We have allowed our lives to be taken over and monopolized by variety of political, religious, educational, economics, and social agencies over which we have little, if any, influence. These entities have helped us to construct the barriers that not only restrain us, but keep us separated from one another and serve as the boundary lines for the intergroup struggles of which we are a part. Through these groupings, we have helped to institutionalize conflict, to make it a seemingly permanent and necessary feature of human society.
American author and law professor (1935–2019)
Butler D. Shaffer (January 12, 1935 – December 29, 2019) was an American author, law professor and speaker, known for his numerous libertarian books and blog articles for LewRockwell.com.
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For our world to be predictable and controllable, it must be mechanistic and linear in nature. But, the illusions of the behaviorists to the contrary notwithstanding, there is nothing less mechanistic and linear in nature than the human mind, whose intricacies and capacities have yet to be matched by even the most sophisticated computers.
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During the years 1918-38, notions of economic autonomy and self-regulating market behavior confronted the forces of industrial concentration. Free competition-with attendant low prices and aggressive trade practices—was identified with the older, unstructured forms of organization characterized by smaller, self-governing business firms. An unrestrained marketplace brought with it the specter of incessant change, a condition that was unacceptable to those charged with the responsibilities of managing and preserving the assets and market positions of business organizations. In the confrontation between ‘individualism’ and ‘instituti6nalism,’ competition came to be identified with the decentralized, unstructured practices representing the past. Individual self-interest, with its decentralizing tendencies, had to be suppressed in favor of the emerging institutional order. The attack on autonomy was a defense of the new order: the institutionally dominant, centrally directed, collective society.
Those who do not understand the Amish often imagine that their resistance to new technologies arises from a sense of ‘evil’ they see in such tools. But this is not the case. The Amish do employ tools, but if someone wants to consider bringing a new technology into the community, the Amish study it with this thought in mind: will acceptance of this technology make us dependent upon the external world, such that we will be tempted to change our ways? An automobile, for instance, would make the Amish have to rely on parts manufacturers, tire and battery sellers, and petroleum companies to keep it operative.
We delude ourselves with the beliefs that the establish order suffers from only from policy or style defects, and that the new leadership or legislation or organization reforms are sufficient to overcome any problems. We can tinker with the machinery, but dare not think of doing without it. We may be willing to believe that the emperor is naked, but certainly not the empire itself.
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Because we fear the responsibility for our actions, we have allowed ourselves to develop the mentality of slaves. Contrary to the stirring sentiments of the Declaration of Independence, we now pledge ‘our Lives, our Fortunes and our sacred Honor’ not to one another for our mutual protection, but to the state, whose actions continue to exploit, despoil, and destroy us.
The problem with all of this, as historians advise us, is that the institutionalization of the systems that produce the values upon which a civilization depends, ultimately bring about the destruction of that civilization. Arnold Toynbee observed that a civilization begins to break down when there is ‘a loss of creative power in the souls of creative individuals,’ and, in time, the ‘differentiation and diversity’ that characterized a dynamic civilization, is replaced by ‘a tendency towards standardization and uniformity.’ The emergence of a ‘universal state,’ and increased militarism, represent later stages in the disintegration of a civilization.
We offset the pursuit of our well-being with notions of altruism, and temper our happiness with feelings of guilt. In the vernacular of pop psychology, we speak of being ‘self-alienated’ people who have learned to reject our very selves. Whatever other advantages flow to us from our institutionalized world, the personal disadvantages carry a prohibitive price tag.
To Toto fell the task of exposing the humbuggery that manipulated both the institutional machinery and followers. Because he did not share his companions’ trembling reverence for established wizardry, this free-spirited, tagalong mutt was able to approach the screen that separated the leaders from the followers. In knocking over that screen, however, Toto did far more than simply reveal the systematic bamboozlement of the Ozians. He also made it possible for his companions to discover that the personal qualities they had labored to earn as institutionally-bestowed rewards, were qualities that had always been within themselves. In believing that the virtues they sought lay outside themselves, and that some institutional alchemy could convert their leaden instincts to golden conduct (to paraphrase Herbert Spencer), they had set themselves up to be manipulated and exploited for the benefit of institutional interests.
Businessmen came to embrace the industrial theology of ‘responsibility,’ and learned a new set of cartelizing catechisms. The campaign to reform trade practices and promote ‘fair’ competition had little, if anything, to do with business ethics, efficiency, ‘justice,’ ‘fairness,’ the elimination of waste, or any of the other rationalizations employed on behalf of ‘industrial self-rule.’ It was, instead, part of a strategy designed to secure the political supervision indispensable to the group domination of industry members. Only in the structuring of economic behavior, it came to be thought, could the status quo be maintained against the inconstancies and uncertainties of the marketplace.
The belief that order must be intentionally generated and imposed upon society by institutional authorities continues to prevail. This centrally-directed model is premised upon what F.A. Hayek called ‘the fatal conceit,’ namely, the proposition ‘that man is able to shape the world according to his wishes,’ or what David Ehrenfeld labeled ‘the arrogance of humanism.’ That such practices have usually failed to produce their anticipated results has generally led not to a questioning of the model itself, but to the conclusion that failed policies have suffered only from inadequate leadership, or a lack of sufficient information, or a failure to better articulate rules. Once such deficiencies have been remedied, it has been supposed, new programs can be implemented which, reflective of this mechanistic outlook, will permit government officials to ‘fine tune’ or ‘jump start’ the economy, or ‘grow’ jobs, or produce a ‘quick fix’ for the ailing government school system.
The 1920s are part of that critical period discussed by the historian James Gilbert in his study of the development of collectivist thinking, a phenomenon he relates to the emergence of ‘a new industrial civilization in which the giant business organization was the dominant force.’ As Gilbert has demonstrated, the architects of twentieth century American collectivism had patterned their ideas on the industrial corporation as the central organizational tool. Any form of collectivism is, after all, ‘conservative’ in nature, being premised on the establishment of static, rigidly structured social relationships designed to restrain any influences that would pose the threat of substantial change. A symbiotic relationship thus developed between the forces of "social reform" and those advocating the conservation of existing economic institutions and relationships. In twentieth-century ‘ liberalism, declared the historian James Weinstein, many business leaders saw ‘a means of securing the existing social order.’
Firms with established market positions wanted to reduce the impact of such competition and employed voluntary methods (such as mergers, pooling, trade association ‘codes of ethics,’ and other agreements) in efforts to stabilize competitive relationships. When such voluntary means failed due to lack of effective enforcement, influential corporate leaders, having found a condition of unrestrained competition and decision-making unacceptable to their interests, helped promote the enactment of legal restraints upon trade practices.