Friedrich Fröbel (1782–1852)
Best known for creating the concept of kindergarten or “garden of children,” Friedrich Fröbel held that improvement of infant education was a vital preliminary to comprehensive educational and social reform. The Baroness of Marenholtz-Bülow, carried his ideas to educators in England, France, and the Netherlands. Later they were adopted by other countries. In the United States, the Froebelian movement achieved its greatest success. Today Froebelism is widely accepted and credited as the pedagogic system of this creative German educator..
Fröbel’s most important contribution to educational theory was his belief in “self-activity” and play as essential factors in child education. He held that he teacher’s role was not to drill or indoctrinate the children but rather to encourage and facilitate their self-expression through play, both individually and in group activities. He devised circles, spheres, and other toys—all of which he referred to as “gifts” or “occupations.” They were designed specifically to stimulate learning through activity.
Falling Leaves
This parable is based on the 1912 movie Falling Leaves. It illustrates the conditions of effective prayer.
Voice-Over Transcript
0:00 This is a parable nested within a movie titled Falling Leaves. It was shown in theaters during 1912.
0:04 Our story opens with Winifred on the piano as she and her younger sister, Trixie, sing together.
0:10 Winifred begins coughing uncontrollably and she is led from the room leaving Trixie alone and bewildered. One can only imagine the child’s feelings of helplessness.
0:25 After examining Winifred, the family doctor talks with her mom. Trixie’s presence goes unnoticed as she is listening intently. She sees the doctor motion towards the garden and hears him say: “By the time the last leaf has fallen from the trees, Winifred will have passed away.”
0:35 Trixie is clearly distraught as she says her prayers before bedtime.
0:44 She can’t sleep, so she puts on her shoes and springs into action, with a plan to save her sister.
0:50 Trixie is in the garden as she asks God to bless her efforts.
0:56 She picks up the first leaf from the ground and carefully ties it back on the tree. She works continuously through the night, to save the life of her sister, in the only way she knows how.
1:09 Just before dawn, through what can best be described as the choreography of the Spirit, a man that is passing by notices the child acting strangely.
1:20 Curiosity gets the best of him as he enters the garden.
1:24 He then asks the child what she is doing.
1:35 Trixie explains “I am tying these leaves back on the tree to keep my sister from dying.” The expression on the man’s face encourages Trixie to tell him about her sister as she acts out the symptoms of Winifred’s disease.
2:00 The man says he might be able to help and our joyful little heroine then leads him towards the house.
2:10 The man greets the mother of the girls and hands her a business card that identifies him as a bacteriologist.
2:20 (Business Card (Doctor Earle Headly – Bacteriologist)) The man explains he is a doctor and believes he has found a cure for Winifred’s tuberculosis.
2:25 He is introduced to Winifred and explains the treatment. Winifred is ready to try pretty much anything at this point. Trixie’s prayers are answered. Not because of her social, religious or economic, or status. Not because of any set formula or the meaningless repetition of words. It was because the longing look of an innocent child touched the heart of our loving, Heavenly Father. And Trixie has also taught us something about the simple prayer of faith. For it is the sincerity of a prayer that is the assurance of its being heard.
2:55 (Dissolve to AU Logo)
Creativity Linked to Increased Alpha
Creativity is integral to many aspects of life, from being an effective problem solver to a good artist, but the brain function underlying this important trait is not well understood. A study published in Neuroscience uses EEG (electroencephalogram) technology to explore which brain regions are active during creative thinking.
An Augmentation Ministry
When Jesus gave us a promised helper, the Spirit of Truth, he made it possible for us to enjoy his presence continuously. This gift, from the Way, the Truth, and the Life is fully capable of leading us; along the Way, into all Truth, so that we may enjoy the most abundant Life possible; just as the Master said. Those who put Jesus on the cross to die thought that his influential presence would somehow be diminished when, in fact, his ministry has been augmented by the spirit complement that indwells and also envelopes us.
There are those who would usurp the authority of the Spirit. They are the great pretenders, that habitually elevate their personal evaluations, to the level of absolutes. They may think they’re justified while attacking the underpinnings of another person’s faith. They might feel as though they are qualified to perform the equivalent of psychological or theological surgery on the souls of others. And they might presume to impose their individually circumscribed and personalized science, philosophy and religion on our brothers and sisters.
Jesus did not call us to remove anything from the hearts and minds of our siblings. He instead demonstrated how we may put ennobling truths into the minds and hearts of humankind. These truths are usually found, in a highly concentrated form, within the parables Jesus shared with his disciples and the Apostles. Today, I offer for your consideration, a contemporary parable that focuses on the quality of such concentration.
If you have ever known someone that suffers from depression, or if you have experienced it personally, you probably know something of what is sometimes called the binocular trick. This analogy is used to describe habit where the individual magnifies or exaggerates problems, while they demagnify, disqualify, or minimize their blessings. Just as beauty is in the eye of the beholder, perceived blessings and curses may be as well.
A lens is a concentrator. In the case of telescopes it also serves as a light gathering device. The first person to apply for a patent for a telescope was Dutch eyeglass maker Hans Lippershey. In 1608, he laid claim to a device that could magnify objects three times. His telescope had a concave eyepiece aligned with a convex objective lens. One story goes that he got the idea for his design after observing two children in his shop holding up two lenses that made a distant weather vane appear close. Others claimed at the time that he stole the design from another eyeglass maker, Zacharias Jansen.
Jansen and Lippershey lived in the same town and both worked on making optical instruments. Scholars generally argue, however, that there is no real evidence that Lippershey did not develop his telescope independently. Lippershey, therefore, gets the credit for the telescope, because of the patent application, while Jansen is credited with inventing the compound microscope. Both appear to have contributed to the development of both instruments.
Adding to the confusion, yet another Dutchman, Jacob Metius, applied for a patent for a telescope a few weeks after Lippershey. The government of the Netherlands turned down both applications because of the counterclaims. Also, officials said the device was easy to reproduce, making it difficult to patent. In the end, Metius got a small reward, but the government paid Lippershey a handsome fee to make copies of his telescope.
In 1609, Galileo Galilei heard about the “Dutch perspective glasses” and within days had designed a scope of his own — without ever seeing one. He made some improvements — his creation could magnify objects 20 times — and presented his device to the Venetian Senate. The Senate, in turn, set him up for life as a lecturer at the University of Padua and doubled his salary, according to Stillman Drake in his book “Galileo at Work. Legend has it that Galileo was the first to point a telescope skyward. He was able to make out mountains and craters on the moon, as well as a ribbon of diffuse light arching across the sky — the Milky Way. He also discovered the rings of Saturn, sunspots and four of Jupiter’s moons.
A parable is, in essence, the means to convey truth to people with a wide variety of capacities to comprehend. In substance a parable is also known as a parabolic analogy. It is called that because it is analogous to the way a lens, an acoustically tuned amphitheater, or a satellite dish makes use of curvature and forms a directing arc to concentrate the light, the sound, or the radio waves on some target.
There are three kinds of light: physical light, intellectual insight, and spirit luminosity. Jesus, the master story teller, made use of the narrative’s directing arc to focus us on the truth of the matter. When we read these stories we make use of physical light to enhance our intellectual insight. When we are responsive to the Spirit of Truth’s divine leading, our spirit luminosity brings the components of truth: the facts, meanings, and values into precise focus.
Restoring Legitimacy – The “American” Corporation
On August the 19th in 2019, Business Roundtable members issued a Statement on The Purpose of a Corporation. In it, the signatories said “While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders.” Among the stakeholders listed were customers, employees, suppliers, communities, and shareholders.
People, associating for a common purpose and acting corporately embody the most authentic and basic definition of a corporation. Within that context, there are many variations of corporate governance wherein the producers, consumers, and others with broader interests call the shots. They are the ones with stakes that are deeply set within their communities. They tend to be more cooperative and less exploitative. Sure, they’re profit motivated, but this is usually tempered with genuine service motivation.
Despite their assertions with respect to their model of corporate governance, members of the Business Roundtable have consistently promoted a paradigm shift that effectively subjugates the will of those doing the actual work, to that of what our nation’s Founders once described as “foreign potentates.” They shop the world for cheap labor without much regard for the communities in which they operate or the people whose favor they court.
Contrast this to Edmund Burke’s model “gentleman of fortune,” wherein he championed the middle class values of hard work and sobriety:
“When he designed the improvement of this, he did not take the ordinary Method of establishing Horse races and Assemblies, which do but encourage Drinking and Idleness but at a much smaller expense he introduced a Manufacture which, though not very considerable, employed the whole town, and in time made it opulent.”
Edmund Burke (1729-1797 (Anglo-Irish statesman, economist, and philosopher))
The CEO of McDonalds received a pay package of just over $20 million in 2021. The average hourly pay is approximately $7.40 per hour for a Cashier. That is just fifteen cents above the minimum wage that was established on July the 24th in 2009. Still, even though the current boss makes 1.3 million times that of a cashier, he still can’t insure the English muffin is toasted for the company’s signature breakfast sandwich.
The shareholder rights movement is behind the quality deficit, the tamped down wages, and the hollowed out benefits packages. It has effectively gutted the middle class while also retarding any real movement towards universal health care within the USA. It doesn’t require even a modicum of management genius to understand that employees and families, stewing in hormones of stress, are expensive to insure.
For those of us who grew up believing that sending an unsigned letter is act of cowardice, the sophistries of the largest corporations are clearly problematic. The public discourse has been converted from what Marshall McLuhan once described as a whirlpool of information to a cesspool of disinformation thanks to the fully graspable wing-nuts big business has installed on the Supreme Court of the United States. Integrity challenged justices have legalized political bribery. They have personally benefitted from dark money nominations, confirmations, and accommodations thanks to those who are hostile to the Consent of the Governed.
While Roundtable members pay lip-service to community, they have demonstrated no reverence for government that is of, by, and for the people. The earnings calls that reveal no hesitation for price gouging, the obfuscated and off-the books expenditures that insure a steady flow of dark money that is used for deceptive practices, and the funding of culture wars designed to distract combine to make it clear, The Business Roundtable was not sincere when it said it intended to balance the interests of all stakeholders.
The Roundtable is mostly comprised of corporations where outside investors exercise a controlling interest. As such, they feel no need to explain how gearing everything for the inheritors, skimmers, and hoarders of wealth benefits the average Joe. They exhibit no remorse for converting our elected representatives into their own ventriloquist’s dummies. And they do this surreptitiously, insuring that any consent of the governed is never informed consent.
The largest American Corporations use the infrastructure of the United States while making no meaningful contribution to the public treasury. They are too cowardly to publish reasoned opinions over their own signature precisely because they use the roads, the bridges, the airports, and the air traffic control system while incessantly chanting their tax cut mantra and using public funds for stock buybacks. They have embraced the grift that privatizes gains while socializing losses.
“I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. … You are a den of vipers and thieves.”
– Andrew Jackson (On closing the Second Bank of the United States in 1834)
The people that do this were raised in the most affluent neighborhoods, they enjoyed the company of their most advantaged friends, they went to the best schools, and still, they never learned: When they cover their eyes, we still see them.
Restoring Legitimacy – The United States Supreme Court
On December the 1st in 2021, during oral arguments about a Mississippi abortion case, United States Supreme Court Justice Sonia Sotomayor addressed the court’s politically motivated willingness to abandon precedent and thereby sully the rule of law. She posed a question: “Will this institution survive the stench that this creates in the public perception that the constitution and its reading are just political acts?” On September the 9th in 2022, Chief Justice John Roberts said: “Simply because people disagree with opinions, is not a basis for questioning the legitimacy of the court”
To many observers, the most prominent feature of today’s High Court is the ability to dumb-down the cardinal precepts of the Constitution while using high sounding words. Like the lackadaisical employee trying to look busy, Justices search far and wide, for obscure legal opinions, while ignoring the cardinal precepts articulated so beautifully in the words advanced by the Founders of one American nation. The Declaration of Independence included the statement “Governments are instituted among Men, deriving their just powers from the consent of the governed.” While questioning the legitimacy of public perception, Roberts is just one of several Justices that like to masquerade as originalists and textualists. They dishonor themselves repeatedly as they steadily undermine and corrode the democracy underpinnings of our constitutional republic.
The prevailing public perception is informed, in part by sophistries rooted in delusional notions of infallibility historically held by popes and kings. Absolute judicial immunity has been upheld for even the most injudicious of judicial acts. When individual members gain lifetime tenure on the Supreme Court, through an array of deceptive practices that are undergirded by the dark money nominations, confirmations, and accommodations the Court has condoned, how can it ever avoid the perception that the so-called independent judiciary is just one more product of political process?
Although the democracy covenant is real, the authenticity of each democracy and the fidelity of any representative republic is always in question. In the United States, malign actors have excised the Constitution’s Preamble while also excavating under it. They have advanced a dis-integrating agenda while maintaining that the Preamble was never intended to be an integral part of the Constitution and was, therefore, to have no operating effect. Instead they have enabled racially motivated gerrymandering, the purging of voter rolls without documentary evidence of death or relocation, and prevaricating politicians actively deceiving the electorate. Any effort to perfect the union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the Blessings of Liberty to ourselves and our Posterity, must take a back seat to their sociopathic notions of corporate personhood.
The corporate veil insures that the judiciary’s slogan “equal justice under law” is placed squarely on a plane of unreality. While people associating for a common purpose and acting corporately embody the most authentic and basic definition of a corporation, courts throughout the land have effectively shielded those executives and officers who have used legal fictions as a vehicle for criminal activity. The person behind the wheel of a motor vehicle plowing through a crowd of people would be held legally accountable for their actions. Not so for an executive using the corporate vehicle to promote opiate addiction, causing forest fires, engaging in theft through price gouging, and actively distorting the public discourse. The corporate elite are reliably protected by the fully graspable wing-nuts they have installed on the Court. Judges are turning tricks for a corporatocracy composed largely of foreign potentates actively engaged in the kind of political bribery the Justices themselves have enabled. As long they personally benefit from Dark money, the problem will not go away.
The Supreme Court of the United States is responsible for the wholesale conversion of what Marshall McLuhan once described as a whirlpool of information into a cesspool of disinformation. For this, the Court has no plausible deniability. Attacks on the informed consent of the governed are obvious to anyone capable of pattern recognition. The inheritors, skimmers, and hoarders of wealth, together with their featherbedded executives, have bludgeoned the public’s collective intellect thanks to SCOTUS decisions in Buckley versus Valeo in 1976, First National Bank of Boston versus Bellotti in 1978, and Citizens United versus Federal Election Commission in 2010. The Court’s incoherent opinion with respect to broadcast station ownership in the Prometheus case also masked a clear attack on viewpoint diversity. And, a series of rambling net-neutrality decisions allowed anti-democracy communications companies to avoid the obligations of common carriers while retaining unfettered access to public utility rights-of-way.
If the federal Judiciary is really interested in restoring its legitimacy, it will do so through demonstrating a new respect for the consent of the governed. It will do so through adherence to the Declaration and the whole of the nation’s value proposition. It will stop using the shadow docket. And, it will include in every opinion, a clear explanation of how each of its decisions serves the interests of We the People as they are so clearly stated in the Preamble to the United States Constitution.
Too Poor to Pay Attention
On the streets of Asheville, North Carolina, most major intersections feature weathered individuals who are flying signs that read “Anything Helps!” At the break of each day, the doorsteps of small retail shops host sleeping people who have been conditioned to believe their entire net worth is contained within the knapsack they use for a pillow.
The demand among those who are self-medicating helps the drug trade thrive, while in plush offices overlooking the city certain inheritors, skimmers, and hoarders of wealth look down upon their victims with disgust. On a facebook group called WNC Common Ground, a recent post contains the crossed-out words “I want to help the needy.” Appearing just below is the statement “I want to help dismantle the systems that make them in need.”
At their initial briefing in March 1977, some members of the newly formed President’s Commission on Mental Health expressed their belief that economic cycles, war, racism, sexism, elitism, poverty, stigmatization, alcoholism, and an inadequate health system had each contributed to the prevalence of mental disorders within the United States.
Today, the lack of any unified structure for funding or service integration has forced many individuals with serious mental illnesses out of rehabilitative settings to survive in homeless shelters, on the streets, or in jails and prisons. Jimmy Carter’s Commission was created by Executive Order to recommend policies that would help us overcome obvious deficiencies in the mental health system. Its work led to the formulation of a national plan to provide much needed assistance for those with chronic mental illnesses.
The envisioned system of care and treatment for persons with serious mental illnesses was never created. The penny-wise, pound-foolish that masquerade in conservative garb won the day. And, in 1981 the Mental Health Systems Act was gutted. Mammon serving evangelicals have but one loyalty. They will work tirelessly to enrich themselves, in ways that work to the detriment of everyone else, with no accountability. They foment culture wars while siphoning every form of equity out from under the distracted masses. The quip “I’m too poor to pay attention” is not a joke. Poverty is, by design, a tool of the ruling class.
You may recall a story in which Jesus watched a crowd putting their money into the temple treasury. He saw many rich people throw in large amounts. Then a poor widow arrived and put in two very small copper coins, a contribution worth only a few cents. Jesus said, “This poor widow has put more into the treasury than all the others.They all gave out of their wealth; but she, out of her poverty, put in everything – all she had to live on.”
Today the richest of the rich like to characterize themselves as philanthropists even though their charitable contributions typically amount to mere tokenism. Even that is dwarfed by the amounts they pump into dark money political campaigns to undermine any meaningful progress the people who do the work might otherwise enjoy. The federal minimum wage has been stalled at seven dollars and twenty-five cents per hour since July of 2009. Typical worker compensation has risen only 12% since 1978 while CEO compensation has grown 940% during the same period.
One common refrain among workers is that “It’s hard to gain traction in this economy.” At some point we must ask ourselves if at least some of those we perceive as professional alms-takers have simply given up. Are they flying a sign or asking for change so they can live high on the hog in Lauderdale? A few maybe. But it is far more likely they lack work skills as well as coping and social skills to get ahead in an economy that’s geared against them. If you’re a beggar, and someone bigger and meaner doesn’t push you off your preferred street corner, it may be because they plan on robbing you of your entire haul at the end of the day. Skid row is not easy street. And even professional victims deserve a chance to grow out of it – to enjoy a better life.
In the mountains surrounding the City of Asheville, the Cherokee Indians had a functioning democracy long before a self-serving subset of We the People decided to march the region’s natives along the Trail of Tears. Skin pigmentation would be the disintegrating rock upon which such tyrants would center their pathetic claims of superiority. They have always been quick to pay lip service to democracy; as long as it wasn’t multi-cultural, multi-ethnic, or multi-racial.
Slavery hasn’t gone away. The pimp has sex slaves. Those with drug habits are slaves to others who keep them supplied. And, those who roll pennies so they can buy enough gas to get to exhausting and mind-numbing jobs are wage slaves to those who exploit them. 55% of the inflation we saw in 2022 is attributable to price gouging effectively enslaving the consumer. The street people are performing a valuable service. They are a constant reminder of the unmitigated selfishness attributable to those who gutted the Mental Health Systems Act and otherwise perpetuate poverty.
The Truth is Not in Them
While the magalomanic cult that has captured the Republican party feigns reverence for the Way, the Truth, and the Life, it embraces the opposite. A boisterous few have reached a level of discord that Mick Jagger and Keith Richards nailed with the lyric: Just as every cop is a criminal, and all the sinners saints; As heads is tails just call me Lucifer ’cause I’m in need of some restraint.
Trumpi-Inanity effectively leverages the FIBS tactic. The Fear, Ignorance, Bigotry, and Smear that have been used by Joseph Goebbels, Joe McCarthy, and Stephen Miller only work with the constituency built by Donald Trump. Even though this tiny whiney minority is emotionally charged, intellectually stunted, obnoxiously boisterous, and morally defective, such a gaggle of societal misfits carries a message that appeals to individuals inclined to betray every ideal the nation once held if they can indulge their bigotry.
Though it masquerades as “Christian Nationalism,” none of the group’s biblical heroes were white with the exception of Pontius Pilate who asked “What is truth?” Clearly MAGA cultists have a tenuous relationship with the truth and they continue to redefine it in ways that suit their unholy quest.
There appears to be no consistency within their distorted value proposition although we have seen how such cultists can be persuaded to consistently vote against their own interests. And, we must also understand that the people who have a sense of superiority, based upon nothing more than their skin pigmentation, will never accept any form of democracy that is multi-cultural, multi-ethnic, and multi-racial. They are quick to say that the United States is not a democracy but rather a republic. In actual fact it is an unrepresentative republic and an inauthentic democracy.
The unintelligent, unconditioned, and uncontrolled liberty touted by such malign actors is antithetical to everything Jesus taught and exemplified. And yet, the Luciferian doctrines are spewed weekly from church pulpits throughout the nation.
Since its inception in 1974, CPAC has grown into the largest and most influential gathering of pseudo-conservatives in the world. It is the conservator of nothing. During its conference held in Hungary they learned at the feet of Viktor Orbán who regards China, Russia, India, Singapore, and Turkey as models of governance. He simultaneously promotes anti-Americanism, Euroscepticism, and a persistent opposition to Western democracy.
As a featured speaker at CPAC Dallas, Orbán received a standing ovation. A headline in The New Republic read: “CPAC’s Four-Day Sermon of Unrelenting Fear Has Set Trumpism on a New Path.” Between 2010 and 2020, Hungary dropped 69 places in the Press Freedom Index and 11 places in the Democracy Index. Orbán’s government operates as a kleptocracy and that fact alone would make him a hero of the inheritors, skimmers, and hoarders of wealth.
In a July 2022 speech, Orbán criticized the “mixing” of European and non-European races, saying “We are not a mixed race and we do not want to become a mixed race.” Two days later he said that he was talking about cultures and not genetics. During his tenure Hungary has seen a curtailing of press freedom, an erosion of judicial independence, and the undermining of multiparty democracy.
Trump won the CPAC presidential straw poll with 69 percent of the vote. Texas Monthly displayed a banner headline which read: In Dallas, Donald Trump Provided a Violent Blueprint for Seizing Power. The ballroom featured five enormous screens that showed flames engulfing the American flag while the crackling sounds of fire were all pervasive.
Capturing the Supreme Court by installing graspable wingnuts may suggest the contempt for, and the demise of, constitutional imperatives will continue to play out in legal proceedings. But, if the inflammatory rhetoric emanating from CPAC is any indication, pseudo-conservatives are planning something far more violent.
If future historians are forced to write the post-mortem on American Democracy, they will likely focus on the extent to which the criminally insane were coddled and enabled by all three branches of government within the United States. Spiritual discernment is not a sought after feature within a counterfeit Christianity. The various off-brands would rather engage in the selective amplification, filtration, and contextualization of facts with the intent to deceive.
The Supreme Court has, in recent years, legalized political bribery. It has converted what Marshall McLuhan once described as a whirlpool of information into a cesspool of disinformation. And now it claims it has returned decision making authority to the people at the state level as it gives a wink and a nod to those engaged in political and racial gerrymandering, state legislatures that are now illegitimate.
Those who do enjoy some level of spiritual discernment can clearly understand that all the culture wars have just one purpose. And that is to distract us from the class warfare that has been thrust upon us. The Party of Unmitigated Selfishness that once called itself the Grand Old Party, has a record of filibusters and votes that reveal an unspoken value proposition for which they have no plausible deniability. Their platform is simply this: The rich get richer and the poor die.
The Powell Memorandum
Below is the Powell Memorandum that has been referred to several times in The Scheme. Its influence on American Jurisprudence has been described in depth, through a series of talks delivered in the United States Senate by Senator Sheldon Whitehouse. The Senator’s entire Guest Lecturer series has been aggregated, as audio and video instructional assets, courtesy of the School of Statesmanship at Ascension University.
Powell’s Confidential Memorandum:
Attack of American Free Enterprise System
DATE: August 23, 1971
TO: Mr. Eugene B. Sydnor, Jr., Chairman, Education Committee, U.S. Chamber of Commerce
FROM: Lewis F. Powell, Jr.
This memorandum is submitted at your request as a basis for the discussion on August 24 with Mr. Booth (executive vice president) and others at the U.S. Chamber of Commerce. The purpose is to identify the problem, and suggest possible avenues of action for further consideration.

Dimensions of the Attack
No thoughtful person can question that the American economic system is under broad attack. This varies in scope, intensity, in the techniques employed, and in the level of visibility.
There always have been some who opposed the American system, and preferred socialism or some form of statism (communism or fascism). Also, there always have been critics of the system, whose criticism has been wholesome and constructive so long as the objective was to improve rather than to subvert or destroy.
But what now concerns us is quite new in the history of America. We are not dealing with sporadic or isolated attacks from a relatively few extremists or even from the minority socialist cadre. Rather, the assault on the enterprise system is broadly based and consistently pursued. It is gaining momentum and converts.
Sources of the Attack
The sources are varied and diffused. They include, not unexpectedly, the Communists, New Leftists and other revolutionaries who would destroy the entire system, both political and economic. These extremists of the left are far more numerous, better financed, and increasingly are more welcomed and encouraged by other elements of society, than ever before in our history. But they remain a small minority, and are not yet the principal cause for concern.
The most disquieting voices joining the chorus of criticism come from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals, the arts and sciences, and from politicians. In most of these groups the movement against the system is participated in only by minorities. Yet, these often are the most articulate, the most vocal, the most prolific in their writing and speaking.
Moreover, much of the media-for varying motives and in varying degrees-either voluntarily accords unique publicity to these “attackers,” or at least allows them to exploit the media for their purposes. This is especially true of television, which now plays such a predominant role in shaping the thinking, attitudes and emotions of our people.
One of the bewildering paradoxes of our time is the extent to which the enterprise system tolerates, if not participates in, its own destruction.
The campuses from which much of the criticism emanates are supported by (i) tax funds generated largely from American business, and (ii) contributions from capital funds controlled or generated by American business. The boards of trustees of our universities overwhelmingly are composed of men and women who are leaders in the system.
Most of the media, including the national TV systems, are owned and theoretically controlled by corporations which depend upon profits, and the enterprise system to survive.
Tone of the Attack
This memorandum is not the place to document in detail the tone, character, or intensity of the attack. The following quotations will suffice to give one a general idea:
William Kunstler, warmly welcomed on campuses and listed in a recent student poll as the “American lawyer most admired,” incites audiences as follows:
“You must learn to fight in the streets, to revolt, to shoot guns. We will learn to do all of the things that property owners fear.”2 The New Leftists who heed Kunstler’s advice increasingly are beginning to act — not just against military recruiting offices and manufacturers of munitions, but against a variety of businesses: “Since February, 1970, branches (of Bank of America) have been attacked 39 times, 22 times with explosive devices and 17 times with fire bombs or by arsonists.”3 Although New Leftist spokesmen are succeeding in radicalizing thousands of the young, the greater cause for concern is the hostility of respectable liberals and social reformers. It is the sum total of their views and influence which could indeed fatally weaken or destroy the system.
A chilling description of what is being taught on many of our campuses was written by Stewart Alsop:
“Yale, like every other major college, is graduating scores of bright young men who are practitioners of ‘the politics of despair.’ These young men despise the American political and economic system . . . (their) minds seem to be wholly closed. They live, not by rational discussion, but by mindless slogans.”4 A recent poll of students on 12 representative campuses reported that: “Almost half the students favored socialization of basic U.S. industries.”5
A visiting professor from England at Rockford College gave a series of lectures entitled “The Ideological War Against Western Society,” in which he documents the extent to which members of the intellectual community are waging ideological warfare against the enterprise system and the values of western society. In a foreword to these lectures, famed Dr. Milton Friedman of Chicago warned: “It (is) crystal clear that the foundations of our free society are under wide-ranging and powerful attack — not by Communist or any other conspiracy but by misguided individuals parroting one another and unwittingly serving ends they would never intentionally promote.”6
Perhaps the single most effective antagonist of American business is Ralph Nader, who — thanks largely to the media — has become a legend in his own time and an idol of millions of Americans. A recent article in Fortune speaks of Nader as follows:
“The passion that rules in him — and he is a passionate man — is aimed at smashing utterly the target of his hatred, which is corporate power. He thinks, and says quite bluntly, that a great many corporate executives belong in prison — for defrauding the consumer with shoddy merchandise, poisoning the food supply with chemical additives, and willfully manufacturing unsafe products that will maim or kill the buyer. He emphasizes that he is not talking just about ‘fly-by-night hucksters’ but the top management of blue chip business.”7
A frontal assault was made on our government, our system of justice, and the free enterprise system by Yale Professor Charles Reich in his widely publicized book: “The Greening of America,” published last winter.
The foregoing references illustrate the broad, shotgun attack on the system itself. There are countless examples of rifle shots which undermine confidence and confuse the public. Favorite current targets are proposals for tax incentives through changes in depreciation rates and investment credits. These are usually described in the media as “tax breaks,” “loop holes” or “tax benefits” for the benefit of business. As viewed by a columnist in the Post, such tax measures would benefit “only the rich, the owners of big companies.”8
It is dismaying that many politicians make the same argument that tax measures of this kind benefit only “business,” without benefit to “the poor.” The fact that this is either political demagoguery or economic illiteracy is of slight comfort. This setting of the “rich” against the “poor,” of business against the people, is the cheapest and most dangerous kind of politics.
The Apathy and Default of Business
What has been the response of business to this massive assault upon its fundamental economics, upon its philosophy, upon its right to continue to manage its own affairs, and indeed upon its integrity?
The painfully sad truth is that business, including the boards of directors’ and the top executives of corporations great and small and business organizations at all levels, often have responded — if at all — by appeasement, ineptitude and ignoring the problem. There are, of course, many exceptions to this sweeping generalization. But the net effect of such response as has been made is scarcely visible.
In all fairness, it must be recognized that businessmen have not been trained or equipped to conduct guerrilla warfare with those who propagandize against the system, seeking insidiously and constantly to sabotage it. The traditional role of business executives has been to manage, to produce, to sell, to create jobs, to make profits, to improve the standard of living, to be community leaders, to serve on charitable and educational boards, and generally to be good citizens. They have performed these tasks very well indeed.
But they have shown little stomach for hard-nose contest with their critics, and little skill in effective intellectual and philosophical debate.
A column recently carried by the Wall Street Journal was entitled: “Memo to GM: Why Not Fight Back?”9 Although addressed to GM by name, the article was a warning to all American business. Columnist St. John said:
“General Motors, like American business in general, is ‘plainly in trouble’ because intellectual bromides have been substituted for a sound intellectual exposition of its point of view.” Mr. St. John then commented on the tendency of business leaders to compromise with and appease critics. He cited the concessions which Nader wins from management, and spoke of “the fallacious view many businessmen take toward their critics.” He drew a parallel to the mistaken tactics of many college administrators: “College administrators learned too late that such appeasement serves to destroy free speech, academic freedom and genuine scholarship. One campus radical demand was conceded by university heads only to be followed by a fresh crop which soon escalated to what amounted to a demand for outright surrender.”
One need not agree entirely with Mr. St. John’s analysis. But most observers of the American scene will agree that the essence of his message is sound. American business “plainly in trouble”; the response to the wide range of critics has been ineffective, and has included appeasement; the time has come — indeed, it is long overdue — for the wisdom, ingenuity and resources of American business to be marshalled against those who would destroy it.
Responsibility of Business Executives
What specifically should be done? The first essential — a prerequisite to any effective action — is for businessmen to confront this problem as a primary responsibility of corporate management.
The overriding first need is for businessmen to recognize that the ultimate issue may be survival — survival of what we call the free enterprise system, and all that this means for the strength and prosperity of America and the freedom of our people.
The day is long past when the chief executive officer of a major corporation discharges his responsibility by maintaining a satisfactory growth of profits, with due regard to the corporation’s public and social responsibilities. If our system is to survive, top management must be equally concerned with protecting and preserving the system itself. This involves far more than an increased emphasis on “public relations” or “governmental affairs” — two areas in which corporations long have invested substantial sums.
A significant first step by individual corporations could well be the designation of an executive vice president (ranking with other executive VP’s) whose responsibility is to counter-on the broadest front-the attack on the enterprise system. The public relations department could be one of the foundations assigned to this executive, but his responsibilities should encompass some of the types of activities referred to subsequently in this memorandum. His budget and staff should be adequate to the task.
Possible Role of the Chamber of Commerce
But independent and uncoordinated activity by individual corporations, as important as this is, will not be sufficient. Strength lies in organization, in careful long-range planning and implementation, in consistency of action over an indefinite period of years, in the scale of financing available only through joint effort, and in the political power available only through united action and national organizations.
Moreover, there is the quite understandable reluctance on the part of any one corporation to get too far out in front and to make itself too visible a target.
The role of the National Chamber of Commerce is therefore vital. Other national organizations (especially those of various industrial and commercial groups) should join in the effort, but no other organizations appear to be as well situated as the Chamber. It enjoys a strategic position, with a fine reputation and a broad base of support. Also — and this is of immeasurable merit — there are hundreds of local Chambers of Commerce which can play a vital supportive role.
It hardly need be said that before embarking upon any program, the Chamber should study and analyze possible courses of action and activities, weighing risks against probable effectiveness and feasibility of each. Considerations of cost, the assurance of financial and other support from members, adequacy of staffing and similar problems will all require the most thoughtful consideration.
The Campus
The assault on the enterprise system was not mounted in a few months. It has gradually evolved over the past two decades, barely perceptible in its origins and benefiting (sic) from a gradualism that provoked little awareness much less any real reaction.
Although origins, sources and causes are complex and interrelated, and obviously difficult to identify without careful qualification, there is reason to believe that the campus is the single most dynamic source. The social science faculties usually include members who are unsympathetic to the enterprise system. They may range from a Herbert Marcuse, Marxist faculty member at the University of California at San Diego, and convinced socialists, to the ambivalent liberal critic who finds more to condemn than to commend. Such faculty members need not be in a majority. They are often personally attractive and magnetic; they are stimulating teachers, and their controversy attracts student following; they are prolific writers and lecturers; they author many of the textbooks, and they exert enormous influence — far out of proportion to their numbers — on their colleagues and in the academic world.
Social science faculties (the political scientist, economist, sociologist and many of the historians) tend to be liberally oriented, even when leftists are not present. This is not a criticism per se, as the need for liberal thought is essential to a balanced viewpoint. The difficulty is that “balance” is conspicuous by its absence on many campuses, with relatively few members being of conservatives or moderate persuasion and even the relatively few often being less articulate and aggressive than their crusading colleagues.
This situation extending back many years and with the imbalance gradually worsening, has had an enormous impact on millions of young American students. In an article in Barron’s Weekly, seeking an answer to why so many young people are disaffected even to the point of being revolutionaries, it was said: “Because they were taught that way.”10 Or, as noted by columnist Stewart Alsop, writing about his alma mater: “Yale, like every other major college, is graduating scores’ of bright young men … who despise the American political and economic system.”
As these “bright young men,” from campuses across the country, seek opportunities to change a system which they have been taught to distrust — if not, indeed “despise” — they seek employment in the centers of the real power and influence in our country, namely: (i) with the news media, especially television; (ii) in government, as “staffers” and consultants at various levels; (iii) in elective politics; (iv) as lecturers and writers, and (v) on the faculties at various levels of education.
Many do enter the enterprise system — in business and the professions — and for the most part they quickly discover the fallacies of what they have been taught. But those who eschew the mainstream of the system often remain in key positions of influence where they mold public opinion and often shape governmental action. In many instances, these “intellectuals” end up in regulatory agencies or governmental departments with large authority over the business system they do not believe in.
If the foregoing analysis is approximately sound, a priority task of business — and organizations such as the Chamber — is to address the campus origin of this hostility. Few things are more sanctified in American life than academic freedom. It would be fatal to attack this as a principle. But if academic freedom is to retain the qualities of “openness,” “fairness” and “balance” — which are essential to its intellectual significance — there is a great opportunity for constructive action. The thrust of such action must be to restore the qualities just mentioned to the academic communities.
What Can Be Done About the Campus
The ultimate responsibility for intellectual integrity on the campus must remain on the administrations and faculties of our colleges and universities. But organizations such as the Chamber can assist and activate constructive change in many ways, including the following:
Staff of Scholars
The Chamber should consider establishing a staff of highly qualified scholars in the social sciences who do believe in the system. It should include several of national reputation whose authorship would be widely respected — even when disagreed with.
Staff of Speakers
There also should be a staff of speakers of the highest competency. These might include the scholars, and certainly those who speak for the Chamber would have to articulate the product of the scholars.
Speaker’s Bureau
In addition to full-time staff personnel, the Chamber should have a Speaker’s Bureau which should include the ablest and most effective advocates from the top echelons of American business.
Evaluation of Textbooks
The staff of scholars (or preferably a panel of independent scholars) should evaluate social science textbooks, especially in economics, political science and sociology. This should be a continuing program.
The objective of such evaluation should be oriented toward restoring the balance essential to genuine academic freedom. This would include assurance of fair and factual treatment of our system of government and our enterprise system, its accomplishments, its basic relationship to individual rights and freedoms, and comparisons with the systems of socialism, fascism and communism. Most of the existing textbooks have some sort of comparisons, but many are superficial, biased and unfair.
We have seen the civil rights movement insist on re-writing many of the textbooks in our universities and schools. The labor unions likewise insist that textbooks be fair to the viewpoints of organized labor. Other interested citizens groups have not hesitated to review, analyze and criticize textbooks and teaching materials. In a democratic society, this can be a constructive process and should be regarded as an aid to genuine academic freedom and not as an intrusion upon it.
If the authors, publishers and users of textbooks know that they will be subjected — honestly, fairly and thoroughly — to review and critique by eminent scholars who believe in the American system, a return to a more rational balance can be expected.
Equal Time on the Campus
The Chamber should insist upon equal time on the college speaking circuit. The FBI publishes each year a list of speeches made on college campuses by avowed Communists. The number in 1970 exceeded 100. There were, of course, many hundreds of appearances by leftists and ultra liberals who urge the types of viewpoints indicated earlier in this memorandum. There was no corresponding representation of American business, or indeed by individuals or organizations who appeared in support of the American system of government and business.
Every campus has its formal and informal groups which invite speakers. Each law school does the same thing. Many universities and colleges officially sponsor lecture and speaking programs. We all know the inadequacy of the representation of business in the programs.
It will be said that few invitations would be extended to Chamber speakers.11 This undoubtedly would be true unless the Chamber aggressively insisted upon the right to be heard — in effect, insisted upon “equal time.” University administrators and the great majority of student groups and committees would not welcome being put in the position publicly of refusing a forum to diverse views, indeed, this is the classic excuse for allowing Communists to speak.
The two essential ingredients are (i) to have attractive, articulate and well-informed speakers; and (ii) to exert whatever degree of pressure — publicly and privately — may be necessary to assure opportunities to speak. The objective always must be to inform and enlighten, and not merely to propagandize.
Balancing of Faculties
Perhaps the most fundamental problem is the imbalance of many faculties. Correcting this is indeed a long-range and difficult project. Yet, it should be undertaken as a part of an overall program. This would mean the urging of the need for faculty balance upon university administrators and boards of trustees.
The methods to be employed require careful thought, and the obvious pitfalls must be avoided. Improper pressure would be counterproductive. But the basic concepts of balance, fairness and truth are difficult to resist, if properly presented to boards of trustees, by writing and speaking, and by appeals to alumni associations and groups.
This is a long road and not one for the fainthearted. But if pursued with integrity and conviction it could lead to a strengthening of both academic freedom on the campus and of the values which have made America the most productive of all societies.
Graduate Schools of Business
The Chamber should enjoy a particular rapport with the increasingly influential graduate schools of business. Much that has been suggested above applies to such schools.
Should not the Chamber also request specific courses in such schools dealing with the entire scope of the problem addressed by this memorandum? This is now essential training for the executives of the future.
Secondary Education
While the first priority should be at the college level, the trends mentioned above are increasingly evidenced in the high schools. Action programs, tailored to the high schools and similar to those mentioned, should be considered. The implementation thereof could become a major program for local chambers of commerce, although the control and direction — especially the quality control — should be retained by the National Chamber.
What Can Be Done About the Public?
Reaching the campus and the secondary schools is vital for the long-term. Reaching the public generally may be more important for the shorter term. The first essential is to establish the staffs of eminent scholars, writers and speakers, who will do the thinking, the analysis, the writing and the speaking. It will also be essential to have staff personnel who are thoroughly familiar with the media, and how most effectively to communicate with the public. Among the more obvious means are the following:
Television
The national television networks should be monitored in the same way that textbooks should be kept under constant surveillance. This applies not merely to so-called educational programs (such as “Selling of the Pentagon”), but to the daily “news analysis” which so often includes the most insidious type of criticism of the enterprise system.12 Whether this criticism results from hostility or economic ignorance, the result is the gradual erosion of confidence in “business” and free enterprise.
This monitoring, to be effective, would require constant examination of the texts of adequate samples of programs. Complaints — to the media and to the Federal Communications Commission — should be made promptly and strongly when programs are unfair or inaccurate.
Equal time should be demanded when appropriate. Effort should be made to see that the forum-type programs (the Today Show, Meet the Press, etc.) afford at least as much opportunity for supporters of the American system to participate as these programs do for those who attack it.
Other Media
Radio and the press are also important, and every available means should be employed to challenge and refute unfair attacks, as well as to present the affirmative case through these media.
The Scholarly Journals
It is especially important for the Chamber’s “faculty of scholars” to publish. One of the keys to the success of the liberal and leftist faculty members has been their passion for “publication” and “lecturing.” A similar passion must exist among the Chamber’s scholars.
Incentives might be devised to induce more “publishing” by independent scholars who do believe in the system.
There should be a fairly steady flow of scholarly articles presented to a broad spectrum of magazines and periodicals — ranging from the popular magazines (Life, Look, Reader’s Digest, etc.) to the more intellectual ones (Atlantic, Harper’s, Saturday Review, New York, etc.)13 and to the various professional journals.
Books, Paperbacks and Pamphlets
The news stands — at airports, drugstores, and elsewhere — are filled with paperbacks and pamphlets advocating everything from revolution to erotic free love. One finds almost no attractive, well-written paperbacks or pamphlets on “our side.” It will be difficult to compete with an Eldridge Cleaver or even a Charles Reich for reader attention, but unless the effort is made — on a large enough scale and with appropriate imagination to assure some success — this opportunity for educating the public will be irretrievably lost.
Paid Advertisements
Business pays hundreds of millions of dollars to the media for advertisements. Most of this supports specific products; much of it supports institutional image making; and some fraction of it does support the system. But the latter has been more or less tangential, and rarely part of a sustained, major effort to inform and enlighten the American people.
If American business devoted only 10% of its total annual advertising budget to this overall purpose, it would be a statesman-like expenditure.
The Neglected Political Arena
In the final analysis, the payoff — short-of revolution — is what government does. Business has been the favorite whipping-boy of many politicians for many years. But the measure of how far this has gone is perhaps best found in the anti-business views now being expressed by several leading candidates for President of the United States.
It is still Marxist doctrine that the “capitalist” countries are controlled by big business. This doctrine, consistently a part of leftist propaganda all over the world, has a wide public following among Americans.
Yet, as every business executive knows, few elements of American society today have as little influence in government as the American businessman, the corporation, or even the millions of corporate stockholders. If one doubts this, let him undertake the role of “lobbyist” for the business point of view before Congressional committees. The same situation obtains in the legislative halls of most states and major cities. One does not exaggerate to say that, in terms of political influence with respect to the course of legislation and government action, the American business executive is truly the “forgotten man.”
Current examples of the impotency of business, and of the near-contempt with which businessmen’s views are held, are the stampedes by politicians to support almost any legislation related to “consumerism” or to the “environment.”
Politicians reflect what they believe to be majority views of their constituents. It is thus evident that most politicians are making the judgment that the public has little sympathy for the businessman or his viewpoint.
The educational programs suggested above would be designed to enlighten public thinking — not so much about the businessman and his individual role as about the system which he administers, and which provides the goods, services and jobs on which our country depends.
But one should not postpone more direct political action, while awaiting the gradual change in public opinion to be effected through education and information. Business must learn the lesson, long ago learned by labor and other self-interest groups. This is the lesson that political power is necessary; that such power must be assidously (sic) cultivated; and that when necessary, it must be used aggressively and with determination — without embarrassment and without the reluctance which has been so characteristic of American business.
As unwelcome as it may be to the Chamber, it should consider assuming a broader and more vigorous role in the political arena.
Neglected Opportunity in the Courts
American business and the enterprise system have been affected as much by the courts as by the executive and legislative branches of government. Under our constitutional system, especially with an activist-minded Supreme Court, the judiciary may be the most important instrument for social, economic and political change.
Other organizations and groups, recognizing this, have been far more astute in exploiting judicial action than American business. Perhaps the most active exploiters of the judicial system have been groups ranging in political orientation from “liberal” to the far left.
The American Civil Liberties Union is one example. It initiates or intervenes in scores of cases each year, and it files briefs amicus curiae in the Supreme Court in a number of cases during each term of that court. Labor unions, civil rights groups and now the public interest law firms are extremely active in the judicial arena. Their success, often at business’ expense, has not been inconsequential.
This is a vast area of opportunity for the Chamber, if it is willing to undertake the role of spokesman for American business and if, in turn, business is willing to provide the funds.
As with respect to scholars and speakers, the Chamber would need a highly competent staff of lawyers. In special situations it should be authorized to engage, to appear as counsel amicus in the Supreme Court, lawyers of national standing and reputation. The greatest care should be exercised in selecting the cases in which to participate, or the suits to institute. But the opportunity merits the necessary effort.
Neglected Stockholder Power
The average member of the public thinks of “business” as an impersonal corporate entity, owned by the very rich and managed by over-paid executives. There is an almost total failure to appreciate that “business” actually embraces — in one way or another — most Americans. Those for whom business provides jobs, constitute a fairly obvious class. But the 20 million stockholders — most of whom are of modest means — are the real owners, the real entrepreneurs, the real capitalists under our system. They provide the capital which fuels the economic system which has produced the highest standard of living in all history. Yet, stockholders have been as ineffectual as business executives in promoting a genuine understanding of our system or in exercising political influence.
The question which merits the most thorough examination is how can the weight and influence of stockholders — 20 million voters — be mobilized to support (i) an educational program and (ii) a political action program.
Individual corporations are now required to make numerous reports to shareholders. Many corporations also have expensive “news” magazines which go to employees and stockholders. These opportunities to communicate can be used far more effectively as educational media.
The corporation itself must exercise restraint in undertaking political action and must, of course, comply with applicable laws. But is it not feasible — through an affiliate of the Chamber or otherwise — to establish a national organization of American stockholders and give it enough muscle to be influential?
A More Aggressive Attitude
Business interests — especially big business and their national trade organizations — have tried to maintain low profiles, especially with respect to political action.
As suggested in the Wall Street Journal article, it has been fairly characteristic of the average business executive to be tolerant — at least in public — of those who attack his corporation and the system. Very few businessmen or business organizations respond in kind. There has been a disposition to appease; to regard the opposition as willing to compromise, or as likely to fade away in due time.
Business has shunted confrontation politics. Business, quite understandably, has been repelled by the multiplicity of non-negotiable “demands” made constantly by self-interest groups of all kinds.
While neither responsible business interests, nor the United States Chamber of Commerce, would engage in the irresponsible tactics of some pressure groups, it is essential that spokesmen for the enterprise system — at all levels and at every opportunity — be far more aggressive than in the past.
There should be no hesitation to attack the Naders, the Marcuses and others who openly seek destruction of the system. There should not be the slightest hesitation to press vigorously in all political arenas for support of the enterprise system. Nor should there be reluctance to penalize politically those who oppose it.
Lessons can be learned from organized labor in this respect. The head of the AFL-CIO may not appeal to businessmen as the most endearing or public-minded of citizens. Yet, over many years the heads of national labor organizations have done what they were paid to do very effectively. They may not have been beloved, but they have been respected — where it counts the most — by politicians, on the campus, and among the media.
It is time for American business — which has demonstrated the greatest capacity in all history to produce and to influence consumer decisions — to apply their great talents vigorously to the preservation of the system itself.
The Cost
The type of program described above (which includes a broadly based combination of education and political action), if undertaken long term and adequately staffed, would require far more generous financial support from American corporations than the Chamber has ever received in the past. High level management participation in Chamber affairs also would be required.
The staff of the Chamber would have to be significantly increased, with the highest quality established and maintained. Salaries would have to be at levels fully comparable to those paid key business executives and the most prestigious faculty members. Professionals of the great skill in advertising and in working with the media, speakers, lawyers and other specialists would have to be recruited.
It is possible that the organization of the Chamber itself would benefit from restructuring. For example, as suggested by union experience, the office of President of the Chamber might well be a full-time career position. To assure maximum effectiveness and continuity, the chief executive officer of the Chamber should not be changed each year. The functions now largely performed by the President could be transferred to a Chairman of the Board, annually elected by the membership. The Board, of course, would continue to exercise policy control.
Quality Control is Essential
Essential ingredients of the entire program must be responsibility and “quality control.” The publications, the articles, the speeches, the media programs, the advertising, the briefs filed in courts, and the appearances before legislative committees — all must meet the most exacting standards of accuracy and professional excellence. They must merit respect for their level of public responsibility and scholarship, whether one agrees with the viewpoints expressed or not.
Relationship to Freedom
The threat to the enterprise system is not merely a matter of economics. It also is a threat to individual freedom.
It is this great truth — now so submerged by the rhetoric of the New Left and of many liberals — that must be re-affirmed if this program is to be meaningful.
There seems to be little awareness that the only alternatives to free enterprise are varying degrees of bureaucratic regulation of individual freedom — ranging from that under moderate socialism to the iron heel of the leftist or rightist dictatorship.
We in America already have moved very far indeed toward some aspects of state socialism, as the needs and complexities of a vast urban society require types of regulation and control that were quite unnecessary in earlier times. In some areas, such regulation and control already have seriously impaired the freedom of both business and labor, and indeed of the public generally. But most of the essential freedoms remain: private ownership, private profit, labor unions, collective bargaining, consumer choice, and a market economy in which competition largely determines price, quality and variety of the goods and services provided the consumer.
In addition to the ideological attack on the system itself (discussed in this memorandum), its essentials also are threatened by inequitable taxation, and — more recently — by an inflation which has seemed uncontrollable.14 But whatever the causes of diminishing economic freedom may be, the truth is that freedom as a concept is indivisible. As the experience of the socialist and totalitarian states demonstrates, the contraction and denial of economic freedom is followed inevitably by governmental restrictions on other cherished rights. It is this message, above all others, that must be carried home to the American people.
Conclusion
It hardly need be said that the views expressed above are tentative and suggestive. The first step should be a thorough study. But this would be an exercise in futility unless the Board of Directors of the Chamber accepts the fundamental premise of this paper, namely, that business and the enterprise system are in deep trouble, and the hour is late.
Powell’s Footnotes
- Variously called: the “free enterprise system,” “capitalism,” and the “profit system.” The American political system of democracy under the rule of law is also under attack, often by the same individuals and organizations who seek to undermine the enterprise system.
- Richmond News Leader, June 8, 1970. Column of William F. Buckley, Jr.
- N.Y. Times Service article, reprinted Richmond Times-Dispatch, May 17, 1971.
- Stewart Alsop, Yale and the Deadly Danger, Newsweek, May 18. 1970.
- Editorial, Richmond Times-Dispatch, July 7, 1971.
- Dr. Milton Friedman, Prof. of Economics, U. of Chicago, writing a foreword to Dr. Arthur A. Shenfield’s Rockford College lectures entitled “The Ideological War Against Western Society,” copyrighted 1970 by Rockford College.
- Fortune. May, 1971, p. 145. This Fortune analysis of the Nader influence includes a reference to Nader’s visit to a college where he was paid a lecture fee of $2,500 for “denouncing America’s big corporations in venomous language . . . bringing (rousing and spontaneous) bursts of applause” when he was asked when he planned to run for President.
- The Washington Post, Column of William Raspberry, June 28, 1971.
- Jeffrey St. John, The Wall Street Journal, May 21, 1971.
- Barron’s National Business and Financial Weekly, “The Total Break with America, The Fifth Annual Conference of Socialist Scholars,” Sept. 15, 1969.
- On many campuses freedom of speech has been denied to all who express moderate or conservative viewpoints.
- It has been estimated that the evening half-hour news programs of the networks reach daily some 50,000,000 Americans.
- One illustration of the type of article which should not go unanswered appeared in the popular “The New York” of July 19, 1971. This was entitled “A Populist Manifesto” by ultra liberal Jack Newfield — who argued that “the root need in our country is ‘to redistribute wealth’.”
- The recent “freeze” of prices and wages may well be justified by the current inflationary crisis. But if imposed as a permanent measure the enterprise system will have sustained a near fatal blow.