Real knowledge does not come easily; it is achieved through study, work, experience, observation, and reflection. It cannot be acquired without the application of effort, and although many people wish to possess knowledge, few are willing to pay the price.

Wisdom is the right use of knowledge. He who knows may not be wise; he may know a great deal and be a fool nevertheless. It may even be said that there is no fool so great as a knowing fool.

The wise man is not merely knowledgeable; he is also just, upright, and truthful. He is honorable and fair in his dealings with his fellowmen, upright before God. He acts equally in public and private; he moves with fortitude, especially in the face of danger. In Judeo-Christian terms, he shuns the seven deadly sins: gluttony, pride, lust, envy, anger, covetousness, and sloth.

There is little public knowledge and even less wisdom in economic matters. Economic theory seeking to comprehend human action does not analyze ultimate ends; it does not advise man on his objectives, not on wealth or poverty, war or peace, life or death. Theory never judges these ends, but accepts them without prejudice. It deals only with the suitability of the means and policies adopted to attain these ends. If prosperity is the objective, economic theorists can provide the blueprint. If poverty is the goal, they can point the way. In short, they make no value judgments but deal exclusively with the effectiveness of means and measures.

American society is bitterly divided on some economic issues, giving rise to various political parties and numerous pressure groups. The discussions and debates often are fervent and fiery, especially in an election year when candidates for high office vie for public favor and votes. And yet, despite the raging altercations, most Americans and their representatives in the U.S. Congress usually agree on the ends—they merely differ on the policies to be chosen.

They all want economic prosperity and full employment, and only differ on the ways and means of realization. They differ on economics.

In order to achieve full employment, some candidates for political office would increase Federal spending on job training; others would spend more on public works and the infrastructure; yet others would boost the payroll tax financing unemployment benefits. A few lonely voices even call for reductions in government spending and elimination of government intervention in the labor markets.

In order to improve the health care of all Americans, some politicians would expand the Medicare and Medicaid systems which compel taxpayers to provide medical services for the elderly and the poor; they would grant health insurance coverage to another 32 million Americans who chose to be without or cannot afford it. Others would force employers to provide the coverage, and some would nationalize health care services, making every worker in the field a civil servant, similar to the systems in Canada and Great Britain. A few lonely voices call for the early withdrawal of all politicians and officials from this vital industry.

Even the communists, socialists, and fascists of the world frequently emphasize their complete agreement with common economic goals: prosperity and rising incomes for all, but they differ radically from market economists in the ways and means of realization. They would confiscate all tools of production and place them in the hands of party politicians and government officials; they would replace the contract system of the market order with a comprehensive command and coercion system and prohibit free pricing and voluntary exchanges. They would do all these things, and many others, in order to achieve economic prosperity for all. Millions of communists, socialists, and fascists the world over are dreaming of economic bliss as soon as they come to power. Economists everywhere summarily reject such illusions.

Economic wisdom goes beyond economic knowledge; it builds on an ethical standard. It distinguishes between right and wrong and asserts what man ought to do. Economic wisdom warns against government policies which seize income and wealth from productive people and confer entitlements on others. To pursue the ideal of an equal distribution of the goods of this world is to build on envy and covetousness which jeopardize social harmony and economic peace. In the final analysis, it is highly immoral because it proposes to steal by political vote.

Wisdom affirms that we cannot build character and courage by depriving man of his self-reliance. We cannot help him permanently by doing for him what he should do for himself.

We cannot progress individually or nationally by spending more than we are earning. Thrift is an essential condition of all economic progress.

Wisdom looks askance at the inclination of the present generation to burden future generations with trillion- dollar debt. It abhors any attempt at stealing from children.

To make the world peaceful and happy, we must first put our own house in order. Wisdom begins at home.