President, American Farm Bureau Federation
No. 1 … and THE TRUTH SHALL MAKE YOU FREE
From the beginning men have come to know that God’s laws must be obeyed if we are to live in harmony with His Universe. Human progress may be measured by the improvement in our capacity to recognize the truth, which is God’s will, and to use effectively and wisely the resources and blessings which He has given.
We have made wonderful advances in agricultural productivity as we have discovered the laws of nature and applied knowledge and truth to farm operation. The truth of moral laws is not disputed but their acceptance comes more slowly, and we pay a terrible price in human misery when they are ignored.
Another area of truth that is an essential part of God’s plan is the economic laws that govern our efforts to earn a living. Disregard of a few simple economic truths has caused much of the present disparity in farm income. What is economic truth?
People will work for those things they want but will offer little or nothing for items that they no longer desire. Price is the best known means by which consumers advise producers of the kind and quantity of goods they wish.
The nearly 8 billion dollar supply of unwanted farm products in government storage bins is a costly and deteriorating monument to the failure of a government pricing program that ignores the desires of consumers. We farmers may once again share in the current level of general prosperity if we will produce the things people want.
Another truth often overlooked is that economic laws cannot be successfully replaced by political laws. Legislation only delays or temporarily modifies the effect of economic forces. Many members of Congress thought that they had repealed the law of supply and demand by fixing the prices of cotton, wheat, and corn at a high level. However, farmers responded to the fictitious prices by producing more from fewer acres and also added to the woes of other farmers with competing production from their diverted acres.
Consumers turned to lower priced substitutes or reduced their purchases. Low prices stimulate demand and discourage production—high prices reduce consumption and encourage increased production.
Where are those prophets of doom who predicted that $12.00 hogs would result in increased production and lower prices? Would the price of hogs have gone above $16.00 per hundredweight if a government support price had been set at that level?
A third truth that most folks would rather disregard is that change is certain. No amount of promotion, advertising, speech-making, or emotional appeal could have prevented the replacement of horses by tractors.
Human desires are constantly shifting, and farmers will be more prosperous when they facilitate rather than retard needed changes. Economic forces which cause farmers to alter their production patterns or seek new sources of income may seem cruel. In reality, the greatest suffering usually results from political action that delays the necessary adjustments.
The price and income troubles of agriculture are the direct result of our experiments with a socialistic, government – directed farm economy.
It is becoming increasingly apparent that government pricing and control in agriculture not only is a failure but that it threatens to replace individual freedom with a bureaucratic dictatorship. No, it is not too late — the free choice economic system that helped make this nation the envy of the world can be restored in agriculture.
“. . . and the truth shall make you free.”
No. 2 I’VE HAD ENOUGH SOCIALISM
Socialism is more than a nasty word. It is a system based on government ownership or control of property — especially land and capital investments. This limitation or denial of property rights is invariably accompanied by increased government restrictions on the freedom of individuals. The “superior” minds in the bureaucracy direct the planned economy through control of production and prices while the extremely high costs of government are reflected in tax rates that destroy incentives.
The extent to which we have unwittingly accepted socialism may be measured by the level of taxation. More than a third of our total national income is now taken to support government. Despite strong public reaction, the $72 billion budget was reduced very little by Congress. Thus, we continue to move toward the Welfare State.
Why should we resist this creeping disease?
Why do I say, “I’ve had enough socialism”?
First, socialism is a proven failure wherever and whenever it has been tried. It failed in ancient Rome; it brought starvation to the early American settlements of Jamestown and Plymouth Rock; it is failing miserably today in England and Russia.
Socialism fails because it costs so much to manage the economy that the high tax rates destroy the incentives to work and save. It fails because the decisions of a few political planners are more likely to be in error than the combined judgments of thousands ofindividuals bargaining in a free market for goods and services. It fails because political law cannot replace fundamental economic principles.
Second, socialism will inevitably lead to some type of communistic dictatorship. The proven failure of a socialistic scheme always brings proposals for further experiments in government management — never a return to free enterprise. Practically everyone recognizes that government farm crop price fixing is a costly failure, yet many members of Congress now propose to substitute a new panacea — compensatory payments. When all is said and done, the only difference between socialism and communism is the degree of state control over the individual. They are blood brothers.
The third reason for my statement, “I’ve had enough socialism,” is that under the Marxist system productivity declines and the standard of living is lower than in a free choice capitalistic system. State capitalism appropriates the individual’s earnings for investment in government enterprises. Pride of ownership and the desire to save are destroyed.
The abundance of the better things of life which we enjoy in this country is a result of the stimulation of human energy and initiative that comes when folks
can keep a substantial part of their income for their own use. Socialism dries up the wellspring of progress — human energy released in response to incentives.
Fourth, socialism is an atheistic philosophy. It depends upon force rather than freedom of choice by individuals—in fact, it is economic slavery. It offers security but eliminates opportunity. It encourages individuals to shift responsibility from themselves to the State. In all ways, it tends to destroy self-reliance and promote moral deterioration. Christianity challenges individuals to give of their best. Socialism minimizes the dignity and importance of the individual while it glorifies the all powerful State.
Yes, I’ve had enough socialism.
No. 3 STRAWS IN THE WIND
Which way does the wind blow? An airport wind sock, a twisting whirlwind, drifting tumbleweeds — straws in the wind.
There are economic and political winds that determine the kind of government we will have in the future. No one can see the wind —few can see which way our nation is going. We are so involved in current issues that it is difficult to tell whether our free enterprise system will continue or whether it is in danger of being replaced by a socialist dictatorship. Fortunately, there are some straws in the wind by which we can measure the speed and direction we are moving.
In what ways do we move toward socialism?
There are five major areas of conflict between our successful free choice capitalism and the government-directed systems of Sweden, Russia, and other nations.
First, socialism is based on government ownership or control of the capital and property used in production. For example, the advocates of state socialism favor all proposals for federal electric power projects, regardless of their merit. They use the tight money issue to boost sentiment for interest rates set by Congress, at such low levels as to discourage private saving and to force the substitution of government capital in major industries. Farmers have already accepted a considerable degree of bureaucratic control over the use of their property under the acreage quota programs. More, rather than fewer, controls are being proposed.
Second, socialism cannot tolerate a free market for goods and services. In fact, a price system which reflects changes in supply and demand is our greatest assurance of freedom. Wage and price controls, whether in war or peacetime, are a real threat to the free market. The Commodity Credit Corporation which holds $7 billion of crop surplus stocks and also markets a large portion of all farm products is rapidly replacing private and cooperative selling agencies. Compensatory payments for farmers and government price fixing in agriculture, business, and labor are, in reality, attacks on the price system.
A third area of government control over individuals that is necessary in a socialist dictatorship is limitation on the choice of an occupation. We are, as yet, relatively free to choose and change our work. However, the closed shop, long apprentice periods, unduly restrictive license requirements in several professions, and the proposed subsidies to induce inefficient farmers to stay in agriculture are straws in the windthat indicate danger ahead of us.
The fourth control of the socialist dictatorship over individuals is regulation and averaging of income. The theory of the socialist is that since all are born equal, all should remain equal regardless of ability or effort. This is accomplished by extremely high income taxes, constantly increasing social security payments, socialized medicine, increased minimum wages, and income payments to farmers to replace competitive prices.
A fifth measure of our drift toward socialism is the degree of substitution of federal government authority for state and local responsibility. Supreme Court decisions limiting states’ rights, federal aid to schools and roads, federal housing, the $72 billion federal budget are all straws in the wind.
How much further down this road to socialism must we go before we heed the warning signs?
Ideas On Liberty
Under Guise of Taxation
I do not believe that government should seek social legislation under the guise of taxation. If we are to adopt socialism, it should be presented to the people of the country as socialism, and not under the guise of a law to collect revenue.
Calvin Coolidge
