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The Freeman 1999 Ideas On Liberty September 1999 Vol. 49, No.9 8 A Better Brand ofParent by Marshall Fritz 12 Independent Schools at Risk by Jacob Huebert 15 School-to-Work: A Large Step Down the Road to Serfdom by Gary Wolfram 20 The Central Fallacy of Public Schooling by Daniel Hager 24 Subsidized Education by Russell Madden 29 The Bathtub, Mencken, and War by Wendy McElroy 32 Ludwig von Mises's Human Action: A 50th Anniversary Appreciation by Richard Ebeling 40 Economic Calculation Revisited by Manuel Ayau 142 "Liberty in Perfection": Freedom in Native American Thought by Amy H. Sturgis 46 Political Accounting by James Bovard 52 Bad Investment by Deroy Murdock 4 THOUGHTS on FREEDOM-Break This Vile Addiction by Donald J. Boudreaux 18 IDEAS and CONSEQUENCES-Taxation by Litigation Threatens Every American Business by Lawrence W. Reed 27 POTOMAC PRINCIPLES-A Superpower's Prerogative by Doug Bandow 38 THE THERAPEUTIC STATE-The Hazards of Truth-Telling by Thomas Szasz 150 ECONOMIC NOTIONS-Speculation and Risk by Dwight R. Lee 55 ECONOMICS on TRIAL-"They Were Right" by Mark Skousen 163 THE PURSUIT of HAPPINESS-A World Without the FDA (Plus a Contest!) by Russell Roberts 2 Perspective-Voucher Advocates, Take Heed by Sheldon Richman 6 The Wealthy Hurt the Middle Class? It Just Ain't So! by W. Michael Cox and Richard Aim 57 Book Reviews Keeping the People's Liberties by John 1. Dinan, reviewed by George C. Leef; The Structure of Liberty: Justice and the Rule of Law by Randy E. Barnett, reviewed by Bruce L. Benson; The Lost Literature of Socialism by George Watson, reviewed by Antony Flew; Refuting the New Freedom to Trade edited by Edward L. Hudgins, reviewed by Charles K. Rowley; The Roosevelt Myth by John T. Flynn, reviewed by Lawrence W. Reed. THE FI\EEMANIdeas 011 Libel tU Voucher Advocates, Take Heed Published by The Foundation for Economic Education As if we needed more proof that with gov­ Irvington-on-Hudson, NY 10533 ernment money come regulations, the U.S. Phone (914) 591-7230 FAX (914) 591-8910 E-mail: [email protected] Department of Education says that colleges FEE Home Page: http://www.fee.org and universities may not use .standardized President: Donald 1. Boudreaux admissions tests that have a "significant dis­ Editor: Sheldon Richman parate impact" on any race, sex, or national Managing Editor: Beth A. Hoffman origin. Unless a test is indispensable-a mat­ Editor Emeritus ter to be decided by the department-its use Paul L. Poirot will be regarded as invidiously discriminatory, Book Review Editor resulting in loss offederal money. George C. Leef The premise is that admissions tests on Editorial Assistant Mary Ann Murphy which particular groups do relatively poorly­ Columnists the SAT and ACT-must be culturally biased. Charles W. Baird The assertion that these exams somehow give Doug Bandow a cultural advantage to white males of Euro­ Dwight R. Lee pean ancestry and Asian males is bunk, but Lawrence W. Reed Russell Roberts that's inconvenient to the social engineers. Mark Skousen The tests must be biased. Thomas Szasz The consequences of the prohibition are Walter Williams predictable. Students will be admitted to Contributing Editors schools for which they are unqualified. Then Peter J. Boettke they will flunk out. There's benevolent social Clarence B. Carson Thomas J. DiLorenzo policy for you. After California's state colleges Burton W. Folsom, Jr. and universities were forced to stop using race Joseph S. Fulda as a criterion for admission, it was pointed out Bettina Bien Greaves that minority groups lost "representation" at Robert Higgs the top schools, UCLA and Berkeley. But John Hospers Thomas Sowell noticed that there are now Raymond J. Keating Daniel B. Klein more blacks, Mexican-Americans, and Ameri­ Wendy McElroy can Indians than previously at other schools, Tibor R. Machan such as the University of California at Irvine. Ronald Nash The opponents ofquotas were right: instead of Edmund A. Opitz going to Berkeley, for which they are unquali­ James L. Payne fied, minority youth who are not top students, William H. Peterson Jane S. Shaw like their white counterparts, will go to schools Richard H. Timberlake where they have a chance to succeed. Lawrence H. White David Friedman, the economist and author The Freeman is the monthly publication of The Foundation for Eco­ ofHidden Order, once formulated Friedman's nomic Education, Inc., Irvington-on-Hudson, NY 10533. FEE, established in 1946 by Leonard E. Read, is a non-political, educational Law: government is so incompetent, it can't champion ofprivate property, the free market, and limited government. even give something away. Government may FEE is classified as a 26 USC 501(c)(3) tax-exempt organization. Copyright © 1999 by The Foundation for Economic Education. Per­ promise to give all students a shot at a top col­ mission is granted to reprint any article in this issue, provided credit is given and two copies ofthe reprinted material are sent to FEE. lege, but clearly it can't make unqualified stu­ The costs of Foundation projects and services are met through dona­ tions, which are invited in any amount. Donors of $30.00 or more dents qualified simply by forcing their admis­ receive a subscription to The Freeman. For delivery outside the United sion to top schools. States: $45.00 to Canada; $55.00 to all other countries. Student sub­ scriptions are $10.00 for the nine-month academic year; $5.00 per Government should not be dictating who semester. Additional copies ofthis issue of The Freeman are $3.00 each. Bound volumes of The Freeman are available from The Foundation should be admitted to which schools. It for calendar years 1972 to date. The Freeman is available in microform shouldn't be operating schools. Period. Where from University Microfilms, 300 N. Zeeb Rd., Ann Arbor, MI 48106. 2 there is government, there is control. Voucher Human Action by Ludwig von Mises. Richard advocates, take heed. Ebeling explains why this book and this occa­ sion are so important. *** It was Mises who pointed out that socialism would have no way to intelligently plan an September is back-to-school month, a fit­ economy because the abolition of the market ting time to again put government control of would eliminate the tools of calculation: education on the examination table. prices. Manual Ayau revisits the calculation Private schools are better at educating chil­ debate and notes that it applies to any system dren than government schools. But why? other than laissez-faire capitalism. Because they're private? Marshall Fritz thinks Most ofus are taught that before the Euro­ that answer misses a big point and distorts the peans intruded, American Indians lived com­ school-reform movement. munally with individuality submerged in the The rule about pipers, payers, and tunes is tribal soup. Amy Sturgis writes that, on the endlessly cited in the analysis of government contrary, Indian life was yet another source of policy. But it's curiously neglected in discus­ the freedom philosophy for the European set­ sions about what to do about the "public tlers in North America. schools." Jacob Huebert reminds us that it's Nothing could be more different than the applicable there too. way business and government account for The logic of government education leads their activities. James Bovard demonstrates inexorably to wider intervention in the econo­ that in each case, form follows function. my. The "School-to-Work" program of the One of Washington's hottest ideas is to Clinton administration shows that only too invest some ofthe Social Security tax revenue well. Gary Wolfram explains. in the stock market. Great idea, right? Not so Government schools are reliable for at least fast, says Deroy Murdock. one thing: teaching children the government's Our columnists have been busy the last line on everything from taxes to war. Daniel month. Donald Boudreaux finds the govern­ Hager says this is nothing new. ment's method of detecting victimless Higher education is also increasingly a "crimes" horrifying. Lawrence Reed sees creature of public policy. Through loans and nothing but bad news in the coming explosion grants, government helps a lot ofpeople go to ofbogus liability suits against business. Doug college who otherwise wouldn't be there. Bandow revisits the U.S. bombing in Sudan. Russell Madden is not so sure this is a good Thomas Szasz warns that speaking truth can thing. land you in trouble. Dwight Lee examines the The battle in the Balkans is a reminder that relationship between speculation and risk. governments, never trustworthy, are least Mark Skousen looks back at anticommunism. credible when they go to war. H.L. Mencken Russell Roberts imagines a world without the knew this well. Unable to write about war, he FDA. And Michael Cox and Richard AIm found a more subtle way to comment on the consider the claim that wealthy people hurt state's lack ofveracity and the people's incli­ the middle class, concluding "It Just Ain't nation to believe whatever it says. Wendy So!" McElroy explains. In the book section, reviewers provide the This month marks the 50th anniversary of scoop on works dealing with liberty, social­ perhaps the greatest achievement in econom­ ism, protectionism, and FDR. ics in the 20th century: the publication of -SHELDON RICHMAN 3 e>n. by Donald J. Boudreaux Break This Vile Addiction anneral Denson, who is black, was seven­ chained her to a bed, and fed her laxatives so Jmonths pregnant when she returned to her that' they could inspect the contents of her home in Florida after visiting Jamaica. u.s. bowels.
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