In 1792, Thomas Paine sounded a cautionary note about the economics of empire: The most unprofitable of all commerce is that connected with foreign dominion. To a few individuals it may be beneficial, merely because it is commerce; but to the nation it is a loss. The expense of maintaining dominion more than absorbs the profit of any trade.1 Had Americans consistently heeded Paine’s advice, the United States might have avoided much of the overseas bloodshed, as well as domestic bureaucratization, (...) which have accompanied the creation of the American empire. (shrink)

SummaryThis article deals with laissez faire arguments as distinguishable in Europe between the final decades of the nineteenth century and 1914. The focus is on Herbert Spencer and the British ‘Individualists’, the Italian Vilfredo Pareto, and the Frenchman Paul Leroy-Beaulieu. Analysis concentrates on the relationship between laissez faire formulations and democracy, the latter amounting to the impact of the extension of the franchise on representative government. All the mentioned authors blamed the mechanisms of democratic government for the contemporary growth in (...) state functions. While Spencer focused on the threat of a new class legislation after the demise of aristocratic power, Pareto and Leroy-Beaulieu viewed the pressure of lobbies and parties as the chief cause of the extension of state interventions. This article also aims to detect similarities and differences with more recent formulations. It is argued that Friedrich Hayek's achievement was to reconcile, against earlier perspectives, laissez faire with democracy. The reconciliation rested on a conceptualisation of democracy as a valuable method or procedure, onto which no values should be grafted. (shrink)