If, for example, existing government intervention is minor, we shall attach a smaller weight to the negative effect of additional government intervention. This is an important reason why many earlier liberals, like Henry Simons, writing at a time when government was small by today's standards, were willing to have government undertake activities that today's liberals would not accept now that government has become so overgrown.
Interpretation
In liberal thought, the acceptance of government intervention depends on the size of existing government influence.
Milton Friedman highlights how the perception of government intervention has changed over time. He argues that earlier liberals were more open to the idea of government involvement in the economy when government was less influential, but as government has grown, resistance to additional intervention has increased. This underscores the relationship between the existing state of government and the willingness to accept further government actions.
In practice
During discussions about economic reforms, one might quote Friedman to emphasize the changing dynamics of government intervention.
The economic miracle that has been the United States was not produced by socialized enterprises, by government-unon-industry cartels or by centralized economic planning. It was produced by private enterprises in a profit-and-loss system. And losses were at least as important in weeding out failures, as profits in fostering successes. Let government succor failures, and we shall be headed for stagnation and decline.
Universities exist to transmit knowledge and understanding of ideas and values to students not to provide entertainment for spectators or employment for athletes.
There is no place for government to prohibit consumers from buying products the effect of which will be to harm themselves.
There is one and only one social responsibility of business - to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.
The great danger to the consumer is the monopoly -whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him. Alternative sources of supply protect the consumer far more effectively than all the Ralph Naders of the world.
The strongest argument for free enterprise is that it prevents anybody from having too much power. Whether that person is a government official, a trade union official, or a business executive. If forces them to put up or shut up. They either have to deliver the goods, produce something that people are willing to pay for, are willing to buy, or else they have to go into a different business.
While democracy in the long run is the most stable form of government, in the short run, it is among the most fragile.
Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.
Labor # Unions are the leading force for # democratization and # progress .
The black masses must demand and refuse to accept nothing less than that proportionate percentage of the political spoils such as jobs, elective offices and appointments... They must reject the shameful racial tokenism that characterizes the political life of America today.
Given a fair wind, we will negotiate our way into the Common Market, head held high, not crawling in. Negotiations? Yes. Unconditional acceptance of whatever terms are offered us? No.
This is a country for, of, and by the people not for, of, and by the government. If we turn it over to them we cannot complain about what they're doing because this is a natural course of men and we have to hold their feet to the fire.
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