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in their personal character or anything like that it s because of a difference of the institutions in the two countries the chief difference in the institutions is that we still have some small measure of free markets while they have a much lesser measure of free markets it s easy when talking about free men to talk of abstractions freedom to express opinion freedom of belief freedom of thought my proposition is far more obvious for the more material components of freedom the freedom to decide how to spend your money what to do with your time where to work where to live those material aspects of freedom are all associated with free markets and they are no less important to most people than freedom of thought of speech of political persuasion here again the absence of free markets destroys free men and the presence of free markets makes free men the average american citizen is free to spend at most 60 percent of his income forty percent is what the state local and federal governments spend on his behalf why do i say at most because a large part of the other 60 percent you re not free to spend the way you want you re not free to have or not have safety belts in your car if you re a businessman building a factory you may not be free as to how to build it or where you build it in fact we are free to dispose of probably a good deal less than half of our income in october 1974 us president gerald ford got a couple of companies to agree to a voluntary embargo on sales of grain to russia i may have missed it in the papers but i heard few voices sounding off about what a disgraceful and intolerable action that was what a violation of human freedom it was to stop those sales why didn t people sound off was it because they believed it was a desirable thing was it because they believed it was consistent with a free society that without there being a law a governmental official should be in a position to say to companies you stop that sale or else if you had been the head of one of those corporations you would have gone along too why would you have gone along not because you believed it was morally justified but because you would have been afraid of what might happen to your income tax returns or whether your company would be slapped with an antitrust suit or whether you would be charged with breaking some other law there should have been an outcry on that voluntary restriction on exports there should have been an outcry first because it was done by extralegal means and not as a result of legal authority equally important the prevention of those exports was a violation of the economic freedom of the people of this country the typical analysis of that embargo is that us consumers gained and farmers lost by having a lower price of wheat than would otherwise have existed that is the ordinary kind of superficial analysis that leads to so much bad economic policy consumers as well as producers lost the effect of our selling less wheat to russia was that we acquired less foreign exchange the result of that was to make the price of the dollar in terms of foreign currencies lower than it otherwise would be the result of that was to make foreign goods more expensive than they otherwise would be so the consumers got cheaper wheat and dearer perfume cheaper wheat and dearer wine let s suppose prohibiting the exports lowered the price of wheat by 10 cents per bushel suppose instead that a tax of 10 cents per bushel had been imposed on every farmer and a subsidy of 10 cents given to every potential purchaser of wheat then the farmers would be in the same position we then have to ask whether the people who got that subsidy would choose to spend that money on wheat not at all the customers would choose to spend some of that money on french perfume and some of that money on portuguese wines so the fact of the matter is that what you did by imposing the embargo was to say to the american consumer even though you would like to trade some of your wheat for some french perfume we re not going to let you do it you ve got to consume wheat whether you want to consume wheat or not all i m giving you is the general argument for free trade that adam smith developed two centuries ago with free trade consumers decide how they would like to use their income and what they would like to buy with it when a tariff is imposed on a foreign good or an export quota on a domestic good consumers are forced to spend their income in ways that they would not spend it if they were free to do what they wanted in that sense the embargo was a restriction of the freedom of the consumer as well as the freedom of the producer it transferred income from the farmers to the consumers and it hurt all consumers as consumers by denying them freedom of choice about how to spend their money that s what all of us should have been saying in the newspapers at the time now free markets are on the defensive all over the world why they are on the defensive not because they haven t worked but because they have worked it s precisely because every time political authorities have tried to do without them they have gotten into trouble the only way political authorities have found to pay for their mistakes is to try to take advantage of the free market by interfering with it and by controlling it the long term trend has clearly been toward greater governmental control i ve cited the figure of 40 percent as the percentage of our national income being spent by government that number was 10 percent in 1929 it s gone up from 10 percent to 40 percent if you want to look forward to the future i will predict one thing with absolute certainty that will not happen again the percentage cannot go up to 160 percent in the next 40 years october 17 1974 rate this გააზიარე share on x opens in new window x share on facebook opens in new window facebook share on linkedin opens in new window linkedin share on whatsapp opens in new window whatsapp share on telegram opens in new window telegram share on reddit opens in new window reddit share on pinterest opens in new window pinterest share on tumblr opens in new window tumblr email a link to a friend opens in new window ელფოსტა ბეჭდვა opens in new window ბეჭდვა share on mastodon opens in new window mastodon share on threads opens in new window threads share on nextdoor opens in new window nextdoor share on bluesky opens in new window bluesky share on x opens in new window x like იტვირთება posted by levan ramishvili 26 03 2025 posted in general leave a comment on free markets for free men by milton friedman kraemer doctrine of provocative weakness by fritz kraemer fritz gustav anton kraemer do you know the kraemer doctrine of provocative weakness u s military weakness will provoke enemies to be aggressive because they do not have to fear u s retaliation if they misbehave while our friends and neutrals too are unable to believe in our ability to protect them it is a fact that weakness even apparent weakness provokes hostile and fanatical elements to advance step by step further and further because they do not fear harsh and stern retaliation from a perceived paper tiger gaining the reputation that the only surviving superpower would rely in crisis essentially on diplomacy would deprive the u s of the capacity to deter aggressive fanatical elements in the international scene at an early stage the belief in diplomacy without the implicit or explicit threat of being backed by strong military forces and the will to use them is an illusion it was precisely that illusion which guided neville chamberlain in his munich deal with the german dictator it was the first step on the road toward ww ii brilliant fools never understood the devastating effect of provocative weakness on a totalitarian dictatorship like the ussr just as in the thirties brilliant fools didn t understand that their policy of softness and relenting the politics of appeasement substantially contributed to the outbreak of the second world war the power dictator adolf hitler perceived softness as provocative weakness it made him demand more and more let him break the versailles treaty without sanctions and ultimately led him to march into poland because he believed that england was too weak to make good on its guarantees the principal misconception in the thinking of most politicians was to believe that in dealing with a dictatorship friendliness and yielding would produce the same in the opposite side in fact in dictatorships as in sharks it causes the opposite effect their appetite increases and so does the danger of being devoured this basic problem will persist in the future the west will never avoid the test of wills it is intrinsic to the history of peoples for thousands of years it has always been difficult for the fat bourgeois west brilliant fools and know it alls advocate provocative weakness the fool s gold of world politics rate this გააზიარე share on x opens in new window x share on facebook opens in new window facebook share on linkedin opens in new window linkedin share on whatsapp opens in new window whatsapp share on telegram opens in new window telegram share on reddit opens in new window reddit share on pinterest opens in new window pinterest share on tumblr opens in new window tumblr email a link to a friend opens in new window ელფოსტა ბეჭდვა opens in new window ბეჭდვა share on mastodon opens in new window mastodon share on threads opens in new window threads share on nextdoor opens in new window nextdoor share on bluesky opens in new window bluesky share on x opens in new window x like იტვირთება posted by levan ramishvili 17 02 2025 posted in general leave a comment on kraemer doctrine of provocative weakness by fritz kraemer peace depends on you too by pope paul vi message for the celebration of the day of peace pope paul vi listen to me again you who have arrived at the threshold of the new year 1974 listen to me again i am before you making a humble entreaty a strong entreaty naturally as you will have guessed i wish to speak to you once more about peace yes about peace perhaps you think you know all there is to be known about peace so much has already been said about it by everybody perhaps this obtrusive term provokes a feeling of satiety of boredom perhaps also of fear that it conceals behind the charm of its name an illusory magic an abstruse and over indulged rhetoric even a dangerous spell the present moment of history marked as it is by fierce outbreaks of international conflict by implacable class warfare outbursts of revolutionary freedoms the crushing of human rights and fundamental liberties and by unforeseen symptoms of worldwide economic instability seems to be destroying the triumphant ideal of peace as if it were the statue of an idol in place of the pale and timid abstraction with which peace seems to be marked in recent political experience and thought preference is once more being given to the realism of facts and interests and man is once more thought of as a permanently insoluble problem of living self conflict man is like this a being who bears in his heart the destiny of fraternal strife in the face of this crude and re emerging realism we propose not a purely notional concept of peace undermined by new and crushing experiences but an indomitable idealism that of peace destined for progressive affirmation brethren men of good will wise men men of suffering believe our humble and repeated words our untiring plea peace is the ideal of mankind peace is necessary peace is a duty peace is beneficial it is not a fixed and illogical idea of ours nor is it an obsession or an illusion it is a certainty yes it is a hope it holds the key to the future of civilization and to the destiny of world yes peace we are so convinced that peace is the goal of mankind in the process of its growing self awareness and of the development of society on the face of the earth that today for the new year and for future years we dare to proclaim as we did last year peace is possible basically what compromises the stability of peace and the movement of history in its favour is the unspoken and sceptical conviction that in practice peace is impossible a wonderful idea people think without putting it into words an excellent synthesis of human aspirations but a poetic dream and a utopian fallacy an intoxicating drug but enervating there returns once again to men s minds as though with inevitable logic the thought that what matters is force man will at best reduce the combination of forces to a balance of opposition but organized society cannot do without force we must pause for a moment over this crucial objection in order to clarify a possible misunderstanding the confusion of peace with weakness not just physical but also moral with the renunciation of genuine right and equitable justice with the evasion of risk and sacrifice with cowardly and supine submission to others arrogance and hence with acquiescence to enslavement this is not real peace repression is not peace cowardice is not peace a settlement which is purely external and imposed by fear is not peace the recent celebration of the twenty fifth anniversary of the declaration of human rights reminds us that true peace must be based on a sense of the untouchable dignity of the human person from which arise inviolable rights and corresponding duties it is indeed true that peace will accept obedience to just law and legitimate authority but it will never be alien to considerations of the common good and man s moral freedom peace can also lead to serious sacrifices in the struggle for prestige in the arms race in overlooking insults and in cancelling debts it will even lead to the generosity of forgiveness and of reconciliation but never by way of abject betrayal of human dignity never by safeguarding selfish personal interests at the expense of others legitimate interests never by way of baseness peace will never be without a hunger and thirst for justice it will never forget the effort that has to be made in order to defend the weak to help the poor to promote the cause of the lowly peace will never betray the higher values of life in order to survive cf jn 12 25 but this does not mean that peace should be regarded as a utopia the certainty of peace is based not only on being but also on becoming like man s life peace is dynamic its realm extends more and principally into the field of moral obligation that is into the sphere of duties peace must not only be maintained it must be produced therefore peace is and must always be in a process of continuous and progressive realization we shall go further and say peace is possible only if it is considered a duty it is not even enough that it be based on the conviction in general perfectly justified that it is advantageous peace must take hold of the consciences of men as a supreme ethical objective as a moral necessity an áváyxn deriving from the innate demands of human coexistence this disc...