C H A P T E R F I V E
Freedom For The Farmer
"... supervision of agriculture and other concerns of a similar nature... which are proper to be provided for by local legislation, can never be desirable cares of a general jurisdiction. It is therefore improbable that there should exist a disposition in the federal councils to usurp the powers with which they are connected; because the attempt to exercise those powers would be as troublesome as they were nugatory."
Alexander Hamilton in the Federalist Papers, No. 17.
H
AMILTON WAS WRONG
in his
prediction as to what men would do, but quite right in foreseeing the consequences of their foolhardiness. Federal intervention in agriculture has, indeed, proved "troublesome." Disregard of the Constitution in this field has brought about the inevitable loss of personal freedom; and it has created economic chaos. Unmanageable surpluses, an immense tax burden, high consumer prices, vexatious controls—I doubt if the folly of ignoring the principle of limited government has ever been more convincingly demonstrated.
We have blundered on so grand a scale that even our critical faculties seem to have been damaged in the process. No man who is familiar with the subject will deny that the policy of price supports and production controls has been a colossal failure. Yet, today, some of our best minds have no better solution to the problem than to raise the supports and increase the controls!
The teaching of the Constitution on this matter is perfectly clear.
No power over agriculture was given to any branch of the national government.
The sponsors of the first Agriculture Adjustment Act, passed in 1933, tried to justify the law under the so-called general welfare clause of the Constitution. The Supreme Court promptly struck down that legislation on the grounds that the phrase, "general welfare," was simply a qualification of the taxing power and did not give Congress the power to
control
anything. "The regulation (of agricultural production)," the Court said in United States v. Butler (1936) "is not in fact voluntary. The farmer, of course, may refuse to comply [a privilege not given him under present legislation], but the price of such refusal is loss of benefits... the power to confer or withhold unlimited benefits is the power to coerce or destroy..."
The New Deal Congress replied by enacting substantially identical legislation, the second AAA, and now sought to justify the program as a "regulation of interstate commerce." This was a transparent evasion of the Butler case; but the Supreme Court, which by this time was under heavy political fire for having thwarted the "Roosevelt Revolution," made one of its celebrated about-faces and upheld the new act. The federal government has usurped many powers under the guise of "regulating commerce," but this instance of distorting the plain meaning of the Constitution's language is perhaps the most flagrant on record.
In the case that upheld the second AAA,
Wickard
v.
Filburn,
(1942), a farmer had been fined for planting 23 acres of wheat, instead of the eleven acres the government had allotted him—notwithstanding that the "excess" wheat had been consumed on
his own farm.
Now how in the world, the farmer wanted to know, can it be said that the wheat I feed my own stock is in interstate commerce? That's easy, the Court said. If you had
not
used your own wheat for feed, you might have bought feed from someone else, and that purchase might have affected the price of wheat that
was
transported in interstate commerce! By this bizarre reasoning the Court made the commerce clause as wide as the world and nullified the Constitution's clear reservation to the States of jurisdiction over agriculture.
The tragedy, of course, is that the federal government's unconstitutional intrusion into Agriculture has not brought us any closer to a solution of the "farm problem." The problem, when federal intervention began, was declining farm incomes. Today, many farm incomes are still low. But now we have additional problems—production controls that restrict freedom, high consumer prices, huge crop surpluses and a gigantic tax bill that is running close to six billion dollars a year. No matter what variant of the price support-production control approach we adopt, the solution to these problems continues to elude us.
The reason government intervention has created more problems than it has solved is quite simple.
Farm production, like any other production is best controlled by the natural operation of the free market.
If the nation's farmers are permitted to sell their produce freely, at price consumers are willing to pay, they will, under the law of supply and demand, end up producing roughly what can be consumed in national and world markets. And if farmers, in general, find they are not getting high enough prices for their produce, some of them will move into other kinds of economic activity. The result will be reduced agricultural production and higher incomes for those who remain on the farms. If, however, the government interferes with this natural economic process, and pegs prices higher than the consumer is willing to pay, the result will be, in Hamilton's phrase, "troublesome." The nation will pay exorbitant prices for work that is not needed and for produce that cannot be consumed.
In recent years, the government has sought to alleviate the problem of over-production by the soil bank and acreage retirement programs. Actually, these programs are simply a modern version of the hog-killing and potato-burning schemes promoted by Henry Wallace during the New Deal. And they have been no more successful in reducing surpluses than their predecessors. But there is also a positive evil in these programs: in effect, they reward people
for not producing.
For a nation that is expressing great concern over its "economic growth," I cannot conceive of a more absurd and self-defeating policy than one which subsidizes non-production.
The problem of surpluses will not be solved until we recognize that technological progress and other factors have made it possible for the needs of America, and those of accessible world markets, to be satisfied by a far fewer number of farmers than now till the soil. I cannot believe that any serious student of the farm problems fails to appreciate this fact. What has been lacking is not an understanding of a problem that is really quite impossible not to understand, but the political courage to do something about it.
Doing something about it means—and there can be no equivocation here—
prompt and final termination of the farm subsidy program.
The only way to persuade farmers to enter other fields of endeavor is to stop paying inefficient farmers for produce that cannot be sold at free market prices. Is this a cruel solution? Is it heartless to permit the natural laws of economics to determine how many farmers there shall be in the same way that those laws determine how many bankers, or druggists, or watchmakers there shall be? It was never considered so before the subsidy program began. Let us remember that the movement
from
the farm
to
other fields of endeavor has been proceeding in this country since its beginning—and with good effects, not ill.
I cannot believe that this course will lose politicians as many votes as some of them seem to fear. Most farmers want to stand on their own feet. They are prepared to take their chances in the free market. They have a more intimate knowledge than most of us of the consequences of unlimited government power, and so, it would seem, a greater interest than most in returning agriculture to freedom and economic sanity.
C H A P T E R S I X
Freedom For Labor
I
F
I had to select the vote
I regard as the most important of my Senate career it would be the one I cast on the Kennedy-Ervin "Labor Reform" Bill of 1959. The Senate passed the measure 90-1; the dissenting vote was mine. The measure had been advertised as a cure-all for the evils uncovered by the McClellan Committee investigation. I opposed it because I felt certain that legislation which pretended to respond to the popular demand for safeguards against union power, but actually did not do so, would preclude the possibility of meaningful legislation for some time to come.
That opinion was vindicated later on. The House of Representatives rejected Kennedy-Ervin, and substituted in its place a much better measure, the Landrum-Griffin bill. The ensuing conference between representatives of the two houses made only minor changes in the House version; I would guess that 90% of the original Landrum-Griffin bill survived in the conferees' report. The Senate adopted the report with only two dissenting votes—proof to me that my initial protest had been wise.
But the protest still holds: though the Landrum-Griffin Bill was an improvement over the Kennedy measure, Congress has still to come to grips with the real evil in the Labor field. Graft and corruption are symptoms of the illness that besets the labor movement, not the cause of it.
The cause is the enormous economic and political power now concentrated in the hands of union leaders.
Such power hurts the nation's economy by forcing on employers contract terms that encourage inefficiency, lower production and high prices—all of which result in a lower standard of living for the American people.
It corrupts the nation's political life by exerting undue influence on the selection of public officials.
It gravely compromises the freedom of millions of individual workers who are able to register a dissent against the practice of union leaders only at the risk of losing their jobs.
All of us have heard the charge that to thus criticize the power of Big Labor is to be anti-labor and anti-union. This is an argument that serves the interest of union leaders, but it does not usually fit the facts, and it certainly does not do justice to my views. I believe that unionism, kept within its proper and natural bounds, accomplishes a positive good for the country. Unions
can
be an instrument for achieving economic justice for the working man. Moreover, they are an alternative to, and thus discourage State Socialism. Most important of all, they are an expression of freedom. Trade unions, properly conceived, are an expression of man's inalienable right to associate with other men for the achievement of legitimate objectives.
The natural function of a trade union and the one for which it was historically conceived is to represent those employees who want collective representation in bargaining with their employers over terms of employment.
But note that this function is perverted the moment a union claims the right to represent employees who do not want representation, or conducts activities that have nothing to do with terms of employment (e.g. political activities), or tries to deal with an industry as a whole instead of with individual employers.
As America turned increasingly, in the latter half of the nineteenth century, from an agricultural nation into an industrial one, and as the size of business enterprises expanded, individual wage earners found themselves at a distinct disadvantage in dealing with their employers over terms of employment. The economic power of the large enterprises, as compared with that of the individual employee, was such that wages and conditions of employment were pretty much what the employer decided they would be. Under these conditions, as a means of increasing their economic power, many employees chose to band together and create a common agent for negotiating with their employers.
As time went on, we found that the working man's right to bargain through a collective agent needed legal protection; accordingly Congress enacted laws—notably certain provisions of the Clayton Act, the Norris LaGuardia Act and the Wagner Act—to make sure that employees would be able to bargain collectively.
This is not the place to examine those laws in detail. It is clear, however, that they have
over
-accomplished their purpose. Thanks to some unwise provisions and to the absence of others that should have been included, the delicate balance of power we sought to achieve between labor and management has shifted, in avalanche proportions, to labor's advantage. Or, more correctly to the advantage of union leaders. This mammoth concentration of power in the hands of a few men is, I repeat, a grave threat to the nation's economic stability, and to the nation's political processes. More important, it has taken from the individual wage earner a large portion of his freedom.
The time has come, not to abolish unions or deprive them of deserved gains; but to redress the balance—to restore unions to their proper role in a free society.
We have seen that unions perform their natural function when three conditions are observed: association with the union is voluntary; the union confines its activities to collective bargaining; the bargaining is conducted with the employer of the workers concerned. Let us briefly treat with each of these conditions, noting the extent to which they are violated today, and the remedial action we are called upon to take.
Freedom of Association.
Here the argument is so plain that I wonder why elaboration is necessary. What could be more fundamental than the freedom to associate with other men, or not to associate, as each man's conscience and reason dictates? Yet compulsory unionism is the rule rather than the exception today in the ranks of organized labor. Millions of laboring men are required to join the union that is the recognized bargaining agent at the place they work. Union shop agreements deny to these laboring men the right to decide for themselves what union they will join, or indeed, whether they will join at all. The exercise of freedom for many of these citizens, means the loss of their jobs.
Here is the kind of thing that can happen as the result of compulsory unionism. X, a family man in Pennsylvania had been a union member in good standing for over twenty years. When the United Electrical Workers became the recognized bargaining agent at his plant, he refused to join on the grounds the UEW was Communist dominated—a judgment that had been made by the CIO itself when it expelled the UEW in 1950. The result, since his employer had a union shop agreement with the UEW, was that X lost his job.