75 



aion in a situation whcro regulation of forest practices is already 

 among tho most stringent In the world. 



Tlio political impllcatlonB of more rostricUvo regulation of forest 

 practices are well-illuatrntod by some recent comments made In a 

 broader political context by economist Friedman, whoeo poeltion 

 on these matters is well-kiiown and which has been thoroughly 

 vindicated by the events in tho "Soviet block" and elsewhere 

 around tho world. Writing for theUniversity of Colorado, ho said: 



"Conventional wisdom these days can bo summarized in the 

 form of a syllogism. 



Major premise: Socialism is a failure. Even lifelong Commu> 

 nists now accept this proposition. ... 



Minor premise: Capitalism Is a success. Economies that have 

 used capitalism -free private markets — as their principal 

 moans of organizing economic activity have proved capable of 

 combining widely shared prosperity and a high measure of 

 human freedom. A private market system has proved to be a 

 necessary though not a sufficient condition for prosperity and 

 freedom. . 



Conclusion: The U. S. needs more socialism. An obvious 

 non Boquitur, yet there is no denying that many apparently 

 reasonable people... accept all three propositions simulta* 

 neously." Immediato economic Impacts of current policy 

 directions fare important, but they may not be as important 

 as the other social costs of tho comprehensive change In 

 the system of political economy inherent in recent propos- 

 als for quantum changes in forest policy directed toward 

 undermining free markets. Yf6 also have to face the irony 

 that the National Forest system which was originally 

 created to provide a reserve supply of wood needed 

 because of allegations that the market would fail to do 

 so, will in ail likelihood (given recent trends) bo totally 

 unavailable for wood production. 



But wliilo the locking up of tho National Foreats 

 against the production of timber for which they v/cre 

 intended will oblige dependence on the private sector 

 for the supply of forest products, public policy will 

 have so crippled private forestry that it may not be 

 able to perform effectively. Such is tho apparent 

 destiny of tho forest products industry in California 

 in the Nineties, barring a change in the current 

 political landscape. 



