Theory of Socialism and Capitalism Pt. 1: Hoppe's Hammer
{Editor's Note: The Lions of Liberty are excited to welcome our first new regular contributor, Joe Beck! His first task on the Lions team will be to help guide the reader , chapter by chapter, through Hans-Hermann Hoppe's treatise, [amazon_link id="1478302917" target="_blank" container="" container_class="" ]Theory of Socialism and Capitalism.[/amazon_link]}A recent Zero Hedge article pointed out that American youth, ages 18-29, have a more positive view toward Socialism than they do towards Capitalism. Why is this? What's so good about Socialism? And what's so bad about Capitalism? To be sure, most millennials either have apathetic views or a vague understanding of both economic systems. Some even blame the current economic crisis on the 'excesses of capitalism.' As Ron Paul states in Pillars of Prosperity, "Capitalism should not be condemned, since we haven't had capitalism." Pretty simple, right? This Pew survey and the recent explosion in the ideas of anarcho-capitalism show two distinct economic paths chosen by our generation. Some people want slavery egalitarian redistribution, others want liberty & voluntary exchange.It is the goal of this series of articles to explore the Austrian analysis of both economic systems with the aide of Austrian heavyweight Hans-Hermann Hoppe and his Theory of Socialism & Capitalism. I'll go through this economic treatise a chapter or two at a time, citing key points made by Hoppe. As a novice Rothbardian, I hope this series aides you in your liberty-minded education as much as this book has helped me. Download the pdf here. View Hoppe's wiki here. Let's do it!Chapter 1: IntroductionIn his introduction, Hoppe tells the audience what he's going to tell us. His goals:1) the development of conceptual and argumentative tools, both economic and moral, needed to analyze social or political systems,2) the development of a theory of property rights,3) analyze different types of socialism,4) explain the workings of a pure capitalist social order, and5) defend his thesis: the overall degree of socialism in a country, an interference in property rights, explains it's overall wealth; the more socialist a country, the poorer the country will remain or become.Something most well intended authoritarians fail to recognize is the detrimental effects of all state interventions, whether big or small, and how these interventions produce unintended consequences despite the immediate "positive" effects. The highly visible positive effects of socialist policies, as Hoppe points out, are not free-hanging fruits from benevolent bureaucrats, but exist as 'phenomena that have to be paid for somehow.' These philanthropic interventions are more often than not responses to failures of previous state interventions. Obamacare and the medical industrial complex, for example.Hoppe not only argues against the economics of socialism, he sets out to debunk the moral high ground the socialists have claimed. "The property theory implicit in socialism does not even pass the first decisive test (the necessary if not sufficient condition) required of rules of human conduct which claim to be morally justified or justifiable," says Hoppe. The Golden Rule and the Kantian categorical imperative are these tests. What Hoppe calls 'particularistic rules' are the bedrock of all practiced forms of socialism; "I can steal from redheads, but redheads can't steal from me." It is here on moral grounds, where capitalism - a system based on property rights - wins, again.This chapter closes with Hoppe throwing down the hammer:
"With this constructive task completed, the argument will have been brought full circle, and the demolition of the intellectual credibility of socialism, morally and economically, should be complete."
How lucky we are to stand on the shoulders of intellectual giants like Hoppe and his fellow Austrians? Alright, one chapter down. Read along and share your thoughts. We'll pick up next time with Chapter 2: Property, Contract, Aggression, Capitalism, Socialism.Receive access to ALL of our EXCLUSIVE bonus audio content – including “Conspiracy Corner”, “Degenerate Gamblers” and the “League of Liberty Podcast” by joining the Lions of Liberty Pride and supporting us on Patreon! [amazon_image id="1478302917" link="true" target="_blank" size="medium" ]A Theory of Socialism and Capitalism (Large Print Edition): Economics, Politics, and Ethics[/amazon_image] [amazon_image id="0765808684" link="true" target="_blank" size="medium" ]Democracy: The God that Failed: The Economics and Politics of Monarchy, Democracy, and Natural Order[/amazon_image] [amazon_image id="0945466404" link="true" target="_blank" size="medium" ]The Economics and Ethics of Private Property: Studies in Political Economy and Philosophy, 2nd Edition[/amazon_image] [amazon_image id="310032451X" link="true" target="_blank" size="medium" ]Hoppe[/amazon_image] [amazon_image id="094546620X" link="true" target="_blank" size="medium" ]Economic Science and the Austrian Method[/amazon_image]
