The Anti-Capitalistic Mentality
Encyclopedia
The Anti-Capitalistic Mentality is a book written by Austrian School
economist and libertarian
thinker Ludwig von Mises
. It is an investigation into the psychological roots of the anti-capitalistic stance that is widespread in the general populations of the capitalist world. Von Mises suggests various reasons for this mentality, primarily his claim that free competition in the market economy allows for no excuses of one's failures.
According to the author, faced with this burden many who have fared poorly in the market economy seek a scapegoat to shift the blame from themselves and restore their self-image.
The notion of 'fair share' is devoid of meaning, because both capital and labour are necessary to produce goods and it is impossible to assign a proportion of the end product as belonging to either labour or capital. He also argues that even more importantly the historical increase in the average wage-earner's rewards is due solely to the accumulation of capital, and in particular to "the fact that the rate of capital accumulation exceeds the rate of increase in population' (p.88). According to von Mises, "All pseudo-economic doctrines which depreciate the role of saving and capital accumulation are absurd [...] What has improved the wage earners' standard of living is the fact that the capital equipment per head of the men eager to earn wages has increased. It is a consequence of this fact that an ever increasing portion of the total amount of usable goods produced goes to the wage earners" (p.89)
called it a "resoundingly silly" caricature
of economic liberalism
and "a sad little book" that is simplistically dogmatic and displays "cocksure superficiality" in an abusive tone. The review
suggested that the book would receive "low marks if presented by a second-year undergraduate to his tutor
," and that "the case for freedom ... is ill served" by such a book. It accused von Mises of attacking straw men and having contempt for the facts of human nature
, comparing him in that respect to Marxists. Conservative commentator, and former Communist Whittaker Chambers
published a similarly negative review in the National Review
, stating that Mises's thesis that anti-capitalist sentiment was rooted in "envy" epitomized "know-nothing conservatism" at its "know-nothingest."
Austrian School
The Austrian School of economics is a heterodox school of economic thought. It advocates methodological individualism in interpreting economic developments , the theory that money is non-neutral, the theory that the capital structure of economies consists of heterogeneous goods that have...
economist and libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
thinker Ludwig von Mises
Ludwig von Mises
Ludwig Heinrich Edler von Mises was an Austrian economist, philosopher, and classical liberal who had a significant influence on the modern Libertarian movement and the "Austrian School" of economic thought.-Biography:-Early life:...
. It is an investigation into the psychological roots of the anti-capitalistic stance that is widespread in the general populations of the capitalist world. Von Mises suggests various reasons for this mentality, primarily his claim that free competition in the market economy allows for no excuses of one's failures.
Frustrated ambition
'In a society based on caste and status, the individual can ascribe adverse fate to conditions beyond his own control. [For instance] He is a slave because the superhuman powers that determine all becoming had assigned him this rank. [...] It is quite another thing under capitalism. Here everybody's station in life depends on his own doing [...] The sway of the principle, to each according to his accomplishments, does not allow of any excuse for personal shortcomings' (pp.11–12)According to the author, faced with this burden many who have fared poorly in the market economy seek a scapegoat to shift the blame from themselves and restore their self-image.
Common misunderstandings
According to von Mises, Marxian philosophy has heavily influenced the way the general public interprets its economic condition and perceives of capitalism. The average wage-earner's high standard of living is viewed as an inevitable result of 'self-acting progress', akin to Marx's 'material productive forces'. It is believed that these material productive forces (e.g. technological innovations) are not only independent of capitalism but will eventually force capitalism to yield to more advanced forms of socialist organisation. Till that day the exploiting capitalists will continue to refuse workers their fair share of this progress.The notion of 'fair share' is devoid of meaning, because both capital and labour are necessary to produce goods and it is impossible to assign a proportion of the end product as belonging to either labour or capital. He also argues that even more importantly the historical increase in the average wage-earner's rewards is due solely to the accumulation of capital, and in particular to "the fact that the rate of capital accumulation exceeds the rate of increase in population' (p.88). According to von Mises, "All pseudo-economic doctrines which depreciate the role of saving and capital accumulation are absurd [...] What has improved the wage earners' standard of living is the fact that the capital equipment per head of the men eager to earn wages has increased. It is a consequence of this fact that an ever increasing portion of the total amount of usable goods produced goes to the wage earners" (p.89)
Criticism
The EconomistThe Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
called it a "resoundingly silly" caricature
Caricature
A caricature is a portrait that exaggerates or distorts the essence of a person or thing to create an easily identifiable visual likeness. In literature, a caricature is a description of a person using exaggeration of some characteristics and oversimplification of others.Caricatures can be...
of economic liberalism
Economic liberalism
Economic liberalism is the ideological belief in giving all people economic freedom, and as such granting people with more basis to control their own lives and make their own mistakes. It is an economic philosophy that supports and promotes individual liberty and choice in economic matters and...
and "a sad little book" that is simplistically dogmatic and displays "cocksure superficiality" in an abusive tone. The review
Review
A review is an evaluation of a publication, a product or a service, such as a movie , video game, musical composition , book ; a piece of hardware like a car, home appliance, or computer; or an event or performance, such as a live music concert, a play, musical theater show or dance show...
suggested that the book would receive "low marks if presented by a second-year undergraduate to his tutor
Tutor
A tutor is a person employed in the education of others, either individually or in groups. To tutor is to perform the functions of a tutor.-Teaching assistance:...
," and that "the case for freedom ... is ill served" by such a book. It accused von Mises of attacking straw men and having contempt for the facts of human nature
Human nature
Human nature refers to the distinguishing characteristics, including ways of thinking, feeling and acting, that humans tend to have naturally....
, comparing him in that respect to Marxists. Conservative commentator, and former Communist Whittaker Chambers
Whittaker Chambers
Whittaker Chambers was born Jay Vivian Chambers and also known as David Whittaker Chambers , was an American writer and editor. After being a Communist Party USA member and Soviet spy, he later renounced communism and became an outspoken opponent later testifying in the perjury and espionage trial...
published a similarly negative review in the National Review
National Review
National Review is a biweekly magazine founded by the late author William F. Buckley, Jr., in 1955 and based in New York City. It describes itself as "America's most widely read and influential magazine and web site for conservative news, commentary, and opinion."Although the print version of the...
, stating that Mises's thesis that anti-capitalist sentiment was rooted in "envy" epitomized "know-nothing conservatism" at its "know-nothingest."
Publication history
- D Van Nostrand Company, 1956
- Libertarian Press,
- Liberty FundLiberty FundLiberty Fund, Inc. is a private, educational foundation established and headquartered in Indianapolis, Indiana, USA. It is dedicated to the study of the ideal of a society of free and responsible individuals...
, 2006, ISBN 0-86597-670-8 (cloth), ISBN 0-86597-671-6 (paperback) - Ludwig von Mises InstituteLudwig von Mises InstituteThe Ludwig von Mises Institute , based in Auburn, Alabama, is a libertarian academic organization engaged in research and scholarship in the fields of economics, philosophy and political economy. Its scholarship is inspired by the work of Austrian School economist Ludwig von Mises...
, 2008, (reprint of the Van Nostrand edition)
Full text
- The Anti-Capitalistic Mentality, 1956 edition: