INDEX
academia, 77, 104, 120–21, 178
Adams Express Company, 39–40
Addams, Jane, 149
advocacy
freedom of, 25
in society, 23
agriculture, 56
Ali, Muhammad, 145–46
Alice in Wonderland (Carroll), 142
Allende, Salvador, 99
American Civil Liberties Union, 79
American Economic Association, 210
American Motors, 72
Amish sect, 14–15
anarchic society
feasibility of, 75
as government alternative, 86
anarcho-capitalism, 75
Animal Farm (Orwell), 143
Athens, 97
authoritarian society, 70
authoritarianism
in Chile, 98
liberalism as reaction to, 1
Bastiat, Claude-Frédéric, 80
BBC. See British Broadcasting Corporation
Bellamy, Edward, 210
Bentham, Jeremy, 16
laissez-faire of, 57
liberalism of, 17
Benthamite liberalism, 17
bias, 55–56
big business trend, 125
Brandeis, Louis Dembitz, 212
Branden, Barbara, 91, 93
Britain
capitalism of, 56
Chile and, 100–102
collectivism and liberalism in, 50
criminality in, 155
Dicey on, 100
equality of outcome in, 153–55
as free society, 70–71
free trade in, 207
gambling in, 150
government spending of, 100–102
laissez-faire in, 211
law respect in, 58–60
nonintervention in, 52
railroads in, 39
tariffs of, 175
United States and, 126
welfare state of, 212
British Broadcasting Corporation (BBC), 26
bureaucratic elite, 55
business enterprise, 128–29
businessman
on free enterprise, 79–80
in free society, 79
freedom of speech for, 77–78, 103, 120, 176–78
capitalism, 5, 23, 185, 189
as anarcho-capitalism, 75
of Britain, 56
competitive, 83
with equality, 156–58
as free private enterprise exchange economy, 19–20
for free society, 81–82, 115
Marx on, 53
minority groups in, 29
of Nazi Germany, 82
as political freedom necessity, 16
Schumpeter on, 54–55
success of, 56
survival prediction of, 68
wealth in, 24
capitalist society, 69
Carroll, Lewis, 142
Carter, Jimmy, 131
central banks, 198
centralized direction, 60
Chicago School of monetary economics, 227
children, 43–44
Chile
authoritarianism in, 98
Britain and, 100–102
democracy in, 98
freedom in, 98
government in, 98–99
history of, 99–100
welfare in, 98
China, 157
Chinese Revolution, 162–63
Churchill, Winston, 26
Civil Aeronautics Board, 189
civil rights, 7
Civil War, 139
economic policy in, 140–41
government spending in, 168
class, 53, 75
Cobb, Joe, 65
coercion, 20
in economics, 19
freedom as absence of, 181
of government, 86
libertarianism on, 90
protection from, 21, 75
unanimity without, 85
collectivism
in Britain, 50
Dicey on, 212
in economic liberalism, 6–7
in Germany, 71
individualism and, 72
of intellectuals, 72
interference from, 7
liberalism to, 50
rise in, 209
trend toward, 115–17
of Western world, 70
collectivist society, 58
command, 163–64, 167
Commission on an All-Volunteer Armed Force, 166
communism, 218–19
freedom in, 27
freedom to advocate, 6
standard of living with, 69
of Yugoslavia, 118
Communists, 5–6
competition, 2
importance of, 61
Smith on, 132–33
competitive capitalism. See capitalism
compulsory schooling, 84
conformity, 22, 32
Constitution of the United States, 133
constitutional rights, 79
consumer good, 43–44
Corn Laws, 175, 190
repeal of, 206
corruption, 57
Declaration of Independence, 135, 215
equality in, 136
Defoe, Daniel, 18, 68
democracy, 4, 137–38
in Chile, 98
popularity of, 199
socialism with, 13
Democracy in America (Tocqueville), 137–38
Democratic Party, 138
democratic socialism, 13
Dicey, A. V., 44, 57, 188, 189
on Britain, 100
on collectivism, 212
on free society, 50
on individualism, 52
on laissez-faire, 210–11
on noninterference, 51–52
on taxation, 217, 218
Dietrich, Marlene, 145
division of labor, 78–79
Dukakis, Michael, 200
The Economic Consequences of the Peace (Keynes), 195
economic freedom
examples of, 4–6
from free market, 22
freedom relationship to, x
importance of, 14–15
in nineteenth century, 209
political freedom relationship with, 13–17, 121
reductions of, x
economic inertia, 191
economic intervention, 59
economic liberalism
collectivism in, 6–7
political freedom and, 4
with political liberalism, 3
in twentieth-century, 1–3
economic market
as means of good-doing, 112
nature of, 110–11
political market and, 13, 105–7, 111–112
as private market, 112
economics
coercion in, 19
in free society, 13–14, 18
law and, 173
social organization in, 19
voluntary cooperation in, 19
The Wealth of Nations influence of, 205
Economist, 8
economy, 19–20
mechanics of, 165
as socialistic, 82
egalitarians, 150–51
policy of, 153–55
in United States, 152
1837 financial panic, 175
employment, 28
engineers, 55
enterprise
of agriculture, 56
freedom for, 117
nationalization of, 216
size of, 55–56
entrepreneurs, 55
equality
capitalism with, 156–58
in Declaration of Independence, 136
as enforced, 152
freedom and, 158–59
before God, 136–39
liberty and, 135, 137
of opportunity, 135, 139–42
Smith on, 154
Tocqueville on, 138
See also personal equality
equality of opportunity
corollary for, 141
foreign trade and, 142
liberty with, 140
as not literal, 139–40
personal equality and, 140
equality of outcome, 136
belief in, 149
in Britain, 153–55
choice in, 147
complexities of, 145
fairness in, 142–46
favoring of, 149–53
ideal in, 143–44
liberty with, 149
philanthropy in, 148–49
practice of, 150–51
Erhard, Ludwig, 200, 219
ethical problems, 18–19
Fabian socialism, xii, 209
dominance of, 211
as worldwide, 213
fairness
determining, 143
in equality of outcome, 142–46
forms of unfairness and, 144
in free trade, 132–33
freedom and, 131–33
in game of chance, 146
of speech, 132
faith anecdote, 129
family, 7–8, 43
FDA. See Food and Drug Administration
Federal Communications Commission, 46
Federal Housing Administration, 46
federal income tax, 153
federal old-age programs, 14–15
Federal Reserve System, 76
Federal Trade Commission, 78, 103, 120
FEE. See Foundation for Economic Education
financial crisis, 102, 105
First Amendment, 173, 177
parallel amendment to, 183
See also freedom of speech
Flexner, James, 162–63
Food and Drug Act, 213
Food and Drug Administration (FDA), 104
intimidation of, 176
force, 75
libertarianism on, 90
forced busing, 107
Ford, Gerald, x, 103, 127
Ford, Henry, 147
foreign trade, 142
fortunes, 147–48
Foundation for Economic Education (FEE), 215
Freeman publication from, 216
Founding Fathers, 137, 139, 205
France, 219
law obedience of, 59–60
free enterprise, 35
business enterprise as threat to, 127–29
businessman on, 79–80
in history, 117, 121–22
intellectuals as threat to, 128
meaning of, 117
in nineteenth century, 121–22
free market
compassion in, 149
critique of, 21
diversity from, 22
economic freedom from, 22
free men from, 173–74
freedom and, 179
freedom of speech relationship with, 173, 175–76
government with, 22
impersonal, 29
intellectuals opposition to, 71
political freedom from, 15, 23–24
power in, 22
resurgence of, 214–19
free men, 173–74
free private enterprise exchange economy, 19–20
free society
agreement in, 33
Britain as, 70–71
businessman in, 79
capitalism for, 81–82, 115
circumstances for, 49–50
defense of, 193
departure from, 188
Dicey on, 50
as dynamic, 69
economic intervention and, 59
economics in, 13–14, 18
examples of, 97–98
fighting for, 88
forces for, 59–63
future of, 220
Germany as, 71
in history, 49, 63
humility justification for, 182
intellectuals on, 174–75
military in, 161
monetary expansion rate for, 76
organization of, 164
pessimism of, 63
productivity of, 180–81
psychological egotism of, 80
as right society, 180
self-interest in, 81
sources for, 59
stability of, 69–70
taxation and, 118
unanimity in, 85
as unstable equilibrium, 69
free trade, 2
in Britain, 207
fairness in, 132–33
Free University, 71
freedom, 186
as absolute, 35
of advocacy, 25
to advocate communism, 6
aspects of, ix
of children, 43–44
in Chile, 98
as coercion absence, 181
in communism, 27
crossroads of, 112–13
for enterprises, 117
equality and, 158–59
examples of, 182–83
fairness and, 131–33
fragility of, 97–98
free market and, 179
in future, 124–30
goal of, 31
with government, 180
government threat to, 167–68
in history, xi, 97
ignorance for, 181–82
individual conduct with, 68
intellectuals on, 79
law and, 59
of liberalism, 1
loss of, 102, 120–21
of madmen, 43
meaning of, 159, 161
military and, 167
of occupation, 15
of press, 121
for responsible individuals, 8, 43
to sin, 66, 181
in socialism, 26
threat to, 103
in United States, 116–17, 169–70
as unnatural state, 97
as value, 18
See also economic freedom; individual freedom
Freedom Daily, 95
freedom of speech, x
in academia, 77, 104, 120–21, 178
for businessman, 77–78, 103, 120, 176–78
fairness and, 132
free markets relationship with, 173, 175–76
government and, 77
personal freedom threat and, 77
warning labels in, 182–83
Freeman, 216
French Revolution, 162
Friedman, David, 74–75
Friedman, Milton. See specific topics
Friedman, Rose, xi–xii, 227
Fuelner, Ed, 186, 215
future
faith in, 129–30
of free society, 220
freedom in, 124–30
open society in, 200
of opinion, 220–21
scenarios for, 125–29
Future of Freedom Foundation, 95
Galbraith, John Kenneth, 105, 127
gambling, 150
General Motors, 109–10, 125
Germany
collectivism in, 71
as free society, 71
individual freedom in, 71
inflation in, 76
See also Nazi Germany
Gettysburg Address (Lincoln), 139
Giersch, Herbert, 193–94
global financial crisis, xii
gold standard
as price fixing, 76
stance on, 75
Golden Gate Bridge, 90
government
activities of, 45–47
agencies of, 188–89
as all-powerful, 116
anarchic society as alternative to, 86
in Chile, 98–99
coercion of, 86
corruption of, 57
employment from, 6
as essential, 22
force monopoly of, 75
with free market, 22
freedom of speech and, 77
freedom with, 167–68, 180
grounds for action by, 37–43
on individual freedom, 35, 119
inefficiency of, 126
intervention in collectivist society, 58
intervention of, 17, 60, 122
market and, 37
on monetary system, 36–37
monopoly from, 37–39
negative income tax with, 86–87
oil regulation by, 177
as overgrown, 43
paternalistic action of, 43–44
political power of, 23
power of, 138
property of, 119
on property rights, 36
as rule maker, 34–37
technological changes from, 124
as threat to freedom, 167–68
trying to do good, 123
as umpire, 132
in voluntary exchange, 42–43
von Mises on, 96
welfare of, 95
government spending, 70, 213
of Britain, 100–102
in Civil War, 168
at laissez-faire height, 208
on military, 168–70, 172
private interest in, 110
trends of, 116
of United States, 102
during war, 168
in World War I, 168
government subsidies, x
graduated income taxes, 153
Great Depression, xii, 168, 207, 213
Hamilton, Alexander, ix, 142, 162, 174, 205
protectionist legislation of, 207
Hayek, Friedrich von, 4, 201
The Road to Serfdom by, 17, 187, 215
Hayek Tide, xii
Heritage Foundation, 215
history
of Chile, 99–100
free enterprise in, 117, 121–22
free society in, 49, 63
freedom in, xi, 97
of military, 162
open society in, 196
Hollywood blacklist, 27–28
Hollywood Ten, 27–28
Hoover Institution, 195
Hornberger, Jacob, 95
Horowitz, Helen, 148–49
households, 20
housing. See public housing
Hull House, 149
human behavior, 74
ICC. See Interstate Commerce Commission
ideal society, 83
ideas, 217
changes in, xii
force of, 63
policy with, xi–xii
to practice, 185–86, 189–92
publications on action from, 187
of Smith, 190
ignorance, 66, 181–82
liberty and, 67
impeachment, 73–74
income
in China, 157
in different forms of society, 23–24
of parents, 144–45
redistribution of, 194
in Russia, 156–57
income tax, federal, 153
income tax rates, 200
individual freedom
of Amish sect, 14–15
belief in, 66
in federal old-age programs, 14–15
in Germany, 71
as goal, 18
government on, 35, 119
in liberalism, 7
in open society, 196–97
priority of, 67
protection of, 2
standard of living and, 69
individualism
collectivism and, 72
Dicey on, 52
Industrial Revolution, 206
industry
definition of, 61
monopoly in, 61
regulation of, 46
inequality, 24
inflation
around world, 218
in Germany, 76
intellectual opinion, 199–200
change from, 203–4
evidence of change in, 215–16
influence of, 214
intellectuals, 70
collectivism of, 72
as free enterprise threat, 128
free market opposition of, 71
on free society, 174–75
on freedom, 79
interests
in free society, 81
pursuit of, 81
of Russia, 80–81
in voting, 108–9
See also private interest; public interest
Internal Revenue Service, 77–78, 103, 120
Interstate Commerce Commission (ICC), 38–39, 46, 212–13
intervention, 17, 60, 121
interview, 65
invisible hand, 80
Israel, 152
Japan, 208–9
Jefferson, Thomas, 133, 136–37
on slavery, 139
on standing army, 163
Journal of the American Statistical Association, 197
The Jungle (Sinclair), 212
Justice Department, 103, 120
Das Kapital (Marx), 182–83
Kennedy, Robert, 200
Keynes, John Maynard, 195, 207
kibbutz, 152
Kristol, Irving, 151
Labour government, 219
Labour Party, 17
laissez-faire
of Bentham, 57
in Britain, 211
consequences of, 57–58
Dicey on, 210–11
government spending at height of, 208
law respect from, 57–58
Philosophical Radicals for, 16–17
reaction to, 210–11
rise of, xii, 205–9
Lange, David, 219
law
in Britain, 58–60
economics and, 173
in France, 59–60
freedom and, 59
from laissez-faire, 57–58
obedience of, 57–59
in values, 155
Law and Public Opinion in the Nineteenth Century (Dicey), 189, 211
Lectures on Law and Public Opinion in the Nineteenth Century (Dicey), 50
Leeson, Robert, 229
liberalism, x
as authoritarianism reaction, 1
Benthamite, 17
in Britain, 50
to collectivism, 6–7, 50
content of, 7
in economic policy, 1–3
freedom of, 1
government activities and, 45–47
individual freedom in, 7
means for, 31
medicine with, 9
of nineteenth century, 173
objections to, 10
public housing with, 9–10
social policy conflicts with, 8
state interventions from, 8–11
of twentieth-century, 2–3
values in, 19
liberals, 52
libertarianism, xi, 188
on coercion and force, 90
criticism of, 68
utopianism in, 90
values of, 89
liberty, 66
early definitions of, 135
equality and, 135, 137
with equality of opportunity, 140
with equality of outcome, 149
ignorance and, 67
as part of equality, 137
in Western world, 143
licensure provisions, 46
Lincoln, Abraham, 139
London Times, 121
Looking Backwards (Bellamy), 210
lotteries, 150
Machan, Tibor, 65
The Machinery of Freedom (Friedman, D.), 74–75
Magna Carta, 100
majorities, 33
market
example of, 164–65
government and, 37
politics and, 164
unanimity in, 31
See also economic market; free market; political market
market economy, 197
Marx, Karl, 182–83
on capitalism, 53
influence of, 54
materialism, 141
mechanical invention, 158
medicine, 9
Meiji Restoration, 208
melting pot, 140
Middle Ages, 97
military, 46
civilian control of, 161–62, 170–71
command in, 164, 167
conscription in, 166, 189
in free society, 161
freedom and, 167
government spending on, 168–70, 172
history of, 162
Joint Chiefs of Staff in, 171
standing army as, 163
volunteer force in, 166
waste of, 171
military draft, x
Mill, James, 4
Mill, John Stuart, 67, 158
minimum wage rates, 45
minority groups, 29
Mitterrand, François, 219
monetary expansion, rate of, 76
monetary system, 36–37
money, 197–98
monopoly, 21
of force, 75
from government, 37–39
in industry, 61
of post office, 39–40
public, 39–40
of railroads, 38–39
technical, 37–39
types of, 38
Mont Pelerin Society, 91, 193, 201
Nader, Ralph, 85, 118–19
National Bureau of Economic Research, 227
national defense, 96
national health insurance, 200
National Institutes of Health, 77, 104, 120
National Medal of Science, 227
national parks, 41
National Science Foundation, 77, 121, 179
national security, 169–70
nationalization, 216
Nazi Germany, 82
negative income tax, 83–85
government with, 86–87
in utopianism, 94
neighborhood effect
on highways, 40
interventions from, 41–42
madmen in, 43
parks with, 41
pollution example of, 40
voluntary exchange in, 42
New York, 150
New York Times Magazine, 105
Newsweek, 79, 179
nihilism, 67
nineteenth century
economic freedom in, 209
free enterprise in, 121–22
liberalism of, 173
Nixon, Richard, 73
Commission on an All-Volunteer Armed Force of, 166
on tea industry, 108–9
Nobel Memorial Prize in Economic Sciences, 227
noninterference
Dicey on, 51–52
philosophy of, 51
Nozick, Robert, 152
occupation, x
allocation of, 17
freedom of, 15
oil, 176–77
open society, 194–95
components of, 196–98
in future, 200
in history, 196
individual freedom in, 196–97
market economy in, 197
political structure in, 199
private property in, 198
reliable rules in, 197
opinion
completed tides in, 219–20
countercurrent to, 204
future tides in, 220–21
See also intellectual opinion
optimism, 201
Orwell, George, 143
Other People’s Money and How the Bankers Use It (Brandeis), 212
Palm, Charles G., 229–30
parks, 41
The Passion of Ayn Rand (Branden), 91, 93
paternalistic action, 43–44
Paul Snowden Russell Distinguished Service Professor Emeritus of Economics, 227
Pepperdine University, 130
personal equality, 137
equality of opportunity and, 140
personal freedom, 77
philanthropy, 148–49
Philosophical Radicals, 16–17
policy
changes in, xii
of egalitarians, 153–55
with ideas, xi–xii
social, 8
political freedom, 13–17, 121
capitalism as necessity for, 16
economic liberalism and, 4
examples of, 4–6
from free market, 15, 23–24
global lack of, 15–16
political liberalism, 3
political market
defect in, 110
economic market and, 13, 105–7, 111–12
voting in, 106–7
yes or no system of, 107–8
political power
concentration of, 4
dispersal of, 22–23
of government, 23
politics
market and, 164
necessity of, 32–33
Pony Express, 39–40
Popper, Karl, 93
postal system
efficiency of, 109
monopoly of, 39–40
power
in free market, 22
of government, 138
political, 22–23
See also political power
practice, 188
ideas to, 185–86, 189–92
praxeology doctrine, 92
prediction
of capitalism survival, 68
of Nixon impeachment effect, 73–74
Presidential Medal of Freedom, 227
press, 121
private interest, 105–9
in government spending, 110
private property
definition of, 198
in open society, 198
as solution, 94
privilege, 154
production, 187
productivity
of capitalist society, 69
of free society, 180–81
Prohibition, 213, 217
propaganda, 25
property rights
as arbitrary, 82–83
of government, 36
universality of, 82
psychological egotism, 80
public health, 9
public housing, 9–10
public interest, 105–6
public libraries, 112
public monopoly, 39–40
public policy, 206, 227–28
quotas, 207
Raico, Ralph, 65
railroads, 38–39
Rand, Ayn, 91–93
Read, Leonard, 215
Reagan, Ronald, 200, 219
Reason, 78
regimentation, 122–23
Relation between Law and Public Opinion in the Nineteenth Century (Dicey), 100
religious freedom, 14
Renaissance, 97
rent control, 45
Report on Manufactures (Hamilton), 142, 174, 205
representation, 32
responsible individuals, 8, 43
Revolutionary War, 161–62
revolutions, 162–63
The Road to Serfdom (Hayek), 17, 187, 215
Robinson Crusoe (Defoe), 18, 68
Robinson Crusoe (fictional character), 18, 68
Russia
income in, 156–57
interests of, 80–81
Russian Revolution, 162
savings bonds, 177–78, 196
Schumpeter, Joseph, 3, 54–56, 173
science, 72–74
Securities and Exchange Commission, 117
Sevareid, Eric, 101
Shakespeare, William, 203
Sherman Antitrust Act, 213
Sherman Anti-Trust Law, 141
Simons, Henry, 4, 42–43
sin, 66, 90, 181
Sinclair, Upton, 212–13
slavery, 139
Smith, Adam, 10–11, 60, 174
alternatives to, 208
on equality, 154
on fair competition, 132–33
ideas of, 190
on invisible hand, 80
public policy impact of, 206
The Wealth of Nations by, 124, 175, 205
social action, 7
social organization
in economics, 19
issue with, 19
social policy, 8
social science, 72
Social Security programs, 15, 46, 79
socialism, 23
on campuses, 213
democracy with, 13
freedom in, 26
totalitarian, 13
in United States, 118
in Yugoslavia, 118
See also Fabian socialism
socialist failure, 94
society
advocacy in, 23
as capitalist, 69
ideal of, 83
income in, 23–24
See also free society; open society
Soviet economy, 68
stability, 69–70
standard of living, 69
standing army, 163
state intervention, 8–11
status quo, 49
Stone, Ezra, 169
suicide, 90–91
Sumner, William Graham, 149
Supreme Court, 104
tariffs, 45, 205–6
benefits of, 51
of Britain, 175
taxation
Dicey on, 217, 218
free society and, 118
as rising, 118–20
from Vietnam War, 188
See also negative income tax
Taylor, John B., 231
tea industry, 108–9
technical monopoly, 37–39
technological changes, 124
Texas Railroad Commission, 45
Thatcher, Margaret, 218
Theory of Moral Sentiments (Smith), 205
think tanks, 186, 215
Thomas, Norman, 213, 214
Thoreau, Henry David, 132
Time, 26–27
Tocqueville, Alexis de, 137–38
tolerance, 52, 89, 91
totalitarian socialism, 13
tourist allowance, 8
trade unions, 62
Treasury and the Federal Reserve, 178
trial and error, 44
tycoons, 176
tyranny, 49
umpire, 132
unanimity, 85
as ideal, 33
in market, 31
United States
Britain and, 126
egalitarians in, 152
freedom in, 116–17, 169–70
government spending of, 102
revenues of, 207
socialism in, 118
University of Chicago, 77, 112, 130, 227
University of Virginia, 137
utilitarianism, 68
utopianism, 90
negative income tax in, 94
vouchers in, 94
values, 1
freedom as, 18
fundamental differences in, 32–33
law interference in, 155
in liberalism, 19
of libertarianism, 89
president as example of, 73
in science, 72–73
Veterans’ Administration, 46
Vietnam War, 188
voluntary charity, 84–85
voluntary exchange
government in, 42–43
in neighborhood effects, 42
von Mises, Ludwig, 4, 91, 93
on government, 96
praxeology doctrine of, 92
voting
in political market, 106–7
special and general interests in, 108–9
voucher system, 83–84, 94
Walden (Thoreau), 132
warning labels, 182–83
Washington, George, 162–63
waste, 171
wealth, 24, 217
The Wealth of Nations (Smith), 124, 175
economics influence of, 205
wealthy
improvement for, 157–58
See also income
Weaver, Richard, 204
welfare, 87–88
in Chile, 98
of government, 95
welfare state
of Britain, 212
as national security threat, 169–70
rise of, xii, 209–14
West, Ed, 84
West Point, 163
Western world
collectivism of, 70
individual liberty restrictions in, 143
Westmoreland, William, 166
Whip Inflation Now Program (WIN), x, 103
WIN. See Whip Inflation Now
Wolfe, Bertram, 195
World War I, 76, 208
government spending in, 168
World War II, 14, 71, 153, 209
Yellowstone National Park, 41
Yugoslavia, 118
Zupan, Marty, 65