possible uses of only one resource,nchanging tastes, preferences, and technologynwould all work to make our listnobsolete in short order.nHow, then, does an economy run? Itnruns—and runs efficiently—only to thenextent that a market system is used tonallocate resources. No government official,nregardless of position or power,ncould efficiently allocate just one resource.nNo single businessman couldnmake all the decisions necessary to runneven a small business. In fact, as LeonardnRead pointed out years ago, no onenperson knows how to make even a simplenwooden pencil. The only way that pencils—andncomputers, cars, skyscrapers,nand oil refineries—get produced isnthrough the market system. Only thenmarket, with its prices directing resourcenuse, can economize on thenknowledge needed to run an economy.nIn The Government Against thenEconomy, George Reisman has set outnto outline the basic operation of a marketnsystem. In 60 pages, he explains how thenprice system utilizes the knowledge ofnmillions of people to allocate resources.nThe rest of the volume is taken up withnexplanations of how virtually every actionnof the government simply frustratesnthe smooth operation of the market. Itnis not difficult, after reading this shortnbook, to conclude with Reisman thatn”a government which imposes pricencontrols is in the process of destroyingnthe economic system of its own country.”nXveisman pays special attention tonthe various energy crunches which havenbeen induced by government fiddlingnwith pricing, profits, distribution, andnthe like in the energy industries. Mostnof this is well known to professionalneconomists but seems to have escapednthe attention of the citizenry at largenand even of the business community.nNo one should be surprised that the U.S.nincreases its oil imports when the governmentnslaps a price ceiling on oilnproduced domestically. There should benequally little astonishment that naturalngas supplies declined where the pricenwas controlled at f 1.42 (per mcf) whilenthe market price was f2.00. This typenof information, supported with Reisman’sncareful logic, apparently needsnto be conveyed to the lay public. Reisman’snwork is a good means toward thatnend, although the writing style tendsnto be academic and there is—in thenAustrian tradition—a dearth of the typenof empirical evidence that tends to convincena skeptical audience. I might faultnReisman for only a couple of things.nFirst, he uses several pages to castigatenmedia reporting on the subject of oilncompany profits. While the reportingnhas indeed been flawed, it is doubtfulnthat it has been “dishonest,” as Reismannlabels it. I suspect the news reportersnof all the media are simply innocent ofnthe analysis of the energy situation. Itnwould be easy to read into Reisman’sndiscussion that the press has conspirednto not report the “facts.” But we donhave a free and competitive press, andnconspiracies are much less probablenthan simple widespread ignorance.nSecond, Reisman calls for a restorationnof the gold standard for our monetarynsystem. He does not explain hisnconception of a gold standard, but toncall for restoration of the gold standardnimplies the type of monetary system innexistence prior to 1933. That system,nhowever, was simply one in which thengovernment imposed a price control onngold! By establishing a fixed price forngold, the government short-circuitednthe market. Such a system imposed anbit more discipline on the monetarynauthorities than now exists; but, asnhistory has shown, the government willnquickly sever any tie between “officialnmoney” and gold whenever people startnbringing dollars to the Treasury in exchangenfor gold. The restoration of thatntype of gold standard would be no solutionnat all. It would be more encouragingnif Reisman would let the market takencare of the monetary needs of the economy.nThe past decade clearly demonstratesnthat the government (the FederalnReserve System, in this case) is incapa­nnnble of satisfactorily meeting those needs.nFor the purpose that Reisman had innwriting The Government Against thenEconomy, he succeeds. If an interestednperson would take two or three eveningsnand work carefully through this book,nhe would unquestionably learn somethingnof both interest and importance.nThis is, in short, a good, concentratedncourse in economics for the intelligentnnoneconomist. One should come to annappreciation of what economic problemsnreally are and how the market systemnsolves them. It is perhaps asking toonmuch for a book of this nature to dealncompletely with the total concept ofnthe economics of a free society. It isnone thing to point out, for example,nhow price controls brought on the energyncrisis. It is quite another thing to pointnout that the oil companies climbed innbed with the government decades ago,nand that Exxon et al. should not be surprisednto find that the hand that oncenfed them has now been turned againstnthem. In fact, there may be some reasonnto believe that the larger oil companiesnfavor the government’s interventionnbecause the price controls on domesticncrude oil actually have a much largernimpact on the smaller oil companies.nAnother area deserving some treatmentnis the foreign policy of a free society.nIn the waning part of 1979 we saw thenU.S. government forbid the purchasenof oil from Iran. Reisman correctly concludesnthat socialism necessarily breedsnfear, mistrust, and hostility within annation. Is not the same conclusion validnwhen governments intervene in economicntrade among nations.”n1 o return to the main theme of thisnwork—that one of the worst things angovernment can do against the economynis to control prices—it is a message thatnindeed needs to be conveyed. As coincidencenwould have it, I received a copynof the National Council of the Churchesnof Christ Policy Statement regardingnenergy. While admirably filled with sincerenstatements of Christian concern,nthis statement comes out strongly innHMMMHHHHHlS?nJanuary/February 1980n