How States Relate to One Another

Since the territorial area of the earth is divided among different States, inter-State relations must occupy much of a State’s time and energy. The natural tendency of a State is to expand its power, and externally such expansion takes place by conquest of a territorial area. Unless a territory is stateless or uninhabited, any such expansion involves an inherent conflict of interest between one set of State rulers and another.

What the State Is Not

The State is almost universally considered an institution of social service. Some theorists venerate the State as the apotheosis of society; others regard it as an amiable, though often inefficient, organization for achieving social ends; but almost all regard it as a necessary means for achieving the goals of mankind, a means to be ranged against the “private sector” and often winning in this competition of resources.

What the State Is

Man is born naked into the world, and needing to use his mind to learn how to take the resources given him by nature, and to transform them (for example, by investment in “capital”) into shapes and forms and places where the resources can be used for the satisfaction of his wants and the advancement of his standard of living. The only way by which man can do this is by the use of his mind and energy to transform resources (”production”) and to exchange these products for products created by others.

How the State Preserves Itself

Once a State has been established, the problem of the ruling group or “caste” is how to maintain their rule.7 While force is their modus operandi, their basic and long-run problem is ideological.

Anatomy of the State

2. On the Term “Liberalism”

Those who are familiar with the writings on the subject of liberalism that have appeared in the last few years and with current linguistic usage will perhaps object that what has been called liberalism in the present volume does not coincide with what is understood by that term in contemporary political literature. I am far from disputing this.

5. The Future of Liberalism

Appendix

1. On the Literature of Liberalism

In order to keep this book from becoming overlong, I have had to be brief. I considered myself all the more justified in being so since I have already treated thoroughly all the basic problems of liberalism in a series of comprehensive books and essays.

For the reader who wishes to acquire a more exhaustive understanding of these matters, I append the following compilation of the most important literature.