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| [A shortened version
of an address by Prof. Hoover at the dedication of the Newark, New
Jersey Henry George School, 12 July, 1959. Reprinted in the Henry
George News, September, 1959] |
TO USE POWER is to restrict the freedom of others. By definition, power
means the ability to coerce. In international affairs, reliance on state
power has decreased the security of every nation in the world. It has
produced only a precarious "balance of terror," a crushing tax
burden, and may result in the extermination of our species. Warfare is
trial by power, and an old adage tells us that "There are many
things worse than war, and war is the cause of all of them."
A rational society would take for public purposes the unearned wealth
which results from population growth and the schools, streets, parks and
other amenities which the taxpayers provide. These socially created
values are, of course, land values. As distinct from all other forms of
wealth, land is the product of Nature or of Nature's God. As the
surrounding population grows and public improvements multiply, land
values grow, and this without any useful service whatever provided by
the land owners. For a community to take for public purposes the values
which the community has created may not be the end of wisdom but it is
certainly the beginning of it.
In domestic affairs, the use of power by individuals or private
organizations is intolerable. In recent years the use of private power
has been largely restricted to the economic field, where monopolies have
been created to extort prices above the level which would obtain in free
markets. Monopolies designed to control the prices of commodities, in
our country at least, have long been prohibited by law. The enforcement
of such laws has not always been vigorous, but the principles on which
they were based have never been abandoned, either by the people or their
elected representatives.
The power now most feared is the power to exact a monopoly price for
labor. To curb this power is not yet a task for legislators, for the
public has not yet made up its mind. Thus far our distrust of union
power has resulted only in demands for the punishment of racketeering
union leaders who embezzle union funds, disregard the rights of union
members, etc. These are peripheral matters which only distract us from
fixing our attention on the power itself, however honestly and
democratically the unions may be governed.
The rapid increase in the membership and power of trade unions is the
most significant economic development in our time. Free peoples have
always insisted that governments should have a monopoly of power and
that no individuals or private agencies should exercise any compulsion
or restraint on their fellows. Why then are we so timid and confused
when faced with the greatest concentration of private power in our
history?
Our task is to continue in our efforts to create a wider understanding
of the principles on which a free and just economy must rest. This is
not a spectacular task, and those who would lead a thoughtless multitude
down some short road to Utopia will not be at ease in our company.
Without hope of recognition or reward we shall do our duty - the rest is
in the lap of the Gods.
However, as nothing is ever finally settled until it is settled right,
we can be sure that power will ultimately be banned, not only from the
marketplace, but from the international arena as well. It is only when
no one has power to coerce another that "they shall sit every man
under his vine and under his fig tree; and none shall make them afraid."
Inasmuch as the growth of unions has not lowered the profits of
American industry, it follows that when unions force wages above the
competitive level, the consumer - not the employer - pays the bill. As
that truth spreads, the monopoly pricing of labor will become as
offensive as the monopoly pricing of commodities-a practice long
condemned by both ethics and the law.
Our wage and salary workers are now divided between the minority that
is unionized and the majority that is not. There seems to be little
chance, that the percentage of unionized workers will increase, and in
some industries such as auto manufacturing and coal mining, union
membership may continue to decline. As the percentage of unionized
workers declines they cannot expect any program to succeed if its
benefits would be limited to their own numbers. It is unfortunate that
they ever committed themselves to the use of power for their selfish
purpose's instead of supporting reforms which would assure to all
workers their just share of the increased output of a free economy.
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