Liberalism

Summary

Liberalism is Ludwig von Mises's short statement of the classical liberal program, published in German as Liberalismus in 1927. Ralph Raico translated it into English in 1962 under the title The Free and Prosperous Commonwealth; later editions restored the title Liberalism, adding the subtitle In the Classical Tradition. Where Mises's earlier Socialism had criticized collectivism at great length, this book sets out positively what liberalism, in the nineteenth-century European sense, stands for. Mises presents liberalism as a doctrine concerned with the material welfare of human beings and the conditions of peaceful social cooperation, rather than with any promise of inner happiness. In the first chapter he names private property in the means of production as its central demand and derives from it the others: freedom, peace, equality before the law, toleration and limited government. He argues that inequality of wealth serves society by directing resources to those who satisfy consumers, that democracy allows peaceful changes of government and so avoids civil war, and that the state should be confined to protecting life, liberty and property. In this chapter he also discusses the doctrine of force and the Fascist movement in Italy, which he judged a temporary emergency measure whose reliance on violence would prove self-defeating; the passage has been much debated. The second chapter applies these principles to economic policy, contrasting the market economy with socialism and with interventionism, and discussing cartels, monopolies and bureaucratic management. The third chapter, on foreign policy, argues for free trade, free migration and the right of self-determination, and maintains that economic nationalism and the conquest of overseas territories lead to war. A further chapter examines political parties, which Mises criticizes for representing special interests, and the book closes with reflections on the future of liberalism, which he believed depended on persuading the public by reasoned argument. The book was little noticed when it appeared, as liberal ideas were in retreat across Europe. After Raico's translation it found readers in the postwar American revival of classical liberal and libertarian thought, and it is often recommended as the most accessible introduction to Mises's political views.

Top Lessons

• Property and peace

  Mises argues that private property and the division of labor make peaceful cooperation possible. Students can trace how he links economic and political questions.

• Democracy as a peaceful method

  Mises defends democracy chiefly as a way to change rulers without violence. The argument invites discussion of what democracy is for.

• Persuasion over force

  Mises insists that liberal ideas can prevail only by convincing people. Students can consider the role of argument in public life.

Verified Quotes