's his neutrally. Instead, we should be (like candidate. Whatever Means's flaws, at egregious congressional voting record the Right) clear..minded enough to least his nomination would have posed on abortion, church/state separation, know, and (unlike the Right) honest a puzzle that people would trouble to freedom of the press, victimless enough to say, that we too subordinate read a newspaper article to solve. Peo­ crimes, and other civil liberties issues. means to ends, procedure to sub.. ple would have had to try to get an This wouldn't harm us ifPaul would , stance. And the end-the substance­ overview of the elephant-instead of simply offer apologies for these things. , isliberty. just getting another look at the ele­ Instead, he offers dishonest rationali­ Judges'are supposed to protect our phant's trunk and inferring that zations. He claims he voted to overturn l~berty;andstates don't have rights­ they're dealing with a snake. Washington! D.C.'s repeal of its anti­ individuals do. Rather than being mo­ Even during his campaign for the sodomy/ adultery/ fornication law be­ rally disarmed by a mendacious right, nomination, when Ron Paul was as li­ cause the same D.C. reform had low­ we should say that (within the very bertarian as he was ever going to be, ered the penalty for rape. So it had: but broad limits of constitutional interpre­ he slighted civil liberties. His cam­ prosecutors and women's organiza­ tation) judicial restraint and state au­ paign video, shown in Seattle, featured tions had requested the decrease be­ tonomy should be respected' when two lingering, admiring shots of a little cause penalties were so stiff they were '" they enhance liberty, and not when girl praying at a school desk (some­ getting no convictions. It seems Paul they don't. thing he voted for in Congress). Other really felt that if extra rapists went free, than the draft, the video mentioned it was a small price to pay to make Ron Paul civil liberties only once, with almost adulterers, fornicators, and faggots fel­ If some libertarians are suckers for subliminal brevity-a mere fig leaf of ons. right-wing personalities and rhetoric, libertarianism. This fits in with Paul's current con­ Ron Paul'putit all together for them. The press has already noticed Paul's tinuing use of the right-wing code word They felt 'comfortable selecting Paul, connection with the John Birch Society "family values," and with his pride in actually a conservative in both style (see accompanying box). Then there's announcing in a November, 1987 cam­ paign mailer that "Congressman Bob he inherited from his late father.... The philosophy is a form of libertarianism...." Dornan, admiring Ron's hard-money ---New York Times, 2/19/87 position, insisted on wearing Ron's campaign button...."-Dornan being Who is John Birch? one ofthe most virulent anti-civilliber­ tarians in the country. ''The more extreme anti-government advocates range from the anarchists, who Yet· many libertarians are sanguine have been floundering around for many decades on the political left, to the about being associated with the Right John Birch Society and the Libertarian Party on the right." * in this manner. Let us speculate why. -LA Times, 8/20/86 Who is Ron Paul? Why libertarians often identify "[Ronl Paul, when questioned by a convention delegate about the appear­ with conservatives ance of his name under the masthead on apublication of the right-wing [John When the question arises as to Birch Society] as a contributing editor, drew applause when he said he didn't whether the left or the right is the believe in 'gUilt by association.'" -UPI, 9/4/87 greater enemy of liberty and libertari­ "Of Idaho's Libertarian Party ... delegates ... two ... support former Texas anism, the answer is very simple: Congressman Ron Paul, a fiscal conservative." -UPI, 6/28/87 whichever is in power. But when one party has been in power for a long "[RonlPaul, a conservative who quit the Republican Party earlier this year time, it is easy to forget this. and is now a Libertarian...." -AP, 6/6/87 Murray Rothbard, in his 1965 essay, "Also seeking the Libertarian nomination is Ron Paul, a conservative Re- "Left and Right: the Prospects for Lib­ publican from Texas...." -N.Y. Times, 5/31/87 erty," gives us an example of the prob­ "... Rep. Ron Paul, a Republican whose conservatism is so extreme that he is lem:"It is always the tendency, in ideo­ the darlingofthe libertarians...." -Christian Science Monitor, 2/9/84 logical and political life, to center one's "Newly~nominatedLibertarian Party presidential candidate Ron Paul, a for­ attentions on the main enemy of the mer Texas congressman who left the Republican Party because he disagreed day, and the main enemy of [Albert J. w~th its economic policies...." * -UPI, 9/6/87 Nock's] day was the conservative sta­ tism of the Coolidge-Hoover Adminis­ So that's what we've been working for! tration; it was natural, therefore, for "Ifelected to lead the Libertarians, Paul said he would be different from Nock, his friend and fellow-libertarian Reagan by bringing to the presidency a 'restoration of trust in government.'" Mencken and other radicals to form a -UPI, 9/3/87 united front against FDR with the old- 40 Liberty er Hoover and Al Smith conserva­ to hold our nose and vote for them. In has been taking our rhetoric invain for tives.... But the problem was that Nock 1972, on the recommendation of Ayn six and a half years, and has been ap­ and his fellow radicals, at first scornful Rand, I voted for Richard Nixon. I pointing mainly statists and religious of their new-found allies, soon began to didn't know there was a libertarian al­ Neanderthals to the. federal bench. accept them and even don cheerfully ternative. I didn't even know the word The liberals may still not be our the formerly despised label of 'Conser­ "libertarian." Rand knew, but she friends. But it is certain that the con­ vative."' wasn't telling. servatives are the enemy to be con­ Likewise, most of us came to politi­ For years the people who were say­ fronted now. cal consciousness when the greatest ing libertarian things, and quoting li- To the tiny extent that a few enemies of freedom were conservatives are sincere on the left-because they about adopting our ideas, were in power. Interna­ and draw to themselves tionally, the great enemy When the question arises as to votes and support we was Communism; domes­ whether the left or the right is the might otherwise get, we tically, it was the New must continue to Deal, the New Frontier, greater enemy of liberty and differentiate our the Great Society. Even libertarianism, the answer is very ideological product from during the Eisenhower their watered-down years, the liberals held simple: whichever is in power. version, by being power on the courts. Here, radical-not by they have sacrificed un- succumbing to the tiny popular economic rights in the name bertarian culture heroes like Hayek buy-off of the "respectability" of being of spurious civil rights. and von Mises, and claiming them as associated with those in power-at this Many of us often found ourselves their own, were people like William F. stage of all our hard work. More, we allied with conservatives, and began to Buckley, Jr., founder of YAF, Young must divorce ourselves in the public have a reflexive identification with Americans for Freedom. Freedom­ mind from the meddling, hate-filled them. Conservatives seemed to have that was a noble-sounding word. But in religious right, or the incipiently much of our ideological coloration. Sin­ 1969 was the great schism over which libertarian subset of liberals will never cerely or otherwise, they used libertari­ libertarians were expelled from YAF. see us as a serious rival to liberalism. an rhetoric against the depredations of What was the schism over? The draft. the left. The traditionalists, or trads, favored Friedrich Hayek notes that the the draft. That was their idea of free­ The invasion of the word snatchers principled defenders of liberty have al­ dom. They called "laissez-faire" advo­ We must be wary of the invasion of ways and everywhere been a distinct cates "lazy fairies," and drummed the conservative concept-snatchers. minority, able to influence events only them out. They are even now stealing our word, by perilous alliances with those of oth­ We expected great things of the our people, our accomplishments, er, often disreputable, motives. A post­ class of '69, the first libertarians ex­ merely by persuasive definition-that script contained in his 1959 book The pelled from the troglodytic YAF. And is to say, merely by lying. Constitution of Liberty is his excellent where are they now? People like William Buckley slop­ essay, "Why I Am Not A Conserva­ One of them works in the White pily apply the adjective "libertarian" to tive." There he says, "In a country like House as a speechwriter for Ronald Robert Bork, a description Bork specif­ the United States, which on the whole Reagan-helping, in effect, to identify ically denies. (Buckley and Reagan still has free institutions and where, the language and ideas of have applied the term to themselves, therefore, the defense of the existing is libertarianism with the repressive as well-a description 1 specifically often a defense of freedom, it might social agenda of the religious right. deny.) Conversely, writers of the right not make ... much difference if the de­ Another is a high-level bureaucrat in like Buckley and John Chamberlain re­ fenders of freedom call themselves the U.S. Department of Education, fer to libertarian Nobel Prize-winning conservatives, although even here the which Ronald Reagan promised to economists Friedrich Hayek, Milton association with the conservatives by abolish. Still another is a closet Friedman, and James Buchanan as disposition will often be embarrassing. homosexual and a hard-working "conservative," though all three expli­ Even where men approve of the same campaigner and fundraiser for citly repudiate this description. Con- arrangements, it must be asked wheth­ right-wing politicians who are notori­ . servatives are, in a word, appropriating er they approve of them because they ous homophobic bigots. the most prestigious libertarians as exist or because they are desirable in Even though they were kicked out "theirs," and denominating the most themselves." Hayek wrote that 28 of YAF, they still maintained their bas­ soiled conservatives as libertarians, as years ago, and the occasional coinci­ ic identification with the right-to the a magpie might return a lump of lead dences of interests have become fewer extent that when the right got in power, for a stolen coin of gold. and fewer-yet they were there during they were able to devote their energies Hayek elucidates the differences our formative years. to promoting, not liberty, but the agen­ and their evolution. The partisans of Also, our intellectual and moral da of the right. liberty, two hundred years ago, were leaders consorted with conservatives. As if all this hasn't made the dubi­ called Whigs. Later they were called Even when they heaped contempt on ousness of our continuing affection for "old Whigs," since the later Whigs be­ them, like Ayn Rand did, they urged us the right clear enough, Ronald Reagan trayed the principles which the move- Liberty 41 Inent stood for. Partisans of liberty be­ These little magpies sit atop the shoul­ lowed to do what is required by the par­ gan to call themselves "liberals," a ders of giants, and claim them as their ticular circumstances and not be tied term which they have had to abandon own--even while shitting on them. to rigid rule." in its turn as it became largely appro­ Conservatives claim to admire the "Judicial restraint," by the way, is priated by their ideological opposites, beneficial effects of the evolution of an example of this unprincipled nature the socialists. Now, those who favor social institutions, but they always wish of conservatism. What it really means free markets and free minds are call­ the evolution to stop now, if not is: doing as little as possible to tie the ing themselves "libertarians." Those yesterday. The conservatives claim representatives of the mob to the "rig­ who favor "tradition"-however coun­ that the product of social evolution is id rule" of the Constitution. terproductive or idio- Hayek goes on, "A tic-are properly called commitment to princi­ conservatives. Buckley Conservatives are even now stealing our ples presupposes an once put it something word, our people, and our accomplishments, understanding of the like this: his proud goal general forces by was "to stand athwart merely by "persuasive definition"-that is which the efforts of so­ history yelling, 'Stop!'" to say, merely by lying. ciety are co-ordinated, Since America but it is such a theory (compared to Europe) of society and espe­ has fairly libertarian traditions, "tradi­ the fittest culture for us. This begs a cially of the economic mechanism that tionalists" have some common goals number of questions, such as why conservatism conspicuously lacks. So with libertarians. Their motives are en­ there is more than one culture at the unproductive has conservatism been tirely different, however, hence they di­ moment, or how we happened to be in producing a general conception of verge on a host of important issues. Li­ the lucky ones to be at the exact mo­ how a social order is maintained that bertarians loathe victimless crime ment of history when it reached per­ its modern votaries, in trying to· con­ laws, whereas conservatives simply fection. struct a theoretical foundation, invaria­ have multiple orgasms over them. We Hayek notes, "As has often been bly find themselves appealing almost face the danger of another linguistic acknowledged by conservative writers, exclusively to authors who regarded hijacking.of the sort which stole the no­ one of the fundamental traits of the themselves as liberal. Macauley, Toc­ ble word "liberal" from the partisans of conservative attitude· is a fear of queville, Lord Acton, and Lecky cer­ liberty. change, a timid distrust of the new as tainly considered themselves liberals, such.... This fear of trusting uncon­ and with justice; and even Edmund Conclusion trolled social forces is closely related to Burke remained an Old Whig to the I have endeavored here to stand two other characteristics of conserva­ end and would have shuddered at the athwart linguistic history yelling, "Stop, tism: its fondness for authority and its thought of being regarded as a Tory." thief!" lack of understanding of economic These, then, are the conservatives: The same must be done for intel­ forces. Since it aistrusts both abstract the liars and frauds and parasites with lectual history. To the extent that con­ theories and general principles, it nei­ whom so many libertarians have fel­ servatism is a philosophy, it is an es­ ther understands those spontaneous low-feeling, because of historical acci­ sentially parasitical one. So far as the forces on which a policy of freedom re­ dent and wishful thinking. These are status quo contains institutions worth lies nor possesses a basis for formulat­ the power-lusters, by association with defending and preserving, it is· be­ ing principles of policy. Order appears whom some libertarians hope to cause of centuries of arduous labor by to the conservatives as the result of the achieve respectability. But conserva­ defenders of liberty, against the· unre­ continuous attention of authority, tives are not respected, exactly. They lenting opposition of conservatives. which, for this purpose, must be al- are in power, to be sure. But the feeling this engenders is not respect: it's the Patty Hearst Syndrome, or the Stockholm Syndrome, or the love that Winston Smith carne to feel for Big Brother at the end of 1984. But it isn't respect, and what rubs off in one's association with them is not respectability. A few years ago, the staffers of the libertarian magazine Inquiry were ac­ cused of "being in bed with the left." Jeff Riggenbach responded by saying, "That's because the left is better in bed." That's something for us to con­ sider when we're tempted to get into lilt's a new idea called 'government' - if it doesn't work, we can always drop it bed with the right. It's a lousy lay ... and and try something else." when you lie down with conservatives, you get up with sleaze. 0

42 Liberty Counterpoint

Freedolll is for Everyone (Including the despised "Rightists") by' Murray N. Rothbard

John Dentinger's essayon libertarianism and the right suffers from two major problems. It frequently distorts matters of fact, which is bad enough. But worse yet, it suffers from a wrongheaded perspective. One would never know from Den- tinger's account that the Brigg's Initia­ tive of 1978 was opposed by the Liber­ ism-in-favor-of-atheism-and-abortion." It was·profoundly hostile to the Estab­ tarian Party of California, was (I have elsewhere referred to them as lishment and to State power. vociferously denounced by the LP, and the "left wing" of the Reagan move­ It is true that the Old Right was not that in my recollection not a single Li­ ment.) But Henry Mark Holzer's de­ anarchist. But neither was it a·part of bertarian supported it. One .would nev­ fense of the Bowers v.Hardwick d eci­ the Right that Dentinger denounces. er know from Dentinger's raking over sian, which upheld Georgia's barbaric Should Nock, Flynn, Chodorov, Morley the old bones of the Ron Paul DC sod­ anti-sodomy law, must have been as and Mencken be eliminated from the omy law vote in 1982 that this issue has surprising to Reason's editors as it was libertarian movement because they been discussed ad nauseum, and that to me: several Reason-connected writ­ are not anarchists? If so, it would seem the issue was a complex one, with Paul ers protested Holzer's desertion of the to follow that all minarchists, no matter reluctant to accept a package deal that libertarian position. how hard core, must also be purged. Is would have substantially lowered the Even worse than Dentinger's this what Dentinger wants us to do? penalty for rape. (Or perhaps Denting­ egregious errors of fact is his appalling Dentinger, moreover, writes of a er considers rape a "victimless intellectual perspective. "number of libertarians" who support­ crime"...) And Dentinger's reference to First of ale he fails to recognize that ed Reagan over Ed Clark for President "substantial heated opposition" to the words "conservative" and "Right­ in 1980, in a way that almost makes li­ Norma Jean Almodovar's candidacy ist" cover a multitude of diverse posi­ bertarians as a class responsible for for Lieutenant Governor willfully ig­ tions.ln particular, the right wing we all the eight years of Ronald Reagan. It is nores the fact that Norma Jean had no know and detest-the Reagan­ clear that Dentinger and I, fortunately, opposition in the LP primary. Indeed, Buckley-Kirkpatrick-CIA-National Re­ do not travel in the same libertarian almost every issue since then of such view-Human Events Right Wing is circles. I don't know of any libertarians leading libertarian periodicals as LP very different from the Old Right that who voted for Reagan, and I don't News and the American Libertarian predominated conservative ranks from know how you could call them "liber­ have included warm Inessages of sup­ the mid-1930s to the mid-1950s. The tarians" if they did. Ed Clark got port for Nanna Jean in her battle current Right is indeed power-hungry, 920,000 votes for President in 1980, and against the state, with not a single war-mongering, dictatorial, and theo­ I gather that this legion included virtu­ voice to the contrary. cratic. But it is very different from the" ally all the libertarians who voted that I have yet to figure out why it was a Old Right. year. As for myself, I have attacked Ro­ Rightist sin for Libertarians to oppose The Old Right is very libertarian. nald Reagan, consistently and bitterly, the reelection of Rose Bird. Or is Den­ Yes, it is populist, Christian, and anti­ day in and day out, from the beginning tinger maintaining that it is a libertari­ Establishment. The Old Right of Albert of his reign until the end. Somehow, I an duty to rush to the support of all be­ Jay Nock, John T. Flynn, Frank Chodo­ missed seeing John Dentinger in the li­ leaguered leftists? rov, Felix Morley, Colonel McCormick, bertarian anti-Reagan ranks until this In his discussion of Reason maga­ and Robert Taft was strongly opposed essay for Liberty. zine, Dentinger is on slightly firmer to war and militarism. It fought con­ Dentinger mentions a few benight­ ground. Reason unfortunately does scription and strongly supported civil ed libertarian ex-YAFers from the 1969 have Reaganite tendencies; its views liberties. It defended free enterprise, split who later backslid into the conser­ may well be characterized as "Reagan- the free market and the gold standard. vative ranks. But the majority of those Liberty 43 who didn't drop out altogether, have of this campaign is that Paul is an Old wrong with this, except that many liber­ remained libertarian. Karl Hess, Jr., Right libertarian in the best sense, and tarians have habitually and wrongly Sam Konkin, Ralph Fucetola, Dave that his 1988 campaign has the won­ acted as if religious people in general Walter, and Don Ernsberger, for ex­ derful potential of reactivating a large and Christians in particular are pari­ ample, have remained firmly libertari­ number of instinctively libertarian and ahs and equivalent to statists. This per­ an. anti-Establishment Americans, men nicious attitude, combined with ag­ Yes, indeed, Ayn Rand usually and women who, for thirty years have gressive luftmenschship, has managed backed conservative Republican politi­ been deprived of articulate libertarian to turn off a huge number of middle­ cians. But, even though her philosophy leadership. The Paul campaign can class Americans. I remember one time influenced many libertarians, it is rouse these numerous Americans when my magazine, the Libertarian ludicrous to refer to her as a from their frustration and torpor and Forum, included an article about Pro­ "libertarian" when she herself, bring them into the libertarian move­ testants and liberty. One libertarian passionately and caustically, kept ment, at the same time enlarging the asked my publisher, in bewilderment, denouncing libertarians as the ranks of libertarianism to make it a "why does Murray have an article quintessence of evil-a line continued powerful force in American life. To fail about Protestants?" "For one thing," by her dimwit and robotic followers to to see the profound difference be­ my publisher replied, "there are a lot this day. Surely, then, libertarians can tween, say, Ron Paul and Jack Kemp, is more Protestants in the United States in no way be held responsible for to throwaway one of the great opportu­ than there are libertarians." Indeed. Rand's aberrant political views. nities for libertarians to have a signifi- In all the talk about "outreach" On Bork and "judi­ among libertarians, I cial restraint," once never hear a word again, there are surely about outreach to no more than one or The bell has tolled for the old Christians. In keeping two misguided libertari­ comfortable days when libertarians were with this hostility, the ans who support the only reference John Frankfurter-Bork doc­ only a small group of marginal people Dentinger has to trine that the duty of cut off from American life. Christians in his article the courts is to place is to the "hate-filled re­ the stamp of constitu­ Freedom is for Everyone, including ligious right." Of tional approval on any mainstream Americans... course, we have to and all exercises of strongly oppose the power by the Congress theocracy of the Moral and the Executive Majoritarians. But· the Branch. At the Seattle convention, the cant impact on American politics. It is religious right is not the sum and sub­ Libertarian Party overwhelmingly reg­ an opportunity that might not come stance of Christianity in America. And istered its opposition to Judge Bork again. · I have yet to see Dentinger or the Fife­ and everything he stands for. But I wonder if John Dentinger niks roll out the welcome mat to liber­ Dentinger's sneering reference to wants such an opportunity. He appears tarian-minded Christians. I think that "conspiracy analysis" as "right-wing" is to be a spiritual comrade of the Mean­ the hostility to Ron Paul by Meansians even less excusable. Anti-Trilateralist sians who have organized FIFE (''Free­ such as Dentinger reflects their dim "conspiracy" analysis-or what I prefer dom is for Everyone"). But for Den­ perception that the bell has tolled for to call "power elite" or "interest group" tinger and the Fifeniks, it·seems that the old comfortable days when liber­ analysis-is neither right-wing nor left­ Freedom is not really for Everyone, but tarians were only a small group of mar­ wing. As a matter of fact, the best only for hippies, Zuftmenschen, and ginal people cut off from American scholars who are Anti~Trilateralist are special-interest minority groups. For life. Yes, Freedom is indeed for Every­ leftists: Holly Sklar, Carl Oglesby, and Dentinger and the Fifeniks, is Free­ one, including the large number of Lawrence Shoup. What anti­ dom also for Anti-Establishment right­ Americans scorned by. Dentinger and Trilateralism is is anti-Establishment,. ists? Is Freedom for the average company, and this is precisely what Dentinger is not alone among libertar­ middle-class American? Is Freedom they are complaining about. ians in viewing the Paul campaign's for people who wear suits, ties, or Finally, he concludes his astonish­ anti-Trilateralism as not being "re­ dresses? ing defense·of guilt by association, with spectable." But this misses the point: it And, in particular, is Freedom for the tacky charge that "when you lie is damn sure not respectable, but it is Christians? The libertarian movement, down with conservatives, you get up correct. The importance of "conspiracy and the Libertarian Party, will get no­ with sleaze." John Dentinger carefully analysis" is that, to the discussion of where in America-or throughout the omits one crucial fact. In the course of which policies are right or wrong, it world-so long as it is perceived, as it pillorying Reason magazine as one of adds an important dimension: that sta­ generally is, as a movement dedicated the worst of these conservatives, tism is not just intellectual error on the to atheism. Nock, Morley, Chodorov, Dentinger somehow forgets to point part of statists; it is a bunch of special Flynn et. al. were not atheists, but for out that he himself is a regular colum­ privilege groups ripping us off and in various accidental reasons of history, nist for that self-same Reason maga­ the name of the general welfare. the libertarian movement after the zine. I do not want to dwell on the Ron 1950's consisted almost exclusively of How about it: Why don't you speak Paul campaign here. The importance atheists. There is nothing inherently for yourself, John? 0 44 Liberty Essa)'

Can Computers Save the World? by Ross Overbeek

Last year, at the annual meeting of the Eris Society, one of the more-or-less libertarian conclaves I occasionally attend, a gentleman claiming to be a financial expert ex­ plained that the concerted effort to raise the cost of Japanese chips would have little impact, since computers already had enough memory and pow- er. I recently heard a friend express the view that the main effect of the expressed in words, it may not save you 1980s, many schools and research insti­ computer revolution was.to introduce from mistakes, but it can change you tutions used a single VAX as their sole word processing and spreadsheets. in subtle ways. computing resource. These short-sighted staternents on In this essay I will attempt to share In an article in the Wall Street the potential role computers will play with you this vision of the future. Journal in 1984, a DEC engineer com­ in our society caused me to reflect. I mented that the set of chips required I will first discuss certain commonly realized that there is an explicit "vi­ to construct a VAX was valued at about known technical facts relating to pro­ sion" shared by many computer scien­ $30,000. However, he added that DEC jected improvements in computing tists that is not commonly understood. would probably be able to produce the hardware. Although these facts. form While many people do experience a set for about $1 by 1990. only the background for the sources of somewhat diffused "rush" at the idea Think about that for a minute. real excitement, they are so breathtak­ of millions of computations per sec­ Think what one could do with a $1 Vax. ing in themselves that they require a ond, few except for computer scientists If you are manufacturing a $20 clock few comments. really appreciate just how much the radio, and if for a marginal cost of $5 quality of life will be altered by com.;. Then I will turn my attention to the you could add the computational cap­ puters during the next few decades. real cause of the excitement: the use of abilities of a Vax to it, could you really As I see it, the continued.growth in the computer as an "intelligence am­ afford not to? It would transform an the power of computer technology will plifier." It is this role of the computer isolated appliance into a component in result in more significant changes in that is so revolutionary and fascinating. a network. You could communicate the way we live than even the Industri­ Finally, I will· discuss the late-night with your clock radio, viewing it as an al Revolution did. It will fundamentally dreams that haunt an increasing num­ integral component of a machine that change the way we earn our livings, the ber of researchers. included your car, your TV, and a cen­ way we get along with one another, the tral computational resource. You could way we deal with reality. The Background ask your clock radio to give you stock I have asked myself repeatedly It is widely known that computers quotations, and it would answer within why, as a scientist, I am willing to dis­ have substantially increased in power a second or two. On a cold day, you play unadulterated optimism. Obvi­ over the last two decades, but most could ask it to start warming up your ously there is a possibility that the people lack a sense of just how much car and schedule a meeting at 9:45 at technological paradise I project may they have improved or how rapidly the your office. Would such gadgets really never actually exist. But there is a gen­ technology is now progressing. To benefit you significantly? Maybe not, uine possibility that such a quantum reach a basic estimate, it is useful to but even so, wouldn't you be tempted advance will happen, and people understand that performance is often to put up the extra $5? should come to appreciate its beauty. measured in "millions of instructions One of the new supercomputers This realization can induce an elevated per second," or "mips" in the parlance that will be released in 1988 or 1989, the euphoria resembling a religious exper­ of computer scientists. (This leads to Cray 3, will have about 100 times the ience. Upon reflection you may well the peculiar linguistic construct of a 1 computational capacity of the Cray 1, wish to temper your optimism, but you mip machine [try saying a "1 mips ma­ the machine that dominated the su­ should for at least some brief· period chine"]). A machine manufactured by percomputing market in the early experience its pure pleasure. It's like DEC called a VAX 11/780 delivers 1980s. It will have 8 gigabytes of main seeing the Grand Canyon for the first about 1 mip. The VAX is powerful­ memory. That means that it can store time: the experience cannot really be powerful enough that during the early about 8 billion characters in its high- Liberty 45 speed main memory. The essential provements. Let me illustrate. To cross normal interface of a human pushing heart of the machine (including its pro­ the USA by foot, travelling about 20 buttons or grasping levers does not, is cessors and memory) will occupy a miles per day, takes about 150 days. To a sensitive interface allowing an espe­ space roughly the size of a loaf of cross by car, averaging 600 miles per cially accurate amplification of the hu­ bread. One Cray 3 will have more main day, takes about 5 days. To fly from man's desires. memory than the sum of all the ma­ coast to coast takes about 6 hours. The The problem of amplifying intelli­ chines that existed in the world in 1972, difference in walking and flying, ac­ gence is analogous in some respects to just fifteen years ago. cording to these figures, is about 600. the problem of amplifying dexterity. The Cray 3 is the work of Seymour Consider the implications of faster The overall goal of intelligence amplifi­ Cray, a legendary figure in high­ transportation. The reduction in time cation is to encode some aspect of hu­ performance computing. His ma­ from 150 days to 6 hours occurred over man intelligence in a way that will al- chines have consistently low a machine to delivered the highest reproduce an expert's be­ available performance. At COf!lputing is now going through a havior. a talk in 1986, the presi­ fundamental transformation, which in It is widely accepted dent of Cray Research that we can do this for mentioned that Dr. Cray many ways is analogous to the transition some types of intelligence. had been able to build a from small shops to factories. For exampIe, a human new system every 10 years, programmer can encode and that every new system exactly how a payroll had offered roughly 5 times the perfor­ a period of about 90 years. The reduc­ should be computed, and the resulting mance of the previous generation. tion of transportation delays and costs program can be used to reproduce the Now Dr. Cray believes that he will be made a major impact on the world. In behavior of thousands of humans busi­ able to design a new generation every regard to computing, we are talking ly writing payroll checks. This type of 3 years, and each new generation will about a change in magnitude that is encoding corresponds to a human's offer roughly 10 times the performance roughly 16 times as great (600 versus pushing buttons or moving levers to al­ of the previous generation. 10,000) occurring over a much shorter ter the motion of mechanical equip­ This shortening of the time be­ time span (13 years versus 90 years). ment; it works well for some tasks, but tween generations has some rather It can be argued that transporta­ for most types of activity a much more dramatic implications. It means that tion is far more fundamental to the "sensitive" or "complete" mechanism we can expect improvements in speed way we live (and will live) than comput­ is required. of about 1000 per decade. Of course, it ing, but this argument is wrongheaded, But the ambitions of computer sci­ may not be possible to continue this as I will argue in the next section. entists working on intelligence amplifi­ rate of improvement indefinitely. But cation go far beyond the computation even if it is sustained through the Intelligence Amplification of payroll deductions. Already, com­ 1990s, we will see machines offering Introducing'the term "artificial in­ puter scientists have developed pro­ 10,000 times the performance of cur­ telligence" in a conversation is to invite grams (called "expert systems") that rent systems by the year 2000. a negative reaction. For the computer substantially duplicate the diagnostic Computing is now going through a scientist, "artificial intelligence" is jar­ abilities of certain specialized medical fundamental transformation, which in gon for using computers to emulate doctors and petroleum geologists. many ways is analogous to the transi­ the thought processes of a learning Chess is one area where expert sys­ tion from small shops to factories. Un­ and thinking being. But for most peo­ tems have shown remarkable success. til recently most computers contained ple, "intelligence" is inherently an abil­ Although chess is not an activity of a single processor, and formulating in­ ity of cognitive beings, not machines. much economic significance, in com­ structions for the machine was similar "Intelligence amplification" better ex­ plexity it is similar to many other areas to planning the schedule for a single presses the concept involved; it does of human endeavor. I remember vivid­ human worker. Now, we are entering not presuppose that machines will de­ ly that as a graduate student in com­ an era in which single machines will velop any real degree of intelligence. puter science fifteen years ago, I be­ have thousands of processors. These In Waldo & Magic, Inc., Robert lieved that no machine would ever be machines will offer staggering perfor­ Heinlein introduced the notion of able to beat me. It seemed perfectly mances, but successful use of such "Waldos," sophisticated machines obvious that the type of mental activity capabilities will require a framework in that amplified the physical capabilities required to play serious chess was well which the distinct processors produc­ of a human operator. A Waldo is a de­ beyond any computing technology tively cooperate. This task is similar to vice that uses "mechanical gloves" to that I would live to see. Now I can buy the problem of setting up a large com­ monitor its operator's motions and games for $29.95 that consistently out­ pany in which many humans must sends this encoded information to a ro­ play me. cooperate to achieve a single goal. It is bot arm or hand, which does the physi­ Consider the advantages of expert not a trivial task, but it can be done; cal "work." The mechanical arms may systems over human experts: and, when it has been done, the impact be huge and capable of performing in­ 1. They don't die. Unlike human ex­ will be most impressive. credible acts requiring gr~at strength, perts that go through an extended Machines will become much or they may be tiny, capable of subtle training period, a relatively brief peri­ cheaper and faster. What is really im­ manipulations at the microscopic lev­ od of peak performance, and then portant is the magnitude of the im- el. What the Waldo provides that the gradual decay of abilities, these pro- 46 Liberty grams consistently reproduce their the study of logic and its applications ment. It is always painful to hear peo­ peak.per,formance indefinitely. from a discipline hidden in philosophy ple you respect make silly comments. 2~ Their expertise is "cumulative." and mathematics departments to a It is even more troubling when they are If one program can.play.exceptionally field of central importance in almost technical enough to mislead intelligent good openings, while another excels at all areas of human expertise. Some listeners. Consider remarks of the fol­ endgames, .it is relatively straightfor­ form of symbolic logic will likely turn lowing kind, which are typical of what ward to merge the approaches into a out to be the "Waldo" of intelligence many libertarian theoreticians think single product. amplification. about logic: 3. They can be, reproduced for pen­ A genuinely workable medium for Aristotle laid the foundation for nies. This. is a staggering fact: once effectively communicating expertise to logic, as he did for so many other some level of expertise is successfully a machine does not yet exist (it is also areas of science. In the case of encoded, the costs for reproducing it arguable that the means of communi­ logic, current researchers have can be almost arqitrarily lowered. cating expertise among humans still perverted this work by introduc­ The last point sheds light on the ec­ work quite poorly, too). However, there ing excessive formalism to dis­ onomic incentives of producing such will almost certainly be gradual, con­ guise an attack upon rational systems. I used to think that time spent stant advances. These will result in an thought. In extreme cases this developing chess programs was a total expanding sphere of applications. has even taken the form of reject­ waste. However, the hours spent dur­ Many people feel that most forms of ing the law of the excluded mid­ human expertise simply cannot be co­ ing the last year by.humans attempt­ dle ("A or not A"). To combat this ing to reach levels of play that are· well dified. But what type of expertise defi­ tendency I urge you to study below the better computer programs nitely cannot be encoded? Pessimists some obscure, pedantic book far exceeds the total.time spent creat­ almost inevitably suggest the areas of written by a scholastic in the Aris­ ing these systems. What .would it be art, literature, and sex. It seems to me totelian tradition. It will teach you worth to be able to deliver a program that conceding these areas to humans how to think better. that consistently made reasonably ac­ still leaves a lot of territory for the ma­ curate medical diagnoses, marketing chines. If the only effect of such an argu­ decisions, or trading recommenda­ ment were to enhance sales of a few tions? Logic mediocre texts in logic, no real dam­ Considering what has already oc­ The evidence that logic, in some age would be done. But that is not the curredin chess programs and in a va­ form, will be the key to how we eventu­ only effect. Such arguments direct riety of commercially interesting areas, ally represent knowledge is rapidly ac­ people away from studying an area it seems probable that the potential for cumulating. It is therefore peculiar that will be the source of one of the revolutionizing techniques of produc­ that most colleges do not even offer it most exciting advances in scientific tion is quite real. The cen- history. tral problem facing the The fact is that to un- new technology is to deter­ This transition has already begun, derstand modern logic at mine means of more easi­ the level required to dis­ ly encoding, enhancing, and the impact of automation is altering cuss issues relating to spe­ and ~}naintaining exper­ the industrial landscape in every devel­ cific axioms like the law of tise. The approach that oped country. What is interesting and, the excluded middle re­ has been used extensively quires substantial effort. since the early days of the perhaps, terrifying is the magnitude Before plunging into wa­ computer revolution is and speed of the transition. ters that deep, a person based on the use of a should build a background "computer programmer" in the fundamentals of skilled in communicating algorithms in their mathematics curriculum. In symbolic logic. For a person with some ---background or interest in computer by means of fairly arcane languages. some cases, this simply reflects the in­ This will have to go. We need to create ability of educational institutions to science, I recommend The Logical Ba­ a far more intelligible means of com­ react to change. In others, it reflects a sis for Computer Programming by Zo­ municating expertise to machines. strange turf struggle: since some form har Manna and Richard Waldinger; it The potential for successfully en­ of logic is frequently taught within a is a demanding text, but it does relate coding human expertise has led to the philosophy department, it is consid-: symbolic logic directly to topics that creation of "knowledge engineering," a ered inappropriate that a mathematics are central to computer science. After whole new discipline. One objective of department duplicate the effort. What reading a few chapters, a person can this field is to create a medium of hu­ is shocking in these cases is that the begin to determine whether the origi­ man-machine communication that will aspects of symbolic logic being used nal goals of Aristotle are really being allow knowledge to be encoded by hu­ within the computer revolution have subverted by such work. man experts directly. Early work has almost nothing to do with the topics Why Is This Stuff made it clear that, while symbolic logic taught in logic courses within most phi­ is not (at least in its current form) the losophy departments. Important? perfect medium, the final medium will The quarrel about "What is logic If these musings have any basis in be directly based on symbolic logic. and how should it be taught?" has reality, the computer revolution will re­ The ultimate .effect will be to elevate even penetrated the libertarian move- shape society over the next fifty years. Liberty 47 The forces created by this event will One of the more cogent versions of this that will take place during the next 5-15 cause massive reallocation of econom­ argument was recently advanced by years. The speculations about advanc­ ic resources. This transition has al­ Nils Nilsson, a widely respected mem­ es beyond that point make my com­ ready begun, and the impact of auto­ ber of the Artificial Intelligence com­ ments above seem tame. mation is altering the industrial munity. Since he is head of the Stan­ K. Eric Drexler's proposals for "nan­ landscape in every developed country. ford computer science department otechnology" in Engines of Creation What is interesting and, perhaps, terri­ and a former head of the American As­ are hard to distinguish from good fying is the magnitude and speed of sociation of Artificial Intelligence, his science fiction. ("Nanotechnology" is the transition. While the computer views will certainly be taken seriously. the use of incredibly tiny machines; revolution offers means for providing The argument may well form the "nano-" is the prefix for one billionth.) consumer goods at ever dropping pric­ kernel of a powerful attack on liberty. Drexler speculates about machines es, it also will inevitably af- built by molecular engi­ fect people and compa- neering that operate bil­ nies in ways that are far Where will it all end? lions of times faster than from pleasant. machines of today and As the economic value Will machines ever produce anything are many billions of times of specific skills drops, resembling the adaptive intelligence smaller. And Drexler is many workers (blue collar, not alone. Scientists of the white collar, and profes­ exhibited by humans? How fast and how caliber of Richard Feyn- sional) will be displaced. small can machines become? man (the winner of the As their number increas- Nobel prize for physics in es, the rather natural view 1965) have also talked that "the market has failed" will To give it the appropriate visceral ap­ openly about the possibilities of ma­ spread. There will be at least three dis­ peal, Nilsson quotes Wassily Leontief, chine built nanomachines. tinct types of attacks launched against the 1973 Nobellaurate in Economics: Most of the major advances that the market: We are beginning a gradual pro­ will occur during the next 15 years have 1. A very limited number of citizens cess whereby over the next 30-40 very little to do with anything that re­ will advocate the Luddite position of li­ years many people will be dis­ sembles human intelligence. But when miting the extent of automation. It is placed, creating massive prob­ I think about what might happen over commonly understood that such a po­ lems of unemployment and dislo­ longer periods of time, I reflect on the sition is counterproductive, and no se­ cation... In the last century, there evolution of natural intelligence, which rious movement based on it is likely to was an analogous problem with took place over an incredibly long peri­ arise. horses. They became unneces­ od, progressing at an extremely slow 2. Protectionism and subsidies to sary with the advent of tractors, rate. As scientists and engineers build support industries affected by the tran­ automobiles, and trucks... So what more and more advanced machines, sition will increasingly be proposed. happened t~ horses will happen what will prevent their developing gen­ Again, the danger of such measures is to people, unless the government uinely human-like intelligence? widely recognized and discussed in the can redistribute the fruits of the The real issues involve the pros­ popular press. While it is impossible new technology. pects of engineering intelligence, as for me to predict the degree to which opposed to evolving intelligence. Evo­ I suppose that one could point out our government will extend existing lution produced an adaptable organ­ that most horses now have a more lei­ subsidies, it seems likely that the wide ism capable of many forms of behavior surely existence than those of the last recognition that such efforts are al­ that advanced its chances of survival. century, but somehow I doubt that most always the result of powermon­ Is it possible that human engineers, re­ such an observation would end the de­ gering will tend to restrain our public flecting on the characteristics of the so­ bate. servants. lution produced by evolution, can 3. A third, far more intellectually gradually borrow aspects that have appealing tendency is already begin­ Late Night Projections utility to craft an intelligence that far ning to appear. The essence of this ar­ Where will it all end? The increas­ surpasses that of humans? gument is that: almost any economi­ ing power of computers, coupled with When I think of the subject in cally significant activity that a human advances in our ability actually to en­ these terms a.nd allow the engineers can do computers will be able to do code the way human experts arrive at working on these problems an extend­ better; while Ricardo's law of compara­ decisions, is leading to a rapidly ex­ ed period of time (say, several centu­ tive advantage may indicate that there panding set of applications. Will ma­ ries), it seems clear to me that engi­ will still be room in the labor market chines ever produce anything resem­ neered intelligence will eventually for humans, it is likely that the value of bling the adaptive intelligence surpass evolved intelligence. The human labor will be almost arbitrarily exhibited by humans? How fast and breakthroughs in chemistry, biology, depressed; a development capable of how small can machines become? and physics required to understand producing unlimited wealth should not While there are certainly limits to how humans function may seem fortui­ produce widespread misery, so we the speed of future machines and to tious when viewed from the perspec­ must begin considering "suggestions how far we will be able to~ shrink their tive of 10 or 20 years, but when viewed for dissociating income from employ­ size, we may be far from reaching from a somewhat longer perspective ment." them. I have only discussed events they seem almost inevitable. 0 48 Liberty Blood in the Streets: Investment Prof1Its in a World Gone Mad, the 19th century, Britain had the power by James Dale Davidson and Sir William Rees-Mogg. needed to convince other countries to Summit Books, 386 pp., $19.95. accept free trade. After defeating Napoleon at the Battle of Waterloo in 1814, Britain was militarily and economically the most powerful nation on earth. It used that "Blood in the Streets" power to impose on the world an inter­ national order based on freedom of the seas and free trade, while accumulating for itself a huge overseas empire. As time wore on, the technological advan­ R. W. Bradford Davidson and Rees-Mogg argue that tage enjoyed by Britain eroded and it recent history is best understood in gradually became less capable of im­ Blood in the Streets is offered to the terms of what they call "megapolitics," a posing its will on others. As the 19th cen­ world as an investment book, and that neologism they credit to themselves. tury came to its close, Britain was grow­ may be too bad. It's better than most, Megapolitics is "politics in the largest ing weaker and weaker in comparison to but investment books are an ephemeral sense... an attempt to analyze the most its competitors for world power. Britain lot. If they sell well, thanks to the clever­ basic factors that govern the uses of lost its economic advantages over the ness of their marketing plan and the power in the world." Megapolitical anal­ United States and Germany, and at the panache of their authors on the talk ysis focuses on factors that change the same time found the cost of maintaining show circuit, they can become best sell­ ability of people to impose their will on military supremacy by means of sea ers. But they rarely are remembered a others and the ability of others to resist power to be increasingly beyond its year after their publication. And they that imposition. means. are practically never taken seriously, ex­ The most important of these factors, The European wars of 1914 and 1939 cept by investors who lose their savings they argue, is technological change. For marked the collapse of Britain as a by following the advice. Those invest­ example, the development of automatic world power; although Britain was on the ment books that fail to reach that magic weapons made it possible for European winning side, the trends that began in "best-seller" status are forgotten even powers to build world-wide empires in the late 19th century continued: sooner. the late 19th century by lowering the Britain's economic and military power Blood in the Streets deserves more cost of political domination of less devel­ continued to erode. The defeat of attention than that. Its authors, James oped countries, foreordaining the loss of Germany left the field open for the Dale Davidson and William Rees­ political independence and destruction strongest competitor, the United States, Mogg, offer their readers far more than of the social systems of much of the to move onto center stage. Because advice on how to get rich or richer. Dav­ world. Similarly, the development of the Americans share a common language idson and Rees-Mogg offer a re­ tank changed forever the value of infan­ with Britain and profess similar policy interpretation of recent history in the try. Or so it seemed, until the develop­ goals, Britain's collapse was not immedi­ guise of an investment book. Their in­ ment of cheap anti-tank missiles light ately apparent. vestment advice is ephemeral, but their enough to be carried by a single infan­ In the meantime, the other potential re-interpretation is powerful. And unless tryman. Curiously, after specifying tech­ competitor for world dominance, Russia, the investor can understand how the nology as the most important factor, shot itself in the foot. With its vast land world's economy got the way it is, he Davidson and Rees-Mogg never specify area, huge population base, and im­ cannot understand how it really func­ any others. mense supply of natural resources, Rus­ tions, much less have any hope to The most intriguing element of the sia had the ability to become a tremen­ speculate intelligently about the future. book is the interpretation of recent in­ dously productive economic power. But The book has three parts: a discus­ ternational political and economic the Russians adopted a authoritarian sion of the authors' approach to history, which I will try to summarize economic sys~em which stifled its eco­ historical analysis, a re-interpretation of briefly. nomic development, reducing Russia to recent history, and a discussion of the World prosperity depends on free­ merely a military competitor. implications of this analysis for dom to produce and trade, they argue, As the period of American domi­ investors. (Its title comes from the fa­ and such economic freedom appears nance continued, the U.s. was subjected mous maxim of Nathan Rothschild, only when a single political entity has to the same sorts of problems that be­ "The time to buy is when blood is run­ the means to prevent other states from gan shifting Britain into the shadows a ning in the streets.") effectively limiting that freedom. During century earlier. The cost of defensive Liberty 49 military competition declined (remem­ other ascending world powers adopted nomic analysis. The way in which tech­ ber the cheap anti-missile tanks) and such a policy? It was this argument, after nology is integrated into "the capitalist the cost of maintaining a powerful offen­ all, that ostensibly convinced Britain to means of production" in Marxian sive military establishment for· the U.S. adopt free trade. thought is analogous to the way in which increased. As the 20th century nears its Did Britain advance free trade to Davidson and Rees-Mogg portray tech­ end, the U.s. is on the verge of falling gain an economic advantage over oth­ nology as a tool of political "structures," from supremacy. What the future holds ers, or did Britain gain an economic ad­ though these are not "super-structures" is uncertain: perhaps· Japan will take vantage over others because it followed in the Marxian sense. Of course, David­ center stage (it· has the economic means a policy of free trade? The two events­ son and Rees-Mogg are not advocates but eschews military activity); perhaps Britain's pursuit of free trade and Brit­ of a Marxist "sociology of knowledge" we will enter a period of international ain's relative prosperity-were simulta­ and do not labor under illusions as silly anarchy with no great power imposing neous; simple observation and historical as the labor theory of value. its order on the world. analysis cannot determine which phe- Blood in the Streets is intended for a Neither this interpreta- broad market, and it is tion of recent history nor certainly not difficult their approach is entirely The United States is on the verge of reading. But its readability is novel, of course. This inter­ lessened by some stylistic pretation of the past 200 falling from supremacy. What the future peculiarities. The flow of the years is quite well known in holds is uncertain: perhaps Japan will take book is broken up by an classical liberal circles; a incredible number of very similar view is popular­ center stage, or perhaps we will enter a interruptions. The 22 page izedby the Economist, for period of international anarchy. Introduction, for example, is example. The identification interrupted by twenty-five of technology as a major de­ different subheads set in terminantof historic change three different typestyles is a theme Karl Hess (among others) nomenon caused the other (or indeed, plus three lists and three inset has promulgated for years. And their in­ whether the two events were related quotations. The first chapter begins with terpretation of how political decisions causally.) the words, "Let us tell you a story," are made in response to the incentives It is this problem of sorting out cause followed by a two and a half pages of faced by the decision makers has a and effect in human history that makes discussion of the story and its great deal in, common with the "public the social sciences so confusing. In the significance, including two lists of choice" approach developed by James physical sciences, experiments can be conclusions we should draw from the Buchanan and Gordon Tullock. constructed and repeated to isolate dif­ story-all before telling the story itself. But for the first time in a popular ferent factors for the purpose of All caveats aside, I am convinced book, the historic interpretation is pre­ determining cause-and-effect relation­ that Davidson'sand Rees-Mogg's "meg­ sented in a fairly comprehensive man­ ships. But in studying human action, we apolitics" offers a valuable technique for ner, richly illustrated with historic fact are never in a position to repeat a understanding the world we live in. The and anecdote. experiment changing one element only. fact that it is not a perfectly comprehen­ So human history must be interpreted in sive tool does not mean that it is not a Madness or Method terms of antecedent theory, though the useful one. There are, ofcourse, problems with historian often does so unconsciously. I am reminded of an Aristotelian col­ this "megapolitieal" method. It can lead Theory is necessary to the under­ lege professor with whom I studied. He to a facile historical determinism. The standing of human action, but it cannot explained the value of reading Wilhelm danger that Davidson'sand Rees­ be developed from observation and ex­ Windelband's A History of Philosophy, Mogg's '~megapolitics" will degenerate perimentation. That is why Mises devel­ even though Windelband advocated into a variant of material determinism is oped the praxeological method of un­ Hegelianism, which is anathema to Aris­ increased by their failure to identify any derstanding human action. Underlying totelian rationalism. The Hegelian mod­ "major variables" except· technological all the data of human history is one un­ el of change as a mechanism of thesis, change in determining megapolitical deniable fact: man acts. Mises develops antithesis, and synthesis is nonsense, he trends. They show a proclivity to reduce his entire theory from this single propo­ told me; that is not the way change oc­ very complicated issues to rather sim­ sition. He calls his theory "praxeology," curs. But it is very similar to the way in plistic terms and narrow dimensions. which he defines as "the formal implica­ which philosophical thought develops, For example, they tell llS that Britain tions of the fact that men use means to and thus a study of the history of philos­ pursued a policy offree trade simply as attain various chosen ends." Theory, as ophy by means of the Hegelian model a matter of national interest: free trade such, is a tool of human cognition; the can be quite edifying. enabled Britain to prosper and to main­ development of such theory enables us Like the Hegelian model of change tain its economic domination of the to comprehend the otherwise as seen by my Aristotelian professor, world. bewildering complexity of human the "megapolitical" method of inter­ They dismiss without consideration history. preting history may ultimately be the argument that free trade is a policy Amusingly, Davidson's and Rees­ wrongheaded, at least if it is reduced to that enables 'alL participants to prosper. Mogg's treatment of imperialism and materialistic determinism. But it still of­ If free trade is in the· interest of an as­ their obsession with technology bear fers valuable tools for understanding cending world power, then why haven't considerable similarity to Marxian eco- human history. 0 50 Liberty dered or exiled hundreds of Russian art­ In Search ofMelancholy Baby, ists and intellectuals, people of near by Vassily Aksyonov. Random House, 227 $15.95 pp., mythic significance in a society where virtually the sole opening for a creative mind lies in the arts-music, literature, poetry. In Russia, a true term of contempt is • to call someone nekultura, uncultured or Stranger tn a Strange Land unlettered. In many places in the States, to be ignorant and disdainful of any­ thing resembling "high culture" is a mark of honor, not insult. So, what does a Russian literary light do when the All­ Union Academy of Special Privilege tells him to never darken the dacha door Mike Holmes published in Italy in 1980 without official again and he finds himself stranded in approval. The Russian authorities the land of Dr. Pepper and Wheel of Being a stranger in a strange land stripped him and his wife of Soviet citi­ Fortune? has never been easy. It is even harder zenship while he was on a U.S. speaking Well, it helps if you had been a when the stranger was once a member tour. Aksyonov replied (admittedly from member of the stilyagi, a name given to of the nomenklatura, the intelligentsia the safety of pleasant California sur­ the disaffected, Western-looking Soviet of a country with an ideologically oppo­ rounding): "To hell with them!" youth of the 1950's. In fact, Aksyonov's site view of the world from the country in Aksyonov's book describes the shock crowd thought that term didn't go far which he now finds himself living. But as of actually living in the society he had enough. "We're not stilyagi; we're State­ exiled Russian writer Vassily Aksyonov admired from afar, a society that treats niks!" Stateniks were sort of Russian aptly demonstrates in this slim but in­ intellectuals both better and worse than beatniks who believed that everything sightful book, being a member of the Russia does. American was better than anything Rus­ Russian literary elite may uniquely qual­ In Russia, and Europe in general, the sian. It is astonishing to read to what de­ ify one as an especially appreciative ob­ intelligentsia is a distinct class that is of­ gree these (usually) elite Russian youth server of American life. ten honored and privileged above simi­ bought the utopian Leave It To Beaver In Search of Melancholy Baby hasn't lar groups in more unstructured dog­ image and worshipped the be-bop jazz hit the best seller lists, but has been fa­ eat-dog America. In the States, Herr music that a mere decade later Ameri­ vorably reviewed in places like the Wall Doktor is grudgingly given a small can youth would reject. Street Journal and the American Specta­ measure of extra respect only if he is be­ In Search of Melancholy Baby is full tor. And rightly it should, for in the tradi­ lieved to be a member of the medical of odd vignettes of this youthful Ameri­ tion of de Tocqueville and numerous profession. If a mere physicist, philoso­ ca-worship by hep Red youngsters: a others in the past two hundred years, pher, sociologist or-lowest of the low-a daring boogie-woogie dance in the 50's Aksyonov the foreigner captures the "professor of literature," goes around led by the flying skirts of the daughter of unique elements that make the Ameri­ calling himself "Dr. So-and-so," the act a KGB officer, the widespread clandes­ can experiment special. is considered a sign of ego inflation by tine taping of a popular Voice of Ameri­ The 58-year-old Aksyonov was most commonsense citizens. ca jazz show on X-ray plates (apparently trained as a medical doctor, but became In Europe state-certified intellectu­ a decent substitute for vinyl if you know famous and honored as an author of als are often invited to join one or more how to do it), the melancholy poetry of a novels, short stories, plays and films. He prestigious "academies" sponsored by Soviet air force general, whose huge col­ flourished in the post-Stalin "thaw" as the government. They are given pen­ lection of American jazz (all purchased an intellectual rebel against the stultify­ sions and stipends and even such perks on the black market) was the main joy in ing dogma of the party line. As a mem­ as free train passes and special legal his life. The title of Aksyonov's book al­ ber of the closely knit world of celebrat­ treatment. In the West pampered intel­ ludes to the mythic land behind the jazz ed Soviet writers, Aksyonov led a lectuals of all stripes have long proved records worshipped by the youthful privileged though sometimes precarious sympathetic to statist ideologies. stateniks. life. He was no backwoods "Soviet real­ What is surprising about Russia is The sense of American cultural dom­ ist" hack. He travelled many times out­ the extent to which contempt, disgust, inance is both a pervasive subtext in the side of Russia and even published an indifference or outright hostility to pre­ book and, perhaps, its most important account of his first visit to America. His vailing political orthodoxy is tolerated insight for libertarians. It emphasizes father was a Communist official; his among the intelligentsia, and even allow the virtue of encouraging greater cultu­ mother became a well known historian to flourish, in the name of artistic li­ ral contact with the USSR. Like their of the gulag. She wrote memoirs of a Si­ cense. Certain hot-house intellectuals small-town US counterparts longing for berian exile that Aksyonov shared for a are recognized as such by the state ap­ the good times and bright lights depict­ time in remote Magadan, "farther from paratus. And the intellectuals value ed on American Bandstand and Hulla­ Moscow than California," as he put it. themselves at least as much as the State baloo ("we wouldn't be bored if we lived His novelistic re-creation of this experi­ does. To the educated Russian, Stalin is in California..."), culturally backward but ence (The Burn) became the proverbial not disliked because he murdered mil­ struggling-to-be-hip Stateniks hanging straw on the camel's back when it was lions of peasants, but because he mur- around Gorky Park listen to their smug- Liberty 51 gled-in American jazz (or these days, chine needs to make the lies ap­ to only half the sum the university had heavy metal) favorites and long to be pear true....When the Soviet press agreed to pay me." The first tax audit zipping along the Venice Beach board­ runs stories about the American was instructive, though perhaps Aksyo­ walk, grooving with the brothers and crime rate or the American drug nov learned only part of his lesson: sporting purple mohawks to attract scene, the CST (critically thinking I received many threatening letters blonde American goddesses. As a liber­ Soviet) brushes them aside. from Sacramento. Clearly the com­ tarian friend of mine once observed, "The crap they dish up to us. Any­ puter had me where it wanted·me. "the US is the world's Disneyland, where thing to discredit America." And Pay up or lockup. I could feel the the lights are brighter and everything making fun of television coverage bars striping my face. Wouldn't imaginable seems possible." of America has become a cliche. the KGB rejoice! Aksyonov relates a story about the "All we see is fires, explosions, and I went to see my accountant. late Ernesto "Che" Guevara, long lion­ plane accidents. If we're lucky, we ized by anti-American leftists here and ''You've got to save me, Charles!" I get a natural disaster." What they told him. abroad. According to the story, Che was don't realize is that American tele­ once an Argentinian version of a State­ vision shows much the same thing Charles Adams cast a practiced eye over the documents, smiled, nik, "wild about Hollywood westerns and and that there is little or no attempt the latest jazz." One day he stowed away to put any "positive" news on the and said, "1'11 do my best." on a plane shipping horses to Georgia. screen. A week later the manhunt came to Unfortunately, when arriving at the land a most unexpected end: the State In any case, as a direct result of of peanuts and rednecks he was beaten of California sent me a check for anti-Americanpropaganc:ia the black and blue and baked and starved $680. Not only did I not owe a pen­ CTS forms a picture of America as for three days in an empty airplane be­ ny; I had a refund coming to me. an ideal society, prosperous andro­ fore being sent home. "1'11 never forgive And you know, it never occurred to mantic. America is the country of them that airplane," Che supposedly me to threaten the state with the "Stardust" and "Serenade in Blue." told a poet friend of Aksyonov's. "1 hate cooler. Thousands of Soviet emigres were all gringos, their easygoing voices, inso­ cruelly disappointed with what they Also instructive is his visit to the Rev­ lent struts, confident leers, obscene found instead. olutionary Bookstore in Washington, smiles..." Well, how would you feel if D.C. Reminded (by a recent Russian Mickey and Minnie beat the story) of the alleged Ameri- stuffing out of you for sneak­ can repression of "progres­ ing into Disneyland...? Aksyonov's long and exasperating sive ideas," Aksyonov asks But this odd worship of encounters with the Immigration and for a book about Trotsky: things American by people brainwashed to think other­ Naturalization Service can only make those "Wel1. .." said one, hesi­ wise crops up in many plac­ of us native born breathe a sigh of relief at not tantly. es in Melancholy Baby, as having to deal with possibly the single worst "Actually..."said the when a Soviet officer along bureaucracy in government. other, playing for time. the Chinese border in 1969 "You see, Trotsky's view drunkenly weeps about what of the revolution was will happen to his imported rather one-sided," said Czech motorcycle if war breaks out with Aksyonov's experiences in becoming the first. the Chinese: American (and eventually a citizen) af­ ter being excommunicated by Mother "But we do have an excellent study "What about the Americans, Lieu­ by a professor at Havana Universi­ tenant? Are you scared of them?" Russia are entertaining. On his first trip across the country by ty," said the second, perking up. Whereupon he sobered up for a mo­ "Here it is. The Vicious Essence of ment and said in a firm voice, "Ameri­ car, he hands over his Russian driver's Trotskyism. II cans respect private property." license to an Arizona Highway Patrol­ men and bluffs his way out of a ticket "Not today, thank you," I said,."but Critical Overkill (he claims there is no speed limit in Rus­ perhaps you can help me with something else." I pointed to the In fact, this odd way of thinking sia), observing that Arizona cops are a portraits of men like Stalin, Mao about America can turn strangely indis­ lot like those in Kiev. His long and exas­ Tse-tung, and Ho Chi Minh. criminate, or "critical": perating encounters with the Immigra­ tion and Naturalization Service· can only "Which do you think is most at­ Soviet propaganda has piled up so make those of us native born breathe a tractive?" many lies in its lifetime that it now sigh of relief at not having to deal with gives reverse results: a certain "In what way?" they asked, con­ possibly the single worst bureaucracy in fused. brand of "critically thinking" Soviet government. His experience in paying citizen-and most of the new emi­ taxes was new, since one of the few ap­ "Well, in terms of male beauty." gres fall into the pattern-no long­ parent advantages of working in a totally They exchanged a look, frowned, er believes a word of it; the critically socialist country is that they don't bother and said disapprovingly, "An irrele­ thinking Soviet rejects both the lies you with income taxes: "1 was even so vantissue..." of Soviet propaganda and the naive as to inquire why the paychecks But along with these cut clips of scraps of truth the propaganda ma- sent to me by the university amounted Americana viewed through fresh eyes a 52 Liberty la Moscow on the Hudson (a movie works of literature as springboards for is passionate, creative, dynamic. that, surprisingly, Aksyonov thinks philosophizing." He describes the Nats­ Equality is static; it squelches all stinks), there are more trenchant obser­ boIs as sort of a Russian version of Na­ hope for a new and different life. In vations.Like the fact that, as most well zis, complete with a misguided view of the Soviet Union you are doomed travelled Americans learn once away the importance of military strength and to the life of a state employee, and from home, the US is a remarkably pro­ a pervasive view of modern moral decay. unless you turn thief, nothing in vincial place, just as New' York City, that Aksyonov notes that American Neo­ your life will change. After all, eve­ glittering queen of the night, is far more Cons, who otherwise fit the Natsbols' ryone is equal (except, of course, self-absorbed than any rural Hicksville version of "true American nationalists," for those who are more equal). In would ever dream of being. and thus are the "good guys," end up America, the land of inequality, But my greatest surprise was being part of the "bad guys" because your chance-the chance for you to American provinciali- change your life-is ty... We had the feeling waiting for you some­ that the TV weather re­ where in the chaos of port would give the To the educated Russian, Stalin is not economic freedom. temperature of the wa­ disliked because he murdered millions of You may never find it, ter at Nice, and the but the fact that it is depth of the snow cov­ peasants, but because he murdered or there gives your life an er on Kilimanjaro, that exiled hundreds of Russian artists entirely different per- the news would report and intellectuals. spective. on King Carlos's new One wonders why it shoes, the latest in- takes a Russian novelist to trigues in the central give us this kind of message. many of them are Jewish. Anti­ committee of the Chinese Commu­ Aksyonov says later on that: nist Party, and the penetration of Semitism, long a Russian nationalist If there was such a thing as an Marxism into the depths of New proclivity, is an overriding theme of this American Millionaires' Club, it Guinea. What we find is that if im­ movement. A concocted theory of "stag­ would represent the heart and soul portant international events do es" of decay is constructed to fit the of the country. Social demagoguery make it on the evening news, they NeoCons into the same boat as reviled has no place in a society where eve­ are relegated to the end of the pro­ "postmodernists" like Allen Ginsberg, ryone wants to be a millionaire, gram and are glossed over as Norman Mailer, Karl Shapiro, John Up­ where inequality encourages peo­ quickly as possible. The feature of dike and J. D. Salinger. Even the unor­ ple to pull themselves up by their the day is more likely to be a prim thodox Soviet intelligentsia plays games own bootstraps and earn more, young miss telling the world that with itself, lumping apples and oranges spend more. The consumer society she was sexually molested twelve together for the greater glory of their offers a new kind of equality, an years before by the principal of her misguided "theory" of national great­ equality based on the marketplace elementary school, a middle-aged ness. It is sad but hardly surprising to li­ rather than on Marxism or other cauliflower-eared dolt, who cate­ bertarians that one of the first new ten­ social theories. gorically denies the accusation. dencies to emerge from the smothering embrace of totalitarian Marxism in Rus­ Our stranger in this very strange land Later the situation is summed up sia is a form of National Socialism. has reached some valid and refreshing nicely: conclusions. Given the melancholic de­ Is it this a priori feeling of superiori­ The Romance of Inequality spair of our own home-grown intelligent­ ty that so isolates America from Eu­ What is heartening in all of this is sia, so seemingly anxious to trade the in­ rope, or is it America's isolation Aksyonov's response to the political and equality of the marketplace for a that keeps the feeling alive? In any cultural landscape he surveys. guaranteed place at the government­ case, it grates on America's well­ He recognizes the importance of di­ sponsored trough, perhaps libertarians wishers, even us new Americans. In versity and inequality, the latter a decid­ should advocate mandatory (just this the Soviet Union we pictured edly unfashionable quality: once) cultural exchanges with the So­ Americans as "citizens of the ...American society is based on the viets: we'll send them all the NeoCons world," cosmopolitans; here we find principle of ''benevolent inequali­ we can find (and throw in everyone pub­ them to be detached, withdrawn, ty." Yes, I've turned so "reaction­ lished in the last decade in the New sequestered in their American ary" that I now sing the praises of York Review of Books) for a five year planet. inequality! If you think about it, stint at the All Union Institute for But Aksyonov also has insights on though, you'll see that all moves in Overfed Intellectuals, in exchange for Soviet provincialism, especially on a cul­ the direction of socialism here every one of their Stateniks and they can tural movement known as the National have come to naught: they run con­ throw in the Natsbols to boot. Both Bolsheviks (Natsbols, for short), a term trary to the basic American idea of countries would undoubtedly benefit which he describes as a self­ romantic inequality. True, inequali­ from the experience, and we might find contradiction. "The Natsbols combine ty must be benevolent: it must en­ some new-found respect for dog-eat-dog Russian chauvinism with hard-line total­ sure all . members of society the capitalism in the process. itarian tactics. Following the time­ means to maintain their humanity. At one point, Aksyonov notes that "it honored Russian tradition, they use But once it has done so, inequality is hard for us to understand that as pa- Liberty 53 triotic as the great majority of Ameri­ anti-Americans of this world­ paradox of it all is that to remain cans are, they do not identify their coun­ [Nobel Prize winner] Gabriel Gar­ what it is, America must defend try with its government." If that senti­ cia Marquez included-are ene­ even its own anti-Americans. ment is so readily obvious, why does the mies of freedom and friends of a Amen to that, Brother Aksyonov, "democratic socialist" wing of the Dem­ global concentration camp. The amen. And welcome home, stranger. 0 ocratic party (or its spiritual counterpart on the right, the Bismarckian imperialist wing of the Republican party) lay claim to nearly all the intellectual and cultural The Rise of Urbanization and the Decline of Citizenship, leaders in the US? Aside from a few by Murray Bookchin. Sierra Club Books, 1987, $22.95 heretical economists, nearly every politi­ cal utterance by our home-grown intelli­ gentsia ultimately defaults to the notion that "government is the people" and thus required to intrude more and more into the people's lives. The theme of the recent Libertarian Left;..Anarchism at Wit's End Party national convention hiton an im­ portant subject, the Culture of·Freedom. But having no recognized cultural repre­ sentatives in attendance in Seattle sup­ Terry Inman state. "Politics" refers to the body­ porting libertarian ideas in politics, the politic's decision-making process and convention theme ironically demon­ "The Rise of Urbanization and the the policies which are developed. "The strated just how bankrupt the US culture Decline of Citizenship," a new book by state" simply refers to the organization is of pro-freedom sentiment. If libertari­ Russell Kirk? George Will? Or, perhaps that administers these policies. This is a ans hope to rely upon the stray Russian Allan Bloom? No, Murray Bookchin, the proper distinction. But Bookchin does emigre novelist (a lei Rand or Aksyonov) leading "left-anarchist" intellectual of not address the question why anarchists to pass along libertarian values during our time. Yet there is little here that is ei­ would want to continue a political pro­ the process of artistic creation, any hope ther "left" or "anarchist." This is a reac­ cess without a state to carry out its deci­ of establishing a permanent bulwark tionary book by a well-intentioned elder­ sions. against the cancer of statism (in its myri­ ly man, whose heart and mind are The central problem with Bookchin's ad forms and disguises) is going to be hopelessly stuck in the middle ages. work, however, is its misrepresentation very slow going. Socialists once managed to present of capitalism. Bookchin usually attacks But, for a cheerier note, let Aksyonov themselves as the "left" by advocating a capitalism for isolating individuals in the have the final word: socialism that would transcend capital­ social sphere, but early on he attacks it What the Soviets cannot fathom is ism, either through revolution or evolu­ for bringing people together economi­ that America's "fragmentation" (in tion. Bookchin, however, expressly calls cally, quoting Claude Mosse: "To build other words, its diversity) is the for a return to pre-capitalist societies one's own house, one's own ship, or to source of its magnetic strength. If and values. And rather than calling for spin and weave the material which is America. was unified along Soviet genuine anarchism here, Bookchin calls used to clothe the members of one's or Iranian.lines, it would no longer for a form of limited government­ own household is in no way shameful... be America. It must therefore in­ governments limited to the rule of cities. But to work for another man, in return still in its population a passionate Bookchin makes some interesting for a wage of any kind, is degrading... desire to defend its multiplicity, its distinctions. We are reminded that "citi­ there is really no difference between the ferment, its intellectual and aes­ zen" did not originally mean person of artisan who sells his own products and thetic waverings, its hedonism, its the nation, but person of the city. This is the workman who hires out his services. morality, its ecumenism, its ethnic a person loyal to his city, mind you. Loy­ Both work to satisfy the needs of others, variety, its Anglo-Saxon founda­ alty is as important a virtue to Bookchin not their own. They depend on others for tions, its generosity, its technology, as it is to other social conservatives. We their livelihood. For that reason they are its elemental counterrevolutionary are also told that a true city is more than no longer free." spirit, its hope for a new liberal era, an urbanized piece of land. True cities, Bookchin says that it is merely an and all its capitalists, tramps, sup­ virtuous cities, are seen as "distinctive "entrenched bourgeois myth that the er-stars, farmers, union members, cultural and physical entities." The true free man is an atomized buyer and sell­ journalists, politicians, feminists, purpose of cities is to serve as "ethical er whose choices are constrained by his priests, ministers, homosexuals, arenas with a uniquely civilized form of own psychological and physical infirmi­ lesbians, sectarians, fortune-tellers, consociation, free of all blood ties and ties." The Athenian citizen "would have postmodernists, wrestlers, street family loyalties." seen beyond the arrogance of this self­ musicians, gamblers, refugees, We are also told that "traditional deception into the pathos of the bour­ punks, models, film-makers, stock­ conservatives and anarchists" are mis­ geois citizen's clientage to the powerful, brokers, go-go girls, tax inspectors, guided in calling for the "outright aboli­ his aimless pursuit of wealth, his reduc­ tion of life to the acquisition of things." yes, even its real estate agents... tion of 'political power.'" Just as the state is to be distinguished from society, so We are deceiving ourselves! Bookchin cal~ Let me a spade a spade: the politics is to be distinguished from the says so! Apparently, jibes like this are 54 Liberty what he expects to convince intelligent tonomy and independence, becomes a context. people. seemingly asocial being whose very Bookchin's tongue is loaded with ex He tells us that in pre-capitalist freedom is denuded of vital traits that cathedra pronouncements. He often times, man was "communized," but cap­ provide the necessary flesh and blood speaks of "morality" as opposed to ego­ italism "leads to privatization of the self for genuine individuality... the ism,and a "moral" economy as opposed and its disintegration into mere egoism. 'autonomous individual,' lacking any to a market economy. Yet, we are pre­ The city, in turn, is no longer united by community context, support systems, sented with no philosophical system of any sort of ethical bond. It becomes a and organic intercourse, is disengaged ethics, or even a definition of 'fmorality." marketplace, a destructured and .form­ from the character-building process..." Bookchin is talking to himself. Despite less economic unit, a realm in which the We may take Bookchin's word for it all his spiteful jibes at the bourgeoisie Hobbesian war of 'all against all' be­ 1that he feels he lacks a community con­ and bourgeois society, he never makes comes a virtual reality." text. The reader is left to wonder, any attempts to refute bourgeois ethics Things get still more exciting as the though, why the people we work with, the or defend his own. His left-anarchism book comes to a close. We learn that people we play with and the people we and socialism are apparently at wit's capitalism is engulfing the world like a love, do not count as a community ~d. 0 cancer and that urbanization is invading neighborhoods, villages and small townsi it is thrusting itself into the re­ 'Who Wrote the Bible? cesses of domestic and familial relation­ by Richard Elliott Friedm~. Simon and Schuster-Summit, 1987. ships and is subverting the "social The New Testament and Early Christianity, bond" itself. The Roaring Twenties with byJoseph B. Tyson. Macmillan, 1984. their "socially devitalizing .selfishness" let "morality go to the devil." "Merciful­ ly," we are told, "the Great Depression of the 1930s froze this development for a decade." The Roaring Twenties, "with Going Beyond the Gideons [their] naive imagery of personal greed and vice," were bad enough, but the Fif­ ties brought "corporate greed and com­ mercialized vice, the marketing of man­ agerialism and suburban self­ Stephen Cox planation. A third person is a modern indulgence (material as well as sexual) mainstream Christian who is trying to as a new way of life and a new set of val­ This is· an age in which vociferous escape from the room so that he can at­ ues...social justice, idealism, and agrari­ supporters of paternalistic government tend a demonstration against aid to the an values of community gave way to pri­ often deduce their political and moral Contras. Certain that the social gospel is vatization, self-indulgence, and views from what they are pleased to the only gospel that was ever preached, suburban cookouts." think is a literal reading of the Bible­ or ever mattered, he remembers only Despite the hysterical tone, much of and friends of liberty are often unpre­ one line from St. Paul: "The letter killeth, this analysis is accurate-and very en­ pared to reply except with an invocation but the spirit giveth life." Nothing in the couraging. Bookchin's attitude toward it of the First Amendment and a. joke or Biblical text or its history concerns him reflects an uncritical adoption of Judeo­ two cribbed from Inherit the Wind. further. And finally there is the atheist, Christian-altruistic ethics. It never oc­ Some objective examination of Scrip­ who claims to be totally uninterested in curs to Bookchin that anyone might ture might be helpful, and I have two reading about the falsehoods of Scrip­ question these values or imagine other books to recommend on the subject. ture, but is full of his own explanatory forms of "idealism." He writes his books But to whom shall I make this rec­ theories about those falsehoods. to show that capitalism is in conflict with ommendation? I imagine a group of These four people fight like cats over them. Okay, it is. But in failing to present people locked in a hotel room with a and around the Bible, but none is curi­ any defense of what he takes for granted Gideon Bible. One person is a funda­ ous to learn anything new about it-to as virtuous, he misses the whole point. mentalist. He believes that the Bible explore the historical contexts in which He has no answer to the decadent contains within itself everything that is its major books were written (or even to among us who view egoism as a virtue necessary to explain its doctrine and his­ find out their approximate dates), to an­ and altruism as a vice. tory. He will not be interested in reading alyze the political and social pressures In Bookchin's suggestion for an either of the books I want to mention­ under which its writers and editors agenda for the future, he lets collecti­ although, curiously enough, he has in struggled, or to understand the process­ vism and statism roam unhindered. Ac­ his pockets a quantity of his own com­ es by which a wide variety of documents cording to Bookchin, to have a commu­ :mentaries, pamphlets, and printed ser­ came to be ~ccepted as canonical and nity context and overcome "the vacuity :mons, all of them written to explain the incorporated into something called the and triviality of life today," we mustmu­ document that supposedly explains it­ Bible. nicipalize our entire economy. All busi­ self. A second person is a New Age as­ Yet there is a fascinating and dra­ nesses are to be owned by the body poli­ pirant to spirituality. He has never read matic story in every aspect of this sub­ tic and administered by the city-state. Second Corinthians but is convinced ject/ and one of the most fascinating sto­ We are told that "the individual, left to that anything said by so stodgy a figure ries is that of the effort to put together his or her own destiny in the name of au- as St. Paul could not possibly merit ex- the thousands of textual clues that the Liberty 55 Biblical books offer ,about their own and zest. Still better, at every point he The Conquest of America composition and produce an explana­ explains the reasoning that leads him to Tzvetan Todorov tipn of what happened. This detective advance his interpretations. Richard Howard, trans. story, as Richard Elliott Friedman says in A companion book to Friedman's Harper & Row, 1984,274 pp. $17.95 his new book, Who Wrote the Bible?, Old Testament study might well be Jo­ has been in progress since people first seph B. Tyson's The New Testament and The title is perhaps a little mislead­ "noticed that the Five Books of Moses Early Christianity. Not so innovative or ing: this book is not about the European included "things that Moses could not so lively as Friedman, Tyson neverthe­ conquest of all of the American conti­ have known or was not l~kely to have less ranks high in clarity, objectivity, and nent, nor even about the conquest of the said." The work of detection has occu.. the ability to take the reader through his peoples of the landmass now known as pied some of the most ingenious minds process of reasoning. Like Friedman, he North America, and certainly not of the of the past few centuries, and,no ,final supplies a good account of the various area popularly known as "America," e.g., ~xplanation has emerged. Friedman, attempts to understand the history of the "United States of America." It is, in­ however" makes a major contribution to Biblical authorship, and his annotated stead, primarily about the Spanish con­ the history of the Old Testament's com­ bibliographies are an excellent guide to quest of the Aztec nation, and secondar­ position, announcing, important discov­ alternative ways of putting the puzzle to­ ily about the conquest of those eries and at the same time supplying a gether. He is sensitive, also, to the ideo­ neighboring peoples who were not a part highly accessible introduction to what logical implications of various ways of of the Aztec hegemony but didbecame has been done, in the past. Friedman is understanding Christian literature. Our a part of the SpCinish Empire. And it is especially ,concerned with the OT's cen­ conception of the way in which this liter­ about the dead, who did not survive the tral historical, narrative. He reveals the ature was produced-the degree to change of r~lership. ways in which its writers responded both which it was influenced, for example, by But what makes this book special is to the events of their times and to the the oral tradition of certain communi­ not that it is a history, a narrative of ~arlier writings with which they were ac­ ties, or by the requirements of evangel­ facts, but that it is an analysis-an inter.. qU,ainted. He shows how the political ism, or by doctrinal or political,contro­ pretation--of one of the most momen­ trials of the kingdoms of Israel and Ju­ versy-can make a very big,difference tous of one particular series of historical dah influenced Biblical writers, and he to our interpretation of what Christianity events. Todorov, a respected European explores in careful detail the manner in was (and is) about. A reading of Tyson's literary critic and semiotic theorist, has which the, Scriptures were complicated book, and Friedman's, would go a long chosen to look at the Spanish discovery and enriched by attempts to combine way toward correcting the facile dogma­ and cqnquest of the New World with a different accounts of history that were tism that appears on all sides whenever special eye to the clash of cultures, ide­ available in different documents. Fried­ the Judeo-Christian literary tradition is ologies,and "Weltanshaaungen."He man writes with a truly admirable clarity discussed. 0 states his theme as the "discovery self makes ofthe other," and it is this very moral concern ,which informs the whole work. Like any historian he retells many tales; like any good historian he has Booknotes pored over all sorts of primary sources; and he is familiar with most of the sec­ ondary literature on the subject. But the virtue of the work is his moral (and inter­ pretive) purpose, which is, I think, an ex­ Religion, Economics, teresting. Though aU of the essays are emplary success. and Social Thought basically attempts at historical interpre­ I recommend this work to libertari­ Proceedings of an International tation, this does not prevent the au­ ans concerned with the "Indian ques­ Symposium thors--or the many commentators and tion" (or, better yet, questions-which Walter Block & Irving Hexham,eds. discussants-from advocating and ar­ have recently been brought out of ne­ The Fraser Institute, 1986. guing for particular political and philo­ glect and into mind); to anyone who sophical positions. Indeed, it is amusing wants a fascinating and never boring ac­ This is a perfect book for thoseliber­ to witness the same sort of philosophical count of what Todorov rightly calls the tarians (who must number in the doz­ controversies among religious thinkers events that "mark the beginning of the ens, at least) who are very concerned as are found among libertarian thinkers modern era"; and to every self­ with the place ofreligion in society, and (mostly agnostic) in such tomes as Ma­ described "egoist" who still believes that in the various cases made both, for and chan's Libertarian Reader. "rational self-interest" is the most im­ againstliberty on religious grounds. The Lastly, I should confess: I did not portant sort of interest to come to terms essays are scholarly but generally well read every word of this book. But there is with in order to deal with social, political written, and several of them can only be absolution: one advantage of books such and moral issues. Concerning this last described, as fascinating. I found A.M.C. as these is that you need not feel guilty if point, I think this study of human values Waterman's essay "Christian Political you do not read every single contribu­ directs attention to where it is most de­ Economy: Malthusto Margaret Thatch­ tion; the utility of the volume can be served: interpersonal understanding er" and Imad, Ahmad's explanation of gained by picking' and choosing. Thank and valuation. -DS "Islamic Social·Thought" especially in- God. -David Sheldon II" continued on page 59 56 Libertll bounty hunter issue and, at Bogardus' urging, offers a huge reward for the cap­ Film ture, dead or alive, of the killers. Bogar~ dus and a riled-up "posse" gallop past the Mayfield house and Kip, playing sheriff, chases after them. At the McGaffey place, the mob gets involved in burning down the house and forgets Natural La'Wman about pursuing the brothers. The fire leaves the McGaffey's dog homeless, so it decides to run after its masters, who are hiding in the hills. Kip chases after the dog, and you, concerned about Kip's welfare, chase after him.·Sheriff Owens, who haslearned from you that it's better to "hunt alone, not with the pack," also Timothy W. Henderson Sheriff. I didn't mean to interfere. I was arrives at the McGaffey's hiding place, a only trying to draw his fire toward·me, so mountain cave. Using fire for a some­ Imagine you are Morgan Hickman, you wouldn't be hurt." Or, what more useful purpose than Bogar­ bounty hunter, protagonist of The Tin c.) "'Scuse me, Sheriff, but you forgot dus did, you cleverly smoke the boys out Star. You're "not the law," but you "work to sign my claim." and deftly take them alive. Which of the inside it, for money." Yesterday, you Days pass, and your five hundred following do you then do? brought in the carcass of Luke Jamer­ dollars of reward money arrive. In the Choose one: son, murderer, to collect your reward. time you've spent boarding with Norma a.) You render the McGaffeys help­ Mayor Kane made it clear to you that Mayfield and her son, Kip, you've grown less by tying them up, then blow their men of your profession are disdained by affectionate toward her and the boy. Kip brains out.· When Sheriff Owens pro­ his "decent folk." Refused a room at the is an energetic, enterprising youngster tests, you quell his objections by explain­ hotel, you spent last night outside of \Jvho's been raising pigeons to earn the ing that they'll be easier to handledead. town at the home of two other outcasts: a rnoney to buy a horse and "maybe a When Kip recoils from your violent act, half-breed boy you befriended,··and his dog." But despite Kip's determination, you blow the dog's brains out too, then widowed mother, whose proud Indian the Mayfields are of such modest laughingly explain that "life's like that" husband had been killed by racists. means that it's apparent his dream of and that he'd "better get used to it." Or, Now, with the autopsy completed, con­ ownership is only that. So, you spend a b.) You tie up Sheriff Owens and give firming your report that Jamerson had couple of bucks on an old paint named his horse, along with your own, to the been killed by only one frontal shot in a Dinky and give it to Kip. Kip's eyes light McGaffeys. You explain that the boys fair fight, you enter the office of young up like the Fourth of July when you hand aren't responsible for their actions, but Sheriff Owens to sign the claim that he him the reins, and he leaps into the that society is; therefore, the guilty party must also endorse and send to the saddle, shouting for joy as he gallops off. is not they, but mankind. In a coup de freight company that posted the reward. By way of apology, Norma says, "He grace of social justice, you give Kip's You make your mark, then hand the pen didn't even thank you!" "He sure did," horse to the dog, so it can comfortably to Owens, but before he can sign, Bogar­ you reply. "Didn't you see his face?" accompany the McGaffeys on their get­ dus, the town's tough guy and Owens' Mock-reprimanding you, Norma says, away.Or, chief competitor for the sheriff job, "You're too generous." Which of the fol­ c.) You take the McGaffeys, alive, shoots an Indian in the back, gunning lowing is your reply? back to town to be jailed until they can him down in the street. Owens, still a tin­ Choose one: stand a fair trial. When Bogardus and horn "law mule," tentatively approaches a.) "Hah! From now on that kid'll his mob come to hang the brothers, you Bogardus to arrest him. Bogardus lulls worship the ground I walk on. If I ever advise Sheriff Owens on how to prevent Owens with his talk, while slyly taking decide he's getting too uppity, I'll just the lynching. Kip, having been the first hat in hand and lowering it to his side. remind him how beholden he is to me, to locate the McGaffeys gets to keep not Just as Bogardus, his gun concealed by and that oughta slap him down good." only the reward money, which he gives his hat, moves to draw on Owens, you ()r, to his mom, but the dog as well. fire a single shot from across the street b.) "Oh, no, quite the contrary. It is I, If you chose the "c" answers to the and blast the gun from Bogardus hand. who should be grateful that he would ac­ foregoing questions, then you and the You explain your actions to the sur­ cept a gift from one whose soul is as "reel" Morgan Hickman see eye-to-eye. prised sheriff by saying which of the fol­ tainted as mine." Or, This (admittedly rather contrived) intro­ lowing? c.) "Don't fool yourself. A man lives duction is intenqed to acquaint you with Choose one: alone like me, he gets kinda selfish. If he The Tin Star by employing the method a.) "Too bad I stole your glory, Sher­ gives you anything, you can be sure he's by which we apprehend a work of the iff, but it's my policy to shoot anybody' gettin' his money's worth." story-telling arts, i.e., through identifica­ who draws a gun, whether they'reaimin' Before you move on, Doc McCord, tion with the tale's characters. Our un­ at me or not. A man's got a reputation to the town's most beloved citizen, is shot derstanding of ourselves gives rise to maintain." Or, and killed by the McGaffey brothers. what we choose to seek in them, but in b.) "Please pardon my intrusion, The mayor promptly flip-flops on the turn, the act of discovering those charac- Liberty 57 ters, of knowing them by being them, af­ damental forces and Mann's clear, sure, itual are one. Mann deftly depicts this fords us opportunities.to reaffirm and, nuance-sensitive visual plan. Black-and­ with a few, spare, rudimentary strokes in through the revelation of hitherto unac­ white (ev~n when deeply, finely edged a scene exhibiting the essence of motion knowledged intra-personal dimensions, by cinematographer Loyal Griggs) picture expression. The first shot is me­ to redefine ourselves. downplays the eye-catching scenery, dium close on Hickman's knee-to­ In the case of The Tin Star, this ap­ rendering it less of an "adversary" and shoulder area, as he demonstrates how proach is particularly apt because the returning it to the background, which in to draw and cock a gun in one fluid mo­ film is, in essence, the portrait of a man, turn "enlarges" character in relation to tion; in the background, a river's cur­ Morgan Hickman. Its form accords with it. Further, since The Tin Star incorpo­ rents sweep along in the same direction its function. All the cinematic elements rates a greater number of interiors than as Hickman's smooth action, echoing that constitute the film- the energy and grace of narrative content, dramatic Hickman's movement, and direction, pictorial composi­ suggesting the harmonious tion, musical score (which is Gunplay is no game, no way to glory, relationship with nature. delightfuD, editing and so no mere opportunity for showing off Next, in a similar composi­ forth-are supportive ofthis fancy moves. ' tion,when Owens (Anthony end. Critics who have redis- Perkins) draws his gun with covered director Anthony some awkwardness, the Mann's oeuvre have noted camera is angled to capture that The Tin Star stands apart from the Stewart films, black-and':'white, being his action going "against the grain" of those films for which Mann is most high­ the medium of. contrast, serves best to the river's flow, thereby conveying im­ ly regarded, five westerns starring James implement expressive chiaroscuro pressions contrary to those of Hickman Stewart. Because The Tin Star is differ­ effects in low-light conditions. A good in the previous·shot. ent, they brand it. a failure, but it is not. example of this is the subtle, touching, As this scene continues, Hickman re­ Actually, the dissimilarities deemed scenes in which Norma Mayfield sponds with a brief, elementary dis­ flaws by critical consensus are those.ele­ (played with wholesome vibrancy by course on the Inner Game of Gunfight­ ments of The Tin Star which,. rather than Betsy Palmer) hands Hickman a lighted ing. "Be fast when you go into·action," diminishing the film's effectiveness, candle.. Better still is a somewhat Mani­ he says. "Be fast with your muscles, most cogently elucidate Hickman's per­ chaean scene-ending, hearteningly but..." He pauses, pointing to his head, sonality. Often, Hickman himself, as re­ antithetical to Mann'spowerful early "deliberate here." Hickman's· spirituali­ alized by Mann and actor Henry Fonda, film noir efforts, in which the camera, ty is not muddle-headedly mystical. He is considered one of the film's chief lia­ situated in a hotel lobby, gazes straight­ indicates that being in congruence with bilities. In fact, his character.is the film's forwardly at Hickman as he is turned life necessitates an awareness of the im­ primary virtue. away by the desk clerk and walks, with mutability of death. (The idea of the uni­ The Stewart films tend to be sprawl­ easy, self-possessed gait, out of the ty of life and death is underscored later ing and turbulent because the protago­ shadowy room, ·through its open door, by the Doc McCord plot-thread: nist, though generally worthy and admir­ into a sun-filled street, pausing for a McCord is unexpectedly killed on his able, is conceived as a man in conflict perfect moment, backlit, centered, in ninetieth birthday, but just after deliver­ with nature; his struggles with the wilder­ the luminous rectangle of the door­ ing a baby boy christened with his ness and other men are both outward frame. name.) Hickman admonishes Owens, manifestations and symbolic represen­ The feeling conveyed in this frag­ "No decent man wants to kill. But if you tations of his inner grapplings with de­ mentis of an inner calm, an unshakea­ shoot, shoot to kill." And yet earlier, with sire and obsession. The Tin Star, by dis­ ble sense of balance that Hickman pos­ Owens as prime witness, he acted con­ tinction, is self-contained and coolly sesses, which keeps him unaffected by trary to this advice when he shot and dis­ composed because Hickman is a man the gawking and scorn of the townspeo­ armed the established villain rather who has achieved, to a significantly ple. The inescapable comparison here is than killing him. Hickman simply wants greater degree, mastery of self and of to Ethan Edwards, the John Wayne Owens to understand that gunplay is no the skills requisite to frontier living. character in John Ford's monument to game, no way to glory, no mere opportu­ From his core radiates a serenity that thedoor-as-cinematic-metap horical­ nity for showing off fancy moves. Death pervades his involvements, including device, The Searchers. In that film, is an ultimate fact of life; it is real and it occasions of heightened action or emo­ Edwards is separated from the fellow­ is final. Don't flirt with it. tion. ship beyond the portal, and therefore Though morally exemplary, Hick­ As the protagonists differ, so do the socially alienated, perhaps at times even man is no quasi-religious figure, by west­ films. All of the Stewart films, except the existentially isolated. Similarly, Hick­ ern or eastern standards. If he turns earliest, Winchester '73, were shot in man is set apart. from the community, from a confrontation, it is to avoid the color, a sensible choice considering their and yet (as played by Fonda with under­ folly of unnecessary violence, not to turn vintage ('fifties), setting (outdoors), and stated sublimity) he is content, if not ful~ the other cheek. And if he respects and emotional tones (vivid). But The Tin ly happy, with his aloneness. Further­ lives in agreement with nature, it is be­ Star, though it was made just a year or more, unlike Edwards, Hickman is able cause doing so has the utility of further­ two after these very successful pictures, to relate to the townspeople, but is re- ing his life. He does not attempt to lose was shot in black-and-white, for which it jected by them. - his identity by merging with some elu­ is ideally appropriate. It complements But Hickman is not transcendent; he sive ineffableness. both Dudley Nichols' screenplay of fun- realizes that the mundane and the spir- And Hickman, being human, has his 58 Liberty dark side. He is caustic in response to Booknotes shard's Reason and Goodness) that is on hostility and foolhardiness, though his my list of "required reading." - TWV rejoinders often function as veiled invi­ II•• continued from page 56 tations to discourse. And sometimes he The Politics of Procrustes Contradictions of Enforced Equality is bitter, especially when longing for his The Methods of Ethics Antony Flew, Prometheus Books, 1981 wife and son, who years ago had taken Henry Sidgwick sick and died while he was away tracking Seventh Edition (1907) Antony Flew has one of the more pe­ an outlaw for bounty money, having Hackett Publishing Company, culiar literary styles among contempo­ been unable to procure a loan from his 528 pp., $12.50 rary libertarians: like Nozick, there is an fair-weather friends. Many of Mann's element of quirkiness in his approach to protagonists, in the Stewart films and As John ("A Theory of Justice") Rawls the problems of philosophy and in his others, have experienced some similar states in his introduction to this edition manner of presenting his ideas. In this trauma, but for them, pain still affects of Sidgwick's classic work, The Methods book, however, his stylistic oddity is like­ their actions. For Hickman, it is receding of Ethics "is the first truly academic work ly to cause the American reader few toward memory's horizon as his life's in moral philosophy which· undertakes problems, though his British orientation course moves him further from it. He to provide a systematic comparative and examples may. even recounts it in the third person, as study of moral conceptions, starting with The title.and subtitle delineate his though it had happened to someone those which historically and by present subject.very well: the author has mount­ else. assessment are the· most significant." It ed a sustained attack on those who find Hickman has evolved sufficiently to is also the best exposition of the classic it admirable and moral to put humanity let go of the middle third of his life and form of utilitarianism, presented "warts on the "rack of equality" in order to enter, clear-eyed and resolute, into the and all," in a prose style that not only make a better society. With wit and last, a concluding age symbolized by rneets "academic" standards, but sur­ learning he explains, argues, demon­ Doc McCord. Included in the legacy he passes most similar efforts (including strates, and cajoles the reader into re­ will leave is the wisdom he imparts Rawls'). jecting the egalitarian "ideal." through word and deed to Owens, who is Sidgwick had a brilliant analytical Flew is not content to demolish egali­ just passing into adulthood, and to Kip rnind, and this work is unduly neglected tarianism, but goes after socialism as (Michel Ray), who is still a youngster, by contemporary students of ethical the­ well, and with great success. His chapter barely embarked on the first third of his ory. Because Sidgwick discussed not on "unintendedconsequences" is better life's journey. They, it is intimated, will only the classic form of utilitarianism, than most such examples of "invisible pass on this knowledge to people like but also the several forms of egoism and hand" arguments (which are becoming the new born infant. intuitionism, this work is especially help­ ubiquitous, and are often presented with Sadly, the type of character of which ful for those libertarians who reject-or little real explanation). Hickman was such a splendid example, are considering rejecting-the various This is not light reading, but is, nev­ the honest, intelligent, compassionate, "natural law" approaches to moral phi­ ertheless, a good curative for those independent, capable, self-assured losophy. Though far from perfect, it is (few?) "unthinking" egalitarians still ca­ man, is almost absent from contempo­ one of those books (such as Brand Blan- pable of thought. - TWV rary cinema-as is the western itself. Fortunately, one of the benefits of the r enduring arts (and film must be consid­ ered among them) is that works incorpo­ rating ageless values can be turned to Coming Next Issue again and again. As we have increased our desire for proper nourishment and exercise of our bodies, the market has The Critics of Barbara Brand_en, by David Brown responded by supplying products to meet our demand. Undoubtedly, if we promote the awareness that minds also I Go To Jail, by Franklin Sanders require more than junkfood, the market will again respond. 0 Why Libertarians Should Support the.Contras by .Gary Alexander The Tin Star Studio: Paramount, 1957 From Russia With Love, by Benjamin Best Producers: Perlberg-Seaton Director: Anthony Mann Plus: Writings by David Ramsay Steele, Cinematographer: Loyal Griggs William P. Moulton, Murray N. Rothbard and others. Story: Barney Slater & Joel Kane Screenplay: Dudley Nichols IIAvailable by subscription and wherever obscure Music: Elmer Bernstein libertarian periodicals are sold." Cast: Henry Fonda, Anthony Perkins, Betsy Palmer, Lee Van Cleef, Neville Brand, John McIntire, and Michel Ray. Liberty 59 be conversing about ideas, books, mo­ EthnocultUfal Obsefvation vies, politics and gossip. And not a single one would have any friends or relatives who died on the Eiger. If one were needed, empirical confir­ mation of this great truth was provided at this conference by the one other urban Me and the Eiger Jew in this gathering of WASPs. While in other contexts we might have been at by Murray N. Rothbard swords' point, here we were comrades-in­ arms. During breaks between sessions, the WASPs, all thin and hardy, climbed neighboring mountains. I happily re­ clined in my plush hotel room, watching the baseball playoffs (there is nothing here are ethnocultural gaps be­ So why not swallow a big dose of cya­ more soul-satisfying than watching other tween people that go far beyond nide because "it is there"? Climbing people engage in strenuous sport), while T ideology. I was forcibly reminded the Eiger is a striking example of what a my fellow Jewish-ethnic, fat and wheez­ of this truth when I recently attended a friend of mine calls goyim-nachas (gen­ ing at forty, ate double meals and fell scholarly conference at a beautiful rural tile-happiness). Note what I am not into a snooze. God bless him, he's the spot. The twenty or so conferees were all saying: I am not saying that every sin­ sort of person who made America great. intelligent, amiable, and scholarly, but I gle WASP talks about nothing but For those who have lived on another soon realized that there was an un­ winds and the soil and the ozone layer, planet and have never been introducd to bridgeable gulf between them and me. and is about to set out to challenge the this form of ethno-eultural analysis, read I'm not talking about the content of the Eiger. But I am saying that in a gather­ Philip Roth and watch Woody Allen mo­ conference, which was...a conference. ing of Jewish scholars, everyone would vies. That's what they are all about. CJ I'm talking about the conversation that permeated the place outside of the for­ mal sessions, over meals and over drinks. I soon realized, to my chagrin, that none of their conversation held the Classified Advertisements slightest interest for me. Not a word, not a thought, did they devote to human Classified Advertising is available for $0.25 per word, plus $1.00 per insertion. 10% off: culture-to ideas, books, movies, poli­ six or more insertions. Payment must accompany insertion order. tics, gossip. Nothing. Instead, they only talked about nature. They talked about Employment edition. $20. Send cash or check to "Mark the contents of the local soil, about the Skousen," Bahamas Banking, Box 2488, Win­ Work for Liberty-Literally! Liberty ter Park, FL 32790. winds, about why it is that the grass magaZine is looking for an editorial assist­ "Heiland" -Franklin Sander's novel of a freezes overnight more quickly if the cli­ ant/person friday to help with all aspects of mate is dry (or is it when humid?), about future dystopia...and an emerging utopia. $7 producing Liberty. If you are interested in postpaid. Moneychanger, Box 341753, Mem­ the ozone layer, and the eco-system. joining Liberty's overworked and underpaid phis, TN 38184. Yecch! staff, send letter or resume to Liberty Publish­ At one point, I perked up. Two of my ing: PO Box 1167, Port Townsend, WA 98368. Periodicals colleagues were talking about the "Ei­ Books /II am the first to admit I am no stock market ger Sanction." At last! I piped up: "Yes, expert. But I know an overbought market that was a great Clint Eastwood movie." Imagine Freedom from Governments and when I see one. In my judgment, there is no They looked at me as if I were crazy, Churches; a libertarian introduction. stormy doubt that a broad and steep decline will hit and I realized, with mounting horror, MON, editor. 188 pages, illustrated. Contro­ the market."-from Analysis & Outlook, Oct that they were talking about the real Ei­ versial. $4. Libertarian Library, Box 24269, 8, 1987, mailed to subscribers by first class Denver, CO 80224. ger, and how they had each lost several mail Oct 9, ten days before the stock market friends and relatives in their attempt to "Alongside Night" -J. Neil Schulman's crash. For subscription, send $36 for one year, climb the dread south face (or is it the exciting account of a libertarian revolution in or $10 for 3 month trial to Analysis & Out­ look, Dept L, PO Box 1167, Port Townsend, WA north face?) of the Eiger. 1999. Hardback copies. $5 each, postage paid! Liberty Bookshelf, PO Box 1167, Port 98368. Pro rata refund upon request guaran­ Let's face it: the difference is ethnic. Townsend, WA 98368. teed. I am willing to assert that there is not a single Jew who has ever climbed the Ei­ "The Dream Never Dies: A Convention Merchandise ger, of whatever face, or had the slight­ Diary" by Brian Wright. An account of the 1987 National Libertarian Party Presidential Gold and Silver- Liberty Coin Service est inclination to do so. Any Jew worth Nominating Convention. $6. Wayword, Inc., serves the libertarian community with low his salt regards any yen to climb the Ei­ 6689 Orchard Lake Rd., #249, W. Bloomfield, prices, same day shipments and friendly per­ ger as mashuggah (crazy) and the fa­ MI48322. sonal service. And we've been doing it since mous answer of Sir Edmond Hillary to 1971. For information write: Liberty Coin Ser­ why he climb~d mountains, ''because How to Open A Swiss Bank Account vice, 300 Frandor Ave, Lansing, MI 48912. Or they are there," as scarcely compelling. in the Bahamas -Mark Skousen's revised call toll free 1-800-321-1542. 60 Liberty Notes on Contributors

"Baloo" is the nom de plume of Rex F. May, cartoons are regularly featured in a local newspa­ whose cartoons appear innumerous magazines, in­ per. cluding the Wall Street Journal and National Re­ view. Mr May is the editor of The Trout in the Milk. Ross Overbeek, an associate editor of Liberty, is a research scientist at the Argonne National La­ R. W. Bradford is publisher of Liberty. boratory. Williarrz Cate is an adventurer and entrepren­ Sheldon Richman is director of public affairs eur who lives "somewhere in South America." at the Institute for Humane Studies at George Ma­ Stephen Cox, an associate editor of Liberty, is son University. Associate Professor of Literature, University of Cali­ Murray N. Rothbard is an associate editor of fornia, San Diego. Liberty and editor of The Review of Austrian Eco­ John Dentinger is a writer living in Los An­ nomics. He is Vice President for Academic Affairs geles, California, whose writings have appeared in at the Ludwig von Mises Institute and S.}. Hall Dis­ Playboy, Chicago Tribune, and Reason. He won the tinguished Professor of Economics at the University 1987 Free Press Association H.L. Mencken Award. of Nevada, Las Vegas. Timothy W. Henderson is a musician living in Sandy Shaw and Durk Pearson are research Los Angeles, California, with numerous studio, scientists who have written three best-selling books stage and screen credits. He is currently composing on nutrition, aging processes, and health. They pub­ material for a libertarian-themed musical project. lish The Durk Pearson & Sandy Shaw Life Extension Newsletter. Mike Holmes is also the Editor of the Ameri­ can Libertarian newspaper, and contributing editor Raul Santana is reportedly the pseudonym of fo r Liberty. a well known libertarian writer. Terry Inman is.World Spokesperson for the David Sheldon, late of Portland, Oregon, de­ Libertarian Student Network, and edits Show Me scribes himself as a "down-to-earth luftmensch." Freedom and Youth Connection. Timothy Virkkala is assistant editor of Liberty. Bob Ortin has a degree in applied math and physics from the University of Wisconsin. He lives Ethan O. Waters is a writer who lives in South­ in southern Oregon where his "Burons" political ern California. [ ] Los Angeles, Calif. Angeles restaurant, was prohibited from fraudulently offering the public pizza by the Department of Agriculture. "What he The dangers that police face in protecting the public, from didn't realize is that these regulations have the force of law," the testimony of Officer Kurt G. Karz in Los Angeles Superior said Judith Quick of the Department. Chef Puck had offered the Court, accused of "wrongful death" in the death of a suspect: public pizza made entirely from fresh ingredients. Regulations "I was in absolute fear that he was going to take my gun specify that pizza be topped with "tomato sauce," and the fresh away from me and use it against me. I fired my weapon to pro­ tomatoes Chef Puck tried to substitute did not qualify. tect myself." The· record showed the Officer fired six bullets at The Malagasy Republic his victim, who was nude at the time of his arrest. How the government sponsored vanilla cartel prevents Washington, D.C. capitalist exploitation of the farmers of this island nation, as Evidence of the personal sacrifices public: officials make in reported in the London Economist: pursuing high office, as reported in the University of Michigan Vanilla growers are paid less than $1 per pound for raw va­ nilla pods. Taxes raise the export price to $72 per pound, and Res Gestae: bring in over $60 million per year to the Malagasy govern­ While job hunting at a reception for losing Democratic can­ ment's treasury. didates for the U.S. Senate, Walter Mondale confided that his next job "would have to pay at least $500,000 and involve Houston, Texas little work." Evidence of the contemplative life of the man "a heart­ Los Angeles, Calif. beat away" from leadership of the free world, as reported in The Wall St Journal: How the Department of Agriculture protects consumers George Bush's residence in Houston, Texas, has 101 differ­ from fraud, as reported in The Wall St Journal: ent volumes of Reader's Digest Condensed Books. Wolfgang Puck, owner and chef at Spago, the famous Los Liberty 61 r Trelflfrul JI1J1l ec@g 1J1l Ii rtrul

Washington, D.C. Cleburne, Texas Another victory in the War Against Tax Fraud, conducted The repute in which the youngest aspirant to the Nation's by the public servants of the Internal Revenue Service, as report­ highest office holds the Bill of Rights, as reported by Molly ed in Accounting Today: Ivins in the Houston Post: A businessman was fined $10,000 for using a typewriter that "A young man who approached Sen. Albert Gore of Tennessee prints 12 characters per inch when filing his 1986 tax return. The and asked him to sign a Dead Kennedys record album (if unfamiliar businessman had failed to notice in the 16 pages of instructions with the Dead Kennedys, ask the nearest teenager) was promptly on filling in form 1099 that "All forms 1096, 1098, 1099 and arrested and hustled off to the hoosegow. 5498· must be prepared in accordance with the following instruc­ "Gore mistakenly thought the Dead Kennedys were one of the tions... Type or machine print data using a carbon-based black rock groups his wife Tipper has been trying to have warning la­ ribbon. Print must be in 10-pitch black type. Any other print is beled for dirty lyrics and that the episode was a plot to embarrass not acceptable." him. The kid just wanted an autograph." New Delhi, India Gyangste, Tibet Proof that publicly owned telephone companies are respon­ Further evidence of the liberalization in the People's Re­ sive to consumer needs while protecting the public from the abus­ public of China, as reported in the Los Angeles Times: es of private enterprise, as reported in The Wall St Journal: Kris Tait, a 25-year-old English tourist was stopped by a Chi­ A former cabinet minister brandished a pistol at the state­ nese soldier, who attempted to pull off her T-shirt, which featured owned Mahanagar Telephone Company demanding that they com­ a picture of Phil Silvers, who starred as "Sgt Bilko" on a U.S. tel­ plete a long-delayed telephone call to Bombay. evision show in the 1950s. The soldier believed the picture was a likeness of Tibet's exiled religious leader, the Dalai Lama. Ms Tait Washington, D.C. crossed her arms over her chest in resistance and eventually man­ Three good reasons to support Sen Robert Dole for Presi­ aged to escape, after a crowd of Tibetans gathered in her defense. dent, as reported in The Seattle Times: Lynda Carter, Joan Collins and actor-Mayor Clint Eastwood Washington, D.C. have endorsed Robert Dole's bid for the Presidency. Proof that spending millions on intelligence has been a Irvine, Calif. good investment for the citizens of the United States, offered in this dispatch from The Wall St Journal: The sacrifices law enforcement officers endure in the pursuit "U.S. officials were shocked to learn that more than 90% of the of crime, as reported in the Orange Coast Daily Pilot: CIA's agents in Cuba had been taken over and controlled for years Pamela Weston was found guilty of prostitution, after agreeing by the Cuban Intelligence Service, the DGI. The Cubans, intelli­ to perform a topless dance for $300 at a party organized by police gence sources say, 'doubled' most of the CIA's agents and put officers at the Marriott Hotel. By doing so, the woman had im­ them to work against their CIA controllers. They also fed bogus plied a willingness to have sex with the party goers. information to almost all the agents who weren't actually working The party was organized by undercover police officers from for them. three cities. A total of 19 officers participated in the arrest of "Although what happend in Cuba was an embarrassing setback Weston and another woman at the hotel. The officers did not ex­ to U.S. intelligence operations, it wasn't as damaging as other plain why so many officers were needed for the arrest, or why the failures. 'We have had a decade of counterintelligence failures,' officers needed a "bathtub full of beer" at the party, or why the of­ says an intelligence official. 'There is nothing the Soviets don't ficers photographed the naked hand-cuffed women, or why the un­ know about our most basic methods. '" dercover officer who convinced another woman to perform oral sex on him forgot to call the other officers so she could be arrested. OhkJ Chief of Police Arb Campbell commented on the conviction of Further reports of the battle against canine alcoholism, the dancer, "Justice prevailed." from the Buckeye State, as reported in The Wall St Journal: Turin, Italy Posters and cardboard boxes featuring pictures of Spuds Food for thought for Americans considering leaving the MacKenzie, the "party animal" wearing a Santa Claus suit have country in search of opportunities in other nations, as reported in been banned in Ohio. USA Today: Kelso, Washington "I miss McDonald's," said former National Basketball Associa­ Evidence of judicial progress in the wilderness of Washing- tion star Dan Roundfield. "We have food shipped in from the U.S. It takes two months for the boxes to arrive, but we have things ton State, as reported in The Seattle Times: like canned com, tuna fish, canned peaches, peanut butter and junk A recall petition based on charges that city councilwoman food." Diana Johnson, 29, bared her breasts in a bar was thrown out of court by a Cowlitz County judge on grounds that the charge con­ Gansu, People's Republic ofChina cerned Councilwoman Johnson's private life, and could not be the Evidence of the prosperity that scientific socialism brings, as reported in the London Economist: The official poverty line in China is 200 yuan (about u.s. (Readers are invited to forward newsclippings and other docu­ $38) per year. 'About 100 million Chinese live below it. ments for publication in Terra Incognita.) 62 Liberty News You Can't Get Anywhere Else

The LibertariaIl Movement is politically alive and intellectually prosperous. But you might never know it from reading the mass media. That is why you should read American Libertarian every month.

American Libertarian is the edilted by Mike Holmes, longtime only newspaper in the world devot­ libertarian writer and former editor ed to covering news of the libertari­ of Libertarian Party News. an movement. Its beat is the entire Every colorful, tabloid issue fea­ range oflibertarian activities. And it tures news and analysis you cannot covers it fearlessly, independent of find anywhere else. any organization or faction. Subscribe Today! Where else can you read features ,American Libertarian is availa­ like these? ble by subscription at $20 per year • First hand report on life in Big for delivery by first class mail. That Water, Utah, the town whose way, you will receive each issue Mayor and City Council abolished while it's still news! property taxes and joined the Liber­ tarian Party. Free with your • The most detailed election slJbscription: coverage of all libertarian candi­ To encourage you to act immedi­ dates, including campaigns by li­ ately, we will send you two exciting bertarian Republicans. back issues ofAmerican Libertarian •A special section devoted to coverage of the Libertarian Inter­ free with your new subscription: September 1987: detailed reports national Convention in Sweden. Feda to Try Lewis and analysis of the 1987 Libertarian Free ~~~':o3 Jean • Murray Rothbard's incisive lOUW/K~~~:II~ecture analysis of Ayn Rand protoge Alan Party Convention and a letter from pagel Greenspan and his appointment as jailed libertarian activist Norma Chairman of the Federal Reserve Jean Almodovar... plus other news Board. stories, cartoons and features. • Eyewitness coverage of the November 1987: a first hand re­ tax evasion trial of Jim Lewis, for­ port on rock 'n roll superstar Frank mer Libertarian Party vice presi­ Zappa's abortive move to gain the dential nominee. Libertarian presidential nomination, • First hand report on libertari­ an exclusive interview with Sam an attempts to migrate to Ft Collins, Steiger, the former Congressman Colorado, to form a libertarian who joined the Libertarian Party in community, a modern "Galt's 1980, now accused ofextortion in his Gulch." role as an aide to embattled Arizona • Inside reports on the manage­ governor Ev Mecham... and more! ment struggles within the Libertari­ Guarantee an Party bureaucracy. Your subscription is backed by • An exclusive interview with li­ Am,erican Libertarian's money back bertarian activist turned Reagan guarantee: speechwriter Dana Rohrbacher. 1. At any time during your sub­ •A detailed analysis of the de­ scription, we guarantee a 100% full cline in membership and finances pro rata refund for any unmailed of the Libertarian Party during the issues. early 1980s. 2. We guarantee a 100% refund Now in its second year of regular of the entire subscription price publication, American Libertarian is upon your request after you receive ~ ' .... '- - "- -- - -' ---- - .... -'-- "The price of II Liberty II is Eternal Vigilance." - George Washington, 1788 "Formerly the price of II Liberty II was Eternal Vigilance, but now it can be had for 50¢ per Year." - Benjamin Tucker, 1888 "The price of II Liberty; II is now up to $18 per year, thanks to another 100 years of inflation" - Murray Rothbard, 1988

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