Do you really know what liberalism is?


by Jacques de Guenin


(Talk given in Bayonne, Bordeaux and Dax to various audiences)

I should point out from the outset that I am not going to talk about politics: my brief foray into the political arena taught me that no party is fully liberal and that most politicians are more eager to force us into the system they advocate, by dint of laws and regulations, than to let us live as we wish. This, by the way, reflects on their part an obvious contempt for the individual, since they do not consider him capable of behaving properly and in a spirit of solidarity if he does not conform to their system. However, the reality is quite the opposite. The individual no longer strives for virtue when all he needs  is to apply the rules to have a clear conscience and he or she feels no needs for mutual support when the state provides that support instead. 

In France liberal thought has a long and well-established tradition. There are many stars in its firmament, including the following : La Boétie, Montaigne, Montesquieu, Voltaire, Diderot, Turgot, Condorcet, Benjamin Constant, Jean-Baptiste Say, Frédéric Bastiat, Victor Hugo, Alexis de Tocqueville, Gustave de Molinari, Jacques Rueff, Bertrand de Jouvenel, Raymond Aron, Jean-François Revel.

You will note in passing that four of these great thinkers come from Aquitaine. We can be justifiably proud of them.

The truth is that liberal thought enjoys such prestige that it puts in the shade those who wield power. This is why they give it various derogatory names and are careful not to teach it in their education system. The result is that there are many misconceptions about it. My aim is to reestablish the truth by giving a clear definition of liberalism and by demonstrating the implacable logic that connects its different concepts.

But if you have liberal convictions and want to defend them effectively logic is not enough. Most people are not willing to fight for rational arguments. Lucky if they are willing to listen to them. On the other hand they are ready to listen to, and even if necessary to die, for moral principles. I shall therefore attempt to show that liberalism is not only the most efficient system from an economic point of view but also the only social system that is morally consistent.

Liberalism is first of all an individual ethic, then a philosophy of life in society derived from this ethic and only lastly an economic doctrine that is logically entailed by this ethic and this philosophy.

This ethic is founded upon two key concepts :

Individual responsibility : being responsible means accepting the consequences of one’s own actions. It is a principle of learning by trial and error and of self-improvement.

Individual freedom : Liberty consists in the freedom to do everything which injures no one else; hence the exercise of the natural rights of each man has no limits except those which assure to the other members of the society the enjoyment of the same rights. (Article 4 of the Declaration of the Rights of Man and of the Citizen,1789).

These concepts are not independent from one another. Neither can exist without the other. Indeed one can only be responsible for one’s actions if one is free to perform them or not. Conversely if one wishes to respect the freedom of others one must oneself accept on the consequences of one’s actions.

These two concepts are not arbitrary either. They are entailed by a universal principle, that of the preservation of life and the pursuit of happiness.

All the functions of all living things, from the simplest to the most complex, have only one objective: self-preservation. It follows therefore that anything that preserves life is good and anything that threatens it is bad. This for liberals is the foundation of ethics.

A living thing must obtain the energy and food needed for it to live and multiply and to protect itself against outside threats

. It must respond and react to external conditions (such as heat and cold) or attacks. In plants and the lower animals, these actions are entirely involuntary and unconscious. In man the situation is rather more complicated :

Man has a well-developed brain that enables him to :

This decisive mental capacity is called REASON.

It is immediately clear that thanks to his efforts and the use of his reason man can only progress indefinitely in the pursuit of happiness on two conditions :

If he enjoys freedom man can create and invent new ways forward.

If he accepts responsibility he can benefit from his mistakes to progress.

Thus we find again here the two key principles of liberal thought : Freedom and Responsibility.

Let us now consider the consequences to be drawn from these two principles :

1. To ensure his survival man must produce goods that he will be able to consume, store or exchange or services that he will able to exchange for other goods or services. The person who is not entitled to the result of his efforts is not certain to be able to maintain himself as he would wish. The person who produces only for others to avail themselves of what he produces is a slave. Property acquired by effort and reason is therefore an essential pre-condition for the exercise of freedom.

The person who produces and exchanges earns what he has. He gives nor takes nothing that he has not deserved. He does not expect to be paid for his good looks or his complaints or for the passive expression of his needs, but for his achievements, for what he has accomplished.

Conversely, property acquired by force, theft or deception is in complete contradiction with the liberal ethic. Perhaps the firmest rule of liberalism is that one must obtain nothing from others by coercion, but only with their consent.

2. Man produces by dint of effort and by using his reason. The greater the effort he makes and the more he uses his reason the better the results will be. This is the only source of inequality consistent with the liberal ethic.

The corollary is that the liberal ethic will not tolerate inequality before the law, what its forms may be : slavery, the caste system, nobiliary titles or privileges.

We shall now see that the existence of society considerably improves the effectiveness of the individual in his pursuit of happiness by dint of effort and reason and that conversely the individual pursuit of happiness by dint of effort and reason produces extremely positive consequences for society.

Firstly the comparison of one person’s results with another’s enables progress – providing that the assessment is not clouded by jealousy. Thus the pursuit of effectiveness advances ethics.

Next, if he enjoys freedom man can create and invent new ways forward. In so doing he also enriches others. The person who only does physical work consumes roughly as much value as he produces. The person who produces an idea or an invention receives only an infinitesimal part of the value he has added to the heritage of humanity and which an unlimited number of people will benefit from.

Lastly, the individual can obtain goods or services that he cannot or will not produce for himself thanks to exchange, approved by a contract if the exchange takes place over an extended period of time. When the exchange is freely consented both parties find it to their advantage and no third person is harmed.

Thus if no outside authority intervenes to dictate his/her choices a person can choose the work he prefers, specialise in that work and succeed in it as far as his  will-power and talent allow. But this success depends on the objective value of this work for others. When people are free to exchange goods and services it is the best product and the best judgment that win out in all spheres of human activity and that raises the standard of living and the quality of mind of all those who who take part in that activity.

The exchange of goods and services fosters peaceful relations between people and helps to make these relations more ethical. For the exchanges to be efficient they must preclude deception. Exchange of goods and services within fairly complex societies therefore require a degree of trust.

Unlike kings and feudal lords in the past or today’s dictators or even the representatives of governments such as ours, the head of a company acquires nothing by force: he serves others. He has to satisfy his customers, and he loses all his power once he is no longer able to provide better services than his rivals. The largest of companies loses its power and influence from the moment it loses it customers. Profit goes only to the person who has understood what others want.  The same is not true for the activities of the state since the former are not subject to any penalties.

This has been perfectly expressed by the great American philosopher and novelist Ayn Rand, in a famous novel that unfortunately has not been translated into French, called "Atlas Shrugged". In this novel, a totalitarian system gradually works its way into the American state. The hero, Hank Rearden, a self-made man, is brought to trial because he is unwilling to submit to the demands of the powers that be. As at the start of all totalitarian trials those powers hope that Hank Rearden will accuse himself in public in exchange for his freedom. But Hank Rearden is made of sterner stuff. This is what he says to his judges :

«...I work for nothing but my own profit - which I make by selling a product they need to men who are willing and able to buy it. I do not produce it for their benefit at the expense of mine, and they do not buy it for my benefit at the expense of theirs; I do not sacrifice my interests to them nor they sacrifice theirs to me; we deal as equals by mutual consent to mutual advantage - and I am proud of every penny that I have earned in this manner. I am rich and I am proud of every penny I own. I made my money by my own effort, in free exchange and through the voluntary consent of every man I dealt with - the voluntary consent of those who employed me when I started, the voluntary consent of those who work for me now, the voluntary consent of those who buy my product.

I shall answer all the questions you are afraid to ask me openly. Do I wish to pay my workers more than their services are worth to me? I do not. Do I wish to sell my product for less than my customers are willing to pay me? I do not. Do I wish to sell it at a loss or give it away? I do not. If this is evil, do what you please about me, according to whatever standards you hold. These are mine. I am earning my own living, as every honest man must. I refuse to accept as guilt the fact that I am able to do it and do it well. I refuse to accept as guilt the fact that I am able to do it better than most people - the fact that my work is of greater value than the work of my neighbors and that more men are willing to pay me. I refuse to apologize for my ability - I refuse to apologize for my success - I refuse to apologize for my money

Does this mean that the liberal acts only out of self-interest ? Not at all, but for him concern for fellow human beings and solidarity with others are individual virtues that are exercised directly or via free association. He does not recognise as solidarity the redistribution by the state of money taken from others.

To meet objectives that go beyond his own capacities the individual associates freely with other individuals to constitute associations or societies. These groups can in turn associate to attain even more ambitious objectives. But the higher order groups must not take away from the lower order groups (the smallest of which is the individual) what the latter can do themselves : this is the famous principle of subsidiarity.

For the liberal the state itself should be a higher order association to which the lower order associations may delegate certain powers and certain means, according to the principle of subsidiarity. But we have always lived in quite the opposite system, whereby the state has all the levers of power in its hands and only deigns to delegate small areas of freedom to citizens when the latter wrest it from the state.

The state poses the greatest potential danger to the individual because it holds the monopoly of the use of force against isolated and unarmed victims, and this power attracts ambitious people like flies. Year after year the reports by Amnesty International  are full of the horrors perpetrated by states : wars, massacres, displaced populations, concentration camps, kidnappings, arbitrary arrests, torture, famine, persecution and confiscation of property.

Short of being able to rebuild institutions according to the principle of subsidiarity, liberals strive to limit the power of states. It is they who invented the principle of the separation of power, which is so difficult to put into practice even in our well-established democracy. It is they who invented the Declaration of the Rights of Man in 1789 to protect the individual against the state.

But the liberal is aware that if a person can acquire goods by dint of effort and reason he can also acquire them at the expense of others. He accepts therefore as the lesser of two evils an authority whose sole purpose is precisely that of ensuring the rights of the individual. In practice this means a state limited to only the so-called regalian functions : justice, the police and national defence, which implies a diplomatic service. All other functions are better accomplished by the free association of individuals according to the principle of subsidiarity.

It is worth remembering that this vision of a minimal state is that of the founders of American democracy :

« We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. »

To sum up, liberalism is a system which enables the full development of those who use their reason or efforts, who exchange or associate freely with others, especially to appoint a government to which they delegate the power to ensure individual rights. In this system the transfer of goods from one individual to another is not carried out by decree, redistribution, expropriation, theft, pillage or favouritism but by voluntary exchange.

In all other systems, a central power dominates the individual to a greater or lesser extent, and despoils him in various ways.

Liberalism, unlike all other political systems, does not allow the one injustice that is truly unjust : inequality before the law : it is liberals who abolished slavery, the caste system, nobiliary titles and privileges. On the other hand it does not consider as immoral inequalities of outcome. Is it not deeply unfair to give equal reward to the lazy as to those who strive hard? Those who do whatever they feel like and those who think ? It is because of the existence of this reward for reason and effort that the societies that apply the liberal ethic have always been, in every time and place, the most prosperous societies, as well as the most tolerant, the most open-minded and the most humane.

Saint-Loubouer, 2000

(Translated by Michael Glencross)

 

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