Hans Hermann Hoppe, Private Law Society without a State - Q&A - Modelhof Academy 2012 - in German
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Hans Hermann Hoppe argues that a society without a state is feasible and preferable through the establishment of private law systems where all individuals are treated equally under uniform legal regulations rather than special privileges for specific groups. He contends that current welfare states fundamentally violate property rights by engaging in organized crime, which he defines as forced redistribution of wealth disguised as social policy. In this view, true charity must be voluntary and given from one's own property without coercion, whereas state-mandated support systems not only fail to help but actively drain resources needed for genuine philanthropy. Hoppe suggests that the most effective way to address difficult problems like child welfare or crime is through compensation mechanisms proportional to the harm caused rather than physical punishment, noting that victims generally prefer restitution over retribution unless public safety requires otherwise.
The discussion extends to monetary systems where Hoppe explains that money naturally emerges as a marketable commodity created spontaneously by individuals seeking security against life's uncertainties, not by central institutions. He criticizes modern paper currency and state banking monopolies for enabling inflation through the printing of new banknotes without corresponding increases in real goods or services. This process enriches those who receive newly printed money first while impoverishing everyone else as prices rise, effectively redistributing wealth from the many to a few powerful entities like central banks and large corporations. Hoppe emphasizes that historical monetary systems were always backed by tangible commodities like gold or silver until states expropriated these metals to establish fiat currency regimes that allow unlimited printing of worthless paper slips.
Looking toward future developments, Hoppe predicts an inevitable collapse of Western welfare states due to their unsustainable financial obligations, which will trigger economic catastrophes and widespread secessionist movements similar to the fall of communism. He envisions a transitional period where fragmented smaller political entities emerge through regional independence struggles as people resist uniform regulatory structures that stifle entrepreneurship and force them to leave jurisdictions with unfavorable conditions. This competition between numerous small states would naturally drive governments toward greater liberalism and freedom, forcing authorities to improve their governance standards lest citizens vote with their feet by relocating elsewhere. The ultimate goal is a world composed of thousands of diverse local communities rather than centralized superstates or global entities that impose identical rules everywhere regardless of local circumstances.
Hoppe concludes that while the transition to this decentralized system may require catastrophic events, it represents humanity's only viable path forward given current trends toward increasing centralization and economic inefficiency. He advises against joining supranational organizations like the European Union which erode national sovereignty and create uniform regulatory burdens that discourage business mobility across borders. Instead, he recommends withdrawing from international bodies like the United Nations while empowering local municipalities to manage their own affairs independently within a framework of private law principles derived from basic moral codes such as the Ten Commandments. Ultimately, Hoppe believes that only through voluntary cooperation among free individuals respecting property rights can society achieve genuine prosperity and justice without relying on coercive state mechanisms or fraudulent monetary policies controlled by dangerous elites who manipulate economic systems for personal gain at public expense.
Read the full video transcript
I'd
also be happy to answer a few questions, so maybe for a
quarter of an hour. Yes
. Yes
.
They didn't even
address the murder issue.
In cases of murder,
they say that the body
is property, and that is clearly a violation of
property rights, but who will be
compensated if the murdered person
has no wife and no
living descendants?
Yes, how is this currently being handled?
Yes, so the murderer will be spayed and
imprisoned. Yes
. Um, in such a
case, most of the
victims or their relatives would
then have a claim to
compensation. If they
apply the principle of proportionality, they could, at most,
insist that it be executed
. Normally, one would
n't do that. Usually [snorting]
prices would then be negotiated
. Um, that means, uh,
compensate the victim's family as best as possible.
Um, if it's a wealthy person
, then one might
say, well, this amount; if
they are less wealthy, the
amount might be smaller.
Maybe you won't get
anything from him at all, but you don't get
anything from him these days either. Um, there is no
perfect solution for such things.
The
entire punishment system focuses solely on the victim, either
the victim or the victim's relatives
. And the counterpart, the
current situation, is
characterized by the fact that the victim
is completely irrelevant. The
victims are not being
compensated. They will not be compensated in any way
. And in such a system, that
would of course be the central
point.
We should
do everything humanly possible to
heal the victim.
In many cases, it is
no longer possible to cure it, but
we try to rectify the situation as best we can
.
And most victims would not insist on
physical
punishment, unless the
person is a danger to the public,
but would demand compensation for pain and suffering and things like that
.
This also existed in the Middle Ages;
for many punishments, fixed
tariffs were in place. If you do that,
that's the price. Three goats, if that
makes five sheep, and such
regulations.
Yes,
what is it? She herself
always says one body, but
what about children? Do they
also have this right? If they don't
have it, then their parents can
do it for them, so to speak. Do they want to?
No, of course children have this
right too, as long as they are children, and so are
the parents. What is
German
guardianship, and then
the question is when does this
guardianship expire?
My teacher Redbeard had the idea,
and it seems plausible to me. You ca
n't say that this applies to the
fifth year, or the sixth year, or
the seventh year. What
he suggested seems somewhat arbitrary.
The moment children can run away
and say no, that goes away
. I [snort] would
also allow certain exceptions if
my children wanted to run off like that;
sometimes I would have
chased after them, given them a good spanking,
and then
they probably would have come to their
senses. But the basic idea
seems correct to me.
Some children mature earlier, other
children mature later,
[ahem]
but if there are good indications
that this is a serious
decision and they have seriously said no
, then these children can
go to a mediator and
say, well, my parents are forcing
me to come back, but listen to me,
hear my arguments, look at me. Am
I not independent enough that they have to let me
go? One also wanted to
address the problem that parents
behave, especially in the present
example during the time when they are still young
, that they can basically
do whatever they want with their children.
So, in Italian, there is no
authority that is, so to speak, an advocate for the children
.
Normally, the relatives do that, the ones who are
known, um,
I look, they look at
the
current situation. Some things like this can
never be prevented.
That is clearly
not the case at present either. Um,
currently it's such that
children are
taken away from their parents against their will,
not only if they do such things,
but also for
politically incorrect behavior. In
Sweden, you can take the children out of the
house, uh, I don't know, because their
parents smoke at home.
Um, no
order in the world can prevent
difficult, delicate
problems from existing somewhere.
That will remain the case as long as people
are the way they are.
In the system as I have described it
, there are far fewer
problems than in the one we
currently have. There's nothing more that can be done
. More is simply not
humanly possible.
Yes, they keep bringing up the fact that
something needs to be paid for.
They would make money. We
need a central institution for money.
Well, money is created spontaneously in the market
. Money is simply the most
marketable of all truths.
Um,
if there were a world with
absolute certainty
regarding future events,
then people would only
maintain consumer goods and production goods. Then holding
money would be a waste, in a sense.
Why hold onto money
that you can't eat
and that isn't
used as an investment? And the
answer is because there are uncertainties
, because surprises can occur
in life,
and if you
want to prepare for these surprises in life,
then you look for marketable goods that
you can sell immediately to
solve your problems.
And such anger has arisen everywhere in
the world at all times of humankind
,
whenever humanity has evolved beyond the most primitive
state of simple commodity exchange
.
This would probably have been a
gold standard or silver standard
if the world had been different than
it is, perhaps a different metal.
You don't need a start for that.
On the contrary,
if I look at the
current monetary system, it is the
case that
the introduction of paper money was only
possible because those who
originally
used metallic money were expropriated.
Paper money can never be at the beginning of the development of money. If
I were to say, "Here, I'll give you
what you want for your
glasses," and I'd write you
a slip of paper and write ten on it...
Uh, then they would say she's about to go
crazy, and if I
said, "But I'll add two more zeros,"
then they wouldn't put me in a mental
institution.
Money was originally always a commodity, and
the reason it was accepted as paper is
that this paper
was originally a title for a commodity.
That is, they accept a
note from me if it says on the note that
this note can
be redeemed for, I don't know, 1 gram of silver
or 1 gold. And what states did was
, at some point,
they said, "Okay, we're no longer redeeming this paper for what
it was
originally intended to be."
Now we only have paper left,
and we as a state
are monopolists, we have a monopoly.
We can
now print these paper slips as often as we like.
I would like to be able to do that too. Um,
and then you can also predict what will
happen. All state-owned
banks are nothing more than a money-counting shield, [ahem]
. They
print money from morning till night.
Nobody will get rich that way. Of course
not. Then there would be no more poor countries
in the world. The idiotic
countries have printing presses. So,
they can all do that.
Um,
a new banknote doesn't
create an additional piece of
mother or author, nothing. What it
can achieve, however, is to make
those who get the money first
richer, while the other people reap the rewards.
The counterfeiter [ahem] counterfeits
money, costs almost nothing, and buys himself
a Mercedes.
The rest of society now has one less
Mercedes, one less real commodity,
but the money-grubber has more, and
prices slowly rise as
these banknotes gradually
seep through the economic system, causing one price after
another to increase. Those
whose
income was fixed, however, can
buy less with a banknote than
was previously the case.
Inflation,
i.e., the increase of the money supply, the purpose of which
is to redistribute
income
in favor of those who get the money first
. First it's always
the central bank, then the big
banks that are transformed along with the central bank,
and then the
large clients of the big banks, and the
small ones, um,
they are the ones who are
made poorer by the money
losing purchasing power.
So there's absolutely
no need to worry about money. Um, if you
look at states, the most important
institutions of the states from the state's point of view
are, firstly, those who, so to speak,
walk around in leather coats, who
break their knees if they do
n't pay their taxes and lock themselves up, and
then there are those in suits. Uh,
those are the people who sit in the central banks,
and they are of course even
more, well, how should I say,
admired, highly respected, even though they
are actually the more dangerous people. In my opinion, a Jer who works at the central bank
is a
dangerous person.
Those in the lower ranks
may not even know this,
but those at the top certainly do.
Yes, in principle, Befahrfestgesell is
in anarchy, you could say that.
An alternative term for it is
anarcho-capitalism,
but I don't like this term because it
has a
disreputable taste;
people are hitting each other on the head. Uh, that's why
I prefer the term
private company,
because it nicely emphasizes two things
. Firstly, there is the right, um,
and the point emphasized that
all people are treated equally under the law
. There is no special right for
a group of people, i.e., no higher and
a lesser right, but all
persons are treated according to the same
legal regulations. And it
also conveys the message that we are well
aware that there is
private law, and
when we
conduct business among ourselves,
we generally behave in accordance with this law
.
Private law, too, is naturally
permeated by elements of
public law. There have also been
perversions
that have taken place. But
overall, most people
always think of it as so
complicated.
The Ten Commandments are usually sufficient to
regulate people's lives peacefully. You shall not covet
your neighbor's property. Uh, and what do
we hear from all the Christian
parties? Redistribution here,
redistribution there. This has nothing
to do with Christianity. Christianity demands
of us what all religions, all
major religions, do: we should
do charity, but acts of charity will consist of
giving something voluntarily. Uh, and everything that has been done as
social policy is
nothing but organized crime.
Um,
the social policymakers in particular really get on my
nerves for that reason. They
always feel like they're constantly
doing something good.
They're not doing anything good at all.
Only those who freely give something of their own
property to
benefit other people do good. And
this goodness
and the act of being good are, in a sense, driven out of us by the existence of
social policy. Of course they say, they're already taking
half
my salary. You ca
n't expect me to be
a big donor for
this and that now. If they would let me do that more
, yes of course, then
one would give what the
churches
have deemed appropriate for ten years or whatever time it has been since the churches were born
. And then it also goes to
people you know
and for things you support
. Every small village has its
village idiot. And when I
was a boy, there were also a few people
who did really, really bad jobs,
but they were always
supported by the people who
knew them. Um, if all these
things happen anonymously and are
used for purposes that one does
n't actually want to support, then
I just find that disgusting.
Yes, please. Do you see any
possibility, or have you already
developed your own ideas, as to how
society, the legal system, uh, the
political order could then
move or develop in that direction?
Because if there were no such
possibility,
it would actually be too late. So, what I
see as a scenario is that
all the Western welfare states
will collapse.
Uh, just like when communism
collapsed. They
simply cannot meet their financial obligations
. Then there will be an
economic catastrophe. Um,
in this economic
catastrophe that I foresee,
secessionist movements will prevail
on a large scale. You can
already see hints of something like that
in some regions.
Resistance to the EU will continue to
grow, unfortunately last in
Germany due to
German history. We are responsible for
the entirety of world history
. That's why
we have to wait it out for as long as possible, say, uh,
and then it happens that
Catalonia would secede from Spain
because, say, we don't want to
finance Andalusia, or the Bavarians might
say, why are
we financing Sicily? Let's leave the money
in Bavaria instead.
And if secessionist movements occur
and states become smaller again,
then states must be more liberal
so that productive people don't
leave them.
Uh, so the interim solution I
see is a world made up of thousands
of light stands. [snorting] uh, quite
unlike what is
currently happening before our very eyes
, namely
a European central state uh
with a uniform tax structure,
actually a uniform
regulatory structure, so that it's
no longer worth it for entrepreneurs to
go from one word to another, because
the crap is the same everywhere. And
even worse, of course, would be a
world state.
Um, there
are no economic
reasons to go from one place to another anymore
, just things like, "the
sun shines more there" and "it rains more there," and so
on. Um, and the greater the number of
states, the more liberal they must
be towards their own citizens.
States are inherently
illegal, so to speak, but the competition between
many states forces them, in a sense, to
engage in free trade. Imagine
you are just a small village
and you say, "We're not doing
free trade anymore."
Imagine Lichtenstein says, "We're not
releasing anyone now." We're
closing the borders; we're producing everything
for ourselves.
In 14 days, they will lead those in
famine-stricken areas
or Hong Kong to such places.
Small states must be liberal. Um,
and
the ability for people to vote with their
feet
forces them to be comparatively nice.
So, I can only recommend to the Swiss
never [snorting] to join the EU. uh, to
strictly reject the issue, to
withdraw from the United Nations again, uh, to give the cantons more
power again. Your central government is
sending everyone home and the
cantons are supposed to
take care of things again, and then possibly
go a step further and let the
individual municipalities in the cantons
decide that.
The more diversity
there is in the state system, the closer one comes to
this goal. And
I
'm actually quite sure that's the way things will go
, but only through a
catastrophe.
Yes, I'll take one more
question and then I think we should...
Yes. Yes, because I
deliberately didn't eat anything beforehand,
because I know that I'll get sleepy,
and I told Mr. Burel that
beforehand. I didn't want to
eat beforehand, but afterwards, but it's already
quite late, I must say.
Maybe, just maybe, we can
take care of the questions right here as we're leaving or something.
Um, well,
thank you again very much
.