Free To Choose: a personal Statement

and Price Controls ( Washington, D.C.: Heritage Foundation, 1979).
15. The reason: a policy of trying to maintain a fixed exchange rate for
the yen in terms of the dollar. There was upward pressure on the yen.
To counter this pressure, the Japanese authorities bought dollars with
newly created yen, which added to the money supply. In principle,
they could have offset this addition to the money supply by other
measures, but they did not do so.
CHAPTER 10
1. Raoul Berger, Government by Judiciary ( Cambridge: Harvard Univer-
sity Press, 1977), pp. 1, 408.

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326
FREE TO CHOOSE: A Personal Statement
2. Lectures on the Relation between Law and Public Opinion (1914 ed.),
P
.
302.
3. "Boom Industry," Wall Street Journal, June 12, 1979, p. 1, col. 5.
4. Lectures on the Relation between Law and Public Opinion (1914 ed.),
pp. 257-58.
5. Milton Friedman, "Monumental Folly," Newsweek, June 25, 1973.
6. Friedman and Schwartz, Monetary History, p. 46.

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INDEX
Adams, John, 298
Addams, Jane, 140
Advertising, 224–25
"Affirmative action," 187, 301
Africa, 60, 148
AFL-CIO, 237
Agricultural Adjustment Adminis-
tration (AAA), 93
Agriculture, 36, 56
in free economy, 3–4
government interference in, 4,
293
in USSR, 10
Aid to families with dependent chil-
dren, 108
Airline industry, 200–201, 225
Airline pilots, 232, 233–34, 236
Aldrich, Nelson W., 72
Algeria, 220
Allende, Salvador, 253
Alum Rock (California), school
vouchers used in, 172, 173
American Federation of Teachers,
170
American Medical Association,
231, 234, 239–40
Amtrak, 200, 201–2
Anderson, Martin, 109, 125–26
Animal Farm ( Orwell), 103, 135
Argentina, 253
Aristocracy, 97–98, 154, 285
Army Corps of Engineers, 190
Association of State
Universities
and Land Grant Colleges,
185
Auletta, Ken, 101
Automobile industry, 192—93, 224—
26. See also Ford Motor
Company; General Motors
Ayers, Don, 173
Balance of payments, 41, 43
Bangladesh, 148
Banking Act of 1935, 89
Banking system, U.S., 73–75, 80–
84, 92. See also Federal Re-
serve System
Bank of United States, 80–82
Banks.
See also Federal Reserve
System; names of banks
deposits in, 72–73, 76
fractional reserves in, 73, 74
restriction of payments by, 71–
72, 74, 82, 84
runs on, and panics, 71–72, 73–
75, 76, 80—84
Beck, David, 242
Bellamy, Edward, 93
Berger, Raoul, 287
Bill of Rights. See Constitution,
U.S.
Biorck, Dr. Gunnar, 113
Bismarck, Otto von, 93, 97, 99
Bittenbender, William P., 172
Blacks, 132. See also "Affirmative
action"; Slavery
discrimination against, 165–66,
236
education of, 151, 165—66
teenage unemployment of, 237–
38, 245
Bopp, Karl, 86
Boston (Massachusetts), 158
Brazil, 147, 253, 256, 262, 263
Brennan, Pat, 288–89, 294
Broderick, Joseph A., 81—82
Bronx (New York), 110—11, 159
Bryan, William Jennings, 196
327

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328
Index
Budget, balancing, 301–4
Bureaucracy, 6, 96, 97, 108, 114,
117–18, 144, 155–57, 231,
288, 294–98
educational (see Educators, pro-
fessional)
government, income and job se-
curity of, 243–45, 247
as "new class," 141–42, 295, 301
in regulatory agencies, 190, 197,
198, 201, 208, 209–10, 211,
216–17, 218, 222, 243, 298
resistance to change from, 125,
170, 171–175
special interests and, 295–98, 301
in USSR, 146
welfare, eliminating, 121, 122–23
Busing, 166, 167, 188, 300
California, 171, 172, 173, 182,
200–201, 283
Callaghan, James, 266
Cambodia, 10, 135
Canada, 113–14, 227
Capital, 222, 247
accumulation of, 124, 127
"human," 21, 23
inherited, 21, 23
physical, 21, 23, 24
Capitalism and equality, 146-48.