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| Laissez
Faire in History -- Fact and Fiction |
| [Reprinted from the
Henry George News, October, 1951] |
To examine the definition and decadence of laissez faire is
to be confronted with a basic problem of social existence-today as well
as when the phrase was coined. That problem is, How should
government function in the production for social maintenance?
The conflicting ideologies of the current scene, with the nations
gearing for moral conflict, makes crystal clear that the solution, if
one is to be found, rests on an adequate appreciation of the individual
and the social order. This prospect of a staggering catastrophe, which
the people of 1951 face, is not a circumstance of sudden creation.
Rather, it is the fruit of a century or two of endeavor to predicate the
functioning of government on the antithetical doctrines of "natural
rights" and "socially-derived rights." These doctrines
take generically opposing views as to the place of the individual and
organized society. Here are some facts with which the attempted answer
must reckon.
"Mature individuals unite to form families, hut these families
beget immature individuals," wrote Ernest Hocking of Harvard, in
The Lasting Elements of Individualism. "No individual or
set of individuals can be said to have founded 'the family' as an
institution. So with the state, dependency seems to run both ways -- the
citizen depends upon the state, the state depends upon its citizen . . .
the state is prior to the individual and the individual is prior to the
state; here is an alternating current or cycle in which neither can
claim absolute priority."
Later in his hook, Mr. Hocking comments, men are not born as
independent, self-sufficient entities; -- they grow slowly toward
separateness of being and destiny . . . Hence, there was law in the
world long before there were individual rights."
In England in the first quarter of the nineteenth century there
developed and became most vocal, proponents of the doctrine of "Natural
Rights of Man." These proponents were opposed to the extensive
legislative control of men in industry and commerce already secured and
being further sought by the ruling "conservative" class. The
program of these proponents of natural rights became designated as "individualism."
In their organized political activities they were tagged with the label
"liberals." Their estimate of government in the affairs of men
was declared to be expressed in the concept of laissez faire:-let men
alone in industry and commerce.
Incidentally, it may be noted here that during the contest between the
liberals and conservatives, there emerged a group of socialists known as
the Fabians. Their contention was that, in the interests of the best
welfare of all the people, the state should own all the factors of
production, thus controlling production for social maintenance.
For a century and a half, writers of lasting fame have debated these
differing concepts and theories of liberalism, conservatism, and
socialism. Which has acquired the ascendancy in the past, and seems
presently to command the greater allegiance of mankind -- much to the
apprehension of the advocates of "individualism"-is
self-evident. Recognizing these facts, it is natural for one to wonder
why "individualism," as advocated by the liberals, has failed
to secure greater consideration in the present affairs of men.
Hocking's contention is that "liberalism"-of which "individualism"
is the kernel-failed for three important reasons.
1. FAILURE TO ACHIEVE SOCIAL UNITY. Unity
is not natural. Experience proves that it has become progressively hard
to get. It is not a habit inherited from feudal society. Society is not
an organism, as some contend, since, as is not the case with cells in a
true organism, individuals in society can set up an independent life
within the society. The larger the social group the more difficult the
achievement of unity.
After pointing out how the political state, because of its division and
sectional interests, has no such unity of purpose as an operating
railroad, and also pointing out how business finds it impossible to be
concerned with interest in the rank and file, the author concludes that
"action as a whole and for the whole is beyond the reach of purely
individualistic enterprise."
2. RIGHTS WITHOUT DUTIES. "'Right'
has become attached to the ambiguous word 'natural'; and a natural right
would appear to be one with which a person is born, one which he cannot
help having, one for which he has paid no price, and has no price to
pay; furthermore, one of which he cannot divest himself, and of which no
one can deprive him. This latter property is conveyed in the term
'inalienable'.
"For the mature person, there are no unconditional rights.
And the assumption that there are such has passed with the altered times
from a useful encouragement to a pernicious flattery.
The conditions of all right are moral conditions; without goodwill all
rights drop off."
After discussing John Locke, Hocking declares, "being born free
and equal meant
simply an immunity from being exploited; and that
this situation carries with it an imperative duty to refrain from
exploiting anyone else. To claim a right is at the same moment to
attribute it to others and their duty to my right is reciprocated in my
duties to their rights. For every right received, then, there are
innumerable duties payable. That right of 'equality' which defends me
from arrogance of a thousand pretending superiors defends me a hundred
thousand against my own arrogance. Hence, the cry of 'my right' should
never have been uttered except with the undertone of a vast humility."
After illustrating the many ways in which many people convert "inalienable
rights" into privileges at the expense of the community, the author
concludes, "when the common stock of America . . . is thus
corrupted through long, insidious schooling of rights receivable and
duty free, liberalism has not merely shown a flaw, it has undermined
itself and prepared the way for a general regime of dependence."
3. EMOTIONAL DEFECT. Man is neither good
nor bad. In the course of his growth he becomes something of both. "No
strong social order can be built on the basis of the amiable sentiments
alone."
Liberalism has bred a race of self-confident, vigorous men, but it has
not bred a race that can be trusted with power. "It may be a half
truth, but hardly deniable, that the dominant note in American education
has produced a nation of spoiled and juvenile minds, unable to think,
devoid of the power of self-criticism and therefore incapable of mature
political responsibility."
Society is a composite of individuals each with desires-natural and
acquired-for which all but the most unusual individuals are willing to
labor to satisfy. Is not that society likely to be the best wherein the
individual is vouchsafed the greatest freedom to undertake the labor
which offers him the best fulfillment of his desires? That is but a
recognition of the fundamental premise of economics that "man seeks
to satisfy his desires with the least possible effort." Along with
that, one must recognize that man's strength is in his association.
Realizing the paths along which man's made inadequately-conditioned
potentialities lead him is it not inevitable that if such association is
to be most fruitful for the well-being of the social unit-predicated on
the best well-being of each individual in that social unit-directive
influences will have to be agreed upon? Will those directive influences
not have to seek to establish an element of equality of opportunity in
that association? Is not that, then, the function of government in
production for social maintenance?
Has the seventeenth-century idea, of which laissez faire is supposed to
be the epitome, come into collision with the twentieth-century facts of
life?
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