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(/ )

(h ttp s:/ /m is e s.o rg /g iv in g /n ow )

A A

0 C O M MEN TS ( / L IB R A RY /P O LIT IC A L-E C O NO M Y-

M ONARC H Y-A N D -D EM OCRA CY#D IS Q US_T HREA D )

M IS E S D A IL Y A RTIC LES

Political Economy of Monarchy and Democracy

TA G S M ed ia a n d C ult u re ( / to p ic s/m ed ia -a n d -c u lt u re ) , H is to ry of t h e A ustria n S ch ool o f

Eco n om ic s ( / a u stria n -s c h ool/ h is to ry -a u stria n -s c h ool- e co n om ic s) , P h il o so p hy an d

M eth od olo g y ( / a u stria n -s c h ool/ p hil o so p hy-a n d -m eth od olo g y) , P ra xe o lo g y ( / a u stria n -

sc h ool/ p ra xe o lo g y) , P riv a te P ro p erty ( / a u stria n -s c h ool/ p riv a te -p ro p erty)

0 2/0 1/2 010 • H an s-H erm an n H op pe ( / p ro fil e /h an s-h erm an n-

hop pe)

[E xce rp te d f r o m t h e Jo u rn al o f L ib erta ria n S tu di es ]

I. T h e C o m para tiv e E co n om ic s o f P riv ate a n d P u b lic

G ove rn m en t O w ners h ip

A g ove rn m en t i s a t e rrit o ria l m on op olis t o f c o m puls io n — an

a g en cy w hic h m ay e n g ag e i n c o n tin ua l, i n stit u tio n aliz e d

p ro p erty r ig hts v io la tio n s a n d t h e e xp lo it a tio n — in t h e f o rm o f

exp ro p ria tio n , t a xa tio n a n d r e g ul atio n — of p riv a te p ro p erty

o w ners . A ssum in g n o m ore t h an s e lf - in te re st o n t h e p art o f

g ove rn m en t a g en ts , a ll g ove rn m en ts m us t b e e xp ecte d t o m ake u se o f t h is m on op oly a n d t h us e xh ib it a

t e n d en cy t o w ard i n cre ase d e xp lo it a tio n .

H ow eve r, n ot e ve ry f o rm o f g ove rn m en t c a n b e e xp ecte d t o b e e q ually s u cce ssfu l i n t h is e n d eavo r o r t o

g o a b out i t i n t h e s a m e w ay. R ath er, i n l ig ht o f e le m en ta ry e co n om ic t h eo ry , t h e c o n d uct o f g ove rn m en t

an d t h e e ffe cts o f g ove rn m en t p olic y o n c iv il s o cie ty c a n b e e xp ecte d t o b e s y ste m atic a lly d if fe re n t,

d ep en d in g o n w heth er t h e g ove rn m en t a p para tu s i s o w ned p riv a te ly o r p ub lic ly .

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Th e d efin in g c h ara cte ris tic o f p riv a te g ove rn m en t o w ners h ip i s t h at t h e e xp ro p ria te d r e so u rc e s a n d t h e

m on op oly p riv il e g e o f f ut ure e xp ro p ria tio n a re i n d iv id ually o w ned . T h e a p pro p ria te d r e so u rc e s a re a d ded

to t h e r ul er's p riv a te e sta te a n d t re ate d a s i f t h ey w ere a p art o f i t , a n d t h e m on op oly p riv il e g e o f f u tu re

e xp ro p ria tio n i s a tta ch ed a s a t it le t o t h is e sta te a n d l e ad s t o a n i n sta n t i n cre ase i n i t s p re se n t v a lu e

(" c a p it a liz a tio n" o f m on op oly p ro fit ).

M ost i m porta n tly , a s p riv a te o w ner o f t h e g ove rn m en t e sta te , t h e r u le r i s e n tit le d t o p ass h is p osse ssio n s

on to h is p ers o n al h eir ; h e m ay s e ll, r e n t, o r g iv e a w ay p art o r a ll o f h is p riv il e g ed e sta te a n d p riv a te ly

p ock e t t h e r e ce ip ts f r o m t h e s a le o r r e n ta l; a n d h e m ay p ers o n ally e m plo y o r d is m is s e ve ry a d m in is tra to r

an d e m plo ye e o f h is e sta te .

In c o n tra st, i n a p ub lic ly o w ned g ove rn m en t t h e c o n tro l o ve r t h e g ove rn m en t a p para tu s l ie s i n t h e h an d s

of a t rus te e, o r c a re ta ke r. T h e c a re ta ke r m ay u se t h e a p para tu s t o h is p ers o n al a d va n ta g e, b ut h e d oes n ot

ow n i t . H e c a n not s e ll g ove rn m en t r e so ur ce s a n d p riv a te ly p ock e t t h e r e ce ip ts , n or c a n h e p ass

g ove rn m en t p osse ssio n s o n to h is p ers o n al h eir . H e o w ns t h e cu rre n t u se o f g ove rn m en t r e so ur ce s, b ut n ot

th eir c a p it a l v a lue .

More o ve r, w hil e e n tra n ce i n to t h e p osit io n o f a p riv a te o w ner o f g ove rn m en t i s r e stric te d b y t h e o w ner's

p ers o n al d is c re tio n , e n tra n ce i n to t h e p osit io n o f a c a re ta ke r-r u le r i s o p en . A nyo n e, i n p rin cip le , c a n

b eco m e t h e g ove rn m en t's c a re ta ke r.

F ro m t h ese a ssum ptio n s t w o c e n tra l, i n te rre la te d p re d ic tio n s c a n b e d ed uce d :

1. A p riv a te g ove rn m en t o w ner w il l t e n d t o h ave a s y ste m atic a lly l o n g er p la n nin g h oriz o n , i .e ., h is

d eg re e o f t im e p re fe re n ce w il l b e l o w er, a n d a cco rd in g ly , h is d eg re e o f e co n om ic e xp lo it a tio n w il l

t e n d t o b e l e ss t h an t h at o f a g ove rn m en t c a re ta ke r; a n d

2. s ub je ct t o a h ig her d eg re e o f e xp lo it a tio n , t h e n on g ove rn m en ta l p ub lic w il l a ls o b e c o m para tiv e ly

m ore p re se n t o rie n te d un der a s y ste m o f p ub lic ly o w ned g ove rn m en t t h an u n d er a r e g im e o f

p riv a te g ove rn m en t o w ners h ip .

(1 ) G ove rn m en t O w ners ' T im e P re fe re n ce s

A p riv a te g ove rn m en t o w ner w il l p re d ic ta b ly t r y t o m axim iz e h is t o ta l w ealt h , i .e ., t h e p re se n t v a lu e o f h is

e sta te a n d h is c ur re n t i n co m e. H e w il l n ot w an t t o i n cre ase h is c ur re n t i n co m e a t t h e e xp en se o f a m ore -

th an -p ro p ortio n al d ro p i n t h e p re se n t v a lu e o f h is a sse ts , a n d b eca u se a cts o f c u rre n t-in co m e a cq uis it io n

in va ria b ly h ave r e p erc us sio n s o n p re se n t a sse t v a lu es ( r e fle ctin g t h e v a lu e o f a ll f u tu re — exp ecte d —

a sse t e arn in g s d is c o un te d b y t h e r a te o f t im e p re fe re n ce ), p riv a te o w ners h ip i n a n d o f i t s e lf l e ad s t o

e co n om ic c a lc ul atio n a n d t h us p ro m ote s f a rs ig hte d ness.

In t h e c a se o f t h e p riv a te o w ners h ip o f g ove rn m en t, t h is i m plie s a d is tin ct m od era tio n w it h r e sp ect t o t h e

rul er's i n ce n tiv e t o e xp lo it h is m on op oly p riv il e g e o f e xp ro p ria tio n , f o r a cts o f e xp ro p ria tio n a re b y t h eir

n atur e p ara sit ic up on p rio r a cts o f p ro d uc tio n o n t h e p art o f t h e n on g ove rn m en ta l p ub lic . W here n oth in g 5/3/2018 Political Economy of Monarchy and Democracy | Mises Institute

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has f ir s t b een p ro d uc ed , n oth in g c a n b e e xp ro p ria te d ; a n d w here e ve ry th in g i s e xp ro p ria te d , a ll f u tu re

p ro d uc tio n w il l c o m e t o a s h rie kin g h alt .

A cco rd in g ly , a p riv a te g ove rn m en t o w ner w il l w an t t o a vo id e xp lo it in g h is s u b je cts s o h eav il y , f o r

in sta n ce , a s t o r e d uc e h is f ut ure e arn in g s p ote n tia l t o s u ch a n e xte n t t h at t h e p re se n t v a lu e o f h is e sta te

a ctua lly f a lls . I n ste ad , i n o rd er t o p re se rv e o r p ossib ly e ve n e n han ce t h e v a lu e o f h is p ers o n al p ro p erty , h e

w il l s y ste m atic a lly r e stra in h im se lf i n h is e xp lo it a tio n p olic ie s. F o r t h e l o w er t h e d eg re e o f e xp lo it a tio n , t h e

m ore p ro d uc tiv e t h e s ub je ct p op ul atio n w il l b e; a n d t h e m ore p ro d uctiv e t h e p op ula tio n , t h e h ig her w il l

b e t h e v a lue of t h e r ul er's p ara sit ic m on op oly o f e xp ro p ria tio n .

H e w il l us e h is m on op olis tic p riv il e g e, o f c o u rs e . H e w il l n ot e xp lo it . B u t a s t h e g ove rn m en t's p riv a te

o w ner, i t i s i n h is i n te re st t o d ra w p ara sit ic a lly o n a g ro w in g, i n cre asin g ly p ro d uctiv e a n d p ro sp ero u s

n on g ove rn m en t e co n om y a s t h is w oul d e ffo rtle ssly a ls o i n cre ase h is o w n w ealt h a n d p ro sp erit y — an d

th e d eg re e o f e xp lo it a tio n t h us w oul d t e n d t o b e l o w .

M ore o ve r, p riv a te o w ners h ip o f g ove rn m en t i m plie s m od era tio n a n d f a rs ig hte d ness f o r y e t a n oth er

re aso n . A ll p riv a te p ro p erty i s b y d efin it io n e xclu siv e p ro p erty . H e w ho o w ns p ro p erty i s e n tit le d t o

e xclud e e ve ry o n e e ls e f r o m i t s us e a n d e n jo ym en t; a n d h e i s a t l ib erty t o c h oose w it h w hom , i f a n yo n e, h e

is w il lin g t o s h are i n i t s us ag e. T y p ic a lly , h e w il l i n clu d e h is f a m il y a n d e xclu d e a ll o th ers , e xce p t a s i n vit e d

g ues ts o r a s p aid e m plo ye es o r c o n tra cto rs .

O nly t h e r ul in g f a m il y — an d t o a m in or e xte n t i t s f r ie n d s, e m plo ye es a n d b usin ess p artn ers — sh are i n

t h e e n jo ym en t o f t h e e xp ro p ria te d r e so ur ce s a n d c a n t h us l e ad a p ara sit ic l if e . B eca u se o f t h ese

re stric tio n s r e g ard in g e n tra n ce i n to g ove rn m en t a n d t h e e xclu siv e s ta tu s o f t h e i n d iv id ual r u le r a n d h is

f a m il y , p riv a te g ove rn m en t o w ners h ip s tim ula te s t h e d eve lo p m en t o f a c le ar " c la ss c o n sc io u sn ess" o n t h e

p art o f t h e n on g ove rn m en ta l p ub lic a n d p ro m ote s o p posit io n a n d r e sis ta n ce t o a n y e xp an sio n o f t h e

g ove rn m en t's e xp lo it a tiv e p ow er.

A c le ar- c ut d is tin ctio n b etw een t h e ( fe w ) r u le rs o n t h e o n e h an d a n d t h e ( m an y) r u le d o n t h e o th er e xis ts ,

a n d t h ere i s l it tle r is k o r h op e o f a n yo n e o f e it h er c la ss e ve r f a llin g o r r is in g f r o m o n e c la ss t o t h e o th er.

C on fr o n te d w it h a n a lm ost i n sur moun ta b le b arrie r i n t h e w ay o f u p w ard m ob il it y , t h e s o lid arit y a m on g

th e r ul ed — th eir m ut ua l i d en tif ic a tio n a s a ctu al o r p ote n tia l v ic tim s o f g ove rn m en ta l p ro p erty -r ig hts

v io la tio n s — is s tre n g th en ed , a n d t h e r is k t o t h e r u lin g c la ss o f l o sin g i t s l e g it im acy a s t h e r e su lt o f

in cre ase d e xp lo it a tio n i s h eig hte n ed .

In d is tin ct c o n tra st, t h e c a re ta ke r o f a p ub lic ly o w ned g ove rn m en t w il l t r y t o m axim iz e n ot t o ta l

g ove rn m en t w ealt h ( c a p it a l v a lues a n d c ur re n t i n co m e), b ut c u rre n t i n co m e ( r e g ard le ss, a n d a t t h e

exp en se , o f c a p it a l v a lues ). I n d eed , e ve n i f t h e c a re ta ke r w is h es t o a ct d if fe re n tly , h e ca n not . B eca us e a s

p ub lic p ro p erty g ove rn m en t r e so ur ce s a re n ot f o r s a le , a n d w it h ou t m ark e t p ric e s e co n om ic c a lc u la tio n i s

im possibl e . A cco rd in g ly , i t h as t o b e r e g ard ed a s un avo id ab le t h at p ub lic g ove rn m en t o w ners h ip w il l

r e sul t i n c o n tin ua l c a p it a l c o n sum ptio n .

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In ste ad o f m ain ta in in g o r e ve n e n han cin g t h e v a lu e o f t h e g ove rn m en t e sta te , a s a p riv a te o w ner w ou ld

t e n d t o d o, a g ove rn m en t's t e m pora ry c a re ta ke r w il l q uic k ly u se u p a s m uch o f t h e g ove rn m en t r e so u rc e s

as p ossib le , f o r w hat h e d oes n ot c o n sum e n ow , h e m ay n eve r b e a b le t o c o n sum e.

In p artic ul ar, a c a re ta ke r — as d is tin ct f r o m a g ove rn m en t's p riv a te o w ner — has n o i n te re st i n n ot r u in in g

his c o un tr y . F o r w hy s h oul d h e n ot w an t t o i n cre ase h is e xp lo it a tio n i f t h e a d va n ta g e o f a p olic y o f

m od era tio n — th e r e sul tin g h ig her c a p it a l v a lu e o f t h e g ove rn m en t e sta te — ca n not b e r e ap ed p riv a te ly ,

w hil e t h e a d va n ta g e o f t h e o p posit e p olic y o f i n cre ase d e xp lo it a tio n — a h ig her c u rre n t i n co m e — ca n b e

so r e ap ed ? T o a c a re ta ke r, un lik e t o a p riv a te o w ner, m od era tio n h as o n ly d is a d va n ta g es a n d n o

ad va n ta g es.

In a d dit io n , w it h a p ub lic ly o w ned g ove rn m en t, a n yo n e i n p rin cip le c a n b eco m e a m em ber o f t h e r u lin g

cla ss o r e ve n t h e s up re m e p ow er. T h e d is tin ctio n b etw een t h e r u le rs a n d t h e r u le d a s w ell a s t h e c la ss

c o n sc io us ness o f t h e r ul ed b eco m e b lur re d . T h e i l lu sio n e ve n a ris e s t h at t h e d is tin ctio n n o l o n g er e xis ts :

th at w it h a p ub lic g ove rn m en t n o o n e i s r u le d b y a n yo n e, b ut e ve ry o n e i n ste ad r u le s h im se lf . A cco rd in g ly ,

p ub lic r e sis ta n ce a g ain st g ove rn m en t p ow er i s s y ste m atic a lly w eake n ed .

W hil e e xp lo it a tio n a n d e xp ro p ria tio n b efo re m ig ht h ave a p peare d p la in ly o p pre ssiv e a n d e vil t o t h e

p ub lic , t h ey s e em m uc h l e ss s o , m an kin d b ein g w hat i t i s , o n ce a n yo n e m ay f r e ely e n te r t h e r a n ks o f t h ose

w ho a re a t t h e r e ce iv in g e n d. C on se q uen tly , n ot o n ly w il l e xp lo it a tio n i n cre ase , w heth er o p en ly i n t h e

fo rm o f h ig her t a xe s o r d is c re te ly a s i n cre ase d g ove rn m en ta l m on ey " c re atio n" ( in fla tio n ) o r l e g is la tiv e

re g ul atio n . L ik e w is e , t h e n um ber o f g ove rn m en t e m plo ye es ( " p ub lic s e rv a n ts ") w il l r is e a b so lu te ly a s w ell

a s r e la tiv e ly t o p riv a te e m plo ym en t, i n p artic u la r a ttra ctin g a n d p ro m otin g i n d iv id uals w it h h ig h d eg re es

o f t im e p re fe re n ce , a n d l o w a n d l im it e d f a rs ig hte d ness.

(2 ) S u b je cts ' T im e P re fe re n ce s

In c o n tra st t o t h e r ig ht t o s e lf - d efe n se i n t h e e ve n t o f a c rim in al a tta ck , t h e v ic tim o f g ove rn m en t

vio la tio n s o f p riv a te -p ro p erty r ig hts m ay n ot l e g it im ate ly d efe n d h im se lf a g ain st s u ch v io la tio n s.

T h e i m posit io n o f a g ove rn m en t t a x o n p ro p erty o r i n co m e v io la te s a p ro p erty o w ner's a n d i n co m e

pro d uc er's r ig hts a s m uc h a s t h eft d oes. I n b oth c a se s, t h e o w ner-p ro d uce r's s u p ply o f g ood s i s

d im in is h ed a g ain st h is w il l a n d w it h out h is c o n se n t. G ove rn m en t m on ey o r " liq uid it y " c re atio n i n vo lv e s n o

le ss a f r a ud ulen t e xp ro p ria tio n o f p riv a te -p ro p erty o w ners t h an t h e o p era tio n s o f a c rim in al

co un te rfe it in g g an g.

A s w ell, a n y g ove rn m en t r e g ul atio n a s t o w hat a n o w ner m ay o r m ay n ot d o w it h h is p ro p erty — beyo n d

th e r ul e t h at n o o n e m ay p hysic a lly d am ag e t h e p ro p erty o f o th ers a n d t h at a ll e xch an g e a n d t ra d e b e

vo lun ta ry a n d c o n tra ctua l — im plie s a " ta k in g " o f s o m eb od y's p ro p erty , o n a p ar w it h a cts o f e xto rtio n ,

ro b bery , o r d estruc tio n . B ut t a xa tio n , t h e g ove rn m en t's p ro vis io n f o r l iq uid it y , a n d g ove rn m en t

re g ul atio n s, un lik e t h eir c rim in al e q ui va le n ts , a re c o n sid ere d l e g it im ate , a n d t h e v ic tim o f g ove rn m en t

in te rfe re n ce , un lik e t h e v ic tim o f a c rim e, i s n ot e n tit le d t o p hysic a lly d efe n d a n d p ro te ct h is p ro p erty .

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Ow in g t o t h eir l e g it im acy, t h en , g ove rn m en t v io la tio n s o f p ro p erty r ig hts a ffe ct i n d iv id ual t im e

pre fe re n ce s i n a s y ste m atic a lly d if fe re n t a n d m uch m ore p ro fo u n d w ay t h an c rim e. L ik e c rim e, a ll

g ove rn m en t i n te rfe re n ce w it h p riv a te p ro p erty r ig hts r e d uce s s o m eo n e's s u p ply o f p re se n t g ood s a n d

th us r a is e s h is e ffe ctiv e t im e-p re fe re n ce r a te . H ow eve r, g ove rn m en t o ffe n se s — un lik e c rim e —

s im ulta n eo us ly r a is e t h e t im e p re fe re n ce de gre e o f a ctua l a n d p ote n tia l v ic tim s b eca us e t h ey a ls o i m ply a

r e d uc tio n i n t h e s up ply o f fu tu re g ood s ( a r e d uc ed r a te o f r e tur n o n i n ve stm en t).

C rim e, b eca us e i t i s i l le g it im ate , o cc ur s o n ly i n te rm it te n tly — th e r o b ber d is a p pears f r o m t h e s c e n e w it h

h is l o ot a n d l e ave s h is v ic tim a lo n e. T h us , c rim e c a n b e d ealt w it h b y i n cre asin g o n e's d em an d f o r

p ro te ctiv e g ood s a n d s e rv ic e s s o a s t o r e sto re o r e ve n i n cre ase o n e's f u tu re r a te o f i n ve stm en t r e tu rn a n d

m ake i t l e ss l ik e ly t h at t h e s a m e o r a d if fe re n t r o b ber w il l s u cce ed a s e co n d t im e.

In c o n tra st, b eca us e t h ey a re l e g it im ate , g ove rn m en ta l p ro p erty r ig hts v io la tio n s a re c o n tin ual. T h e

offe n d er d oes n ot d is a p pear i n to h id in g b ut s ta ys a ro u n d, a n d t h e v ic tim d oes n ot " a rm " h im se lf b ut m ust

(a t l e ast h e i s g en era lly e xp ecte d t o ) r e m ain d efe n se le ss. T h e a ctu al a n d p ote n tia l v ic tim s o f g ove rn m en t

p ro p erty -r ig hts v io la tio n s r e sp on d b y a sso cia tin g a p erm an en tly h ig her r is k w it h a ll f u tu re p ro d uctio n ,

an d s y ste m atic a lly a d jus tin g t h eir e xp ecta tio n s c o n ce rn in g t h e r a te o f r e tu rn o n a ll f u tu re i n ve stm en t

d ow nw ard .

By s im ulta n eo us ly r e d uc in g t h e s up ply o f p re se n t a n d e xp ecte d f ut ure g ood s, t h en , g ove rn m en ta l

p ro p erty -r ig hts v io la tio n s n ot o n ly r a is e t im e p re fe re n ce ra te s ( w it h g iv e n s c h ed ul es) b ut a ls o t im e-

p re fe re n ce sc h edul es . B eca us e o w ner-p ro d uc ers a re — an d s e e t h em se lv e s a s — defe n se le ss a g ain st

fut ure v ic tim iz a tio n b y g ove rn m en t a g en ts , t h eir e xp ecte d r a te o f r e tu rn o n p ro d uctiv e , f u tu re -o rie n te d

actio n s i s r e d uc ed a ll- a ro un d, a n d a cco rd in g ly , a ll a ctu al a n d p ote n tia l v ic tim s b eco m e m ore p re se n t-

o rie n te d .

M ore o ve r, b eca us e t h e d eg re e o f e xp lo it a tio n i s c o m para tiv e ly h ig her u n d er a p ub lic ly o w ned

g ove rn m en t, t h is t e n d en cy t o w ard p re se n t-o rie n ta tio n w il l b e s ig n if ic a n tly m ore p ro n ou n ce d i f t h e

g ove rn m en t i s p ub lic ly o w ned t h an i f i t i s o w ned p riv a te ly .

II. A pplica tio n : T h e T ra n sit io n f r o m M on arc h y t o D em ocra cy ( 1 789–1 918)

H ere d it a ry m on arc h ie s r e p re se n t t h e h is to ric a l e xa m ple o f p riv a te ly o w ned g ove rn m en ts , a n d d em ocra tic

r e p ub lic s t h at o f p ub lic ly o w ned g ove rn m en ts .

F o r m ost o f i t s h is to ry , m an kin d, i n so fa r a s i t w as s u b je ct t o a n y g ove rn m en t c o n tro l a t a ll, w as u n d er

m on arc h ic a l r ul e. T h ere w ere e xce p tio n s: A th en ia n d em ocra cy, R o m e d urin g i t s r e p ub lic a n e ra u ntil 3 1 B C ,

th e r e p ub lic s o f V en ic e , F lo re n ce a n d G en oa d urin g t h e r e n ais sa n ce p erio d , t h e S w is s c a n to n s s in ce 1 291,

th e U nit e d P ro vin ce s f r o m 1 648 un til 1 673 , a n d E n g la n d u n d er C ro m well f r o m 1 649 u ntil 1 660. Y e t t h ese

w ere r a re o cc ur re n ce s i n a w orld d om in ate d b y m on arc h ie s. W it h t h e e xce p tio n o f S w it z e rla n d, t h ey w ere

s h ort-liv e d p hen om en a.

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Con stra in ed b y m on arc h ic a l s ur ro un din g s, a ll o ld er r e p ub lic s s a tis fie d t h e o p en -e n tr y c o n d it io n o f p ub lic

p ro p erty o n ly i m perfe ctly , f o r w hil e a r e p ub lic a n f o rm o f g ove rn m en t i m plie s b y d efin it io n t h at t h e

g ove rn m en t i s n ot p riv a te ly b ut p ub lic ly o w ned , a n d a r e p ub lic c a n t h us b e e xp ecte d t o p osse ss a n

in here n t t e n d en cy t o w ard t h e a d op tio n o f u n iv e rs a l s u ffr a g e, i n a ll o f t h e e arlie r r e p ub lic s, e n tr y i n to

g ove rn m en t w as l im it e d t o r e la tiv e ly s m all g ro u p s o f " n ob le s."

W it h t h e e n d o f W orld W ar I , m an kin d t rul y l e ft t h e m on arc h ic a l a g e. I n t h e c o ur se o f t h e o n e-a n d -a -h alf

c e n tur ie s s in ce t h e F re n ch R evo lut io n , E ur op e, a n d i n i t s w ake t h e e n tir e w orld , h ave u n d erg on e a

f un dam en ta l t ra n sfo rm atio n . E ve ry w here , m on arc h ic a l r u le a n d s o ve re ig n k in g s w ere r e p la ce d b y

d em ocra tic -r e p ub lic a n r ul e a n d s o ve re ig n " p eo p le s."

T h e f ir s t a ssa ul t o f r e p ub lic a n is m a n d t h e i d ea o f p op ula r s o ve re ig nty o n t h e d om in atin g m on arc h ic a l

p rin cip le w as r e p elle d w it h t h e m il it a ry d efe at o f N ap ole o n a n d t h e r e sto ra tio n o f B o u rb on r u le i n F ra n ce .

A s a r e sul t o f t h e r e vo lut io n ary t e rro r a n d t h e N ap ole o n ic w ars , r e p ub lic a n is m w as w id ely d is c re d it e d f o r

m uc h o f t h e 1 9th c e n tur y.

H ow eve r, t h e d em ocra tic -r e p ub lic a n s p ir it o f t h e F re n ch r e vo lu tio n l e ft a p erm an en t i m prin t. F ro m t h e

re sto ra tio n o f t h e m on arc h ic a l o rd er i n 1 81 5 u ntil t h e o u tb re ak o f W WI i n 1 914, a ll a cro ss E u ro p e p op ula r

p olit ic a l p artic ip atio n a n d r e p re se n ta tio n w as s y ste m atic a lly e xp an d ed . T h e f r a n ch is e w as s u cce ssiv e ly

w id en ed a n d t h e p ow ers o f p op ul arly e le cte d p arlia m en ts i n cre ase d e ve ry w here .

Fro m 1 815 t o 1 830, t h e r ig ht t o v o te i n F ra n ce w as s til l s e ve re ly r e stric te d u n d er t h e r e sto re d B o u rb on s.

O ut o f a p op ul atio n o f s o m e 3 0 m il lio n , t h e e le cto ra te i n clu d ed o n ly F ra n ce 's v e ry l a rg est p ro p erty o w ners

— ab out 1 00,0 00 p eo p le ( le ss t h an 0 .5 p erc e n t o f t h e p op ula tio n a b ove t h e a g e o f 2 0). A s a r e su lt o f t h e

Jul y R evo lut io n o f 1 830, t h e a b dic a tio n o f C harle s X a n d t h e a sc e n sio n t o t h e t h ro n e o f t h e D uke o f

O rle an s, L o ui s P h il ip pe, t h e n um ber o f v o te rs i n cre ase d t o a b ou t 2 0 0,0 00. A s a r e su lt o f t h e r e vo lu tio n ary

up heav a ls o f 1 848, F ra n ce a g ain t ur ned r e p ub lic a n , a n d a u n iv e rs a l a n d u n re stric te d s u ffr a g e f o r a ll m ale

c it iz e n s a b ove t h e a g e o f 2 1 w as i n tro d uc ed . N ap ole o n I II w as e le cte d b y n early 5 .5 m il lio n v o te s o u t o f a n

e le cto ra te o f m ore t h an 8 m il lio n .

In t h e U nit e d K in g d om a ft e r 1 815, t h e e le cto ra te c o n sis te d o f s o m e 5 00,0 00 w ell- t o -d o p ro p erty o w ners

(a b out 4 p erc e n t o f t h e p op ul atio n a b ove a g e 2 0). T h e R efo rm B il l o f 1 832 l o w ere d t h e p ro p erty o w ner

re q ui re m en ts a n d e xte n d ed t h e f r a n ch is e t o a b ou t 8 0 0,0 00. T h e n ext e xte n sio n , f r o m a b ou t 1 m il lio n t o 2

m il lio n , c a m e w it h t h e S e co n d R efo rm B il l o f 1 867. I n 1 884 p ro p erty r e stric tio n s w ere r e la xe d e ve n f u rth er,

a n d t h e e le cto ra te i n cre ase d t o a b out 6 m il lio n ( a lm ost a t h ir d o f t h e p op ula tio n a b ove a g e 2 0 a n d m ore

t h an t h re e -fo ur th s o f a ll m ale a d ul ts ).

In P rus sia , a s t h e m ost i m porta n t o f t h e 3 9 i n d ep en d en t G erm an s ta te s r e co g n iz e d a ft e r t h e V ie n na

C on gre ss, d em ocra tiz a tio n s e t i n w it h t h e r e vo lu tio n o f 1 848 a n d t h e c o n stit u tio n o f 1 850. T h e l o w er

ch am ber o f t h e P rus sia n p arlia m en t w as h en ce e le cte d b y u n iv e rs a l m ale s u ffr a g e.

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"In a d dit io n t o i n cre ase d e xp lo it a tio n a n d s o cia l d eca y, t h e t ra n sit io n f r o m m on arc h y t o d em ocra cy h as

b ro ug ht a c h an g e f r o m l im it e d w arfa re t o t o ta l w ar."

H ow eve r, un til 1 918 t h e e le cto ra te r e m ain ed s tra tif ie d i n to t h re e e sta te s w it h d if fe re n t v o tin g p ow ers . F o r

exa m ple , t h e w ealt h ie st p eo p le — th ose w ho c o n trib ute d a t h ir d o f a ll t a xe s — ele cte d a t h ir d o f t h e

m em bers o f t h e l o w er h ous e.

In 1 867, t h e N orth G erm an C on fe d era tio n , i n clu d in g P ru ssia a n d 2 1 o th er G erm an s ta te s, w as f o u n d ed . I t s

c o n stit ut io n p ro vid ed f o r un iv e rs a l, un re stric te d s u ffr a g e f o r a ll m ale s a b ove t h e a g e o f 2 5. I n 1 871, a ft e r

th e v ic to ry o ve r N ap ole o n I II, t h e c o n stit ut io n o f t h e N orth G erm an C on fe d era tio n w as e sse n tia lly

a ssum ed b y t h e n ew ly f o un ded G erm an E m pir e . O ut o f a t o ta l p op ula tio n o f a ro u n d 3 5 m il lio n , n early 8

m il lio n p eo p le ( o r a b out a t h ir d o f t h e p op ula tio n a b ove 2 0) e le cte d t h e f ir s t G erm an R eic h sta g .

A ft e r I t a ly 's p olit ic a l un if ic a tio n un der t h e l e ad ers h ip o f t h e K in g d om o f S ard in ia a n d P ie d m on t i n 1 861,

in it ia lly t h e v o te w as o n ly g iv e n t o a b out 5 00,0 00 p eo p le o u t o f a p op ula tio n o f s o m e 2 5 m il lio n ( a b ou t 3 .5

p erc e n t o f t h e p op ul atio n a b ove a g e 2 0). I n 1 882, t h e p ro p erty r e q uir e m en ts w ere r e la xe d , a n d t h e

m in im um a g e w as l o w ere d f r o m 2 5 t o 2 1 y e ars . A s a r e su lt , t h e I t a lia n e le cto ra te i n cre ase d t o m ore t h an 2

m il lio n . I n 1 913, a n a lm ost un iv e rs a l a n d u n re stric te d s u ffr a g e f o r a ll m ale s a b ove 3 0 a n d m in im ally

r e stric te d s uf fr a g e f o r m ale s a b ove 2 1 w as i n tro d uce d , r a is in g t h e n um ber o f I t a lia n v o te rs t o m ore t h an 8

m il lio n ( m ore t h an 4 0 p erc e n t o f t h e p op ula tio n a b ove 2 0).

In A us tria , r e stric te d a n d un eq ua l m ale s uf fr a g e w as i n tro d uce d i n 1 873. T h e e le cto ra te , c o m pose d o f f o u r

cla sse s o r c u ria o f un eq ua l v o tin g p ow ers , t o ta le d 1 .2 m il lio n v o te rs o u t o f a p op ula tio n o f a b ou t 2 0

m il lio n ( 1 0 p erc e n t o f t h e p op ul atio n a b ove 2 0). I n 1 867 a f if t h cu ria w as a d ded . A nd f o rty y e ars l a te r t h e

cu ria s y ste m w as a b olis h ed , a n d un iv e rs a l a n d e q ual s u ffr a g e f o r m ale s a b ove a g e 2 4 w as a d op te d ,

b rin gin g t h e n um ber o f v o te rs c lo se t o 6 m il lio n ( a lm ost 4 0 p erc e n t o f t h e p op ula tio n a b ove 2 0).

R us sia h ad e le cte d p ro vin cia l a n d d is tric t c o u n cil s — z e m stv o s — sin ce 1 864; a n d i n 1 905, a s a f a llo ut o f i t s

lo st w ar a g ain st J a p an , i t c re ate d a p arlia m en t — th e D um a — whic h w as e le cte d b y a n ear un iv e rs a l,

a lt h oug h i n d ir e ct a n d un eq ua l, m ale s uf fr a g e. A s f o r E u ro p e's m in or p ow ers , u n iv e rs a l o r a lm ost u n iv e rs a l

a n d e q ua l m ale s uf fr a g e h as e xis te d i n S w it z e rla n d s in ce 1 848, a n d w as a d op te d b etw een 1 890 a n d 1 910

in B elg ium , t h e N eth erla n d s, N orw ay, S w ed en , S p ain , G re ece , B u lg aria , S e rb ia , a n d T u rk e y.

A lt h oug h i n cre asin g ly e m asc ul ate d , t h e m on arc h ic a l p rin cip le r e m ain ed d om in an t u ntil t h e c a ta cly sm ic

e ve n ts o f W WI. B efo re 1 914, o n ly t w o r e p ub lic s e xis te d i n E u ro p e — Fra n ce a n d S w it z e rla n d. A nd o f a ll

m ajo r E ur op ean m on arc h ie s, o n ly t h e U nit e d K in g d om c o u ld b e c la ssif ie d a s a p arlia m en ta ry s y ste m ; t h at

is , o n e w here t h e s up re m e p ow er w as v e ste d i n a n e le cte d p arlia m en t.

O nly f o ur y e ars l a te r, a ft e r t h e U nit e d S ta te s — where t h e d em ocra tic p rin cip le i m plie d i n t h e i d ea o f a

r e p ub lic h ad o n ly r e ce n tly b een c a rrie d t o v ic to ry a s a r e su lt o f t h e d estru ctio n o f t h e s e ce ssio n is t

C on fe d era cy b y t h e c e n tra lis t U nio n g ove rn m en t — had e n te re d t h e E ur op ean w ar a n d d ecis iv e ly

d ete rm in ed i t s o ut co m e, m on arc h ie s h ad a ll b ut d is a p peare d , a n d E u ro p e t u rn ed t o d em ocra tic

r e p ub lic a n is m .

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In E ur op e, t h e d efe ate d R o m an ovs, H oh en zo lle rn s, a n d H ab sb urg s h ad t o a b dic a te o r r e sig n , a n d R u ssia ,

G erm an y, a n d A us tria b eca m e d em ocra tic r e p ub lic s w it h u n iv e rs a l — male a n d f e m ale — su ffr a g e a n d

p arlia m en ta ry g ove rn m en ts . L ik e w is e , a ll o f t h e n ew ly c re ate d s u cce sso r s ta te s — Po la n d, F in la n d, E sto n ia ,

La tv ia , L it h ua nia , H un gary , a n d C ze ch oslo va k ia ( w it h t h e s o le e xce p tio n o f Y u g osla v ia ) — ad op te d

d em ocra tic -r e p ub lic a n c o n stit ut io n s.

In T ur ke y a n d G re ece , t h e m on arc h ie s w ere o ve rth ro w n. E ve n w here m on arc h ie s r e m ain ed n om in ally i n

e xis te n ce , a s i n G re at B rit a in , I t a ly , S p ain , B elg iu m , t h e N eth erla n d s, a n d t h e S ca n d in av ia n c o u ntrie s,

m on arc h s n o l o n g er e xe rc is e d a n y g ove rn in g p ow er. U niv e rs a l a d ult s u ffr a g e w as i n tro d uce d , a n d a ll

g ove rn m en t p ow er w as i n ve ste d i n p arlia m en ts a n d " p ub lic " o ffic ia ls . A n ew w orld o rd er — th e

d em ocra tic -r e p ub lic a n a g e, un der t h e a e g is o f a d om in atin g U S g ove rn m en t — had b eg un .

III. E v id en ce a n d I llu str a tio n s: E xp lo it a tio n a n d P re se n t-O rie n te d ness u n d er M on arc h y a n d

D em ocra tic R ep ub lica n is m

F ro m t h e v ie w poin t o f e co n om ic t h eo ry , t h e e n d o f W WI c a n b e i d en tif ie d a s t h e p oin t i n t im e a t w hic h

p riv a te g ove rn m en t o w ners h ip w as c o m ple te ly r e p la ce d b y p ub lic g ove rn m en t o w ners h ip , a n d w hen ce a

s y ste m atic t e n d en cy t o w ard i n cre ase d e xp lo it a tio n — gove rn m en t g ro w th — an d r is in g d eg re es o f s o cia l

tim e p re fe re n ce — pre se n t-o rie n te d ness — ca n b e e xp ecte d t o t a ke o ff. I n d ee d , t h is h as b een t h e g ra n d,

un derly in g t h em e o f p ost-W WI W este rn h is to ry : f r o m 1 918 o nw ard p ra ctic a lly a ll i n d ic a to rs

1. o f g ove rn m en ta l e xp lo it a tio n a n d

2. o f r is in g t im e p re fe re n ce s h ave e xh ib it e d a s y ste m atic u p w ard t e n d en cy.

III.1 . I n d ic a to rs o f E xp lo it a tio n

Th ere i s n o d oub t t h at t h e a m oun t o f t a xe s i m pose d o n c iv il s o cie ty i n cre ase d d ur in g t h e m on arc h ic a l

a g e. H ow eve r, t h ro ug hout t h e e n tir e p erio d , t h e sh are o f g ove rn m en t r e ve n ue re m ain ed r e m ark ab ly

s ta b le a n d l o w . E co n om ic h is to ria n C arlo M . C ip olla c o n clu d es,

A ll i n all, o ne m ust a d m it t ha t t he p ortio n of i nc om e d ra w n by t he p ub lic

s e cto r m ost c e rta inl y i nc re ase d f r o m t he e le ve n th ce n tu ry o nw ard a ll o ve r

Eu ro p e, b ut i t i s d if fic u lt t o i m ag in e t ha t, a p art f r o m p artic u la r t im es a nd

p la ce s, t he p ub lic p ow er e ve r m ana ged t o d ra w m ore t ha n 5 t o 8 p erc e n t o f

na tio na l i nc om e.

And h e t h en g oes o n t o n ote t h at t h is p ortio n w as n ot s y ste m atic a lly e xce ed ed u n til t h e s e co n d h alf o f

th e 1 9th c e n tur y. U ntil t h en , o f a ll W este rn E ur op ean c o un trie s o n ly t h e U nit e d K in g d om h ad a n i n co m e

ta x ( f r o m 1 843 o n ). F ra n ce f ir s t i n tro d uc ed s o m e f o rm o f i n co m e t a x i n 1 873, I t a ly i n 1 877, N orw ay i n 1 892,

th e N eth erla n d s i n 1 894, A us tria i n 1 898, S w ed en i n 1 903, t h e U nit e d S ta te s i n 1 913, S w it z e rla n d i n 1 916,

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Den m ark a n d F in la n d i n 1 917, I r e la n d a n d B elg iu m i n 1 922, a n d G erm an y i n 1 924. Y e t e ve n a t t h e t im e

of t h e o ut bre ak o f W WI, t o ta l g ove rn m en t e xp en d it u re a s a p erc e n ta g e o f G ro ss D om estic P ro d uct ( G D P)

ty p ic a lly h ad n ot r is e n a b ove 1 0 p erc e n t a n d o n ly r a re ly , a s i n t h e c a se o f G erm an y, e xce ed ed 1 5 p erc e n t.

In s trik in g c o n tra st, w it h t h e o n se t o f t h e d em ocra tic -r e p ub lic a n a g e, t o ta l g ove rn m en t e xp en d it u re a s a

p erc e n ta g e o f G D P t y p ic a lly i n cre ase d t o 2 0 t o 3 0 p erc e n t i n t h e c o u rs e o f t h e 1 920s a n d 1 930s, a n d b y

th e m id -1 970s h ad g en era lly r e ach ed 5 0 p erc e n t.

T h ere i s a ls o n o d oub t t h at t o ta l g ove rn m en t e m ploym en t i n cre ase d d ur in g t h e m on arc h ic a l a g e. B ut u ntil

t h e v e ry e n d o f t h e 1 9th c e n tur y, g ove rn m en t e m plo ym en t r a re ly e xce ed ed 3 p erc e n t o f t h e t o ta l l a b or

fo rc e . I n c o n tra st, b y t h e m id -1 970s g ove rn m en t e m plo ym en t a s a p erc e n ta g e o f t h e t o ta l l a b or f o rc e h ad

ty p ic a lly g ro w n t o a b ove 1 5 p erc e n t.

T h e s a m e p atte rn e m erg es f r o m a n i n sp ectio n o f i n fla tio n a n d t h e m on ey s u p ply . T h e m on arc h ic a l w orld

w as g en era lly c h ara cte riz e d b y t h e e xis te n ce o f a co m modi ty m on ey — ty p ic a lly s il v e r o r g old . A

c o m mod it y m on ey s ta n d ard m ake s i t d if f ic u lt , i f n ot i m possib le , f o r a g ove rn m en t t o i n fla te t h e m on ey

sup ply .

T h ere h ad b een a tte m pts t o i n tro d uc e a n i r re d ee m ab le f ia t c u rre n cy. B u t t h ese f ia t-m on ey e xp erim en ts ,

a sso cia te d i n p artic ul ar w it h t h e B an k o f A m ste rd am , t h e B an k o f E n g la n d, a n d J o h n L a w a n d t h e B an q ue

Roya le o f F ra n ce , h ad b een r e g io n al c ur io sit ie s w hic h e n d ed q uic k ly i n f in an cia l d is a ste rs , s u ch a s t h e

co lla p se o f t h e D ut ch " T ul ip M an ia " i n 1 637 , a n d t h e " M is sis sip pi B u b ble " a n d t h e " S o u th S e a B u b ble " i n

1 720. A s h ard a s t h ey t rie d , m on arc h ic a l r ul ers d id n ot s u cce ed i n e sta b lis h in g m on op olie s o f p ure f ia t

cur re n cie s, i .e ., o f i r re d eem ab le g ove rn m en t p ap er m on ie s, w hic h c a n b e c re ate d v ir tu ally o u t o f t h in a ir ,

a t p ra ctic a lly n o c o st.

It w as o n ly un der c o n d it io n s o f a ll- a ro un d d em ocra tic r e p ub lic a n is m , a ft e r 1 9 18, t h at t h is f e at w as

a cco m plis h ed . D ur in g W WI, a s d ur in g e arlie r w ars , b ellig ere n t g ove rn m en ts w en t o ff t h e g old s ta n d ard .

U nlik e e arlie r w ars , h ow eve r, W WI d id n ot c o n clu d e w it h a r e tu rn t o t h e g old s ta n d ard . I n ste ad , f r o m t h e

m id -1 920s un til 1 971, a n d i n te rrup te d b y a s e rie s o f i n te rn atio n al m on eta ry c ris e s, a p se u d o-g old

s ta n d ard — th e g old -e xch an g e s ta n d ard — was i m ple m en te d . I n 1 971, t h e l a st r e m nan t o f t h e

in te rn atio n al g old s ta n d ard w as a b olis h ed . S in ce t h en , a n d f o r t h e f ir s t t im e i n h is to ry , t h e e n tir e w orld h as

a d op te d a p ur e f ia t-m on ey s y ste m o f f r e ely f lu ctu atin g g ove rn m en t p ap er c u rre n cie s.

A s a r e sul t, a s e em in g ly p erm an en t s e cul ar t e n d en cy t o w ard i n fla tio n a n d c u rre n cy d ep re cia tio n h as c o m e

in to e xis te n ce .

D ur in g t h e m on arc h ic a l a g e, w it h a c o m m od it y m on ey l a rg ely o u ts id e o f g ove rn m en t c o n tro l, t h e " le ve l"

o f p ric e s h ad g en era lly f a lle n a n d t h e p ur ch asin g p ow er o f m on ey i n cre ase d , e xce p t d urin g t im es o f w ar

o r n ew g old d is c o ve rie s. V ario us p ric e i n d ic e s f o r B rit a in , f o r i n sta n ce , i n d ic a te t h at p ric e s w ere

s ub sta n tia lly l o w er i n 1 760 t h an t h ey h ad b een a h un d re d y e ars e arlie r; a n d i n 1 860 t h ey w ere l o w er t h an

th ey h ad b een i n 1 760. C on necte d b y a n i n te rn atio n al g old s ta n d ard , t h e d eve lo p m en t i n o th er

co un trie s w as s im il a r.

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In s h arp c o n tra st, d ur in g t h e d em ocra tic -r e p ub lic a n a g e, w it h t h e w orld f in an cia l c e n te r s h if t e d f r o m

Brit a in t o t h e U nit e d S ta te s, a v e ry d if fe re n t p atte rn e m erg ed . F o r i n sta n ce , s h ortly a ft e r W WI, i n 1 921, t h e

U S w hole sa le -c o m mod it y p ric e i n d ex s to o d a t 1 1 3. A ft e r W WII, i n 1 948, i t h ad r is e n t o 1 85. I n 1 971 i t

w as 2 55, b y 1 981 i t r e ach ed 6 58, a n d i n 1 99 1 i t w as n ear 1 ,0 00. D urin g o n ly t w o d eca d es o f i r re d eem ab le

f ia t m on ey, t h e c o n sum er p ric e i n d ex i n t h e U nit e d S ta te s r o se f r o m 4 0 i n 1 971 t o 1 36 i n 1 991, i n t h e

U nit e d K in g d om i t c lim bed f r o m 2 4 t o 1 57, i n F ra n ce f r o m 3 0 t o 1 37, a n d i n G erm an y f r o m 5 6 t o 1 16.

Sim il a rly , d ur in g m ore t h an 7 0 y e ars , f r o m 1 8 45 u ntil t h e e n d o f W WI i n 1 918, t h e B rit is h m on ey s u p ply

h ad i n cre ase d a b out 6 -fo ld . I n d is tin ct c o n tra st, d ur in g t h e 7 3 y e ars f r o m 1 918 u ntil 1 991, t h e U S m on ey

sup ply i n cre ase d m ore t h an 6 4-fo ld .

In a d dit io n t o t a xa tio n a n d i n fla tio n , a g ove rn m en t c a n r e so rt t o d eb t i n o rd er t o f in an ce i t s c u rre n t

exp en d it ur es. A s w it h t a xa tio n a n d i n fla tio n , t h ere i s n o d ou b t t h at g ove rn m en t d eb t i n cre ase d i n t h e

co ur se o f t h e m on arc h ic a l a g e. H ow eve r, a s p re d ic te d t h eo re tic a lly , i n t h is f ie ld m on arc h s a ls o s h ow ed

co n sid era b ly m ore m od era tio n a n d f a rs ig hte d ness t h an d em ocra tic -r e p ub lic a n c a re ta ke rs .

T h ro ug hout t h e m on arc h ic a l a g e, g ove rn m en t d eb ts w ere e sse n tia lly w ar d eb ts . W hil e t h e t o ta l d eb t

th ere b y t e n d ed t o i n cre ase o ve r t im e, d ur in g p eace t im e a t l e ast m on arc h s c h ara cte ris tic a lly re duc ed t h eir

d eb ts . T h e B rit is h e xa m ple i s f a ir ly r e p re se n ta tiv e . I n t h e c o u rs e o f t h e 1 8th a n d 1 9 th c e n tu rie s,

g ove rn m en t d eb t i n cre ase d . I t w as 7 6 m il l io n p ou n d s a ft e r t h e S p an is h W ar i n 1 748, 1 27 m il lio n a ft e r t h e

Se ve n Y e ars ' W ar i n 1 763, 2 32 m il lio n a ft e r t h e A m eric a n W ar o f I n d ep en d en ce i n 1 783, a n d 9 00 m il lio n

aft e r t h e N ap ole o n ic W ars i n 1 815. Y e t d ur in g e ach p eace tim e p erio d — fr o m 1 727–1 739, f r o m 1 748–

1756, a n d f r o m 1 762–1 775, t o ta l d eb t a ctu ally d ecre ase d . F ro m 1 815 u ntil 1 914, t h e B rit is h n atio n al d eb t

fe ll f r o m a t o ta l o f 9 00 t o b elo w 7 00 m il lio n p ou n d s.

In s trik in g c o n tra st, s in ce t h e o n se t o f t h e d em ocra tic -r e p ub lic a n a g e B rit is h d eb t o n ly i n cre ase d , i n w ar

a n d i n p eace . I n 1 920 i t w as 7 .9 b il lio n p oun ds, i n 1 938, 8 .3 b il lio n , i n 1 945, 2 2.4 b il lio n , i n 1 970, 3 4 b il lio n ,

an d s in ce t h en i t h as s k yro ck e te d t o m ore t h an 1 90 b il lio n p ou n d s i n 1 987.

Lik e w is e , U S g ove rn m en t d eb t h as i n cre ase d t h ro u g h w ar a n d p eace . F e d era l g ove rn m en t d eb t a ft e r W WI,

in 1 919, w as a b out 2 5 b il lio n d olla rs . I n 1 94 0 i t w as 4 3 b il lio n , a n d a ft e r W WII, i n 1 946, i t s to od a t a b ou t

270 b il lio n . B y 1 970 i t h ad r is e n t o 3 70 b il lio n , a n d s in ce 1 971, u n d er a p ure f ia t-m on ey r e g im e, i t h as

e xp lo d ed . I n 1 979 i t w as a b out 8 40 b il lio n , a n d i n 1 985 m ore t h an 1 .8 t ril lio n . I n 1 988 i t r e ach ed a lm ost 2 .5

t ril lio n , a n d b y 1 992 i t e xce ed ed 3 t ril lio n d olla rs .

F in ally , t h e s a m e t e n d en cy t o w ard i n cre ase d e xp lo it a tio n a n d p re se n t-o rie n ta tio n e m erg es u p on

exa m in atio n o f g ove rn m en t le g is la tio n a n d re g u la tio n . D ur in g t h e m on arc h ic a l a g e, w it h a c le ar- c u t

d is tin ctio n b etw een t h e r ul er a n d t h e r ul ed , t h e k in g a n d h is p arlia m en t w ere h eld t o b e u n de r t h e l a w .

Th ey a p plie d p re exis tin g l a w a s j ud ge o r j u ry .

T h ey d id n ot m ake l a w . W rit e s B ertra n d d e J o u ve n el,

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T he m ona rc h was l o oke d o n onl y a s j u d ge a nd no t a s l e g is la to r. H e m ad e

su b je ctiv e r ig hts r e sp ecte d a nd r e sp ecte d t he m hi m se lf ; he f o u nd t he se

rig hts i n being a nd d id no t d is p ute t ha t t he y w ere a n te rio r t o hi s a u tho rit y .…

S u b je ctiv e r ig hts w ere no t he ld o n the p re ca rio u s t e nu re o f g ra n t b ut w ere

fr e eho ld p osse ssio ns . T he s o ve re ig n's r ig ht a ls o w as a f r e eho ld . I t w as a

s u b je ctiv e r ig ht a s m uch as t he o the r r ig hts , t ho ug h of a m ore e le va te d

d ig ni ty , b ut i t c o u ld no t t a ke t he o the r r ig hts a w ay.

To b e s ur e, t h e m on op oliz a tio n o f l a w a d m in is tra tio n l e d t o h ig her p ric e s a n d /o r l o w er p ro d uct q ualit y

th an t h ose t h at w oul d h ave p re va il e d un der c o m petit iv e c o n d it io n s, a n d i n t h e c o u rs e o f t im e k in g s

em plo ye d t h eir m on op oly i n cre asin g ly t o t h eir o w n a d va n ta g e. B u t a s l a te a s t h e b eg in nin g o f t h e 2 0th

c e n tur y, A .V . D ic e y c o ul d s til l m ain ta in t h at a s f o r G re at B rit a in , f o r i n sta n ce , l e g is la tiv e l a w — pub lic l a w —

a s d is tin ct f r o m p re exis tin g l a w — priv a te l a w — did n ot e xis t.

In s trik in g c o n tra st, un der d em ocra cy, w it h t h e e xe rc is e o f p ow er s h ro u d ed i n a n onym it y , p re sid en ts a n d

p arlia m en ts q ui ck ly c a m e t o r is e a b ove t h e l a w . T h ey b eca m e n ot o n ly j ud ge b ut l e g is la to r, t h e c re ato r o f

"n ew " l a w . To d ay, n ote s J o uv en el,

w e a re u se d t o ha ving o u r r ig hts m od if ie d b y t he s o ve re ig n decis io ns o f

le g is la to rs . A l a nd lo rd no l o ng er f e els s u rp ris e d a t b eing c o m pelle d t o k e ep a

t e na nt; a n em plo ye r i s no l e ss u se d t o ha ving t o r a is e t he w ag es o f hi s

em plo ye es i n vir tu e o f t he d ecre es o f P o w er. N ow ad ays i t i s u nd ers to od t ha t

ou r s u b je ctiv e r ig hts a re p re ca rio u s a nd a t t he g ood p le asu re o f a u tho rit y .

In a d eve lo p m en t s im il a r t o t h e d em ocra tiz a tio n o f m on ey — th e s u b stit u tio n o f g ove rn m en t p ap er

m on ey f o r p riv a te c o m mod it y m on ey a n d t h e r e su lt in g i n fla tio n a n d i n cre ase d f in an cia l u n ce rta in ty —

t h e d em ocra tiz a tio n o f l a w a n d l a w a d m in is tra tio n h as l e d t o a s te ad il y g ro w in g f lo od o f l e g is la tio n .

Pre se n tly , t h e n um ber o f l e g is la tiv e a cts a n d r e g ula tio n s p asse d b y p arlia m en ts i n t h e c o u rs e o f a s in g le

y e ar i s i n t h e t e n s o f t h ous an d s, f il lin g h un dre d s o f t h ou sa n d s o f p ag es, a ffe ctin g a ll a sp ects o f c iv il a n d

co m merc ia l l if e , a n d r e sul tin g i n a s te ad y d ep re cia tio n o f a ll l a w a n d h eig hte n ed l e g al u n ce rta in ty .

A s a t y p ic a l e xa m ple , t h e 1 994 e d it io n o f t h e C ode o f F e de ra l R eg u la tio n s ( C FR ), t h e a n nua l c o m pen d ium o f

all U S F e d era l G ove rn m en t r e g ul atio n s c ur re n tly i n e ffe ct, c o n sis ts o f a t o ta l o f 2 01 b ooks, o cc u p yin g

ab out 2 6 f e et o f l ib ra ry s h elf s p ace . T h e C od e's i n d ex a lo n e i s 7 54 p ag es. T h e C od e c o n ta in s r e g ula tio n s

co n ce rn in g t h e p ro d uc tio n a n d d is trib ut io n o f a lm ost e ve ry th in g i m ag in ab le : f r o m c e le ry , m ush ro om s,

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wate rm elo n s, w atc h b an d s, t h e l a b elin g o f i n ca n d esc e n t l ig ht b ulb s, h osie ry , i r o n a n d s te el m an ufa ctu rin g,

an d o n io n r in g s m ad e o ut o f d ic e d o n io n s, r e ve alin g t h e a lm ost-t o ta lit a ria n p ow er o f a d em ocra tic

g ove rn m en t.

III.2 . I n d ic a to rs o f P re se n t-O rie n te d ness

T h e p hen om en on o f s o cia l t im e p re fe re n ce i s s o m ew hat m ore e lu siv e t h an t h at o f e xp ro p ria tio n a n d

exp lo it a tio n , a n d i t i s m ore c o m plic a te d t o i d en tif y s u it a b le i n d ic a to rs o f p re se n t-o rie n ta tio n . M ore o ve r,

s o m e i n d ic a to rs a re l e ss d ir e ct — "s o ft e r" — th an t h ose o f e xp lo it a tio n . B u t a ll o f t h em p oin t i n t h e s a m e

dir e ctio n a n d t o g eth er p ro vid e a s c le ar a n i l lu stra tio n o f t h e s e co n d t h eo re tic a l p re d ic tio n : t h at

d em ocra tic r ul e a ls o p ro m ote s s h orts ig hte d ness ( p re se n t-o rie n ta tio n ) w it h in c iv il s o cie ty .

T h e m ost d ir e ct i n d ic a to r o f s o cia l t im e p re fe re n ce i s t h e r a te o f in te re st . T h e i n te re st r a te i s t h e r a tio o f t h e

va lua tio n o f p re se n t g ood s a s c o m pare d t o f u tu re g ood s. M ore s p ecif ic a lly , i t i n d ic a te s t h e p re m iu m a t

w hic h p re se n t m on ey i s t ra d ed a g ain st f u tu re m on ey. A h ig h i n te re st r a te i m plie s m ore " p re se n t-

o rie n te d ness" a n d a l o w r a te o f i n te re st i m plie s m ore " fu tu re -o rie n ta tio n ."

U nd er n orm al c o n d it io n s — th at i s , un der t h e a ssu m ptio n o f i n cre asin g s ta n d ard s o f l iv in g a n d r e al-

m on ey i n co m es — th e i n te re st r a te c a n b e e xp ecte d t o f a ll a n d u lt im ate ly a p pro ach , y e t n eve r q uit e

re ach , z e ro . W it h r is in g r e al i n co m es, t h e m arg in al u til it y o f p re se n t m on ey f a lls r e la tiv e t o t h at o f f u tu re

m on ey, a n d h en ce un der t h e c e te ris p arib us a ssu m ptio n o f a g iv e n t im e p re fe re n ce sc h edul e ,t h e i n te re st

ra te m us t f a ll. C on se q uen tly , s a v in g s a n d i n ve stm en t w il l i n cre ase , f u tu re r e al i n co m es w il l b e s til l h ig her,

a n d s o o n .

In f a ct, a t e n d en cy t o w ard f a llin g i n te re st r a te s c h ara cte riz e s m an kin d 's s u p ra se cu la r t re n d o f

d eve lo p m en t. M in im um i n te re st r a te s o n " n orm al s a fe l o an s" w ere a ro u n d 1 6 p erc e n t a t t h e b eg in nin g o f

G re ek f in an cia l h is to ry i n t h e 6 th c e n tur y B C , a n d f e ll t o 6 p erc e n t d urin g t h e H elle n is tic p erio d . I n R o m e,

m in im um i n te re st r a te s f e ll f r o m m ore t h an 8 p erc e n t d urin g t h e e arlie st p erio d o f t h e R ep ub lic t o 4

p erc e n t d ur in g t h e f ir s t c e n tur y o f t h e E m pir e . I n 1 3th -c e n tu ry E u ro p e, t h e l o w est i n te re st r a te s o n 's a fe '

lo an s w ere 8 p erc e n t. I n t h e 1 4th c e n tur y t h ey c a m e d ow n t o a b ou t 5 p erc e n t. I n t h e 1 5th c e n tu ry t h ey f e ll

t o 4 p erc e n t. I n t h e 1 7th c e n tur y t h ey w en t d ow n t o 3 p erc e n t. A nd a t t h e e n d o f t h e 1 9th c e n tu ry ,

m in im um i n te re st r a te s h ad f ur th er d eclin ed t o l e ss t h an 2 .5 p erc e n t.

T h is t re n d w as b y n o m ean s s m ooth . I t w as f r e q uen tly i n te rru p te d b y p erio d s, s o m etim es a s l o n g a s

ce n tur ie s, o f r is in g i n te re st r a te s. H ow eve r, s u ch p erio d s w ere a sso cia te d w it h m ajo r w ars a n d r e vo lu tio n s.

F ur th erm ore , w here as h ig h o r r is in g m in im um i n te re st r a te s i n d ic a te p erio d s o f g en era lly l o w o r d eclin in g

liv in g s ta n d ard s, t h e o ve rrid in g o p posit e t e n d en cy t o w ard l o w a n d f a llin g i n te re st r a te s r e fle cts m an kin d 's

o ve ra ll p ro g re ss — it s a d va n ce f r o m b arb aris m t o c iv il iz a tio n . S p ecif ic a lly , t h e t re n d t o w ard l o w er i n te re st

ra te s r e fle cts t h e r is e o f t h e W este rn W orld , i t s p eo p le s' i n cre asin g p ro sp erit y , f a rs ig hte d ness, i n te llig en ce ,

an d m ora l s tre n g th , a n d t h e un para lle le d h eig ht o f 1 9th -c e n tu ry E u ro p ean c iv il iz a tio n .

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Befo re t h is h is to ric a l b ack d ro p a n d i n a cco rd an ce w it h e co n om ic t h eo ry , t h en , i t s h ou ld b e e xp ecte d t h at

2 0th -c e n tur y i n te re st r a te s w oul d h ave t o b e s til l lo w er t h an 1 9th -c e n tur y r a te s. I n d eed , o n ly t w o p ossib le

e xp la n atio n s e xis t w hy t h is i s n ot s o . T h e f ir s t p ossib il it y i s t h at 2 0th -c e n tur y r e al i n co m es d id n ot e xce ed ,

or e ve n f e ll b elo w , 1 9th -c e n tur y i n co m es. H ow eve r, t h is e xp la n atio n c a n b e r u le d o u t o n e m pir ic a l

g ro un ds, f o r i t s e em s f a ir ly un co n tro ve rs ia l t h at 2 0 th -c e n tu ry i n co m es a re i n f a ct h ig her.

T h en o n ly t h e s e co n d e xp la n atio n r e m ain s. I f r e al i n co m es a re h ig her b ut i n te re st r a te s a re n ot l o w er, t h en

th e c e te ris p arib us c la us e c a n n o l o n g er b e a ssu m ed t ru e. R ath er, t h e s o cia l t im e p re fe re n ce sc h edul e m us t

have s h if t e d up ward . T h at i s , t h e c h ara cte r o f t h e p op ula tio n m ust h ave c h an g ed . P eo p le o n t h e a ve ra g e

m us t h ave l o st i n m ora l a n d i n te lle ctua l s tre n g th a n d h ave b eco m e m ore p re se n t-o rie n te d . I n d eed , t h is

a p pears t o b e t h e c a se .

Fro m 1 815 o nw ard , t h ro ug hout E ur op e a n d t h e W este rn W orld , m in im um i n te re st r a te s s te ad il y d eclin ed

to a n h is to ric l o w o f, o n t h e a ve ra g e, w ell b elo w 3 p erc e n t a t t h e t u rn o f t h e c e n tu ry . W it h t h e o n se t o f t h e

d em ocra tic -r e p ub lic a n a g e, t h is e arlie r t e n d en cy c a m e t o a h alt a n d s e em s t o h ave c h an g ed d ir e ctio n ,

re ve alin g 2 0th -c e n tur y E ur op e a n d t h e U nit e d S ta te s a s d eclin in g c iv il iz a tio n s.

A n i n sp ectio n o f t h e l o w est d ece n nia l a ve ra g e i n te re st r a te s f o r B rit a in , F ra n ce , t h e N eth erla n d s, B elg iu m ,

Germ an y, S w ed en , S w it z e rla n d, a n d t h e U nit e d S ta te s, f o r i n sta n ce , s h ow s t h at d urin g t h e e n tir e p ost-W WI

era i n te re st r a te s i n E ur op e w ere n eve r a s l o w o r l o w er t h an t h ey h ad b een d urin g t h e s e co n d h alf o f t h e

19th c e n tur y. O nly i n t h e U nit e d S ta te s, i n t h e 1 950s, d id i n te re st r a te s e ve r f a ll b elo w l a te 1 9th -c e n tu ry

ra te s. T h is w as o n ly a s h ort-liv e d p hen om en on , a n d U S i n te re st r a te s e ve n t h en w ere n ot l o w er t h an t h ey

h ad b een i n B rit a in d ur in g t h e s e co n d h alf o f t h e 1 9th c e n tu ry .

In ste ad , 2 0th -c e n tur y r a te s w ere un iv e rs a lly h ig h er t h an 1 9th -c e n tur y r a te s, a n d i f a n yth in g t h ey h ave

e xh ib it e d a ris in g t e n d en cy. T h is c o n clus io n d oes n ot s ub sta n tia lly c h an g e, e ve n w hen i t i s t a ke n i n to

a cco un t t h at m od ern i n te re st r a te s, i n p artic u la r s in ce t h e 1 970s, i n clu d e a s y ste m atic i n fla tio n p re m iu m .

Aft e r a d jus tin g r e ce n t n om in al i n te re st r a te s f o r i n fla tio n i n o rd er t o y ie ld a n e stim ate o f r e a l i n te re st r a te s,

c o n te m pora ry i n te re st r a te s s til l a p pear t o b e s ig n if ic a n tly h ig her t h an t h ey w ere 1 00 y e ars a g o.

O n t h e a ve ra g e, m in im um l o n g -t e rm i n te re st r a te s i n E u ro p e a n d t h e U S n ow ad ays s e em t o b e w ell a b ove

4 p erc e n t a n d p ossib ly a s h ig h a s 5 p erc e n t — th at i s , a b ove t h e i n te re st r a te s o f 1 7th -c e n tu ry E u ro p e a n d

as h ig h o r h ig her t h an 1 5th -c e n tur y r a te s. L ik e w is e , c u rre n t U S s a v in g s r a te s o f a ro u n d 5 p erc e n t o f

d is p osa b le i n co m e a re n o h ig her t h an t h ey w ere m ore t h an 3 00 y e ars a g o i n a m uch p oore r 1 7th -c e n tu ry

E n g la n d.

Para lle l t o t h is d eve lo p m en t a n d r e fle ctin g a m ore s p ecif ic a sp ect o f t h e s a m e u n d erly in g p hen om en on o f

h ig h o r r is in g s o cia l t im e p re fe re n ce s, i n d ic a to rs o f f a m il y d is in te g ra tio n — "d ysfu n ctio n al f a m il ie s" —

h ave e xh ib it e d a s y ste m atic i n cre ase .

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Until t h e e n d o f t h e 1 9th c e n tur y, t h e b ul k o f g ove rn m en t s p en d in g — ty p ic a lly m ore t h an 5 0 p erc e n t —

w en t t o f in an cin g t h e m il it a ry . A ssum in g g ove rn m en t e xp en d it u re s t o b e t h en a b ou t 5 p erc e n t o f t h e

natio n al p ro d uc t, t h is a m oun te d t o m il it a ry e xp en d it u re s o f 2 .5 p erc e n t o f t h e n atio n al p ro d uct. T h e

re m ain d er w en t t o g ove rn m en t a d m in is tra tio n .

W elf a re s p en d in g o r " p ub lic c h arit y " p la ye d a lm ost n o r o le . I n su ra n ce w as c o n sid ere d t o b e i n t h e

p ro vin ce o f i n d iv id ua l r e sp on sib il it y , a n d p ove rty r e lie f s e en a s t h e t a sk o f v o lu nta ry c h arit y . I n c o n tra st, a s

a r e fle ctio n o f t h e e g alit a ria n is m i n here n t i n d em ocra cy, f r o m t h e b eg in nin g o f t h e d em ocra tiz a tio n i n t h e

la te 1 9th c e n tur y o nw ard c a m e t h e c o lle ctiv iz a tio n o f i n d iv id ual r e sp on sib il it y .

M il it a ry e xp en d it ur es h ave t y p ic a lly r is e n t o 5 –1 0 p erc e n t o f t h e n atio n al p ro d uct i n t h e c o u rs e o f t h e 2 0th

c e n tur y. B ut w it h p ub lic e xp en d it ur es c ur re n tly m ak in g u p 5 0 p erc e n t o f t h e n atio n al p ro d uct, m il it a ry

e xp en d it ur es n ow o n ly r e p re se n t 1 0-2 0 p erc e n t o f t o ta l g ove rn m en t s p en d in g. T h e b ulk o f p ub lic

s p en d in g — ty p ic a lly m ore t h an 5 0 p erc e n t o f t o ta l e xp en d it u re s ( o r 2 5 p erc e n t o f t h e n atio n al p ro d uct)

— is n ow e ate n up b y p ub lic -w elf a re s p en d in g.

C on se q uen tly , b y i n cre asin g ly r e lie vin g i n d iv id uals o f t h e r e sp on sib il it y o f h av in g t o p ro vid e f o r t h eir o w n

healt h , s a fe ty , a n d o ld a g e, t h e r a n g e a n d t e m pora l h oriz o n o f p riv a te p ro vis io n ary a ctio n h ave b een

sy ste m atic a lly r e d uc ed . I n p artic ul ar, t h e v a lu e o f m arria g e, f a m il y , a n d c h il d re n h ave f a lle n , b eca u se t h ey

are n eed ed l e ss a s s o on a s o n e c a n f a ll b ack o n 'p ub lic ' a ssis ta n ce .

T h us , s in ce t h e o n se t o f t h e d em ocra tic -r e p ub lic a n a g e t h e n um ber o f c h il d re n h as d eclin ed , a n d t h e s iz e

o f t h e e n d og en ous p op ul atio n h as s ta g n ate d o r e ve n f a lle n . F o r c e n tu rie s, u ntil t h e e n d o f t h e 1 9th

c e n tur y, t h e b ir th r a te h ad b een a lm ost c o n sta n t: s o m ew here b etw een 3 0 t o 4 0 p er 1 ,0 00 p op ula tio n

(us ua lly s o m ew hat h ig her i n p re d om in an tly C ath olic a n d l o w er i n P ro te sta n t c o u ntrie s).

In s h arp c o n tra st, i n t h e c o ur se o f t h e 2 0th c e n tu ry a ll o ve r E u ro p e a n d t h e U S b ir th ra te s h ave e xp erie n ce d

a d ra m atic d eclin e — dow n t o a b out 1 5 t o 2 0 p er 1 ,0 00. A t t h e s a m e t im e, t h e r a te s o f d iv o rc e ,

il le g it im acy, s in g le p are n tin g, s in g le d om , a n d a b ortio n h ave s te ad il y i n cre ase d , w hil e p ers o n al s a v in g s

ra te s h ave b eg un t o s ta g n ate o r e ve n f a ll r a th er t h an r is e p ro p ortio n ally w it h r is in g i n co m es.

M ore o ve r, a s a c o n se q uen ce o f t h e d ep re cia tio n o f l a w r e su lt in g f r o m l e g is la tio n a n d t h e c o lle ctiv iz a tio n

of r e sp on sib il it y e ffe cte d i n p artic ul ar b y s o cia l s e cu rit y l e g is la tio n , t h e r a te o f c rim es o f a s e rio us n atur e,

suc h a s m ur der, a ssa ul t, r o b bery , a n d t h eft , h as a ls o s h ow n a s y ste m atic u p w ard t e n d en cy.

In t h e " n orm al" c o ur se o f e ve n ts — th at i s , w it h r is in g s ta n d ard s o f l iv in g — it c a n b e e xp ecte d t h at t h e

p ro te ctio n a g ain st s o cia l d is a ste rs s uc h a s c rim e w il l u n d erg o c o n tin ual i m pro ve m en t, j u st a s o n e w ou ld

e xp ect t h e p ro te ctio n a g ain st n atur al d is a ste rs s u ch a s f lo od s, e arth q uake s a n d h urric a n es t o b eco m e

pro g re ssiv e ly b ette r. I n d eed , t h ro ug hout t h e W este rn w orld t h is a p pears t o h ave b een t h e c a se b y a n d

la rg e — until r e ce n tly , d ur in g s e co n d h alf o f t h e 2 0th c e n tu ry , w hen c rim e r a te s b eg an t o c lim b s te ad il y

up ward .

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To b e s ur e, t h ere a re a n um ber o f f a cto rs o th er t h an i n cre ase d i r re sp on sib il it y a n d s h orts ig hte d ness

b ro ug ht o n b y l e g is la tio n a n d w elf a re t h at m ay c o n trib ute t o c rim e. M en c o m mit m ore c rim es t h an

w om en , t h e y o un g m ore t h an t h e o ld , b la ck s m ore t h an w hit e s, a n d c it y d w elle rs m ore t h an v il la g ers .

A cco rd in g ly , c h an g es i n t h e c o m posit io n o f t h e s e xe s, a g e g ro u p s, r a ce s, a n d t h e d eg re e o f u rb an iz a tio n

ca n b e e xp ecte d t o h ave a s y ste m atic e ffe ct o n c rim e.

H ow eve r, a ll o f t h ese f a cto rs a re r e la tiv e ly s ta b le a n d t h us c a n not a cco u nt f o r a n y s y ste m atic c h an g e i n

t h e l o n g -t e rm d ow nw ard t re n d o f c rim e r a te s. A s f o r E u ro p ean c o u ntrie s, t h eir p op ula tio n s w ere a n d a re

c o m para tiv e ly h om og en eo us ; a n d i n t h e U nit e d S ta te s, t h e p ro p ortio n o f b la ck s h as r e m ain ed r o u g hly

s ta b le . T h e s e x c o m posit io n i s l a rg ely a b io lo g ic a l c o n sta n t; a n d a s a r e su lt o f w ars , o n ly t h e p ro p ortio n o f

m ale s h as p erio d ic a lly f a lle n , t h us a ctua lly r e in fo rc in g t h e " n orm al" t re n d t o w ard f a llin g c rim e r a te s.

S im il a rly , t h e c o m posit io n o f a g e g ro up s h as c h an g ed o n ly s lo w ly ; a n d d ue t o d eclin in g b ir th r a te s a n d

hig her l if e e xp ecta n cie s t h e a ve ra g e a g e o f t h e p op ula tio n h as a ctu ally i n cre ase d , t h us h elp in g t o d ep re ss

c rim e r a te s s til l f ur th er. F in ally , t h e d eg re e o f u rb an iz a tio n b eg an t o i n cre ase d ra m atic a lly f r o m a b ou t 1 800

o nw ard . A p erio d o f r is in g c rim e r a te s d ur in g t h e e arly 1 9th c e n tu ry c a n b e a ttrib ute d t o t h is i n it ia l s p urt

o f ur ban iz a tio n .

Ye t, a ft e r a p erio d o f a d jus tm en t t o t h e n ew p hen om en on o f u rb an iz a tio n , f r o m t h e m id -1 9th c e n tu ry

o nw ard , t h e c o un te rv a il in g t e n d en cy t o w ard f a llin g c rim e r a te s t o ok h old a g ain , d esp it e t h e f a ct t h at t h e

p ro ce ss o f r a p id ur ban iz a tio n c o n tin ued f o r a b ou t a n oth er h un d re d y e ars . A nd w hen c rim e r a te s b eg an t o

m ove s y ste m atic a lly up ward , f r o m t h e m id -2 0th c e n tu ry o nw ard , t h e p ro ce ss o f i n cre asin g u rb an iz a tio n

h ad a ctua lly c o m e t o a h alt .

It t h us a p pears t h at t h e p hen om en on o f r is in g c rim e r a te s c a n not b e e xp la in ed o th er t h an w it h r e fe re n ce

to t h e p ro ce ss o f d em ocra tiz a tio n : b y a r is in g d eg re e o f s o cia l t im e p re fe re n ce , a n i n cre asin g l o ss o f

in d iv id ua l r e sp on sib il it y , i n te lle ctua lly a n d m ora lly , a n d a d im in is h ed r e sp ect f o r a ll l a w — mora l r e la tiv is m

— stim ulate d b y a n un ab ate d f lo od o f l e g is la tio n . O f c o u rs e , " h ig h t im e p re fe re n ce " i s b y n o m ean s

eq ui va le n t w it h " c rim e." A h ig h t im e p re fe re n ce c a n a ls o f in d e xp re ssio n i n s u ch p erfe ctly l a w fu l a ctiv it ie s

as r e ck le ssn ess, un re lia b il it y , p oor m an ners , l a zin ess, s tu p id it y o r h ed on is m .

Non eth ele ss, a s y ste m atic r e la tio n sh ip b etw een h ig h t im e p re fe re n ce a n d c rim e e xis ts , f o r i n o rd er t o e arn

a m ark e t i n co m e a c e rta in m in im um o f p la n nin g, p atie n ce a n d s a crif ic e i s r e q uir e d . O ne m ust f ir s t w ork f o r

a w hil e b efo re o n e g ets p aid . I n c o n tra st, m ost s e rio u s c rim in al a ctiv it ie s s u ch a s m urd er, a ssa u lt , r a p e,

ro b bery , t h eft , a n d b ur gla ry r e q ui re n o s uc h d is c ip lin e. T h e r e w ard f o r t h e a g gre sso r i s i m med ia te a n d

ta n gib le , w here as t h e s a crif ic e — possib le p un is h m en t — lie s i n t h e f u tu re a n d i s u n ce rta in .

C on se q uen tly , i f t h e s o cia l d eg re e o f t im e p re fe re n ce w ere i n cre ase d , i t w ou ld b e e xp ecte d t h at t h e

fr e q uen cy i n p artic ul ar o f t h ese f o rm s o f a g gre ssiv e b eh av io r w ou ld r is e — as t h ey i n f a ct d id .

IV . C o n clu sio n : M on arc h y, D em ocra cy , a n d t h e I d ea o f a N atu ra l O rd er

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Fro m t h e v a n ta g e p oin t o f e le m en ta ry e co n om ic t h eo ry a n d i n l ig ht o f h is to ric a l e vid en ce , t h en , a

r e vis io n is t v ie w o f m od ern h is to ry r e sul ts . T h e W hig t h eo ry o f h is to ry , a cco rd in g t o w hic h m an kin d

m arc h es c o n tin ua lly f o rw ard t o w ard e ve r h ig her l e ve ls o f p ro g re ss, i s i n co rre ct. F ro m t h e v ie w poin t o f

th ose w ho p re fe r l e ss e xp lo it a tio n o ve r m ore a n d w ho v a lu e f a rs ig hte d ness a n d i n d iv id ual r e sp on sib il it y

a b ove s h orts ig hte d ness a n d i r re sp on sib il it y , t h e h is to ric t ra n sit io n f r o m m on arc h y t o d em ocra cy

re p re se n ts n ot p ro g re ss b ut c iv il iz a tio n al d eclin e.

N or d oes t h is v e rd ic t c h an g e i f m ore o r o th er i n d ic a to rs a re i n clu d ed . Q uit e t o t h e c o n tra ry . W it h ou t

q ues tio n t h e m ost i m porta n t i n d ic a to r o f e xp lo it a tio n a n d p re se n t-o rie n te d ness n ot d is c u sse d a b ove i s

w ar. Y e t i f t h is i n d ic a to r w ere i n clud ed t h e r e la tiv e p erfo rm an ce o f d em ocra tic -r e p ub lic a n g ove rn m en t

ap pears t o b e e ve n w ors e , n ot b ette r. I n a d dit io n t o i n cre ase d e xp lo it a tio n a n d s o cia l d eca y, t h e t ra n sit io n

fr o m m on arc h y t o d em ocra cy h as b ro ug ht a c h an g e f r o m l im it e d w arfa re t o t o ta l w ar, a n d t h e 2 0th

c e n tur y, t h e a g e o f d em ocra cy, m us t b e r a n ke d a ls o a m on g t h e m ost m urd ero u s p erio d s i n a ll o f

h is to ry .

T h us , i n evit a b ly t w o f in al q ues tio n s a ris e . W hat c a n w e e xp ect? A nd w hat c a n w e d o? A s f o r t h e f ir s t

q ues tio n , t h e a n sw er i s b rie f. A t t h e e n d o f t h e 2 0th c e n tu ry , d em ocra tic r e p ub lic a n is m i n t h e U nit e d

Sta te s a n d a ll a cro ss t h e W este rn w orld h as a p pare n tly e xh au ste d t h e r e se rv e f u n d t h at w as i n herit e d

fr o m t h e p ast. F o r d eca d es, r e al i n co m es h ave s ta g n ate d o r e ve n f a lle n . T h e p ub lic d eb t a n d t h e c o st o f

so cia l s e cur it y s y ste m s h ave b ro ug ht o n t h e p ro sp ect o f a n i m min en t e co n om ic m elt d ow n.

A t t h e s a m e t im e, s o cie ta l b re akd ow n a n d s o cia l c o n flic t h ave r is e n t o d an g ero u s h eig hts . I f t h e t e n d en cy

to w ard i n cre ase d e xp lo it a tio n a n d p re se n t-o rie n te d ness c o n tin ues o n i t s c u rre n t p ath , t h e W este rn

d em ocra tic w elf a re s ta te s w il l c o lla p se a s t h e E ast E u ro p ean s o cia lis t p eo p le s' r e p ub lic s d id i n t h e l a te

1 980s. H en ce o n e i s l e ft w it h o n ly t h e s e co n d q uestio n : w hat c a n w e d o i n o rd er t o p re ve n t t h e p ro ce ss o f

civ il iz a tio n al d eclin e f r o m r un nin g i t s f ul l c o u rs e t o a n e co n om ic a n d s o cia l c a ta stro p he?

Fir s t, t h e i d ea o f d em ocra cy a n d m ajo rit y r u le m ust b e d ele g it im iz e d . U lt im ate ly , t h e c o u rs e o f h is to ry i s

d ete rm in ed b y i d eas, b e t h ey t rue or f a ls e . J u st a s k in g s c o u ld n ot e xe rc is e t h eir r u le u n le ss a m ajo rit y o f

p ub lic o p in io n a cce p te d s uc h r ul e a s l e g it im ate , s o w il l d em ocra tic r u le rs n ot l a st w it h ou t i d eo lo g ic a l

sup port i n p ub lic o p in io n .

Lik e w is e , t h e t ra n sit io n f r o m m on arc h ic a l t o d em ocra tic r u le m ust b e e xp la in ed a s f u n d am en ta lly n oth in g

b ut a ch an ge i n p ub lic o p in io n . I n f a ct, un til t h e e n d o f W WI, t h e o ve rw helm in g m ajo rit y o f t h e p ub lic i n

E ur op e a cce p te d m on arc h ic a l r ul e a s l e g it im ate . To d ay, h ard ly a n yo n e w oul d d o s o .

O n t h e c o n tra ry , t h e i d ea o f m on arc h ic a l g ove rn m en t i s c o n sid ere d l a u g hab le . C on se q uen tly , a r e tu rn t o

t h e " a n cie n r e g im e" m us t b e r e g ard ed a s i m possib le . T h e l e g it im acy o f m on arc h ic a l r u le a p pears t o h ave

b een i r re trie va b ly l o st. N or w oul d s uc h a r e tu rn b e a g en uin e s o lu tio n . F o r m on arc h ie s, w hate ve r t h eir

r e la tiv e m erit s , d o e xp lo it a n d do c o n trib ut e t o p re se n t-o rie n te d ness a s w ell. R ath er, t h e i d ea o f

d em ocra tic -r e p ub lic a n r ul e m us t b e r e n d ere d e q ually i f n ot m ore l a u g hab le , n ot i n t h e l e ast b y i d en tif y in g

it a s t h e s o ur ce o f t h e o n g oin g p ro ce ss o f d eciv il iz a tio n .

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But s e co n d ly , a n d s til l m ore i m porta n tly , a t t h e s a m e t im e a p osit iv e a lt e rn ativ e t o m on arc h y a n d

d em ocra cy — th e i d ea o f a n atur al o rd er — must b e s p elle d o u t a n d u n d ers to od . O n t h e o n e h an d, a n d

sim ply e n oug h, t h is i n vo lv e s t h e r e co g n it io n t h at i t i s n ot e xp lo it a tio n , e it h er m on arc h ic a l o r d em ocra tic ,

b ut p riv a te p ro p erty , p ro d uc tio n , a n d v o lun ta ry e xch an g e t h at a re t h e u lt im ate s o u rc e o f h um an

civ il iz a tio n .

O n t h e o th er h an d, p sy ch olo g ic a lly m ore d if fic u lt t o a cce p t, i t i n vo lv e s t h e r e co g n it io n o f a f u n d am en ta l

so cio lo g ic a l i n sig ht ( w hic h i n cid en ta lly a ls o h elp s i d en tif y p re cis e ly w here t h e h is to ric o p posit io n t o

m on arc h y w en t w ro n g ): t h at t h e m ain te n an ce a n d p re se rv a tio n o f a p riv a te -p ro p erty b ase d e xch an g e

eco n om y r e q ui re s a s i t s s o cio lo g ic a l p re sup posit io n t h e e xis te n ce o f a v o lu nta ril y a ck n ow le d ged " n atu ra l"

e lit e — a n obi lit a s n atu ra lis .

T h e n atur al o ut co m e o f t h e v o lun ta ry t ra n sa ctio n s b etw een v a rio u s p riv a te p ro p erty o w ners i s d ecid ed ly

n on eg alit a ria n , h ie ra rc h ic a l, a n d e lit is t. A s t h e r e su lt o f w id ely d iv e rs e h um an t a le n ts , i n e ve ry s o cie ty o f

an y d eg re e o f c o m ple xit y a f e w i n d iv id ua ls q uic k ly a cq uir e t h e s ta tu s o f a n e lit e . O w in g t o s u p erio r

ach ie ve m en ts o f w ealt h , w is d om , b ra ve ry , o r a c o m bin atio n t h ere o f, s o m e i n d iv id uals c o m e t o p osse ss

"n atur al a ut horit y ," a n d t h eir o p in io n s a n d j u d gm en ts e n jo y w id esp re ad r e sp ect.

M ore o ve r, b eca us e o f s e le ctiv e m atin g a n d m arria g e a n d t h e l a w s o f c iv il a n d g en etic i n herit a n ce ,

p osit io n s o f n atur al a ut horit y a re m ore l ik e ly t h an n ot p asse d o n w it h in a f e w — nob le — fa m il ie s. I t i s t o

t h e h ead s o f t h ese f a m il ie s w it h l o n g -e sta b lis h ed r e co rd s o f s u p erio r a ch ie ve m en t, f a rs ig hte d ness, a n d

exe m pla ry p ers o n al c o n d uc t, t h at m en t u rn w it h t h eir c o n flic ts a n d c o m pla in ts a g ain st e ach o th er, a n d i t

is t h ese v e ry l e ad ers o f t h e n atur al e lit e w ho t y p ic a lly a ct a s j u d ges a n d p eace m ake rs , o ft e n f r e e o f c h arg e,

o ut o f a s e n se o f o b lig atio n r e q ui re d a n d e xp ecte d o f a p ers o n o f a u th orit y o r e ve n o u t o f a p rin cip le d

co n ce rn f o r c iv il j us tic e , a s a p riv a te ly p ro d uce d " p ub lic g ood ."

I n f a ct, t h e e n d og en ous o rig in o f a m on arc h y ( a s o p pose d t o i t s e xo g en ou s o rig in v ia c o n q uest) c a n not

b e un ders to od e xce p t b efo re t h e b ack g ro u n d o f a p rio r o rd er o f n atu ra l e lit e s. T h e s m all b ut d ecis iv e s te p

in t h e t ra n sit io n t o m on arc h ic a l r ul e — orig in al s in — co n sis te d p re cis e ly i n t h e m on op oliz a tio n o f t h e

fun ctio n o f j ud ge a n d p eace m ake r. T h e s te p w as t a ke n , o n ce a s in g le m em ber o f t h e v o lu nta ril y

a ck n ow le d ged n atur al e lit e — th e k in g — co u ld i n sis t, a g ain st t h e o p posit io n o f o th er m em bers o f t h e

so cia l e lit e , t h at a ll c o n flic ts w it h in a s p ecif ie d t e rrit o ry b e b ro u g ht b efo re h im .

Fro m t h is m om en t o n , l a w a n d l a w e n fo rc e m en t b eca m e m ore e xp en siv e : i n ste ad o f b ein g o ffe re d f r e e o f

ch arg e o r f o r a v o lun ta ry p aym en t, t h ey w ere f in an ce d w it h t h e h elp o f a c o m puls o ry t a x. A t t h e s a m e

tim e, t h e q ua lit y o f l a w d ete rio ra te d : i n ste ad o f u p hold in g t h e p re exis tin g l a w a n d a p ply in g u n iv e rs a l a n d

im mut ab le p rin cip le s o f j us tic e , a m on op olis tic j u d ge, w ho d id n ot h ave t o f e ar l o sin g c lie n ts a s a r e su lt o f

b ein g l e ss t h an i m partia l i n h is j ud gm en ts , c o u ld s u cce ssiv e ly a lt e r a n d p erv e rt t h e e xis tin g l a w t o h is o w n

ad va n ta g e.

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It w as t o a l a rg e e xte n t t h e i n fla te d p ric e o f j u stic e a n d t h e p erv e rs io n s o f a n cie n t l a w b y t h e k in g s w hic h

m otiv a te d t h e h is to ric a l o p posit io n a g ain st m on arc h y. H ow eve r, c o n fu sio n a s t o t h e c a u se s o f t h is

p hen om en on p re va il e d . T h ere w ere t h ose w ho r e co g n iz e d c o rre ctly t h at t h e p ro b le m l a y w it h m on op oly ,

n ot w it h e lit e s o r n ob il it y . B ut t h ey w ere f a r o ut num bere d b y t h ose w ho e rro n eo u sly b la m ed i t o n t h e

elit is t c h ara cte r o f t h e r ul er i n ste ad , a n d w ho a cco rd in g ly a d vo ca te d t o m ain ta in t h e m on op oly o f l a w a n d

la w e n fo rc e m en t a n d m ere ly r e p la ce t h e k in g a n d t h e v is ib le r o ya l p om p b y t h e " p eo p le " a n d t h e

p re sum ed m od esty a n d d ece n cy o f t h e " c o m m on m an ." H en ce t h e h is to ric s u cce ss o f d em ocra cy.

Ir o n ic a lly , t h e m on arc h y w as t h en d estro ye d b y t h e s a m e s o cia l f o rc e s t h at k in g s h ad f ir s t s tim ula te d

w hen t h ey b eg an t o e xclud e c o m petin g n atu ra l a u th orit ie s f r o m a ctin g a s j u d ges. I n o rd er t o o ve rc o m e

th eir r e sis ta n ce , k in g s t y p ic a lly a lig n ed t h em se lv e s w it h t h e p eo p le , t h e c o m mon m an .

A ppealin g t o t h e a lw ays p op ul ar s e n tim en t o f e n vy, k in g s p ro m is e d t h e p eo p le c h eap er a n d b ette r j u stic e

in e xch an g e a n d a t t h e e xp en se o f t a xin g — cu ttin g d ow n t o s iz e — th eir o w n b ette rs ( t h at i s , t h e k in g s'

c o m petit o rs ). W hen t h e k in g s' p ro m is e s t ur ned o u t t o b e e m pty , a s w as t o b e p re d ic te d , t h e s a m e

eg alit a ria n s e n tim en ts w hic h t h ey h ad p re vio u sly c o u rte d n ow f o cu se d a n d t u rn ed a g ain st t h em .

Aft e r a ll, t h e k in g h im se lf w as a m em ber o f t h e n ob il it y , a n d a s a r e su lt o f t h e e xclu sio n o f a ll o th er j u d ges,

h is p osit io n h ad b eco m e o n ly m ore e le va te d a n d e lit is t a n d h is c o n d uct o n ly m ore a rro g an t. A cco rd in g ly ,

it a p peare d o n ly l o g ic a l t h en t h at k in g s, t o o, s h ou ld b e b ro u g ht d ow n a n d t h at t h e e g alit a ria n p olic ie s,

w hic h m on arc h s h ad i n it ia te d , b e c a rrie d t h ro u g h t o t h eir u lt im ate c o n clu sio n : t h e m on op olis tic c o n tro l o f

th e j ud ic ia ry b y t h e c o m mon m an .

Pre d ic ta b ly , a s e xp la in ed a n d i l lus tra te d i n d eta il a b ove , t h e d em ocra tiz a tio n o f l a w a n d l a w e n fo rc e m en t

— th e s ub stit ut io n o f t h e p eo p le f o r t h e k in g — mad e m atte rs o n ly w ors e , h ow eve r. T h e p ric e o f j u stic e

a n d p eace h as r is e n a stro n om ic a lly , a n d a ll t h e w hil e t h e q ualit y o f l a w h as s te ad il y d ete rio ra te d t o t h e

p oin t w here t h e i d ea o f l a w a s a b od y o f u n iv e rs a l a n d i m muta b le p rin cip le s o f j u stic e h as a lm ost

d is a p peare d f r o m p ub lic o p in io n a n d h as b een r e p la ce d b y t h e i d ea o f l a w a s l e g is la tio n ( g ove rn m en t-

m ad ela w ).

A t t h e s a m e t im e, d em ocra cy h as s uc ce ed ed w here m on arc h y o n ly m ad e a m od est b eg in nin g : i n t h e

ul tim ate d estruc tio n o f t h e n atur al e lit e s. T h e f o rtu n es o f g re at f a m il ie s h ave d is sip ate d , a n d t h eir t ra d it io n

of a c ul tur e o f e co n om ic i n d ep en d en ce , i n te lle ctu al f a rs ig hte d ness, a n d m ora l a n d s p ir it u al l e ad ers h ip h as

b een l o st a n d f o rg otte n . R ic h m en s til l e xis t t o d ay, b ut m ore f r e q uen tly t h an n ot t h ey o w e t h eir f o rtu n e

now d ir e ctly o r i n d ir e ctly t o t h e s ta te .

H en ce , t h ey a re o ft e n m ore d ep en d en t o n t h e s ta te 's c o n tin ued f a vo rs t h an p eo p le o f f a r l e sse r w ealt h .

Th ey a re t y p ic a lly n o l o n g er t h e h ead s o f l o n g -e sta b lis h ed l e ad in g f a m il ie s b ut " n ou ve au x r ic h es." T h eir

c o n d uc t i s n ot m ark e d b y s p ecia l v ir tue , d ig n it y , o r t a ste b ut i s a r e fle ctio n o f t h e s a m e p ro le ta ria n m ass-

c ul tur e o f p re se n t-o rie n te d ness, o p portun is m , a n d h ed on is m t h at t h e r ic h n ow s h are w it h e ve ry o n e e ls e ;

an d c o n se q uen tly , t h eir o p in io n s c a rr y n o m ore w eig ht i n p ub lic o p in io n t h an a n yo n e e ls e 's .

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Hen ce , w hen d em ocra tic r ul e h as f in ally e xh au ste d i t s l e g it im acy, t h e p ro b le m f a ce d w il l b e s ig n if ic a n tly

m ore d if fic ul t t h an w hen k in g s l o st t h eir l e g it im acy. T h en , i t w ou ld h ave b een s u ffic ie n t b y a n d l a rg e t o

a b olis h t h e k in g 's m on op oly o f l a w a n d l a w e n fo rc e m en t a n d r e p la ce i t w it h a n atu ra l o rd er o f c o m petin g

jur is d ic tio n s, b eca us e r e m nan ts o f n atur al e lit e s w ho c o u ld h ave t a ke n o n t h is t a sk s til l e xis te d .

N ow , t h is w il l n o l o n g er b e s uf fic ie n t. I f t h e m on op oly o f l a w a n d l a w e n fo rc e m en t o f d em ocra tic

g ove rn m en ts i s d is so lv e d , t h ere a p pears t o b e n o o th er a u th orit y t o w hom o n e c a n t u rn f o r j u stic e , a n d

ch ao s w oul d s e em t o b e i n evit a b le . T h us , i n a d dit io n t o a d vo ca tin g t h e a b dic a tio n o f d em ocra cy, i t i s n ow

o f c e n tra l s tra te g ic i m porta n ce t h at a t t h e s a m e t im e i d eo lo g ic a l s u p port b e g iv e n t o a ll d ece n tra liz in g o r

eve n s e ce ssio n is t s o cia l f o rc e s; t h at i s , t h e t e n d en cy t o w ard p olit ic a l c e n tra liz a tio n t h at h as c h ara cte riz e d

th e W este rn w orld f o r m an y c e n tur ie s, f ir s t u n d er m on arc h ic a l r u le a n d t h en u n d er d em ocra tic a u sp ic e s,

m us t b e s y ste m atic a lly r e ve rs e d .

Eve n i f a s a r e sul t o f a s e ce ssio n is t t e n d en cy a n ew g ove rn m en t, w heth er d em ocra tic o r n ot, s h ou ld s p rin g

up , t e rrit o ria lly s m alle r g ove rn m en ts a n d i n cre ase d p olit ic a l c o m petit io n w il l t e n d e n co u ra g e m od era tio n

as r e g ard s e xp lo it a tio n . A nd i n a n y c a se , o n ly i n s m all r e g io n s, c o m mun it ie s o r d is tric ts w il l i t b e p ossib le

a g ain f o r a f e w i n d iv id ua ls , b ase d o n t h e p op ula r r e co g n it io n o f t h eir e co n om ic i n d ep en d en ce ,

o ut sta n d in g p ro fe ssio n al a ch ie ve m en t, m ora lly i m pecc a b le p ers o n al l if e , a n d s u p erio r j u d gm en t a n d

ta ste , t o r is e t o t h e r a n k o f n atur al, v o lun ta ril y a ck n ow le d ged a u th orit ie s a n d l e n d l e g it im acy t o t h e i d ea

o f a n atur al o rd er o f c o m petin g j ud ges a n d o ve rla p pin g j u ris d ic tio n s — an " a n arc h ic " p riv a te l a w s o cie ty

— as t h e a n sw er t o m on arc h y a n d d em ocra cy.

T h is a rtic le i s e xce rp te d f r o m t h e Jo u rn al o f L ib erta ria n S tu di es , V o l. 1 1 N um . 2 .

(h ttp :/ /m is e s.o rg /jo ur nals /jls /1 1_2 /1 1_2 _3 .p df)

5 1

O n t h e t h eo ry o f t h e s ta te s e e M .N . R o th b ard , F o r A N ew L ib erty ( h ttp :/ /s to re .m is e s.o rg /P ap erb ack --P 238.a sp x) ( N ew Y o rk :

M acm il la n , 1 978); i d em , T h e E th ic s o f L ib erty ( A tla n tic H ig hla n d s: H um an it ie s P re ss, 1 982); i d em , P o w er a n d M ark e t(K an sa s

C it y : S h eed , A nd re w s & M cM eel, 1 977); H .H . H op pe, E ig en tu m , A narc h ie u n d Sta at ( O pla d en : W estde uts c h er V erla g , 1 987);

id em , A T h eo ry o f S o cia lis m a n d C ap it a lis m (B o sto n : K lu w er, 1 989); i de m, T h e E co n om ic s a n d Eth ic s o f P riv a te

P ro p erty (B o sto n : K lu w er, 1 993); a ls o A .J . N ock , O ur E n em y, t h e S ta te (D ele va n : H allb erg P u b lis h in g C o., 1 983); F . O ppen heim er,

T h e S ta te ( N ew Y o rk : V an g uard P re ss, 1 914); i d em , S yste m de r S o zio lo g ie . V o l.2 : D er S ta at ( S tu ttg art: G . F is c h er, 1 964).

S e e o n t h e f o llo w in g a ls o H .H . H op pe, " T im e P re fe re n ce , G ove rn m en t, a n d th e P ro ce ss o f D e-C iv il iz a tio n — F ro m M on arc h y

to D em ocra cy," J o u rn al d es E co n om is te s e t d es E tu des H um ain es , V o l. V , N o. 4 , 1 994.

Se e a ls o B . d e J o u ve n el, O n P o w er ( N ew Y o rk : V ik in g, 1 949), e sp . p p. 9 –1 0.

Se e M .N . R o th b ard , P o w er a n d M ark e t ( h ttp :/ /s to re .m is e s.o rg /P o w er-a n d -M ark e t-P 322.) , p p. 1 88–1 89; a ls o G . H ard in & J .

B ad en , e d s., M an ag in g t h e C om mon s ( S an F ra n cis c o : W .H . F re em an , 1 977); a n d M . O ls o n , " D ic ta to rs h ip , D em ocra cy, a n d

D eve lo p m en t," ( h ttp :/ /w ww.j s to r.o rg /d is c o ve r/ 1 0.2 307/2 938736?

sid = 21105565937613& uid = 62& uid = 3739256& uid = 7360456& uid= 2& uid= 4753888& uid= 3& uid= 3739520& uid= 67D ic ta to rs h ip ,)

A m eric a n P o lit ic a l S cie n ce R evie w 8 7, 3 , 1 993.

In a d dit io n t o t h e w ork s q uote d i n f n .1 a b ove , s e e L . S p oon er, N o T re a so n : T h e C on stit u tio n o f N o A uth orit y

(h ttp :/ /s to re .m is e s.o rg /P ap erb ack -P 473.a sp x) ( L a rk sp ur: P in e T re e P re ss, 1 966), p . 1 7.

1.

2.

3.

4.

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On t h e p hen om en on a n d t h eo ry o f t im e p re fe re n ce s e e i n p artic u la r L . v o n M is e s, H um an A ctio n . A T re a tis e o n E co n om ic s

(h ttp :/ /s to re .m is e s.o rg /H ard co ve r-P 119.a sp x) ( C hic a g o: H . R eg n ery , 1 966), c h s. X VIII, X IX ; a ls o W . S t. J e vo n s, T h eo ry o f P o lit ic a l

Eco n om y ( N ew Y o rk : A . K elle y, 1 965); E .v . B ö h m -B aw erk , C ap it a l a n d I n te re st ( h ttp :/ /s to re .m is e s.o rg /C ap it a l- a n d -In te re st-

P 446.a sp x) , 3 v o ls . ( S o u th H olla n d : L ib erta ria n P re ss, 1 959); F . F e tte r, C ap it a l, I n te re st, a n d Ren t ( K an sa s C it y : S h eed , A ndr ew s &

M cM eel, 1 977); M .N . R o th b ard , M an , E co n om y, a n d S ta te ( h ttp :/ /s to re .m is e s.o rg /M an -E co n om y-a n d -S ta te -w it h -P o w er-a n d-

M ark e t-T h e-S ch ola rs -E d it io n -P 177.a sp x) ( L o s A ng ele s: N ash , 1 970).

S e e a ls o H .H . H op pe, T im e P re fe re n ce , G ove rn m en t, a n d t h e P ro ce ss o f D eciv il iz a tio n - F ro m M on arc h y t o D em ocra cy

(h ttp :/ /w ww.h an sh op pe.c o m /w p-c o n te n t/ u p lo ad s/p ub lic a tio n s/tim e_p re fe re n ce .p df )

Se e o n t h is G . F e rre ro , P eace a n d W ar ( F re ep ort: B o o ks f o r L ib ra rie s P re ss,1 969), e sp . c h . 3 ; i de m, M ach t ( B ern : A . F ra n ck e ,

1 944); E . v . K u eh nelt -L e d dih n, L e ft is m R evis it e d ( W ash in g to n D .C .: H . R eg n ery , 1 990); R . B en di x, K in gs o r P eo p le ( B erk e le y:

U niv e rs it y o f C alif o rn ia P re ss, 1 978).

F o r a d eta il e d d ocu m en ta tio n s e e P . F lo ra , S ta te , E co n om y, a n d S o cie ty i n W este rn E u ro p e 1 815– 1975 , V o l. I ( F ra n kfu rt/ M .:

C am pus, 1 983), c h . 3 ; a ls o R .R . P alm er & J . C olt o n , A H is to ry o f t h e M odern W orld ( N ew Y o rk : A . K n op f, 1 992), e sp . c h s. X IV , X VIII.

O n t h e a ris to cra tic ( u n d em ocra tic ) c h ara cte r o f t h e e arly U nit e d Sta te s, s e e L o rd A cto n , " P o lit ic a l C au se s o f t h e A m eric a n

R evo lu tio n" i n : i d em , T h e L ib era l I n te rp re ta tio n o f H is to ry ( C hic a g o: U niv e rs it y o f C hic a g o P re ss, 1 967); a ls o , C h. W olt e rm an n,

"F e d era lis m , D em ocra cy a n d t h e P eo p le ," T e lo s, V o l. 2 6, 1 , 1 993.

O n t h e U S w ar i n vo lv e m en t, s e e J .F .C . F u lle r, T h e C on du ct o f W ar ( N ew Y o rk : D a C ap o, 1 992), c h . I X ; o n t h e r o le o f W oodr ow

W il s o n , a n d h is p olic y o f w an tin g t o 'm ake t h e w orld sa fe f o r de mocra cy ', s e e M .N . R o th b ard , " W orld W ar I a s F u lf il lm en t;

P o w er a n d t h e I n te lle ctu als ," J o u rn al o f L ib erta ria n S tu die s , 9 , n o. 1 , 1 989; P . G ottfr ie d , " W il s o n ia n is m : T h e L e g acy t h at W on't

D ie ," J o u rn al o f L ib erta ria n S tu die s , 9 , n o. 2 , 1 990; E .v . K u eh nelt -L e d dih n, L e ft is m R ev is it e d , c h . 1 5.

In te re stin g ly , t h e S w is s R ep ub lic , w hic h h ad b een t h e f ir s t c o u ntr y t o e sta b lis h u n iv e rs a l m ale s u ffr a g e ( in 1 848), w as t h e l a st

to e xp an d t h e s u ffr a g e a ls o t o w om en ( in 1 971). S im il a rly , t h e F re n ch R ep ub lic , w here u n iv e rs a l m ale s u ffr a g e h ad exis te d

sin ce 1 848, e xte n d ed t h e f r a n ch is e t o w om en o n ly i n 1 945.

Se e H .J . S ch oep s, P re u sse n . G esc h ic h te e in es S ta ate s ( F ra n kfu rt/ M .: U lls te in , 1 981), p . 4 05 o n d ata f o r E n g la n d, P ru ssia , a n d

A ustria .

C .M . C ip olla , B efo re t h e I n du str ia l R evo lu tio n . E u ro p ea n S o cie ty a n d E co n om y, 1 000– 1700 ( N ew Y o rk : W .W . N orto n , 1 980), p . 4 8.

Se e P . F lo ra , S ta te , E co n om y a n d S o cie ty i n W este rn E u ro p e, V o l. 1 , p p. 2 58–2 59.

Ib id , c h . 8 .

Ib id , c h . 5 . I n f a ct, t h e s h are o f g ove rn m en t e m plo ym en t i n p re se n t t im es m ust b e c o n side re d sy ste m atic a lly u n der e stim ate d ,

fo r a p art f r o m e xclu d in g a ll m il it a ry p ers o n nel i t a ls o e xclu de s t h e p ers o n nel i n h osp it a ls , w elf a re i n stit u tio n s, s o cia l

in su ra n ce a g en cie s, a n d n atio n aliz e d i n d ustrie s.

S e e a ls o M .N . R o th b ard , W hat H as G ove rn m en t D on e t o O ur M on ey? ( A ub urn , A l.: L u d w ig v o n M is e s I n stit u te , 1 990); H .H .

Hop pe, " H ow i s F ia t M on ey P o ssib le ? o r, T h e D evo lu tio n o f M on ey a n d Cre di t," R ev ie w o f A ustr ia n E co n om ic s , V o l. 7 , n o. 2 ,

1994.

Se e B .R . M it c h ell, A bstra ct o f B rit is h H is to ric a l S ta tis tic s ( C am brid ge: C am brid ge U niv e rs it y P re ss, 1 962), p p.4 68ff.

Id em , E u ro p ea n H is to ric a l S ta tis tic s 1 750– 1970 ( N ew Y o rk : C olu m bia U niv e rs it y P re ss, 1 078), p p. 3 88 ff.

1 930 = 1 00; s e e R . P au l a n d L . L e h rm an n, T h e C ase f o r G old . A M in orit y R ep ort t o t h e U .S . G old C ommi ssio n ( W ash in g to n D .C .:

C ato I n stit u te , 1 982), p . 1 65f.

1 983 = 1 00; s e e Eco n om ic R ep ort o f t h e P re sid en t ( W ash in g to n D .C .: G ove rn m en t P rin tin g O ffic e , 1 99 2).

S e e M it c h ell, A bstra ct o f B rit is h H is to ric a l S ta tis tic s , p . 4 44f.

S e e M . F rie d m an & A . S ch w artz , A M on eta ry H is to ry o f t h e U nit e d S ta te s,1 867– 1960 ( P rin ce to n : P rin ce to n U niv e rs it y P re ss,

1 963), p p.7 04–7 22; a n d E co n om ic R ep ort o f t h e P re side nt, 1 992.

Se e S . H om er & R . S ylla , A H is to ry o f I n te re st R a te s ( N ew B ru n sw ic k : R u tg ers U niv e rs it y P re ss, 1 991), p p. 1 88, 4 37.

Se e J . H ug hes, A m eric a n E co n om ic H is to ry ( G le n vie w : S co tt, F o re sm an ,1 990), p p. 4 32, 4 98, 5 89 .

B . d e J o u ve n el, S o ve re ig n ty , p p. 1 72–1 73; p .1 89; s e e a ls o F . K ern , K in gsh ip a n d L a w i n t h e M id dle A ges ( L o n d on , 1 939), e sp . p .

151; B . R eh fe ld , D ie W urz e ln d es R ech ts ( B erlin , 1 951), e sp . p . 6 7.

Se e A .V . D ic e y, L e ctu re s o n t h e R ela tio n b etw een L a w a n d P u blic O pin io n i n E n gla n d d u rin g t h e N in ete en th C en tu ry ( L o n d on :

M acm il la n , 1 903); a ls o F .A . H aye k, L a w , L e g is la tio n , a n d L ib erty , V o l. 1 ( C hic a g o: U niv e rs it y o f C hic a g o P re ss, 1 973), c h s. 4 a n d 6.

Se e R . N is b et, C om mun it y a n d P o w er ( N ew Y o rk : O xfo rd U niv e rs it y P re ss,1 962), p p. 1 10–1 11.

6.

7.

8.

9.

10.

11.

12.

13.

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16.

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21.

22.

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24.

25.

26.

27.

28.

29. 5/3/2018 Political Economy of Monarchy and Democracy | Mises Institute

https://mises.org/library/political-economy-monarchy-and-democracy 21/25

B. d e J o u ve n el, S o ve re ig n ty , p . 1 89; s e e a ls o R . N is b et, C om mun it y a n d P o w er , c h . 5 .

Se e D . B o u d re au x, " T h e W orld 's B ig gest G ove rn m en t," F re e M ark e t , N ove m ber 1 994.

Se e a ls o T .A . S m it h , T im e a n d P u blic P o lic y ( K n oxv il le : U niv e rs it y o f T e n nesse e P re ss, 1 988).

S e e H om er & S ylla , A H is to ry o f I n te re st R a te s , p p. 5 57–5 58.

Se e H om er/ S ylla , A H is to ry o f I n te re st R a te s , p p. 5 54–5 55.

Se e C ip olla , B efo re t h e I n du str ia l R evo lu tio n , p . 3 9.

Se e C ip olla , B efo re t h e I n du str ia l R evo lu tio n , p p. 5 4–5 5; F lo ra , S ta te , E co n om y, a n d S o cie ty i n W este rn E u ro p e , c h . 8 ; a n d p . 4 54.

Se e M it c h ell, E u ro p ea n H is to ric a l S ta tis tic s 1 750– 1970 , p p. 1 6ff.

S e e A .C . C arls o n , F a m ily Q uestio n s. R efle ctio n s o n t h e A m eric a n S o cia l C ris e s ( N ew B ru n sw ic k : T ra n sa ctio n P u b lis h ers , 1 992);

id em , T h e S w ed is h E xp erim en t i n F a m ily P o lit ic s ( N ew B ru n sw ic k : T ra n sa ctio n P u b lis h ers , 1 993);i d em , " W hat H as G ove rn m en t

D on e t o O ur F a m il ie s? " E ssa ys i n P o lit ic a l E co n om y , n o. 1 3 ( A ub urn , A l.: L u d w ig v o n M is e s I n stit u te , 1 991); C h. M urra y, L o sin g

G ro u n d ( N ew Y o rk : B asic B o oks, 1 984); f o r a n e arly d ia g n osis s e e J .A . S ch um pete r, C ap it a lis m , S o cia lis m , a n d D em ocra cy ( N ew

Yo rk : H arp er, 1 942), c h .1 4.

Se e J .Q . W il s o n & R .J . H errn ste in , C rim e a n d H um an N atu re ( N ew Y o rk : S im on & S ch uste r, 1 985), p p. 4 08–4 09; o n t h e

m ag n it u d e o f t h e i n cre ase i n c rim in al a ctiv it y b ro u g ht a b ou t b y de mocra tic r e p ub lic a n is m a n d welf a ris m i n t h e c o u rs e o f t h e

la st h un d re d y e ars s e e a ls o R .D . M cG ra th , G un fig h te rs , H ig h w aym en , a n d V ig ila n te s ( B erk e le y: U niv e rs it y o f C alif o rn ia P re ss,

1 984), e sp . c h .1 3; i d em , " T re at t h em t o a G ood D ose o f L e ad ," C hro n ic le s , J a n uary 1 994.

Se e W il s o n & H errn ste in , C rim e a n d H um an N atu re , p . 4 11.

O n t h e r e la tio n sh ip b etw een h ig h t im e p re fe re n ce a n d c rime s e e a ls o E .C . B an fie ld , T h e U nhea ve n ly C it y R ev is it e d ( B o sto n : L it tle ,

B ro w n & C om pan y,1 974), e sp . c h s. 3 a n d 8 ; i d em , " P re se n t-O rie n te dn ess a n d Crim e," i n : R .E . B arn ett/ J . H ag el, e ds ., A sse ssin g

th e C rim in al ( C am brid ge: B allin g er, 1 977); W il s o n & H errn ste in , C rim e a n d H um an N atu re , p p. 4 14–4 24.

O n t h e c o n tra st b etw een m on arc h ic a l a n d d em ocra tic w arfa re s e e J .F .C . F u lle r, T h e C on du ct o f W ar , e sp . c h s. 1 a n d 2 ; i d em ,

War a n d W este rn C iv iliz a tio n ( F re ep ort: B o oks f o r L ib ra rie s, 1 969); M . H ow ard , W ar i n E u ro p ea n H is to ry ( O xfo rd : O xfo rd

U niv e rs it y P re ss, 1 976), e sp . c h . 6 ; i d em , W ar a n d t h e L ib era l C on sc ie n ce ( N ew B ru n sw ic k : R u tg ers U niv e rs it y P re ss, 1 978); B . de

J o u ve n el, O n P o w er , c h . 8 ; W .A . O rto n , T h e L ib era l T ra d it io n ( P o rt W ash in g to n : K en nik at P re ss, 1 969), p p. 2 51ff ; G . F e rre ro , P ea ce

a n d W ar , c h . 1 .

Fo r a r e ve alin g a n aly sis o f U S d ata s e e R . B ate m arc o , " G N P, P PR , a n d th e S ta n da rd of L iv in g," R ev ie w o f A ustr ia n E co n om ic s , v o l.

1 , 1 987.

O n t h e r e la tio n b etw een g ove rn m en t a n d p ub lic o p in io n s e e t h e c la ss ic e xp osit io n s b y E . de l a B o etie , T h e P o lit ic s o f

O bed ie n ce : T h e D is c o u rs e o f V o lu n ta ry S erv it u de ( N ew Y o rk : F re e L if e E d it io n s, 1 975); D . H um e, E ssa ys. M ora l, P o lit ic a l, a n d

Lit e ra ry (O xfo rd : O xfo rd U niv e rs it y P re ss, 1 963), e sp . " E ssa y I V : O f t h e F ir s t P rin cip le s o f G ove rn m en t."

A s l a te a s 1 871, f o r i n sta n ce , w it h u n iv e rs a l m ale s u ffr a g e, t h e N atio n al A ss e m bly o f t h e F re n ch R ep ub lic c o n ta in ed on ly

a b ou t 2 00 r e p ub lic a n s o u t o f m ore t h an 6 00 d ep utie s. A nd th e r e sto ra tio n o f a m on arc h y w as o n ly p re ve n te d beca u se t h e

su p porte rs o f t h e B o u rb on s a n d t h e O rle an s c h eck m ate d each o th er.

S e e a ls o W . R ö p ke , J e n se it s v o n A ngeb ot u n d N ach fr a g e ( B ern : P .H au p t,1 979), p p. 1 91–1 99; B . d e J o u ve n el, O n P o w er, c h . 1 7.

Se e a ls o M . H arris , C an nib als a n d K in gs. T h e O rig in s o f C ult u re ( N ew Y o rk : V in ta g e B o oks, 1 977), p p.1 04ff o n t h e p riv a te

p ro vis io n o f p ub lic g ood s b y " b ig m en ."

A s a c o m para tiv e e va lu atio n o f t h eo rie s o f t h e e n d og en ou s v e rs u s t h e e xo g en ou s o rig in o f g ove rn m en t a n d a h is to ric a l

crit iq ue o f t h e l a tte r a s i n co rre ct o r i n co m ple te s e e W . M üh lm an n, Ra sse n , E th nie n , K u lt u re n ( N eu w ie d : L u ch te rh an d, 1 964), p p.

248–3 19, e sp . p p. 2 91–2 96.F o r p ro p on en ts o f t h eo rie s o f t h e e xo g en ou s o rig in o f g ove rn m en t s e e F . R atz e l, P o lit is c h e

G eo gra p h ie ( M ün ch en , 1 923); F . O ppen heim er, S yste m d er S o zio lo gie . V o l. 2 : D er S ta at; A . R ü sto w , F re ed om a n d D om in atio n

(P rin ce to n : P rin ce to n U niv e rs it y P re ss, 1 980).

S e e, f o r i n sta n ce , G . d e M olin ari, T h e P ro du ctio n o f S ecu rit y ( N ew Y o rk : C en te r f o r L ib erta ria n S tu d ie s, 1 977), p ub lis h ed

o rig in ally i n 1 849, i n F re n ch .

Se e o n t h is a ls o H . P ir e n ne, M ed ie va l C it ie s ( P rin ce to n : P rin ce to n U niv e rs it y P re ss, 1 974), e sp . p p. 1 79–1 80, a n d pp. 2 27f; B . de

J o u ve n el, O n P o w er , c h .1 7.

O n t h e p olit ic a l e co n om y o f p olit ic a l c e n tra liz a tio n , a n d th e r a tio n ale o f de ce n tra liz a tio n a n d se ce ssio n , s e e H .H . H op pe,

"A gain st C en tra liz a tio n ," S a lis b u ry R ev ie w J u n e 1 993; i d em , " M ig ra zio n e, c e n tra lis m o e s e ce ssio n e n ell'E u ro p a

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co n te m pora n ea," b ib lio te ca d ella l ib erta , n o. 1 18, 1 992; J . B ae ch le r, T h e O rig in s o f C ap it a lis m ( N ew Y o rk : S t. M artin 's P re ss,

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SEA RC H G O

W HAT I S T H E M IS ES D AIL Y

T h e M ise s D aily a rtic le s a re s h ort a n d r e le va n t a n d w rit te n f r o m t h e p ers p ectiv e o f a n u n fe tte re d f r e e m ark e t a n d

A ustria n e co n om ic s. W rit te n f o r a b ro ad a u d ie n ce o f l a ym en a n d s tu d en ts , t h e M ise s D aily f e atu re s a w id e v a rie ty o f

to p ic s i n clu d in g e ve ry th in g f r o m t h e h is to ry o f t h e s ta te , t o i n te rn atio n al t ra d e, t o d ru g p ro h ib it io n , a n d b usin ess

c ycle s.

(h ttp :/ /fe ed s.f e ed b urn er.c o m /M is e sD ail y A rtic le s)

S EA RC H M IS ES D AIL Y

T O PIC S

Big G ove rn m en t

(/ to p ic s/b ig -g ove rn m en t)

B io g ra p hie s

(/ to p ic s/b io g ra p hie s)

B o om s a n d B u sts

(/ to p ic s/b oom s-a n d -b usts )

B u re au cra cy a n d R eg ula tio n

(/ to p ic s/b ure au cra cy -a n d -

re g ula tio n )

C orp ora te W elf a re

(/ to p ic s/c o rp ora te -w elf a re )

C ro nyis m a n d C orp ora tis m

(/ to p ic s/c ro nyis m -a n d -

co rp ora tis m )

Dece n tra liz a tio n a n d

Se ce ssio n

(/ to p ic s/d ece n tra liz a tio n -

an d -s e ce ssio n )

A US TR IA N S C H O OL

Austria n E co n om ic s

O ve rv ie w ( / a u stria n -

sc h ool/ a u stria n -e co n om ic s-

o ve rv ie w )

Bu sin ess C ycle s ( / a u stria n -

sc h ool/ b usin ess-c ycle s)

C alc u la tio n a n d K n ow le d ge

(/ a u stria n -

sc h ool/ c a lc u la tio n -a n d -

kn ow le d ge)

C ap it a l a n d I n te re st T h eo ry

(/ a u stria n -s c h ool/ c a p it a l-

a n d -in te re st-t h eo ry )

E n tre p re n eu rs h ip ( / a u stria n -

sc h ool/ e n tre p re n eu rs h ip )

Fis c a l T h eo ry ( / a u stria n -

sc h ool/ fis c a l- t h eo ry )

G old S ta n d ard ( / a u stria n -

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BRO W SE L IB RA RY

W ho i s L u d w ig v o n M is e s? ( / p ro fil e /lu d w ig -v o n -m is e s)

W hat i s t h e A ustria n S ch ool o f E co n om ic s? ( / w hat-a u stria n -

eco n om ic s)

Q uarte rly J o u rn al o f A ustria n E co n om ic s ( / lib ra ry /q uarte rly -

jo u rn al- a u stria n -e co n om ic s)

T h e A ustria n ( / lib ra ry /a u stria n )

M is e s W ir e ( / w ir e )

M is e s W eeke n d s ( / lib ra ry /m is e s-w eeke n d s)

M is e s V ie w ( / lib ra ry /m is e s-v ie w )

Jo u rn als & P u b lic a tio n s ( / lib ra ry /jo u rn als )

H om esc h ool R eso u rc e s ( / h om esc h ool- r e so u rc e s)

R eso u rc e s f o r t h e E co n om is t ( / re so u rc e s-e co n om is t)

R eso u rc e s f o r S tu d en ts ( / s tu d en t-r e so u rc e s)

A BO UT T H E M IS ES I N ST IT U TE

Fe llo w sh ip s & I n d ep en d en t R ese arc h ( / a b ou t-

m is e s/fe llo w sh ip s)

W hat i s t h e M is e s I n stit u te ? ( / a b ou t-m is e s/w hat-is -t h e-

m is e s-In stit u te )

B eco m e a M em ber ( / g iv in g /m em bers h ip )

M is e s E ve n ts ( / e ve n ts )

P re ss R o om ( / p re ss-r o om )

Mis e s P u b lic a tio n s ( / lib ra ry /in stit u te -p ub lic a tio n s)

O nlin e L e arn in g ( h ttp s:/ /a ca d em y.m is e s.o rg )

M is e s B o oksto re ( h ttp s:/ /s to re .m is e s.o rg )

Fa cu lt y & S ta ff ( / fa cu lt y -s ta ff )

F in an ce s a n d B o ard ( / a b ou t-m is e s/a d d-b oard -a n d -fin an ce )

Su b sc rib e t o E m ail L is ts ( / a b ou t-m is e s/s u b sc rib e)

Su p port M is e s ( / g iv in g )

C on ta ct U s ( / c o n ta ct)

C O NTA CT U S

518 W est M ag n olia A ve n ue

A ub urn, A la b am a 3 6832-4 501 5/3/2018 Political Economy of Monarchy and Democracy | Mises Institute

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PH O NE 3 34.3 21.2 100 ( t e l:1 -3 34-3 21-2 100) | F A X 3 34.3 21.2 119

Em ail U s ( / c o n ta ct)

G ET N EW S A N D A RTIC LE S I N Y O UR I N BO X ( / a b out -m is e s/s ub sc rib e)

S TA Y C O NNEC TED

✉

W eb sit e p ow ere d b y M is e s I n stit u te d on ors

M is e s I n stit u te i s a t a x-e xe m pt 5 01(c )(3 ) n on pr ofit o rg an iz a tio n . C on tr ibu tio n s a re t a x-d edu ctibl e t o t h e f u ll e xte n t t h e

la w a llo w s. T a x I D # 5 2-1 263436Tu ne cede malis,

sed contra audentior ito (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /fa ce b ook) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /tw it te r) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /in sta g ra m ) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /it u n es) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /y o u tu b e) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /s n ap ch at) (h ttp s:/ /m is e s.o rg /a b out /s o cia l/ m ed ia /rs s -

fe ed )