INDIVIDUALISM IN POLITICS AND ECONOMICS[1]

The term Individualism was cited by Henry Reeve (of _Edinburgh Review_

fame) in William IV’s reign as “a novel expression.” John Stuart Mill

is (wrongly) credited with having given it currency and popularity.

Although he discusses the subject at great length in his _Political

Economy_, he seldom if ever uses the exact term--his judicious

and well-balanced mind was adverse to the manufacture of labels.

He preferred to employ such expressions as “individual freedom,”

“individual property,” “those who have been called the _laissez-faire_

school,” etc. Even in _Liberty_, published much later, which is rightly

regarded as a classic of Individualism, he avoids the term, although

he uses (perhaps not more than once) the word “Individuality” in that

sense.

However, the term is an extremely convenient one to express the views

of those who would confine the functions of the State and various

public authorities to a relatively small province, i.e., maintaining

law and order, the army, the navy and other means of national defence,

the enforcement of contracts, the maintenance of public services

which cannot conveniently be entrusted to private enterprise, and

in general the provision of a fair field for the play of individual

energy. It is opposed to Collectivism, Socialism, Communism, and the

various other means of restricting liberty, whether these be adopted

by public authorities, quasi-private corporations, private firms,

hereditary autocrats, military dictators, or the like. It should be

remembered that in Mill and many writers of the older generation the

terms Socialism and Communism are used as equivalents; and it is

hardly necessary to remind any serious student that words, especially

general terms,[2] are very slippery articles, and that many discussions

are barren and lead to complete misunderstanding, because the parties

engaged in them have no clear definition of the terms in their minds,

or, at any rate, are using the terms in a sense different from that

employed by their opponents.

Modern as the term Individualism may be, the thing itself is older.

Undoubtedly traces of the theory may be found in Latin and Greek

writers; but it is needless to go back further than the seventeenth

century, for three very good reasons:

1. In the Greek world the City State was supreme--the individual

citizen lived and moved as a member of the State.[3] So Pericles is

made by Thucydides to say: “If a man prospers individually when his

country is destroyed, he is none the less joined in the general ruin,

while he comes through in complete safety if the State prospers, even

though he himself suffers calamities.” In the Roman Empire citizens had

only legal rights. The State was autocratic.

2. The medieval theory of politics and economics was feudal and

paternal. To Macaulay’s schoolboy, and even to people less well

informed, this fact is so familiar that the mere statement will

suffice. It is clear that up to 1500 A.D. there was little scope for a

theory of Individualism.

3. The Classical Revival, though it revolutionized a large part of

modern thought, at first did nothing to change the general attitude

toward the State. This was only to be expected, seeing that the State

was supreme in Classical theory.

At last, in the seventeenth century, came the rise of Individualism,

and this was due to several causes:

1. The Protestant Reformation brought private judgment into theology,

and the new habit of thought soon extended to other questions, and,

above all, to the problems of individual rights and the functions of

the State.

2. The wars of Religion which devastated Europe, made men distrust

the principle of authority, which had seemingly led to those horrors.

The wars, having been conducted by Governments, helped to undermine

confidence in official wisdom, i.e., in governments. A careful reader

of Pope’s poetry will notice that almost every line is permeated with

scorn, not only for the general human capacity but for “the great” in

particular; and nearly all the leading eighteenth century writers hold

similar opinions. Thus Gray, in contemplative mood, exclaims:

“How low, how little are the proud,

How indigent the great!”

But long before Pope, the Swedish Oxenstiern (1654) had summed up the

whole matter in his renowned saying: “Behold, my son, with how little

wisdom the world is governed.”

3. The action of despots, benevolent or otherwise, who introduced

innumerable and vexatious regulations to control the business and daily

life of their subjects, caused thoughtful men to distrust government

action. The restrictive policy carried out by Colbert, under Louis XIV,

with a multitude of protective regulations, provoked a reaction to the

_laissez faire_ school of France; and the French merchants’ cry “_let

us alone_”[4] became the motto of economic and political reformers.

But before this, in the reign of Charles II., there had come forward

the English founder of Individualism, the master builder in that

school of empiric philosophy which is one of the most characteristic

products of England. This man was John Locke.[5] His name and writings

are not today very familiar to the general reader, because nearly all

his principles were translated into practice by other men, famous in

their day and tolerably well known to posterity, while Locke is little

more than a name, venerated but nowadays seldom read. And yet he is,

directly and indirectly, perhaps the most influential writer[6] who has

appeared in the last two hundred years.

We are here only concerned with his political philosophy. Its direct

influence in England was immense. The “Glorious Revolution” of 1688

sprang naturally from his theory of government. Adam Smith’s doctrine

of Natural Liberty and Bentham’s general theory of Individualism owe

much to him. John Stuart Mill acknowledged him as one of his masters

in philosophy. But great as was his direct influence in England,

it produced even more striking effects in France and America. The

Declaration of Independence may be traced largely to the philosophy of

Locke, who (though his constitution for South Carolina was a practical

failure) may also claim to have had a share in the Constitution of

the United States. Adam Smith drew from the physiocrats who drew

from Locke. Tom Paine and the other “Friends of the People” found in

Rousseau a like intermediary.

The precursors of Revolution in eighteenth century France owed much

to Locke. Voltaire and the Encyclopaedists were all more or less

his disciples. Though Rousseau is also in one sense a founder of

Socialism, his famous and unhistorical Social Contract was taken from

Locke, who borrowed it from Hobbes, converting it from an argument for

an all powerful despot to an argument for a limited constitutional

monarchy, free and tolerant. Everyone knows the far-famed declarations

of Rousseau’s _Social Contract_ and the Constitution of the United

States--that all men are born free and have a natural right to

freedom and security.[7] But few have read them in Locke’s _Of Civil

Government_, where they appeared much earlier.

For Locke and his disciples, including Adam Smith, Thomas Jefferson,

and a long line of British and American statesmen, the main object

of Representative Government is the freedom and happiness of the

individual citizens who control it by their votes and support it by

their taxes. Thus Locke’s political philosophy crossed the Channel, and

became the groundwork of Quesnay, Turgot, Bastiat, and other advocates

of _laissez faire_, which was a French synonym for Individualism.

Crossing the Atlantic it became the groundwork of American policy in

internal affairs. Locke was the first considerable publicist to lay

down the momentous doctrine that the State is secular--that it has

a well-defined province in which alone it may act, i.e., that its

business is to secure to men their civil rights, leaving all other

matters to individual volition or voluntary co-operation. Thus he says

in _A Letter Concerning Toleration_: “The commonwealth seems to me to

be a society of men constituted only for the procuring, preserving,

and advancing their own civil interests. Civil interests I call life,

liberty, health and indolency [freedom from pain] of body; and the

possession of outward things, such as money, lands, houses, furniture,

and the like. It is the duty of the civil magistrate, by the impartial

execution of equal laws, to secure unto all the people in general, and

to every one of his subjects in particular the just possession of these

things belonging to this life.”

In refusing to extend toleration to Roman Catholics, Locke followed

Milton in his _Areopagitica_. In those times it was believed that Rome,

if it regained power, would overthrow constitutional liberty. The

Inquisition was still active. No one advocated universal toleration

except members of persecuted minorities. In the reign of James II, most

English Dissenters, when offered toleration on condition that the Roman

Catholics should also be tolerated, declined the boon.

Locke, it may be said, laid down the theory so frequently set forth

by Macaulay--that the duty of Government is to preserve the lives and

property of its subjects, and that their other activities must be left

in the main to moral influences and to free competitive enterprise.

Locke did his business so thoroughly that the English theory remained

unchanged for more than a century and a half. Indeed, if tendencies

admitted of exact dates, we might say that Locke’s theory was almost

unchallenged until the publication of the Fabian Essays in 1889.

In _Civil Government_ Locke expounds the Individualistic view

of private property, and again lays down the quintessence of

Individualism: “The great and chief end, therefore, of men’s uniting

into commonwealths, and putting themselves under government, is

the preservation of their property.” He qualifies his theory of a

Social Contract, Compact, or Covenant, by pointing out that “men

when they enter into society give up ... liberty” of a kind; “yet

it being only with an intention in every one the better to preserve

himself, his liberty and property,” the power conferred “can never

be supposed to extend farther than the common good, but is obliged

to secure everyone’s property,” etc., etc. This artful qualification

of the _common good_, serves as a complete defence of the “Glorious

Revolution,” which gave us effective parliamentary government.

As Locke is of capital importance in our subject, those who wish to

study it thoroughly should at least read his monumental essay. Some

critics may object that we have over-valued Locke, seeing that he

was anticipated in many respects by Hobbes as well as by Milton and

other Republican writers. It is true that Hobbes, like Locke, was in

a sense Individualist. But his influence, for various reasons, was

much smaller. Besides, though Hobbes and Locke adopted many of the same

premises, they drew from them quite different conclusions. Locke argued

in favor of a free commonwealth, while Hobbes pointed to an absolute

monarchy.

Locke’s victory over all opposing schools of thought was so complete

that Emancipation and Liberty became for more than a century after

his death the keynotes of English political philosophy. Under the

early Georges individual liberty was not only the admiration of all

intelligent foreigners, but it had gone quite as far as public opinion

approved. With the American revolution democratic reformers came to the

front. But all progress was stopped by the French Revolution.

One of the few able men who wrote in nominal opposition to Locke’s

point of view was Bolingbroke, whose brilliant _Patriot King_

(published in 1749) is probably more admired today than it was at the

time of his death. But Bolingbroke, though he had a more extended

view of the functions of Government than Locke, did not write in

strong opposition to his principles. His ideal, “a patriot king at the

head of a united people,” was capable of a more or less “democratic”

interpretation.

The policy of Walpole, and indeed his successors, was _Quieta non

movere_, “Let sleeping dogs lie.” A politician might have said, “We

are all individualists now.” Tory Dr. Johnson and non-party Goldsmith

joined in composing the couplet:

“How small, of all that human hearts endure,

That part which kings or laws can cause or cure!”

In the same year that the _Patriot King_ was published appeared the far

more important _L’Esprit des Lois_ of Montesquieu, a revolutionary book

because it introduced the historical method. It helped to confirm the

prevalent mode of thought, because it held up the British Constitution

to the admiration of mankind.

We may then take it for granted that among thinkers and writers there

was little effective opposition to Individualism in the eighteenth

century.

In the economic sphere Hume, Tucker and Burke were all advocates of

free trade and industrial emancipation from red tape regulations. But

Adam Smith was the great architect. Individualism, already firmly

rooted in England, was made impregnable in economics for generations

by his _Wealth of Nations_, which appeared in 1776. At second hand

or otherwise this work is so well known that it would be waste of

time to dilate upon it. Until Adam Smith came into the field the

Individualistic practice in politics had not, as a rule, extended to

trade in spite of Walpole’s experiments in that direction. But within

seventy years the triumph of _laissez faire_ in economics was complete.

Pitt, the first great modern Tory statesman, absorbed Adam Smith’s

teaching and educated his party. This was a decisive factor; till

then the one check upon Individualism had been Tory hostility to the

Whigs--the political heirs of Locke. Henceforward the Tories, though

as a body inclined to Protection and State control of trade, could

be persuaded by leaders like Huskisson or Peel (however unwillingly)

to remove restrictions from commerce and industry; indeed, in late

Victorian days their leader, Lord Salisbury, and the bulk of his

Parliamentary followers remained Free Traders. Free Trade means the

absence of a Protective Tariff. Freedom of Trade means freedom not

only from tariffs but from restrictions and regulations of all kinds,

including those imposed by Trade Unions or combinations of employers,

as well as those imposed by Government. This robust growth of economic

Individualism was largely due to the seed sown by the _Wealth of

Nations_ and to the popular arguments of Cobden and the Manchester

School.

It is impossible here to do more than glance at the important

developments of _laissez faire_ in France and the United States.

In France the movement for economic emancipation was led by the

Physiocrats, who by their contemporaries were called “Economistes.”

Many of their members, as Quesnay and Turgot, were great and

beneficent figures in the history of France. The zeal they displayed

for industrial and commercial liberty was natural in reflective men

contemplating the feudal servitude of the French people, who were,

like Rousseau’s Man, everywhere in chains. They rightly attributed

the poverty and misery of France to the obsolete regulations

which everywhere sterilized effort and enterprise. Writing in the

_Encyclopédie_, Turgot condemns “le malheureux principe qui a si

longtemps infecté l’administration du commerce, je veux dire la

manie de tout régler, et de ne jamais s’en rapporter aux hommes sur

leur propre intérêt.” The Physiocrats detected the fallacies of the

Mercantile Theory and the Balance of Trade. Adam Smith owed much to

them; but his judicious mind rejected their “crank” doctrine--that land

is the sole source of wealth. Unhappily for France, Turgot fell, and

instead of his wise reforms came revolutionary violence and the wars

that made Napoleon the military despot of France. Napoleon created

a new bureaucratic state, more efficient than the old monarchy but

hardly less subversive of freedom. Nevertheless Individualism revived

in France after Waterloo and found a brilliant protagonist in Frédéric

Bastiat, whose writings are a most lively exposure of the fallacies of

Socialism, Protectionism and Militarism.

When we turn to the United States, we find there in Thomas Jefferson

the master Individualist--for ability and consistency he has few if any

rivals in the practice of that political creed. Having received the

pure doctrine of Locke, he found during his residence in France a kind

of laboratory in which he watched the French experiments in government.

In the end he was able to establish in the United States a form of

political thought which dominated it from the first decade of the

nineteenth century and still prevails.[8] This may be called a triumph

in observation and experiment, extremely rare in practical politics.

The American tariff, indeed, is contrary to Jefferson’s philosophy. But

it must be remembered that the United States constitutes the largest

and richest free trade area in the world with forty-eight states

enjoying complete liberty of exchange for all their products and a

maximum of freedom from economic restrictions.

We must now turn to England and the Industrial Revolution which will

engage our attention more closely than its twin French sister. This

vast change, which lasted roughly from 1760-1846, is now described

in all text-books. England passed from home industries to factory

industries. The Individualist régime, which then prevailed, enabled her

to effect the change with comparative ease, and a period of wonderful

expansion followed. For the second half of the nineteenth century Great

Britain led the world in manufactures, commerce and shipping. Capital

accumulated. Wages rose steadily. All classes prospered. The eighteenth

century had been the age of optimists, and Adam Smith was one of

them. He believed that Heaven would help those who helped themselves,

and his anticipation of the prosperity which would follow commercial

freedom was realized in Victorian England. One of his doctrines was

that, if the individual trader were left to himself, the study of his

own advantage would lead him to a course of action which would also be

advantageous to society. Let him pursue his own interest, and he would

be “led by an invisible hand to promote an end which was no part of his

intention.”

In the literature of Individualism after Locke, Bentham is perhaps

the leading figure; he was to the nineteenth century what Locke was

to the eighteenth, and he showed how an Individualistic conception of

society might be made the basis of wonderful improvements in public

administration. He was a strong advocate of public economy, and was

careful to insist that the functions of central and local authorities

should be limited to police, public health and other services which

do not lend themselves to voluntary effort. His small _Manual of

Political Economy_, published in 1798, puts the economic case in a

nutshell: “With the view of causing an increase to take place in the

mass of national wealth, or with a view to increase the means either

of subsistence or enjoyment, without some special reason, the general

rule is, that nothing ought to be done or attempted by government. The

motto, or watchword of government on these occasions, ought to be--_Be

quiet_;... The request which agriculture, manufacturers, and commerce

present to governments, is modest and reasonable as that which Diogenes

made to Alexander: ‘_Stand out of my sunshine._’ We have no need of

favour--we require only a secure and open path.”

That Utilitarianism, Individualism, and Political Economy enjoyed so

long a reign, and even held sway at the Universities, was largely due

to the philosophy of John Stuart Mill, a very great man, who to all

his other gifts added a candour, rare in controversy, which secures

the confidence of the reader and makes him feel that he is not reading

propaganda but accompanying the author on a journey in search of truth.

Mill’s lucidity of thought and style helped to extend his influence,

and he soon took the place of Bentham as the leading exponent of

utilitarian Individualism. His virtues and unselfish public spirit

won him the title of “the Saint of Rationalism.” Among Mill’s books

_Political Economy_, _Representative Government_, and above all, _On

Liberty_, are the most important for our subject. They influenced, and

still influence, the views of intellectuals on the critical problem

of what should be the relationship under democratic institutions

between the people and their government. Mill’s analysis of the whole

subject provides a most valuable contribution to political and economic

science. There is a fine moral elevation of tone which lifts his

arguments and conclusions far above the level of mere party controversy

or the narrow and selfish interests of classes. The argument for free

speech and complete toleration, and for individual liberty in general,

has never been developed with such persuasive force as in Mill’s brief

but masterly treatise _On Liberty_. Among Mill’s contemporaries the

most brilliant of the writers who took part in this controversy was

Macaulay. There is no more crushing exposure in our literature of the

fallacies of State Socialism and of the theory that a government ought

to be extravagant and meddlesome than Macaulay’s essay on Southey’s

_Colloquies of Society_. It is worthy to be printed alongside Bastiat’s

unmasking of the French experiments in Communism.

The most powerful political force on the side of Individualism in

the middle years of the nineteenth century was, of course, the

Manchester School under the leadership of Cobden and Bright, supported

by economists like Henry Fawcett and Thorold Rogers. It was equally

opposed to Protectionism, Militarism and Socialism. With its support

Gladstone introduced a severe economy into all departments of State and

instituted the financial control of an efficient Treasury Department on

the principles already laid down by Sir Robert Peel.

Among the apostles of Individualism after the death of Cobden and

Mill were Herbert Spencer and his disciple Auberon Herbert. Herbert

Spencer’s _The Man versus the State_ is an effective pamphlet against

the Socialistic tendencies which began to permeate both the Liberal

and Conservative Parties in the ’Eighties and the ’Nineties of last

century. Among the politicians who aided this movement the most

conspicuous was Joseph Chamberlain. His Radical Programme was issued in

1885, and when he passed over to the Conservative Party he took with

him some of its items, including free education, which was carried by

Lord Salisbury’s Government.

Meanwhile, a Socialist Party was being gradually formed under such

leaders as Hyndman, Morris and Keir Hardie. In 1889 there appeared

the _Fabian Essays_, which won many converts to a moderate and

progressive type of Socialism. Its most brilliant exponent was Mr.

Bernard Shaw; but it owed even more to the researchful industry

and incessant activity of Mr. and Mrs. Sidney Webb. A little later

appeared Blatchford’s _Merrie England_, which caught the popular

fancy and helped to turn many working class Radicals into Socialists.

But it was not until the Great War, with all the terrible suffering

and economic loss which accompanied and followed it, that British

industry and capital were at last confronted with a strong Labour

Party and threatened by an active group of Communists who aimed at

the expropriation of property and at the Marxian ideal known as the

“Dictatorship of the Proletariat.” Since then Socialist propaganda has

been very active among the working classes, and a considerable section

of the British Press has been inclined to compromise with its proposals

rather than to meet them and counter them by the principles and

arguments of Individualism, opposing free competition and enterprise to

monopolistic combinations and bureaucratic red tape.

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