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FREE TO CHOOSE: A Personal Statement
spending did not equal the limit in any year, that would lower
the limits applicable to future years. In addition,
the proposed
federal amendment requires a reduction in the percentage if in-
flation exceeds 3 percent a year.
OTHER CONSTITUTIONAL PROVISIONS
A gradual reduction in the fraction of our income that govern-
ment spends would be a major contribution to a freer and stronger
society. But it would be only one step toward that objective.
Many of the most damaging kinds of government controls over
our lives do not involve much government spending: for ex-
ample, tariffs, price and wage controls, licensure of occupations,
regulation of industry, consumer legislation.
With respect to these, too, the
most promising approach is
through general rules that limit government power. As yet, the
designing of appropriate rules of this kind has received little at-
tention. Before any rules can be taken seriously, they need the
kind of thorough examination by people with different interests
and knowledge that the tax and spending limitation amendments
have received.
As a first step in this process, we sketch a few examples of the
kinds of amendments that appear to us desirable. We stress that
these are highly tentative, intended primarily to stimulate further
thought and further work in this largely unexplored area.
lnternational Trade
The
Constitution now specifies, "No State shall, without the con-
sent of the Congress, lay any imposts or duties on imports or
exports, except what may be absolutely necessary for executing
its inspection laws." An amendment could specify:
Congress shall not lay any imposts or duties on imports
or exports, except what may he absolutely necessary for exe-
cuting its inspection laws.
It is visionary to suppose that such an amendment could be
enacted now. However, achieving free trade through repealing
individual tariffs is, if anything, even more visionary. And the
The Tide ls Turning
305
attack on all tariffs consolidates the interests we all have as con-
sumers to counter the special interest we each have as producers.
Wage and Price Controls
As one of us wrote some years ago, "If the U.S. ever suc-
cumbs to collectivism, to government control over every facet
of our lives, it will not be because the socialists win any argu-
ments. It will be through the indirect route of wage and price
controls."
5
Prices, as we noted in Chapter 1, transmit informa-
tion—which Walter Wriston has
quite properly translated by
describing prices as a form of speech. And prices determined in
a free market are a form of free speech. We need here the exact
counterpart of the First Amendment:
Congress shall make no laws abridging the freedom of
sellers of goods or labor to price their products or services.
Occupational Licensure
Few things have a greater effect on our lives than the occupa-
tions we may follow. Widening freedom to choose in this area
requires limiting the power of states. The counterpart here in our
Constitution is either the provisions in its text which prohibit
certain actions by states or the Fourteenth Amendment. One
suggestion:
No State shall make or impose any law which shall
abridge the right of any citizen of the United States to follow
any occupation or profession of his choice.
A Portmanteau Free Trade Amendment
The three preceding amendments could all be replaced by a
single amendment patterned after the Second Amendment to our
Constitution (which guarantees the right to keep and bear arms) :
The right of the people to buy and sell legitimate goods
and services at mutually acceptable terms shall not be in-
fringed by Congress or any of the States.
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FREE TO CHOOSE: A Personal Statement
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