idua
■jK 1
wjh
3D\
Weather
Clear to partly cloudy and
mild today and tonight.
Southerly winds 8-14 mph.
Partly cloudy and warmer
Saturday. High today 75;
low tonight 49; high Satur
day 73.
Che Battalion
Today is the deadline for interim
editor applications. The interim ed
itor will take responsibility for the
issues of March 6 and 7. The Bat
talion editorial board would prefer
an editor from student organiza
tions which deal with The Battalion
on a day-to-day basis. Editor will
be announced Feb. 17.
Vol. 68 No. 74
College Station, Texas
Friday, February 14, 1975
‘Government is destroying freedom’
Friedman zaps fed fiends
Bv T. C. GALLUCCI
Staff Writer
Before a capacity crowd in the
Rudder auditorium yesterday. Mil-
ton Friedman, renowned
economist, blasted the U.S. gov
ernment for denying Americans
freedom of enterprise.
“American people must wake up
to the fact that if not checked, the
government will not only waste
their money, hut more importantly,
will destroy their freedom,” said
Friedman, in a speech on “The Fu
ture of Capitalism” for the Student
Conference on National Affairs.
The short, balding economist de
fined a capitalist as anyone with con
trol over capital. He told the audi
ence that every A6cM student is a
walking bundle of capital. “Each of
you is worth $500,000. In fact, that
is in 1971 and 1972 dollars. In 1975
dollars you are worth maybe
$1,000,0(H) or $2,000,000.” Amid
the laughter and applause, Fried
man then said that each Aggie is a
potential millionaire.
T was asked to discuss the ques
tion of the hi tore of capitalism,
Friedman said, “but the real ques
tion is what the future of free enter
prisers. Free enterprise in its truest
sense means that anyone is free to
I set up an enterprise.
Watch for an ECONOMIC
REPLY on this speech, Tues
day.
“Therefore, the real question is,
what is the future of freedom?
Never was there a place where free
enterprise was destroyed and
human freedom was not destroyed
also. This kind of freedom cannot be
entirely eliminated,” said Fried
man.
Friedman then used the example
of the So\'iet Union to clarify his
remarks. “It has been impossible for
them to exist without permitting
free enterprise to exist. Unknown to
some, farmers in the Soviet Union
are allowed to have a private plot of
land which they have complete con
trol over. Three per cent of the ara
ble land is private plots. This 3 per
cent provides one-third of the
country’s food supply. No society
has been able to exist without free
enterprise.
“We must talk about the past and
present to be able to know the fu
ture, he said. “We in the United
States have moved far away from
free enterprise.
“In the United States today there
is no true enterprise,” he said. “You
need government permission to set
up a bank. You need permission to
become a lawyer or a physician or a
wrestler. To be a beautician or a
mortician in many states you need
government permission. Even to
deliver mail, you need to have per
mission from a government official.
"In this country, a person is not
free to set up an enterprise without
the permission of the government.
Freedom in the sense of free enter
prise and personal freedom is
greatly restricted," said Friedman
to a round of applause.
Friedman told the crowd that
there are two things to know in
order to measure the degree of
socialism in the U.S.:
1. “Know one fraction. Know
that 40 per cent of whatever a per
son earns is spent by the govern
ment for him. That is to say that the
government is a 40 per cent partner
in any transaction two individuals
take part in.
2. “Know that the United States
government owns 48 per cent of
every corporation. For every dollar
earned, 48 cents goes to the gov
ernment. Of every dollar lost, 48
cents is borne by the government.”
SCONA delegates, students and
faculty listened as Friedman told
them that they lost their personal
and human freedom when they lost
the freedom of enterprise.
"We have also lost the freedom of
speech and our other historic free
doms. For example, no business
man will lambast a President’s
proposals. If he does, maybe the In
ternal Revenue Service will check
his returns the next day. There is
silence among businessmen con
cerning controversial subjects.”
Professors and students do not
criticize government because many
are receiving grant money from the
federal government, he said.
“The small group who will criti
cize are like me. A tenured profes
sor in the social sciences that is not
receiving any money from the Na
tional Science Foundation,” said
Friedman, grinning.
Friedman remarked that the 19th
century, between the Civil War and
World War I, was the closest the
U.S. came to enjoying true free en
terprise. He said the 19th century,
as most believe it to have been, was
a myth. Friedman claimed that the
only truth to the myth is that it was
indeed a time of rugged, unre
strained individualism.
When speaking of the tremend
ous surge in immigration during this
period, Friedman asked, ‘‘Did
these people come to be exploited?
There is no better signal to which
place is better than by the vote of
their feet. This is shown by the
steady stream of immigration.
“Only by the individualism of the
19th century, said Friedman, have
we become so fat and able to sup
port the government in the money it
wastes.
“The 1900’s-1920’s was the period
of great intellectual movement.
Socialism was regarded as the be-all
★★★
or end-all of policy. The most active
political party of the time was the
Socialist party. Although it won no
elections, all of its platforms have
since been enacted.”
The essential catalyst that
brought a dramatic shift from a
period of individualism to a period
of growing collectivism was the
Great Depression. Friedman
claimed that the Great Depression
was the direct result of government
mismanagement of the money sup
ply and not attributable to any fail
ure of free enterprise.
"It did have the effect of creating
misery and distress and of making
the people willing to accept very
drastic changes in arrangements. In
the 1930 s we shifted our philosophy
of government. Prior to that point,
the general view had been that the
government was an umpire, that it
(See FRIEDMAN, p. 4)
★★★
Photos In Tom Kayser
Before a very captive audience, Milton Friedman gives his views on economy.
Bureaucrats, like goblins, will ‘getcha’
By PAUL McGRATH
Staff Writer
Dr. Milton Friedman, professor
of economics at the University of
Chicago, denounced governmental
growth for causing the destruction
of free enterprise and personal free
dom, Thursday.
Friedman condemned the ten
dency of government to listen to
special interest groups insisting the
only way to cut spending is to spend
on them. Thus, instead of cutting
back funds, government spends on
each group.
He said he believed this standard
approach is the inherent reason for
government growth. “And it will
not be easy to check that tendency.
We will check it if and only if the
American people will wake up to the
fact that ii it is not checked soon, it
will not only waste their money, but
far more important, it will destroy
their freedom.”
Friedman, brought to Texas
A&M by the Great Issues Commit
tee and the Student Conference on
National Affairs, is considered by
many to be American’s foremost
economist.
Following his speech on the fu
ture of capitalism in America,
Friedman conducted a question and
answer session.
Friedman was asked about the
1929 depression and his statement
that it was based on government
mismanagement. Friedman said
the depression had to be divided
into two parts. One from 1929-30
which he described as a “garden var
iety recession.” It was then con
verted into a major depression by
the collapse of banks. The funda
mental item that changed it into a
depression was that the Federal Re
serve System allowed the money
supply to drop by almost one-third.
He says the Federal Reserve Sys
tem had the power to avoid such a
contraction in the money supply
and if it had, the depression would
never have been as deep as it was.
Friedman compared the relation
ship of developing nations who use
the free enterprise system to those
that do not. He said the great
tragedy of those nations lacking a
free enterprise system is the exten
sive use of socialism.
He named India as a prime exam
ple. In the 19th century, India used
the free enterprise system and now
is using social collectism which is
“holding down the ordinary peo-'
pie.
The free enterprise system of the
United States aids other nations
with free enterprise systems by of
fering them free trade and open
markets. Harm was done to other
nations unintentionally by the mis
use of American foreign aid prog
rams. Their governments have been
strengthened from the aid programs
and have used them to squelch pri
vate enterprise.
Asked if it was the right of a gov
ernment to restrict big business,
Friedman said freedom of speech
and personal freedom could only be
kept by the existence of alternative
jobs. If government was the only
employer there would be no free
dom. Thus, other businesses,
whether great or small, must exist to
maintain freedom. Restrictions
must be made on institutions to pro
tect the rights of those who create
the government.
Friedman exploded the myth that
the Gilded Age was an era of robber
barons who controlled government.
He said the government did not
have enough power to be exploited
and the common man improved his
lot to a great degree during that
time because there were many
small businesses at which he could
work. Friedman said that big busi
ness today has more power over
Americans under the present gov
ernment than at any time during the
nineteenth century.
“Do the statements of public offi
cials have any bearing on the
economy?” was the next question.
Friedman answered, “None.” He
said what went on behind closed
doors on Constitution Avenue had
more to do with the present reces
sion than all of the public speeches
President Gerald Ford, or anyone
else, has made.
Foreign student
tuition increases
Teague: feds must unify
to get programs passed
AUSTIN (AP) — A Senate com
mittee approved a bill Wednesday
that would raise tuition for foreign
students at Texas colleges by $26 a
semester hour.
The Legislative Budget Board es
timated that the bill would provide
an extra $8.6 million for higher edu
cation over the next two years.
The proposal raises tuition for
foreign students from $14 per
semester hour to $40, which is what
a student from another state who is
attending a Texas college pays now.
“They (foreign countries) charge
us enough for oil. We ought to get
back a little, said Sen. W.T.
Moore, D-Bryan, the bill sponsor.
Moore said Texas A&M, which is
in Moore’s district, “thinks it ought
to pass.”
Sens. Lloyd Doggett, D-Austin,
and Chet Brooks, D-Pasadena,
voted against the proposal, which
was approved for floor debate by the
State Affairs Committee.
By STEVE GRAY squabbling over Ford’s economic- recession.
Staff Writer energy program. “I just wish Ford would quit saying
Congressman Olin E. Teague of In a press conference at the I won t compromise,’ Teague told
College Station said Thursday the Ramada Inn Teague said it will take reporters. “I don’t think he’s all
country will get nowhere if President sincere efforts on hoth sides if the wrong but energy is the most debata-
Ford and the Congress don’t quit nation is to recover from the present ble topic we have now. Both sides are
Teague (L) talks with University Information Director Jim Lindsey (C) and Justice of the Peace B. H.
going to have to bend some if we re
going to get some answers to these
problems.”
Teague said some of those answers
may lie in extensive studies of alter
nate energy sources.
“It’s too bad we haven’t done more
research in the areas of solar and
geothermal energy, he said. “We’ve
also got to do more study on efficient
uses of coal.
The Congressman said the gov
ernment must step up programs cut
ting federal spending and open up
employment opportunities.
“I’m not sure whether or not the
job market is going to be as bad as the
President predicts, Teague said,
“but I certainly favor programs that
will give people a chance to work and
get off welfare. ”
Teague said he agrees with Ford’s
plan to curtail certain federal expen
ditures by $17 billion.
T m not going to vote for a dime’s
increase in the salary of any federal
employe, ’ Teague emphasized.
“You ve got to start somewhere and I
think salaries is one place.”
He said he was willing “to give
Ford’s economic-energy program a
chance,” which also calls for a $16
billion tax reduction or rebate. But
Teague said he wasn’t sure just where
the tax break should come in a specific
salary range.
The President s foreign policy calls
for an appropriation of $522 million in
aid to South Vietnam, which Teague
said he will probably vote against.
Teague, formerly chairman of the
Veteran s Committee for 12 years,
said he favors eliminating GI benefits
for all future veterans. White House
officials proposed such a measure
Thursday but any cutoff of education
benefits would not affect anyone now
eligible.
“The Vietnam War’s over for us,
Teague said, “so why should we con
tinue paying future vets thousands of
dollars a year for 18 months of service.
Present veterans are concerned about
the rise of benefits in the past six to
seven years from $7 billion to $16 bill
ion. I expect the President will cut off
some of those benefits next month.”
Teague termed Ford’s amnesty
program as “a failure because the
number of unconvicted deserters and
draft evaders signing up for public
service jobs has declined recently.
Teague told newsmen he is looking
forward to meeting with the Russian
ambassador next week to discuss the
joint Soviet-U. S. space mission. The
flight project is scheduled to begin
July 15. Teague is chairman of the
House Science and Astronautics
Committee.
Teague emphasized he has not
changed his stand on the controver
sial Millican Dam issue.
"I have supported the proposed
dam in that area for 25 years,” he said,
“and I don’t intend to back down. I
think there is no question that we
need it for water resources.”
The project, authorized in 1954,
involves construction of a flood-
control reservoir on the Navasota
River. Landowners in the area, in
cluding the Navasota Landowners
Association, have opposed the project
site but supported moving it to
another site about 30 miles north of
the original Millican site.
Funny thing .. .
They raise pay,
but slash jobs
By JUDY BAGGETT
It might be a little harder to find a job on campus
now because of the recent state pay hike.
All university employees will receive the raise
from Senate Bill No. 1, R. Clark Diebel, controller of
accounts, said Wednesday. The bill only furnishes
money for a part of those getting the raise. Areas not
covered by the legislation will receive a raise with
money taken from the departments’ surplus funds.
A February 6 memorandum from President Wil
liams said “efforts should be made to arrange neces
sary funding.” He suggested departments delay fil
ling vacant positions and not create new ones.
Williams also suggested departments delay
major expenditures, curtail merit increases for the
rest of the fiscal year and postpone position reclassifi
cations.
Those not included under the legislation are the
service department and revolving funds, auxiliary en
terprises and activities and restricted funds.
“Departments will have to rework budgets,
Diebel said. “It takes a lot of squeezing sometimes.
Of the approximately $93 million appropriated,
A&M receives $4,072,000. Not all of the money goes
for the raise, however. There will be an increase from
12 cents to 16 cents per mile in travel reimbursement.
Per diem pay went from $18 a day to $22.
The bill also calls for an increase in state partici
pation in group insurance premium for employees.
The increase is $2.50, going from $12.50 to $15.
The raises will be:
$5.04 — 13 percent increase
5.05 — 7.31 — 66 cent increase per hour
7.32 and up — 9 percent increase