what is wrong with our age

HG WellsWhat’s wrong with the current age (defined as the last century or two)?

Here’s HG Wells (Outline of History) on the subject:

And here we come upon one of the chief problems of our lives at the present time, the problem of the deflection of the profits of progress. For two hundred years there has been, mainly under the influence of the spirit of science and enquiry, a steady improvement in the methods of production of almost everything that humanity requires, If our sense of community and our social science were equal to the tasks required of them, there can be little question that this great increment in production would have benefited the whole community, would have given everyone an amount of education, leisure, and freedom such as mankind had never dreamt of before. But though the common standard of living has risen, the rise has been on a scale disproportionately small. The rich have developed a freedom and luxury unknown in the world hitherto, and there has been an increase in the proportion of rich people and stagnantly prosperous and unproductive people in the community but that also fails to account for the full benefit. There has been much sheer waste. Vast accumulations of material and energy have gone into warlike preparations and warfare. Much has been devoted to the futile efforts of unsuccessful business competition. Huge possibilities have remained undeveloped because of the opposition of owners, fore-stallers, and speculators to their economical exploitation. The good things that science and organization have been bringing within the reach of mankind have not been taken methodically and used to their utmost, but they have been scrambled for, snatched at, seized upon by gambling adventurers and employed upon selfish and vain ends. The eighteenth century in Europe, and more particularly in Great Britain and Poland, was the age of private ownership. “Private enterprise,” which meant in practice that everyone was entitled to get everything he could out of the business of the community, reigned supreme. No sense of obligation to the state in business matters is to be found in the ordinary novels, plays, and such like representative literature of the time. Everyone is out “to make his fortune,” there is no recognition that it is wrong to be an unproductive parasite on the community, and still less that a financier or merchant or manufacturer can ever be overpaid for his services to mankind. This was the moral atmosphere of the time, and those lords and gentlemen who grabbed the people’s commons, assumed possession of the mines under their lands, and crushed down the yeoman farmers and peasants to the status of pauper labourers, had no idea that they were living anything but highly meritorious lives.

Ludwig von MisesAnd here’s Ludwig von Mises (Human Action), sounding almost as if he’s replying directly to Wells:

Then there are people who assert that something must be wrong with the social sciences because social conditions are unsatisfactory. The natural sciences have achieved amazing results in the last two or three hundred years, and the practical utilization of these results has succeeded in improving the general standard of living to an unprecedented extent. But, say these critics, the social sciences have utterly failed in the task of rendering social conditions more satisfactory. They have not stamped out misery and starvation, economic crises and unemployment, war and tyranny. They are sterile and have contributed nothing to the promotion of happiness and human welfare.

These grumblers do not realize that the tremendous progress of technological methods of production and the resulting increase in wealth and welfare were feasible only through the pursuit of those liberal policies which were the practical application of the teachings of economics. It was the ideas of the classical economists that removed the checks imposed by age-old laws, customs, and prejudices upon technological improvement and freed the genius of reformers and innovators from the straitjackets) of the guilds, government tutelage, and social pressure of various kinds. It was they that reduced the prestige of conquerors and expropriators and demonstrated the social benefits derived from business activity. None of the great modern inventions would have been put to use if the mentality of the pre-capitalistic era had not been thoroughly demolished by the economists. What is commonly called the "industrial revolution" was an offspring of the ideological revolution brought about by the doctrines of the economists. The economists exploded the old tenets: that it is unfair and unjust to outdo a competitor by producing better and cheaper goods; that it is iniquitous to deviate from the traditional methods of production; that machines are an evil because they bring about unemployment; that it is one of the tasks of civil government to prevent efficient businessmen from getting rich and to protect the less efficient against the competition of the more efficient; that to restrict the freedom of entrepreneurs by government compulsion or by coercion on the part of other social powers is an appropriate means to promote a nation’s well-being. British political economy and French Physiocracy were the pacemakers of modern capitalism. It is they that made possible the progress of the natural sciences that has heaped benefits upon the masses.

What is wrong with our age is precisely the widespread ignorance of the role which these policies of economic freedom played in the technical evolution of the last two hundred years.…

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