The Freeman 1972 - The Ludwig von Mises Institute

1972 ARE WE MARXIANS NOW? 459cantilism and nationalism. Thespirit of capitalism with its concernfor individual freedom andprivate property, which shapedBritish foreign policie·s during thenineteenth century, completelytransformed colonial possessions.The British overseas settlers becamevirtually independent - enjoyinga dominion status. All otherterritories dependent on Britishrule were governed according to"open-door" principles. The BritishEmpire was R'vast free-tradearea in which the government undertookonly to maintain law andorder.Laissez FaireCapitalism is the system of individualfreedom and private propertyin production as well as consumption.In both domestic andforeign affairs it implies laissezfaire, which means free trade andan open-door policy that welcomeseveryone and discriminates againstno one. The exploitation of colonialpossessions is inconsistent withthe concepts of competitive privateenterprise and voluntary exchange.An American or Europeanbusiness that invests its capitalin an underdeveloped countrydoes not exploit the natives. Capitalinvestments anywhere raiselabor productivity and consequentlywages. The United Fruit Company,for instance, did not enslavethe people of Latin Americaby creating plantations in wilderness.On the contrary, it raisednative productivity and improvedworking conditions.And yet, most Americans areconvinced that European colonialismis responsible for world povertyand upheaval. Why elsewould the U.S. Government havehelped to liquidate European influencein all corners of the worldand sanction and support revolutionarymovements? Even today itstrongly opposes the white administrationsof Portuguese Africa,Rhodesia and South Africa. ManyAmericans even approve of theconfiscation or nationalization ofprivate enterprises by the governmentsof newly independent countries.They agree with the Marxiansthe world over that. a sovereignstate can legally seize andconfiscate any foreign enterprisein disregard of valid contractsand agreements. This is why thenew states in Africa and Asia canseize and destroy huge Europeaninvestments with impunity. AndFidel Castro could seize more thanone billion dollars of Americaninvestments.During the eighteenth and nineteenthcenturies most Americanswere conscious of the naturalrights of individuals, and thereforebelieved in an idea of statesovereignty that was severely lim-