If you haven't noticed, one of the main goals of the Obama administration is the redistribution of wealth and equalization of income between the wealthy and the poor. This is not speculation. During the last campaign the White House authenticated a tape of the president previously promoting redistribution and only recently he has announced equalization as a major goal. His raising of the minimum wage for federal workers is precisely a move in that direction.
Certainly the goal is a noble one, born of not only sympathy for those less fortunate and perhaps even desperate. We find this throughout history. Solon, deemed one of the wisest, if not the wisest man of ancient Greece, certainly tried. It is a basis of many economic philosophies, including for centuries the Catholic Church (and before that the primitive church). It is the preeminent goal of Marxism, socialism, Jacobinism, collectivists, levelers and all like -isms. It is certainly one of the goals of modern progressivism or liberalism.
It should not be thought that these political movements or philosophies of the left have an end game different than most of those on the right. They often want the same things but have different views of how to get there. Libertarianism sometimes seems associated with the right or the left, depending on the issue. Certainly the libertarianism to which I claim to lean does not associate itself with either the right or the left, although the thinker I am considering today certainly seemed more opposed to the left, particularly socialism, while also eschewing the right as well as being dedicated to conserving while at the same time, in reality, being just a slower form of progressivism. For Friedrich Hayek, to whom I have referred many times in this blog, conservatism is necessary to slow many of the worst aspects of socialism, but is no answer itself.
I have read Hayek as close as my free time has permitted, in fact, transcribing hundreds of pages of his works word for word and reading others. Many people who know of him are familiar with only one book, The Road to Serfdom (TRTS), which is a political, not an economic or scientific tract, as are many of Hayek's work. I say familiar because I doubt many who have picked it up have actually read it. Others know him from a video pitting an avatar of him in a rap battle against his economic nemesis (but, to some degree, friend), the far more famous and successful, John Keynes. TRTS is an excellent, if boring to read, book. TRTS is far from my favorite or, in my opinion, the most valuable of his works, from which comes the best explanation of capitalism, liberty and politics that I have ever read. The award would go to his Constitution of Liberty (COL), a much larger work where he goes much deeper in explaining the reasons for his beliefs. It is a deeply scholarly work. He is certainly not the only one to write on what we call libertarianism (he did not like the word, but preferred classical liberalism).
I find that many commentators who write about him do not understand him and associate him with Ayn Rand or other more "strict" libertarians (she didn't really prefer that title either - her philosophy was called Objectivism). But, though there are more similarities than differences, certainly those differences do exist.
I am not going to even begin to attempt in the little space I give myself here to make any attempt at a comprehensive explanation of Hayek or differentiate him from anyone else. But, I would like to delve into COL and transmit some of his thoughts on the necessity of their being different economic success. That too cannot be comprehensive, and the best thing I can do is encourage others to get a copy and read it slowly themselves. I don't expect that, but I will recommend it and it is the point of quoting him here. In reading Hayek, I was constantly amazed how his thoughts seemed timeless, as appropriate to historic periods as they are to modern times. I found that true in the selections I chose below. I plan on going back to him several times for the next few months on related topics. But, this selection should suffice for now.
The following is edited, that is, sentences plucked out of paragraphs, and often broken up with ellipses where I thought necessary in order to try to use his words to make a somewhat pithier explanation. I will, just to help a little, give a one short paragraph synopsis first:
It is necessary and better for poor people and nations that other people and nations are economically superior to them; this is the way the world progresses. To artificially stop it through coercion - directly by physical force or indirectly by law, not only impedes the natural progress and success of man in general, but particularly those who are poorer. I'll let him do the rest to explain why many people want Obama to "fail." Because, in order for us to succeed, and that includes those of whom he is most concerned, he must.
*****
Not all that is the result of the historical development of the West can or should be transplanted to other cultural foundation; and whatever kind of civilization will in the end emerge in those parts under Western influence may sooner take appropriate forms if allowed to grow rather than if it is imposed from above.
Certainly the goal is a noble one, born of not only sympathy for those less fortunate and perhaps even desperate. We find this throughout history. Solon, deemed one of the wisest, if not the wisest man of ancient Greece, certainly tried. It is a basis of many economic philosophies, including for centuries the Catholic Church (and before that the primitive church). It is the preeminent goal of Marxism, socialism, Jacobinism, collectivists, levelers and all like -isms. It is certainly one of the goals of modern progressivism or liberalism.
It should not be thought that these political movements or philosophies of the left have an end game different than most of those on the right. They often want the same things but have different views of how to get there. Libertarianism sometimes seems associated with the right or the left, depending on the issue. Certainly the libertarianism to which I claim to lean does not associate itself with either the right or the left, although the thinker I am considering today certainly seemed more opposed to the left, particularly socialism, while also eschewing the right as well as being dedicated to conserving while at the same time, in reality, being just a slower form of progressivism. For Friedrich Hayek, to whom I have referred many times in this blog, conservatism is necessary to slow many of the worst aspects of socialism, but is no answer itself.
I have read Hayek as close as my free time has permitted, in fact, transcribing hundreds of pages of his works word for word and reading others. Many people who know of him are familiar with only one book, The Road to Serfdom (TRTS), which is a political, not an economic or scientific tract, as are many of Hayek's work. I say familiar because I doubt many who have picked it up have actually read it. Others know him from a video pitting an avatar of him in a rap battle against his economic nemesis (but, to some degree, friend), the far more famous and successful, John Keynes. TRTS is an excellent, if boring to read, book. TRTS is far from my favorite or, in my opinion, the most valuable of his works, from which comes the best explanation of capitalism, liberty and politics that I have ever read. The award would go to his Constitution of Liberty (COL), a much larger work where he goes much deeper in explaining the reasons for his beliefs. It is a deeply scholarly work. He is certainly not the only one to write on what we call libertarianism (he did not like the word, but preferred classical liberalism).
I find that many commentators who write about him do not understand him and associate him with Ayn Rand or other more "strict" libertarians (she didn't really prefer that title either - her philosophy was called Objectivism). But, though there are more similarities than differences, certainly those differences do exist.
I am not going to even begin to attempt in the little space I give myself here to make any attempt at a comprehensive explanation of Hayek or differentiate him from anyone else. But, I would like to delve into COL and transmit some of his thoughts on the necessity of their being different economic success. That too cannot be comprehensive, and the best thing I can do is encourage others to get a copy and read it slowly themselves. I don't expect that, but I will recommend it and it is the point of quoting him here. In reading Hayek, I was constantly amazed how his thoughts seemed timeless, as appropriate to historic periods as they are to modern times. I found that true in the selections I chose below. I plan on going back to him several times for the next few months on related topics. But, this selection should suffice for now.
The following is edited, that is, sentences plucked out of paragraphs, and often broken up with ellipses where I thought necessary in order to try to use his words to make a somewhat pithier explanation. I will, just to help a little, give a one short paragraph synopsis first:
It is necessary and better for poor people and nations that other people and nations are economically superior to them; this is the way the world progresses. To artificially stop it through coercion - directly by physical force or indirectly by law, not only impedes the natural progress and success of man in general, but particularly those who are poorer. I'll let him do the rest to explain why many people want Obama to "fail." Because, in order for us to succeed, and that includes those of whom he is most concerned, he must.
*****
Not all that is the result of the historical development of the West can or should be transplanted to other cultural foundation; and whatever kind of civilization will in the end emerge in those parts under Western influence may sooner take appropriate forms if allowed to grow rather than if it is imposed from above.
[O]ur freedom is
threatened in many fields because of the fact that we are much too ready to
leave the decision to the expert or to accept too uncritically his opinion
about a problem of which he knows intimately only one little aspect. . . .
[I]f we want to convince those who do not already share our
moral suppositions, we must not simply take them for granted. We must show that
liberty is not merely one particular value but that it is the source and
condition of most moral values.
Liberty in practice depends on very prosaic matters, and
those anxious to preserve it must prove their devotion by their attention to
the mundane concerns of public life and by the efforts they are prepared to
give to the understanding of issues that the idealist is often inclined to
treat as common, if not sordid.
Th[e] confusion of liberty as power with liberty in its
original meaning inevitably leads to the identification of liberty with wealth,
and this makes it possible to exploit all the appeal which the word “liberty”
carries in the support for a demand for the redistribution of wealth. Yet,
though freedom and wealth are both good things which most of us desire and
though we often need both to obtain what we wish, they still remain different.
Above all, however, we must recognize that we may be free
and yet miserable. Liberty
does not mean all good things or the absence of all evils.
By “coercion” we mean such control of the environment or
circumstances of a person by another that, in order to avoid greater evil, he
is forced to act not according to a coherent plan of his own but to serve the
ends of another. . . .
Coercion . . . cannot be altogether avoided because the only
way to prevent it is by the threat of coercion. Free society has met this
problem by conferring the monopoly of coercion the state and by attempting to
limit this power of the state to instances where it is required to prevent
coercion by private persons.
The Socratic maxim that the recognition of our ignorance is
the beginning of wisdom has profound significance for out understanding of
society. . . It might be said that civilization begins when the individual in
pursuit of his ends can make use of more knowledge than he has himself acquired
and when he can transcend the boundaries of his ignorance by profiting from
knowledge he does not himself possess.
Many of the utopian constructions are worthless because they
follow the lead of the theorists in assuming that we have perfect knowledge.
In a sense it is true, of course, that man has made his
civilization. This does not mean, however, that civilization is the product of
human design, or even that man knows what its functioning or continued
existence depends upon.
If we are to advance, we must leave room for a continuous
revision of our present conceptions and ideals which will be necessitated by
further experience. We are as little able to conceive what civilization will
be, or can be, five hundred or even fifty years hence as our medieval
forefathers or even our grandparents were able to foresee our manner of life
today.
The scientific methods of the search for knowledge are not
capable of satisfying all society’s needs for explicit knowledge. Not all the
knowledge of the ever changing particular facts that man continually uses lends
itself to organization or systematic exposition; much of it exists only
dispersed among countless individuals.
The more men know, the smaller the share of all that
knowledge becomes that any one mind can absorb.
Liberty is essential in order to leave room for the
unforeseeable and unpredictable; we want it because we have learned to expect
from it the opportunity of realizing many of our aims.
Humiliating to human pride as it may be, we must recognize
that the advance and even the preservation of civilization are dependent upon a
maximum of opportunity for accidents to happen.
Man learns by the disappointment of expectations. Needless
to say, we ought not to increase the unpredictability of events by foolish
human institutions. So far as possible, our aim should be to improve human
institutions so as to increase the chances of correct foresight. Above all,
however, we should provide the maximum of opportunity for unknown individuals
to learn of facts that we ourselves are yet unaware of and to make use of this
knowledge in their actions.
The argument for the freedom of some therefore applies to
the freedom of all. But it is still better for all that some should be free
than none and also that many enjoy full freedom than that all have a restricted
freedom.
Freedom of action, even in humble things, is as important as
freedom thought. . . .
It is a fact which we must recognize that even what we
regard as good or beautiful is changeable—if not in any recognizable manner
that would entitle us to take a relativistic position, then in the sense that
in many respects we do not know what will appear as good or beautiful to
another generation.
It is, of course, a mistake to believe that we can draw
conclusions about what our values ought to be simply because we realize that
they are a product of evolution. But we by the same evolutionary forces that
have produced our intelligence. All that we can know is that the ultimate
decision about what is good or bad will be made not by individual human wisdom
by individual human wisdom by the decline of the groups that have adhered to
the “wrong” beliefs.
At most, we understand only partially whey the values we
hold or the ethical rules we observe are conducive to the continued existence
of society. Nor can we be sure that under constantly changing conditions all
the rules that have proved to be conducive to the attainment of a certain end
will remain so. Though there is a presumption any established social standard
contributes in some manner to the preservation of civilization, our only way of
confirming this is to ascertain whether it continues to prove itself in
competition with other standards observed by other individuals or groups.
[C]ompetition on which the process of selection rests must
be understood in the widest sense. It involves competition between organized
and unorganized groups no less than competition between individuals. . . The
endeavor to achieve certain results by co-operation and organization is as much
a part of competition as individual
efforts. . . It is only when . . . exclusive rights are conferred on the
presumption of superior knowledge of particular individuals or groups that the
process ceases to be experimental and beliefs that happen to prevalent at a
given time may become an obstacle to the advancement of knowledge.
The argument for liberty is not an argument against
organization, which is one of the most powerful means that human reason can
employ, but an argument against all exclusive, privileged, monopolistic
organization, against the use of coercion to prevent others from trying to do
better. . . To turn the whole or society into a single organization built and
directed according to a single plan would be to extinguish the very forces that
shaped the individual human minds that planned it.
The rationalist who desires to subject everything to human
reason is thus faced with a real dilemma. The use of reason aims at control and
predictability. But the process of the advance of reason rests on freedom and
the unpredictability of human action. Those who extol the powers of human
reason usually see only one side of that interaction of human thought and
conduct in which reason is at the same time used and shaped. They do not see
that, for advance to take place, the social process from which the growth of
reason emerges must remain free from its control.
If it is true that evolution does not always lead to better
things, it is also true that, without the forces which produce it, civilization
and all we value—indeed, almost all that distinguishes man from beast—would
neither exist nor could long be maintained.
It is not in this sense that social evolution can be called
progress, for it is not achieved by human reason striving by known means toward
a fixed aim. It would be more correct to think of progress as a process of
formation and modification of the human intellect, a process of adaptation and
learning in which not only the possibilities known to us but also our values
and desires continually change. As progress consists in the discovery of the
not yet known, its consequences must be unpredictable. It always leads into the
unknown, and the most we can expect is to gain an understanding of the kind of
forces that bring it about. . . Human reason can neither predict nor
deliberately shape its own future. Its advances consist in finding out where it
has been wrong.
Even in the field where the search for new knowledge is most
deliberate, i.e., in science, no man can predict what will be the consequences
of his work. . . It is knowing what we have not known before that makes us
wiser men.
But often it also makes us sadder men. Though progress
consists in part in achieving things we have been striving for, this does not
mean that we shall like all its results or that all will be gainers. And since
our wishes and aims are also subject to change in the course of the process, it
is questionable whether the statement has a clear meaning that the new state of
affairs that progress creates is a better one. . . The question whether, if we
had to stop at our present stage of development, we would in any significant
sense be better off or happier than if we had stopped a hundred or a thousand
years ago is probably unanswerable.
There can therefore be little doubt that Adam Smith was
right when he said: “It is in the progressive state, while society is advancing
to the further acquisition, rather than when it has acquired its full complement
of riches, that the condition of the labouring poor, of the great body of
people, seems to be happiest and the most comfortable. It is hard in the
stationary, and miserable in the declining state.
[N]ew knowledge and its benefits can spread only gradually,
and the ambitions of the many will always be determined by what is as yet
accessible only to the few. It is misleading to think of those new
possibilities as if they were, from the beginning, a common possession of
society which its members could deliberately share; they become a common
possession only through that slow process by which the achievements of the few
are made available to the many. This is often obscured by the exaggerated
attention usually given to a few conspicuous major steps in the development.
But, more often than not, major discoveries merely open new vistas, and long
further efforts are necessary before the new knowledge that has sprung up
somewhere can be put to general use. It will have to pass through a long course
of adaptation, selection, combination, and improvement before full use can be
made of it. This means that there will always be people who already benefit
from new achievements that have not yet reached others.
Progress at such a fast rate cannot proceed on a uniform
front but must take place in echelon fashion, with some far ahead of the rest.
The reason for this is concealed by our habit of regarding economic progress
chiefly as an accumulation of ever greater quantities of goods and equipment.
But the rise of our standard of life is due at least as much to an increase in
knowledge which enables us not merely to consume more of the same things but to
use different things, and often things we not even know before.
[T]he new things will often become available to the greater
part of the people only because for
some time they have been the luxuries of the few.
A large part of the expenditure of the rich, though not
intended for that end, thus serves to defray the cost of the experimentation
with the new things that, as a result, can later be made available to the poor.
Even the poorest today owe their relative material
well-being to the results of past inequality.
The contention that in any phase of progress the rich, by
experimenting with new styles of living not yet accessible to the poor, perform
a necessary service without which the advance of the poor would be very much
slower will appear to some as a piece of farfetched and cynical apologetics.
Yet . . . that is fully valid and . . . a socialist society would in this
respect have to imitate a free society. It would be necessary in a planned
economy (unless it could simply imitate the example of other more advanced
societies) to designate individuals whose duty it would be to try out the
latest advances long before they were made available to the rest.
In the long run, the existence of groups ahead of the rest
is clearly an advantage to those who are behind, in the same way that , if we
could suddenly draw on the more advanced knowledge which some other men on a
previously unknown continent or on another planet had gained under more
favorable conditions, we would all profit greatly.
[E]ven countries or groups which do not possess freedom can
profit from many of its fruits is one the reasons why the importance of freedom
is not better understood.
At any given moment we could improve the positions of the
poorest by giving them what we took from the wealthy. But while such an
equalizing of the positions in the column of progress would temporarily quicken
the closing-up of the ranks, it would, before long, slow down the movement of
the whole and in the long run held back those in the rear.
The individual does not have it in his power to choose to
take part in progress or not; and always it not only brings new opportunities
but deprives many of much they want, much that is dear and important to them.
To some it may be sheer tragedy, and to all those who would prefer to live on
the fruits of past progress and not take part in its future course, it may seem
a curse rather than a blessing.
The changes to which such people must submit are part of the
cost of progress, an illustration of the fact that not only the mass of men
but, strictly speaking, every human being is led by the growth of civilization
into a path that is not of his own choosing. If the majority were asked their
opinion of all the changes involved in progress, they would probably want to
prevent many of its necessary conditions and consequences and thus ultimately
stop progress itself. . . This does not mean, however, that the achievement of
most things men actually want does not depend on the continuance of that
progress which, if they could, they would probably stop by preventing the
effects which do not meet with their immediate approval.
Regardless of whether from some higher point of view our
civilization is really better or not, we must recognize that its material
results are demanded by practically all who have come know them. Those people
may not wish to adopt our entire civilization, but they certainly want to be
able to pick and choose from it whatever suits them. We may regret, but cannot disregard, the fact
that even where different civilizations are still preserved and dominate the
lives of the majority, the leadership has fallen almost invariably into the
hands of those who have gone furthest in adopting the knowledge and technology
of Western civilization.
At some future date . . .we may again have it in our power
to choose whether or not we want to go ahead at such a rate. But, at this
moment, when the greater part of mankind has only just awakened to the
possibility of abolishing starvation, filth, and disease; when it has just been
touched by the expanding wave of modern technology after centuries of millennia
of relative stability; and as first reaction has begun to increase in number at
a frightening rate, even a small decline in our rate of advance might be fatal
to us.