April2001 BANKNOTESisaquarterlynewsletterpublishedbyInfiniteBankingConcepts R.NelsonNash,Editor rnnash@mindspring.

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AHHH,SPRINGISINTHEAIR! Exceptforthethreatofseverestormsatthistimeofyear, itisagorgeousseasoninAlabama.Thesenseofrenewalthatcomeswithallthetreesandshrubs comingaliveagainrefreshesthesoul!Ihopethatitisasbeautifulwhereyouliveandthatit producesthesamereactioninyourlife. WELCOMEtomembershipintheInfiniteBankingConceptthinktanktoCurtPattersonof CedarFalls,IA. CurtfirstattendedanIBCSeminarinJanuary,200inDesMoines,IAandhas become a great supporter of the message and has bought a lot of books to spread the word. Thanks,Curt! THERE IS A NEW BOOK that I highly recommend. It is The Prayer of Jabez, by Bruce Wilkinson.Itisasmallbook butwhatatremendousmessage! WalterRush firstbroughtitto th my attention and my soninlaw, Jake Mathews, presented me with a copy of it on my 70 birthday(March15). AtthatsametimeAlbertoUranga,ofKetchum,IDarrangedforhisfriends,JimLoveofTwin Falls, ID,Bobby Matteiof Shreveport, LA, andAL Potts of Tallahassee, FL to join him is a seminar for the group here in Birmingham. We had a great time together and I believe some lightscame onalthoughthey hadallread mybook,BECOMING YOUROWNBANKER TheInfiniteBankingConcept. BOOK SALES are brisk over 4,000 copies have been sold and I still havent done any advertising.Ihadtoplaceanorderforthethirdprintingafewdaysago.It isalltheresult of wordofmouthbyyoufolks.ThankyouallIappreciateyoureffortsverymuch!Someofyou knowwhatImdoingwiththeproceedsofthesaleofthebook,buttoshareitwithyouallfirst Ihavetopaytheprintingcosts,andtheextraincometaxesthatwillresultfromthesales.Halfof theremainderwillgotopoliciesthatIcreatedonmytengrandchildrenattheirbirthtooffsetthe devastating effects ofSocialSecurity that willcometothat generation.The other half willbe split between the Ludwig von Mises Institute at Auburn, AL and Christian Foreign Missions. And so, I made my first medical mission trip in early March to Puerto Ayacucho, Venezuela, deepintotheinteriorofthecountry,locatedontheOrinicoRiver.Afantasticexperience! In late February I went to Albuquerque to conduct a seminar for the STEVE CALKINS AGENCYandattendtheirawardsbanquet.Mywifeaccompaniedmeandwefellinlovewith

thatbunchoffolks.WhatagreatgroupofagentsStevehasputtogether!Ilookforwardtogoing backthereagain. SayonaraMSAsbyDaleSteinreich Beside signing appropriations bills containing $20 billion in pork before leaving town last week, the 106th lameduck Republican Congress left another nasty surprise for individuals wanting to save money on their health care expenses: it failed to renew the pilot program for medical savingsaccounts(MSAs). MSAswereintroducedintheU.S.fouryearsagointheHealthInsurance Portability and Accountability Act of 1996. The program expires on December 31, 2000. Although current account holders can continue to have their accounts beyond the program's NewYear'sEve expiration, individualswantingtoopennewaccountswillnotgetthem.Infact,many insurancecompanies havebeenrefusingtoopennewaccountssinceDecember1giventhatthe futureofthepilotprogramwasuncertain.TounderstandtheallegedvalueoftheMSA,onehasto considerthehistoryofmedicalinsuranceintheU.S.throughoutthelast60years. HealthInsurance:SingingtheBlues BeforeWorldWarII,medicalinsurance inthe U.S.was muchdifferent thanit is today.It was popularly known as "hospital insurance" this reflects the fact that it was, unlike today, true insurance.Trueinsuranceisbasedonstatisticalprobabilitywheretheoccurrenceoftheinsured event is in doubt. The policyholder, facing risk under uncertainty, pays insurance premiums to minimize the potential losses from unfavorable future events. Hospital insurance conformed to thisactuarilysoundvision.Headsoffamilies,concernedaboutfallingpreytosicknessorwork placeinjury,couldpurchaseinsurancepoliciestohavegenuinefinancialcontingenciescovered. During World War II, this actuarily sound system was transformed. Wage and price controls institutedbythefederal government duringthe warpreventedlarge employers fromcompeting forlaborbasedonwagerates,sotheycompetedbasedonthequalityoffringebenefits.Themost effective fringe benefit for luring labor to large employers was no longer wages but generous hospitalinsurancepolicies.Thedecisionbythefederalgovernmenttoallowtheselargeemployer benefitstobeobtainedtaxfreewhileeffectivelytaxingplanspurchasedbysmallbusinessesand the selfemployed created a system where medical insurance became attached to employment. Thus the relative price of health insurance became not only perversely tied to employment but alsotothesize ofaworker's employer:theprice of health insurancefor manysmallandretail businessesbecametoohigh. Afterthewarendedinsuranceitselfwasredefined.BlueCross,firstfoundedin1929asahospital insuranceprogramforschoolteachers,haditssymboladoptedbyacommissionoftheAmerican HospitalAssociation(AHA)in1939.AHAadoptedthesymbolasanendorsement ofinsurance plans that met certain standards. Also in 1939, the first Blue Shield plan was created in California.BlueShieldwasahospitalinsuranceplancreatedbyphysicians. ThetwinBlues,43yearsbeforetheirmergerin1982,immediatelystartedsecuringgovernment enforced competitiveadvantages to other insuranceprograms at thestate level.Settinguptheir "own"formofinsurancealloweddoctorsandhospitalsfreedomfromdealingwithinsurerswho didn'tadoptBluestypepractices.

Bluestypepracticeswereaperversionoftheconceptofinsuranceinfourways: 1.Hospitals werepaid onacostplus basis.Physicians werecompensatedno matterhow many dubioustestsandprocedurestheyperformedonpatients.Theproperroleofinsurance,according tothehospitalandphysicianrunBlues,wastopaythebillregardlessofsize,withnoquestions everasked. 2. All services were insured, even routine checkups and tests. This spelled the end of hospital insurance.Whatreplacedit("healthinsurance")wasnotinsuranceatallbutprepaidconsumption thatencouragedoveruseofservices.Theendresultissomewhatanalogoustoanallyoucaneat fivestarbuffet at aRitzCarletonHotelthat'sbeenunderpricedat $1.99perperson.Whenthe buffetisrestockedthepricejumpstosay,$100perperson. 3.Insurancepremiumsbased on "communityrating." The word "community" meant that every person in a specific geographic area regardless of age, habits, occupation, race, or sex was chargedthesameprice.Forexample,theaverage60yearoldincurs4timesthemedicalexpense oftheaverage25yearold,butundercommunityratingbotharechargedthesameprice,whichis anotherwayofsayingthatyoungpeopleareoverchargedandoldpeopleundercharged. 4. Payasyougo system. Unlike sound hospital insurance, which placed premiums in growing reservestopayclaims,"healthinsurance"createdbytheBluescollectspremiumsthatonlycover theexpectedcoststhatwillbeincurredbypolicyholdersoverthefollowingyear.Ifalargegroup ofpolicyholdersbecomesilloverthecourseofseveralyears,thepremiumsofallpolicyholders havetoberaisedtocovertheincreaseincosts. These four practices were also incorporated into the federal Medicare and Medicaid programs whentheywerecreatedinthemid1960s.Theneteffectwasnotonlyanabolitionoftruemedical insurance but also an abolition of price competition and close costcontainment oversight by thirdpartypayers. Theonlyareawherepricecompetitionsurvivedwascosmeticsurgery,whichis notpaidforby any formof health insurance.The oldsystemcanstillbeseen in marketsforcosmeticsurgery wherepricesareprovidedupfronttopatientsinadvance,theycanbebargaineddownbetween competing suppliers, and they remain relatively low (close to cost of production) and stable. Since the early 1970s, community rating and cost plus collapsed. Young people (either self employed,attendingcollege,orworkinginuninsured,unskilledjobs)whowereoverchargedby communityratingrefusedtobuyinsuranceandwerenottheworseoffsincetheyweregenerally morehealthyasagroup. Costplusreimbursementcollapsedwhenlargecorporations,whichhadasmuchpoliticalcloutas theBlues,createdandmanagedtheirownhealthcareplansandpaidhospitalsfixedchargesfor services, bargaining down prices wherever possible. The practices of payasyougo reimbursementandinsuranceofroutineservicesbothcontinueandhaveplayedanimportantrole incontinuallydrivingupthepricesofmedicalservicesoverthepast55years. CostContainment:MedicalSavingsAccounts Resurrecting at least part of the pre"health insurance" healthcare system was the goal of the creatorsofmedicalsavingsaccounts(MSAs).MSAsareindividualinvestmentaccountsinitially capitalized through savings created by choosing higher deductibles on current policies and

divertingthesavingsfromthenewlowerpremiumstotheMSA.Overtimethereservebuildsup andanyroutineexpensesincurredarepaidfromit.AsthefundsbuildupintheMSA,thereserve canbeusedformedicalexpensesafterretirementorevenasasourceofadditionalincome. WhatinparticularMSAsseektocreateisadefactoeliminationofinsuranceofroutinepractices andprocedures.This inturn wouldalso eliminatepayasyougopractices overthe longrunas the old hospital insurance system returned under its current name, catastrophic care. Although theywoulddonothingtoeliminaterestrictionsonthesupplyofdoctorsandhospitalsatthestate andfederallevels(andhencewouldhavenoeffectonthesupplysideofmedicalmarkets),MSAs couldpotentiallyreducedemandandreducetherateofgrowthinmedicalprices. As previously mentioned, MSAs were introduced in the U.S. in a pilot program in the Health Insurance Portability and Accountability Act of 1996. To qualify for an MSA in the U.S., an individual must have been an employee of a firm with an average of 50 or fewer employees duringeitherofthelast2calendaryears.Theemployeemustalsohaveahighdeductiblehealth plan(HDHP).AnHDHP hashigherannualdeductiblesthantypicalhealthplansandmaximum limitsonannualoutofpocketexpenses.Theselimitsdependonthetypeofcoveragesoughtby theworker. If the aforementioned criteria are met, the MSA is set up through a trustee such as a bank, insurance company, or other IRSapproved institution. Employers can make taxfree contributions to the MSA or the employee can make contributions that are tax deductible. Employers and employees are not allowed to both contribute in the same year. There is also a limitonthesizeofthecontributions.TaxfreewithdrawalsfromtheMSAscanbemadeforonly specified expenses. Withdrawals for nonmedical reasons are subject to taxation. The account holder can continue to hold the MSA if he/she changes employers only if the new employer continues to meet the criteria of the MSA program. Otherwise, the worker loses the MSA. ContributionstotheMSAarelimitedandeitherbasedontheannualHDHPdeductibleorworker earnings. AprogramwithsuchheavyrestrictionsattachedtoithasbeenoflittlevalueinreturningtheU.S. health care sector to relatively low and stable prices. Indeed, the program at the outset was doomedtofailinreachingthisgoalsincethenumberofMSAaccountswassubjecttoaquantity ceilingof750,000.Withthislimit,only60insurersdecidedtoofferMSAs. Theprohibitionagainst employers and employees sharingthe costoftheprogram madeMSAs too costly for many small businesses. The difference in savings between traditional and MSA plans was unimpressive. The city of Jersey City, New Jersey entered into an MSA plan for its employees.Thetaxpayerpricefortheoldtraditionalpolicieswas$6,776perfamilycomparedto $6,505fortheMSAs. WiththeDecember31,2000expirationofthepilotprogram,thefutureofMSAs intheU.S.is verymuchindoubt.TheitemsatthetopofthecurrentBushagendaseemtobetheeliminationof theestatetaxandthemarriagepenalty(withatleasthalfofthepromised$1.3trillion10yeartax reductioncertaintobebargainedaway).ButevenarenewalofthecurrentMSAprogramwould beterriblyinsufficientinreformingthehealthcaresystem. The current pilot program has all the fingerprints of the insurance industry. Requiring the purchaseofhighdeductiblehealthplansguaranteedthattheindustrywouldhavepoliciestosell underthepilotprogram.Enrollment,contribution,andwithdrawalrestrictions morelenientthan

the current program would certainly be opposed by the Blues given that a much freer MSA programwouldposeathreattotheirbusiness. Indeed, what the failed MSA experiment has shown is that, like school vouchers, MSAs are a deadendinsteadofaneverwideningroadtohealthfreedom.Afirststeptowardgenuinehealth freedom would be an elimination of all federal restrictions on supply and demand factors in medicalmarkets.Thismeansnomoremillionsofdollarsinfederalsubsidiestohospitalstotrain fewer doctors, and the abolition of Medicare and Medicaid. Medicare and Medicaid have only worsenedtheproblemsinthehealthcaresectorbyadoptingBluestypepractices whichhavein turnencouragedanoverconsumptionofhealthcareservicesamongthepoorandelderly. Beyondthispointfreemarkethealthcarereformbecomesatrickymattersincesomeofthemost oppressive restrictions (physician and hospital licensure, restrictions on midwives and pharmacists) have been enacted at the state level. It would be a violation of states' rights to advocatethatthefederalgovernmentoverridetheserestrictions. Here's where public awareness has to play a part. Americans must be made to understand that restricting labor supply in medical markets so that general practitioners can earn 3 times what they would earn in a free market has been a disaster. The average new physician, if he's still accepting new patients, is not Rolls Royce in quality but a tired, hurried man who can barely containhisirritationathavingtolistentoyoursymptomsbeforescribblingaprescriptiononhis padandrunningofftohisnextpatient. Americansmustalsounderstandthatasystemthatplacestheaveragehospitalhalfacountyaway andmakesyouwaitafortnightforitsserviceisnotaboutqualitybutaboutextractingmonopoly levelprofitsfrompatientsandtaxpayers.Expectingthepublictobecomebetterinformedseems likealottohopefor,evennaive.However,someofthemostliberatingdevelopmentsinhealth freedom will not occur in the absence of this process. The public doesn't receive tremendous potential benefits now because it doesn't understand them, and having traded freedom for an illusorysecurity,doesn'tdeservethem.Thegreattragedyisthatanignorantpublicdragstherest ofusdownwithit. DaleSteireich,PhD, is aresearchassociateoftheMises Institutewho writes frequentlyfor Mises.organdAgainstthecrowd.com. Dr.Steireichs articleabove is the mostcomprehensiveandaccurate explanation of how health insurancecame into beingthat I haveseento dateand Ithought it valuableto share with you. Hadlife insurancecompanies understoodtheInfinite Banking Concept andtaught it to the generalpublic theideaofhealthinsurancewouldneverhaveappeared!Peoplewouldhave paid large sums of life insurance premiums to accumulate large cash values and would have boughtahighdeductibleLifetimeMajorMedicalPolicyforcatastrophicillnessesandreliedon cashvaluesinthelifeinsurancepoliciestosolvetheneedsforlessersumsofmedicalexpanses. They now pay meager premiums for life insurance and complain about it yet pay huge premiumsforhealthinsurance andthinknothingofit!! But,no,thegeneralpublicswallowedthesolutionoutlinedbyDr.Steireichaboveandsowehave a ridiculous situation on our hands today. Our youngest child was born in 1960 at Johnston CountyHospitalinSmithfield,NC.Atthattimethehospitalroomratewas equaltothatofan average motel room. Now, the average hospital room rate is six to eight times larger than an

averagemotelroom.Why?Because,wheneveryouenterathirdpartypayerintotheequation you can predict with absolute certainty that the prices will inflate dramatically. It is simply becausetheabrasionofthemarketplacehasbeenremoved. LIES,LIES,LIES!! byR.NelsonNash Lately,ithasweighedheavilyonmymindhowdangerousitistobuildyourlifeonlies.Itwill neverwork!Andthelongeryoulettheliesprevailtheworsethesituationbecomes.Youcan gettothepointwhereyoucantevenidentifyalie!ThatphenomenonisrampantinAmerica. Several months ago whileI was riding downtheInterstateHighwayasemitrailertruckpassed me,andthentransitionedovertotherighthandlaneinfrontofme.Werodealongintandemfor anumberofmiles.Onthebackofthetrailerwasasignthatread,Thistruckpaid$8,423.00in taxeslastyear.Afterawhileitfinallydawnedonmethatthisisalie!Thattruckdidntpayany taxes,nordidthecompanythatownedit.Thecompanyscustomerspaid$8,423.00intaxeslast yearforthefreightthatithauledforthem.Thecompanywassimplyperformingthefunctionof taxcollectorintheformofhigherfreightratesthanifthetaxhadnotbeenimposed.Pleasedont trytotellmethatitwouldjustresultinwindfallprofitsforthetruckingcompany!Competition betweentruckingcompaniesmakessureofthat.Ifthatwerenotso,thentruckerswouldcharge justanypricethattheywished.Ifyouareinthetruckingbusiness,justtryitandsee. Thecompanygotataxdeductionforthetaxesthatitcollectedintheformofhigherfreightrates buttheconsumerdidntgetanysuchtreatment.Allhegottodowaspayhigherpricesforthe goodsthathewantedtoconsume. Theconsumeristheonealltaxes! BackinthedayswhenGeorgeWallacewasGovernorofAlabamaIrememberhimsayingduring a reelection speech, Im going to reduce the taxes on all you little folks and Im going to increasethetaxesonallthosebigcorporations!Lies,lies,lies!!Corporationsdontpaytaxes theycollecttaxesfromtheircustomersintheformofhigherpricesthantheconsumerwouldhave topayotherwise. A number of years ago I was trying to explain to a client and his wife (she ran the office, the payroll,etc.)thatSocialSecurityisahugefraud thatthereisnosuchthingastheemployee pays half of the tax and the employer pays the other half. The employee pays it all! Her responsewas,Oh,no!Wepayhalfofthetaxalways! This is all the result of that scalawag, FDR,whenSocialSecuritywasfirstadoptedinthelate1930s.Asitwasthenbeingdiscussed,it wasfirstproposedtobenoncontributory,i.e.,theemployerwastopayitall.But,thenthe geniusofFDRappearedandhesaid,No,letsmakeitcontributorytheemployerwillpay only halfandthe employee willpaythe other half. That waythe employee will think it is his ownmoney.Now,byGod,letsseeanyonetrytowreckthisplanofSocialSecurity!Helocked theirmindsonthatthoughtandthevastmajorityofpeopleintheU.S.havenevergottenoverit. Furthermore,Ireallydontthinktheyeverwill. As I have said many times in the past when it comes to things economic (or financial) few peopleunderstandwhattheplayisabout(Shakespeareisreputedtosaythatalltheworld isa stageandallthepeopleareactorsthereon).Butwhatisworsetheycantkeepthecharacters in the play straight! It appears to me that this is because they have an incredible ability to swallow lies. Andtheprimary means ofperpetuatingthese lies is thethingcalled government schools.Mostpeoplerefertothemas publicschoolsbut Icallthembytheirpropername government schools. If you have a hard time accepting that fact, just ask any teacher or

administrator to show you their paycheck and see on whose account it is drawn. It is a government!Learnfromthemandyou willbeginto think likethem.Icant thinkofaworse thingtodotoafellowhumanbeingthatcripplehismind!Wehavecrippledmindsateveryturn inAmericatoday. Discussingthisfactrecentlywithaclientthatisinthecontractingbusiness,hehadthistoaddto theunderstanding:WhenaMunicipalityletsacontractonaprojectandthenattemptstoplacea penaltyonthecontractorifhedoesnotfinishby,say90days,yetthecontractorisprettysurethat itwilltake120days,thenthecontractorissimplygoingtoaddafudgefactortohisbidtocover theadditionalcost.Allcontractorsthatarebiddingonthesameproject(andwhofeelthesame wayaboutthetimerestrictions)dothesamething.Whopaystheadditionalcost?Thetaxpayer oftheMunicipality,thatswho!!Theconsumeralwayspaysforeverything. Asmanyofyouknow,Isellbooks.Nearlyallofthemaresoldinotherstates.Thatmeansthey mustbeshippedtopeopleinthoselocations,andthismeansshippingcosts.Idontpayshipping costsIaddthemtothecostofthebooks.Ifthatcostwerenot isolatedintheinvoice,thenI wouldhavetosimplychargeahigherpriceforthebooks.WhenIhadtheprintershipthebooks tome,theydidnotpaytheshippingcharges,Ipaidthem(andpassedthecostontocustomersin theformofhigherbookpricesthanwouldbewithoutthem).Bytheway,inthelastshipmentthe freightinvoiceincludedafuelsurcharge. Similarly,supposethatsomehighlypaidexecutiveisnegotiatingwithacompanyforpossible employmentandhasconcludedthat hecangetbyon$300,000peryearaftertaxes.Heknows fullwellthatheis goingtohavetonegotiateforcompensationof$500,000peryearinorderto have$300,000leftoveraftertaxes,theonlythingthathecanspend.The$200,000taxmoneyis comingfromhisemployerwhothenpassesthisontoconsumersintheformofhigherpricesfor goods produced or services rendered. The consumer pays all taxes. Always has and always will!! Now,letsturntosomepopularradiotalkshowhosts,e.g.RushLimbaugh,NealBoortz,Michael Regan,etal.IhearthemtalkaboutAllthetaxes arebeingpaidbytherichfolks thepoordont payanytaxesatall.Lies,lies,lies!Thecustomersoftherichguyspayallthetaxesinthe formofhigherpricesthantheywouldhavetopayforproductswithoutthetaxesimposedonthe producerofgoods.Thepriceofthegoodsissimplypassedontotheconsumer. JusthowmanywaysdoesonehavetodemonstratethisfactbeforethetypicalAmericanbeginsto understandtruthandcutoutallthesesillygamesthatarenothingmorethanlies?Imafraidit willtakeatleastacentury ifiteverdoestakeplace!

LIFEBEGINSATSEVENTY byLeonardE.Read Popular expression has it that life begins at forty, thirty years ahead of my suggested figure. But lifereally begins each momentone grows in awareness,perception,consciousnessthat is, thebuddingprocessisacontinuousbeginning.Themoonsthathavecomeandgonetonotdonot necessarily measure growth or its ending now and then life flags in the teens on occasion it acceleratesinthenineties.Ifseventyseemslesslikelythanfortyforanewbeginning,thereason isthatsomanyhavediedonthevineinthatinterval.Glorytothemanwhocantruthfullyattest, Lifebeginsatninety!

Twenty years ago at the age of fifty I discovered this: The normal human brain always containsagreaterstoreofneuroblaststhancanpossiblydevelopintoneuronsduringthespanof life,andthepotentialities ofthe humancortexareneverfullyrealized.Thereis asurplusand, depending upon physical factors, education, environment, andconscious effort, more or less of theinitialstoreofneuroblastswilldevelopintomature,functioning neurons.Thedevelopment of the more plastic and newer tissue of the brain depends to a large extent upon the conscious efforts made by the individual. There is every reason to assume that development of cortical functionsispromotedbymentalactivityandthatcontinuedmentalactivityisanimportantfactor in the retention of cortical plasticity into late life. Goethe . . . [and others] are among the numerous examples of men whose creative mental activities extended into the years associated withphysicaldecline...Therealsoseemsufficientgrounds fortheassumptionthathabitual disuseofthesehighestcentersresultsinatrophyoratleastbringsaboutacertainmentaldecline. Andnow,onrereadingOrtega,Ifind:Asoneadvancesinlife,onerealizesmoreandmorethat themajorityofmenandofwomenareincapableofanyothereffortthanthatstrictlyimposed onthemasareactiontoexternalcompulsion.Andforthatreason,thefewindividuals wehave come across who are capable of a spontaneous and joyous effort stand out isolated, monumentalized,sotospeak in ourexperience.Thesearetheselect men,thenobles,the only ones whoareactiveandnot merelyreactive,forwhom life is aperpetualstriving,anincessant courseoftraining. Thereis moretotheobservationofthesetwoscholarsabiochemistandaphilosopherthan meetstheeye.Aworthyambition,theyquitecorrectlyimply,istodiewithyourbootsonof go down with yourcolors flying.Forwhat otherreasonare weherethanto get everdeeper into life? And if there be any certain key to personal happiness, it involves the use and developmentofthefacultiestheexpandingmindbeingthemostimportantand,byandlarge,all thatremainsfortheeldercitizen. Butthereisanotherreasonforlookingsofavorablyonthosewhoinsistonaperpetualstriving, anincessantcourseoftraining:Eachofushasavestedintheseselectmen,thenobles. We canliveourownlivestothefullestonlyinsofarastheydwellamongus. Thesocietyinwhichwe live the environment is conditioned by the absence or presence of those who persistently pursueexcellence.Theriseandfallofsocietydependsuponthiskindofnobility.Theseselect menareessentialtous,andstrivingtobenumberedamongthemisaworthyaspiration. Yet, many persons lace such aspiration. Analogous is the tree with every tree with every appearanceofhealth,itsblossomsbeautifultobehold,fruitdevelopingnormallytowardfullsize. But,alas,before it ripens,thefruit falls tothe groundbigand wellshaped,but useless!We witnesssomanypromisingindividualsfallingbythewayside,steppingawayfromlife,forsaking theeffortessentialtolifesfullcycle,justwhentheprocessofmaturingistobegin!Inaword, thefruitoflifeabandoned! To associate old age with mature judgment is indeed a mistake, simply because, as Ortega suggests, too many elders react only to external compulsion. The inner development that is prerequisite to maturity tends to terminate too soon. Old age, more often than not, can be associatedwithsenility.Yet,thegreatertheage,thericherthematurity,assuming,ofcourse,that thebuddingprocessisaliveandfunctioning.Intheserarecases,oldageandmaturejudgmentgo handinhandtheolder,thewiser!

IfIam not mistaken,freedom is tobe expected only insocieties distinguishedbyasignificant numberofmatureandwisemen.Andmaturityandwisdomofthequalityrequiredisreservedto those who can retain the budding phenomenon cortical plasticity into those years normally associatedwithphysicaldecline,thatis,intotheperiodwhenmaturingoftheintellectbecomesat leastapossibility.Inanyevent,Iamcertainthatthetypeofmaturityhereinquestionwillnever issueamongthosewho,forwhateverreason,permitthemselvestodieonthevine.Thus,itis oftheutmostimportancethatwereflectontheobstaclestomaturity.Iftheycanbeidentified,we can,hopefully,reducethem. TheUrgeToQuit Themostformidableobstacleonthewaytomaturityiscoveredbytheideaofretirement! Two forces moveus towardretirement, namely,temptationandcompulsion.Manyarecongenitally lazy, if not physically, at least mentally. Their mental activities have stagnated, leaving them uninteresting even to themselves, let alone to others they cannot stand their own company or abidebeingalonewiththeirthoughts.Theyseekmerrimentanddiversionsuppliedbyothers, likeamanwalkingdownthestreetwitharadiogluedtohisear.Anyexcuse,howeverflimsy,to avoidthinkingforself!Suchpersonshavenofruittoripen,nomentalactivitytomature. Thereareotherswhohavehadnothoughtsinceearlyadulthoodbuttogetitmade.Bythetime that goal is achieved, abstract thought has been too long neglected for reactivation or renewal halfhearted attempt prove unrewarding, so the temptation is to forswear any conscious effort. Maturethoughtsareoutofthequestion. Ever so many persons of high potential look to a vocation for fame or fortune and forget to chooseoneinharmonywiththeiruniquecapabilities.Asaconsequence,thejobis likelytobe boringholidaysandvacations littleretirementsarehighlightsoftheseasonsandastheyears pass, full retirement seems more and more attractive. There is no incentive to extend mental activitytoitsmaturity. RelativeRetirement Thethoughtofretirementisanathematome.Ihavenotexperiencedanyofthetemptationsand, thus,canlistonlyafewofthemoreobviousexamples.Butitseemsclearthattherewouldbe littledriveforcompulsoryretirementifretirementwerenotacommongoal.Itseemstoaddup tothis:Letsformalizeandlegalizethatwhichthevastmajoritysoardentlyfavor!Thefollowing examplesofcompulsiveforcesstemfromthesecommontemptations. Retirement,ofcourse,isarelativeterm.Theshortenedworkweek,enforcedbyedict,isacasein point.Onemustretire,not workbeyondthelegalfortyhours,ortheemployerwillbeforcedto payahigherhourlyrate,ineffect,afine.Legalholidaysseemnevertobeabandonedevenafter thecausetheyweremeanttocelebratehasbeenforgotten.Instead,therearecountless excuses forincreasingtheirnumber.Minorretirementsenmasse! SocialSecuritypaymentsarewithheldfromseniorcitizenswhoelecttoworkandearn.Activity is penalized inactivity is rewarded. Governmental unemployment payments often exceed what somepersonscouldearnbyworking,thusinducingretirement. Most Corporations, educational and religious institutions, chambers of commerce, trade associations,andotherorganizationscompelretirementat65manymakeitattractivetoretireat 60andwehearmoreandmoreofretiringat55.Thesolecriterionisthenumberofmoonsthat

have come and gone whether the budding process is dead, or at its very peak, is not even considered. As a consequence of this indiscriminate, ruleofthumb procedure, many of the nationsbestmenareputouttopasture. Theseillustrationssufficetoemphasizetheretirementsyndrome.Itis,today,thecommonfetish and the end is not in sight. Under these circumstances, it is remarkable that even a few individuals are capable of spontaneous and joyous effort, that is, are able to experience the maturingperiod.No wonderthat theperceptiveOrtegaobservedsuchindividuals tostandout isolated,monumentalized! In one sense, it is lamentable that those who have advanced in wisdom and maturity should standoutisolated,monumentalized.Farbetterifthereweremoresuchpersonsthefewless conspicuousthantheyare.Noteveryonewillmakeit,ofcourse,butmaturitysurelyiswithinthe reachofthousandsatthemodestpriceofconscious,persistent,dedicated,prayerfuleffort.The rewardforrealizingonespotentialities,whatevertheyare,maybethehighestearthlylifehasto confer. Thatmylifestillbeginswitheachmomentcanbeassignedinparttoastrokeofgoodfortune vocation and avocation are identical work and pleasure are one and the same. Beyond this, I haveafirstrateretirementpolicyshortofeffectivecompulsionstothecontrary,Iproposetoride mybicycletilIfalloff! ________________________ LeonardE.ReadwasmymentorandIamverygratefultohavehadasapersonalfriend.Hedied in his sleep the evening before a semiannual meeting of The Foundation for Economic Education,Inc.Asusual,hewasplanningtobeatworkforthecauseoffreedomthatday.I hadtheprivilegeofbeinginattendance.