now reached its greatest possible dimension.”rnA comprehensive program of transitionrnto a market economy should includernthe privatization of industrial and agriculturalrnproperty; provisions for freerntrade in shares at newly created stock exchanges;rnthe denationalization of land;rnthe creation of labor markets throughrnthe elimination of existing restrictionsrnon the freedom of labor to contract; thernimmediate demunicipalization of housing;rndrastic cuts in military and otherrngovernment spending; monetary reformrnaimed at achieving the convertibility ofrnthe currency in international moneyrnmarkets; and the liberalization of foreignrntrade.rnThe failure of socialism in Russia,rncombined with the enormous sufferingrnand hardship of the people in all of thernso-called socialist countries, is a powerfulrnwarning for the West against socialism,rnstatism, and government interventionism.rnIt is bevond the abilities of economicrnanalysis to calculate the opportunity-rncost of the socialist experiment inrnRussia, but the human toll is estimatedrnby historian Rov Medvedev at 41 millionrnpeople who perished in the gulag duringrnStalin’s collectivizations, purges, campaignsrnagainst “unearned” incomes, andrnother devilish experiments. But “thernonly lesson of history is that it does notrnteach us anything,” savs a popular Russianrnaphorism. And it certainly seemsrntrue. “Despite the recent collapse of socialismrnand communism in Soviet Russiarnand Eastern Europe, socialism is stillrnalive and growing,” says Nobel laureaternGary Becker. Socialism clearly still presentsrna mortal danger to economic freedomrnand the quality of life for us andrngenerations to come.rnYuri N. Maltsev, associate professor ofrneconomics at Carthage College inrnKenosha, Wisconsin, was an economicrnadvisor to Mikhail Gorbachev’srngovernment.rnFood, Felons, andrnForeign Aidrnby Robert WeissbeigrnA New Approach to Tradernand PunishmentrnA mcrica’s attempts to help the formerrnSoviet Union have proven exceptionallyrnfrustrating. Nearly allrngovernment officials. Democrats and Republicans,rnliberals and conservatives, realizernthat something ought to be done.rnThe possibility that continued economicrncrises will mean a return to a belligerentrntotalitarian state is both reasonablernand justifiably dreaded. Even the mostrncoldhearted lifelong antieommunist cannotrnenjoy seeing mobs of angry Russiansrnprotesting in the streets.rnUnfortunately, wc are stupefied aboutrnTHE WISDOM OF THE PLANNED GIFTrnThere are many ways to give to educational and charitable organizations such as The Rockford Institute,rnpublisher of Chronicles: A Magazine of American Culture. Most people make direct gifts, which result in arn”charitable deduction” from their taxable incomes.rnAnother option is to establish a Charitable Remainder Trust. Assume, for example, that a person boughtrnstock years ago at a cost of $20,000 that is now worth $50,000 and pays 3 percent in dividends. One way tornlock in the current value, avoid capital gains tax, and derive more income would be to create a CharitablernRemainder Unitrust. Pay-out percentages could be set at from 5 percent to 8 percent, and the funds placed inrnsecure income-producing investments. If the trust earns more than the agreed pay-out, the additional money isrnadded to the trust so that its size increases. Upon the death of the donor or his beneficiary, the trust wouldrnbecome the property of the Institute or other charities of the donor’s choice. Estate taxes are eliminated andrnthere is a sizable charitable deduction in the year the trust is established. The amount of the charitablerndeduction depends on the age of the donor and the income retained.rnMichael Warder, Legacy Program, The Rockford Institute, 934 North Main Street, Rockford, IL 61103rnI I Please send me general information on “Planned Giving” options.rnI I Please send me information on the Institute’s Charitable Remainder Trust Fund.rnNAME„ ADDRESS_rnCITY_ STATE_ ZIP_ PHONE_rnIf you have a specific asset, such as stocks, that you are considering for a contribution, and if you would like the Institute to evaluate the financial taxrnimplications for your gift, please include the following information:rnSS#_ _ SS # (SPOUSELrnCOST OF ASSET_ ESTIMATED MARKET VALUE„rnlANUARY 1994/43rnrnrn