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Kenneth J.

Arrow

A Cautious Case for Socialism

T he discussion of any important social cannot be partly understood; historical study,


question must involve an inextricable mixture sociological inquiry, intellectual debate, and
of fact and value. The fundamental impulse to the many dimensions of the political process
change and especially to great change is a are all ways in which we do communicate
perception of present wrong and a vision of values. But my own values are the starting
potential right. The initial impulse must still point, though not the terminus. In the oft-
be checked for feasibility; we live in a world of quoted words of the sage Hillel, "If I am not
limits, and what we desire may not be for myself, then who is for me?" to which he
attainable or it may be attainable only at the immediately added, "and if I am not for
expense of other high values. There is an others, then who am I?"
ancient warning, "Be careful what you dream This methodological preface is by way of
of when young; your dreams may come true!" apology for the extent to which this paper is
With the painter Braque, then, I can say, "I an intellectual autobiography. Notice the
like the rule that corrects the emotion." But adjective, "intellectual." Anyone who knows
that presupposes a strong emotion to begin me will not be surprised; I have always
with; and it is there I would like to begin. preferred the contemplative to the active life. I
Values and emotions are best apprehended prefer the freedom to see matters from several
personally, and I will speak of my own viewpoints, to appreciate ironies, and indeed
attitudes and their development. This does to change my opinion as I learn something
not mean that my values are all that matter, new. To be politically active means to
even to me. I hold that others are free and surrender this freedom. I say nothing against
autonomous human beings, each capable of activism for others. It is only through the
developing his or her own value system of committed that necessary changes come. But
equal worth and respect to my own. But by each to his own path.
that very token, the values of others must The great issues of socialism and capitalism
always retain an element of mystery. The became alive to me, as to so many others, in
equal but different emotionally based ax- the Great Depression. My own family was
iological drives of others can never be fully severely affected. A precocious high-school
communicated. This is not to say that they boy, brought up with excellent newspapers
and a family very interested in world events,
could hardly help reflecting on the system and
its failures. They seemed obvious enough. The
This essay was delivered as a lecture at the third Lionel
long queues of unemployed at the soup
Trilling Seminar of the academic year 1977-78, on April kitchens shown in the newspapers and the
13, at Columbia University and appears here with newsreels, the waves of bank failures and the
permission. personal tragedies of the depositors, the

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gasping struggles of relatives who tried to run there was no unemployment, at a time when
small businesses, and the ominous connection the advanced capitalist economies were
between unemployment and the rise of spiraling downward or at best stagnating.
Nazism were convincing evidence that the The New York Times was the source of this
current economic system was a disaster. The favorable information, much more to be
idea, sometimes bruited about then, that believed than the Communist party
unemployment was the fault of the pamphlets passed out on the streets. To be
unemployedthat they were lazy or incom- sure, the Hearst newspapers were telling us
petent or whatnotstruck me as laughable. I about famine and repression in the Ukraine;
regret to say that this concept has been revived but who would believe them? My family was
by some of my fellow economists. hardly radical; indeed, they changed from
I was impressed not only by the personal Republicans to New Deal Democrats only
tragedies of unemployment but also the under the influence of poverty. But the Hearst
clearly anomalous coexistence of desperate newspapers were not respectable; my un-
needs with keeping idle the resources, men, willingness to trust them as against the Times
and machines, which could meet those needs. had perfectly respectable middle-class
I was of course economically illiterate, though justification.
considering the standard pre-Keynesian I have spoken so far as if efficiency were the
textbook economics this may have been an main value. Indeed, it was true that the
advantage. One day I remember working out apparent sheer irrationality of the workings of
to my temporary satisfaction an explanation capitalism was a basic condemnation. But as I
why the capitalist system could not achieve observed, read, and reflected, the capitalist
full employment; it was in effect a Keynesian drive for profits seemed to become a major
explanation except that there was no invest- source of evil. Clearly, the individualistic
ment at all. I realized, however, that it was a profit drive had something to do with the
little too powerful, since there could never uncoordinated inefficiency of capitalism. But,
have been any prosperity. more, the drive for profits had other
manifestations. The Nye committee, a con-
gressional investigating committee, was
W hat gave bite and impetus to these engaged in a major investigation of the
reflections on the rottenness of the times was munitions industry; its influence over
the presence of an alternative possibility. It governments in creating the fears that
has become a truism that a scientific theory, improved its sales seemed to be well
however incapable of explaining the facts, will documented. The economic explanations of
never be displaced except by another theory. imperialism were virtually standard. Charles
It is even more true that a social system, Beard and other historians had accustomed
political or economic, however bad its us all through their books to seeking an
consequences, will be replaced only if there is economic explanation of all political actions.
a vision of a better system. The idea of The Constitution represented a certain set of
socialism was easily available. One read about economic interests, the Civil War a conflict,
it even in textbooks and newspapers, as well sometimes called "irrepressible," of different
as in the that major source of education, the profit-seeking groups. Most serious of all,
public library. Here we did seem to have a World War I, a tragic living memory, was
resolution of our difficulties. Surely, a clearly caused, at least in great measure, by
rationally organized, centrally coordinated competition among the capitalist interests of
economic system could avoid the instability of the different powers.
the capitalist economy and the terrible human It was in this area of political-economic
and material costs of unemployment. interactions that Marxist doctrine was most
Further, there was such an economy. The appealing. I was never a Marxist in any literal
Soviet Union was building and expanding, sense, unlike a great many of my fellow

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students at the City College, in New York. vital in my attitude toward socialism. The two
Irving Kristol has written an evocative article were and are intimately linked in my mind.
on the intensity of intellectual life among the Being killed is, after all, a rather extreme form
anti-Stalinist Marxists who foregathered in of deprivation of freedom, and in a typical
Alcove One and listed the many eminent modern war, the killer is subject to as much
social scientists and literary critics who compulsion as the killed. I tended therefore to
emerged from this training. It would appear a a rather pacifist position. This position, to be
Marxist background is an essential prere- sure, began increasingly to separate me from a
quisite for the development of a neoconser- revolutionary socialist position.
vative thinker. On the value of freedom, I don't think I ever
I could not follow Marxist doctrine very thought it through; it was just a value that
literally for a number of reasons. The labor was taken for granted. Obviously, an
theory of value was a stumbling block even American education inculcates such a value
before I studied economics with any strongly. However, I was naive or conscien-
seriousness; there were too many obvious tious enough to take it very seriously and to be
phenomena that it ignored. Nevertheless, the shocked at examples of its denial. Discrimi-
insight Marxist theory gave into history and nation against blacksdenial of their
particularly as to political events was striking: political rights, segregation in housing and
the state as the executive committee of the employmentwas the most blatant case do-
bourgeoisie, the class interpretation of mestically; remember that lynching still
political and social conflicts, and the inter- existed. Imperial control of the United States,
pretation of war and imperialism as the as in the Philippines, and, much more
conflict of competing national capitalist extensively, by Great Britain in India and
interests were illuminating and powerful. It Africa, served to demonstrate that political
appeared more profound than the alternative freedom had narrow limits under capitalism.
versions of the economic interpretation of The freedom of workers seemed to me
history; they seemed to be mere muckraking, much restricted. Strike-breaking by fairly
the behavior of venal individuals. Marxism direct and brutal methods, as well as more
put the system rather than the individual into subtle forms of economic pressure, was a
the foreground. common event. Even apart from overt
What I drew from this thinking was an conflict, the regular operation of the factory
argument for system change. The basic appeared as a form of regimentation and a
criterion for change was moral and ethical. I denial of individual freedom an implication
did not accept ideas of historical inevitability. then widely accepted, expressed in such
What the Marxist analysis did say to me, at movies as Chaplin's Modern Times and Rene
least then, was that the system of production Clair's A Nous La Liberte' and, more subtly
according to profit established vested in- and profoundly, in Lewis Mumford's
terests in destructive activity, most especially Technics and Civilisation, then very famous
war and imperialism, but also oppression of and still worthy of rereading.
workers and destruction of freedom. I do not
believe I ever accepted the theory that racial
discrimination was the result of capitalist
endeavors to divide the working class, but I
A broader and less direct form of control
flowed from the concentration of control in
certainly accepted the general belief that the American industry, indeed capitalist industry
capitalist class would overthrow democracy everywhere. The importance of relatively few
rather than lose its power, as it had done in large industrial and financial corporations did
Italy and Germany and was then striving to do not need much documentation, and
in Spain. numerous investigations documented their
Thus, beside the efficiency value, the values scandals. But massive support for the more
of freedom and the avoidance of war were scholarly minded came from Berle and

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Means's The Modern Corporation and resources were used, (2) the avoidance of war
Private Property, which established not and other political corruptions of the pursuit
merely the concentration of the productive of profits, (3) the achievement of freedom
sector into large firms but also the concentra- from control by a small elite, (4) equality of
tion of control within those firms. Even the income and power, and (5) encouragement of
capitalist stockholders were deprived of cooperative as opposed to competitive
power, if not wealth. motives in the operation of society.
The absorption of the economy by a small From the perspective of greater education
elite implied that the formal democracy and and experience and with 40 years of history,
freedom was increasingly a sham; the major my understanding of the relation between
decisions on which human welfare depended these values and the desirability of socialism
were being made by a few, in their own has altered. Many countervailing considera-
interests. The same process had another tions have been raised by further analysis and
implication, as Marx had argued long before; knowledge of the facts.
production was in effect already being carried One problem that I did not face was
on in socialized enterprises, so that the shift to highlighted by history almost immediately. If
a completely socialist economy would be that capitalism was to be reprehended for its
much easier. concentration of control and consequent
As some of my examples indicate, I did not inequality of power and lack of freedom for
find any sharp line to draw between the values the average man, what would happen under
of freedom and of equality. The typical socialism? Did not state ownership imply or at
example of lack of freedom was a great least permit overwhelming concentration of
inequality of power. Much is made these days power in the hands of a political elite? Soviet
of the alleged opposition of freedom and Communism pushed these questions into our
equality; but I would have regarded the two as consciousness. For me, the Moscow trials of
close to identical in many contexts. As for 1935-36 were a dramatic, even traumatic
inequality of income, I took it for granted that turning point. It was clear that the old
it would be reduced under socialism by the Bolsheviks were unjustly convicted, and their
abolition of the income category of profits. confessions only increased the horror, since it
Finally, there was a strong antipathy to an spoke of barbaric pressures. I reflected, too,
economic and social system based on selfish that in the improbable event that the charges
and competing motivations. I eagerly sought of treason were true, the Stalin regime was
confirmation in the works of contemporary equally condemned; for what could induce
anthropology, such as Margaret Mead's Sex those who had risked all under the Czars to
and Temperament in Three Primitive create this new world to turn against it save a
Societies, for the proposition that coopera- deep sense of its evil? However the factsr were
tion was at least as natural as competition. interpreted, they were not compatible with the
My pacifist views coincided in a natural idea that the Soviet Union was a democracy
way with these broader motivational assump- or was even moving in that direction.
tions. Like many others of the time, I was Differences of opinion, even among socialists,
strongly attracted by Gandhi's nonviolent were not being tolerated. I had not believed
campaigns against British rule. The underly- that the Soviet Union was a genuine
ing assumption was the common humanity of democracy at any time, but its political back-
ruler and ruled; the appeals to cooperative wardness could easily be explained by history
and altruistic motives seemed to have at least and the ring of quite genuine enemies it had.
some success as against the simple selfish But now it appeared that as the generation
exercise of power. raised under socialism came to adulthood and
To sum up, the basic values that motivated as the Soviet Union grew stronger vis-a-vis its
my preference for socialism over capitalism enemies, the repression grew greater, not less.
were (1) efficiency in making sure that all The true enormity of the Soviet tyranny

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was revealed only in time. But from my point was the way in which the ideal market was to
of view, the challenge to socialism was already be achieved. This doctrine was held by many,
reasonably clear. At a minimum, the socialist including especially the professor here at
economy did not guarantee democracy and Columbia to whom I owe so much, both
individual freedom. I had the naive idea that intellectually and personally, Harold Hotell-
in the absence of a profit-making class, there ing. Graduate education in economics at
would be no class interested in achieving Columbia at that time, just before our
power over others. It became clear that this entrance into World War II, seemed curiously
view was hardly adequate. The worse problem designed to emphasize the ideal nature of
was the possibility that socialism, by concen- neoclassical theory. The dominating voices,
trating control of the economy in the state Wesley Mitchell, J. M. Clark, and Arthur F.
apparatus, facilitated authoritarianism or Burns, held that neoclassical theory had little
even made it inevitable. I return to this vital descriptive value. Though Clark and Burns, at
challenge below. least, certainly had no support for socialism,
their views, when taken into conjunction with
the theorems of welfare economics, resonated
I became seriously interested in the study of with my convictions that socialism could yield
economics only after beginning graduate a more efficient economy.
study around 1940. Needless to say, learning Finally, the development of Keynesian
something of the workings of the economic economics and, after the war, its gradually
system and of the logic of neoclassical increasing application changed the nature of
economics had a considerable effect on my the efficiency discussion. In true Hegelian
attitude toward socialism. George Stigler fashion, capitalist instability and the socialist
remarked once that the study of economics is counterattack seemed to be synthesized: it
a highly conservatizing force. To some extent seemed possible to have an economy that
this is true, but only to the extent that any retained much of capitalist drive and initiative
increase in knowledge may lead to greater and yet gave room for the government to
realization of limitations. The inner intervene to avoid at least the worst inefficien-
coherence of the economy, the way markets cies of unemployment and the idling of other
and the pursuit of self-interest could in resources. I accepted provisionally what
principle achieve a major degree of coordina- seemed to be a widespread consensus in the
tion without any explicit exchange of euphoria of postwar economic growth. The
informationin short, the valid elements in state had an active role to play in maintaining
Adam Smith's doctrine of the invisible effective demand and in dealing with the
handbecame important possibilities that many imperfections of the market system
qualified a simple view of the inefficiency of revealed by theoretical welfare economics
markets. Similarly, the facts of long-term the overcoming of market failures and
economic growth in spite of the contemporary monopoly and the realization of economies of
economic debacles had to registerthough, scale. These interventions should take the
to be sure, one could scarcely ask for a greater form of relatively impersonal measures, taxes
testimonial to the creative power of capitalism and expenditures, rather than detailed con-
than was already contained in the Communist trols and direct regulation. The higher taxes
Manifesto. meant that the government was automatically
My immediate reaction was to interpret engaged in redistributing, and some of us felt
neoclassical economic theory and particularly that it should go much further.
the then new and rapidly developing dis- I have spoken of a provisional acceptance. I
cipline of welfare economics as pointing to an still felt it important to explore more deeply
ideal efficient economy rather than the actual the possibility that socialism was a superior
one, marked both by massive unemployment possibility. I was more aware of the complex-
and by monopolistic distortion. Socialism ities of operation of a socialist system and

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sought to develop more deeply the theory of equal. It can be objected that the drive for
such a system. I also sought to explore more equality may dull incentives, and the net result
fully the criteria for a democratic social will be a reduction in everyone's real income.
organization. These matters could be thought This is a legitimate instrumental objection but
of as matters for slow reflection and long-term not an objection to the value presumption in
analysis, so long as the economy seemed to be favor of equality as such. Many current
performing so well and the political process thinkers object to distributive equality on
seemed to be responding, however slowly, to principle, on the grounds that it contradicts
demands for improvements in efficiency, freedom of property. This is a large subject; I
redistribution, and the overcoming of market simply state my conviction that property is
defects. The apparent pause in economic itself a social contrivance and cannot be taken
growth, the crisis in stabilization policy as an ultimate value, indeed, that institutions
occasioned by the current inflationary threats that lead to gross inequalities are affronts to
and realities, and the loss of purpose in the equal dignity of humans and can only be
redistributional measures all combine to raise accepted as necessary evils.
anew the question of alternatives to It certainly seems as obvious as can be that
capitalism. In many of our sister democracies, a socialist economy can achieve much closer
the issue is much more closely on the agenda income equality than a capitalist economy.
than it is here. Beyond that there is the large The category of profits is absent. While we
fraction of the world where socialism and now understand that most inequality in
authoritarianism coexist in varying degrees of income is due to inequality of so-called labor
comfort. And then, since, to twist a phrase of incomes, it is certainly true that the ability to
Marx's, every historical phenomenon appears acquire profits increases inequality. Further,
as both tragedy and farce, we have the the higher end of the income of professionals
widespread solemn use of the word and executives is largely a rent in the
"socialism" to cover some of the most absurd economic sense and would be unnecessary in a
travesties of that term. socialist society. One needn't ask for utopian
dreams of virtually complete equality of
income.
In a world of any complexity, there must
L et me spend the remaining time in
reexamining briefly the case for socialism
necessarily be both antagonistic and
cooperative elements. The model laissez-faire
from the viewpoint of the five values men- world of total self-interest would not survive
tioned earlier: efficiency, separating political for ten minutes; its actual working depends
decisions from selfish economic interests, upon an intricate network of reciprocal
freedom, equality of income and power, and obligations, even among competing firms and
the stress on cooperative as against in- individuals. But the capitalist system is
dividualistic motives. These are not balanced structured so as to minimize cooperative
remarks; only the favorable side will be endeavor. The worker is a factor of produc-
presented. Perhaps on another occasion I will tion, a purchased item, not a part of a team.
present the contrary case. The case for The attempts to handle externalities in recent
socialism from each value viewpoint is much years have led to interesting resistances;
more refined and complex than I originally antipollution regulations are perceived as a
thought, and there are many qualifications threat to profits, not a social gain. Again,
that must be made. But I still consider that the socialism is far from a magic cure. Each
argument can be made. suborganization, for example industrial
For reasons of time, I will deal only briefly plants, will have its own proximate goals,
with the last two points. With regard to which will not mesh completely with those of
equality of income, let me first remark that I others. But the system should permit a greater
am taking it to be a good, other things being internalization of broader goals. It should be

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easier for a plant to regard product safety as about the needs and production possibilities
one of its socially valued outputs. of the members of the economy. In the
absence of suitable markets, other coor-
dinating and communicating mechanisms are
T he comparative economic efficiency of
capitalism and socialism remains one of the
needed for efficiency. These come close to
defining the socialist economy, although
most controversial areas. The classical admittedly wide variations in the meaning of
socialist argument is that the anarchy of that expression are possible.
production under capitalism leads to great As I have already suggested, the existence
wastage. An appeal to the virtues of the price of idle resources is a prime example of
system is, in fact, only a partial answer to this coordination failure. The experience of the
critique. The central argument, which implies Communist countries bears on this point.
the efficiency of a competitive economic With all their difficulties and inefficiencies,
system, presupposes that all relevant goods and they are not few, recurrent or prolonged
are available at prices that are the same for all unemployment is not one. A graph of
participants and that supplies and demands of economic activity in the United States is,
all goods balance. Now virtually all economic under the best of circumstances, jagged and
decisions have implications for supplies and spasmodic, that of the Soviet Union much
demands on future markets. The concept of smoother. Fluctuations there are, as there
capital, the very root of the term "capitalism," must be in anyicomplex dynamic system. But
refers to the setting-aside of resources for use the planning, however -inept, serves to keep
in future production and sale. Hence, goods the basic resources and their uses in line.
to be produced in the future are effectively The sophisticated antisocialist reply to this
economic commodities today. For efficient argument is not to deny it but to emphasize
resource allocation, the prices of future goods that a socialist system is not an ideal resource-
should be known today. But they are not. allocating mechanism either. Much is made of
Markets for current goods exist and enable a the obvious inefficienCies of the Communist
certain coherence between supply and de- countries, though the Soviet growth rate and
mand there. But very few such markets exist technical development has on occasion
for delivery of goods in the future. Hence, caused fear and trembling and overall still
plans made by different agents may be based averages above the United States rate. As all
on inconsistent assumptions about the future. too frequently happens in the social sciences,
Investment plans may be excessive or inade- no clear-cut dominance pattern of efficiency
quate to meet future demands or to employ can be found either way. All that can be said is
the future labor force. that socialism is clearly a viable economic
The nonexistence of future markets is no system, contrary to what many would have
doubt linked to uncertainty about the future. asserted in the not-too-distant past, and it
But this points to an even more severe does not release energies and productivity far
shortcoming of the actual capitalist system beyond the capitalist norm.
compared with an ideally efficient economic I have referred rather vaguely to the
system. The uncertainties themselves are corruption of the political system by narrow
relevant commodities and should be priced in economic interests as one of the evils of
such an economy. Only a handful of insurance capitalism that might be avoided under
policies and, to a limited extent, the stock socialism. More explicitly, a democratic
market serve to meet the need for an efficient polity is supposed to be based on egalitarian
allocation of risk-bearing. distribution of political power. In a system
In the ideal theory of the competitive where virtually all resources are available for
economy, market-clearing prices serve as the a price, economic power can be translated
communication links that bring into into political power by channels too obvious
coherence the widely dispersed knowledge for mention. In a capitalist society, economic

478
power is very unequally distributed, and which he thoroughly disliked, was fully
hence democratic government is inevitably compatible with political democracy. It is
something of a sham. In a sense, the main- only perhaps with Friedrich von Hayek's The
tained ideal of democracy makes matters Road to Serfdom that the association of
worse, for it adds the tensions of hypocrisy to capitalism and democracy became a staple of
the inequality of power. the procapitalist argument. The association
My early assumption that only capitalists itself, however, was not new; it was one of the
would have an incentive to influence standard Marxist views, though not held by
democratic decisions was too simple. all. The hypothesis was that the resistance of
Everyone in an economy has an economic capitalists to the coming of socialism will lead
interest. It is also true that individuals have to the subversion of democracy by them. At
interests and attitudes that do not derive from least the transition will require the "dic-
their economic improvement and may even tatorship of the proletariat," a phrase whose
oppose it. But it is today a widespread ambiguities have been only too well clarified
doctrine, held by conservatives as well as by history. This Marxist view indeed gives
socialists, that concentrated economic in- credit to capitalism for the origins of
terests are more than proportionally powerful democracy; it is an appropriate political form,
in the political process. George Stigler and his a parallel to the ideas of free contract. So long
colleagues have maintained with great vigor as the "contradictions" of the system are not
that regulation of industries is usually carried too sharp, the nominal equalization of
out in the interests of the regulated and is not political power offers no threat because
infrequently originated by them. The reasons economic power is so preponderant. But
offered are perfectly in accordance with democracy will decline with the failure of
ordinary economic principles; there are capitalism. The experience of Chile, to cite
economies of scale in the political process, so only a recent example, certainly gives some
that a small economic interest for each of a credence to this theory.
large number of individuals is less likely to get Ironically, the current conservative model
represented than a large interest by a small explaining the supposed association of
number. capitalism and democracy relates to the
So long as the state power can be Marxist as a photographic negative to a
democratically run, much of this distortion of positive. It too suggests that the political
the democratic process should be minimized "superstructure" is determined by the
under socialism. Income inequalities should "relations of production." The conservative
be greatly reduced. Economic power deriving model contrasts the dispersion of power
from managerial control rather than income under capitalist democracy with its concen-
should be less easily translatable into political tration under socialism. Political opposition
power than under a regime of legally and requires resources. The multiplicity of
practically autonomous corporations. capitalists implies that any dissenting voice
can find some support. Under socialism, the
argument goes, the controlling political
W e come then, finally, to what is probably faction can deny its opponents all resources
the most serious of all the concerns about and dismiss them from their employment.
socialism. Is it in fact compatible with This theoretical argument presupposes a
freedom and democracy? It is the fear that monolithic state. It is something of a chicken-
socialism may bring tyranny that has in- and-egg proposition. If the democratic legal
hibited so many of us from being more active tradition is strong, there are many sources of
advocates. power in a modern state. Adding economic
It is noteworthy that when Joseph control functions may only increase the
Schumpeter wrote on Capitalism, Socialism, diversity of interests within the state and
and Democracy, he affirmed that socialism, therefore alternative sources of power. It is

479
notoriously harder for the government to socialist as that term is properly used, have
regulate its own agencies than private firms. certainly greatly increased their intervention
Socialism may easily offer as much pluralism in the economy. Yet democracy and political
as capitalism. and personal freedom have never been
The overpowering force in all these stronger in these countries. Indeed, Samuel
arguments is the empirical evidence of the Huntington has argued that an excess of
Soviet Union and the other Communist democracy makes it difficult to meet the
countries, and it is strong. But the contrary current problems of the United States.
proposition, that capitalism is a positive The evidence, it seems to me, points to the
safeguard for democracy, is hardly a view that the viability of freedom and
reasonable inference from experience. The democracy may be quite independent of the
example of Nazi Germany shows that no economic system. There can be no complete
amount of private enterprise prevents the rise conviction on this score until we can observe a
of totalitarianism. Indeed, it is hard to see that viable democratic socialist society. But we
capitalism formed a significant impediment. certainly need not fear that gradual moves
Nor is Nazi Germany unique; Fascist Italy, toward increasing government intervention
Franco's Spain, and the recurrent Latin- or other forms of social experimentation will
American dictatorships are illustrative lead to an irreversible slide to "serfdom."
counterexamples to the proposition that It would be a pleasure to end this lecture
capitalism implies democracy. with a rousing affirmation one way or the
Further evidence can be drawn from the other. But as T. S. Eliot told us, that is not
increasing role of the state in guiding "how the world will end." Experiment is
economic activity. The United States, the perilous, but it is not given to us to refrain
United Kindom, and Sweden, though not from the attempt.

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