Does Liberalism Fuel Imperialism?

 The belief that liberal democracies are inherently peaceful is challenged by historical evidence suggesting a paradox: nations that promote economic freedom at home are often the most aggressive abroad. This tendency raises questions about the relationship between internal liberalism and external imperialism, especially as explored by economist Hans Hermann Hoppe.

1. Historical Paradox: The article discusses how liberal democracies like 19th-century Britain and modern-day United States have been involved in expansive imperial policies despite their emphasis on internal economic freedom.

2. Internal Liberalism and Wealth: Hoppe argues that when a state encourages wealth creation and innovation through liberal policies, it can use that wealth to further its imperial ambitions. The more effective a nation is in fostering economic growth internally, the more resources it has for external aggression.

3. The Rise of the State: Over time, many Western states began centralizing power, which allowed them to extract wealth from their citizens more effectively. This transition empowered states to wage wars and expand their territories based on the wealth generated by internal liberalism.

4. Imperialism of the Wealthy States: Wealthy nations have a greater capacity to dominate others militarily. Examples provided include the British Empire, which succeeded in establishing global dominance in part due to its liberal economic policies. This pattern has been consistent throughout history, as more prosperous states often leverage their resources for expansionist endeavors.

5. Impact of Fiat Currency: The establishment of central banks and fiat currency altered imperialism’s dynamics significantly. States gained the ability to finance wars without directly depleting their treasuries, which led to unprecedented levels of destruction during the World Wars.

6. Economic Liberalism's Relationship to Imperialism: Despite leading to internal wealth, economic liberalism does not inherently cause imperialism. Rather, the problem lies with how states exploit this wealth to pursue aggressive foreign policies.

7. Contemporary Examples: Today, examples of modern imperialism can be observed in the actions of states like the United States and China, where the wealth generated from liberalized economies is transformed into military power and geopolitical strategies.

8. The Nature of the State: The article asserts that the state's intrinsic nature is to not only control its citizens but also to extend its influence over other nations. This phenomenon illustrates how economic might can translate into military intervention and imperialism.

The relationship between economic liberalism and imperialism is complex. While liberal policies foster wealth, the underlying state mechanisms often redirect that wealth towards coercion and domination rather than benefiting society as a whole. The pressing question is not whether liberalism leads to imperialism, but how to mitigate the state's exploitative tendencies that turn market success into instruments of control. Addressing this issue requires a critical examination of state power and its role in the global environment.

https://mises.org/mises-wire/does-liberalism-fuel-imperialism