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that Mill experienced after his mental crisis helped to shape the mould of his political thought in that turbulent and confused era of the 1830s. However much he strayed from the strict path of his father’s thought, he remained in agreement with the main legal and political reforms sought by James Mill and the Philosophic Radicals. In his journalism he still advocated extensive changes in the laws, the parliamentary system, and the whole system of government to reduce what, in his opinion, was the baneful influence of the aristocracy on the major aspects of British society. He endeavoured to arouse the Radicals in and out of parliament to form a powerful party that either alone or allied with progressive Whigs could shape public policies on reformist lines. In a letter to Edward Lytton Bulwer in March 1838 he summarized his political ambitions in the preceding years:

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It is in a small society, where everybody knows everybody, that public opinion, well directed, exercises its most salutary influence. Take the case of a tradesman in a small country town: to every one of his customers he is long and known; their opinion of him has been formed after repeated trials; if he could deceive them once, he cannot hope to go on deceiving them in the quality of his goods; he has no other customers to look if he loses these, while, if his goods are really what they to be, he may hope, among so few competitors, that this also will be known and recognised, and that he will acquire the character, , which his conduct entitles him to. Far different is the case of a man setting up in business in the crowded streets of a great city. If he trust solely to the quality of his goods, to the honesty and faithfulness with which he performs what he undertakes, he may remain ten years without a customer; be he ever so honest, he is driven to cry out on the housetops that his wares are the best of wares, past, present, and to come; while, if he proclaim this, false, with sufficient loudness to excite the curiosity of passers by, and can give his commodities not easily to be seen through at a superficial glance, he may drive a thriving trade though no customer ever enter his shop twice. There has been much complaint of late years, of the growth, both in the world of trade and in that of intellect, of quackery, and especially of puffing; but nobody seems to have remarked, that these are the inevitable of immense competition; of a state of society where any voice, not pitched in an exaggerated key, is lost in the hubbub. Success, in so crowded a field, depends not upon what a person is, but upon what he seems: mere marketable qualities become the object instead of substantial ones, and a man’s labour and capital are expended less in anything, than in persuading other people that he has done it. Our own age has seen this evil brought to its consummation. Quackery there always was, but it once was a test of the absence of sterling qualities: there was a proverb that good wine needed no bush. It is our own age which has seen the honest dealer driven to quackery, by hard necessity, and the certainty of being undersold by the dishonest. For the first time, arts for attracting public attention form a necessary part of the qualifications even of the deserving: and skill in these goes farther than any other quality towards ensuring success. The same intensity of competition drives the trading public more and more to play high for success, to throw for all or nothing; and this, together with the difficulty of sure calculations in a field of commerce so widely extended, renders bankruptcy no longer disgraceful, because no longer dishonesty or imprudence: the discredit which it still incurs belongs to it, alas! mainly as an indication of poverty. Thus public opinion loses another of those simple criteria of desert, which, and which alone, it is capable of correctly applying; and the very cause which has rendered it omnipotent in the gross, weakens the precision and force with which its judgment is brought home to individuals.


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Hayek in his essays The Use of Knowledge in Society and the Meaning of Competition explains his theories.

There are, we believe, few real thinkers, of whatever party, who have not reflected with some anxiety upon the views which have become current of late, respecting the irresistible tendency of modern society towards democracy. The sure, and now no longer slow, advance, by which the classes hitherto in the ascendant are merging into the common mass, and all other forces giving way before the power of mere numbers, is well calculated to inspire uneasiness, even in those to whom democracy presents nothing alarming. It is not the uncontrolled ascendancy of popular power, but of any power, which is formidable. There is no one power in society, or capable of being constituted in it, of which the influences do not become mischievous as soon as it reigns uncontrolled—as soon as it becomes exempted from any necessity of being in the right, by being able to make its mere will prevail, without the condition of a previous struggle. To render its ascendancy safe, it must be fitted with correctives and counteractives, possessing the qualities opposite to its characteristic defects. Now, the defects to which the government of numbers, whether in the pure American or in the mixed English form, is most liable, are precisely those of a public, as compared with an administration. Want of appreciation of distant objects and remote consequences; where an object is desired, want both of an adequate sense of practical difficulties, and of the sagacity necessary for eluding them; disregard of traditions, and of maxims sanctioned by experience; an undervaluing of the importance of fixed rules, when immediate purposes require a departure from them—these are among the acknowledged dangers of popular government: and there is the still greater, though less recognised, danger, of being ruled by a spirit of suspicious and intolerant mediocrity. Taking these things into consideration, and also the progressive decline of the existing checks and counterpoises, and the little probability there is that the influence of mere wealth, still less of birth, will be sufficient hereafter to restrain the tendencies of the growing power by mere passive resistance; we do not think that a nation whose historical give it any choice, could select a fitter basis upon which to ground the counterbalancing power in the State, than the principle of the French Upper House. The defects of are, in substance, those of unskilled politicians. The mode of raising a power most competent to their correction, would be an organization and combination of the skilled. History affords the example of a government carried on for centuries with the greatest consistency of purpose, and the highest skill and talent, ever realized in public affairs; and it was constituted on this very principle. The Roman Senate was a Senate for life, composed of all who had filled high offices in the State, and were not disqualified by a public note of disgrace. The faults of the Roman policy were in its ends; which, however, were those of all the of the ancient world. Its choice of means was consummate. This government, and others distantly approaching to it, have given to aristocracy all the credit which it has obtained for constancy and wisdom. A Senate of some such description, composed of persons no longer young, and whose reputation is already gained, will necessarily lean to the Conservative side, but not with the blind, merely instinctive spirit of conservatism, generated by mere wealth or social importance unearned by previous labour. Such a body would secure a due hearing and a reasonable regard for precedent and established rule. It would disarm jealousy, by its freedom from any class interest, and while it never could become the really predominant power in the State, still, since its position would be the consequence of recognised merit and actual services to the public, it would have as much personal influence, and excite as little hostility, as is compatible with resisting in any degree the tendencies of the really strongest power.