by Jesus Huerta de Soto
On pages 33–35 of my book Socialism, Economic Calculation, and Entrepreneurship, I examine the process by which the division of practical entrepreneurial
knowledge deepens "vertically" and expands "horizontally," a process
that permits (and at the same time requires) an increase in population,
fosters prosperity and general well-being, and brings about the
advancement of civilization. As I indicate there, this process is based
on
- the specialization of entrepreneurial creativity in increasingly narrow and more specific fields, and in increasing detail and depth;
-
the recognition of the private-property rights of the creative
entrepreneur to the fruits of his creative activity in each of these areas; - the free, voluntary exchange of the fruits of each human being's specialization, an exchange that is always mutually beneficial for all who participate in the market process; and
- constant growth in the human population, which makes it possible to entrepreneurially "occupy" and cultivate a rising number of new fields of creative entrepreneurial knowledge, which enriches everyone.
According to this analysis, anything that guarantees the private
ownership of what each person creates and contributes to the production
process, that defends the peaceful possession of what each person
conceives or discovers, and that facilitates (or does not impede)
voluntary exchanges (which are always mutually satisfactory in the sense
that they mean an improvement for each party) generates prosperity,
increases the population, and furthers the quantitative and qualitative
advancement of civilization. Likewise, any attack on the peaceful
possession of goods and on the property rights that pertain to them, any
coercive manipulation of the free process of voluntary exchange, in
short, any state intervention in a free market economy always brings
about undesired effects, stifles individual initiative, corrupts moral
and responsible behavior habits, makes the masses childish and
irresponsible, hastens the decline of the social fabric, consumes
accumulated wealth, and blocks the expansion of human population and the
advancement of civilization, while everywhere increasing poverty.
