O Intermitente<br> (So long, farewell, auf weidersehen, good-bye)

O Intermitente
(So long, farewell, auf weidersehen, good-bye)

segunda-feira, dezembro 20, 2004

Battle for free-market agenda is only half won

Artigo de Milton Friedman na Hoover Digest reproduzido pelo The Australian.

IN the almost six decades since the end of World War II, intellectual opinion in the US about the desirable role of government has undergone a major shift. At the end of the war, opinion was predominantly collectivist. Socialism - defined as government ownership and operation of the means of production - was seen as both feasible and desirable. Those few of us who favoured free markets and limited government were a beleaguered minority.

In subsequent decades, opinion moved away from collectivism and toward a belief in free markets and limited government. By 1980 opinion had moved enough to enable Ronald Reagan to win the presidency on a quasi-libertarian agenda.

The collapse of the Soviet Union in 1989 delivered the final blow to the belief in socialism. Hardly anyone today, from the far Left to the far Right, regards socialism in the traditional sense of government ownership and operation of the means of production as either feasible or desirable. Those who profess socialism today mean by it a welfare state.

Over the same period, the actual role of government in the US also changed drastically -- but in precisely the opposite direction. In the first post-war decade, 1945 to 1955, government non-defence spending, federal, state and local, equalled 11.5 per cent of national income, varying from a high of 16 per cent in 1949 to a low of 8.5 per cent in 1952. From then on, spending rose rapidly. By 1983, government non-defence spending reached 30 per cent of national income, nearly triple the average amount in the first postwar decade. In addition, over the same period, government intrusion into business and private affairs exploded. No doubt the growth of government was one reason for the shift in public opinion. Big government in practice proved less attractive than big government in prospect.

Reagan's election brought the growth in government non-defence spending to a halt. As of 2003, government non-defence spending equalled 30 per cent of national income, the same as it was in 1983. Government intervention through regulation and controls did fall somewhat during Reagan's presidency, but has since resumed its steady rise.

To summarise: After World War II, opinion was socialist while practice was free market; currently, opinion is free market while practice is heavily socialist. We have largely won the battle of ideas; we have succeeded in stalling the progress of socialism, but we have not succeeded in reversing its course. We are still far from bringing practice into conformity with opinion. That is the overriding non-defence task for the second Bush term. It will not be an easy task, particularly with Iraq threatening to consume Bush's political capital.

posted by Miguel Noronha 5:17 da tarde

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"A society that does not recognize that each individual has values of his own which he is entitled to follow can have no respect for the dignity of the individual and cannot really know freedom."

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