A Theory of Socialism and Capitalism by Hans-Hermann Hoppe

By Hans-Hermann Hoppe

This is Hans Hoppe's first treatise in English - really his first ebook in English - and the person who positioned him at the map as a social philosopher and economist to monitor. He argued that there are just attainable archetypes in monetary affairs: socialism and capitalism. All structures are combos of these kinds. The capitalist version he defines as natural safety of non-public estate, loose organization, and alternate - 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 legislation, behavioral controls, protectionism, and nationalism. The "liberal" model has a tendency extra towards outright public possession and redistribution.

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Extra resources for A Theory of Socialism and Capitalism

Sample text

It means that however low the presently fixed degree of expropriation might be, his productive efforts take place under the ever-present threat that in the future the income-share which must be handed over to society will be raised unilaterally. It does not need much comment to see how this increases the risk, or the cost of producing, and hence lowers the rate of investment. With this statement a first step in the analysis that follows has already been taken. What are the economic, in the colloquial sense Hans-Hermann Hoppe 63 of the term, consequences of adopting a system of social-democratic socialism?

Instead of simply letting individuals do what they want, capitalism coordinates actions by constraining people to respect previous user-ownership. 22 It hardly deserves comment that this difference, too, is of the utmost importance. But it is not, as Marxist socialism would like us to believe, a difference between social planning and no planning at all; on the contrary, as soon as the coordinating mechanisms of socialism and capitalism are brought into the open and reconstructed, socialism’s claim to greater efficiency immediately begins to lose much of its credibility, and the opposite thesis appears to be more convincing.

Evidently, a person’s position in the production structure has an immediate effect on his income, be it in terms of exchangeable goods, psychic income, status, and the like. Accordingly, as people want to improve their income and want to move into more highly evaluated positions in the hierarchy of caretakers, they increasingly have to use their political talents. It becomes irrelevant, or is at least of reduced importance, to be a more efficient producer or contractor in order to rise in the hierarchy of income recipients.

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