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The Invisible Hand Is a Gentle
Hand
By Sharon Harris
September 14, 1998
The enemies of freedom have always maligned the free
market. They have perpetuated myths like "dog-eat-dog
capitalism," "survival of the fittest," "the law of
the jungle." Robber barons. Heartless monopolies. A ruthless Wall
Street fleecing a helpless Main Street.
Baloney.
We must speak out for the free market and individual
liberty.
The great economist Adam Smith wrote that a free society
operates as if "an invisible hand" directs people's actions —
in such a way as to serve the interest of the whole society.
That invisible hand is a gentle one. A free market is a
gentle market. A free society is a gentle society. A cooperative,
compassionate, and generous society. An abundant and tolerant society.
David Friedman, in his book The Machinery of Freedom,
notes that there are only three ways to get something: (1) by trading, (2)
by receiving a gift (from love or friendship), or (3) by force ("do
what I want or I'll shoot you"). Honest, peaceful people operate in
the first two ways. Criminals and the state operate by force, aggression,
coercion.
The gentle invisible hand vs. the visible fist of force.
You want to see dog-eat-dog? Look at the Waco massacre
of the Branch Davidians. Look at the Ruby Ridge shooting of Vicki Weaver.
Look at an IRS audit. We don't have a dog-eat-dog business world; we have
a dog-eat-dog government.
Dog-eat-dog is defined as "ruthless or savage
competition." This is an absurd description of the free market.
And besides, it's unfair to dogs.
In truth, the marketplace has a civilizing, humanizing
effect. If honesty didn't exist, the marketplace would invent it, because
it's the most successful way to do business. In the free market we see,
not a survival of the fittest, but a survival of the kindest. Survival of
the most cooperative. Survival of the friendliest. A gentle Darwinism, if
you will.
In a free society, the most considerate prosper. As
Thomas Sowell says, "Politeness and consideration for others is like
investing pennies and getting dollars back." A smile has currency.
There are built-in incentives in the marketplace for
service, courtesy, respect. The invisible hand becomes a friendly
handshake between cooperating adults. As John Stossel pointed out in his
ABC special, "Greed," notice how — when you purchase something
at a store — the clerk says, "Thank you," and you say
"Thank you" as well? It's a mutually beneficial exchange, and
both parties are better off.
Cooperation
Let's look more closely at cooperation. The gentle
invisible hand vs. the visible fist of government
Here's a question for you: Would you rather visit
Wal-Mart or the Department of Motor Vehicles? Of course, at the DMV you
get something free — free grief, at no extra charge.
At the Smith Food King market, when there are more than
three people in line, they open a new register. At the Post Office, when
there are more than three people in line, two of the clerks go to lunch.
In a free society, people are treated as customers or
potential customers. The customer is always right — even when he's not.
Yes, there are rude people in the marketplace. But it's
easy to quit doing business with them.
Contrast that to dealing with the government. Perhaps no
one has ever better summed up what its like to interact with the
government than the French political theorist, Pierre-Joseph Proudhon. In
1849, he wrote:
To be governed is to be watched, inspected, spied
upon, directed, law-ridden, regulated, penned up, indoctrinated,
preached at, checked, appraised, seized, censured, commanded, by
beings who have neither title, nor knowledge, nor virtue. To be
governed is to have every operation, every transaction, every movement
noted, registered, counted, rated, stamped, measured, numbered,
assessed, licensed, refused, authorized, endorsed, admonished,
prevented, reformed, redressed, corrected.
Sounds as though he had some experience dealing with
government.
Compare that to the gentle hand of the free market. If
you don't like the way one grocery store treats you, you can go elsewhere.
If you disagree with your church, you can choose another denomination —
or none at all.
But with government, we don't have that choice. What if
you don't like the Motor Vehicle department? Can you get your drivers'
license somewhere else? Or try telling the IRS you don't like the way the
government spends your money, and see where that gets you.
The gentle invisible hand vs. the visible fist of
government.
Adam Smith said "It is not from the benevolence of
the butcher, the brewer or the baker that we expect our dinner, but from
their regard for their own interest."
In the marketplace, people tend to be well mannered —
even if they hate you. The profit motive can even overcome racism,
sexism, homophobia, and other prejudices. Even the most racist businessman
eventually realizes on some level that "I might hate the color of
their skin, but I love the color of their money."
Economist Walter Williams likes to talk about how Texas
cattlemen work long hours to make sure that New Yorkers have all the steak
they can eat. The ranchers don't do this because they love New Yorkers.
Again, the invisible hand at work, creating cooperation.
In any business situation, success is more likely for
the people or companies who treat their customers with respect, kindness,
courtesy, friendliness.
Notice the smiley face at Wal-Mart. Do you think there's
one at the Social Security office?
If the school system had to compete, do you think your
child might be treated more respectfully? Would there be better books?
More individual attention? Learning how to read?
Cooperation is inherent in the free market. It is absent
from the government, because coercion doesn't require it.
Compassion
A free society is a compassionate society — unlike our
current government, which acts as though it's at war against sick people.
James Burton is a former Kentuckian who is living
literally in exile in the Netherlands. A Vietnam War veteran, he suffers
from a rare form of hereditary glaucoma. All the males on his mother's
side of the family had the disease, and several of them have gone blind.
Burton found that marijuana could hold back, and perhaps
halt, the glaucoma. So he began growing marijuana for his own use.
Kentucky State Police raided his 90-acre farm and found 138 marijuana
plants and two pounds of raw marijuana. At his trial, ophthalmologist John
Merritt — at the time the only physician in America allowed by the
government to test marijuana in the treatment of glaucoma — testified
that marijuana was the only medication that could keep Burton from going
blind.
Nevertheless, Burton was found guilty of simple
possession and was sentenced to one year in a federal maximum security
prison, with no parole. The government also seized his house and farm.
Under forfeiture laws, there was no defense he could raise against the
seizure of his property. No defense witnesses were permitted at his
hearing.
After release from prison, Burton and his wife moved to
the Netherlands, where he can legally purchase marijuana to stave off his
blindness. Now, instead of living on a sprawling farm, they live in a tiny
apartment, an ocean away from family and friends. They would love to
return to America — but not at the cost of his going blind.
This is the visible fist of government.
Will Foster, a 38-year-old software programmer and
father of three, grew marijuana in his basement to treat his severe
rheumatoid arthritis. Police raided his home and found about 70 marijuana
plants. Journalist James Bovard points out that, because Foster was a
first-time offender, the judge let him off — with a 93-year sentence.
This is the visible fist of government.
One more example. In 1992, Jimmy Montgomery of Oklahoma
was sentenced to 10 years in prison for possession of two ounces of
marijuana. That's the same weight as the tobacco in two packs of
cigarettes. Montgomery was using the marijuana to relieve painful muscle
spasms in his paralyzed limbs. Montgomery is a paraplegic who has been in
a wheelchair for over 20 years after an industrial accident. His harsh
sentence was because he was convicted both for possession and for intent
to distribute — based on the testimony of a cop who said he had never
seen anyone with two ounces who didn't intend to distribute.
This poor man nearly died twice in prison because of
lack of medical care. Because he had infectious sores that endangered
other inmates, he was put in an isolated cell where he couldn't call for
help. He had to remove his own bloody bandages without benefit of salve.
Guards lost his urine bag, putting him in danger of death from infection.
He eventually was released, but the lack of medical
treatment in the government's prison led to his leg being amputated.
This is the visible fist of government — at war
against thousands of utterly innocent, desperately ill Americans.
A while back, I saw a TV news show about a new drug the
FDA was considering for approval. There were people, some of them in
wheelchairs, begging — literally begging — for the drug, which had
helped many of them and which for some was their last chance. Tears were
streaming down their faces. The pious committee of doctors sat around a
table and voted not to give the drug to these people because the
government had not yet proven its effectiveness. "It's for your own
good," one of them said to the sick people. Later, one member of the
committee explained to the reporter that they didn't want to "give
false hope to these people."
These medical bureaucrats know so well what's best for
you that they will kill you before they'll let you make a decision for
yourself. Isabel Patterson, in her book God of the Machine, called
people like this "humanitarians with a guillotine."
The FDA is a silent killer. The number of deaths that
could have been prevented with life-saving drugs this agency withheld from
the marketplace is in the hundreds of thousands. FDA delays continue to
kill thousands of people every year.
The visible fist of government.
Many patients suffering from terrible pain are denied
adequate pain relief — even though such relief may be legal, cheap, and
readily available. Many doctors and hospitals fear that if they write too
many prescriptions, federal and state regulators will harass them or even
halt their practices. Their fear is grounded in reality.
Dr. Richard Blonsky, president of the American Academy
of Pain Medicine, said, "For a person experiencing pain, narcotics
are the best pain killers we know. A lot of doctors fear that if they
write too many prescriptions, Big Brother will get them." Studies
indicate that up to 70% of terminal cancer patients — patients who are
dying and thus no longer in danger of long-term addiction to narcotics —
do not get sufficient pain medication.
This suffering is the product of the visible fist of
government.
Violence
Now let's consider the difference between the gentle
invisible hand and government with regard to violence.
Well-intentioned or not, government is violence. As
Buckminster Fuller said, "The end move in politics is to pick up a
gun." Laws are laws only because government can use coercion against
anyone who violates them.
In contrast, when violence occurs in a free society, it's
a crime. The rule is voluntary exchange. The "freedom to
choose." The Golden Rule. The gentle invisible hand.
Violence is the day-to-day normal activity of criminals
— and government. Sometimes it's hard to tell the difference. The
visible fist of government.
When you think about violence, think about this:
government has the War on Poverty, The War on Illiteracy, The War on
Drugs. And these are not just metaphors, they're real wars. They are
funded at gun point and enforced at gun point. Of course, the "War on
Drugs" isn't a war on drugs. No one ever shot an aspirin. But it
really is a war. We have Czars — people like Bill Bennett who see
nothing wrong with beheading drug dealers. Speaker of the House Newt
Gingrich — himself a former pot smoker — is now calling for the death
penalty for drug offenders, including those who carry just two ounces of
marijuana into the country.
Prohibition seems to bring out a terrible vindictiveness
and cruelty in some people. In 1929, Mrs. Etta Mae Miller was convicted of
having sold a single quart of liquor. This was her fourth such offense, so
her sentence was life imprisonment. Life in prison for selling a quart of
liquor. The General Secretary of the Board of Temperance, Prohibition and
Public Morals [sic] said, "Our only regret is that the woman was not
sentenced to life imprisonment before her ten children were born. When one
has violated the Constitution four times, he or she should be segregated
from society to prevent the production of subnormal offsprings."
Today's prohibition is far more savage. Last year,
641,642 people were arrested on marijuana charges — over 85% of them for
mere possession. There are hundreds of people serving life sentences —
with no possible parole — for marijuana offenses. In Alabama, there's a
man serving a life sentence for possession of one joint.
Thousands of Americans are serving at least five years
in federal prison — with no possible parole — for possessing as little
as five grams of crack cocaine. Two pennies weigh more than five grams.
To libertarians, the role of government is at most to
protect us from violence, theft, and fraud. Yet government,
directly or indirectly, causes most of the violence, theft, and fraud in
our society. Government promotes violence in two ways.
The first is as an unintended consequence of laws and
programs. For example, one third to one half of criminal offenses are
committed by drug addicts driven into crime by the Drug War's black
market. Milton Friedman estimates that up to one half of the homicides in
this country — 10,000 deaths per year — result directly from the Drug
War.
A free society would end this violence overnight.
And in a free society we could better defend ourselves
from violence.
Citizens would have the indisputable right to keep and
bear arms. And a gun is a wonderful deterrent to violence. In states that
have "shall issue" laws (where people without criminal records
or evidence of mental illness are permitted to carry guns), crime rates
are much lower than in states where there are no such laws. A major study
by University of Chicago law professor John Lott shows that these states
reduced robbery by 3%, aggravated assaults by 7%, and murders by 8.5%. It
is estimated that extending shall-issue laws to states that don't now have
them would lead to 12,000 fewer robberies per year, 60,000 fewer
aggravated assaults, 4,177 fewer rapes, and 1,570 fewer murders.
That means the visible fist of government is causing a
lot of unnecessary human suffering through its gun-control laws.
The second way government promotes violence is by itself
committing it directly against citizens.
Government seizes people's property when they've never
even been charged with a crime. This is called "asset
forfeiture." A better term might be "robbery with a badge."
Under forfeiture laws, inanimate objects can commit
crimes. Such things as cars and boats are charged with a crime, as a way
for government to confiscate them.
Imagine if I came to your house and said, "I don't
approve of the kind of beer you drink. And I'm sure you drove your car to
the store to buy it, so your car's guilty and I'm taking it." People
would declare me insane.
I sure wouldn't try it in one of the
"shall-issue" states.
Today more than 100 federal laws authorize federal
agents to confiscate private property allegedly involved in violations of
statutes on wildlife, gambling, narcotics, immigration, money laundering,
and on and on. Federal agents can seize your property with no court order
and no proof of legal violations. Billions of dollars worth of property
has been seized in this way from tens of thousands of Americans who have
never been accused of a crime or stood trial. It's so difficult to get
their property back that most victims never bother to try.
The IRS can freeze your bank account or put a lien on
your house without a hearing of any kind. And government can take property
through eminent domain. Recently near my home the county government forced
a black church to sell its land to make room for a tunnel. The so-called
"fair" price paid wasn't enough to rebuild the church. A whole
church community will be displaced for a bureaucrats' idea of progress.
In a free society, not only would this not happen
to a church, but there'd be no BATF to burn churches down. Is your church
BATF-approved?
Government theft is more insidious than free-lance
theft. Lysander Spooner, one of America's most brilliant political
theorists, talked about this in his masterpiece, No Treason. He
compared ordinary robbers to tax collectors. The robber, he pointed out,
robs you only once — and then goes on his way. The government, on the
other hand, robs you year after year after year. Then it has the gall to
say it's doing you a service and expects your gratitude.
The visible fist of government.
In a free society, the right to property and privacy
would be sacred. It would be, as the great English statesman William Pitt
so eloquently stated, " . . . the poorest man may
in his cottage bid defiance to all the forces of the Crown. It may be
frail — it's roof may shake — the wind may blow through it — the
storms may enter — but the king of England cannot enter — all his
force dares not cross the threshold of the ruined tenement."
In a free society, we will have that kind of protection.
Those who want your property will have to negotiate with you. The gentle
invisible hand, not the visible fist.
In a free society, we would also be far better protected
from the violence of war.
There would never be a military draft or senseless
foreign wars. Never again would children be seized from their families —
as if they were natural resources — and sent far away to risk their
lives. Never again would wives and mothers stand crying as they watch
their conscripted husbands and sons come home in body bags. No more
war-orphaned children.
What an incentive to work for a libertarian society.
A noninterventionist foreign policy has another welcome
side effect. When we have, as Jefferson said, "peace, commerce and
honest friendship with all people, entangling alliances with none,"
we will greatly reduce the risk of terrorism. Much of terrorism is
provoked by the American government's meddling in other governments'
affairs.
Free trade also discourages war and makes friends
instead. As Bastiat said, "When goods don't cross borders, soldiers
will."
The gentle invisible hand vs. the visible fist of
government. It's as different as night and day, robbery and voluntary
exchange, war and peace. Government is at perpetual war against people and
their property. We desire — we deserve — peace.
Generosity
A free society is also a generous society.
In a free society, those in need would be better cared
for. Michael Novak said of a free society, "No better weapon against
poverty, disease, illiteracy, and tyranny has yet been
found . . . Capitalism's compassion for the material
needs of humankind has not in history, yet, had a peer."
How do we know a free society would be more generous?
Thanks to Marvin Olasky, we don't have to theorize. In his two books on
American compassion, The Tragedy of American Compassion and Renewing
American Compassion, he provided examples and reasons that private
charities have worked wonders — and showed why the government's
so-called "welfare" was doomed to failure from the outset.
Government welfare has created resentment against the
poor. And government has taken away responsibility to provide for others.
It's time to strip away the veneer of humanitarianism
from government.
As Charles Murray demonstrated in Losing Ground,
government welfare simply doesn't work. In fact, it's been a disaster.
And it's not necessary.
Bill Clinton wasn't needed to create the Red Cross,
Habitat for Humanity, or thousands of other charities.
We don't need the income tax to force us to help the
poor. As Milton Friedman points out, before the income tax "privately
financed schools and colleges multiplied. Foreign missionary activity
exploded. Non-profit, private hospitals, orphanages, and numerous other
institutions sprang up like weeds. Almost every charitable or public
service organization, from The Society for the Prevention of Cruelty to
Animals, to the YMCA and YWCA, from the Indian Rights Association to the
Salvation Army, dates from that period."
The true test of compassion and generosity is to compare
government welfare to private charity. John Fund, a Wall Street Journal
editor, speaking at the Advocates for Self-Government 10th Anniversary
Summit in 1995, showed how to demonstrate easily the difference between
government welfare and private charity. Just ask someone, "If you
came in to lots of money — say you won the lottery — and you wanted to
help the poor. Would you give your money to the Department of Health and
Human Services, or to your favorite charity?" You can almost see the
light bulb come on in someone's head. No one ever proposes to donate a
windfall to the government.
The gentle invisible hand of private charity vs. the
visible fist of government welfare.
Abundance
A free society is one of abundance.
A place where people can work themselves out of poverty
— instead of their poverty being a way of life that will be passed down
to succeeding generations.
Let's look at Social Security. You get a little of your
money back. When you die, it disappears. In a libertarian world, you would
have the opportunity to retire better off than you are while you're
working. Even if you're a minimum wage-earner.
Economist and author Robert Genetski did the math. In
his book, he showed how privatizing Social Security and government
schools, along with a reduction in government regulations, would add at
least $5,000 annually to the income of even the lowest-paid workers. What
does that mean? Using conservative assumptions, virtually everyone could
retire with $1 million or more!
The name of his book is, appropriately, A Nation of
Millionaires.
Imagine a country that was literally a nation of
millionaires. In one generation, people could leap-frog from a modest
income to a level at which they could leave their children small fortunes.
Knowing that it's possible, we shouldn't demand any less.
We can't even imagine all the wonders that will exist
when human minds are set free to create — when we get government out of
the way of progress.
Because government doesn't work, but freedom does.
Someone once observed, if government had been in charge
of fighting the polio epidemic — instead of the Polio Foundation —
today we would have bigger, better iron lungs.
The gentle invisible hand vs. the visible fist of
government.
Tolerance
A free society is a tolerant society. Unlike the
cookie-cutter world of the state, where one education system is made to
fit all, where one medication must apply to all, where one lifestyle is
forced on all.
In a free society, there's room for cranks, misfits,
oddballs, outcasts. They're free to pursue their happiness in their own
way.
Tolerance. Freedom of speech. Freedom of association. A
place where unwise and unpleasant opinions can be expressed freely, and
the right to do so is defended ferociously.
Unbelievably, in many states in America today, acts of
love between consenting adults are forbidden! What kind of society is
this? To people who believe in freedom, this is intolerable.
Again, the gentle invisible hand vs. the visible fist of
government.
In a free society, all honest and peaceful people —
wherever they may be from — are free to make their own way, make their
own contribution, and benefit from the abundance and tolerance liberty
brings.
Until World War I, immigration was almost completely
free in the U.S. Immigrants came by the millions, and by the millions they
prospered and quickly became part of mainstream America — without
government handouts.
The gentle invisible hand. An open hand of welcome to
all who yearn to be free. As the Statue of Liberty inscription boldly
proclaims:
"Keep, ancient lands, your storied pomp!"
cries she
With silent lips. "Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tossed, to me;
I lift my lamp beside the golden door."
Once I saw on television a group of Haitians who had
crossed the ocean on a small, inflatable raft. The raft was meant to hold
a dozen people, but twice that many had been on board. They had somehow
survived the shark-infested, turbulent rages of the sea. They were
exhausted, hungry, dirty, frightened. These people had risked their lives
to come here. Can you imagine the kind of courage that took?
A reporter interviewed one of the men. His clothes were
dirty and tattered and he was so weak he could barely stand. But he smiled
as he pulled something from the inside of his jacket. Neatly folded in a
plastic bag was a clean set of clothes. He needed them, he explained, so
he could go on job interviews.
Of course, he never got that opportunity. The government
sent him back to Haiti.
No one would be denied in a libertarian society.
Refugees from tyranny would always be welcome.
Moving toward Freedom
Has anyone ever said to you, "You libertarians have
some good ideas, but you go too far"? You might ask — gently of
course — to examine what it means to go too far. Can we be too pure or
too consistent? You might ask, "How pure would you want a transfusion
from the blood bank to be? 80% pure? 90% pure? 97%?" People don't say
that Mother Theresa went too far in demonstrating her love and compassion
for her fellow humans.
But it is up to you and to me to help people understand
that freedom is not something too extreme — something to be feared. It
is something to be dreamed of, worked for, welcomed.
Can it be done? Can we achieve a free society? I believe
we can.
History is on our side. Whenever something has been
separated from the state, it has proven to be better for the people
involved, for the activity itself, and for society.
Consider religion. The King was once considered God's
representative. How dare anyone suggest that virtue could exist in society
if the state didn't force religion on everyone. Surely there would be
chaos and barbarism.
But look what happened when church and state were
separated. Churches blossomed and grew. Society was much better off once
the government's Crusades ended. And when the church-state Inquisition
ended. And when the state no longer burned "witches" at the
stake.
Think about the wonderful benefits that have come from
separating speech and state — politically, culturally, and personally.
Separation of economy and state — to the extent that
it's been done — has produced flourishing economies with prosperity
beyond anyone's wildest dreams.
The privatization revolution has produced savings of 50%
or more and amazing efficiency. I look forward to even more separation of
garbage collection and state.
The next separation, I believe, will be that of school
and state. I think the movement engineered by Marshall Fritz and the Alliance
for the Separation of School and State will achieve success in our
lifetimes.
Whenever someone advocates that something else be
separated from the state, the idea is considered heretical, unachievable,
even undesirable.
But, from the grand (like education and free speech) to
the mundane (like garbage collection), separation always leads to a better
world for all of us.
Libertarians are at the forefront in the drive to
replace coercion with liberty. This is as exciting as the revolt against
the divine right of kings — and as important as the revolution to end
slavery.
Utopia is never possible, but in a free society we can
get a heck of a lot closer to it than we are now.
I envision a gentle society of kindness and cooperation.
A safer, non-violent society. A generous and giving society, where poverty
is unusual and temporary, and where those who are in need are taken care
of with dignity and respect.
A place where Jimmy Montgomery and others in pain can
get the medicine they need. A place where no one would be put in jail for
thinking he had the right to control his own mind and body.
I envision an abundant society. Where all can keep the
fruits of their labor. A nation of millionaires. Where buying power
continues to multiply. Where technology continues to bring about
breathtaking improvements in lifestyles.
Where there are no wars — on drugs, on people, or on
foreign soil.
I envision a tolerant society — where those seeking
refuge are welcomed with open arms. Better still, I envision a world in
which people won't need to risk their lives to get to a place where
they can be free. Once America is free, the benefits of freedom will
overflow our borders. We will be a shining beacon to the whole world. More
and more people will demand the same from their own societies and will
begin to emulate us. I envision a free world.
That's my vision of a free society. What is yours?
Whatever it is, don't hide it under a bushel basket. Transmit it to your
neighbors and friends. Tell them of the invisible hand and the way it
works. Contrast a free society with one in which violence is the norm.
Show them they have a choice between these two worlds. And ask them —
gently — which will they choose?
We should all want to play a vital role in this
wonderful revolution, because someday people will talk about us. Granddads
will say to their grandchildren, "Once upon a time, there was an
income tax. And did you know that the government once told people what
they could eat and drink? Or that children were forced to go to government
schools?
"But there were people who were courageous and
ahead of their time. People who acted out of principle, out of
self-preservation, out of love and compassion — because they were
horrified by the visible fist of government."
Your grandchildren will say you took a courageous stand
for humanity. You shared the vision of a cooperative, kind, safe,
abundant, tolerant world. And you made it happen.
You restrained the visible fist of tyranny.
You untied the invisible hand of liberty.
Sharon Harris is the President of Advocates for
Self-Government, an activist organization providing tools and tips for
spreading the message of liberty. You can visit its website at www.self-gov.org.
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