Charles Ko< p.O. Box 2. Wichita, ANTI-CAPITALISM AND ,form„tlon; Dear Charl^ cvlve rather p le a s e d BUSINESS i l b e _ . This x U T b e* rv I 'm p l e a s well this to know t! ■ent meTnbers« of direct CHARLES G. KOCH i to 2400 a renewal, Lasl nallv dropped asking *< S list except e x p i r e d in late that waa stum) : **** the 150< ad the Ruter o qo before fh> e of nearly ***' e x p i r e d ® all of this rnaili^ » the state i t ’ s f l np»Tnberfaklps^ • $2A,00( *©‘ 11 have has coit east 7.00°- L P 's hi I ' d gt. expand
o f f \NT1-CAPITAL1SM AND BUSINESS
( h a r m s g . kocm
Anti-capitalist feelings in the United a b o u t the author States are probably more virulent today than ,-vcr before. Yet the efforts to stem this challenge to our tt i i economic values Charles G. Koch is President of Koch In have been ineffective. It is crucial that we dustries, Inc,, of Wichita, Kansas, and also understand what is happening, why the de serves as President and Chairman of the fensive efforts have floundered, and what Board of the Institute for Humane Studies approach, if any, would succeed. Inc. 1 his address was presented at a seminar on “The Anti-Capitalist Mentality,” held in Shortly before he became Associate Jus- conjunction with the annual meeting of the ti «* the Supreme Court, Lewis Powell, in Institute's board of directors in Dallas, his famous Powell Memorandum, described Texas, on April 27, 1974. In addition to Mr. the current contempt for business. Powell Koch, the seminar lead included the noted that in r. trust r! : p. nod • noted American economist andand journalist, iourr our history, anti-business sentiment was not Henry Hazlitt, and Ronald Max Hartwell, being propagated merely by a tew radicals. distinguished professor of economic history Th present assault on the enterprise sys n is broadly based and rapidly gaining momen at the University of Oxford. tum and converts I oday’s antagonists are numerous, well financed, and increasingly welcomed and encouraged tl elements ('l society. Powell illustrated the tone, the character, and the intensity of the attack by citing statements of a few heroes of the young. William Kunstlor. the activist attorney who is a popular speaker on campuses, proclaims “You must learn to fight in the streets to revolt. to shoot guns. We will learn to do all of the things that properly owne rs fear.” The self-appointed consuniier eidvocate. . ,-o p ies arc available upon request from: Ralph Nader, declares that a great niany Additional copies executives of major corporati ons should be impnsijned for defrauding tllie public and willful ly producing unsafe prod ucts. As nia 94025 proof of the potency of these attacks. 1 -
finally, in nprhanc step, business his ' , mof! gricv°us mi* neglected. As Professor F. A. Hayek has government - 'ras consciously assisted the acutely observed, “Unless we can make the 0 Uestro>'ing the free market 191 ;^ - .c a I ly , businessmen have been at th* philosophic foundations of a free society once more a living intellectual issue, and its entetprise CAs^mLc!"V'°I! dcstro>'in8 free 1 implementation a task which challenges the in hisP book AS on Prolessor the Pi Oabnel Kolko noted ingenuity and imagination o! our liveliest ){' Cnn^rus.n*...ogressive------1" era. iWJ'lw Tri~ minds, the prospects of freedom are indeed J “ ”l5*rv<*nsm. certain key business dark.” men at the turn of the century were an,™, By education. 1 mean basic scholarly re <0 major initiators of federal intervention in search and writing which will provide us the economy. Kolko also observed tha! it with better understanding of the market sys ^Ld°![i,‘ V r r nw 0’ mono»x>,y tem and bettor arguments in favor of this caised the federal government to intervene system We desperately need to develop ad •e i. in the economy, but the lack of it Several ditional talent capable of doing the research an 4 other scholarly studies have confirmed the and writing that undergird the popularizing e 14 tact that monopolies cannot be maintained of capitalist ideas. Business has so neglected ere! by private means alone As businessmen this approach that when, for example, a . i t came to realize this, on many occasions they project to study free-rnarket ideas is funded, simply turned to the government for special the biggest problem is finding someone will >out privileges and protection from competition. ing 3nd able to do the work. While business m i The process apparently still continues. has sometimes shown an interest in establish o r s Hence, those who blame the oil industry for ing appropriate chairs at Universities, there is er the energy crisis arc correct in the sense that 1 rst-rate talent available that .this iver the oil industry did encourage misguided efiort lias often resulted merely in a shift of government regulation. Over the years, for one of the few free-market scholars from instance, the industry sought oil proration one university to another. S3,1 ing and import quotas, and it approved the Many things can be done to develop this 5%) wage and price controls. Subsequently talent: financing fellowships lor graduate . a it has called for federal allocation programs students to work under teachers sympathetic has and gasoline rationing. to the tree market, sponsoring conferences , a i where scholars and students gather to discuss let the market economy; arranging publics of S I perceive the situation in which the and distribution of scholarly books; arid in dus capitalist businessman find hnnwn t-> suring that able students can find attractive (BtO there are basically four ways in which opportunities as teachers or research schol an tight for free enterprise - through ars. But business must make its funds avail >AY ation. through the media, by legal eta able for Such purposes and use its influence >1, .c and by political action. As a believe to provide openings. I believe that this long eel ie market economy, 1 appreciate! ie term, educational approach is absolutely fits of specialization and the division ot necessary to restore the free enterprise sys tem. \ Therefore, in general 1 , >ers each businessman do what his o Nevertheless, organizations like the Insti andi resources -iii,iwallo w him tolo do > best. I uo ;il tute for Humane Studies that are active m this educational effort have had trouble rais tain, however, 11 ‘‘l 1 1 , thc most . is both the most vital and u\c ing funds from business. This puzzles me
Ghariottesyi I it
rale With the ^ v e ^ m e n . beyond . he because education is by all odds »h» c0operate minimum in de v economical and productive of anv legally oomPi any control programs. Has ways we can pursue. The educational mJth comP*Pl>'in? ' ^ i W‘n' r i hr n . o to “p “publicize u b l i c aswidas W ide*, od enables the businessman to work eiW 5es businessmen ^efficiencies, mis- lively without exposing himself to the v • T possible the lhal wiii de— r pub ic criticism that the other methods n !»U> and hu’^ ]s- and adds that “busi- ticularly politics, seem to evoke Peril n ^ * with these co"1 ‘]n [he public understand businessmen have overlooked e d u £ f c nessmen should ^ of arrogant. inttu- cause we have been too impatient and thu« !ha' tews, lies in the barest pos- tailed to recognize that the usual business • m refusal to cooperate standards for returns on long-term invmti sible obedien |ettcff 0f the law. ments apply in this area as well *' ond oeratior ind u ;ssful Unlike educational programs that produce ^ r ^ e recent inde- new advocates, the alternative approaches - imckers strike and the gasoline utilizing the media, the courts, and politics shutdo n But ■ h uld iteo con- lull in the category of self-defense. But Self-defense is necessary, and I recommend id • the possibilities of strat icallj planned " . '■ •• • er, t : i:t. tion ii'id adininistniu e pi^ccuu: - this effectively, business must keep its own •: ■ • th( -i. politi *! tit I . '■••• house in order. Its defense must not backfire been the most widely used by businessmen and make it even more vulnerable. Thus, we and, while seemingly .successful in some )% cannot speak out for free enterprise ai i cases, has overall proved least fruitful. I be- the same time lobby for special privileges :: tl 1 :i f<•; till failure i and limits on competition. This issue may polit refl ;t • hat the; believe to be create division within the business com the view of their constituents, and this munity. but it should be faced up to so that, majority view has been formed over tile if necessary, the lines may be properly ■ I ' aaliSti !.: ,:;i f;,<| ,i: , drawn. 1 : bj tiv . p( liti d activity We should utilize the media in speaking r ’ ' and j. i out in our defense, but we should make a could include, for instance, litigation to sound intellectual exposition of our point of view. There should he no hesitation to at tack the enemies of the free market, such as the Naders, as aggressively as possible. And we must appropriately "reward" the media air i*: when they promote the free market, but “ „ ^ man^ ouw"°‘~ d y. n t o withdraw support when they attack 1 urtiier, we muei Concerning the use of legal challenges. political approach conWm’T ,‘hat a direc< Professor Henry G. Vlanne of the University Ians E ? Pasl hk,orV indicaipV.I!",lnherent of Rochester advises that “‘the business com “d"«ma„ b ; ‘ > ‘hat, once a munity utilize available techniques of legal he adversary proceedings to announce publicly * 'VP'cally aUcn,p bU 0P^ lltal ^ advantage over J * to gain an and vigorously, both as individual companies J ! * 0 and through associations, that they will not and at When ,his "tong public reaction a„ h n 11 d°«sn't a ,0" -ttatnst business devel tive than 1he°(l)lI,|IC:,t activity is less rnen should ,|i!er approaches, und b ‘'effec* a,,ocate
a>nsidcra,lon to ^highly l,v'n ”'.PrT m ***** tho,s° whose influence8on "oth 1 We reach m ultiplier effect n ,,, " otl m ***»*«* programs w e superior to poHtical actio U0I,>I support o f taJentoH fr -1 V ‘ ■ : M i e t o Z22& S?*'**** The development of a well financed cadre o sound proponents of the free enterprise philosophy is the most critical need facing us a t tne moment. And this task isiiotimprac- ii. As the Powell Memorandum points ou t. “ business and the enterprise system are In deep trouble, and the hour is late." But the system can be restored if business wili re-examine itself and undertake radical new efforts to overcome the prevalent anti capitalist mentality. The Institute for Humane Studies wa« g * » * g in 1961 as an independent center to fostef re research and advanced study for the strengthen- ing of a free society. Through conferences, lowships, publications, and related activities, the Institute seeks to serve scholars in all the humane sciences who are interested in the principles o liberty. Interested persons ir education, business. am thb professions throughout the world share in its work and participate in the programs it sponsors.