Liberty is not, as the German precursors of Nazism asserted, a negative ideal. Whether a concept is presented in an affirmative or in a negative form is merely a question of idiom. Freedom from want is tantamount to the expression striving after a state of affairs under which people are better supplied with necessities. Freedom of speech is tantamount to a state of affairs under which everybody can say what he wants to say.
At the bottom of all totalitarian doctrines lies the belief that the rulers are wiser and loftier than their subjects and that they therefore know better what benefits those ruled than they themselves. Werner Sombart, for many years a fanatical champion of Marxism and later a no less fanatical advocate of Nazism, was bold enough to assert frankly that the Führer gets his orders from God, the supreme Führer of the universe, and that Führertum is a permanent revelation.* Whoever admits this must, of course, stop questioning the expediency of government omnipotence.
Those disagreeing with this theocratical justification of dictatorship claim for themselves the right to discuss freely the problems involved. They do not write state with a capital S. They do not shrink from analyzing the metaphysical notions of Hegelianism and Marxism. They reduce all this high-sounding oratory to the simple question: are the means suggested suitable to attain the ends sought? In answering this question, they hope to render a service to the great majority of their fellow men.
Ludwig von Mises
New York, January, 1944
Acknowledgment
I am grateful to the Rockefeller Foundation and to the National Bureau of Economic Research for grants which enabled me to undertake this study. Mr. Henry Hazlitt has helped me greatly with his criticism and suggestions and by editing the whole manuscript. Mr. Arthur Goodman1 has advised me in linguistic and stylistic problems. Mr. Eugene Davidson of Yale University Press has assisted me in many ways. The responsibility for all opinions expressed is, of course, exclusively my own.
The essential point in the plans of the German National Socialist Workers’ party is the conquest of Lebensraum for the Germans, i.e., a territory so large and rich in natural resources that they could live in economic self-sufficiency at a standard not lower than that of any other nation. It is obvious that this program, which challenges and threatens all other nations, cannot be realized except through the establishment of German world hegemony.
The distinctive mark of Nazism is not socialism or totalitarianism or nationalism. In all nations today the “progressives” are eager to substitute socialism for capitalism. While fighting the German aggressors Great Britain and the United States are, step by step, adopting the German pattern of socialism. Public opinion in both countries is fully convinced that government all-round control of business is inevitable in time of war, and many eminent politicians and millions of voters are firmly resolved to keep socialism after the war as a permanent new social order. Neither are dictatorship and violent oppression of dissenters peculiar features of Nazism. They are the Soviet mode of government, and as such advocated all over the world by the numerous friends of present-day Russia. Nationalism—an outcome of government interference with business, as will be shown in this book—determines in our age the foreign policy of every nation. What characterizes the Nazis as such is their special kind of nationalism, the striving for Lebensraum.
This Nazi goal does not differ in principle from the aims of the earlier German nationalists, whose most radical group called themselves in the thirty years preceding the first World War Alldeutsche (Pan-Germans). It was this ambition which pushed the Kaiser’s Germany into the first World War and—twenty-five years later—kindled the second World War.
The Lebensraum program cannot be traced back to earlier German ideologies or to precedents in German history of the last five hundred years. Germany had its chauvinists as all other nations had. But chauvinism is not nationalism. Chauvinism is the overvaluation of one’s own nation’s achievements and qualities and the disparagement of other nations; in itself it does not result in any action. Nationalism, on the other hand, is a blueprint for political and military action and the attempt to realize these plans. German history, like the history of other nations, is the record of princes eager for conquest; but these emperors, kings, and dukes wanted to acquire wealth and power for themselves and for their kin, not Lebensraum for their nation. German aggressive nationalism is a phenomenon of the last sixty years. It developed out of modern economic conditions and economic policies.
Neither should nationalism be confused with the striving for popular government, national self-determination, and political autonomy. When the German nineteenth-century liberals aimed at a substitution of a democratic government of the whole German nation for the tyrannical rule of thirty-odd princes, they did not harbor any hostile designs against other nations. They wanted to get rid of despotism and to establish parliamentary government. They did not thirst for conquest and territorial expansion. They did not intend to incorporate into the German state of their dreams the Polish and Italian territories which their princes had conquered; on the contrary, they sympathized with the aspirations of the Polish and the Italian liberals to establish independent Polish and Italian democracies. They were eager to promote the welfare of the German nation, but they did not believe that oppression of foreign nations and inflicting harm on foreigners best served their own nation.
Neither is nationalism identical with patriotism. Patriotism is the zeal for one’s own nation’s welfare, flowering, and freedom. Nationalism is one of the various methods proposed for the attainment of these ends. But the liberals contend that the means recommended by nationalism are inappropriate, and that their application would not only not realize the ends sought but on the contrary must result in disaster for the nation. The liberals too are patriots, but their opinions with regard to the right ways toward national prosperity and greatness radically differ from those of the nationalists. They recommend free trade, international division of labor, good will, and peace among the nations, not for the sake of foreigners but for the promotion of the happiness of their own nation.
It is the aim of nationalism to promote the well-being of the whole nation or of some groups of its citizens by inflicting harm on foreigners. The outstanding method of modern nationalism is discrimination against foreigners in the economic sphere. Foreign goods are excluded from the domestic market or admitted only after the payment of an import duty. Foreign labor is barred from competition in the domestic labor market. Foreign capital is liable to confiscation. This economic nationalism must result in war whenever those injured believe that they are strong enough to brush away by armed violent action the measures detrimental to their own welfare.
A nation’s policy forms an integral whole. Foreign policy and domestic policy are closely linked together; they are but one system; they condition each other. Economic nationalism is the corollary of the present-day domestic policies of government interference with business and of national planning, as free trade was the complement of domestic economic freedom. There can be protectionism in a country with domestic free trade, but where there is no domestic free trade protectionism is indispensable. A national government’s might is limited to the territory subject to its sovereignty. It does not have the power to interfere directly with conditions abroad. Where there is free trade, foreign competition would even in the short run frustrate the aims sought by the various measures of government intervention with domestic business. When the domestic market is not to some extent insulated from foreign markets, there can be no question of government control. The further a nation goes on the road toward public regulation and regimentation, the more it is pushed toward economic isolation. International division of labor becomes suspect because it hinders the full use of national sovereignty. The trend toward autarky is essentially a trend of domestic economic policies; it is the outcome of the endeavor to make the state paramount in economic matters.
Within a world of free trade