Every institution is a racket. Whether we are considering political, religious, economic, ideological, or educational institutions, each is a formal,… - Butler D. Shaffer

The belief that order must be intentionally generated and imposed upon society by institutional authorities continues to prevail. This centrally-directed model is premised upon what F.A. Hayek called ‘the fatal conceit,’ namely, the proposition ‘that man is able to shape the world according to his wishes,’ or what David Ehrenfeld labeled ‘the arrogance of humanism.’ That such practices have usually failed to produce their anticipated results has generally led not to a questioning of the model itself, but to the conclusion that failed policies have suffered only from inadequate leadership, or a lack of sufficient information, or a failure to better articulate rules. Once such deficiencies have been remedied, it has been supposed, new programs can be implemented which, reflective of this mechanistic outlook, will permit government officials to ‘fine tune’ or ‘jump start’ the economy, or ‘grow’ jobs, or produce a ‘quick fix’ for the ailing government school system.

Because we fear the responsibility for our actions, we have allowed ourselves to develop the mentality of slaves. Contrary to the stirring sentiments of the Declaration of Independence, we now pledge ‘our Lives, our Fortunes and our sacred Honor’ not to one another for our mutual protection, but to the state, whose actions continue to exploit, despoil, and destroy us.

In such a volatile climate, change became one of the few constants upon which businessmen could rely. Economic survival often depended upon innovative resiliency; firms with higher unit costs and prices had to either be- come more efficient or drop out of the race. Instability and turnover were continuing threats with which firms had to contend. The severity of the competitive struggle was best reflected in the automobile industry: of the 181 firms manufacturing cars at some time during the years 1903 to 1926, 83 remained in business as of 1922, while 20 managed to survive through 1938.