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                          Imprimis, On Line
                    Special Edition, November 1993

       IMPRIMIS (im-pri-mis), taking its name from the Latin
       term, "in the first place," is the publication of
       Hillsdale College. Executive Editor, Ronald L.
       Trowbridge; Managing Editor, Lissa Roche; Assistant,
       Patricia A. DuBois. Illustrations by Tom Curtis. The
       opinions expressed in IMPRIMIS may be, but are not
       necessarily, the views of Hillsdale College and its
       External Programs division. Copyright 1993. Permission
       to reprint in whole or part is hereby granted, provided
       a version of the following credit line is used:
       "Reprinted by permission from IMPRIMIS, the monthly
       journal of Hillsdale College." Subscription free upon
       request. ISSN 0277-8432. Circulation 480,000 worldwide,
       established 1972. IMPRIMIS trademark registered in U.S.
       Patent and Trade Office #1563325.

            ---------------------------------------------

             Hillsdale College, Hillsdale, Michigan 49242
                           Special Edition

            ---------------------------------------------

                       A Special Message From_
                           Stanley D. Crow
                           Attorney at Law

            ---------------------------------------------

       In recent years you and I have participated together in
       campaigns to prevent the establishment of an Idaho
       state lottery (we lost) and casino gambling (we won).
       When we undertook those campaigns, we had many good
       reasons to do so, but among them was our mutual desire
       to uphold and preserve traditional values--the values
       that make the difference between a society that thrives
       and one that wanes, between a society that is blessed
       with honor and one that is cursed with disrespect, and
       between a society that encourages vigorous virtues and
       one that degrades into malaise and dysfunction.

            The founders of our nation had carefully
       considered the teaching of centuries concerning how man
       should relate to God, how man should relate to man, and
       how government should encourage those right
       relationships. In turn, they created a governmental
       system that both presupposed a moral, upright, and
       self-responsible citizenry and that strived, until
       comparatively recently, to preserve those conditions.

            As our government has let us down, you and I and
       many others have stepped forward to fill the gap. One
       of the most effective in doing so is Dr. George Roche,
       whom I regard to be a philosopher of and for our times
       and a hero in the truest sense of the word. As
       president since 1971 of Hillsdale College in Hillsdale,
       Michigan, Dr. Roche has led his school to become one of
       the leading, if not the leading, institutional
       proponents and exponents of the interrelated causes of
       freedom for the individual, Judeo-Christian values for
       individuals and society, and a deep understanding of
       and firm commitment to the heritage of Western
       civilization.

            Through its own determined fight to be completely
       independent of government regulation and funding,
       through its renowned academic and public policy
       seminars both on campus and around the nation, through
       its brilliant exposition of the values that underlie
       free enterprise, through its academic rigor, and
       through its many publications--including the books of
       Dr. Roche and others and this Imprimis you hold in your
       hands--Hillsdale College has provided all of us with an
       inspiring example and the means of victory.

            I believe this so strongly that I have arranged
       for you to have a free subscription to the monthly
       Imprimis, at no cost or obligation if you so desire.
       Simply return the postpaid business reply envelope
       inside and join me as a faithful and appreciative
       Imprimis reader.

                                                    Sincerely,
                                               Stanley D. Crow

            ---------------------------------------------

                "Capitalism and the Future of America"
            By George Roche, President, Hillsdale College

            ---------------------------------------------

       The brilliant young economist George Gilder has written
       that the most important event in recent history is "the
       demise of socialist dream." However, he also notes
       "_the failure of capitalism to win a corresponding
       triumph."

            Why is this so, when capitalism has so obviously
       provided more material benefits for every individual,
       regardless of economic or social condition, than any
       other system in the history of the world? Why, when
       capitalism's intellectual defense has been so ably
       undertaken by some of the greatest minds of our time is
       socialism, thinly disguised, still taught in our
       schools and promoted by our politicians? And why, when
       capitalism's results are so demonstrably humanitarian,
       is it still seen as a symbol for greed and
       exploitation? The perplexing answers to these questions
       share a common root: They all lie in the realm of
       ideas. Ideas, I find myself often saying, rule the
       world--not armies, not economics, not politics, not any
       of the things to which we usually give our allegiance,
       but ideas.

            "Ideas have consequences"--in just three words
       Richard Weaver encapsulated an entire philosophy of
       life that is also a challenge, a call to action for all
       of us. Throughout history there have been formative
       moments in which particular ideas and particular
       leaders exert a profound impact on the character and
       events of a nation. These special epochs, marked by the
       emergence of a new consensus, can readily be found in
       American history. The first great sea-change in
       American society occurred fully 150 years before the
       American Revolution when our colonial ancestors enjoyed
       a large measure of self-government. From the start, the
       American colonial experience had drawn heavily upon the
       traditional liberties of British subjects and upon
       their rich heritage of individual freedom guaranteed by
       the Magna Carta.

            By the eighteenth century, however, the British
       were pursuing a different goal. A new economic idea,
       mercantilism, dominated British thinking. Government
       planning and control regulated society and manipulated
       individuals. Eventually, the American colonists ran out
       of patience with this growing governmental interference
       in their affairs. During the summer of 1776, Thomas
       Jefferson wrote the Declaration of Independence, a
       revolutionary document destined to represent liberty
       for the American republic as long as it should endure.

            Coincidentally, during that same summer in 1776, a
       book was published thousands of miles away from the
       American colonies, a book destined to have a profound
       effect on America. The author, Adam Smith, was a
       professor of moral philosophy at the University of
       Glasgow, and the book was The Wealth of Nations. As a
       moral philosopher, Smith contended that men must be
       free to make their own decisions because, if they are
       not, a moral paralysis soon sets in. From this basic
       truth, he examined mercantilism and discovered that
       this early form of the planned economy was denying men
       freedom of choice and thus distorting British society.
       Eleven years later, fifty-five men met in Philadelphia
       to draft our Constitution. Motivated primarily by the
       ideas articulated by Jefferson and Smith, our Founding
       Fathers charted our national path toward limited
       government, the dignity of free men, and the marvelous
       prosperity we have enjoyed in this country.

            The next great sea-change in our nation's history
       occurred around the turn of the twentieth century.
       Unfortunately, these new ideas favored the collective
       over the individual, redirecting America on an
       increasingly hazardous path as the century progressed.
       The setting was ripe. For years, as America's
       industries boomed, immigrants poured in and cities
       mushroomed, it began to seem to some that the scale of
       life itself had so magnified that the common man no
       longer had a fair chance to get ahead in the world. Far
       from what one might expect, the momentum for
       collectivism was imparted not by public figures but by
       little-known men of ideas whose names not one in a
       hundred Americans would recognize.

            In certain elite circles, some wondered whether
       the answers for America's growing pains might not lie
       elsewhere than in the common sense of the Founding
       Fathers and the time-tested traditions of our Judeo-
       Christian heritage--and whether those answers might not
       instead be found in the work of certain "daring"
       European thinkers like Marx, Darwin, and Freud whose
       ideas had rocked the Old World during the 1800s.

            So a relative handful of professors and
       intellectuals, writing in the first years of this
       century and drawing on iconoclastic theories already
       well advanced in Europe, brought those ideas to America
       and began a process that remade the face of American
       society within thirty years, roughly between 1900 and
       1930. These collectivist ideas spread from a few
       seminal thinkers, to the second- and third-hand
       purveyors of ideas--teachers, ministers, the working
       press--the word wielders. The collective mentality
       continued to spread, reaching the professions, the
       business community, the courts, the novelists, the
       artists, the general public and last--always last--the
       politicians.

            Of the first seminal thinkers of the new era, John
       Dewey has had a lasting impact on our philosophy, our
       education, our culture, and, ultimately, our
       government. From his "progressive school" experiment of
       the mid-1890s at the University of Chicago, Dewey
       advocated a system of education which would produce a
       new generation of Americans with a preference for group
       and social activity and who viewed themselves not as
       individuals but as members of a "total democratic
       society." He emphasized the unfinished nature of
       society and the universe and called for "a new kind of
       religion" to be derived from human experience and
       relationships.

            Dewey's intellectual colleagues were themselves
       busy on other fronts. At Col-umbia, anthropologist Ruth
       Benedict and her mentor Franz Boas were developing the
       ideas that man could be understood only as a social
       animal, since his character was allegedly the exclusive
       creation of his society and environment. Charles
       Beard's An Economic Interpretation of the Constitution
       was another key turning point. He set aside the
       traditional ideas of American society in favor of an
       essentially Marxian philosophy of history in which the
       Founding Fathers were portrayed as having placed the
       economic welfare of a few ahead of the total social
       welfare of all.

            The flamboyant Thorstein Veblen poured out his
       bitter frustration on the business community in shrill
       anticapitalist diatribes like The Theory of the Leisure
       Class. Meanwhile, Veblen's fellow economists John R.
       Commons and Richard Ely pioneered in charting a vastly
       expanded role for organized labor in the new
       collectivity.

            Sociologist Lester Frank Ward, one of the true
       patron saints of the modern American collectivist
       ideal, saw politics as a manipulating device designed
       to control all society, stating: "Modern society is
       suffering from the very opposite of paternalism--from
       under-government." In Ward, all those years ago, we
       thus find the original germ of an idea that has been
       central to the social planner's rhetoric from the New
       Deal era to the Clinton era.

            By 1932, the year the arch-collectivist and
       political pragmatist Franklin D. Roosevelt was elected
       president, the intellectual revolutionaries had already
       done their work, and they rapidly became the new
       political establishment. Under FDR, the new generation
       of intellectuals managed to use the Depression as a
       pretext for a massive collectivization of American
       society throughout the decade of the 1930s. They failed
       to cure the Depression, but a "fortunate" circumstance-
       -World War II--did it for them. After the war, the
       social engineers stood ready with further collectivist
       gimmicks such as the Full Employment Act of 1946.

            There was steady pressure throughout the Truman
       years for major expansion of the federal role in
       health, in education, and in welfare--pressure that
       finally resulted in new government programs under the
       succeeding Republican president, Dwight D. Eisenhower.
       Thus Eisenhower proved once again that Republican
       administrations usually ratify rather than reverse the
       collectivist inroads of their Democratic predecessors.
       The same pattern of ratification and acceleration was
       repeated two decades later when the Nixon and Ford
       administrations helped consolidate most of Lyndon
       Johnson's Great Society programs, exacerbated the oil
       crisis and other economic woes through an unprecedented
       program of peacetime wage-and-price controls, and
       presided over the regulatory explosion of the early
       1970s.

            In the last months of the Reagan presidency, we
       wondered if the pattern had been repeated. Many saw
       Reagan's election in 1980 and his subsequent reelection
       in 1984 as genuine evidence of Americans'
       disenchantment with government, a disenchantment that
       cuts across ideological lines and is an inevitable
       reaction to the love affair with statism that has been
       carried on for so long. But whatever one thinks in
       retrospect of Reagan's actual accomplishments, it is
       uncertain whether much has changed. Critics on the left
       have declared that the end of the Reagan era signaled
       the end of conservatism's brief resurgence.

            Undeniably the idea of capitalism, a central tenet
       of conservatism, remains under constant assault, and
       its detractors comprise a majority in our schools, our
       media, and  even our political and cultural leadership
       communities. One faction we may dub the "anti-
       capitalists," those who regard the redistribution of
       wealth in the name of "economic justice" as the proper
       goal of all economic activity. They claim that modern
       capitalism began with the Industrial Revolution and
       heralded child labor, wage slavery, urban squalor and a
       Hobbesian existence for the working class. The late
       20th century, they insist, is still an era of
       exploitation.

            A second group, however, focuses less on
       capitalism's evils than its supposed inadequacies. It
       is all right to defend free enterprise, so the
       reasoning goes, but today there are simply too many
       demands on the system--too many poor, too many
       problems, too many inequities--for individuals or the
       free market to handle. Government must, therefore, step
       in and act as the problem-solver. Far more people
       belong to this group than the first. They have accepted
       the need for intervention even though they may harbor
       no hostility to capitalism.

            Both groups are obsessively results-oriented. They
       begin with the premise that the world is perfectible
       and that man possesses the means to perfect it through
       his own reason and through man-made institutions.
       Capitalism simply cannot fulfill their expectations.
       Yet no amount of intellect and no economic system--no
       man-made system at all, for that matter--can cure every
       ill the world produces; it probably can't even cure
       half of them. Sadly, the false notion persists that
       some other system, some other grand vision, can achieve
       the impossible.

            The central idea of capitalism does not lie in the
       miracle of the market or even the ingenuity of the
       entrepreneur. It rests, rather, on the fundamental
       principle of freedom. One of the great sources of
       strength for America has been our commitment to
       economic, political, and religious freedom. Within our
       open society, individuals are free to provide for
       themselves and their families, to compete with others
       and to join with them in voluntary associations. We
       have been free to support those professions,
       businesses, schools, hospitals, churches, and cultural
       institutions which best meet our individual needs and
       preferences. In other words, we have prospered with
       competition and voluntary association in the private
       sector. The American economy, despite its ups and downs
       and the serious threats it faces from over regulation,
       the deficit, and the other problems of our times, has
       worked beautifully--beyond the wildest dreams of the
       utopian social planners. But it has worked precisely
       because we have allowed individuals to act freely on
       their own.

            Self-transcendence is the ability to rise above
       the merely animal, merely physical self and freely
       choose the conditions and terms of our own existence,
       to decide what is of ultimate importance and act upon
       it whether or not other people understand, whether or
       not it is dangerous, whether or not it makes us rich.
       Only human beings have that capacity. Only you and I
       do. We have the capacity to rise above our merely
       physical selves.

            Self-transcendence, based on individual choice,
       touches every aspect of our lives. If economic
       transactions were based on the immediate cave man rip-
       off--the idea that I want to grab all I can get, and I
       want to get it right now, and I will not honor any
       obligation that interferes with this--no long-term
       economic planning would be possible. No investment,
       nothing of what we call a capital structure, could ever
       come into existence, unless legal contracts were
       honored. That necessitates self-transcending people,
       people willing to honor their commitments.

            That is the leadership commitment we are
       discussing. All civilization is based upon the
       integrity of the self-responsible individual, directed
       by a view of justice, of restraint, and of
       responsibility.

            There was a time when this country of ours valued
       such an idea. It placed its faith in the responsible
       individual and the institutional structure, giving form
       to our lives. And it is the erosion of that faith which
       today destroys us from within. I submit to you that
       unless we recover it, all the methods in the world to
       do something better economically, technologically, or
       socially are just so much spitting in the wind.

            We must insist upon a return to a hierarchy of
       values which gives primacy to the dignity of the
       individual and to the instructional forms which
       guarantee that dignity.

            It is here that the free market, private property,
       private institutions--that whole private sector idea--
       has special validity, because it does leave people free
       to build their own voluntary associations, to be
       uniquely self-transcending, to get on with the dignity
       of leading their own lives.

            Remember, then, when we as leaders are talking
       about the private sector, that we are committed to it
       not because it works, though it works very well. All
       kinds of economic arguments demonstrate that the free
       market provides prosperity. It solves social problems.
       It works. But that is not the argument that we should
       advance. People are not inspired by the argument that
       they will have more refrigerators if they are free men.
       Our message must not be that the free market is good
       because it works, but rather that it works because it
       is good--because it has the fundamentally proper view
       of human nature.

            This is what capitalism offers for our American
       future. Together we can invest our resources and
       energies in a system which provides a level of
       prosperity and personal dignity unheralded in the
       history of the world. Its legacy of freedom, passed
       from one generation to the next, is now ours to defend
       for our children, and for all who will follow.


            ---------------------------------------------

       George Roche has served as president of Hillsdale
       College since 1971 and in the last two decades has
       attracted international attention for his battle to
       protect the school from federal intrusion. (Despite the
       fact that Hillsdale has never accepted federal funds,
       the Supreme Court has challenged Hillsdale's
       independence.) Firing Line, the MacNeil-Lehrer News
       Hour, News-week, the New York Times, Reader's Digest,
       Time, Today, the Wall Street Journal, and scores of
       other television, radio, magazine, and newspaper
       sources have chronicled his efforts.

            Formerly the presidentially-appointed chairman of
       the National Council on Educational Research, the
       director of seminars at the Foundation of Economical
       Education in New York, a professor of history at the
       Colorado School of Mines, and a U.S. Marine, George
       Roche is also the author of 10 books on education,
       history, philosophy, and government, including America
       by the Throat: The Stranglehold of Federal Bureaucracy
       (1985), Going Home (1986), A World Without Heroes: The
       Modern Tragedy (1987), A Reason for Living (1989), and
       One by One: Preserving Values and Freedom in Heartland
       America (1990).
                                 ###
       +++++++++++++++++++++++++++++++++++++++++++++++++++++++
          End of this special edition of Imprimis, On Line;
             Information about the electronic publisher,
         Applied Foresight, Inc., is in the file, IMPR_BY.TXT

       For the November 1993 issue, there is the normal issue
              of Imprimis issued by Hillsdale College.
                      See the file, IMPR9311.TXT
       +++++++++++++++++++++++++++++++++++++++++++++++++++++++