Socialism. Людвиг фон Мизес
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in democratic institutions. And this means equality of All before the Law.
Another consideration too urges upon Liberalism the desirability of such equality. Society is best served when the means of production are in the possession of those who know how to use them best. The gradation of legal rights according to accident of birth keeps production goods from the best managers. We all know what role this argument has played in liberal struggles, above all in the emancipation of the serfs. The soberest reasons of expediency recommend equality to Liberalism. Liberalism is fully conscious, of course, that equality before the Law can become extremely oppressive for the individual under certain circumstances, because what benefits one may injure another; the liberal idea of equality is however based on social considerations, and where these are to be served the susceptibilities of individuals must give way. Like all other social institutions, the Law exists for social purposes. The individual must bow to it, because his own aims can be served only in and with society.
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The meaning of legal institutions is misunderstood when they are conceived to be anything more than this, and when they are made the basis of new claims which are to be realized at whatever cost to the aim of social collaboration. The equality Liberalism creates is equality before the Law; it has never sought any other. From the liberal point of view, therefore, criticism which condemns this equality as inadequate—maintaining that true equality is full equality of income through equal distribution of commodities—is unjustified.
But it is precisely in this form that the principle of equality is most acclaimed by those who expect to gain more than they lose from an equal distribution of goods. Here is a fertile field for the demagogue. Whoever stirs up the resentment of the poor against the rich can count on securing a big audience. Democracy creates the most favourable preliminary conditions for the development of this spirit, which is always and everywhere present, though concealed.7 So far all democratic states have foundered on this point. The democracy of our own time is hastening towards the same end.
It is a strange fact that just that idea of equality should be called unsocial which considers equality only from the point of view of the interests of society as a whole, and which wants to see it achieved only in so far as it helps society to attain its social aims; while the view which insists that
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equality, regardless of the consequences, implies a claim to an equal quota of the national income is put forward as the only view inspired by consideration for society. In the Greek city State of the fourth century the citizen considered himself lord of the property of all the subjects of the State and he demanded his part imperiously, as a shareholder demands his dividends. Referring to the practice of distributing common property and confiscated private property, Aeschines made the following comment: “The Athenians come out of the Ecclesia not as out of a political assembly but as from the meeting of a company in which the surplus profit has been distributed.”8 It cannot be denied that even to-day the common man is inclined to look on the State as a source from which to draw the utmost possible income.
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But the principle of equality in this form by no means follows necessarily from the democratic idea. It should not be recognized as valid a priori any more than any other principle of social life. Before one can judge it, its effects must be clearly understood. The fact that it is generally very popular with the masses and therefore finds easy recognition in a democratic state neither makes it a fundamental principle of democracy nor protects it from the scrutiny of the theorist.
Democracy and Social-Democracy
The view that democracy and Socialism are inwardly related spread far and wide in the decades which preceded the Bolshevist revolution. Many came to believe that democracy and Socialism meant the same thing, and that democracy without Socialism or Socialism without democracy would not be possible.
This notion sprang principally from a combination of two chains of thought, both of which sprang originally from the Hegelian philosophy of history. For Hegel world history is “progress in the consciousness of freedom.” Progress takes place in this way: “. . . the Orientals only knew that one is free, the Greek and Roman world that some are free, but we know that all men are free as such, that man is free as man.”9 There is no doubt that the freedom of which Hegel spoke was different from that for which the radical
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politicians of his day were fighting. Hegel took ideas which were common to the political doctrines of the epoch of enlightenment and intellectualized them. But the radical young Hegelians read into his words what appealed to them. For them it was certain that the evolution to Democracy was a necessity in the Hegelian sense of this term. The historians follow suit. Gervinus sees “by and large in the history of humanity,” as “in the internal evolution of the states,” “a regular progress . . . from the spiritual and civil freedom of the single individual to that of the Several and the Many.”10
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The materialist conception of history provides the idea of the “liberty of the many” with a different content. The Many are the proletarians; they must necessarily become socialists because consciousness is determined by the social conditions. Thus evolution to democracy and evolution to Socialism are one and the same thing. Democracy is the means towards the realization of Socialism, but at the same time Socialism is the means towards the realization of democracy. The party title, “Social Democracy,” most clearly expresses this co-ordination of Socialism and democracy. With the name democracy the socialist workers’ party took over the spiritual inheritance of the movements of Young Europe. All the slogans of the pre-March11 radicalism are to be found in the Social-Democratic Party programmes. They recruit, for the party, supporters who feel indifferent to or are even repulsed by the demands of Socialism.
The relation of Marxist Socialism to the demand for democracy was determined by the fact that it was the Socialism of the Germans, the Russians, and the smaller nations which lived under the Austro-Hungarian monarchy and the empire of the Tsars. Every opposition party in these more or less autocratic states had to demand democracy first of all, so as to create the conditions that must precede the development of political activity. For the Social Democrats this practically excluded democracy from discussion; it would never have done to cast a doubt on the democratic ideology pro foro externo.
But the question of the relation between the two ideas expressed in its double name could not be completely suppressed within the party. People began by dividing the problem into two parts. When they spoke of the coming socialist paradise they continued to maintain the interdependence of the terms and even went a little farther and said that they were ultimately one. Since one continued to regard democracy as in itself a good thing, one could not—as a faithful socialist awaiting absolute salvation in the paradise-to-be—arrive at any other conclusion. There would be something wrong
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with the land of promise if it were not the best imaginable from a political point of view. Thus socialist writers did not cease to proclaim that only in a socialist society could true democracy exist. What passed for democracy in the capitalist states was a caricature designed to cover the machinations of exploiters.
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But although it was seen that Socialism and democracy must meet at the goal, nobody was quite certain whether they were to take the same road. People argued over the problem whether the realization of Socialism—and therefore, according to the views just discussed, of democracy too—was to be attempted through the instrumentality of democracy or whether in the struggle one should deviate from the principles of democracy. This was the celebrated controversy about the dictatorship of the proletariat; it was the subject of academic discussion in Marxist literature up to the time of the Bolshevist revolution and has since become a great political problem.