MAIN IDEA:

Old Liberalism was a great intellectual break through in history of humanity, which brought in free markets, expanded division of labor, provided economic support for political freedoms, and dramatically improved quality of life for everybody.

Unfortunately intellectual forces of Socialism and Etatism, which lulled masses into believe that they could be much better off with big government, defeated Old Liberalism. This book is a very detailed analysis of Germany’s case when Etatism in form of National Socialism took over society as whole and brought it into unwinnable war against whole world.

The Germany is only one case of many when Etatism takes society over and proceeds by destroying wealth, freedom, overall quality of live, and often lots of lives. The future is bleak because masses do not have intellectual capacity to understand economics and readily buy into cheap Etatist solutions to they problems even if these solutions do not work. There is nothing inevitable in this development and the fate of humanity still can turn out to be better, but only if masses become enlightened enough to through away all forms of Etatism and Socialism and embrace free markets and Capitalism.

DETAILS:

Introduction

It starts with characteristic of German Nazi party and its program as Labor imperialism based on Marxist ideology. The idea is that resources, especially lands are limited and nations had to fight for them. The winner (which obviously should be German nation) will control more land and use losers as slaves to work on it. This and many other similar ideas come from movement of people away from free market and capitalist economy to Etatism when government more and more takes over economy. Such intervention means expansion of violent resource transfer between individuals within country which substitutes free resource exchange. Correspondingly when extended outside of country, it means violent resource transfer between nations = war of conquest. That is exactly what Germany did during WWII.

PART I: The Collapse of German Liberalism

CHAPTER I. German Liberalism

1. The Ancient Regime and Liberalism

Germany was late in transfer from Ancient regime of King to liberal regime of people, human rights and parliaments. Germany produced idealistic philosophy, represented in writings of Schiller, and German intellectuals mainly accepted ideas of enlightenment and liberalism.  

2. The Weakness of German Liberalism

However the German liberalism was adapted only by the part of population. The significant numbers of people came from eastern areas, were less educated, and more prone to obey orders. As result revolution of 1848 was crashed and German liberalism was defeated by nationalism and socialism.

   3. The Prussian Army

Prussian Army from XVIII century to XIX underwent dramatic evolution. It started from point where both soldiers and officers had been randomly pressed into long term services and drilled to become mildness to such extent that army was not able to act at night or in small units due to the fear of desertion. Than it developed into army based on compulsory short-term service of all men with ideological conditioning similar to French revolutionary and later Napoleonic army with high levels of loyalty to the leader. It was expanded and the Royal guard was created to assure availability of loyal force. Eventually by 1860 army became a bulwark against liberalism.

   4. The Constitutional Conflict in Prussia

German liberals who called themselves progressives did everything possible to prevent revolution and civil war in hope to enlighten layers population that supported king, but failed, and eventually retreated during constitutional crisis giving way to Bismarck and his program of Etatism.

5. The “Little German” Program

The episodes of territorial struggle against France and Denmark opened way to strengthening Prussian army and eventual unification of Germany not under united liberal government, but under King of Prussia and his Prime Minister Bismarck.

6. The Lassalle Episode

Lassalle – leader of socialists played a substantial role at this point by pushing labor against liberals (progressives) with ideas of socialism and class war. In process he build clandestine alliance with Bismarck since both of them where fighting against capitalism and free market represented by liberals.

 

CHAPTER II. The Triumph of Militarism

1. The Prussian Army in the New German Empire

The specificity of Prussian Army was that it was build not within, but above civil administration. It was meritocratic institution and fully reliable tool of supreme warlord – Kaiser. 

2. German Militarism

The core of this system was the position of army, which was supreme factor of political life. This was a system of disguised absolutism with powerless parliament and Army leaders such as Moltke being courtiers. This system actually failed in the WWI, but it did it in such way that it was not absolutely clear for the people. 

3. The Liberals and Militarism

Prussian parliament had universal, but unequal franchise divided into 3 equal groups each elected by majority of taxpayers paying together 1/3 of taxes. This way richest group included a lot less people voting then poorest group. As result liberals had majority, but due to militarism they did not have control. Without control they failed to prove their ideas, but took blame for whatever went wrong. Consequently it opened the majority of wage earners to socialist agitation and destroyed ideology of liberalism. 

4. The Current Explanation of the Success of Militarism

Mises poses the question why capitalists and intellectuals did not resist militarism and why army that was build from lower classes who often supported socialism did not reject semi hidden absolutism? He rejects Marxists explanation of imperialism as stage of capitalism. 

PART II: Nationalism

CHAPTER III. Etatism

1. The New Mentality

The new mentality of Etatism in form of socialism and interventionism replaced Liberalism in the minds of Europeans during XIX and beginning of XX century. It came to Germany from West Europe and firmly established itself with growth of Social Democratic movement that found a pretty nice accommodation with social kingdom of Hohenzollerns with its social security and labor legislation. It fed back philosophy of Etatism to England in France through work of intellectuals from Show and Wells to Fabians. 

2. The State

This is a short review of notion of state as coercive organization in control of territory and its population. The only difference from a regular criminal gang is that it has no competition within its territory. Mises accepts necessity of the state because only coercion can prevent coercion, but he sees it not as benevolent godlike entity, but for what it is – a violent organization that should be limited as much as possible. 

3. The Political and Social Doctrines of Liberalism

The essence of Liberalism’s believes are private property on means of production and market as method of cooperation and division of labor. Coercive machinery of state is necessary, but only to defend property and prevent coercion by non-state actors. The control over state should be democratic because legitimacy of state’s coercion depends on voluntary acceptance of state’s rule. The validity of such voluntary acceptance is not possible to define without democratic process. 

4. Socialism

Socialism is the system of public ownership of means of production that is total state control over economy. Many people believe in compatibility of socialism and democracy, but it failed the check by reality of socialism implementation in multiple countries. This statement follows by demonstration of economic logic of why socialism could not work as advertised. 

5. Socialism in Russia and in Germany

This part is a review of actual and very sad experience of real socialism as it was implemented in Russia in form of Communism and in Germany in form of Nazism. 

6. Interventionism

This is a bit softer form of coercive intervention when state does not take over economy, but just interfere preventing it from proper working. This piece includes multiple examples of government intervention, how it normally achieves results directly opposite to advertised, and economic logic for reasons of such wonderfully consistent failures. 

7. Etatism and Protectionism

This is review of Etatism expressed as Protectionism. Obviously coercion is necessary to force people to buy something produced internally at higher price than could be obtained externally at lower. Eventually it comes down to some people getting more as producers while other paying more as consumers. 

8. Economic Nationalism and Domestic Monopoly Prices

This is description of another method of Etatism interference into economy: via monopoly pricing and inevitable negative results. 

9. Autarky

Finally it comes to extreme case of country isolated from international market. Obviously it dramatically increases costs of everything that is not produced most efficiently in this country and there is no such country that would have all quantities and qualities of resources that whole world has, it is the most destructive economic intervention short of socialization of means of production. 

1. German Protectionism

The specific German case included formation of cartels supported by government that charge high domestic prices in closed market and exported their product at much lower prices to compete on world markets. This allowed Germany conduct highly pro-labor policies supported by high prices. For some 60 years Germany was ahead of other countries, but eventually retaliation did occurred decreasing quality of life for everybody and pushing Germany to seek another method to obtain resources externally, more traditional than capitalism – war of conquest. 

CHAPTER IV. Etatism and Nationalism

1. The Principle of Nationality

This is review of the process of formation of nationalities in Europe as coercive process that included wide range of measures including education and suppression of traditional culture of minorities. 

2. The Linguistic Group

Principle of nationality generally requires formation of separate state for every linguistic group, however countries with relatively liberal systems handle perfectly well population with multiple languages without big problems. The notion of race was a latecomer and become prominent well after European states were formed. 

3. Liberalism and the Principle of Nationality

If Liberalism triumphs, the principle of nationality, separate states, and frontiers become redundant. If personal freedom both political and economic respected throughout the space, it does not matter if person born in country A, speaks in language B, and supports set of ideas C. Such person would be comfortable everywhere and will go to the place where his/her effort would be the post productive for consumers of his/her product as defined by the best return on investment of this person’s labor and capital. 

4. Aggressive Nationalism

Completely different situation is in environment of Etatism. Now returns are not defined by consumers, but by coercive power of the state. So to get the best access to resources person should join the group more powerful in control of the state. Obviously any minority will be disadvantaged causing it to fight for independence breaking states in smaller and smaller pieces with opposite process of war of conquest bringing these pieces together, but on unequal basis. 

5. Colonial Imperialism

This is review of colonial expansion of XIX century. It makes a very interesting point that contrary to Marxist interpretation it was not a result of next phase of capitalism. Capitalism does not need territorial expansion because whatever it needs could be bought on the international market and whatever they sell, they can sell at the same place. Colonialism is rather product of Etatism when government bureaucrats civil and military see territorial expansion as source of increase in amount of resources under their control and correspondingly increase in their power. 

6. Foreign Investment and Foreign Loans

This part discusses international movements of capital and is mainly about movement of Western capital to less developed countries. As usual it generated hate, resentment, and confiscations. The result is decrease of profitability of foreign investment and cessation of such investment making everybody poorer. 

7. Total War

The old wars of small armies and aristocracies are gone. The new total war between people is the feature of XX century and it makes war much more damaging then it ever been. Etatism removes free exchange creating economic disasters that result in decrease in quality of life for masses that depend on employment for their living. This normally blamed on lack of resources and generates hope to obtain resources from others via victorious war. The only real measure that could prevent war is liberalism that would provide everybody opportunity on the world wide free market. 

8. Socialism and War

Socialists claim that wars caused by capitalism. It is BS. The reality is opposite. Capitalism creates opportunity for cooperation and prompts everybody to try to meet other people’s needs. Socialism is coercion that completely separates resources available to person from results of this person’s efforts. Consequently the logical way to obtain more resources for all members of society is to get them from other people by winning in the war. 

CHAPTER V. Refutation of Some Fallacious Explanations

1. The Shortcomings of Current Explanations

The fallacy of explanation of nationalism is coming from failure to understand that Etatism is source nationalism. Without state taking from one people and giving to people of preferred nationality, the nationalism has no meaning whatsoever. 

2. The Alleged Irrationality of Nationalism

This fallacy relates to explanation of nationalisms as irrational. Nazis and other nationalists always promise to take from other nations something of value and give it to their own people. Humanity has a huge experience of this kind of resource acquisition working, so it is quite rational to expect it continue to work. 

3. The Aristocratic Doctrine

This is a nice description of revolt against masses when intellectuals and bureaucrats revolt against democracy as inefficient and harmful method of society organization and strife to substitute it with rule of “wise kings” selected through formal meritocratic process of tests and best universities. In reality only capitalism with real democracy when people compete on free market of goods, services, and ideas demonstrated superior ability to create wealth for everybody. 

4. Misapprehended Darwinism

This is a short and nice debunking of Social Darwinism as doctrine of aristocratic intelligentsia that has nothing to do with real philosophy of Darwin and Evolution. 

5. The Role of Chauvinism

This is explanation of logic and nature of Chauvinism as different from Nationalism. The Chauvinism is just a disposition of character and mind not involving action, while nationalism is all about action and policies. Both despise others and believe in their own superiority, but Chauvinist does business as usual with other, while nationalist uses violence against other. 

6. The Role of Myths

This is an analysis of myths as fictitious narratives and doctrines that play important role in history as something people actually believe. Socialism, Etatism, and Nationalism are valid doctrines in the minds of their supporters because of acceptance of myths presented in these doctrines, despite their fallaciousness. 

PART III: German Nazism

CHAPTER VI. The Peculiar Characteristics of German Nationalism

1. The Awakening

The German nationalism became qualitatively different from other nationalisms in 1880s. It formed notions of Germans as superior warriors and producers who are young, energetic, and deprived of access to needed resources by existing world order established by old, degrading, and corrupt western democracies. That was result of disunity of Germany and it will be fixed by unification of Germany that should be dominant power in the world. 

2. The Ascendancy of Pan-Germanism

Contrary to prevailing narrative neither Junkers of old Aristocracy, nor bankers, nor capitalists and middle class pushed Pan-Germanism. These groups were perfectly happy with existing order and growing ability of compete in free market – activity that brought them wealth and influence. The real engines of Pan Germanism were intellectuals who promoted it via education, books, and other forms of culture. 

3. German Nationalism within an Etatist World

Germans did not invent nationalism, but rather used it as everybody else. The key notion here is that nationalism makes sense only in conjunction with Etatism because if state controls resources individuals within or without this state can obtain these resources only by the grace of this state’s bureaucracy or via violence either plain robbery or military conquest (the same only bigger and bloodier). Only free market provides opportunity to obtain whatever one wants or needs without violence, but it practically leaves bureaucracy, politicians, and intelligentsia out of business. 

4. A Critique of German Nationalism

The critic provided includes two main points: one is the unrealistic complex superiority that made German nationalists and later Nazis to believe that they can fight the whole world and win; and another one: complete immorality of ideology that deemed moral anything that would benefit German state and nation. Obviously the great leaders should define what exactly benefit German state and nation. 

5. Nazism and German Philosophy

This is critic of idea that Nazism is logical outcome of German Idealistic philosophy. 

6. Polylogism

This animal came from Marxists who, after failing to refute by logical methods “bourgeois” economics, came up with Polylogism that states that thought and logic is defined by the social class, therefore since any thinker belongs some class, both logic and facts could be contested based on personality of individual who present them. Marxists claim to represent proletarian logic, class, and science. Nazis pick it up and created their own Aryan logic, facts, and even science. 

7.Pan-Germanism and Nazism

Pan Germanism had naturally grown into Nazism. Unfortunately other people in Europe just fail to understand that Nazi is not a small group of weirdoes, but rather true representatives of German people who, while fighting each other on details and methods were united in their understanding of goals – expansion and enrichment of Germany via military conquest. 

CHAPTER VII. The Social Democrats in Imperial Germany

1. The Legend

There are two legends about German social democrats. The first one is that they were fighting against militarism supported by bourgeoisie who was in search of armaments profits. The second one is that they were fighting against Hitler, agent of big capital. Both are untrue. 

2. Marxism and the Labor Movement

This is about intellectual history of Marxism. Marx started as interventionist, but reading of British economic authors convinced him that interventionism does not work so he moved to complete Hegelian negation of capitalism. Labor movement was not really Marxian, but rather interventionist demanding government intervention on behalf of workers. German Social Democrats managed to build organization on duality of theoretical Marxism and practicality of labor movement. 

3. The German Workers and the German State

The labor movement’s main weapon in any confrontation with employer was strike. The strike is meaningless if employer can freely use his property and just hire other people if demands of striker exceed market price for labor. The key for success therefore is to deny employer control over his property that could be done only using coercion. In 1870 German government moved to the side of labor and practically stop enforcing property laws in case of strikes. It is an interesting fact that union’s came from above: Bismarck and government. The seemingly anti-socialist laws were just a sham under which socialist movement grew tremendously supported from above by intellectuals and bureaucrats and from below by labor. 

4. The Social Democrats within the German Caste System

One important service Social Democrat provided to wage earners was creation for them social environment within German caste system that legitimized wage labor as important part of this system. 

5. The Social Democrats and War

Social Democrats as good Marxists supported civil war between classes and despised imperialistic war between countries in theory. In reality all of them supported their nations. Only when war causes suffering to lower classes the socialist starts agitate against it and tries to use it to take over government power. 

CHAPTER VIII. Anti-Semitism and Racism

1. The Role of Racism

An interesting point is made here that as meaningless as race in reality is it was used to create a notion of Germans as nation of noblemen by race regardless to actual social standing and in contrast to ignoble Jews. It was partially result of German aristocracy proving itself useless in all areas of achievement including military during WWI. 

2. The Struggle against the Jewish Mind

While fighting “Jewish Mind”, Nazis actually failed to define what it is and what specific characteristics it has. They also tolerate Christianity, which is a product of Jewish mind if there is one. Obviously socialism is also to significant extent product of this mind and is foundation of both Nazi and Soviet regimes. However Nazis ridiculously claim that only these parts of it that they reject such as internationalism are Jewish product.   

3.Interventionism and Legal Discrimination against Jews

This is a list of Nazi government action against Jews. Obviously because the book was written before Holocaust become a known event, it is a relatively benign list of discriminations and indignities against Jews. 

4. The “Stab in the Back”

The failure of WWI winners to assert reality of German defeat created an opportunity for legend of “Stab in the Back” of victorious German Army committed by Jews. This legend was not forcefully destroyed and as result it created German illusion of superiority that eventually led to WWII and final defeat with unconditional surrender. 

5.Anti-Semitism as a Factor in International Politics

The interesting dynamics reviewed here led to initial defeat of France and Britain in the beginning of WWII. This dynamic had two sides: in Britain it was growing of popularity of socialism and its international pacifistic logic putting the break on rearmament in the face of Nazi military build up; in France it was Anti-Semitism of Nazi that converted Anti-German French nationalists into force somewhat supportive to Germany based on commonality of their hate for the Jews. 

CHAPTER IX. The Weimar Republic and Its Collapse

1. The Weimar Constitution

The beginning of this period was characterized by socialist revolution in which contrary to Russian pattern the winners were not communist who wanted to eliminate hostile classes, but Social Democrats who still tried to maintain some image of democracy. In defeating communist they had to ally with vast majority of Germans who did not want to repeat Russian experience. The military power to defeat communists came from remnants of the army led by nationalists. So the democratic Weimar republic was basically created by alliance of anti-democratic forces of socialism and nationalism. 

2. The Abortive Socialization

This is a description of Social democratic attempt to socialization. It started with creating committee of professors, which amazingly failed to achieve anything.   

3. The Armed Parties

Here are details of inherent weakness of Weimar republic that led to creation of paramilitary forces by just about every political group. In this brawl Hitler came on the top because this gangs consisted of young people dedicated to fight and not burdened by jobs and families. He also managed extract financial support from business mainly because owners preferred Nazi form of socialist when they remained formally in control to Communists form of socialism when they would be liquidated. 

4. The Treaty of Versailles

The treaty is defined as failure, but not for usual reasons. Contrary to common wisdom Misses believed that treaty was not too tough on Germany. On contrary, he is pretty convincing in showing that neither territorial changes nor reparations were overwhelming. The failure rather was inability of Britain and France to stick to the treaty and fight for it both ideologically and military when needed. Without such fight the treaty become just an ideological feeder for German nationalism. 

5. The Economic Depression

The great German inflation was result of monetary policies of socialists of the chair. Mises predicted it in 1912. Depression was created by social democrats and victims went to Nazis because they believed that Nazis could help. 

6. Nazism and German Labor

The question of why masses of workers who were Social Democrats and Catholics allowed Nazis came to power is invalid. These people were not ideological. They cared about their lives ad believed that Nazis would do better for them. 

7. The Foreign Critics of Nazism

Nazis won in Germany because they never encountered any adequate intellectual resistance. This is quite understandable because the fundamental tenets of Nazi ideology do not differ from generally accepted social and economic ideologies:

1. Capitalism is an unfair system of exploitation
2. The foremost duty of government is to substitute management of capitalists with government control
3. Price ceilings and minimum wages are adequate method to improve lives of workers and consumers
4. Easy money make country more prosperous
5. Everybody who does not agree with statements above is evil and had to be suppressed.
6. Export is good, import is bad for economy

These common tenets of ideology prevented any serious foreign critic of Nazism. 

CHAPTER X. Nazism as a World Problem

1. The Scope and Limitations of History

This is a small philosophical discussion about inevitability of historical explanation of event to encounter limitation of individual makers of history. 

2. The Fallacy of the Concept of “National Character”

Attempts to explain Nazism by German national character are meaningless because there is no such thing as a character prevailing in all individuals of the same nationality. It is uniqueness of historical situation in combination with uniqueness of psychological and ideological status of multiple individuals that is continuously changing over time that defines historical events. 

3. Germany’s Rubicon

The Nazism is not unique, but rather a consequence of move to autarky. The Germany just got there first and under considerable pressure of consequences of WWI. The Germany’s Rubicon on the way to Nazism was rejection of fee trade in late 18xx. 

4. The Alternative

The issue in struggle between Nazis and the rest of the world whether world consists of one linguistic group of German masters and everybody else as slaves or it will be world of heterogeneous society embracing all human beings. There is no neutrality or conscientious objectors in this struggle. One either fights Nazis or supports them actively or passively. 

PART IV: The Future of Western Civilization

CHAPTER XI. The Delusions of World Planning

1. The Term “Planning”

Some people start using “Planning” as substitute of devalued term “Socialism”. It really does not make any difference because compulsory cartel instead of free competition is pretty much the same. In terms of “world planning” it means world socialism under unitary management. 

2. The Dictatorship Complex

The funny thing about people supporting dictatorship is that they always believe in dictatorship when and if dictator does what they want. As soon as dictator does something they do not like, they are firmly against this form of rule. 

3. A World Government

The World government is not possible unless everywhere in the world established capitalism with free enterprise, free trade, and free movement of people. In this case government would be minimalistic. Currently governments use violence to provide more resources to some people at the expense of others, with expansion of this process to more groups it would become unmanageable. 

4. Planned Production

The economic system is too complex and dynamic for planners to be able control it in any meaningful way. 

5. Foreign Trade Agreements

All agreements restricting free trade are economically harmful. The world bodies based on balance of restrictions would lead to incessant haggles between representatives of countries trying to get some advantage at the expense of each other. 

6. Monetary Planning

Moving away from gold to feat money at the worldwide scale would cause inflation and severe boom bust cycles hurting middle classes. 

7. Planning International Capital Transactions

As usual with planning the attempt to use some international body to control capital flows bound to fail due to huge diversity of constituencies and their interests that could be reconciled only via free movement of capital. 

CHAPTER XII. Peace Schemes

This part is pretty much outdated, but the bottom line is still correct: only truly free market, capitalism, and individual freedom can remove wars and violence between countries and peoples. The schemes reviewed:

1. Armament Control
2. A Critique of Some Other Schemes Proposed
3. The Union of the Western Democracies
4. Peace in Eastern Europe
5. The Problems of Asia
6. The Role of the League of Nations 

Conclusion

Original Liberals believed in perfectibility of humans. They developed economic theories of free market and free trade that provided for tremendous growth of wealth. Nobody was able disprove these theories and when socialism become popular Original Liberals proved impossibility of effective socialist planning that nobody was able to disprove. They proved in free market economic theories and real life capitalist practice that it is possible to cooperate without conflict of interest. However they failed because intellectual abilities of vast majority of people are insufficient to comprehend advantages of capitalism. The world is hopeless at least in the near future. However despite original Liberals failure, the currently winning alternative of socialism cannot bring anything but wars, dictatorships, and overall misery. The humanity will be able move on to the better life only when majority become enlightened enough to understand those important points:

• Durable peace is possible only under condition of perfect capitalism when all resource transfers and exchanges occur voluntary without coercion because that would eliminate any economic causes for wars
• Free movement of labor would lead to equalization of labor rates throughout the world removing any over/under population problems.
• Government interference with economy decreases productivity, increases costs, and, most important, generates hate between economic winners and losers because both know that outcome is not fair.
• Socialism as system of effective organized and planned production is not possible because planners could not possibly calculate proper resource allocation in dynamic system of human demand for goods and services.
• Etatism could not bring equality because decision making from the top of hierarchical system always creates conflict of interest that could not be resolved without violence. 

The future Mises expect as result of poisoning of population by socialist ideas is bleak. Etatism would divide world into prosperous industrialized West and miserable others who would start wars to take over resources from western minorities making it necessary for westerners to become highly militarized, suppress traditional freedoms, and dramatically decrease quality of live. 

This catastrophe is not inevitable, but highly probable, as Mises saw it at the time of writing.  

MY TAKE ON IT:

As usual I mainly agree with Mises on all economic issues. I also think that only free market could support freedom and prosperity and socialism or any other form of Etatism including welfare state is inevitably lead to decrease in quality of life, war, violence, and over all misery. 

In addition to detailed description and analysis of history of National Socialism in Mises’ land of birth Germany I could add my experience of similarly disgusting form of Etatism: International Socialism in country of my birth Soviet Union. 

However I completely disagree with is evaluation of Socialism power as result of insufficient enlightenment of masses. I think that many supporters of Old Liberalism and overall Capitalism are missing dynamics of this system when, while being beneficial for everybody at the long run, it is often detrimental to individuals over period of their one and only one specific life. 

The individual who is at the bottom of society hierarchy, has no property, and has nothing significant to offer on the labor market cannot obtain satisfactory level of resources to accept the system. Such individuals are bound to fight it and if Socialism, Welfare state, or any other form of Etatism promised them more resources, they would support it either with their votes or with their guns. It would be only rational for them to do it. 

The key for bringing this majority to the side of free market is to grant these people something that would immediately assure acquisition of at least the same amount of resources available them now and free them to search for additional application of their talent on the free market with plentiful educational opportunities. I believe that the way to do it is to establish equal, unalienable, and marketable rights for natural resources so individuals who use more than average had to buy these rights from individuals who use less. 

The same is not necessarily applies to intellectuals who are not always stupid despite spending lots of time in brain damaging educational establishments. Many of them understand quite clearly that socialism does not work, while free market does. However they also understand that they would never be able to achieve the same level of resource acquisition on the free market, as they are able to achieve as reliable cogs in some hierarchical system of the state. No amount of enlightenment will change minds of these people. 

It would not be possible to bring older and well-established intellectuals on the side of free market, but it should be possible to move to this side young intellectuals. By the same pattern as with masses without marketable skills, if granted equal rights for natural resources they would be set free to seek whatever application they want for their talents either for additional resource acquisition on the free markets, or just a personal life satisfaction. As a way to enjoy life, it would beat the hack out of being even well paid bureaucrat.

 The bottom line is that tremendous improvement and prosperity is right around the corner, if we can manage to handle property rights in society well enough.