Mr. Skidmore is a free-lance writer in Springfield, Missouri.
If the title of this article seems self-contradictory, it is in keeping with the political and economic language of the times. Such is the present state of semantic confusion that even the most devout atheist would be sorely tempted to accept a literal interpretation of the story of the tower of Babel. The problem may be seen in other areas perhaps, but nowhere with more disastrous results than in the conflict between individualism and collectivism.
Those who advocate varying degrees of collectivism are labeled, in the news media and in everyday speech, as "liberal," "radical," or "progressive," all of which imply eagerness to change. From the labels often applied to the increasingly socialistic trend in our "mixed economy," one might conclude that it is something new and beneficial for freedom lovers everywhere. Alas, such is not the case. The direction in which most of our "social" legislation is carrying us, is not forward, but back. If we attempt to follow the "liberal" road far enough, we shall be attempting to go back to the days of serfdom and outright slavery.
Perhaps it seems unfair to say that the ideals of collectivism are identical to those of slavery. I have drawn this conclusion, however, not from the statements of its opponents, but from those of its supporters.
Consider, for example, the slogan of socialists (and of many "liberals") the world over: "From each according to his ability, and to each according to his need." How would this slogan, as a policy, differ from slavery? The fruit of a slave’s labor is taken from him according to his ability, as judged by his master, and refusal or failure to produce for the master according to his need (again decided by the master) results in punishment for the slave.
Socialism demands a system of punishments, but not rewards, since rewarding effort does not take "from each according to his ability." True, some socialist nations do reward superior production in specific areas, but even these are only sporadic attempts to imitate the "evils" of capitalism. The second part of the slogan, "From each according to his ability and to each according to his need," assumes that the slavery implied in the first part will produce enough to satisfy all needs. The periodic famines in the communist countries indicate that this assumption is tragically wrong.
Social legislation is often portrayed as a boon to mankind whereby the means of production are taken from the hands of capitalistic "robber barons" and placed under central control for the good of all. Here again, our language shows signs of serious deterioration. Those advocating centralized control of the means of production are called "progressive" and "liberal," although they recommend, implicitly if not explicitly, a return to the times when people were considered primarily as resources.
What, exactly, are the means of production for human beings? A factory produces, but the building and operation thereof require a process of thought. The operation of a farm, a mine, a fishery, or an oil field requires systematic, rational, intellectual procedures. The basic human means of production, upon which all other human means of production depend, is the mind. The collectivist demand for centralized control of the means of production, is a demand for control of the human mind. The war on private property is in reality an attempt to destroy the distinction between people and property.
Those who advocate individual initiative, the free market, and in general, the radically unconventional notion that Man, the individual, belongs to himself as an individual, are labeled — and too often accept the slander — as "reactionary," "anachronistic," or less severely, "conservative." Admittedly, the last epithet is not invariably derogatory, although lately it has come to suggest an idolater of the Status Quo. The others, however, would seem to imply that competitive enterprise is an attempted return to a bygone era of "robber barons" which is better forgotten.
The opposite is true. Competitive enterprise or capitalism is the one economic system which is not dominated by coercion or beggary, but by voluntary production and voluntary exchange. The element of choice which distinguishes a free society from an unfree one is an individual phenomenon rather than a collective one; a slave by majority rule is still a slave, and no less so because slaves may constitute a majority. The distinguishing characteristics of capitalism are free trade and its prerequisite, private property.
Although there are various ways by which you or I can take advantage of the efforts of another, they all fall into one of two categories; we can gain at his expense, or we can gain, but not at his expense. Obviously, if we rob or defraud him, our gain is his loss. Likewise, if we beg from him, our gain is his loss, even though it is voluntarily accepted. Only if we trade is our gain also his gain. Trade, however, must be voluntary; when forced, it becomes just another form of robbery.
Competitive enterprise is based upon free trade, and is therefore the one economic system which does not require victims. This, the self-named "liberals" would have us believe, is an attempted return to a cruel, tyrannical past. I submit that the "wave of the future," if freedom is to have a future, is capitalism.
***
Conflicting Policies
Policies of interventionism and socialism tend to immobilize the population and capital of the world, thus bringing about or maintaining the world divergencies of productivity, of wealth and income. A government that nationalizes efficient industries producing for the world market and then mismanages them not only hurts the interests of its own people but also those of other nations living in a world community.
These international conflicts are inherent in the system of interventionism and socialism and cannot be solved unless the systems themselves are abolished. The principles of national welfare as conceived by our progressive planners conflict with the principles of international cooperation and division of production.
HANS F. SENNHOLZ, How Can Europe Survive?