1 00:00:00,800 --> 00:00:02,800 Welcome to Keith's night. Don't try it on anyone. 2 00:00:03,000 --> 00:00:06,700 This is Marxist and Austrian class analysis by Hans Hermann 3 00:00:06,700 --> 00:00:09,900 Hopper, from the Department of Economics, at the University of 4 00:00:09,900 --> 00:00:13,300 Nevada, Las Vegas published in the Journal of libertarian 5 00:00:13,300 --> 00:00:17,400 studies in 1990. I want to do the following in 6 00:00:17,400 --> 00:00:20,200 this paper. First to present the Theses that 7 00:00:20,200 --> 00:00:24,700 constitute the hard core of the Marxist theory of History. 8 00:00:24,900 --> 00:00:27,500 I claim that all of them are essentially correct. 9 00:00:27,600 --> 00:00:29,800 Then I will show how these truth is. 10 00:00:30,000 --> 00:00:33,600 These are derived in Marxism from a false starting point. 11 00:00:33,700 --> 00:00:35,700 Finally. I will demonstrate how Austrian 12 00:00:35,700 --> 00:00:39,400 ISM in the mises. Rothbard tradition can give a 13 00:00:39,500 --> 00:00:41,800 correct. But categorically different 14 00:00:41,800 --> 00:00:45,800 explanation of their validity. Let me begin with the hard core 15 00:00:46,000 --> 00:00:51,500 of the Marxist, belief system. Number one, the history of 16 00:00:51,500 --> 00:00:55,300 mankind is the history of class struggles. 17 00:00:55,400 --> 00:00:59,000 It is the history of struggles between a relatively small 18 00:00:59,000 --> 00:01:02,900 ruling class and a larger class of the exploited. 19 00:01:02,900 --> 00:01:07,200 The primary form of exploitation is economic the ruling class 20 00:01:07,200 --> 00:01:10,100 expropriate. It's part of the productive 21 00:01:10,100 --> 00:01:15,700 output of the exploited or as Marxist say it appropriates a 22 00:01:15,900 --> 00:01:19,300 social surplus product and uses it for its own. 23 00:01:19,500 --> 00:01:23,500 Consumptive purposes. Number two, the ruling classes 24 00:01:23,500 --> 00:01:27,800 unified by its common interest in upholding, its exploitative 25 00:01:27,800 --> 00:01:32,000 position and maximizing. It's exploitative. 26 00:01:32,000 --> 00:01:34,900 Lie, appropriated Surplus product. 27 00:01:34,900 --> 00:01:39,300 It never deliberately gives up power or exploitation income. 28 00:01:39,500 --> 00:01:43,700 Instead, any loss in power or income must be wrestled away 29 00:01:43,700 --> 00:01:47,400 from it through, struggles, whose outcome ultimately depends 30 00:01:47,400 --> 00:01:51,900 on the class consciousness of the voided, IE on whether or 31 00:01:51,900 --> 00:01:56,200 not, and to what extent the exploited are aware of their own 32 00:01:56,200 --> 00:02:00,900 status and are consciously United with other class members 33 00:02:01,100 --> 00:02:04,300 in common opposition to exploitation. 34 00:02:05,500 --> 00:02:10,199 Number 3, class rule manifests itself, primarily in specific 35 00:02:10,199 --> 00:02:14,100 Arrangements, regarding the assignment of property rights or 36 00:02:14,100 --> 00:02:17,800 in Marx's terminology in specific relations of 37 00:02:17,800 --> 00:02:20,100 production. In order to protect these 38 00:02:20,100 --> 00:02:23,300 arrangements or production relations. 39 00:02:23,500 --> 00:02:28,500 The ruling class forms and is in command of the state, as the 40 00:02:28,500 --> 00:02:33,200 apparatus of compulsion and coercion the state enforces and 41 00:02:33,200 --> 00:02:37,100 helps. Reduce a given class structure 42 00:02:37,300 --> 00:02:41,600 through the administration of a system of class Justice and it 43 00:02:41,600 --> 00:02:45,500 assists in the creation and the support of an ideological. 44 00:02:45,500 --> 00:02:50,600 Superstructure, designed to lend legitimacy to the existence of 45 00:02:50,700 --> 00:02:56,000 class rule, number four internally, the process of 46 00:02:56,000 --> 00:02:58,000 competition within the ruling class. 47 00:02:58,000 --> 00:03:02,900 Generates a tendency toward increasing, concentration and 48 00:03:03,000 --> 00:03:07,000 centralization. Multipolar system of 49 00:03:07,000 --> 00:03:11,100 exploitation is gradually supplanted by an oligarchic or 50 00:03:11,100 --> 00:03:15,800 monopolistic one fewer and fewer exploitation centers remain in 51 00:03:15,800 --> 00:03:18,400 operation. And those that do are 52 00:03:18,400 --> 00:03:22,600 increasingly integrated into a hierarchical order and 53 00:03:22,600 --> 00:03:26,200 externally. EG within the International 54 00:03:26,500 --> 00:03:29,500 System, the internal centralization process. 55 00:03:29,800 --> 00:03:35,000 Will the more intensively the more advanced it is lead to List 56 00:03:35,000 --> 00:03:38,800 Interstate Wars and the territorial expansion of 57 00:03:38,800 --> 00:03:43,900 exploitative rule. Number five, finally, with the 58 00:03:43,900 --> 00:03:48,000 centralization and expansion of exploitative rule gradually 59 00:03:48,000 --> 00:03:50,100 approaching. Its ultimate limit of world 60 00:03:50,100 --> 00:03:55,000 domination class rule will increasingly become incompatible 61 00:03:55,300 --> 00:03:59,500 with the further development and Improvement of productive 62 00:03:59,500 --> 00:04:02,500 forces. Economic stagnation and crises 63 00:04:02,800 --> 00:04:06,200 become more and more characteristic and create the 64 00:04:06,500 --> 00:04:10,400 objective conditions for the emergence of a revolutionary 65 00:04:10,600 --> 00:04:15,700 class. - of the exploited, the situation becomes ripe for the 66 00:04:15,700 --> 00:04:18,700 establishment of a classless society. 67 00:04:18,700 --> 00:04:22,700 The withering away of the state, the replacement of government of 68 00:04:22,700 --> 00:04:28,100 men over Men by the administration of things and as 69 00:04:28,100 --> 00:04:31,600 a result unheard of economic prosperity. 70 00:04:33,300 --> 00:04:37,400 All of these Theses are perfectly justifiable as I will 71 00:04:37,400 --> 00:04:40,600 show, unfortunately. However, it is Marxism, which 72 00:04:40,600 --> 00:04:44,300 subscribes to all of them that has done more than any other 73 00:04:44,300 --> 00:04:49,200 ideological system to discredit their validity by deriving them 74 00:04:49,200 --> 00:04:53,400 from a patently absurd theory of exploitation. 75 00:04:54,200 --> 00:04:57,400 What is the Marxist theory of exploitation, according to Marx, 76 00:04:57,800 --> 00:05:02,000 such pre-capitalist social systems, as slavery and 77 00:05:02,000 --> 00:05:03,000 feudalism. Our care. 78 00:05:03,100 --> 00:05:06,500 Terrorized by exploitation. There is no quarrel with this. 79 00:05:06,500 --> 00:05:10,000 After all the slave is not a free laborer and he cannot be 80 00:05:10,000 --> 00:05:13,600 said to gain from his being enslaved. 81 00:05:13,600 --> 00:05:17,300 Rather his enslavement. Reduces his utility at the 82 00:05:17,300 --> 00:05:20,500 expense of an increase in wealth, appropriated, by the 83 00:05:20,500 --> 00:05:23,900 slave master, the interest of the slave, and that of the slave 84 00:05:23,900 --> 00:05:28,500 owner are indeed antagonistic. The same is true of the 85 00:05:28,500 --> 00:05:32,500 interests of the feudal Lord, who extract sale and rent from a 86 00:05:32,500 --> 00:05:35,600 peasant. Who works on homesteaded land, 87 00:05:35,700 --> 00:05:42,500 the Lord's gain gains are the peasants as loss, and it is also 88 00:05:42,500 --> 00:05:45,300 Undisputed that slavery as well as feudalism. 89 00:05:45,300 --> 00:05:48,100 Hamper, the development of productive forces. 90 00:05:48,100 --> 00:05:52,700 Neither slave nor surf will be as productive as he would be 91 00:05:53,200 --> 00:06:01,000 without slavery or serfdom. But the genuinely new Marxist 92 00:06:01,000 --> 00:06:04,300 idea is, that essentially nothing is changed. 93 00:06:04,400 --> 00:06:07,600 As regards exploitation under capitalism, IE. 94 00:06:07,900 --> 00:06:11,700 If the slave becomes a free laborer, or if the peasant 95 00:06:11,700 --> 00:06:16,000 decides to Farmland homesteaded by someone else, and pays rent 96 00:06:16,200 --> 00:06:19,600 in exchange for doing. So, to be sure marks in his 97 00:06:19,600 --> 00:06:24,100 famous 24th, chapter of the first volume of his Capital 98 00:06:24,200 --> 00:06:29,000 titled, the so-called original accumulation gives a Account of 99 00:06:29,000 --> 00:06:33,600 the emergence of capitalism that makes the point that much. 100 00:06:33,700 --> 00:06:37,900 Or even most of the initial capitalist Prosperity is the 101 00:06:37,900 --> 00:06:40,600 result of plunder and closure and Conquest. 102 00:06:40,600 --> 00:06:45,600 Similarly, in chapter 25 on the modern theory of colonialism, 103 00:06:45,800 --> 00:06:50,900 the role of force and violence and exporting capitalism to the, 104 00:06:51,000 --> 00:06:54,700 as we would now, say third world is heavily emphasized. 105 00:06:55,100 --> 00:06:58,100 Admittedly all. This is generally correct. 106 00:06:58,500 --> 00:07:03,400 And insofar as it is. There can be no quarrel with 107 00:07:03,400 --> 00:07:07,900 labeling such things capitalism exploitative yet. 108 00:07:07,900 --> 00:07:10,400 One should be aware of the fact here. 109 00:07:10,400 --> 00:07:13,700 Marx is performing a trick and engaging in historical 110 00:07:14,100 --> 00:07:17,800 investigations and arousing the readers indignation at the 111 00:07:17,800 --> 00:07:21,200 brutalities underlying the formation of many capitalist 112 00:07:21,200 --> 00:07:23,800 fortunes. He actually sidesteps the issue 113 00:07:23,800 --> 00:07:27,600 at hand evading. The fact that his thesis is 114 00:07:27,600 --> 00:07:30,000 really an entire. Early different one namely that 115 00:07:30,000 --> 00:07:34,800 even under clean capitalism. So to speak IE a system in which 116 00:07:34,800 --> 00:07:38,500 the original appropriation of capital was a result of nothing 117 00:07:38,500 --> 00:07:41,900 else, but homesteading work and savings the capitalists who 118 00:07:41,900 --> 00:07:45,400 hired labor to be employed with this. 119 00:07:45,400 --> 00:07:49,700 Capital would nonetheless be engage in exploitation indeed 120 00:07:49,800 --> 00:07:52,500 marks. Consider the proof of this 121 00:07:52,500 --> 00:07:56,600 thesis, his most important contribution to economic 122 00:07:56,700 --> 00:08:01,600 analysis. His proof of the exploitative 123 00:08:01,600 --> 00:08:06,200 character of a clean, capitalism consists in the observation that 124 00:08:06,200 --> 00:08:11,300 the factor prices in particular. The wages paid to laborers by 125 00:08:11,300 --> 00:08:15,200 the capitalists are lower than the output prices. 126 00:08:15,400 --> 00:08:19,100 The laborer, for instance, is paid a wage that represents 127 00:08:19,100 --> 00:08:23,200 consumption Goods that can be produced in three days, but he 128 00:08:23,200 --> 00:08:25,700 actually works. Five days for his wage and 129 00:08:25,700 --> 00:08:29,200 produces an output of consumption Goods that exceeds. 130 00:08:29,200 --> 00:08:35,600 What Receives as remuneration the output of 2 extra days. 131 00:08:35,799 --> 00:08:39,600 The Surplus value in marches terminology is appropriated by 132 00:08:39,600 --> 00:08:42,799 the capitalist hands. According to Marx, there is 133 00:08:42,900 --> 00:08:45,400 exploitation. What is wrong with this 134 00:08:45,400 --> 00:08:47,800 analysis? The answer becomes obvious. 135 00:08:48,000 --> 00:08:51,500 Once it is asked why the laborer would possibly agree to such an 136 00:08:51,508 --> 00:08:55,200 arrangement, he agrees because his wage payment represents 137 00:08:55,400 --> 00:08:59,200 present Goods while his own labor services. 138 00:08:59,600 --> 00:09:04,300 Represent only future goods and he values present Goods more, 139 00:09:04,600 --> 00:09:07,100 highly. After all, he could also decide 140 00:09:07,100 --> 00:09:10,100 not to sell his labor services to the capitalist and then reap 141 00:09:10,100 --> 00:09:13,400 the full value of his output himself. 142 00:09:13,700 --> 00:09:18,500 But this would, of course, imply that he would have to wait 143 00:09:18,500 --> 00:09:23,300 longer for any consumption Goods to become available to him in 144 00:09:23,300 --> 00:09:26,800 selling his labor Services. He demonstrates, that he prefers 145 00:09:26,800 --> 00:09:28,700 a smaller amount of consumption Goods. 146 00:09:28,700 --> 00:09:34,200 Now, A possibly larger one at some future date, on the other 147 00:09:34,200 --> 00:09:36,200 hand. Why would the capitalist want to 148 00:09:36,200 --> 00:09:40,800 strike a deal with the laborer? Why would he want to advance 149 00:09:40,800 --> 00:09:45,100 present Goods, money to the labor in exchange for services, 150 00:09:45,400 --> 00:09:46,900 that bear fruit? Only later. 151 00:09:47,400 --> 00:09:50,200 Obviously, he would not want to pay out for instance, a hundred 152 00:09:50,200 --> 00:09:53,500 dollars now. If he were to receive the same 153 00:09:53,500 --> 00:09:57,500 amount in one year's time, in that case, why not simply hold 154 00:09:57,500 --> 00:10:00,400 on to it for a year, then receive the extra benefit of 155 00:10:00,400 --> 00:10:03,200 having actual command over during the entire time? 156 00:10:03,800 --> 00:10:06,700 Instead. He must expect to receive a 157 00:10:06,700 --> 00:10:09,700 larger sum than $100 in the future. 158 00:10:09,900 --> 00:10:13,800 In order, to give up $100. Now in the form of wages, paid 159 00:10:13,800 --> 00:10:19,000 to the laborer, he must expect to be able to earn a profit or 160 00:10:19,000 --> 00:10:21,000 more correctly in interest return. 161 00:10:22,200 --> 00:10:25,200 And he is constrained by time preference. 162 00:10:25,200 --> 00:10:27,600 IE. The fact that an actor 163 00:10:27,600 --> 00:10:32,300 invariably prefers earlier over later Goods in. 164 00:10:32,300 --> 00:10:38,300 Yet another way for if one can obtain a larger sum in the 165 00:10:38,300 --> 00:10:41,600 future by sacrificing a smaller one in the present. 166 00:10:42,700 --> 00:10:47,000 Why then is the capitalist not engaged in more saving than he 167 00:10:47,000 --> 00:10:50,000 actually is. Why does he not hire more 168 00:10:50,000 --> 00:10:55,600 laborers than he does? If each one of them promises an 169 00:10:55,600 --> 00:11:00,400 additional interest return, the answer again should be obvious 170 00:11:00,500 --> 00:11:04,600 because the capitalist is a consumer to and cannot help 171 00:11:05,000 --> 00:11:08,600 being one the amount of his savings and investing is 172 00:11:08,600 --> 00:11:12,300 restricted by the necessity that he too like the laborer. 173 00:11:12,500 --> 00:11:17,000 requires a supply of present Goods, large enough to secure 174 00:11:17,000 --> 00:11:23,300 the satisfaction of all those wants the satisfaction of which 175 00:11:23,300 --> 00:11:27,200 during the waiting time is considered more urgent than 176 00:11:27,200 --> 00:11:32,100 advantages, which a still greater lengthening of period of 177 00:11:32,100 --> 00:11:39,300 production, would provide What is wrong with Marx theory of 178 00:11:39,300 --> 00:11:42,200 exploitation then? Is that he does not understand 179 00:11:42,200 --> 00:11:44,100 the phenomenon of time preference. 180 00:11:44,300 --> 00:11:49,000 As a universal category Of Human Action that the laborer does not 181 00:11:49,000 --> 00:11:52,300 receive his full worth, has nothing to do with exploitation, 182 00:11:52,300 --> 00:11:55,800 but merely reflects the fact that it is impossible for man to 183 00:11:55,800 --> 00:11:59,900 exchange future Goods against the present ones except at a 184 00:11:59,908 --> 00:12:05,600 discount, unlike the case of slave and slave master where the 185 00:12:05,600 --> 00:12:09,400 latter At the expense of the former, the relationship between 186 00:12:09,500 --> 00:12:12,100 the free laborer. And the capitalist is a 187 00:12:12,100 --> 00:12:16,900 mutually-beneficial one, the laborer, enters the agreement 188 00:12:17,000 --> 00:12:18,700 because given has time preference. 189 00:12:18,900 --> 00:12:23,100 He prefers a smaller amount of present Goods over a larger one, 190 00:12:23,300 --> 00:12:26,300 and the capitalist enters it because given his time 191 00:12:26,300 --> 00:12:29,100 preference. He has a reverse preference 192 00:12:29,100 --> 00:12:35,300 order and ranks a larger future amount of goods more highly than 193 00:12:35,300 --> 00:12:37,000 a smaller. Present one. 194 00:12:37,500 --> 00:12:41,200 Their interests are not antagonistic, but harmonious 195 00:12:41,600 --> 00:12:46,200 without the capitalist expectation of an interest 196 00:12:46,200 --> 00:12:48,700 return. The labourer would be worse off 197 00:12:48,900 --> 00:12:52,100 because he would have to wait longer than he wishes to wait 198 00:12:52,400 --> 00:12:54,900 and without the laborers preference for present Goods. 199 00:12:54,900 --> 00:12:58,200 The capitalist would be worse off because he would have to 200 00:12:58,200 --> 00:13:01,500 resort to less roundabout and less efficient production 201 00:13:01,600 --> 00:13:04,400 methods than those. He desires to adopt. 202 00:13:05,200 --> 00:13:08,200 Nor can the capitalist wage system be regarded as an 203 00:13:08,200 --> 00:13:10,800 impediment to the further development of the forces of 204 00:13:10,800 --> 00:13:15,100 production, as March claims, if the laborer were not permitted 205 00:13:15,100 --> 00:13:18,000 to sell his labor services and the capitalist to buy them 206 00:13:18,300 --> 00:13:22,200 output would not be higher but lower because production would 207 00:13:22,200 --> 00:13:26,500 have to take place with relatively reduced levels of 208 00:13:26,500 --> 00:13:32,000 capital accumulation. Under her system of socialized 209 00:13:32,000 --> 00:13:35,700 production, quite contrary to Marxist proclamations. 210 00:13:36,000 --> 00:13:39,800 The development of productive forces would not reach new 211 00:13:39,800 --> 00:13:43,700 heights, but would instead sink dramatically for obviously 212 00:13:43,800 --> 00:13:47,400 capital accumulation must be brought about by definite 213 00:13:47,400 --> 00:13:50,900 individuals at definite points in time and space through 214 00:13:50,900 --> 00:13:55,000 homesteading producing and or saving in each case. 215 00:13:55,300 --> 00:13:58,500 It is brought about with the expectation that it will lead to 216 00:13:58,500 --> 00:14:02,200 an increase. In the output of future Goods 217 00:14:02,300 --> 00:14:06,200 the value and actor attaches to his Capital, reflects the value. 218 00:14:06,200 --> 00:14:11,400 He attaches to all expected future incomes attributable, to 219 00:14:11,400 --> 00:14:16,500 its cooperation, and discounted by his rate of time preference. 220 00:14:17,000 --> 00:14:21,200 If as in the case of collectively owned factors of 221 00:14:21,200 --> 00:14:24,900 production and actor is no longer granted exclusive control 222 00:14:25,200 --> 00:14:29,500 over his accumulated capital and hence over the future income to 223 00:14:29,500 --> 00:14:35,000 be Derived from its employment, but partial control, instead is 224 00:14:35,000 --> 00:14:39,500 assigned to non homesteaders, non producers and non Savers, 225 00:14:39,800 --> 00:14:42,600 the value for him of the expected income. 226 00:14:42,800 --> 00:14:46,300 And hence, that of the capital goods is reduced. 227 00:14:46,600 --> 00:14:50,100 His effective rate of time. Preference will rise, there will 228 00:14:50,100 --> 00:14:53,800 be less homesteading of resources who scarcity is 229 00:14:53,800 --> 00:14:59,600 recognized and less saving for the maintenance of existing and 230 00:14:59,600 --> 00:15:05,500 the Duction of new capital goods, the period of production. 231 00:15:05,600 --> 00:15:10,000 The roundabout nests of the productive structure will be 232 00:15:10,000 --> 00:15:14,300 shortened and relative impoverishment will result. 233 00:15:16,400 --> 00:15:21,000 If Marx's theory of capitalist exploitation and his ideas on 234 00:15:21,000 --> 00:15:25,100 how to end exploitation and establish Universal, Prosperity 235 00:15:25,300 --> 00:15:27,200 are false to the point of being ridiculous. 236 00:15:27,800 --> 00:15:31,500 It is clear that any theory of history that can be derived 237 00:15:31,500 --> 00:15:36,600 from, it must be false to or if it should be corrected must have 238 00:15:36,600 --> 00:15:39,500 been derived and correctly instead of going through the 239 00:15:39,500 --> 00:15:42,700 lengthy task of explaining, all the flaws in the Marxist 240 00:15:42,700 --> 00:15:47,300 argument as it sets out from it. Theory of capitalist 241 00:15:47,300 --> 00:15:50,300 exploitation and ends with the theory of history that I 242 00:15:50,300 --> 00:15:52,700 described earlier. I will take a shortcut. 243 00:15:52,700 --> 00:15:56,900 I will now outline in the briefest possible way the 244 00:15:56,900 --> 00:15:59,700 correct. Austrian Miss essien rothbard 245 00:15:59,700 --> 00:16:04,800 Ian theory of exploitation. Give the explanatory sketch of 246 00:16:04,800 --> 00:16:09,300 how this Theory makes sense out of the class theory of history 247 00:16:09,800 --> 00:16:13,700 and highlight along the way some key differences between this 248 00:16:13,700 --> 00:16:18,100 class Theory and the Marxist. 81 and also point out some 249 00:16:18,100 --> 00:16:23,000 intellectual affinities between Austrian ISM and Marxism 250 00:16:23,300 --> 00:16:26,300 stemming from their common conviction that there does 251 00:16:26,300 --> 00:16:31,800 indeed exist, something like exploitation and a ruling class. 252 00:16:33,800 --> 00:16:37,400 The starting point for the Austrian exploitation theory is 253 00:16:37,400 --> 00:16:39,300 plain and simple as it should be. 254 00:16:39,500 --> 00:16:42,700 Actually it has already been established through the analysis 255 00:16:43,200 --> 00:16:47,400 of the Marxist theory, exploitation characterized, the 256 00:16:47,400 --> 00:16:52,000 relationship between slave and slave master, answer, fan feudal 257 00:16:52,000 --> 00:16:55,600 Lord, but no exploitation was found possible under a clean 258 00:16:55,600 --> 00:16:59,200 capitalism. What is the principal difference 259 00:16:59,300 --> 00:17:03,000 between these two cases? The answer is the recognition or 260 00:17:03,500 --> 00:17:07,099 Ignition of the homesteading principle, The Peasant under 261 00:17:07,099 --> 00:17:11,599 feudalism is exploited because he does not have exclusive 262 00:17:11,599 --> 00:17:15,500 control over land that he homesteaded and the slave 263 00:17:15,500 --> 00:17:19,200 because he has no exclusive control over his own Homestead 264 00:17:19,200 --> 00:17:21,900 body. If on the other hand, everyone 265 00:17:21,900 --> 00:17:26,099 has exclusive control over his own body is a free labor that is 266 00:17:26,400 --> 00:17:29,800 and acts in accordance with the homesteading principle. 267 00:17:30,200 --> 00:17:33,300 There can be no exploitation. It is logically. 268 00:17:33,400 --> 00:17:37,100 Absurd to claim that a person who homesteads, good, not 269 00:17:37,100 --> 00:17:41,100 previously homesteaded by anybody else, or who, employ 270 00:17:41,100 --> 00:17:45,500 such Goods in the production of future Goods, or who saves 271 00:17:45,500 --> 00:17:48,900 presently homesteaded or produced Goods, in order to 272 00:17:48,900 --> 00:17:50,800 increase the future supply of goods. 273 00:17:50,800 --> 00:17:54,100 Could thereby exploit. Anybody nothing has been taken 274 00:17:54,100 --> 00:17:58,100 away from anybody in this process and additional Goods 275 00:17:58,100 --> 00:18:02,000 have actually been created and it would be equally absurd to 276 00:18:02,000 --> 00:18:05,500 claim that an Women between different homesteaders Savers 277 00:18:05,500 --> 00:18:09,100 and producers regarding their non exploitative lie, 278 00:18:09,100 --> 00:18:13,900 appropriated goods or services could possibly contain any Foul 279 00:18:14,000 --> 00:18:16,400 Play. Instead exploitation takes 280 00:18:16,400 --> 00:18:20,300 place, whenever any deviation from the homesteading, principle 281 00:18:20,400 --> 00:18:24,200 occurs exploitation occurs, whenever a person successfully 282 00:18:24,200 --> 00:18:27,900 claims partial or full control over the scarce resources. 283 00:18:27,900 --> 00:18:32,400 He has not homesteaded saved or produced and which he has not 284 00:18:32,400 --> 00:18:35,200 acquired. Actually, from a previous 285 00:18:35,300 --> 00:18:40,700 producer, owner exploitation is the expropriation of 286 00:18:40,700 --> 00:18:44,600 homesteaders producers and Savers by late coming, non 287 00:18:44,600 --> 00:18:49,500 homesteaders, non producers, non Savers and non contractors. 288 00:18:50,000 --> 00:18:53,900 It is the expropriation of people whose property claims are 289 00:18:53,900 --> 00:18:58,500 grounded in work and contract by people whose claims are derived 290 00:18:58,600 --> 00:19:02,900 from thin air and who disregard others work? 291 00:19:03,400 --> 00:19:08,600 And contracts. Needless to say exploitation. 292 00:19:08,600 --> 00:19:12,600 Thus defined is, in fact, an integral part of human history, 293 00:19:12,900 --> 00:19:16,100 one can acquire, an increase wealth either through 294 00:19:16,100 --> 00:19:20,700 homesteading producing saving or Contracting or by expropriating 295 00:19:20,700 --> 00:19:24,800 homesteaders, producers Savers or contractors. 296 00:19:25,000 --> 00:19:28,900 There are no other ways. Both methods are natural to 297 00:19:29,200 --> 00:19:32,700 mankind alongside homesteading, producing and Contracting there. 298 00:19:32,700 --> 00:19:36,400 Have always been non productive and non-contractual property. 299 00:19:36,600 --> 00:19:40,000 Positions and in the course of Economic Development just as 300 00:19:40,000 --> 00:19:43,200 producers and contractors can form firms and two prizes and 301 00:19:43,200 --> 00:19:46,300 corporations. So can exploiters create 302 00:19:46,300 --> 00:19:49,400 large-scale, exploitation, Enterprises governments, and 303 00:19:49,400 --> 00:19:53,600 states, the ruling class, which may again be internally, 304 00:19:53,900 --> 00:19:57,800 stratified is initially composed of the members of such in 305 00:19:57,800 --> 00:20:01,700 exploitation firm and with a ruling class established over a 306 00:20:01,700 --> 00:20:05,500 given territory and engaged in the expropriation of economic 307 00:20:05,500 --> 00:20:08,100 resources. From a class of exploited 308 00:20:08,100 --> 00:20:11,400 producers the center of all history. 309 00:20:11,400 --> 00:20:14,400 Indeed becomes a struggle between the exploiters and the 310 00:20:14,400 --> 00:20:17,300 exploited history. Then correctly told is 311 00:20:17,300 --> 00:20:20,700 essentially the history of the victories and defeats of the 312 00:20:20,700 --> 00:20:24,100 rulers in their attempt to maximize exploitative lie, 313 00:20:24,100 --> 00:20:28,600 appropriated income, and of the ruled in their attempts to 314 00:20:28,600 --> 00:20:31,500 resist and reverse. This tendency. 315 00:20:32,100 --> 00:20:36,700 It is in this assessment of history that austrians and 316 00:20:36,700 --> 00:20:39,500 Marxist agree. And why a notable intellectual 317 00:20:39,500 --> 00:20:42,600 Affinity between Austrian and Marxist, historical 318 00:20:42,600 --> 00:20:46,700 investigation exists. Both opposed A historiography 319 00:20:46,700 --> 00:20:50,700 that recognizes only action or inaction economically and 320 00:20:50,700 --> 00:20:54,600 morally On a par and both opposed A historiography that 321 00:20:54,600 --> 00:20:58,800 instead of adapting, such a value neutral stand thinks that 322 00:20:58,800 --> 00:21:01,400 one's own arbitrarily introduced. 323 00:21:02,200 --> 00:21:07,300 Value judgments have to provide the foil for one's own 324 00:21:07,300 --> 00:21:11,900 historical narratives, rather history must be told in terms of 325 00:21:11,900 --> 00:21:16,800 freedom and exploitation parasitism and economic 326 00:21:16,800 --> 00:21:20,900 impoverishment, private property and its destruction. 327 00:21:21,000 --> 00:21:26,400 Otherwise, it is told falsely. While productive Enterprises 328 00:21:26,800 --> 00:21:31,100 come or go because of voluntary support or its absence a ruling 329 00:21:31,100 --> 00:21:33,500 class, never comes to power because there is a demand for 330 00:21:33,500 --> 00:21:38,600 it, nor does it abdicate, when abdication is demonstratively, 331 00:21:38,600 --> 00:21:42,600 demanded one cannot say by any stretch of the imagination that 332 00:21:42,600 --> 00:21:44,900 homesteaders producers Savers and contractors. 333 00:21:44,900 --> 00:21:47,700 Have demanded their own expropriation. 334 00:21:47,800 --> 00:21:50,100 They must be coerced into accepting it. 335 00:21:50,300 --> 00:21:54,000 And this proves conclusively that the exploitative a firm. 336 00:21:54,400 --> 00:21:57,800 Is not in demand at all. Nor can one say that a ruling 337 00:21:57,800 --> 00:22:00,700 class can be brought down by, abstaining from transactions. 338 00:22:00,700 --> 00:22:04,500 With it, in the same way, as one can bring down a productive 339 00:22:04,700 --> 00:22:07,600 Enterprise for the ruling class. Acquires its income through 340 00:22:07,600 --> 00:22:10,400 non-productive and non-contractual transactions. 341 00:22:10,700 --> 00:22:13,600 And thus is unaffected by boycotts. 342 00:22:13,700 --> 00:22:18,300 Rather what makes the rise of an exploitation for impossible and 343 00:22:18,300 --> 00:22:21,800 what alone Can in turn, bring it down. 344 00:22:22,000 --> 00:22:25,200 Is a specific state of public opinion or in Marxist 345 00:22:25,200 --> 00:22:29,600 terminology a specific state of class consciousness. 346 00:22:31,700 --> 00:22:36,700 An exploiter creates victims and victims are potential enemies. 347 00:22:37,300 --> 00:22:41,900 It is possible that this resistance can be lastingly 348 00:22:41,900 --> 00:22:46,900 broken down by force. As, for example, in the case of 349 00:22:46,900 --> 00:22:50,100 a group of men, exploding another group of roughly the 350 00:22:50,100 --> 00:22:53,000 same size. However, more than force is 351 00:22:53,000 --> 00:22:57,300 needed to expand exploitation over a population, many times 352 00:22:57,300 --> 00:23:01,200 its own size for this to happen. A firm must also have Public 353 00:23:01,200 --> 00:23:04,200 support, a majority of the population. 354 00:23:04,200 --> 00:23:09,700 Must accept the exploitative actions as legitimate. 355 00:23:09,800 --> 00:23:13,800 This acceptance can range from active enthusiasm to passive 356 00:23:13,800 --> 00:23:17,500 resignation, but it must be Acceptance in the sense that a 357 00:23:17,500 --> 00:23:22,600 majority must have given up the idea of actively or passively 358 00:23:22,800 --> 00:23:27,900 resisting, any attempt to enforce non-productive and 359 00:23:27,900 --> 00:23:30,200 non-contractual property acquisitions. 360 00:23:31,100 --> 00:23:38,500 The class Consciousness must be low undeveloped and beg only. 361 00:23:38,500 --> 00:23:43,100 As long as the State of Affairs. Last is there still room for an 362 00:23:43,100 --> 00:23:47,800 exploitative firm to prosper, even if no actual demand exists 363 00:23:49,200 --> 00:23:54,700 only if and insofar as the exploited and expropriated 364 00:23:54,700 --> 00:23:59,000 develop a clear idea of their own situation and are united 365 00:23:59,000 --> 00:24:00,700 with other members of their class. 366 00:24:00,900 --> 00:24:05,000 To an ideological movement, that gives expression to the idea of 367 00:24:05,000 --> 00:24:09,500 a classless society, where all exploitation is abolished. 368 00:24:09,600 --> 00:24:11,900 Can the power of the ruling class be broken. 369 00:24:12,100 --> 00:24:16,700 Only if and insofar as a majority of the exploited public 370 00:24:16,700 --> 00:24:20,400 becomes consciously integrated into such a movement and 371 00:24:20,400 --> 00:24:25,900 accordingly displays, a common outrage over all non-productive 372 00:24:25,900 --> 00:24:30,300 or non-contractual property. Acquisition shows a common 373 00:24:30,800 --> 00:24:34,400 Attempt for everyone who engages in such acts and deliberately 374 00:24:34,400 --> 00:24:38,000 contributes nothing to help, make them successful, not to 375 00:24:38,000 --> 00:24:40,000 mention actively trying to obstruct them. 376 00:24:40,400 --> 00:24:43,300 Can its power be brought to crumble. 377 00:24:45,500 --> 00:24:50,800 The gradual, abolition of feudal and absolutist Rule and the rise 378 00:24:50,800 --> 00:24:54,200 of increasingly capitalist Societies in Western Europe. 379 00:24:54,200 --> 00:24:58,100 And the United States accompanied by unheard of 380 00:24:58,100 --> 00:25:02,200 economic growth and increasing population was the result of a 381 00:25:02,208 --> 00:25:06,100 growing class Consciousness among the exploited who are 382 00:25:06,100 --> 00:25:09,700 ideologically molded together through the doctrines of natural 383 00:25:09,700 --> 00:25:13,700 rights and liberalism in this austrians. 384 00:25:13,800 --> 00:25:16,200 And marxists agree, they disagree. 385 00:25:16,200 --> 00:25:20,800 However, as to whether the reversal of this liberalization 386 00:25:20,800 --> 00:25:25,900 process and the steadily increased levels of exploitation 387 00:25:25,900 --> 00:25:32,000 in the societies since the last third of the 19th century and 388 00:25:32,000 --> 00:25:36,600 particularly pronounced since World War One, are the result of 389 00:25:36,600 --> 00:25:40,700 a loss in class Consciousness. In fact, in the Austrian view, 390 00:25:40,700 --> 00:25:45,200 Marxism must accept much of the blame for this development by 391 00:25:45,200 --> 00:25:48,900 Miss directing attention from the correct exploitation model 392 00:25:48,900 --> 00:25:55,600 of the Homesteader producer saver contractor versus the non 393 00:25:55,600 --> 00:25:59,400 Homesteader producer saver contractor to the fallacious 394 00:25:59,400 --> 00:26:02,800 model of the wage earner versus the capitalist. 395 00:26:02,800 --> 00:26:09,700 Thus, muddling things up. The establishment of a ruling 396 00:26:09,700 --> 00:26:14,300 class over an exploited, one many times its size by coercion. 397 00:26:14,300 --> 00:26:16,800 And the manipulation of public opinion. 398 00:26:16,800 --> 00:26:20,000 I e0 a low degree of class Consciousness among the 399 00:26:20,000 --> 00:26:25,100 exploited Finds. Its most basic institutional 400 00:26:25,100 --> 00:26:28,500 expression in the creation of a system of public law, 401 00:26:28,700 --> 00:26:33,700 superimposed on private law, the ruling class sets itself apart 402 00:26:33,700 --> 00:26:36,100 and protects its position as a rule. 403 00:26:36,200 --> 00:26:40,700 In class by adopting, a constitution, for their firm's 404 00:26:40,700 --> 00:26:44,300 operations. On the One Hand by formalizing, 405 00:26:44,500 --> 00:26:49,500 the internal operations within the state apparatus, as well, as 406 00:26:49,500 --> 00:26:54,300 its relations with the exploited population, a constitution 407 00:26:54,300 --> 00:27:00,800 creates some degree of legal stability, the more familiar and 408 00:27:00,900 --> 00:27:07,700 popular private law Notions are imposed into Constitutional and 409 00:27:07,700 --> 00:27:11,900 public law. The more favorably disposed will 410 00:27:12,300 --> 00:27:16,000 be the public to the existence of the state. 411 00:27:17,000 --> 00:27:19,700 On the other hand, any Constitution and public law. 412 00:27:19,900 --> 00:27:26,100 Also formalizes, the immune status of the ruling class as 413 00:27:26,100 --> 00:27:29,900 regards to the homesteading principle. 414 00:27:32,800 --> 00:27:37,500 It formalizes, the right of the states representatives to engage 415 00:27:37,500 --> 00:27:41,000 in non productive and non-contractual property 416 00:27:41,200 --> 00:27:46,200 Acquisitions and the ultimate subordination of private to 417 00:27:46,200 --> 00:27:50,500 Public Law, class Justice, IE, one set of laws for the rulers. 418 00:27:50,500 --> 00:27:54,600 And another for the ruled comes to bear in this dualism of 419 00:27:54,600 --> 00:27:59,400 public and private law and in the domination and infiltration 420 00:27:59,400 --> 00:28:03,900 of public law over. And into private law. 421 00:28:04,300 --> 00:28:07,300 It is not because private property rights are recognized 422 00:28:07,300 --> 00:28:11,100 by law. As marxists think the clasp that 423 00:28:11,100 --> 00:28:14,200 clasp Justice is established. Rather class. 424 00:28:14,200 --> 00:28:18,000 Justice comes into being precisely whenever a legal 425 00:28:18,000 --> 00:28:22,600 distinction exists between a class of persons acting under 426 00:28:22,600 --> 00:28:27,400 and being protected by public law and another class acting 427 00:28:27,400 --> 00:28:31,800 under and being protected instead by some subordinate. 428 00:28:32,100 --> 00:28:36,500 It law more specifically, then the basic proposition of the 429 00:28:36,500 --> 00:28:40,500 Marxist, theory of the state in particular is false. 430 00:28:40,900 --> 00:28:43,900 The state is not exploitative because it protects the 431 00:28:43,900 --> 00:28:49,900 capitalists property rights, but because it itself is exempt from 432 00:28:49,900 --> 00:28:54,800 the Restriction of having to acquire property, productively 433 00:28:55,100 --> 00:29:00,700 and contractually. In spite of this fundamental 434 00:29:00,700 --> 00:29:05,100 misconception, however, Marxism because it correctly interprets 435 00:29:05,100 --> 00:29:09,000 a state as exploitative. Unlike for example, the public 436 00:29:09,000 --> 00:29:13,600 Choice school, which sees it as normal firm. 437 00:29:13,700 --> 00:29:17,400 Among others is on to some important, insights regarding 438 00:29:17,400 --> 00:29:22,000 the logic of State operations. For one thing, it recognizes the 439 00:29:22,000 --> 00:29:25,400 Strategic function of redistributionist State 440 00:29:25,400 --> 00:29:29,100 policies. As an exploitative firm, the 441 00:29:29,100 --> 00:29:33,600 state must at all times be interested in a low degree of 442 00:29:33,600 --> 00:29:36,700 class Consciousness. Among the ruled, the 443 00:29:36,700 --> 00:29:42,200 redistribution of property and income, is the state's means by 444 00:29:42,200 --> 00:29:47,700 which it can create divisiveness among the public and destroy the 445 00:29:47,700 --> 00:29:51,800 formation of a unifying class Consciousness among the 446 00:29:51,800 --> 00:29:56,300 exploited, furthermore, the redistribution of state power 447 00:29:56,300 --> 00:29:59,000 itself. Through democratizing the State 448 00:29:59,000 --> 00:30:03,400 Constitution and opening up every ruling position to 449 00:30:03,400 --> 00:30:07,200 everyone and granting everyone. The right to participate in the 450 00:30:07,200 --> 00:30:09,500 determination of State personnel. 451 00:30:09,500 --> 00:30:15,100 And policy is actually a means for reducing the resistance 452 00:30:15,400 --> 00:30:24,000 against exploitation as such. Secondly, the state is indeed as 453 00:30:24,000 --> 00:30:26,400 Marxist. See the great Center of 454 00:30:26,400 --> 00:30:30,800 ideological propaganda. And mystification exploitation 455 00:30:30,900 --> 00:30:34,300 is really Freedom. Taxes are really voluntary 456 00:30:34,300 --> 00:30:37,700 contributions. Non-contractual relations are 457 00:30:37,700 --> 00:30:40,900 really conceptually contractual ones. 458 00:30:41,300 --> 00:30:45,400 No one is ruled by anyone, but we all rule ourselves without 459 00:30:45,400 --> 00:30:48,900 the state, neither law nor security would exist and the 460 00:30:48,900 --> 00:30:50,800 poor would perish. Cetera. 461 00:30:51,200 --> 00:30:54,500 All of this is part of the ideological superstructure, 462 00:30:54,600 --> 00:30:58,800 designed to legitimize an underlying basis of economic 463 00:30:58,800 --> 00:31:03,200 exploitation. And finally marxists are also 464 00:31:03,200 --> 00:31:08,200 correct in noticing the close association between the state 465 00:31:08,600 --> 00:31:13,100 and business, especially the banking Elite, even though their 466 00:31:13,100 --> 00:31:17,500 explanation for it is faulty. The reason is not that the 467 00:31:17,500 --> 00:31:20,100 Bourgeois Z establishment season support. 468 00:31:20,300 --> 00:31:25,300 The state as a guarantor of private property rights and 469 00:31:25,300 --> 00:31:29,300 contractual ISM on the contrary The Establishment correctly, 470 00:31:29,300 --> 00:31:34,400 perceives the state as the very antithesis to private property 471 00:31:34,900 --> 00:31:39,500 that it is and takes a close interest in it. 472 00:31:39,500 --> 00:31:43,600 For this reason, the more successful business, the larger, 473 00:31:43,600 --> 00:31:48,200 the potential danger of government exploitation, but the 474 00:31:48,200 --> 00:31:52,800 larger also the potential gains That can be achieved if it can 475 00:31:52,800 --> 00:31:58,500 come under governments special protection and is exempt from 476 00:31:58,500 --> 00:32:00,700 the full weight of capitalist competition. 477 00:32:01,200 --> 00:32:04,900 This is why the business establishment is interested in 478 00:32:04,900 --> 00:32:13,100 the state and its infiltration. The ruling Elite in turn is 479 00:32:13,100 --> 00:32:17,600 interested in close cooperation with the the business 480 00:32:17,600 --> 00:32:20,700 establishment because of its Financial powers. 481 00:32:20,900 --> 00:32:26,000 In particular, the banking Elite is of interest because as an 482 00:32:26,000 --> 00:32:29,600 exploitative firm, the state naturally, wishes to possess 483 00:32:29,800 --> 00:32:33,900 complete autonomy, for counterfeiting by offering to 484 00:32:33,900 --> 00:32:38,200 cut the banking Elite in on its own counterfeiting. 485 00:32:39,500 --> 00:32:43,600 Mechanizations and allowing them to counterfeit in addition to 486 00:32:43,600 --> 00:32:47,000 its own counterfeited notes under a regime of fractional 487 00:32:47,000 --> 00:32:50,200 Reserve banking. The state can easily Reach This 488 00:32:50,200 --> 00:32:55,600 goal and establish a system of State monopolized money and card 489 00:32:55,600 --> 00:32:58,700 alized banking controlled by the central bank. 490 00:32:59,200 --> 00:33:02,700 And through this direct counterfeiting connection with a 491 00:33:02,700 --> 00:33:07,500 banking system, and by extension the bank's major clients the 492 00:33:07,500 --> 00:33:13,000 ruling class in Extends far beyond the state apparatus to 493 00:33:13,000 --> 00:33:15,700 the very nerve center of Civil Society. 494 00:33:16,200 --> 00:33:19,900 Not that much different at least in appearance from the picture 495 00:33:20,200 --> 00:33:26,100 that marxists like to paint of the cooperation between banking 496 00:33:26,500 --> 00:33:32,900 business Elites, and the state competition within the ruling 497 00:33:32,900 --> 00:33:35,200 class, and among different ruling classes. 498 00:33:35,500 --> 00:33:39,100 Brings about a tendency towards increased. 499 00:33:39,200 --> 00:33:43,400 The concentration Marxism is right in this, however, it's 500 00:33:43,700 --> 00:33:47,300 faulty theory of exploitation again, leads it to locate the 501 00:33:47,300 --> 00:33:50,500 cause for this tendency in the wrong place. 502 00:33:50,900 --> 00:33:55,000 Marxism, sees such a tendency as inherent in capitalist 503 00:33:55,000 --> 00:33:57,700 competition yet. It is precisely so long as 504 00:33:57,700 --> 00:33:59,900 people are engaged in clean capitalism. 505 00:34:00,100 --> 00:34:05,100 That competition is not a form of zero some interaction, the 506 00:34:05,100 --> 00:34:09,100 Homesteader, the producer saver and contractor do not gain. 507 00:34:09,300 --> 00:34:13,300 At the others expense, their gains either, leave another's. 508 00:34:13,300 --> 00:34:17,500 Physical possessions, completely unaffected, or they actually 509 00:34:17,500 --> 00:34:21,500 imply Mutual gains as in the case of all contractual 510 00:34:21,500 --> 00:34:24,300 exchanges. Capitalism. 511 00:34:24,300 --> 00:34:28,500 Thus accounts for increases in absolute wealth. 512 00:34:28,800 --> 00:34:33,300 But under its regime. No systematic, tendency towards 513 00:34:33,300 --> 00:34:38,100 relative concentration, can be said to exist, instead 0. 514 00:34:38,100 --> 00:34:41,600 Some interactions characterized. Not only the relationship 515 00:34:41,600 --> 00:34:45,000 between the ruler and the ruled, but also between competing 516 00:34:45,000 --> 00:34:49,600 rulers exploitation defined as non productive and 517 00:34:49,699 --> 00:34:53,800 non-contractual property Acquisitions is only Possible. 518 00:34:53,800 --> 00:34:59,200 As long as there is anything that can be appropriated, get if 519 00:34:59,200 --> 00:35:02,100 there were free competition in the business of exploitation, 520 00:35:02,300 --> 00:35:05,500 there would obviously be nothing left to expropriate, the 521 00:35:05,500 --> 00:35:10,400 sexploitation requires Monopoly, over some given territory and 522 00:35:10,400 --> 00:35:13,100 population. And the competition between 523 00:35:13,100 --> 00:35:15,700 exploiters is by its very nature. 524 00:35:16,000 --> 00:35:20,100 Eliminative, and must bring about a tendency toward relative 525 00:35:20,100 --> 00:35:23,000 concentration of exploitative firms. 526 00:35:23,200 --> 00:35:27,800 As well as a tendency towards centralization within each 527 00:35:28,000 --> 00:35:31,500 exploited firm. The development of States rather 528 00:35:31,700 --> 00:35:35,400 than capitalist firms provides. The foremost illustration of 529 00:35:35,400 --> 00:35:38,600 this tendency. There are now a significantly 530 00:35:38,600 --> 00:35:43,000 smaller number of states with exploitative control over much 531 00:35:43,000 --> 00:35:46,600 larger territories than in previous centuries. 532 00:35:48,300 --> 00:35:52,400 And within each state apparatus there has, in fact, been a 533 00:35:52,400 --> 00:35:56,200 constant tendency toward increasing the powers of the 534 00:35:56,200 --> 00:35:59,800 central government at the expense of its regional and 535 00:35:59,800 --> 00:36:04,300 local subdivisions. Yet outside the state apparatus. 536 00:36:04,300 --> 00:36:08,300 A tendency toward relative concentration, has also become a 537 00:36:08,300 --> 00:36:11,900 parent for the same reason. Not as should be clear by now 538 00:36:12,100 --> 00:36:16,200 because of Any trait inherent in capitalism, but because the 539 00:36:16,200 --> 00:36:20,000 ruling class has expanded its Into Civil Society, through the 540 00:36:20,000 --> 00:36:24,200 creation of a state banking business Alliance. 541 00:36:24,400 --> 00:36:27,900 And in particular, the establishment of a system of 542 00:36:27,900 --> 00:36:32,200 Central Banking, if a concentration and centralization 543 00:36:32,400 --> 00:36:34,100 of state power, then takes place. 544 00:36:34,300 --> 00:36:38,200 It is only natural that this be accompanied by a parallel 545 00:36:38,200 --> 00:36:42,000 process of relative concentration, and cartelization 546 00:36:42,300 --> 00:36:46,500 of banking and industry along with increased State Powers, the 547 00:36:46,500 --> 00:36:51,400 associated Banking, and business establishment powers of 548 00:36:51,400 --> 00:36:56,700 eliminating or putting economic competitors at a disadvantage by 549 00:36:56,700 --> 00:37:01,700 means of non-productive and or non-contractual expropriations. 550 00:37:01,700 --> 00:37:05,500 Increase business. Concentration is the reflection 551 00:37:05,700 --> 00:37:09,500 of a state ization of economic life. 552 00:37:12,000 --> 00:37:16,200 The primary means for the expansion of state power and the 553 00:37:16,200 --> 00:37:20,300 elimination of rival exploitation centers is war and 554 00:37:20,300 --> 00:37:23,400 Military domination. Interstate competition. 555 00:37:23,600 --> 00:37:28,800 Implies a tendency toward war and imperialism as centers of 556 00:37:28,800 --> 00:37:32,600 exploitation their interests are by Nature antagonistic. 557 00:37:32,800 --> 00:37:36,800 Moreover, with each of them internally in command of the 558 00:37:36,800 --> 00:37:40,200 instrument of Taxation and absolute counterfeiting Powers. 559 00:37:40,500 --> 00:37:43,300 It is possible. For the ruling class, to let 560 00:37:43,300 --> 00:37:45,800 others pay for their Wars naturally. 561 00:37:45,900 --> 00:37:50,700 If one does not have to pay for one's risky Ventures, oneself, 562 00:37:50,700 --> 00:37:54,300 but can force others to do. So one tends to be a greater 563 00:37:54,300 --> 00:37:56,600 risk taker and more trigger-happy. 564 00:37:57,000 --> 00:38:02,000 Then one might otherwise be Marxism contrary to most of the 565 00:38:02,000 --> 00:38:05,500 so-called booze huasi social sciences gets the facts. 566 00:38:05,500 --> 00:38:07,500 Right? There was indeed a tendency 567 00:38:07,500 --> 00:38:11,900 toward imperialism operative in history and the foremost Realist 568 00:38:11,900 --> 00:38:14,800 powers are indeed. The most advanced capitalist 569 00:38:14,800 --> 00:38:17,300 Nations. Get the explanation. 570 00:38:17,600 --> 00:38:20,600 Is once again faulty. It is the state as an 571 00:38:20,600 --> 00:38:23,800 institution exempt from the capitalist rules of property 572 00:38:23,800 --> 00:38:27,500 Acquisitions. That is by nature aggressive. 573 00:38:28,200 --> 00:38:33,000 And the historical evidence of a close correlation between 574 00:38:33,000 --> 00:38:36,800 capitalism and imperialism, only seemingly contradicts this. 575 00:38:36,800 --> 00:38:39,600 It Finds Its explanation easily enough. 576 00:38:39,600 --> 00:38:43,100 In the fact that in order to come out successfully from 577 00:38:43,100 --> 00:38:47,400 Interstate Wars, a state must be in command of sufficient in 578 00:38:47,400 --> 00:38:51,400 relative terms, economic resources, other things being 579 00:38:51,400 --> 00:38:55,900 equal, the state with more ample resources will win as an 580 00:38:55,900 --> 00:38:57,800 exploitative firm estate is by nature. 581 00:38:58,200 --> 00:39:01,000 Octave of wealth and capital accumulation. 582 00:39:01,900 --> 00:39:06,600 Wealth is produced exclusively by civil society and the weaker, 583 00:39:06,700 --> 00:39:11,600 the state's exploitative Powers, the more wealth and capital 584 00:39:11,600 --> 00:39:15,400 Society accumulates. Thus paradoxical, as it may 585 00:39:15,400 --> 00:39:20,400 sound at first, the weaker or the more liberal a state is 586 00:39:20,400 --> 00:39:23,800 internally. The further developed capitalism 587 00:39:23,800 --> 00:39:29,500 is a developed capitalist economy to Tracked from makes 588 00:39:29,500 --> 00:39:33,800 the state richer and a richer State, then makes for more and 589 00:39:33,800 --> 00:39:36,100 more successful expansionist Wars. 590 00:39:36,600 --> 00:39:40,200 It is this relationship that explains why initially the 591 00:39:40,200 --> 00:39:44,000 states of Western Europe and in particular, Great Britain were 592 00:39:44,000 --> 00:39:47,700 the leading imperialist powers and why in the 20th century, 593 00:39:47,800 --> 00:39:50,900 this role has been assumed by the United States. 594 00:39:53,000 --> 00:39:55,600 And a similarly straightforward yet. 595 00:39:55,700 --> 00:39:59,700 Once again entirely non-marxist explanation exists for the 596 00:39:59,700 --> 00:40:03,400 frequent Marxist. Observation that the banking and 597 00:40:03,400 --> 00:40:07,100 business establishment is usually among the most Ardent 598 00:40:07,100 --> 00:40:11,200 supporters of military strength and Imperial expansionism. 599 00:40:11,800 --> 00:40:14,600 This support does not occur because the expansion of 600 00:40:14,600 --> 00:40:17,900 capitalist markets requires exploitation, but because the 601 00:40:17,900 --> 00:40:22,200 expansion of State protected and privileged business requires, 602 00:40:22,300 --> 00:40:25,500 That such protection be extended, also to foreign 603 00:40:25,500 --> 00:40:28,600 countries and that foreign competitors be hampered through 604 00:40:28,600 --> 00:40:32,100 non-contractual and non productive property Acquisitions 605 00:40:32,300 --> 00:40:36,700 in the same way or more so than internal competition. 606 00:40:37,000 --> 00:40:40,700 Specifically, The Establishment supports imperialism. 607 00:40:40,900 --> 00:40:44,200 If this support promises to lead to a position of military 608 00:40:44,400 --> 00:40:48,900 domination of One's Own Allied State over another for then, 609 00:40:49,100 --> 00:40:52,200 from a position of military strength, it becomes possible. 610 00:40:52,300 --> 00:40:57,600 Possible to establish a system of what one may call monetary 611 00:40:57,600 --> 00:41:02,700 imperialism. The dominating state will use 612 00:41:02,700 --> 00:41:07,100 its Superior power to enforce a policy of internationally 613 00:41:07,200 --> 00:41:11,400 coordinated inflation. Its own Central Bank sets the 614 00:41:11,400 --> 00:41:14,300 pace in the process of counterfeiting. 615 00:41:14,500 --> 00:41:18,000 And the central banks of the dominated states are ordered to 616 00:41:18,000 --> 00:41:21,800 use, its currency, as their own reserves and inflate. 617 00:41:21,800 --> 00:41:28,300 On top of them, thus, along with the dominating State and as the 618 00:41:28,300 --> 00:41:31,800 earliest, Receivers of the counterfeit Reserve currency, 619 00:41:32,200 --> 00:41:34,200 its Associated Banking and business. 620 00:41:34,400 --> 00:41:38,800 Establishment can engage in almost Costless, expropriation 621 00:41:38,900 --> 00:41:41,900 of foreign property, owners and income. 622 00:41:41,900 --> 00:41:46,600 Producers a double layer of exploitation of a foreign State 623 00:41:47,000 --> 00:41:50,500 and a foreign Elite on top of a national state. 624 00:41:50,600 --> 00:41:55,000 And Elite is imposed on the exploited class in the dominated 625 00:41:55,000 --> 00:41:58,900 territories, causing prolonged economic dependency on. 626 00:41:59,100 --> 00:42:04,100 Of relative economic stagnation in comparison with the dominant 627 00:42:04,100 --> 00:42:08,800 Nation, it is this very uncapitalized situation that 628 00:42:08,800 --> 00:42:12,800 characterizes the status of the United States and the US dollar 629 00:42:13,000 --> 00:42:17,400 and that gives rise to the correct accusations concerning 630 00:42:17,400 --> 00:42:22,200 US economic exploitation and dollar imperialism. 631 00:42:23,600 --> 00:42:27,800 Finally, the increasing concentration and centralization 632 00:42:27,800 --> 00:42:33,300 of exploitative powers leads to economic stagnation and thereby 633 00:42:33,300 --> 00:42:37,300 creates the objective conditions for the ultimate demise of these 634 00:42:37,300 --> 00:42:41,900 powers and the establishment of a classless society capable of 635 00:42:41,900 --> 00:42:46,600 producing unheard of economic Prosperity, contrary to Marxist 636 00:42:46,600 --> 00:42:48,900 claims. This society would not be the 637 00:42:48,900 --> 00:42:53,000 result of any historical laws. In fact, no such thing as an 638 00:42:53,700 --> 00:42:57,900 Bowl historical laws as Marxist conceived of them exist, nor 639 00:42:57,900 --> 00:43:01,300 will it be the result of a tendency for the rate of profit 640 00:43:01,300 --> 00:43:05,200 to fall with an increased organic composition of capital 641 00:43:05,300 --> 00:43:10,400 and increase in the proportion of constant to variable Capital 642 00:43:10,500 --> 00:43:15,200 that is as Marx thought just as the labor theory of value of is 643 00:43:15,200 --> 00:43:19,700 false Beyond repair. So is the law of the tendency of 644 00:43:19,700 --> 00:43:24,400 the profit rate to fall which it is based on the source of Value 645 00:43:24,400 --> 00:43:28,200 interest and profit is not exclusively the expenditure of 646 00:43:28,200 --> 00:43:32,000 labor but much more General acting. 647 00:43:32,000 --> 00:43:36,300 IE the employment of scarce means in the pursuit of goals by 648 00:43:36,300 --> 00:43:40,500 agents who are constrained by time preference and uncertainty 649 00:43:40,600 --> 00:43:43,300 imperfect knowledge. There was no reason to suppose 650 00:43:43,300 --> 00:43:47,600 then that changes in the organic composition of capital should 651 00:43:47,600 --> 00:43:53,400 have any systematic relation to changes in interest. 652 00:43:53,700 --> 00:43:59,000 And profit. Instead, the likelihood of 653 00:43:59,000 --> 00:44:02,500 crises that stimulate the development of a higher degree 654 00:44:02,500 --> 00:44:06,600 of class Consciousness. I e0 the subjective conditions 655 00:44:06,600 --> 00:44:10,800 for the overthrow of the ruling class increases because to use 656 00:44:10,800 --> 00:44:15,400 one of Marx's, favorite terms of the dialectics of exploitation 657 00:44:15,500 --> 00:44:17,400 that I have already touched on earlier. 658 00:44:17,600 --> 00:44:22,500 Exploitation is destructive of wealth formation. 659 00:44:22,700 --> 00:44:26,500 Hence, in the competition of exploitative. 660 00:44:26,700 --> 00:44:30,600 X, IE of States less exploitative or more liberal 661 00:44:30,600 --> 00:44:34,600 ones tend to out-compete more, exploitative ones, only because 662 00:44:34,600 --> 00:44:38,900 they are in command of more ample resources, the process of 663 00:44:38,900 --> 00:44:42,300 imperialism. Initially has a relatively 664 00:44:42,400 --> 00:44:44,800 liberating effect. On society's coming under its 665 00:44:44,800 --> 00:44:48,000 control a relatively more capitalist. 666 00:44:48,000 --> 00:44:52,700 Social model is exported to relatively less capitalist more 667 00:44:52,700 --> 00:44:58,400 exploitative societies. The development of productive 668 00:44:58,400 --> 00:45:01,800 forces is stimulated. Economic integration is 669 00:45:01,800 --> 00:45:05,300 furthered division of labor extended and a genuine World 670 00:45:05,300 --> 00:45:07,800 Market. Establish population figures, go 671 00:45:07,800 --> 00:45:13,000 up in response and expectations about the economic future rise 672 00:45:13,000 --> 00:45:17,000 to unprecedented Heights with exploitative domination, taking 673 00:45:17,000 --> 00:45:21,000 hold and Interstate competition reduced or even eliminated in a 674 00:45:21,000 --> 00:45:24,200 process of imperialist expansionism. 675 00:45:24,500 --> 00:45:30,000 However, the Constraints on the dominating State's power of 676 00:45:30,000 --> 00:45:33,600 integral exploitation and expropriation gradually 677 00:45:33,600 --> 00:45:37,100 disappear. Internal exploitation, Taxation 678 00:45:37,100 --> 00:45:40,000 and regulation. Begin to increase the closer. 679 00:45:40,000 --> 00:45:43,300 The ruling class comes to its ultimate goal of world 680 00:45:43,300 --> 00:45:48,800 domination, economic stagnation sets in and the worldwide higher 681 00:45:49,300 --> 00:45:57,200 expectations become frustrated. And this high expectations and 682 00:45:57,200 --> 00:46:00,600 an economic reality, increasingly falling behind. 683 00:46:00,600 --> 00:46:04,900 These expectations is the classical situation for the 684 00:46:04,900 --> 00:46:07,600 emergence of a revolutionary potential. 685 00:46:07,700 --> 00:46:13,700 A desperate need for ideological solutions to the emerging crises 686 00:46:13,800 --> 00:46:17,000 arises along with a more. Widespread recognition of the 687 00:46:17,000 --> 00:46:21,400 fact that state rule, Taxation and regulation far from offering 688 00:46:21,400 --> 00:46:25,700 such as solution, actually constitute the Problem, that 689 00:46:25,700 --> 00:46:30,000 must be overcome if in this situation of economic, 690 00:46:30,000 --> 00:46:34,100 stagnation crisis and ideological disillusion, a 691 00:46:34,100 --> 00:46:38,200 positive solution is offered in the form of a systematic and 692 00:46:38,200 --> 00:46:40,800 comprehensive libertarian philosophy. 693 00:46:41,000 --> 00:46:44,500 Coupled with its economic counterpart, Austrian economics. 694 00:46:44,900 --> 00:46:49,200 And if this ideology is propagated by an activist 695 00:46:49,200 --> 00:46:53,300 movement, then the prospects of igniting the Revolutionary 696 00:46:53,400 --> 00:46:58,100 potential To activism become overwhelmingly, positive and 697 00:46:58,300 --> 00:47:03,500 promising. Anti status pressures, will 698 00:47:03,500 --> 00:47:07,400 Mount and bring about an irresistible tendency toward 699 00:47:07,400 --> 00:47:11,000 dismantling the power of the ruling class and the state as 700 00:47:11,000 --> 00:47:15,600 its instrument of exploitation. If an so far as this occurs, 701 00:47:15,600 --> 00:47:18,800 however, it will not mean contrary to the Marxist model 702 00:47:18,900 --> 00:47:21,900 social ownership of means of production. 703 00:47:22,000 --> 00:47:25,500 In fact, social ownership is not only economically inefficient, 704 00:47:25,700 --> 00:47:29,500 as has already been explained but incompatible with the idea 705 00:47:29,700 --> 00:47:31,300 that the state is withering away. 706 00:47:31,500 --> 00:47:36,700 A for if means of production are owned collectively and if it is, 707 00:47:36,700 --> 00:47:40,500 realistically assume that not everyone's ideas as to how to 708 00:47:40,500 --> 00:47:45,000 employ these means in production happen to coincide as if by 709 00:47:45,000 --> 00:47:48,900 Miracle, then it is precisely. Socially owned factors of 710 00:47:48,900 --> 00:47:52,100 production. That require continued State 711 00:47:52,200 --> 00:47:56,100 actions, IE and institution. Coercively imposing one person's 712 00:47:56,100 --> 00:48:00,400 will on another's instead the withering away of the state. 713 00:48:01,000 --> 00:48:04,700 And And with this, the end of exploitation and the beginning 714 00:48:04,700 --> 00:48:09,000 of Liberty and unheard of economic Prosperity means the 715 00:48:09,000 --> 00:48:13,900 establishment of a pure private property Society regulated by 716 00:48:13,900 --> 00:48:16,800 nothing but private law. Thank you for watching Keith, 717 00:48:16,800 --> 00:48:18,100 and I don't tread on anyone.