Page 113 - Scrimshaw1975-76

Scrimshaw Page 5 I~~~:=fll Personal ViewPoint: A Grave Misunderstanding by Richard M. Tucker Wo~ds are often tyrannous, usurption of the word "s ests . especially when they are used to that this is the only ratio~gwa W.M.C. who argue t~lS way:) persuade. Recently, having just of handling our affai vc ta'nl Y J:layek, however, considers this left behind a fairsized recession it if the Hu ph au:>.. er I y line of reasoning to be "silly," has quite understandably been' in more acc~a;~y-Jav~ts bl~l ~ere, countering that, in fact, "the very Ifashion to seek "bold new" "national eco~~i;e c~~ol" !! comp1exity whic~ the structure of :~t::!~~~o~af:r~rl~d:n~ut~~: ~~~~ ~~:~ ~~tomaticaliy at- :~~~d ~::~~;~ ::t~~~ng':~ malfunctioning A sizeable block of argument against central plan- support h~, lin~ up behind one To read the statement of the ning.':, The" "public informat!on concept, national economic Initiative Committee for National board and spontaneous ordering r--s; _... _ ~~asrm!~t~r~~y N:~p:oO:~t~~! ~~:~~~ti:~a~~~~~O~~i:;~~~~ ;~~a~i~:~~as~gl~h:sse:r:l~:! Balan~ed Growth and Economic economy (far worse than our brief interdependence and. complexity _ r '=""Planmng Act, sponsored in the earlier experiment with the assume greater dominance over Sen~te by ~enators Hum~rey and National Recovery Administration the economy. taa:~'u~ow~f~7t~n:s ~~,~::aa~~ ~~i~: ~~~IJ9g3~'~~ ~~ea~l~n~~n~ According to its advocates, , Wise? Are there better dicate the number of cars the ~:lt~on~e:~;no:J~ct~~in:~: of securing balanc~ growth number of generators and the certainty facing businesspersons r~ emp1oyment? Fmally, is quantity of frozen foods we are by allowing the government to 'L~_ ..."'"CIII th~ wo~ "planning" being used likely to require in, say, five years, decide the future development of .,tI~~rJl fairly, With integrity and honesty? and it would try to induce the their particular concerns. handled Only the by ac- would details relative be industries act to Friedrich A. Hayek, the Austrian cordingly." Again, we must business. But Hayek emphasizes economist who received the Nobel question the use of the verb "in- that the result would really be Prize in 1974, has recently re- duce," when the "means of in- greatly uncertainty for addressed himself to these ques- Iluencing" the decisions of firms management, as its "ability to tions in a brilliant essay, "The would include "selective credit make changes would become ~ew Confusion About Planning," controls, guidance of basic capital critically dependent on the red In the January Morgan Guaranty flows, limits to the use of air, tape, delay, and bureaucratic Survey. I say re-addressed water, and land, and mandatory decisions." One of the great ad- because, as Hayek notes, the idea (emphasis mine) resource vantages of a competitive economy was "originally developed by some allocation." This set of operational is "that we allow those who have of the organizers of the German tools seems more appropriate to shown' the greatest skill in War economy during World War the Soviet economy than to our forecasting to make preparations I," and was "thoroughly discussed relatively free market economy. for the future." by economists in the 1920S and Thus, although "national economic The dictates of space compel me 193OS." Indeed, one of Hayek's planning" is certainly not a "new" to conclude this short essay classic works of political economy, idea, it is definitely "bold!" without having given due con- !he Road To Serfdom (944), was The discussion of pJanningJo be sideration to many elements of found in the professional economic "the great misunderstanding" .....--~W:;:o-r-:,-:d:-:N':'e--ws--:p-e--rs--pe-c-.J::Jt:~ ~~1fsu~~o;:r:fh~~V:e~n~~~~~~ journals of the 1920's and 1930'S, surrounding "national economic Hayek is truly more than correct in It)' Boger Levin noting that "economics, more than dealt at length with the relative planning." For example, we have other scientific disciplines, is liable efficiencies of centralized collec- not considered the great such costs to inherent tivist versus liberty in severe economic planning Order In The Court! ~;~c::ent f::i~~:u~~~nfads'i~~~ decentralized market planning. restrictions upon the freedom of in reached inherent The sun rises in the east, all was a golden opportunity for 12 professional discussion of popular The conclusion endorsement was of the an enterprise and of such economic the concentration unequivocal policemen are on the take, and average everyday Americans to superstitions which earlier relative efficiency of capitalism- power in the hands of the govern- Patty Hearst is guilty. These are strike back at affluency. I am not generations of economists had even in the face of the Great ment.; Can you imagine what three postulates that the twentieth- accusing the jurors of any con- successfully driven back into the Depression. As Hayek clarifies the Richard Nixon could have at- century American has come to scious plot whatsoever, but on the circles of cranks and outcome of this historic debate, tempted with such control! We believe. Well, the sun does rise in other hand bias and prejudice have demagogues." "the economic order of any large have also not discussed whether the east, policemen mayor may found a home in the subconscious society rests on a utilization of the economists would be capable of not be on the take, and Patty action of every socialized in- To address our last question knowledge of particular cir- "good" planning; should they be Hearst mayor may not be guilty. dividual. How can a thinking mind first, the major ambiguity in the cumstances widely dispersed given the opportunity. I rather Unfortunately, the system of be saturated with unobjective current. discussion of "national among thousands of millions of doubt that they would be, if merely justice has been subverted in a concepts for over a year without economics planning" is the individuals." Herein lies the because the date available is manner completely out of its forming a conceptual opinion? It equivocal use of the word "plan- strength of the market and the-- anything but sufficient for the task, control. can not. How can those on lower ning." Hayek finds it incredible, as relatively--competitive deter- both in terms of quantity and in socio-economic levels watch the do I, that many of the participants ruination of prices. They provide terms of quality. Part of this I am not saying that Miss Hearst Hearsts throw money right and left in this discourse actually 'believe "a procedure by which it is misplaced, "Hayek suspects, trust is innocent, nor am I claiming that to help dear Patty and not feel that the discussion about economic possible to convey to the individual is due to the belief, by many ad- she is guilty. I only assert that I do resentment? They can not. How planning refers to the question of managers of productive units as vocates of planning, in "the wholly not know, and at this point her trial can people be told that Patricia is whether people should plan their much information in condensed wrong idea that the efficient use of is a mockery. During the time that guilty and not believe it? They can affairs and not to the question of form as they need in order to fit resources is determined mainly by Patricia Hearst was in hiding, the not, because they are being told who should plan their affairs." their plans into the order of the technological and not by economic min.ds of Americans were being subtly by the sources they rely on Everyone is a planner in the sense system," and "provides the in- consideratioos." bramwashed gradually and that she is guilty. Is there a plot to "that we should handle our com- centives for constant discovery of Still, al Ihis point, we may methodically. There was no single send Patty Hearst to jail? No. Can mom problems as rationally as ne·...' fl'\cts which impr'lve adap- conclude that the advocates of force behind this propaganda, she receive a fair trial? No. possible and that, in doing so, we tation to the ever-ch, ,ging cir central economic control have except for resentment and should use as much foresight as we cwnstances of the world in which biased the discussion in their favor jealousy. Patty Hearst, the rich I contend that most people, due can command." The question is we live." Hayek widely ndds, so as by chosing their words with less prima donna, whom ail were to over a year of fireside judgment, how may this best be done. As not to appear naive, that "of course than scholarly integrity and certain would be bribed free at the have decided Miss Hearst's fate. I Hayek gently phrases it, whether the adaptation is never as perfect honesty. Beyond this, I personally time of her capture, has become also feel that the jurors are no "it is better that the holder of as the mathematical models of believe that "national economic the object of hatred from those who different even if they have decided coercive power (the state) should market equilibrium suggest, but it planning" would be a diastrous on a sub--eonscious level. It will be confine himself in general to better than any much is certainly :: I~~e fO~~~~te.:eur~~~~~ impossible for Patty Hearst to creating conditions under which which we know how to bring about raiJure. The government would do carry well to begin to judiciously justice system and turned it into a receive a fair trial and a fair the knowledge and initiative of by any other means." Certainly we out the duties already legislated comedian's nightclub. When judgment. individuals are given the best should try not to let "the perfect" for it by the Employment Act of witnesses such as Steven Weed At this point I would like to draw scope so that they can plan most drive out "the good" for "the bad." 1946, i.e. by implementing write books rather than· testify, a parallel. Why wasn't the Hearst successfully, or whether a rational and then are audacious enough to case treated like the Kermedy utilization of our resources Hayek notes that a "new ~r:,i~!~a;d ~~f.a~~ ~~~~ capitalize on the misery of his ex- case? Why has evidence been requires central direction and argument" has surfaced to fit the do more towards attaining a fiancee. I then propose America continually leaked to the public organization of all our activities Club of Rome hysteria of the 1970's. ba1anced grow-th and full em- has become a moral on the side of about a 19-year-old girl, when an according to some consciously Some now contend "that the pl:oyment with stable prices than immorality. ex-Harvard (due to cheating on constructed 'blue print.'" market economy may have been attempting to gain dangerous exams) dignitary was essentially an adequate mechanism under control over the private sector's of people that sit and his own judge who pronounced his The most unfortunate aspect of J:,~t~r:~!r:......:eco=no~m2!i'~ta~Sks:!;. _ of Miss Hearst are own innocence. Why has the Hearst the discussion is that "the ~~ie~ ~:~: Americans"- trial become publicized to the point socialists of all parties have ap- ,,,,,,, .. have """"m, '" ,om.l"" Express your is great. of Patty Hearst T-shirts? It seems rrorriated the term 'planning' for ;;!y ;::r~~ them not as if the Hearst trial shoud be a planning of the latter type, and it is ~;~;;:!~Of~~~c: views! "preconceived notions" sellout on Broadway with Mae now generally acceJted in this ~~e:nU:t r':!w:=~ about Patty Hearst? Absolutely West playing the role of Patty, and sense." This is indeed a clear ~~Ori~:S Write to not. Before she was ca)tured most W. C. Fields playing the judge and example of the tyranny of words, people had decided her fate-and it jury. • for. as Hayek laments, this ~,:~~a\I:~"i!;::n;; SCRIMSHAW