Socialism. Людвиг фон Мизес

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Socialism - Людвиг фон Мизес Liberty Fund Library of the Works of Ludwig von Mises

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the functioning of democratic institutions. Non-parliamentary influences make themselves felt in legislation and administration, for the intellectual power of the excluded cannot be stifled by the inferior elements which lead in parliamentary life. Parliamentarism suffers from nothing so much as from this; we must seek here the reason for its much deplored decline. For democracy is not mob rule, and to do justice to its tasks, parliament should include the best political minds of the nation.

      Grave injury has been done to the concept of democracy by those who, exaggerating the natural law notion of sovereignty, conceived it as limitless rule of the volonté générale (general will). There is really no essential difference

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      between the unlimited power of the democratic state and the unlimited power of the autocrat. The idea that carries away our demagogues and their supporters, the idea that the state can do whatever it wishes, and that nothing should resist the will of the sovereign people, has done more evil perhaps than the caesar-mania of degenerate princelings. Both have the same origin in the notion of a state based purely on political might. The legislator feels free of all limitations because he understands from the theory of law that all law depends on his will. It is a small confusion of ideas, but a confusion with profound consequences, when he takes his formal freedom to be a material one and believes himself to be above the natural conditions of social life. The conflicts which arise out of this misconception show that only within the framework of Liberalism does democracy fulfil a social function. Democracy without Liberalism is a hollow form.

       The Ideal of Equality

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      Political democracy necessarily follows from Liberalism. But it is often said that the democratic principle must eventually lead beyond Liberalism. Carried out strictly, it is said, it will require economic as well as political rights of equality. Thus logically Socialism must necessarily evolve out of Liberalism, while Liberalism necessarily involves its own destruction.

      The ideal of equality, also, originated as a demand of natural law. It was sought to justify it with religious, psychological, and philosophical arguments; but all these proved to be untenable. The fact is that men are endowed differently by nature; thus the demand that all should be equally treated cannot rest on any theory that all are equal. The poverty of the natural law argument is exposed most clearly when it deals with the principle of equality.

      If we wish to understand this principle we must start with an historical examination. In modern times, as earlier, it has been appealed to as a means of sweeping away the feudal differentiation of individuals’ legal rights. So long as barriers hinder the development of the individual and of whole sections of the people, social life is bound to be disturbed by violent upheavals. People without rights are always a menace to social order. Their common interest in removing such barriers unites them; they are prepared to resort to violence because by peaceable means they are unable to get what they want. Social peace is attained only when one allows all members of

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      society to participate in democratic institutions. And this means equality of All before the Law.

      Another consideration too urges upon Liberalism the desirability of such equality. Society is best served when the means of production are in the possession of those who know how to use them best. The gradation of legal rights according to accident of birth keeps production goods from the best managers. We all know what role this argument has played in liberal struggles, above all in the emancipation of the serfs. The soberest reasons of expediency recommend equality to Liberalism. Liberalism is fully conscious, of course, that equality before the Law can become extremely oppressive for the individual under certain circumstances, because what benefits one may injure another; the liberal idea of equality is however based on social considerations, and where these are to be served the susceptibilities of individuals must give way. Like all other social institutions, the Law exists for social purposes. The individual must bow to it, because his own aims can be served only in and with society.

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      The meaning of legal institutions is misunderstood when they are conceived to be anything more than this, and when they are made the basis of new claims which are to be realized at whatever cost to the aim of social collaboration. The equality Liberalism creates is equality before the Law; it has never sought any other. From the liberal point of view, therefore, criticism which condemns this equality as inadequate—maintaining that true equality is full equality of income through equal distribution of commodities—is unjustified.

      But it is precisely in this form that the principle of equality is most acclaimed by those who expect to gain more than they lose from an equal distribution of goods. Here is a fertile field for the demagogue. Whoever stirs up the resentment of the poor against the rich can count on securing a big audience. Democracy creates the most favourable preliminary conditions for the development of this spirit, which is always and everywhere present, though concealed.7 So far all democratic states have foundered on this point. The democracy of our own time is hastening towards the same end.

      It is a strange fact that just that idea of equality should be called unsocial which considers equality only from the point of view of the interests of society as a whole, and which wants to see it achieved only in so far as it helps society to attain its social aims; while the view which insists that

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      equality, regardless of the consequences, implies a claim to an equal quota of the national income is put forward as the only view inspired by consideration for society. In the Greek city State of the fourth century the citizen considered himself lord of the property of all the subjects of the State and he demanded his part imperiously, as a shareholder demands his dividends. Referring to the practice of distributing common property and confiscated private property, Aeschines made the following comment: “The Athenians come out of the Ecclesia not as out of a political assembly but as from the meeting of a company in which the surplus profit has been distributed.”8 It cannot be denied that even to-day the common man is inclined to look on the State as a source from which to draw the utmost possible income.

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      But the principle of equality in this form by no means follows necessarily from the democratic idea. It should not be recognized as valid a priori any more than any other principle of social life. Before one can judge it, its effects must be clearly understood. The fact that it is generally very popular with the masses and therefore finds easy recognition in a democratic state neither makes it a fundamental principle of democracy nor protects it from the scrutiny of the theorist.

       Democracy and Social-Democracy

      The view that democracy and Socialism are inwardly related spread far and wide in the decades which preceded the Bolshevist revolution. Many came to believe that democracy and Socialism meant the same thing, and that democracy without Socialism or Socialism without democracy would not be possible.

      This notion sprang principally from a combination of two chains of thought, both of which sprang originally from the Hegelian philosophy of history. For Hegel world history is “progress in the consciousness of freedom.” Progress takes place in this way: “. . . the Orientals only knew

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