The Anti-Capitalistic Mentality

One year before the publication of Theory and History, Mises had published a short book in applied thymology. Here he dealt with the psychological causes of anti-capitalism—with what he called the Anti-Capitalistic Mentality. It is significant that he published this work only after an exhaustive discussion of the merits of the intellectual case against the market economy. Thymology, we need to keep in mind, was for Mises a residual discipline. The purpose of Verstehen was to explain those aspects of human behavior that could not be explained by other disciplines. If economic analysis could disprove the case against the market, then what could explain the worldwide popularity of socialism and the omnipotent state? This is the question that he dealt with in this slim volume and, as usual, he did not mince words. He singled out two factors: intellectual error, and the base passions of envy and hatred.

From the very beginnings of the socialist movement and the endeavors to revive the interventionist policies of the precapitalistic ages, both socialism and interventionism were utterly discredited in the eyes of those conversant with economic theory. But the ideas of the immense majority of ignorant people [are] exclusively driven by the most powerful human passions of envy and hatred.... They are socialists because they are blinded by envy and ignorance. They stubbornly refuse to study economics and spurn the economists’ devastating critique of the socialist plans because, in their eyes, economics, being an abstract theory, is simply nonsense. They pretend to trust only in experience. But they no less stubbornly refuse to take cognizance of the undeniable facts of experience.⁵²

The book appealed to a wider audience, and the indefatigable Nymeyer willingly served the market. He had Van Nostrand print 2,000 paperback copies at sixty cents each.⁵³ The reviews were predictable. Hazlitt, Rothbard, Raico, and a few others praised it, while most of the reviewers were bewildered or scandalized. The Economist disparaged it out of hand. Mises took this as a good sign. The book was having its impact. He wrote to a Greek correspondent:

That the London Economist, that harbinger of the policies that are ruining British prosperity and civilization, does not like my Anti-Capitalistic Mentality is, in the eyes of discerning people, a recommendation.⁵⁴

And in another letter he expressed his satisfaction over the severe fire the Swedish edition of the book had drawn:

The only proof that the time bestowed upon the production of a book was not wasted is the fact that it is rejected by all conformists and champions of the prevailing popular doctrines. I am not ashamed of belonging to a very small minority. Actually this minority, although small, is not negligible for it includes the most eminent men of our age.⁵⁵