Insofar as John Stuart Mill can be accurately described as a socialist, his is a socialism that a classical liberal ought to be able to live with, if not to love. Mill's view is that capitalist economies should at some point undergo a `spontaneous' and incremental process of socialization, involving the formation of worker-controlled `socialistic' enterprises through either the transformation of `capitalistic' enterprises or creation de novo. This process would entail few violations of core libertarian principles. It would proceed by (...) way of a series of voluntary transactions. Capitalists' property rights would be respected throughout. The process would take place within a national system of laws that permits private ownership of productive property and competition, and would not result in that system's overthrow. And, if we accept some basic tenets of Mill's social philosophy, the outcome at which we should expect the process to arrive is a `patchwork' economy in which capitalistic and socialistic enterprises exist side by side. Key Words: Ludwig von Mises • John Stuart Mill • socialism • capitalism • worker control. (shrink)

John Stuart Mill argued, in hisPrinciples of Political Economy(1848, 7th edn., 1871), that existing laws and customs of private property ought to be reformed to promote a far more egalitarian form of capitalism than hitherto observed anywhere. He went on to suggest that such an ideal capitalism might evolve spontaneously into a decentralized socialism involving a market system of competing worker co-operatives. That possibility of market socialism emerged only as the working classes gradually developed the intellectual and moral qualities required (...) for worker co-operatives to succeed against private firms. Workers would tend to reject the hierarchical wage relation as they developed the requisite personal qualities, he believed, and capitalists, facing escalating wages for skilled labour as a result of the diminishing supply of high-quality workers for hire, would tend to lend their capital to the worker co-operatives ‘at a diminishing rate of interest, and at last, perhaps, even to exchange their capital for terminable annuities. In this or some such mode’, he speculated, ‘the existing accumulations of capital might honestly, and by a kind of spontaneous process, become in the end the joint property of all who participate in their productive employment: a transformation which, thus effected, (and assuming of course that both sexes participate equally in the rights and in the government of the association) would be the nearest approach to social justice, and the most beneficial ordering of industrial affairs for the universal good, which it is possible at present to foresee.’. (shrink)

The role of the ‘ideal’ in political philosophy is currently much discussed. These debates cast useful light on Mill's self-designation as ‘under the general designation of Socialist’. Considering Mill's assessment of potential property-relations on the grounds of their desirability, feasibility and ‘accessibility’ (disambiguated as ‘immediate-availability’, ‘eventual-availability’ and ‘conceivable-availability’) shows us not only how desirable and feasible he thought ‘utopian’ socialist schemes were, but which options we should implement. This, coupled with Mill's belief that a socialist ideal should guide social reforms (...) (as the North Star guides mariners), reveals much more clearly the extent of his socialist commitments (even if he thought political economists would be concerned with forms of individual property for some time to come). Moreover, this framework for assessments of ‘ideal’ institutions makes a useful contribution to an ongoing contemporary debate. (shrink)