By Hans-Hermann Hoppe

Here's Hans Hoppe's first treatise in English - really his first publication in English - and the person who positioned him at the map as a social philosopher and economist to monitor. He argued that there are just attainable archetypes in fiscal affairs: socialism and capitalism. All platforms are mixtures of these forms. The capitalist version he defines as natural safety of non-public estate, loose organization, and trade - no exceptions. All deviations from that perfect are species of socialism, with public possession and interference with alternate.

Within the constitution of socialism, he distinguishes the left and correct model. "Conservative" socialism favors excessive legislation, behavioral controls, protectionism, and nationalism. The "liberal" model has a tendency extra towards outright public possession and redistribution.

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40 What are the central features of socialism social-democratic-style? There are basically two characteristics. First, in positive contradistinction to the traditional Marxist-style socialism, social-democratic socialism does not outlaw private ownership in the means of production and it even accepts the idea of all means of production being privately owned—with the exception only of education, traffic and communication, central banking, and the 39 Indicators for the social-democratization of the socialist movement are the rise of the socialist party and the corresponding decline of the orthodox communist party in France; the emergence of a social-democratic party as a rival to the more orthodox labour party in Great Britain; the moderation of the communists in Italy as the only remaining powerful communist party in Western Europe toward an increasingly social-democratic policy; and the growth of the socialist-social-democratic parties in Spain and Portugal under Gonzales and Soares, both with close ties to the German SPD.

It does not need much comment to see how this increases the risk, or the cost of producing, and hence lowers the rate of investment. With this statement a first step in the analysis that follows has already been taken. What are the economic, in the colloquial sense Hans-Hermann Hoppe 63 of the term, consequences of adopting a system of social-democratic socialism? After what has just been said, it is probably no longer altogether surprising to hear that at least as regards the general direction of the effects, they are quite similar to those of traditional Marxist-type socialism.

1963. 35 Cf. note 49 below on the assessment of the somewhat different practice. Hans-Hermann Hoppe 57 to the capitalists), by adopting it, socialism’s ultimate success would only become more assured. Both of these forces co-existed within the socialist movement, though their relationship was at times quite strained, until the Bolshevik Revolution of October, 1917 in Russia. 36 The Russian events changed this. With Lenin in the lead, for the first time the revolutionary socialists realized their program and the socialist movement as a whole had to take a stand vis à vis the Russian experiment.

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A Theory of Socialism and Capitalism by Hans-Hermann Hoppe
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