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Two Cheers!
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14515 |
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Section : |
BOOK WORLD
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3 / 1988 |
7,097 Words |
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Fred L. Smith, Jr.
Fred L. Smith, Jr. heads the Competitive Enterprise Institute,
a promarket public interest group organized to advance free
enterprise policies, and has written and spoken widely on the
relationship of business and politics. |
Great crises will surely come again, as they have from time to time throughout all human history. When they do, government will almost certainly gain new powers over economic and social affairs.... For those who cherish individual liberty and a free society, the prospect is deeply disheartening.
--Robert Higgs, Crisis and Leviathan
Joseph Schumpeter once asked the question--"Would capitalism survive?" His answer--"Probably not." Schumpeter believed that many factors mitigated against the survival of a free market economy. Among various debilitating factors, he listed the loss of political and social support for this system that he believed would likely accompany the emergence of the modern corporation. He also noted that capitalism encouraged the emergence of an intellectual class that would prove inherently hostile to its survival. Finally, Schumpeter believed that capitalism was a rationalizing force that would eventually destroy the ideological and moral underpinnings vital to its survival.
History bears out Schumpeter's pessimism. As Robert Higgs notes in his insightful book, every crisis of the last hundred years has ratcheted upward the power of government over the economy. Power continues to gravitate from business to political centers, from the world of voluntary agreements to that of coercive mandates. America, in terms made famous by Frederick Hayek, has traveled far along The Road to Serfdom.
A free society is not stable. There is always a tension between those groups now enjoying power
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