Showing posts with label fascism. Show all posts
Showing posts with label fascism. Show all posts

Tuesday, December 24, 2024

What Corporatism Actually Is

"The fundamental idea both of guild socialism and of corporativism is that every branch of business forms a monopolistic body, the guild or corporazione. This entity enjoys full autonomy; it is free to settle all its internal affairs without interference of external factors and of people who are not themselves members of the guild. The mutual relations between the various guilds are settled by direct bargaining from guild to guild or by the decisions of a general assembly of the delegates of all guilds. In the regular course of affairs the government does not interfere at all. Only in exceptional cases, when an agreement between the various guilds cannot be attained, is the state called in.

"[The guild socialists ... aimed at self-government of each branch of industry; they wanted, as the Webbs put it, “the right of self-determination for each vocation.”  ...[T]he guild alone should have jurisdiction over its internal affairs and the government should restrict its interference to those things which the guilds themselves cannot settle.

"However, within a system of social cooperation under the division of labor [i.e., the market economy] there are no such things as matters of concern only to those engaged in a special plant, enterprise, or branch of industry and of no concern to outsiders. There are no internal affairs of any guild or corporazione the arrangement of which does not affect the whole nation. A branch of business does not serve only those who are occupied in it; it serves everybody. If within any branch of business there is inefficiency, a squandering of scarce factors of production, or a reluctance to adopt the most appropriate methods of production, everybody’s material interests are hurt.... In the market economy the entrepreneur in making ... decisions is unconditionally subject to the law of the market. He is responsible to the consumers. If he were to defy the orders of the consumers, he would suffer losses and would very soon forfeit his entrepreneurial position. But the monopolistic guild does not need to fear competition. It enjoys the inalienable right of exclusively covering its field of production. It is, if left alone and autonomous, not the servant of the consumers, but their master. It is free to resort to practices which favor its members at the expense of the rest of the people."

—Ludwig von Mises, Human Action

Friday, April 12, 2024

TGIF: Why Isn't Antifa Marching for Apple?

I was all ready to don a black mask for the Antifa demonstration when I realized that the self-styled antifascists hadn't planned a demonstration. What are they waiting for?

After all, the national government has just started a new fascistic crusade. You'd expect the guardians against fascism to be out of the gate with great dispatch. But they aren't.

You haven't heard about the latest fascistic crusade? It's the Justice Department's antitrust suit against Apple for "monopolizing" the smartphone market, or maybe it's the "luxury" smartphone market. The government is keeping its options open on this.

The government says Apple's iPhone accounts for 65 percent of the American market, depending on how you define "the market." (Worldwide the iPhone is only 20-30 percent.) That doesn't sound like a monopoly because 40 percent for the competition ain't chopped liver. But let's not be bothered with facts. Apple says its U.S. share is under 50 percent.

Isn't calling the government's action fascistic a stretch? Well, maybe, but it's not a big stretch to say it's another step down the road to serfdom. (Okay, that's not my term. It's Hayek's.) Remember: the word fascist once meant something more than "I hate you."

If you read what the founders of fascism wrote, you'll see that this political philosophy is not at its core racist or anti-Semitic, though it is nationalistic. It is the view that the nation is essentially a single organism with the state as the head. Liberal individualism was declared feeble and inadequate for the 20th century. In contrast to class conflict, fascism preached internal harmony among the big blocs, labor, business, and other corporate entities. This was the touted cooperation of all significant groups -- corporatism ( which didn't mean business corporations ran everything).

In light of that orientation, a free economy, like liberal individualism, could not be tolerated. In its place was dirigisme, which comes from the French for to direct. It's the view that the state, on behalf of the nation, should direct economic activity for the nation's good. Business can remain in private hands and even make a (state-defined) reasonable profit -- but only so long as it serves the people's (state-defined) interest. In other words, "owners" hold their property provisionally, at the pleasure of the wise leader. Otherwise, they're out. That's right: ownership, business, and profit may not serve -- ugh! -- selfish ends. They must serve only (state-defined) public ends. (See my entry on fascism in the Concise Encyclopedia of Economics.)

That explains other key features of fascism, such as the one-party-rule brutality. As Hayek showed, our wise leaders could not make a plan to harmonize the whole society if anyone were free to make his or her own plans, either alone or in concert with others, as a consumer or producer. How can we have a proper planned society if any individual can disrupt it just by living as he or she wishes?

So where the hell is Antifa? Forget the black masks, and forgo the smashing of windows or harassing of people at outdoor cafes. But make your position clear: you do not want this step toward fascism in America. Justice for Apple and all victims of antitrust oppression!

Specifically, the Justice [!] Department

alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers. Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers. Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.

Translation: consumers who choose the iPhone over an Android phone because they like its distinctive features don't realize they are being exploited. (Full disclosure: I'm an Android guy.)

The complaint has a lot to do with Apple's app store. Apple exercises closer control over apps than Google does with its competing Android app store. Apple's rebuttal of the government charges is reported here. As Professor Thomas B. Nachbar of the University of Virginia Law School says, "The basic theory of the lawsuit is that Apple is squelching the development of apps – such as so-called 'super apps' that are essentially a gateway to a variety of services or apps – cloud streaming game apps, messaging apps, services (especially financial services, such as digital wallets) and accessories (such as smartwatches) – in order to insulate the iPhone from the rise of potential competitors."

He goes on: "Much of the conduct the government is complaining of in this case are things that Apple says it does to either protect its users or provide them a distinctive customer experience." Apple also says its approach is intended to protect its customers' privacy and let parents limit what their kids can do with their iPhones.

Apple's and Google's different app policies have advantages and disadvantages regarding variety, security, privacy, and user experience. Different users will want different things. Do the antitrust bureaucrats not get that? It's all about trade-offs. Who should decide? Which approach is "best"? That depends on who you are and what you want. That's the great thing about markets and competition, even our less-than-fully-free system laden with patents, copyrights, trade restrictions, etc. Companies can create different bundles of features and then let consumers choose which bundle they like best. All that's necessary is to dismantle legal barriers to market entry.

The antitrust bureaucrats don't like that system. It's too, well, free. (They'd say, Orwell-style, "restricted.")  Besides, they need to earn their high salaries. So they pretend to know how the ideal phone market should look, and they have the power to do something about it. But they'll have to get through the courts, which may yet save consumers from the conformity-imposing bureaucrats. Time might be on our side. As Axios says, "The case is likely to take years to resolve. By the time it's settled, we might be using our smartphones in very different ways."

I don't like fascism, so I don't like antitrust bureaucrats. We should have sent those mini Mussolinis packing long ago. What about it, Antifa? Show you're antifascism after all.

Monday, August 31, 2020

Unpleasant Times

If Ludwig von Mises were alive today he would be viewing our current predicament with alarm but not surprise. He lived through something similar about a century ago.

In response to inexcusable police brutality, some outraged people who've taken to the streets have crossed the sacred line between peaceful protest and violence. Recent months have brought vandalism, arson, and injury in Kenosha, WI, and Portland, OR, and now intimidation of innocent bystanders in Portland and Washington, D.C. Now comes the ominous response.

This escalation by people who pose as friends of social justice (I don't doubt the sincerity of the nonviolent others in the streets) is both immoral and dangerous, both in its own right and also because it feeds those, like Trump, who might like nothing better than to bash a few heads before election day. Those among the protesters who perpetrate street violence are playing with fire, and they well know it, hoping that the state's reaction will serve their cause. But they are wrong. Whatever their cause, unless it's violence for its own sake, the result will be a strengthening of the worst aspects of the state--with the support of most people in the country.

Mises would have recognized what is going on because he'd seen it before. Have a look at chapter 10 of his book Liberalism, "The Argument of Fascism," for his observations in 1927 on what had taken place in Italy from about 1919 to 1922, when Mussolini took power and established a one-party dictatorship. That something even remotely similar to those events is now happening in America would have horrified and saddened him.

In that chapter Mises discussed the extended violent confrontation between communists/socialists and fascists in the streets of Italy. As the foremost champion of peace, freedom, and social cooperation (including economic exchange) of his day, Mises was horrified by the events. He noted that previously the antiliberal Italian right-wing nevertheless had reluctantly paid some slight homage to liberalism and its restraints on power, which it despised, because it was so central to Western civilization. But when the Italian Socialist Party began to achieve political success and make Bolshevik-type demands for fundamental social change, and when communists and socialist--emboldened by the state terror and mass murder in Russia--violently clashed in the streets with the right-wing "black shirts," Mussolini's budding fascist movement found their excuse to do what they had wanted to do all along: abandon token deference to liberalism, which it condemned as pacifist and weak, and embrace the so-called glory of violence without restraint. Mises wrote:

One must not fail to recognize that the conversion of the Rightist parties to the tactics of Fascism shows that the battle against liberalism has resulted in successes that, only a short time ago, would have been considered completely unthinkable. Many people approve of the methods of Fascism, even though its economic program is altogether antiliberal and its policy completely interventionist, because it is far from practicing the senseless and unrestrained destructionism that has stamped the Communists as the arch-enemies of civilization. Still others, in full knowledge of the evil that Fascist economic policy brings with it, view Fascism, in comparison with Bolshevism and Sovietism, as at least the lesser evil. [Emphasis added.]

Then Mises added, just so there would be no mistaking his meaning: "For the majority of its public and secret supporters and admirers, however, [Fascism's] appeal consists precisely in the violence of its methods." Fascism was antiliberal in every respect, Mises noted, including its nationalist and militarist foreign policy, which "cannot fail to give rise to an endless series of wars that must destroy all of modern civilization."

Mises pointed out that liberalism was not opposed to the use of violence when it was necessary to thwart violence. But again, to make sure he was understood, he quickly added:

What distinguishes liberal from Fascist political tactics is not a difference of opinion in regard to the necessity of using armed force to resist armed attackers, but a difference in the fundamental estimation of the role of violence in a struggle for power. The great danger threatening domestic policy from the side of Fascism lies in its complete faith in the decisive power of violence.

For Mises, the use of violence for the propagation of ideas was both wrong and counterproductive. Stifling the ideas of opponents gives them a credibility they might not otherwise earn: "Resort to naked force—that is, without justification in terms of intellectual arguments accepted by public opinion—merely gains new friends for those whom one is thereby trying to combat. In a battle between force and an idea, the latter always prevails."

He continued:

Fascism can triumph today because universal indignation at the infamies committed by the socialists and communists has obtained for it the sympathies of wide circles. But when the fresh impression of the crimes of the Bolsheviks has paled, the socialist program will once again exercise its power of attraction on the masses. For Fascism does nothing to combat it except to suppress socialist ideas and to persecute the people who spread them. If it wanted really to combat socialism, it would have to oppose it with ideas. There is, however, only one idea that can be effectively opposed to socialism, viz., that of liberalism.

I will next reproduce the controversial conclusion to Mises's chapter; if I don't, someone else will:

It cannot be denied that Fascism and similar movements aiming at the establishment of dictatorships are full of the best intentions and that their intervention has, for the moment, saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history. But though its policy has brought salvation for the moment, it is not of the kind which could promise continued success. Fascism was an emergency makeshift. To view it as something more would be a fatal error.

No liberal--libertarian, that is to say--can read this with joy, but it would be unfair to interpret Mises, as some have tried, as harboring even a speck of illiberal sentiment. (See his 1944 book Omnipotent Government: The Rise of the Total State and Total War for his view of, among others, Nazi Germany. Mises, whose heritage was Jewish, had to flee Austria and then Europe altogether because of Hitler.) Look at things from Mises's vantage point: he saw horrendous violent clashes in the streets and the looming threat of a Bolshevik state in western Europe draped in the garb of universalism and egalitarianism. (In contrast, militant Italian nationalism hardly had universal appeal.) Liberalism, unfortunately, was not on the agenda. So he had to decide which was the greater threat to Western civilization--which side if triumphant would have a smaller chance of surviving beyond the short run. Let's not forget who was on the socialist side: people who were inspired by Lenin and Trotsky, architects of the 20th century's first one-party terror state. So who can say Mises was wrong? I can't.

Of course we're not living in analogous circumstances. Notwithstanding increasing hyperbole from both wings of the establishment, we don't face a choice between Bolshevism and fascism, although I am aware of Trump's authoritarian disposition and Biden's devotion to the all-service state. Still, it's too close for comfort. We now are now seeing violent street confrontations--and the potential for bystander casualties--between two sides each with a predilection for violence, even if neither one has a fleshed-out program. (Apparently, the clashes are an all-white affair.) If things get further out of hand, the public will likely and reasonably demand a restoration of order, and many in power will be only too happy to comply--and then some. What will come next?

I don't want to exaggerate--the worst incidents have been confined to a few cities--but I fear for the future.

Wednesday, April 10, 2019

What Is Fascism? What Is State Socialism

I was interviewed recently on how fascism differs from state socialism. The interview is based on my article, "Fascism," in The Concise Encylopedia of Economics. Listen here.

Friday, September 22, 2017

TGIF: Trump's Americanized Fascism

Donald Trump delivered a depraved address to the UN General Assembly this week. It might not have been a new low for Trump, but that’s only because he went into the UN at an appallingly low level.

Read TGIF at The Libertarian Institute.

TGIF (The Goal Is Freedom) appears on Fridays. Sheldon Richman, author of America's Counter-Revolution: The Constitution Revisited, keeps the blog Free Association and is executive editor of The Libertarian Institute. He is also a senior fellow and chair of the trustees of the Center for a Stateless Society and a contributing editor at Antiwar.com. Become a Free Association patron today!

Wednesday, December 07, 2016

Trump and JFK's "Fascist New Frontier"

In his speech at Fayetteville, NC, yesterday Donald Trump said:
Our men and women in uniform represent the absolute best of us. We must follow their example working in unison toward a shared goal across every social, racial and economic line. They understand that to accomplish the mission we must all be pulling in the same direction. We have to get together.
Read that carefully and let it sink it. I'm reminded of Ayn Rand's debunking of JFK and what she called the "Fascist New Frontier." (See George Smith's "Ayn Rand on Fascism.")

Monday, June 24, 2013

TGIF: National Servitude

The idea of "national service" never goes away. It just stands in the wings waiting to reappear. Well, it's back, and here is my take.
What do [the advocates of  “national service”] really want: improvement in the lives of people or service to “the nation,” which always translates into service to the state? If it’s the latter, they should remind themselves that earlier attempts to institutionalize that notion of duty weren’t pretty.

Wednesday, August 31, 2011

Mises and Mussolini

In fairness to Ludwig von Mises (whom Michael Lind uses, cynically and dishonestly, as example of libertarian softness on fascism; see post below), you have to look at the historical moment he was writing about. Mises understood that the choice in Italy was between Mussolini and the Leninists. In real terms, there was no third choice at that point. He did not accept the Fascist program in the least and condemned its inherent violence. But in the short run he thought it was better to keep the Leninists from imposing their monstrous regime. He made a choice between two forms of totalitarianism, and took what he saw as the lesser. (Given what was going on in the Soviet Union, was he wrong? It was an abattoir in which entire classes of people were being exterminated.) Liberalism was not an option.

See Mises's full treatment here. Also see Ralph Raico's article on the matter here (pdf).

Postscript: There is a big difference between what Mises wrote and any nice words Hayek and Friedman may have had for Pinochet and his economic program. Mises had nothing good to say about Mussolini's program, nor did he have hopes that autocracy could usher in free markets. Lind shamefully lumped all three together.

Wednesday, April 01, 2009