The Individual in Society
by Ludwig von Mises
The words freedom and liberty signified for the most eminent
representatives of mankind one of the most precious and desirable
goods. Today it is fashionable to sneer at them. They are, trumpets
the modern sage, "slippery" nontions and "bourgeois" prejudices.
Freedom and liberty are not to be found in nature. In nature there
is no phenomenon to which these terms could be meaningfully applied.
Whatever man does, he can nver free himself from the restraints which
nature imposes upon him. If he wants to succeed in acting, he must
submit unconditionally to the laws of nature.
Freedom and liberty always refer to interhuman relations. A man is
free as far as he can live and get on without being at the mercy of
arbitrary decisions on the part of other people. In the frame of
society everybody depends upon his fellow citizens. Social man cannot
become independent without forsaking all the advantages of social
cooperation.
The fundamental social phenomenon is the division of labour and its
counterpart - human cooperation.
Experience teaches man that cooperative action is more efficient and
productive than isolated action of self-sufficient individuals. The
natural conditions determining man's life and effort are such that
the division of labour increases output per unit of labour expended.
These natural facts are: 1. the innate inequality of men with regard
to their ability to perform various kinds of labour, and 2. the
unequl distribution of the nature-given, non-human opportunities of
production on the surface of the earth. One may as well consider
these two facts as one and the same fact, namely, the manifoldness of
nature makes the universe a complex of infinite varieties.
INNATE INEQUALITY
The division of labour is the outcome of man's conscious reaction to
the multiplicity of natural conditions. On the other hand, it is
itself a factor bringing about differentiation. It assigns to the
various geographic areas specific functions in the complex of the
processes of production. It makes some areas urban, others rural; it
locates the various branches of manufacturing, mining, and
agriculture in different places. Still more important, however, in
the fact that it intensifies the innate inequality of men. Exercise
and practice of specific tasks adjust individuals better to the
requirements of their performance; men develop some of their inborn
facilities and stunt the development of others. Vocational types
emerge, people become specialists.
The division of labour splits the various processes of production
into minute tasks, many of which can be performed by mechanical
devices. It is this fact that made the use of machinery possible and
brought about the amazing improvements in technical methods of
production. Mechanization is the fruit of the division of labour,
its most beneficial achievement, not its motive and fountain spring.
Power-driven specialized machinery could be employed only in a social
environment under the division of labour. Every step forward on the
road toward the use of more specialized, more refined, and more
productive machines requires a further specialization of tasks.
WITHIN SOCIETY
Seen from the point of view of the individual, society is the great
means for the attainment of all his ends. The preservation of
society is an essential condition of any plans an individual may want
to realize by any action whatever. Even the refractory deliquent who
fails to adjust his conduct to the requirements of life within the
social system of cooperation does not want to miss any of the
advantages derived from the division of labour. He does not
consciously aim at the destruction of society. He wants to lay his
hands on a greater portion of the jointly produced wealth than the
social order assigns him. He would fell miserable if antisocial
behavior were to become universal and its inevitable outcome, the
return to primitive indigence, resulted.
Liberty and freedom are the conditions of man within the contractual
society. Social cooperation under a system of private ownership of
the means of production means that within the range of the market the
individual is not bound to obey and to serve an overlord. As far as
he gives and serves other people, he does so of his own accord in
order to be rewarded and served by the receivers. He exchanges goods
and services, he does not do compulsory labour and does not pay
tribute. His is certainly not independent. He depends on the other
members of society. But this dependence is mutual. The buyer
depends on the seller and the seller on the buyer.
SELF-INTEREST
The main concern of many writers of the nineteenth and twentieth
centuries was to misrepresent and to distort this obvious state of
affairs. The workers, they said, are at the mercy of their
employers. Now, it is true that the employer has the right to fire
the employee. But if he makes use of this right in order to indulge
in his whims, he hurts his own interests. It is to his own
disadvantage if he discharges a better man in order to hire a less
efficient one. The market does not directly prevent anybody from
arbitrarily inflicting harm on his fellow citizens; it only put a
penalty upon such conduct. The shopkeeper is free to be rude to his
customers provided he is ready to bear the consequences. The
consumers are free to boycott a purveyor provided they are ready to
pay the costs. What impels every man to the utmost exertion in the
service of his fellow men and curbs innate tendencies toward
arbitariness and alice is, in the market, not compulsion and coercion
on the part of the gendarmes, hangmen, and penal courts; it is
self-interest. The member of a contractual society is free because
he serves others only in serving himself. What restrains him is only
the inevitable natural phenomenon of scarcity. For the rest he is
free in the range of the market.
In the market economy the individual is free to act within the orbit
of private property and the market. His choices are final. For his
fellow men his actions are data which they must take into account in
their own acting. The coordination of the autonomous actions of all
individuals is accomplished by the operation of the market. Society
does not tell man what to do and what not to do. There is no need to
enforce cooperation by special orders or prohibitions. Non-
cooperation penalizes itself. Adjustment to the requirements of
society's productive effort and the pursuit of the individual's own
concerns are not in conflict. Consquently no agency is required to
settle such conflicts. The system can work and accomplish its tasks
without the interference of an authority issuing special orders and
prohibitions and punishing those who do not comply.
COMPLUSION AND COERCION
Beyond the sphere of private property and the market lies the sphere
of compulsion and coercion; here are the dams which organized society
has built for the protection of private property and the market
against violence, malice and fraud. This ti the realm of constraint
as distinguished from the realm of freedom. Here are rules
discriminating between what is legal and what is illegal, what is
permitted and what is prohibited. And here is a grim machine of
arms, prisons, and gallows and the men operating it, ready to crush
those who dare to disobey.
It is important to remember that government interference always means
either violent action or the threat of such action. Government is in
the last resort the employment of armed men, of policemen, gendarmes,
soldiers, prison guards, and hangmen. The essential feature of
government is the enforcement of its decrees by beating, killing, and
imprisoning. Those who are asking for more government interference
are asking ultimately for more compulsion and less freedom.
Liberty and freedom are terms employed for the description of the
social conditions of the individual members of a market society in
which the power of the indispensable hegemonic bond, the state, is
curbed lest the operation of the market be endanagered. In a
totalitarian system there is nothing to which the attribute "free"
could be attached but the unlimited arbitrariness of the dictator.
There would be no need to dwell upon this obvious fact if the
champions of the abolition of liberty had not purposely brought about
a semantic confusion. They realized that it was hopeless for them to
fight openly and sinerely for restraint and servitude. The notions
liberty and freedom had such prestige that no propaganda could shake
their popularity. Since time immerorial in the realm of Western
civilization liberty has been considered as the most precious good.
What gave to the West its eminence was percisely its concern about
liberty, a social ideal foreign to oriental peoples. The social
philosophy of the Occident is essentially a philosophy of freedom.
The main content of the history of Europe and the communities founded
by European emigratants and their descentdants in other parts of the
world was the struggel for liberty. "Rugged" individualism is the
signature of our civilization. No open attack upon the freedom of
the individual had any prospect of success.
NEW DEFINITIONS
Thus the advocates to totalitarianism chose those tactics. They
reversed the meaning of words. They call true or genuine liberty the
condition of the individuals under a system in which they have no
right other than to obey orders. They call themselves true liberals
because they strive after such as social order. They call democracy
the Russian methods of dictatorial government. They call the labour
union methods of violence and coercion "industrial democracy." They
call freedom of the press a state of affairs in which only the
government is free to publish books and newspapers. ....
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