A Theory of Socialism and Capitalism Economics, Politics, and Ethics

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The Ludwig von Mises Institute's Studies in Austrian Economies

LUD\\/1G

~~ INSTITUTE

A Theory of Socialism and Capitalism Economics, Politics, and Ethics

Hans-Hermann Hoppe Department 0/ Economics University 0/ Nevada, Las Vegas

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Springer Science+Business Media, LLC

Library of Congress Cataloging-in-Publieation Data Hoppe, Hans-Hermann. A theory of socialism and capitalism : economics, politics, and ethics / by Hans-Hermann Hoppe. p. cm. IncIudes index. 1. Socialism. 2. Capitalism. 3. Property 4. Comparative economics. 5. Comparative government. I. Title. HX73.H67 1988 306'.3--dcI9 88-14066 CIP

ISBN 978-94-015-7851-6 ISBN 978-94-015-7849-3 (eBook) DOI 10.1007/978-94-015-7849-3 Copyright © 1989 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1989. Softcover reprint ofthe hardcover 1st edition 1989

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC

Contents About the Author

vii

Acknowledgments

ix

1

Introduction . . . . . . . . . . . . . . . . . . . . . . .

.1

2

Property, Contract, Aggression, Capitalism, Socialism

.7

3

Socialism Russian Style . . . . . . . . . . . . . . . . . . . . . 19

4

Socialism Social-Democratic Style . . . . . . . . . . . . . . . 39

5

The Socialism of Conservatism . .

. . . . . . . . . 65

6

The Socialism of Social Engineering and the Foundations of Economic Analysis . . . .

. . . . . . . . . 95

7

8

9 10

The Ethical Justification of Capitalism and Why Socialism is Morally Indefensible ..

. . . . . . 127

The Socio-Psychological Foundations of Socialism or the Theory of the State . . . . . . . . . . . . . .

. 145

Capitalist Production and the Problem of Monopoly

.167

Capitalist Production and the Problem of Public Goods

.187

Notes

.211

References

.259

Index

.273

About the Author Hans-Hermann Hoppe was born on September 2, 1949, in Peine, West Germany. He attended the Universitatet des Saarlandes, Saarbruecken, the Goethe-Universitaet, Frankfurt/M., and the University of Michigan, Ann Arbor, for studies in Philosophy, Sociology, History, and Economics. He earned his Ph.D. (Philosophy, 1974) and his "Habilitation" (Sociology and Economics, 1981), both from the Goethe-Universitaet, Frankfurt/M. He taught at several German universities as weil as at the Johns Hopkins University Bologna Center for Advanced International Studies, Bologna, Italy. He is presently a Professor of Economics at the University of Nevada, Las Vegas and a Senior Fellow of the Ludwig von Mises Institute. Hoppe is the author of Handeln und Erkennen (Bern 1976); Kritik der

kausalwissenschaftlichen Sozialforschung (Opladen 1983); Eigentum, Anarchie und Staat (Opladen 1987) and numerous articles on philosophy, economics and the social sciences.

Acknowledgements Three institutions assisted me while