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.
Our government has kept us in a perpetual state of fear - kept us in a continuous stampede of patriotic fervor - with the cry of grave national emergency. Always there has been some terrible evil at home or some monstrous foreign power that was going to gobble us up if we did not blindly rally behind it by furnishing the exorbitant funds demanded. Yet, in retrospect, these disasters seem never to have happened, seem never to have been quite real.
Virginia States' rights, as our forefathers conceived it, was a protection of the right of the individual citizen. Those who preach most frequently about states' rights today are not those seeking the protection of the individual citizen, but his exploitation. The time is long past — if indeed it ever existed — when we should permit the noble concept of states' rights to be betrayed.
The ballot is stronger than the bullet.
If you care about women's rights, you can't not vote.
A faction willing to take the risks of making war on the ossified status quo in the Middle East can be described as many things, but not as conservative.
Election days come and go. But the struggle of the people to create a government which represents all of us and not just the one percent - a government based on the principles of economic, social, racial and environmental justice - that struggle continues.
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