Without compromise man is confronted either with anarchy or government force. Men being unequal, their potential economic contributions are unequal and there must, therefore, be inequality of reward. Responsibility without authority generates timidity, indecision, carelessness, arrogance, favoritism, and potentially disastrous decisions. Responsibility with authority generates balanced judgment, respect for the opinions of others, justice in personal decisions, and prudent planning. In a modern economy the results of long-range planning frequently depend upon the future value of money.
Unpredictable money is a major obstacle to economic progress.
Economic planning in a modern society requires basing one s actions on actions that other people have contracted to take. Because honor among men is still far from perfect there must be legal enforcement of contracts when violations occur. The natural desire for personal possessions is, aside from hunger and privation, man s greatest incentive to do his best work. Any society whose laws do not release the power of this incentive will never get maximum productivity from its members. Tools being the only one of these factors that man has the power to increase, his progress in economic well being is directly dependent on setting aside a certain portion of earnings to replace worn out or obsolete tools and to fund research for new and improved tools.