A Theory of Socialism and Capitalism - download pdf or read online

By Hans-Hermann Hoppe

ISBN-10: 1933550732

ISBN-13: 9781933550732

Here's Hans Hoppe's first treatise in English - truly his first ebook in English - and the person who placed him at the map as a social philosopher and economist to monitor. He argued that there are just attainable archetypes in fiscal affairs: socialism and capitalism. All structures are mixtures of these kinds. The capitalist version he defines as natural safeguard of non-public estate, unfastened organization, and trade - no exceptions. All deviations from that excellent are species of socialism, with public possession and interference with alternate.

Within the constitution of socialism, he distinguishes the left and correct model. "Conservative" socialism favors excessive rules, behavioral controls, protectionism, and nationalism. The "liberal" model has a tendency extra towards outright public possession and redistribution.

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It does not solve the real underlying problem: differences in the power to control. In an economy based on private ownership, the owner determines what should be done with the means of production. In a socialized economy this can no longer happen, as there is no such owner. Nonetheless, the problem of determining what should be done with the 19 For the following cf. in particular L. v. Mises, Socialism, Indianapolis, 1981. 20 Of course, this complete outlawing of private investment, as stated under (2) only applies strictly to a fully socialized economy.

Finally, as regards the theoretically predicted changes in the social and personality structure, complaints about superiors are, of course, quite a common phenomenon everywhere. But in the countries of Russian-type socialism, where the assignment of positions in the hierarchy of caretakers is and must be entirely a political affair, such complaints about downright incompetent, unqualified, and ridiculous superiors are, even if not more loudly voiced, most frequent, most severe, and best-founded, and decent people are 52 A Theory of Socialism and Capitalism most often driven to despair or cynicism as a consequence.

It is precisely this fact that explains the lower rate of capital formation. But as long as the caretaker works and produces at all, his interest in gaining an income evidently exists, even if it cannot be used for purposes of private capital formation, but only for private consumption and/or the creation of private, nonproductively used wealth. The caretaker’s­ 25 On the free market as the necessary prerequisite for economic calculation and rational resource allocation cf. also Chapters 9, 10 below.

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A Theory of Socialism and Capitalism by Hans-Hermann Hoppe


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