Customer Reviews

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

5 star:		(4)
4 star:		(0)
3 star:		(0)
2 star:		(0)
1 star:		(0)

 

 

Several years ago, I had the good fortune to actually take a class in Comparative Economic Systems from Professor Hoppe, and he used this book as his text. However, it is NOT a text book, and can be read by anyone with an interest in economic systems, political systems, East-West relations, and similar fields--and especially in the fundamental foundations of such topics. Hoppe has an interesting perspective on the field, since he grew up and was educated in West Germany, on the front lines of the Cold War. His advanced degrees (a Ph.D. and a post-Ph.D. degree called a Habilitation) in Philosophy, Economics, and Sociology, give him a broad view of the issues involved--unlike many other writers, who are overly specialized to the point that their work does not resemble reality.

Hoppe gives a careful definition of what he means by the terms "capitalism" and "socialism" and then proceeds to analyze many variants, including Russian-style Socialism, Social Democracy, Conservatism, and piecemeal Social Engineering. He also explores the provision of so-called "public goods" (i.e., national defense, justice, security), and the problems of monopolies in capitalist nations.

Make no mistake about it, though, Hoppe is a capitalist, and this book is a ringing critique of all sorts of interventions. He grounds his argument in the fundamental axiom of individual self-ownership. Each individual owns his or her own body, and all analysis flows from that starting point. Hoppe examines this theme and its variations: everyone owns everyone else (communism), some people own other people (slavery), and each person owns himself or herself (liberty). These various optional starting points are shown to be mutually exclusive, and exhastive. From there, Hoppe proceeds in a logic fashion to demonstrate that liberty is superior to the other alternatives, and then to show that the other alternatives are necessarily presupposed by all forms of socialism and interventionism.

I highly recommend thi! s book.

It is my hope that _A Theory of Socialism and Capitalism_ comes back into print as soon as possible. It is simply one of the most important books on political economy ever written, and I think other reviewers have understated the importance of Hoppe's "argumentation ethics" as the ultimate defense of capitalism.

Lew Rockwell, president of the Ludwig von Mises Institute, calls Hans-Hermann Hoppe an "international treasure." Indeed he is. Professor Hoppe is political economist and philosopher devoted to extreme rationalism and Austrian (praxeological) economics whose his work over the years has been uncompromising and logically unassailable. This is no exception.

This book is an interdisciplinary study of the "economics, politics, and ethics" of capitalism and socialism. Hoppe's axiomatic-deductive methodology is his key advantage. His unfailing adherence to a priori theory provides the correct basis for analysis of complex phenomena. This treatise, while not very long (250 pages, about 50 of which is notes and references) is broad in its treatment and packed with value. In just a page Hoppe says more than many authors will in their entire book. He makes the case for the economic superiority of capitalism while addressing the alleged problems of monopoly and "public goods." Economically, he devastates the case for socialism, whether heavily interventionist social-democracy or public ownership of resources a la Soviet Russia. His analysis of the State as an institution of legalized coercion -- influenced by the likes of Rothbard, Oppenheimer, de Jouvenel, and de la Boetie -- is simply brilliant. He also argues for a priori theory as the proper basis for economic analysis, which is always welcome.

The entire book is excellent, but I think the most important chapter is "The Ethical Justification of Capitalism and Why Socialism is Morally Indefensible." Here, Hoppe presents a praxeological justification of the private property ethic. What Hoppe has done here is frankly groundbreaking -- his defense amounts to an impossibility proof that refutes any non-homesteading/socialist ethic, since the explicit act of arguing against it implicitly agrees with private property rights. Although influenced by Murray Rothbard (and part of Hoppe's argument uses Rothbard's property argumentum a contrario), Hoppe's defense has several advantages. Principally, it is a value-free ethical system and encounters none of the staple natural rights defender's stumbling blocks. And since this ethical formulation is grounded in the axiomatic status of action and argumentation, it gives an ethical basis for action itself. Until one examines this defense, it may seem fanciful and irrelevant (indeed, even among libertarians the response to this as been largely hostile). However, I believe it to be irrefutably true, and indeed this is the case.

This book is essential for students of politics and economics. Also, all serious philosophers anywhere should read Hoppe's defense of property rights. With standard bearers such as Hoppe leading the way, liberty has good prospects.

I agree with the previous reviewer's assessment. This book provides much of the theoretical foundation for Hoppe's later work, especially his new book "Democracy: The God that Failed", which I also highly recommend. Even though this book is out of print, the entire text is available in PDF format on the Mises Institute web site (mises.org) in the Online Books section.

The importance of "A Theory of Socialism and Capitalism" cannot be overstated. This is the best critique of socialism ever written because it attacks socialism on both economic and ethical grounds. More specifically, some socialists advocate socialism on economic grounds by claiming that socialism will bring more prosperity. Other socialists admit that socialism does not lead to higher standards of living, but they still advocate socialism on ethical grounds because they believe it brings about a more just social order. Hoppe proves beyond a doubt that socialism cannot be advocated on economic or ethical grounds.

Socialism, which Hoppe defines as an institutionalized policy of property title redistribution, results in lower standards of living. Hoppe discusses the various types of socialism and the reasons why each form of socialism results in relative impoverishment. The problem common to all forms of socialism is reduced investment. The costs of investment and production rise, while the costs of consumption and leisure fall. Therefore, socialism results in less production and, consequently, less economic wealth.

Hoppe's refutation of Empiricism is marvelous. Socialists have used the methodology of empiricism to advocate socialism. Hoppe uses a self referential argument to refute empiricism. The Fundamental Statement of Empiricism (FSE) states there are only two types of scientific statements, empirical statements and analytical statements. Empirical statements are hypothetical statements that are falsifiable and say something about reality. Analytical statements aren't statements about reality, but are statements about words and signs (analytical statements are true by definition). Hoppe asks, what is the status of the FSE? Is it an empirical statement or analytical statement? If it's analytical then it doesn't say anything about reality and is just verbal quibble. If it's an empirical statement then it is only hypothetical and could be wrong. Hoppe goes into much greater detail and explains why empiricism cannot possibly apply to the social sciences.

Hoppe's Argumentation Ethic is simply brilliant. It is the best justification of capitalism ever written. I cannot possibly do Hoppe justice in this short review. Here's the bottom line: advocating a socialist ethic is self contradictory. The person arguing in favor of the socialist ethic is implicitly assuming the right to self ownership, homesteading, and contractual exchange. It is impossible to deny the pure capitalist ethic without contradicting yourself. Socialism cannot be justified on ethical grounds and cannot lead to a more just social order.

I cannot say this is an easy read, but it is well worth the effort. This book will drastically change the way you view the state and various social systems. This book will change the way you see the world. Thank you professor Hoppe, this book is a treasure.