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Judged by the course of events of the last century, rather by the avowed aim of Mill and Marx, there is much for reversing the stereotyped roles assigned to the two men. If collectivism ultimately triumphs over individualism, it will be in no small measure a result of the influence of the ideas first popularized and made respectable by Mill; whereas, if individualism ultimately triumphs, it will be in no small measure a result of the ultimate effects of the belief in revolutionary action to which Marx and Engels gave such vivid expression in the Manifesto…
The great defect of the Benthamite liberals among whom Mill grew up was the absence of any theory or doctrine of the positive role of the state in the organization of economic activity. Benthamism was at bottom a fervent belief in the possibility of improving the condition of mankind through legislative enactment devoted to achieving the “greatest happiness of the greatest number.” These central premises do not themselves prescribe any particular content for legislative action. They are, in strict logic, consistent equally with fargoing collectivism and paternalism or with the ”laissez faire” doctrines with which they were in fact combined. The acceptance of laissez faire as a guiding principle was far less the product of explicit analysis or comparison of any exhaustive set of alternatives[;] prohibited were largely assaults on person or property overwhelmingly regarded as clearly indefensible and the appropriate subject for punitive legislation. In this way, the success of laisses faire removed one of the chief factors responsible for the initial acceptance of laissez faire. By the end of John Mill’s life, the state was no longer what it was during his father’s or Bentham’s time—a corrupt, inefficient instrument whose enactments were widely held in low repute. It had become a relatively honest and efficient body, whose enactments were held in high esteem by the body politic.
The sweeping away of the hindrances to the free movement of men, goods, and capital was followed by the great improvements in economic well being. Yet there obviously remained much misery and poverty to which a passionate humanitarian like Mill could not remain blind. It was perhaps not unnatural that we was willing to sanction action by an honest and much improved state administration to redress grievances. He had no principles of state action by which to test proposals for reform. He was almost certain to minimize or reject entirely the argument—if it were made—that direct interference by the state would threaten that private liberty he prized so highly. For this argument conflicted with his deep, though naïve, belief in the perfectibility of human beings through education. Once men were educated, he believed, they would become not only wise but also good.--Milton Friedman (September 10, 1948) "Discussion of Paper by V.W. Bladen The Centenary of Marx and Mill" at The Eight Annual meeting of the Economic History Association. Hoover Institution, Collection Title: Milton Friedman papers Container: box 39. [HT David M. Levy]
Bladen's paper can be found here. Originally Friedman had been invited to comment on a paper on laisser faire by J. Bartlett Brebner (which was turned into an influential article: "Laissez Faire and State Intervention in Nineteenth-Century Britain." The Journal of Economic History, 8(S1), 59-73.) From the correspondence at Hoover it's unclear what prompted the move, but Bladen's paper was the opening and keynote to the conference, and Friedman did not object. The other commentator on the program is Elizabeth Schumpeter--the schedule adds in parenthesis: "Mrs. Joseph A." And it would be lovely to locate her comments.
Bladen was late sending Friedman his paper, and this may help account for the fact that much of Friedman's discussion reads as a riff on A.V. Dicey's (1905 [1914]) Law & Public Opinion rather than a detailed criticism of Bladen (although Friedman added a passage on trade unionism that clearly is critical of Bladen). Throughout Friedman's writings Dicey is an important source, not the least his better studied (1951) “Neo-Liberalism and its Prospects” Farmand, 17 February 1951, pp. 89-93 [recall this post] and his (1962) "Is a Free Society Stable?" New Individualist Review [recall here] some other time I will return to that. (The 1962 piece draws on themes from the manuscript I am discussing today.) And while in today's post 'Marx' is clickbait in the title, I will return to Friedman's comments on Marx, too. Okay, with that in place, let me turn to the text.
Friedman attributes to Dicey (1835 – 1922) a kind of road to serfdom thesis in which Mill's good intentions lead not just to the prevailing support for collectivism that Dicey diagnoses as the effect of Mill's writing at the end of the nineteenth century, but also that the collectivist reforms proposed by Mill would (now quoting Friedman) "seriously threaten political liberty" in virtue of the gradualism that Mill advocated and the tendency to attribute difficulties consequent intervention to the "defects of the price system." Crucially, for Friedman it's the historical experience of Marx's effect on the Russian revolution that halts the English road to serfdom.
Now, in his analysis Friedman ignores the role of imperialism, and the opportunities for rents this provided, in changing the political culture of nineteenth century liberalism. Hobson, for example, argued that this undermined the pacific, free trade coalition. And while Dicey has less nostalgia for this coalition, he concurs with Hobson's diagnosis. {Of course, given Mill's own advocacy for a civilizational mission of British imperialism, it's not as if this lets Mill off the hook.} It is worth noting that Dicey thinks that imperialism (and high taxation that is the effect of it) may well have slowed the road to serfdom process that Friedman attributes to him (see, especially, the 1914 introduction to the second edition, and chapter XII).
It's a bit odd that Friedman misses the significance of (financial and military procurement) rents to imperialism. Because earlier, in describing the rise of laissez faire, Friedman argues in a public choice vein, that “The Benthamites devoted much attention to improving public administration. Their success in this connection was as great as in establishing a large measure of laissez faire, and the two achievements are not of course unrelated. The establishment of laissez fair enormously reduced the benefits which civil servants could confer on private individuals and greatly lessened the incentive or opportunity to break laws.”
As an important aside, I am pretty confident that Friedman had read Hayek's Road to Serfdom by 1948. And there is no sign in his 1948 argument that he is as critical of Hayek in the way that his later use of Dicey in 1962 suggests (recall here).
What's neat about the material I have quoted above is that according to Friedman the key defect in Mill's political economy is that "he had no principles of state action by which to test proposals for reform." That is, the central problem that Mill faces in using state action to ameliorate the plight of the poor and miserable, is that according to Friedman Mill lacks -- and now I am using terminology common to Mill, J.N. Keynes, Friedman, and Foucault -- an art of government.
In fact, (recall) we know from his correspondence with Stigler (Hammond & Hammond) that by 1948 Friedman had started working on his (1953) "Methodology of Positive Economics" paper that uses that very terminology. And that Friedman ends up echoing Mill by treating the art of economics as dependent on empirical science. For it’s this science that provides the knowledge that constitute at least part of the rules of how one gets from given ends to proper outcomes. That is, the dependence of the art on positive science is epistemic in character. And so lurking here is a more fundamental (Marshallian) criticism of not just Mill's art of government, but his political economy more generally one that attributes to Mill a kind of violation of a do no harm principle in political life. To be continued.
First of all, it is important to recognize that the basic liberties must be assessed as a whole, as one system. That is, the worth of one liberty normally depends upon the specification of the other liberties, and this must be taken into account in framing a constitution and in legislation generally. While it is by and large true that a greater liberty is preferable, this holds primarily for the system of liberty as a whole, and not for each particular liberty. Clearly when the liberties are left unrestricted they collide with one another. To illustrate by an obvious example, certain rules of order are necessary for intelligent and profitable discussion. Without the acceptance of reasonable procedures of inquiry and debate, freedom of speech loses its value. It is essential in this case to distinguish between rules of order and rules restricting the content of speech. While rules of order limit our freedom, since we cannot speak whenever we please, they are required to gain the benefits of this liberty. Thus the delegates to a constitutional convention, or the members of the legislature, must decide how the various liberties are to be specified so as to yield the best total system of equal liberty. They have to balance one liberty against another. --John Rawls A Theory of Justice, p. 203. {Emphasis added--ES}
At one point, in his marvelous (1989) Hayek and Modern Liberalism, Chandran Kukathas quotes from Rawls' A Theory of Justice in order to illuminate the point that "conflicts among different pursuers of values are best regulated according to principles which respect (the right to) liberty." (p. 147) Kukathas quotes the part I have highlighted and italicized. I want to call this part Rawls' "ordered conception of free speech" stance. (One might also call it 'the rule governed conception of free speech' or the 'transcendental conception of free speech' etc.) And its that highlighted and italicized material that triggered this post.
While Rawls goes on to discuss Mill's On Liberty in the next sections (on freedom of conscience), he does not comment on the fact that the ordered conception of free speech is at variance with the more tumultuous conception of free speech that is usually ascribed to On Liberty. I put it like that because I don't want to perpetuate the error that Mill holds 'a free market in ideas that will lead to truth view' although the marketplace of ideas view is even more frequently (and, as Jill Gordon persuasively argues, mistakenly) attributed to Mill (recall this post); recall also see, for example, here; here, and here.)
One reason to call it Rawls' account an 'ordered conception' of speech is that the value he ascribes to it is articulated in functional terms. One might say that for Rawls the intelligibility of freedom of speech presupposes that it has a certain function namely to produce 'intelligent and profitable' speech (which he may have inherited from Knight--see the second picture). Leaving aside the elitist commitments on display here (and, if one wishes, the generosity toward profit if we read him over-literally), lots of emotionally significant expressive speech clearly is not like that even if it falls short of the vituperative speech that Mill worries about. In fact, this contrast between expression and discussion is explicit on p. 346 in Frank Knight's treatment of some such contrast, and is one of the heavily annotated passages in Rawls' copy of The Ethics of Competition.*
The following is from p. 352 in Knight:
Now, before I continue, I do not want to claim that Rawls thinks governments have very broad scope to regulate speech to make it 'intelligent and profitable' or to promote the ordered conception. He may well also believe that this would be imprudent or, that the enforcement of speech restrictions, would generate concerns about violations of other liberties (privacy, assembly, freedom of conscience, etc.). And he may also think that when the government regulates speech it really is interested in content and not order (and so cannot be trusted to get this right). In fact, in A Theory of Justice Rawls is by and large not that interested in freedom of speech. But one can see why the functional significance of the ordered conception lends itself well to the rather extensive speech restrictions (in selling financial instruments, in selling pharmaceuticals, in selling tobacco, etc. ) which are quite common in the contemporary administrative state (and often ignored in recent public debates over woke and freedom of speech).
As an aside, I don't mean to satirize the ordered conception of speech. It clearly has debts to Knight's and Buchanan's diverging conceptualizations of liberalism as involving "democracy as government by discussion" that was, as I have suggested above, have been familiar to Rawls. (I also think one can extract the ordered conception from Mill's writings on representation.) I am myself not immune to the pull of the ordered conception of speech in some contexts. For example, it informs my own views on academic freedom which fundamentally involves ordered speech of different kinds (in journals, the seminar room, etc.) I also tend to suspect (echoing Iris Marion Young) that advocates of deliberative democracy and (closer to Rawls' own heart) public reason tend to be (dangerously) enthralled by the ordered conception of speech.
Be that as it may, if one works with the revised (1990) edition of A Theory of Justice, the ordered conception is less pronounced. In fact, the passage is re-written in non trivial ways. Among the most significant changes, the revised version of the passage removes 'intelligent and profitable" and the distinction between rules of order and rules on content altogether:
First of all, one must keep in mind that the basic liberties are to be assessed as a whole, as one system. The worth of one such liberty normally depends upon the specification of the other liberties. Second, I assume that under reasonably favorable conditions there is always a way of defining these liberties so that the most central applications of each can be simultaneously secured and the most fundamental interests protected. Or at least that this is possible provided the two principles and their associated priorities are consistently adhered to. Finally, given such a specification of the basic liberties, it is assumed to be clear for the most part whether an institution or law actually restricts a basic liberty or merely regulates it. For example, certain rules of order are necessary for regulating discussion; without the acceptance of reasonable procedures of inquiry and debate, freedom of speech loses its value. On the other hand, a prohibition against holding or arguing for certain religious, moral, or political views is a restriction of liberty and must be judged accordingly. Thus as delegates in a constitutional convention, or as members of a legislature, the parties must decide how the various liberties are to be specified so as to give the best total system of liberty. They must note the distinction between regulation and restriction, but at many points they will have to balance one basic liberty against another; for example, freedom of speech against the right to a fair trial. The best arrangement of the several liberties depends upon the totality of limitations to which they are subject.--John Rawls A Theory of Justice, Revised edition, p. 178. {emphasis added--ES}
I suspect part of the change of wording is due to that it is easy to abuse a purported restriction on order as a restriction on content. For, while officially dropping the distinction, the revised version leans into denying the government any significant content restrictions, by adding the point that "a prohibition against holding or arguing for certain religious, moral, or political views is a restriction of liberty." But as the highlighted part suggests, even so, the crucial element of the ordered conception of speech does remain in the revised version.
Let me close with a sociological observation. Despite the fact that advocates of public reason and deliberative democracy, which lean heavily on conceptions of ordered speech, have thriving research programs (and the former is very indebted to Rawls), it is safe to say that Rawls' conception of freedom of speech has not been as influential as other parts of his project. I have three kinds of evidence for this claim: first, in Katrina Forrester's In the Shadow of Justice, freedom of speech barely figures. (Of course, civil disobedience does!) Second, the emphasized and italicized parts of the passages are quoted very rarely in the secondary literature (although I found it in a few dissertations especially). Third, it is my perception that in scholarly and more public intellectual discussions of free speech, Rawls' shadow has not, displaced Mill. Obviously my perception counts for nothing, but I would be amazed if data crunchers could show otherwise.
*PS After reading an earlier draft of the post, David M. Levy was kind enough to share some marking up of Rawls' personal copy of Knight's The Ethics of Competition (which has Knight's earliest use of 'government by discussion' as I learned from the paper by Ross Emmett linked above). The fact that Knight treats the rules of discussion as game is important evidence for Forrester's argument on the early Rawls' interest in what is now known as neoliberalism. For some other salient to the present post's passages see these pix:
From p. 343:
In contrast to these older forms, modern bureaucracy has one characteristic which makes its inescapability much more definite: rational specialization and training. The Chinese mandarin was not a specialist but a gentleman with a literary and humanistic education. The Egyptian, Late Roman or Byzantine official was much more of a bureaucrat in our sense of the word. But compared to the modern tasks, his were infinitely simple and limited; his attitude was in part tradition-bound, in part patriarchally, that means, irrationally oriented. Like the businessman of the past, he was a pure empiricist. The modern official receives a professional training, which unavoidably increases, corresponding to the rational technology of modern life. . . . Whenever the modern specialized official comes to predominate, his power proves practically indestructible since the whole organization of elementary want satisfaction has been tailored to his mode of operation. A progressive elimination of private capitalism is theoretically conceivable. . . . What would be the practical result? The destruction of the steel frame of modern industrial work? No! The abolition of private capitalism would simply mean that the management of the nationalized or socialized enterprises would become bureaucratic. Are the daily working conditions of the salaried employees and the workers in the state-owned Prussian mines and railroads perceptibly different from those in big business enterprises? In truth, there is even less freedom since every struggle against a state bureaucracy is hopeless and since, in principle, nobody can appeal to an agency which would be interested in limiting it, contrary to what is possible in relation to a private enterprise. That would be the whole difference.
State bureaucracy would rule alone. The private and public bureaucracies which now work next to, and potentially against, each other and hence check one another to a degree would be merged into a single hierarchy. This would be similar to the situation in ancient Egypt, but it would occur in a much more rational and inescapable form.--Max Weber (1917) excerpted in State and Society: A Reader in Comparative Political Sociology, edited by R. Bendix, p. 301-302.
Richard Bellamy partially quotes the passage on p, 193 in his excellent (1992) Liberalism and Modern Society: A Historical Argument in his chapter on Max Weber. (Recall my more critical post here.) While Bellamy's book is not obscure it is somewhat unfairly rarely mentioned in the contemporary revival of so-called 'political realism.' The chapter on Weber and the critique of late twentieth century what he calls "neutralist liberalism" are both very nicely done and repay close reading. My favorite feature of Bellamy's book -- and the aspect that has not lost any significance at all -- is Bellamy's close attention to liberal thought in the context where survival of liberalism cannot be taken for granted (something true, I hasten to add, of liberalism everywhere and at all times).
Bellamy quotes the passage from Weber in the context of explaining Weber's views on the significance of the balancing of counter-veiling bureaucracies in industry and state in the service of Weber's larger argument against a fully planned economy. And it shows how prescient Weber was relative to Marxist revolutions to come. But also, that after the first world war, as well as the development of the cartelization of the German economy (something Lenin had also commented on), Europeans had already sufficient experience with the nature of (at least partially) planned economies to understand some of its structural political and economic weaknesses. I return to that below.
It is kind of amusing - in light of the recurring tendency in our philosophical self-understanding to treat empiricism as something noble and sophisticated -- that Weber identifies 'pure empiricism' with a kind of irrational orientation toward reality to be contrasted with a (modern) skilled control over one's environment in the context of the advanced division of labor (and rule-following). To what degree his comparative account of bureaucracy can survive scholarly scrutiny I leave to others. But it is important to see that for Weber modernity is characterized by the omni-presence of bureaucratic organization. It is an interesting question to what degree modern information technologies allow for a de-skilling of the bureaucracy (in the private and public sectors).
Now, in the quoted passage, Weber clearly anticipates Burnham's thesis defended in the Managerial Revolution (and in a different way, Galbraith). I don't recall Burnham crediting Weber. I don't mean to suggest that Burnham plagiarized Weber; it's pretty clear that they were both familiar with Mosca, Pareto, and Michels (who work through related ideas). But Weber turns their diagnoses into an argument for maintaining the market as a site of countervailing powers. And this anticipates the ORDO-liberals' emphasis that while power in the marketplace is dangerous (and certainly to be guarded against) it can also be a partial check on state power (even if it also increases danger of rent-seeking). I don't think these passages suggest that Weber 'idealized capitalist relations to a certain extent' (a partial concession Bellamy makes to a criticism by Marcuse) because Weber's analysis relies on a kind of 'least bad' style argument.
Thus, Weber grasps -- and again this makes his analysis all the more salient today -- that relatively unchallenged and unaccountable rule by technically sophisticated administrators can itself be a species of despotism (which anticipates, again, the Hayekian attack on Saint Simonism as much as it does Graeber & Wengrow). And part of the despotic nature of pure rule by the technically sophisticated bureaucrat is that she does so in the name of, and drawing on, rationality. And it is incredibly difficult to oppose reason without looking and becoming irrational. (This is all the worse if the reason the bureaucrat is instantiating understands itself as ethical.) Again, this is all quite prescient.
Interestingly enough, Weber does not slide into conservatism (away from liberalism) and the valorization of elite rule (familiar from Burnham and his followers), but rather -- as Bellamy emphasizes --, into thinking about the ways in which institutions and procedures can redistribute power and to allow for at least a "plurality of competing values in society" (Bellamy 1992: 216). That is, such plurality of competing values is both an effect of the advanced division of labor and competing interests and, in turn, a means to check any ideal from becoming an oppressive ideology. Rather than, for example, promoting a marketplace of ideas as a means toward consensus/truth, the marketplace of ideas becomes another vehicle for permanent disagreement (anticipating Mouffe and Berlin to some degree) and a check on power that presents itself as truth. This is, of course, Foucault's great theme.*
*And so helps explain why, as Colin Gordon has emphasized, Foucault is one of Weber's greatest students (and both students of Nietzsche).
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