One very nice feature of Quinn Slobodian's Globalists: The End of Empire and the Birth of Neoliberalism is that he has keen eye for the way Austrian economics and Ordoliberalism helped shape international institutions and international law in the era we often lazily call 'Bretton Woods' and then mistakenly associate exclusively with Keynes and Keynesianism. Rather than seeing Austrian economics and the ORDOs as the opposition, waiting with Monetarism for stagflation in order to get a hearing, they are, correctly, re-inscribed into the shaping of the world we have inherited. And he, thereby, also helps recall the significance of figures like Gottfried Haberler (who are otherwise overshadowed in the popular imagination by the Hayeks and Milton Friedmans of the world.)
Last week, in the British Library reading room, while I wanted to check a copy of Schumpeter's Capitalism, Socialism, and Democracy, I accidentally called up Gottfried Haberler's Schumpeter's Capitalism, Socialism and Democracy after Forty Years (American Enterprise Institute, 1981). The volume was edited by Mutsumi Okada, who seems to have published it (but does not get credit for it anywhere, which is why I mention it here).
In the context of discussing Schumpeter's attitude toward Marx, Haberler (1900–1995) notes that "Schumpeter had developed his own theory of imperialism as early as 1919 in an article, "The Sociology of Imperialism." There [Schumpeter] describes the phenomenon of imperialism as "'objectless' tendencies toward forcible expansion, without definite, utilitarian limits -- that is non-rational and irrational, purely instinctual inclinations toward war and conquest" that have played "a very large role in the history of mankind. It may sound paradoxical, but numberless wars -- perhaps the majority of all wars -- have been waged without adequate 'reason'--not so much from a moral viewpoint as from that of reasoned and reasonable interest."* Since Schumpeter is clearly familiar with Hobson's evidence that modern imperialism is profitable for well-connected some, one may well wonder why he wishes to emphasize the instinctual.
The quote is from the English translation published in Imperialism and Social Classes translated by Heinz Norden. This was published in 1951. In an accompanying footnote, Haberler cites p. 83. Unfortunately, I only have access to a reprint from 1966 (which reproduced the 1955 edition). There it's on p. 64 at the start of the section on "Imperialism and Capitalism." As an aside, in the translation the title of Schumpeter's essay is in the plural ("The Sociology of Imperialism"), as it is in the original German (imperialismen) whereas Haberler has the singular 'imperialism.'
That wars often lack adequate reason from the perspective of interest does not mean that they are without explanation. In the essay, Schumpeter himself goes on to explain that there are atavistic dispositions and structures, especially among the aristocratic elites, which do provide such an explanation. Haberler seems to ignore this. But in the accompanying footnote (in which Haberler gives the page-number) Haberler adds the following. "A beautiful example from antiquity of "objectless" conquest is reported in Plutarch's Lives:" Haberler then offers a mix of summary and quote:
King Pyrrhus, of Epirus, had a trusted advisor, "A certain Cineas, a man...of great wisdom" who tried to restrain his monarch. When Cineas noted that Pyrrhus made preperations to attack Rome, he started a conversation: "The Romans, O Pyrrhus, are said to be good fighters, and to be rulers of many warlike nations; if, then, Heaven should permit us to conquer these men, how should we use our victory?" Pyrrhus replied: Thy question, O Cineas, really needs no answer; the Romans once conquered, there is neither barbarian nor Greek city there which is a match for us, but we shall at once possess all Italy." After which Cineas said: "And after taing Italy, O King, what are we do to?" And Pyrrhus said: "Sicily is near, and holds out her hands to us, an island abounding in wealth and men, and very easy to capture..." "What thou sayest, replied Cineas, "is probably true; but will our expedition stop with the taking of Sicily?" Pyrrhus replied: "Who could keep his hands off Libya, or Carthage, when that city got within his reach...? And we have become masters here, no one of the enemies who now treat us with scorn will offer further resistance; there is no need of saying that." "None whatever," said Cineas, but "when we have got everything subject to us, what are we going to do?" Pyrrhus smiled and said: "We have a good time, will drink bumpers every day." And now that Cimeas had brought Pyrrhus to this point he said: "Then what stands in our way now if we want to drink bumpers...? Surely this privilege is ours already, and we have at hand, without taking any trouble, those things to which we hope to attain by bloodshed and great toils and perils, after doing much harm to others and suffering much ourselves. Why not have the good times now?" Plutarch comments: "By this reasoning of Cineas, Pyrrhus was more troubled than he was converted." He attacked any way, and defeated the Romans in a famous battle, his last victory--which ever since has been known as the Pyrrhic victory.**
The footnote takes up nearly two pages in Haberler's slim volume (which runs to under 60 pages). I had to look up what a 'bumper' is--it seems to be a cup filled to the brim.
Now, as readers of Smith's The Theory of Moral Sentiments (TMS) and my own regular readers know (recall here), Smith uses the very same passage from Plutarch in Part 3 of TMS. And in that post I trace the anti-imperialist provenance of the Cineas story But in Smith, Cineas' name goes unmentioned (he's just called the King's 'favorite'), and the point is not to illustrate "objectless" conquest, but rather to illustrate what I have called the axiom of status quo bias, that is, "Wherever prudence does not direct, wherever justice does not permit, the attempt to change our situation, the man who does attempt it, plays at the most unequal of all games of hazard, and stakes every thing against scarce any thing."
Now, it's probably possible to concoct a chain of reasoning such that the axiom of status quo bias is always presupposed in objectless conquest. After all, the absence of prudence may well entail objectless action. But I was struck that the same anecdote illustrates different kinds of things (a kind of principle of decision-making vs a kind of social phenomenon). In addition, in Smith the axiom of status quo bias links up with a more general anti-militarism whereas in this context, Haberler's Schumpeter at least allows some wars of conquest if they can pass a kind of cost-benefit analysis (if they are 'utilitarian').
When Smith concludes his version of the anecdote, he adds the claim: "In the most glittering and exalted situation that our idle fancy can hold out to us, the pleasures from which we propose to derive our real happiness, are almost always the same with those which, in our actual, though humble station, we have at all times at hand, and in our power." Smith here, as elsewhere, is not a subjectivist about happiness. And the passage also links up to his more general concern that our imagination tends delude us about how we might experience possible outcomes (and that we are especially biased by the aesthetic spectacle the rich and powerful present). We often chase fantastic possibilities while we disdain available solid pleasures (and this mistake creates civilization with the arts and sciences and economic growth as we know it).
Smith here partially echoes Plutarch. For just before the anecdote with Cineas we learn that the King of Epirus disdains idleness and actually grows sick from lack of adventure. And both Pyrrhus and his citizens are inspired into military action by the gifts and promises they receive from the war-party in Tarentum (which needs their military aid to hold off the Romans).
But Plutarch himself offers a subtly different moral to the story which can be seen if we quote the full sentence that Haberler only partially quotes: "By this reasoning of Cineas Pyrrhus was more troubled than he was converted; he saw plainly what great happiness he was leaving behind him, but was unable to renounce his hopes of what he eagerly desired." Now, whatever Pyrrhus desired military glory or adventure (or both), it's noticeable that in Plutarch Pyrrhus becomes a kind of exemplar of akratic action. A life of great happiness holds little allure for him, and despite having it in hand he is willing to throw it away for adventure (or glory).
Perhaps, we are also meant to see a kind of practical irrationality in Pyrrhus where certain happiness is foregone for a path with uncertain outcomes. Obviously, if we care about rationality it matters greatly if we decide that what Pyrrhus really wants is not glory (which is very uncertain), but adventure (which is pretty certain). In the latter case Pyrrhus is not irrational (playing "at the most unequal of all games of hazard") but simply revealing his true preferences.
I don't mean to suggest Haberler is all wrong here about using Plutarch to convey Schumpeter's idea. One can treat Cineas as representing the pacific values of the market-place with his eloquence (which lands him a reputation for great wisdom), and Pyrrhus represents aristocratic warrior values. And from the vantage point of the market-place, Pyrrhus' actions are not just in violation of justice, but objectless and atavistic. It is no surprise that economists would treat the aristocratic warrior values as atavistic. But one need not be Huizinga to recognize that playing "at the most unequal of all games of hazard" and staking "every thing against scarce any thing" can, in the right circumstances, have an attraction of its own, Dutch books be damned.
Recent Comments