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Dangers of Planned Economy |
[A commencement
address delivered at the Carnegie Institute of Technology.
Originally printed in The Christian Science Monitor, 20 May,
1942. Reprinted from The Freeman, July, 1942]
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In America, many well-meaning people ... are convinced that the process
of social evolution in. this country is inevitably toward a compulsory,
planned economy. They welcome the ideal of collectivism but do not want
to go the whole distance on the road to Moscow or Berlin. Actually they
are reactionaries at heart because, without realizing it, they are
advocating policies that will eventually destroy representative
democracy, free private enterprise, and civil and religious liberty --
the triune foundation on which human freedom rests.
As a great industrial nation, we have long been accustomed to plan
ahead; hence the phrase, national economic planning, has something about
it that appeals to almost everyone at first blush. Certainly we need all
the mutual consultation and voluntary planning we can get from
government, labor, capital, and management. However, compulsory national
economic planning is quite a different thing. That sort of planning
actually rests on a series of delusions.
Our national economic planner?, in fact, are the modern prototypes of
the medicine men of our barbaric ancestors. They actually believe that
modern (physical) science, if only placed at the behest of all -- power
placed at the behest of all-powerful government, can make the springs of
plenty flow for everyone with little work on anybody's part and without
the sacrifice of political, intellectual and spiritual freedom.
The stagnation and loss of impetus under such a system, due to the
dilution of personal responsibility and initiative, would be appalling.
Furthermore, if government once starts to direct the economic affairs of
our basic industries in times of peace, the process will inevitably have
to be extended to every phase of our economic life. Our economic
processes are so closely interrelated that ultimately government would
have to tell each one of us what we could buy, when and where we could
buy it, and at what price; what we could produce, how much we could
produce; where we could work and for what wages. Under a system of
compulsory planning, there would be no stopping short of the bitter end.
In times of war we cannot avoid it, but In times of peace the road to
compulsory planned economy is the road to State socialism. And once
State socialism becomes a reality and free private enterprise
disappears, what happens to representative democracy, and civil and
religious liberty? Obviously If a group of men calling themselves
government were planning ostensibly for the greatest good of the
greatest number, they could not brook interference from any citizen, no
matter how well intentioned that citizen might be.
Meanwhile, the economic planners, that is, the government, would have
to mold public opinion so as to keep itself in power. Consequently,
government would ultimately be compelled to control every
opinion-forming agency -- the radio, the press, the movies, the school
and the church -- at least in so far as anything advocated was at
variance with the set plans of the State.
In Germany, Russia and Italy we witnessed the bitter fruits of
compulsory economic planning in the fateful years before the war. It is
your responsibility and mine to see that when peace comes, we avoid its
pitfalls here in America. Free private enterprise -- with reasonable
umpiring by government to insure fair play -- representative democracy,
and civil and religious liberty, I repeat, are the three inseparable
supports of personal freedom. They stand or fall together.
The individual who desires the intangible yet real blessings of
political, intellectual and religious liberty must assume a very large
portion of the responsibility for his own economic well-being. If he is
unwilling to do so and places that burden on the shoulders of
government, he will soon find that he has reared a Frankenstein monster
whose appetite for control is literally insatiable and which sooner or
later will devour all his freedoms in the process of expanding.
Under the impact of the recent approach to the problem of government, "What
can I get out of it, whether I am entitled to it or not?" we have
drifted far from our ancient moorings and today every educated man and
woman in the country has a peculiarly grave responsibility: to
contribute, liberally and unselfishly, through the process of clear
thinking as opposed to crowd emotions, to an intelligent solution of our
pressing national problems.
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