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Varieties of Socialism:
Threats to Liberty & Social
Cooperation
∗ 1. State ownership of the means of production and replacement of market
allocative mechanisms based on voluntary exchang...
∗ Following the Disaster of the
First World War, Communists
Took Power in Russia and
Attempted to Take Power in
Bavaria, H...
∗ Socialists promised “a turn from an abyss of suffering,
anguish, starvation and degradation to the bright future of
comm...
∗ Mises’s critique is sometimes mis-characterized as
one of not having enough computers
∗ Or as one of “getting the prices...
Mises expanded his critique in
“Socialism” in 1922
• “The problem of
economic calculation is
a problem which arises
in an ...
∗ “For a time the remembrance of the experiences
gained in a competitive economy, which has
obtained for some thousands of...
Even pro-market economists who
understood change failed to see the
problem
∗ “For the theorist this [maximum of
consumers’...
F. A. Hayek responded in his 1945 essay “The Use of
Knowledge in Society”: Schumpeter had confused
“implication” with “imp...
Hayek Corrected Schumpeter….
∗ “Taken literally, this statement [of Schumpeter’s] is simply untrue. The
consumers do nothi...
Hayek, continued...
∗ “It is evident, however, that the
values of the factors of production
do not depend solely on the
va...
Socialist states abolished markets and prices in producer
goods, while retaining money wages and money prices for
consumer...
The Soviets, following Lenin’s reading of Marx and of recent
economic developments
∗ Transferred value from agriculture to...
There were, to be sure, huge advances in science
and technology
∗ But the biggest were scientific and most went into milit...
∗ A few items need to be recalled….
∗ When Gorbachev came to power, he was known for
saying “We cannot go on living like t...
Gorbachev’s Three Slogans
∗ Acceleration
∗ Openness
∗ Restructuring
∗ The third will help us to understand how the system ...
The Anti-Alcohol Campaign Collapsed
the Revenues of the State
Fiscal Implications
of Anti-Alcohol
Campaign
1984 1985 1986 ...
The result was the use of the “soft budget constraint” of cheap credit
from state banks to finance enterprises
∗ Massive i...
The rest of the sorry story is probably better
known to you..
∗ Further economic collapse
∗ Shortages
∗ Food crises
∗ Repu...
∗Many people believe that there was a great
between “Capitalism” and “Socialism” and…
∗Capitalism won!
∗That debate never ...
2. Social Democracy aimed at securing
equality and solidarity (Welfare States)
∗ The “welfare state” goes by various
names...
∗ “I will consider it a great advantage when we
have 700,000 small pensioners drawing their
annuities from the state, espe...
How are welfare state schemes structured?
PAYGO principle
Pay-As-You-Go
Fiscal Illusion
“Many of the measures which we hav...
The Welfare State is also a Tragedy of the
Commons
∗ If I don’t catch the fish,
someone else will…..so
one restricts his a...
Socialist states of the first type
seek to substitute for decentralized
planning and coordination through the
market and o...
“Germany will be at its
greatest when its poorest
citizens are also its most
loyal.”
--Adolf Hitler
The Weimar Republic wa...
∗ We have accepted, so to
speak, a second Bill of
Rights under which a new
basis of security and
prosperity can be
establi...
PAYGO Funding Systems are
equivalent to “pyramid
schemes”
Such schemes generate large and growing
“fiscal imbalances”:
the...
“Since liabilities would accumulate
only gradually, this arrangement
reduced costs in the early years and
made the propose...
Some estimates (2009) of the extent
of the fiscal imbalance in Europe
For the US, the fiscal imbalance is
at least$80,000,...
Percentage point increases in average tax rates and percentage point cuts to selected expenditure
programs needed -- immed...
But it’s not just the unfunded liabilities at
stake
∗ Intragenerational Transfers Get All
the Attention
∗ But Intergenerat...
If you think that this is bad….
If you think that this is bad….
Just wait
∗Until the base of the pyramid shrinks further
∗Promises to pay for medical care, retirement,
and other benefits...
It’s time to ask questions about the
sustainability of welfare states and
alternative means of providing
retirement, aid t...
3. “Left-Wing” Socialism and “Right-Wing”
Socialism
∗ Have more in common than many
would like to admit
∗ They draw from t...
Marxism claimed “scientific status” resting on historical
materialism and the analysis of surplus value
∗ “These two great...
In fact, the foundations of Marxism (actually, Engels-ism)
were laid much earlier, on the hatred of commerce and the
calcu...
The old attacks on usury and “making money from money”
were restated in more virulent form
∗ “The immorality of lending at...
Marx made the connection more direct: “capital” represented the spirit
of the Jews
∗ “Let us not look for the secret of
th...
What was the worst effect of market exchange and liberalism,
according to Marx? Christians had been transformed into Jews....
Karl Marx was especially vitriolic about “the loan-mongering
Jews of Europe”
∗The Favorite Enemy
of Socialists:
∗The Rootl...
From Marx to Sorel, Mussolini, and Beyond
∗ The theme of class conflict and a general uprising
of those oppressed by “capi...
Hitler adopted Marxist ideas of conflict as the foundation for his own
worldview, merely adding a “racial” dimension to Ma...
National Socialism as Fulfillment of Marxism
∗ “Fundamentally, these new means of
political struggle can be traced back to...
For Socialists of Left and Right, the world is divided up
into “us” and “them,” and “we” are defined by our
enmity with “t...
Struggle (“inherent antagonism”) permeates
collectivism of the left and the right
∗ “is not the relationship to an
externa...
Self Help
Friendly Societies/Mutual Aid
Commercial Insurance
Charity
4. Social Conflict and Statism,
or Social Cooperation...
The classical liberal response: the right to one’s
modest peculiarities
∗ "Human groupings have one main
purpose: to asser...
Liberalism is not only the philosophy of
prosperity and progress, but of peace and
respect
Vasily Grossman (1905-1964) as ...
Liberalism is not only the philosophy of
prosperity and progress, but of peace and
respect • "Human groupings have one mai...
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CEQLS Lecture | Tom G. Palmer

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Tom G. Palmer, Executive Vice President for International Programs at Atlas Network, Conservative Institute CEQLS Lecture, Bratislava (Slovakia), September 25, 2017. More information at www.institute.sk

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CEQLS Lecture | Tom G. Palmer

  1. 1. Varieties of Socialism: Threats to Liberty & Social Cooperation
  2. 2. ∗ 1. State ownership of the means of production and replacement of market allocative mechanisms based on voluntary exchange and prices with allocation of resources by means of a general plan created and imposed by the state ∗ 2. Social Democracy aimed at securing equality and solidarity (Welfare States) ∗ 3. “Left-Wing” Socialism and “Right-Wing” Socialism ∗ 4. Social Conflict and Statism or Social Cooperation and Liberty? Varieties of Socialism
  3. 3. ∗ Following the Disaster of the First World War, Communists Took Power in Russia and Attempted to Take Power in Bavaria, Hungary, and Elsewhere 1. Socialism as State Ownership of the Means of Production and Central Planning
  4. 4. ∗ Socialists promised “a turn from an abyss of suffering, anguish, starvation and degradation to the bright future of communist society, universal prosperity and enduring peace” ∗ V. Lenin, “The Chief Task of Our Day,” March 11, 1918 ∗ The Viennese economist Ludwig von Mises issued a major challenge: How would communism solve the problem of “economic calculation”? ∗ “Valuation can only take place in terms of units, yet it is impossible that there should ever be a unit of subjective use- value for goods. … Judgments of value do not measure; they merely establish grades and scales.” ∗ Ludwig von Mises, “Economic Calculation in the Socialist Commonwealth” (1920) 1. Socialism as State Ownership of the Means of Production and Central Planning
  5. 5. ∗ Mises’s critique is sometimes mis-characterized as one of not having enough computers ∗ Or as one of “getting the prices right” ∗ That could be done either through “market socialism” (Oskar Lange) through which managers of state firms would be instructed to act “as if” they were maximizing profits, or ∗ Through implementation of linear programming models (following the brilliant insights of Leonid Kantorovich and others) and the assessment of optimal prices, i.e., indices that are equal to marginal costs 1. Socialism as State Ownership of the Means of Production and Central Planning
  6. 6. Mises expanded his critique in “Socialism” in 1922 • “The problem of economic calculation is a problem which arises in an economy which is perpetually subject to change, an economy which every day is confronted with new problems which have to be solved.”
  7. 7. ∗ “For a time the remembrance of the experiences gained in a competitive economy, which has obtained for some thousands of years, may provide a check to the complete collapse of the art of economy. … Yet in place of the economy of the ‘anarchic’ method of production, recourse will be had to the senseless output of an absurd apparatus. The wheels will turn, but will run to no effect.” An inherited order of production can be continued, but becomes increasingly senseless
  8. 8. Even pro-market economists who understood change failed to see the problem ∗ “For the theorist this [maximum of consumers’ satisfaction subject to the limits imposed by the available resources] follows from the elementary proposition that consumers in evaluating (‘demanding’) consumers’ goods ipso facto also evaluate the means of production, which enter into the production of those goods.” ∗ Joseph Schumpeter, Capitalism, Socialism, and Democracy (1942)
  9. 9. F. A. Hayek responded in his 1945 essay “The Use of Knowledge in Society”: Schumpeter had confused “implication” with “imputation” ∗ Starting Point, derived from Carl Menger: ∗ In a market economy, the value of inputs are imputed from the value of outputs, i.e., the values of producer goods depend on, i.e., are imputed from the values of consumer goods; we value iron ore because of the value we place on the services yielded by the things we can make from it, not because of the labor that went into it. (In fact, it is not cost that determines price, but price that determines cost.)
  10. 10. Hayek Corrected Schumpeter…. ∗ “Taken literally, this statement [of Schumpeter’s] is simply untrue. The consumers do nothing of the kind. What Professor Schumpeter’s ‘ipso facto’ presumably means is that the valuation of the factors of production is implied in, or follows necessarily from, the valuation of consumers’ goods. But this, too, is not correct. Implication is a logical relationship which can be meaningfully asserted only of propositions simultaneously present to one and the same mind.”
  11. 11. Hayek, continued... ∗ “It is evident, however, that the values of the factors of production do not depend solely on the valuation of the consumers’ goods but also on the conditions of supply of the various factors of production. Only to a mind to which all these facts were simultaneously known would the answer necessarily follow from the facts given to it.” ∗ “The practical problem, however, arises precisely because these facts are never so given to a single mind, and because, in consequence, it is necessary that in the solution of the problem knowledge should be used that is dispersed among many people.” ∗ F. A. Hayek, “The Use of Knowledge in Society,” American Economic Review (1945)
  12. 12. Socialist states abolished markets and prices in producer goods, while retaining money wages and money prices for consumer goods ∗ The system lumbered forward, not by following the comprehensive plans created by the authorities, but through complex evolved systems of indirect exchange among enterprises, called “блат” (“Blat”) and carried out by the help of “Толкачи” (“Tolkachi,” or “Pushers”) ∗ There was, in effect, a highly inefficient and hampered market economy without the use of money prices, but the exchange of favors mediated by complex chains of indirect exchange.
  13. 13. The Soviets, following Lenin’s reading of Marx and of recent economic developments ∗ Transferred value from agriculture to factories ∗ Lowered living standards among peasants and starved millions of them to death in the process ∗ Requisitioned grain early on during collectivization and sold it abroad for money to buy equipment to build factories to produce steel and cement ∗ Those factories produced huge amounts of steel and cement ∗ That steel and cement was used to create factories to create ∗ Steel and Cement…..
  14. 14. There were, to be sure, huge advances in science and technology ∗ But the biggest were scientific and most went into military production, not consumer goods ∗ Those goods were used to cement the hold of the USSR over an empire that became ever more expensive as new countries were added ∗ Agricultural production fell dramatically and what kept the system going was the discovery of oil and gas in Siberia, which was very inefficiently extracted and exported for money that was used to purchase food and goods that could not be produced in the USSR (not in the sense of it was uneconomic, but it was virtually impossible) ∗ Central planning was ultimately unable to deal with the problems of change…..
  15. 15. ∗ A few items need to be recalled…. ∗ When Gorbachev came to power, he was known for saying “We cannot go on living like this.” He did not envisage, however, replacing socialism with markets, much less the dissolution of the USSR ∗ He was a confirmed Leninist The dissolution of the Communist System you remember
  16. 16. Gorbachev’s Three Slogans ∗ Acceleration ∗ Openness ∗ Restructuring ∗ The third will help us to understand how the system staggered from one crisis to another ∗ Examples ∗The law on unearned income ∗The campaign against alcohol
  17. 17. The Anti-Alcohol Campaign Collapsed the Revenues of the State Fiscal Implications of Anti-Alcohol Campaign 1984 1985 1986 1987 Tax revenues in state budget from sale of alcohol (billions of rubles) 36.7 33.3 27.0 29.1 Tax revenues in state budget from sale of alcohol (percent of GDP) 4.8 4.3 3.4 3.5 Retail sales of alcoholic beverages (billions of rubles 52.8 47.7 37.0 36.6 Retail sales of alcoholic beverages (percent of GDP) 6.9 6.1 4.6 4.4 Source: Yegor Gaidar, Collapse of
  18. 18. The result was the use of the “soft budget constraint” of cheap credit from state banks to finance enterprises ∗ Massive inflation in an economy without free prices ∗ Generated the “Ruble Overhang” ∗ Everyone had money…but there was nothing to buy ∗ The ruble on the international exchanges collapsed in value ∗ The Soviet Empire became too expensive to afford and decisions were made to cut loose the ties to the empire in Eastern and Central Europe
  19. 19. The rest of the sorry story is probably better known to you.. ∗ Further economic collapse ∗ Shortages ∗ Food crises ∗ Republics declare their independence ∗ August Putsch (1991) against Gorbachev to restore Soviet system ∗ Boris Yeltsin on the famous tank ∗ Gorbachev resigns 25.December.1991 ∗ USSR dissolved 26.December.1991
  20. 20. ∗Many people believe that there was a great between “Capitalism” and “Socialism” and… ∗Capitalism won! ∗That debate never took place ∗There was no debate ∗One side ran out of money and collapsed…. Mises’s critique was not the cause of the collapse, but helps to explain it
  21. 21. 2. Social Democracy aimed at securing equality and solidarity (Welfare States) ∗ The “welfare state” goes by various names ∗ Sozialstaat ∗ Stato Sociale ∗ Volksstaat ∗ Welfare State ∗ Folkhemmet ∗ государство всеобщего благосостояния ∗ Estado del Bienestar ∗ Previdência Social ∗ L'État-providence ∗ 福利制的国家 ∗And it is nearly everywhere… ∗ Because it creates advantages for rulers and political constituencies for its continuance
  22. 22. ∗ “I will consider it a great advantage when we have 700,000 small pensioners drawing their annuities from the state, especially if they belong to those classes who otherwise do not have so much to lose by an upheaval and erroneously believe they can actually gain much by it.” ∗ “I have lived in France long enough to know that the faithfulness of most of the French to their government….is largely connected with the fact that most of the French receive a state pension.” ∗ “Many of the measures which we have adopted to the great blessing of the country are Socialistic, and the State will have to accustom itself to a little more Socialism yet.” The welfare state was created as a political strategy Otto von Bismarck
  23. 23. How are welfare state schemes structured? PAYGO principle Pay-As-You-Go Fiscal Illusion “Many of the measures which we have adopted to the great blessing of the country are Socialistic, and the State will have to accustom itself to a little more Socialism yet.” -- Otto von Bismarck Characterized as “Social Rights”
  24. 24. The Welfare State is also a Tragedy of the Commons ∗ If I don’t catch the fish, someone else will…..so one restricts his activities of fishing ∗ If I don’t get that government subsidy or favor, someone else will….. ∗ Everyone is in conflict with everyone else…. ∗ Not only the poor, but the rich line up for their subsidies
  25. 25. Socialist states of the first type seek to substitute for decentralized planning and coordination through the market and other voluntary mechanisms a comprehensive system of state planning Socialist states of the second type (Welfare States) seek to take responsibility for the well-being, or welfare, of the society; they need not systematically displace markets, but create organs of state power to assume responsibility for producing and/or delivering certain services to the people
  26. 26. “Germany will be at its greatest when its poorest citizens are also its most loyal.” --Adolf Hitler The Weimar Republic was the “most advanced” welfare state of its day
  27. 27. ∗ We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all -- regardless of station, or race or creed. --Franklin D. Roosevelt, 11.Jan.1944 The “Social State” model was copied almost everywhere
  28. 28. PAYGO Funding Systems are equivalent to “pyramid schemes” Such schemes generate large and growing “fiscal imbalances”: the difference in present value between what the government is projected to spend under current law on all expenditure categories—entitlements, defense, roads, and everything else—and what it is projected to receive in taxes across all revenue accounts.
  29. 29. “Since liabilities would accumulate only gradually, this arrangement reduced costs in the early years and made the proposed levels of compensation feasible after all. Although this would be achieved at the price of piling up problems in the future, it allowed any consideration of state subsidies to be put off for the moment.” --E. P. Hennock, The Origin of the Welfare State in England and Germany, 1850–1914 (Cambridge: Cambridge University Press, 2007) The Instability of the Welfare State Was Evident from Its Very Start
  30. 30. Some estimates (2009) of the extent of the fiscal imbalance in Europe For the US, the fiscal imbalance is at least$80,000,000,000,000 ($80 trillion); for EU member states as a whole, calculated only over a 50 year time horizon, the imbalance is over €53,000,000,000,000 (€53 trillion; most recent estimate is $78 trillion); those are the sums that governments would have to have in interest-earning accounts right now – in addition to all other revenues they receive – just to fund their current obligations
  31. 31. Percentage point increases in average tax rates and percentage point cuts to selected expenditure programs needed -- immediately and permanently -- to eliminate fiscal imbalances in EU countries
  32. 32. But it’s not just the unfunded liabilities at stake ∗ Intragenerational Transfers Get All the Attention ∗ But Intergenerational Transfers are Far More Significant The consequences of not addressing these issues are serious: the rise of extremist movements looking for scapegoats….
  33. 33. If you think that this is bad….
  34. 34. If you think that this is bad….
  35. 35. Just wait ∗Until the base of the pyramid shrinks further ∗Promises to pay for medical care, retirement, and other benefits are not kept ∗Taxes rise on those working to finance those not working
  36. 36. It’s time to ask questions about the sustainability of welfare states and alternative means of providing retirement, aid to the unfortunate, medical care, and social solidarity The current obligations of the state to pensioners and others cannot be fulfilled….and there will be default of one kind or another Some governments in Europe – notably Hungary and Poland – have taken steps that reduce short-term measures of public debt, but by doing so, they have merely confiscated private savings and increased long-term state liabilities For a PDF version, google: After the Welfare State PDF
  37. 37. 3. “Left-Wing” Socialism and “Right-Wing” Socialism ∗ Have more in common than many would like to admit ∗ They draw from the same roots and the same Zero-Sum mentality
  38. 38. Marxism claimed “scientific status” resting on historical materialism and the analysis of surplus value ∗ “These two great discoveries: the materialist conception of history and the revelation of the secret of capitalist production through surplus value, we owe to Marx. With them socialism became a science….” ∗ Friedrich Engels, The Development of Socialism from Utopia to Science (1880)
  39. 39. In fact, the foundations of Marxism (actually, Engels-ism) were laid much earlier, on the hatred of commerce and the calculation of economic profit ∗ “You have brought about the fraternization of the peoples – but the fraternity is the fraternity of thieves. You have reduced the number of wars – to earn all the bigger profits in peace, to intensify to the utmost the enmity between individuals, the ignominious war of competition!” ∗ Friedrich Engels, “Outlines of a Critique of Political Economy” (1843)
  40. 40. The old attacks on usury and “making money from money” were restated in more virulent form ∗ “The immorality of lending at interest, of receiving without working, merely for making a loan, though already implied in private property, is only too obvious, and has long ago been recognized for what it is by unprejudiced popular consciousness, which in such matters is usually right.” ∗ …. ∗ “[I]mmorality’s culminating point is the speculation on the Stock Exchange, where history, and with it mankind, is demoted to a means of gratifying the avarice of the calculating or gambling speculator.” ∗ Friedrich Engels, “Outlines of a Critique of Political Economy” (1843)
  41. 41. Marx made the connection more direct: “capital” represented the spirit of the Jews ∗ “Let us not look for the secret of the Jew in his religion, but let us look for the secret of his religion in the real Jew. ∗ What is the secular basis of Judaism? Practical need, self- interest. What is the worldly religion of the Jew? Huckstering. What is his worldly God? Money.” ∗ Karl Marx, “On the Jewish Question,” 1843
  42. 42. What was the worst effect of market exchange and liberalism, according to Marx? Christians had been transformed into Jews. ∗ “The Jew has emancipated himself in a Jewish manner, not only because he has acquired financial power, but also because, through him and also apart from him, money has become a world power and the practical Jewish spirit has become the practical spirit of the Christian nations. The Jews have emancipated themselves insofar as the Christians have become Jews.” ∗ Karl Marx, “On the Jewish Question,” 1843
  43. 43. Karl Marx was especially vitriolic about “the loan-mongering Jews of Europe” ∗The Favorite Enemy of Socialists: ∗The Rootless Cosmopolitans ∗ Who have no connection to the soil ∗ Who do not share “our” interests ∗ Who conspire behind our backs to manipulate us ∗ “The loan-mongering Jews of Europe do only on a larger and more obnoxious scale what many others do on one smaller and less significant. But it is only because the Jews are so strong that it is timely and expedient to expose and stigmatize their organization.” ∗ Karl Marx, “The Russian Loan” (1856)
  44. 44. From Marx to Sorel, Mussolini, and Beyond ∗ The theme of class conflict and a general uprising of those oppressed by “capitalism” was taken up by Sorel and his follower Mussolini ∗ “Now Fascism throws the noxious theories of so- called Liberalism upon the rubbish heap. When a group or a party is in power it is its duty to fortify and defend itself against all. The truth, manifest henceforth to all whose eyes are not blinded by dogmatism, is that men are perhaps tired of liberty. They have had an orgy of it. Liberty to-day is no longer the chaste and severe virgin for whom fought and died the generations of the first half of the past century. For the youths of to-day, intrepid, eager, stern, who envisage the dawn of the new era, there are other words which exercise a more potent fascination and these words are: Order, Hierarchy, Discipline . . . .” ∗ Benito Mussolini, The Life of Benito Mussolini (English translation by Margherita G. Sarfatti, foreword by Signor Mussolini, 1925) ∗ Georges Sorel (1847-1922) Benito Mussolini (1883-1945)
  45. 45. Hitler adopted Marxist ideas of conflict as the foundation for his own worldview, merely adding a “racial” dimension to Marx’s own anti- semitism ∗ “The racial world view is fundamentally distinguished from the Marxist by reason of the fact that the former recognizes the significance of race and therefore also personal worth and has made these the pillars of its structure. These are the most important factors of its world view. If the National Socialist Movement should fail to understand the fundamental importance of this essential principle, if it should merely varnish the external appearance of the present State and adopt the majority principle, it would really do nothing more than compete with Marxism on its own ground.”
  46. 46. National Socialism as Fulfillment of Marxism ∗ “Fundamentally, these new means of political struggle can be traced back to the Marxists. I only needed to adopt and further develop them, and I essentially had what we needed. I just had to continue, with greater resolve, where the Social Democrats had failed ten times over because they insisted on trying to achieve their revolution within the framework of democracy. National Socialism is what Marxism could have been if it had freed itself from its absurd, artificial connection with the democratic system.” ∗ Quoted in Hermann Rauschning, Gespräche mit Hitler (1939)
  47. 47. For Socialists of Left and Right, the world is divided up into “us” and “them,” and “we” are defined by our enmity with “them” ∗ “the specific political distinction…can be reduced to that between friend and enemy” ∗ “The enemy is not merely any competitor or just any partner of a conflict in general. He is also not the private adversary whom one hates. An enemy exists only when, at least potentially, one fighting collectivity of people confronts a similar collectivity.”
  48. 48. Struggle (“inherent antagonism”) permeates collectivism of the left and the right ∗ “is not the relationship to an external Other as the enemy a way of disavowing the internal struggle which traverses the social body? In contrast to Schmitt, a leftist position should insist on the unconditional primacy of the inherent antagonism as constitutive of the political.” ∗ Slavoj Žižek
  49. 49. Self Help Friendly Societies/Mutual Aid Commercial Insurance Charity 4. Social Conflict and Statism, or Social Cooperation and Liberty? ∗ If we desire to live in peace, we must embrace the practices and the institutions of peace and prosperity ∗ Well defined and voluntarily transferrable property rights ∗ Free market economy ∗ Limited Government ∗ Freedom of Trade
  50. 50. The classical liberal response: the right to one’s modest peculiarities ∗ "Human groupings have one main purpose: to assert everyone's right to be different, to be special, to think, feel and live in his or her own way. People join together in order to win or defend this right. But this is where a terrible, fateful error is born: the belief that these groupings in the name of a race, a God, a party, or a State are the very purpose of life and not simply a means to an end. No! The only true and lasting meaning of the struggle for life lies in the individual, in his modest peculiarities and in his right to those peculiarities.” ∗ Red Army Colonel Pyotr Pavlovich Novikov’s thoughts as he inspects soldiers assembled under his command, in Vasily Grossman’s novel of the Battle of Stalingrad, Life and Fate Vasily Grossman (1905-1964) as a correspondent for , Red Star, the newspaper of the Red Army
  51. 51. Liberalism is not only the philosophy of prosperity and progress, but of peace and respect Vasily Grossman (1905-1964) as a correspondent for , Red Star, the newspaper of the Red Army, and later novelist of Soviet terror
  52. 52. Liberalism is not only the philosophy of prosperity and progress, but of peace and respect • "Human groupings have one main purpose: to assert everyone's right to be different, to be special, to think, feel and live in his or her own way. People join together in order to win or defend this right. But this is where a terrible, fateful error is born: the belief that these groupings in the name of a race, a God, a party, or a State are the very purpose of life and not simply a means to an end. No! The only true and lasting meaning of the struggle for life lies in the individual, in his modest peculiarities and in his right to those peculiarities.” • Red Army Colonel Pyotr Pavlovich Novikov’s thoughts as he inspects soldiers assembled under his command, in Vasily Grossman’s novel of the Battle of Stalingrad, Life and Fate Vasily Grossman (1905-1964) as a correspondent for , Red Star, the newspaper of the Red Army

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