unpublished article was written by Murray N. Rothbard in May 1961.
Special thanks for it to Joseph Stromberg, Rothbard Archivist at
the Mises Institute.
Upon a Time there was a peaceful valley. The people were happy in
this valley; they worked, they traded, and they laughed together.
No man exerted force upon his neighbor, and all lived and prospered.
day there came to this valley a roaming band of marauders, led by
a gang leader, whom we shall call Hector. This band came with machine
guns, and, as was their custom, raped and looted at will among the
people of the valley. As they were preparing, as usual, to put the
whole valley to the torch ("for kicks," as one of Hector's
Gang put it, succinctly), one of their number, a brilliant young
intellectual whom we shall call Iago, stopped them. "Look,
chief," said Iago, "Why don't we change our modus operandi?
I'm getting pretty sick of all this roaming around, looking always
for the next mark, the next victims, always on the run. This is
an isolated spot, a beautiful spot. Let's settle down here, and
run these people's lives. Then, we can milk them all the time, instead
of killing them all and moving on." Hector was a shrewd gang
chief, and he saw the wisdom of the idea. The gang settled down.
so the robbery and the pillage became chronic instead of acute.
Annual tribute was levied on the people, the Gang exercised power
and dictation over them, and the Gang strutted about in uniforms,
issuing orders. There was a great deal of resentment at first; the
valley people muttered, and they began to form a People's Resistance.
the chief theoretician of Hector's Gang, explained to the chief
that another great change in their methods was due, to fit the changed
conditions. "These people outnumber us, chief. Eventually,
even though they have no guns now, these people could throw us out,
and we'd lose the best deal we ever had. What we've got to do is
to make them like it." Making them like it was the great
task of Iago and his group of fellow-theoreticians, and Hector and
his boys marvelled at the results. Iago fed to the people arguments
like the following: "This isn't tribute, it's u2018protection.'
We have to protect you for your own good. Otherwise, you'd start
killing and looting each other."
right, he's right," the people muttered. Hector and his gang
may be a bunch of rowdies, but at least he's protecting us from
ourselves." For the memories of the people are short.
Iago went on: "This isn't tribute, it's u2018protection.' We must
protect you from those butcher-birds on the other side of the mountain."
And these words took on a plausibility, for Hector's Gang, ever
eager for loot, began to send probing parties on the other side
of the mountain, and fighting periodically ensued. The people listened,
and they agreed. "That's right. Hector and his boys might be
a bad lot. But at least they're ours. They're not a bunch
of foreigners like those people on the other side of the mountain.
We need protection from them." The people forgot that there
had been no trouble with the people on the other side of the mountain
before. For the memories of the people are short.
is great, chief, but we need more measures and more theories to
keep these suckers contented," said Iago. And Hector and Iago
began to propagandize that all the people's children must be educated
in schools owned by and operated by Hector, Iago, and their Gang.
They called these schools "Valley Schools"; the "people's
schools." "Anyone who doesn't educate his kid in a Valley
School is undemocratic. He's anti-social and hates the people. In
fact, he's Un-Valley." Iago's scholarly-inclined henchmen,
calling themselves "economists" ("It's got a good
Greek sound, chief"), preached that "everyone really benefits
from being forced to pay for and attend Hector's Valley Schools
because if A is educated, then B is better off, and therefore B
should be forced to be educated, and A too…." And the people
listened, and nodded their heads; and the scholarly-inclined among
them listened and nodded their heads, too; and pretty soon they
became members of Hector's Gang, Scholarly Division.
wonders were achieved by Making Them Like It! Hector and his original
gang sent for all their relatives for hundreds of miles around;
and they all came and joined Hector's gang, and lived off the fat
of the land. The rate of tribute kept increasing, and so did the
numbers of the Gang. As the "take" kept going up, the
People began to grumble again. Iago and his men exhorted and admonished
the grumblers: "You are all selfish," they said, "because
you don't want to contribute and serve your brothers." (The
"brothers" were, of course, largely members of Hector's
Gang.) And the people, especially the moralists among them, nodded
their heads and agreed. They agreed that anyone who kept opposing
Hector and his Gang was "selfish, anti-social, and out for
his own gain and greed."
Hector and his Gang conscripted much of the valley people into a
giant labor force to build the Gang a gigantic palace on top of
the Valley's leading hill. It was a beautiful and imposing palace,
so everyone said. A few people grumbled at this coercion and waste.
Iago and his men thundered: "You miserable creatures! Here
is a great monument that we have built, a monument to the glory
and destiny and grandeur of Our Valley. And you, slackers and penny-pinchers,
would deny Our Valley its monument." "He's right,"
the people said, glaring angrily at the grumblers. "This valley
has the biggest palace of any valley in the land."
Hector and his Gang would go fight the people on the other side
of the mountain, to extend their territory and their area of loot.
At these times, they needed more men to fight, and so they would
again conscript valley people into their Gang. The conscripts, and
all the people, were taught that any resistance to this conscription
would not only be met with stern measures, but was also dire "treason"
against the Valley and its rightful government, Hector's Gang. The
old battle standard that Hector and his men used to raise before
going into the next town, Hector and Iago transformed into the "Valley's
Sacred Flag"; anyone who did not bow down to that flag — or
sing the old chanty that Hector and his Gang had always sung before
going off for a fight — was also branded a "traitor" and
dealt with accordingly.
indeed were some of the theories that Iago and his men wove in the
service of Hector and his Gang. For example, when an isolated Resister
would point to the process of theft that was now organized and continuing,
Iago's men said: "You know, you may have been right for the
previous historical era. Nowadays, times have changed, and our thinking
must change to suit the modern age. In the pre-Hector Era, this
process was indeed robbery. Nowadays, it is cooperation for the
common good and the welfare of the people of the Valley. And one
of the more brilliant of Iago's Economists said: "You people
don't realize that the moneys taken from you by Hector and his men
benefit you all enormously. For Hector and his men spend their money
— do they not? — in your shops and your markets. By this spending
they give you employment, they circulate the money supply, they
keep up mass purchasing-power, which is vital to the Valley Economy,
and they provide u2018built-in stability' for the economic system of
the Valley." The people listened, and they marvelled at the
wisdom. And Iago's men put the theory into complex mathematical
symbols; and the people marvelled, and Hector was overjoyed, and
the more scholarly among the people listened, and they soon joined
Iago's Division of Scholars.
could go on indefinitely to delineate the fascinating social structure
of this remarkable and surely unique valley. But the important point
to note is that, by the marvel wrought by Iago's propaganda, the
status of Hector and his Gang had completely changed from the old
and almost-forgotten days. Where once Hector and his Gang skulked
like criminals, were regarded by everyone with great contempt and
hatred as criminals, and were perpetually on the run, now a revolution
had truly occurred. Hector, Iago, and the rest were not criminals
but the Most Respected people in the land. Not only were they rich
from their chronic annual loot; they were feted by all, loved and
feared and honored by the people of the valley. Honors were heaped
upon them all. And all because their theft had become regularized,
openly proclaimed, and sweetly defended. Lolling on their divans,
Hector contentedly said to Iago, "Boy, we never had it so good."
Clapping Hector on the back, Iago said, "There's a sucker born
every minute." And, in the meanwhile, Iago's men were speaking
on the hustings before the people: "Our times call for great
sacrifices, for the willingness to give." And the people listened,
and they nodded their heads.
people agreed, or resigned themselves, to the rule of Hector. Those
few people, here and there, not swayed by Iagoan propaganda, were
taken care of by the Gang. If they became too adamant, they were
politely taken out and shot… as traitors to the Valley. "It's
too bad," said the people, "and I thought I knew Jim.
Of course, who could know that he was a traitor?" Everyone
agreed that stern times called for stern measures.
what had happened to the remnants of the People's Resistance? They
had no guns, the Resisters, but they fought on in the realm of ideas.
"The spirit, the idea, of liberty must be kept alive,"
they said. And so they circulated among themselves their love for
liberty and their recognition of who Hector and Iago and their men
were and what they were doing. And the thing that gave them most
sustenance was their shared credo: "Never forget. Hector is
a thief. Hector is a murderer. Hector and his gang are crooks and
tyrants, and, one day, they shall be kicked out of this Valley.
Hector is a thief and murderer." And what is Iago? Iago the
Resisters held in greater horror even than Hector. For Iago, they
pointed out, "is a man of intellect; his is a uniquely moral
failure. And Iago is keeping the regime alive by prostituting his
intellect in the service of himself and Hector, by duping the people
forget about Hector and Iago," they told each other. "Never
day there arose among the Resisters a leader; he was young and strong
and highly intelligent — a man of the truly heroic virtues. Affectionately,
the Resisters called him The Leader. The Leader scorned the counsel
of the Old Ones among the Resisters: the Old Ones had advised the
Resisters to write and speak against tyranny only in the abstract;
never to "get specific," never to mention Hector or Iago
or any of their deeds. "The Hell with that," the Leader
thundered before a meeting of the Resisters. "No wonder the
old ones are getting nowhere. We must write on the walls: Hector
is a thief; Hector is a murderer; Iago is a prostitute and a consort
of thieves and murderers. We shall drive them out!" The Resisters
cheered this young man in a thunderous ovation. Their hearts were
joyful; they had found their Leader.
have said before that Hector and Iago had effected a social revolution
in the Valley. Before they had been criminals; now they were the
most respectable and honored men of the valley. Now, on the contrary,
it was the Resisters who were the social outcasts, who were branded
criminals and traitors, who achieved no respectability at all. Now
it was the Resisters who had to lead a furtive existence.
day, the Leader had a Revelation. He was struck by a New Concept.
He was still young, but he now felt he had Matured. He called the
Resistance together to explain: "I want you to know,"
he proclaimed, "that I will never abandon the Resistance. Our
end — complete liberty — shall always remain unchanged. [Cheers.]
But these are new times and they require new concepts and new methods
to achieve our common goal. [Puzzled Murmurings.] We have been repeating,
again and again, the old slogans: Hector is a thief, Hector is a
tyrant, and so forth. These slogans have become tired clichés:
everybody knows them. [Murmurings: Everybody? Who but the Resisters
have listened to them?] Furthermore, we can never convince anyone
by remaining negative and always appearing to oppose change. Hector
and Iago were in a sense right when they accused us of being sour
and negative. From now on we must accent the positive! What we must
do is show them: to show Hector and Iago and all the rest that our
way is better than theirs. That we can achieve more good more efficiently
by voluntary methods than they can by coercion. Let us abandon sterile
and negative slogans, and let us show them by our actions and our
deeds that the voluntary way is the better way."
Leader was, as always, eloquent, and it was easy to sway the bulk
of the Resisters. "Let's at least give it a try," said
the bulk of these hungry, weary, and embattled men. And so the Leader
went up and down the valley, preaching the new gospel of the Positive.
he found that, where once he was treated as an outcast among the
Best People, he now found doors flung open wide in greeting. "You're
right," said more and more of the wealthy and respected. "In
the old days, when you and the others were going around denouncing
Hector and Iago, you were just a bunch of radical crackpots. Now,
by God, you're doing something constructive. And you're not making
people mad by attacking folks and institutions that they respect."
and support poured into the Leader's New Resistance movement. The
emphasis of the New Resistance was on the positive, voluntary way.
"Hector and Iago claim that theirs is the best way to promote
social welfare," the Leader thundered in a speech. "Hector
and Iago claim that compulsion is needed, for example, for the worthy
goal of feeding and housing Hector's relatives. But we know that
the voluntary methods of private people can do that job better and
more efficiently. Let us show them!" The crowd cheered, and
soon funds poured in for such projects as the voluntary care and
feeding of the relatives of Hector. "Never attack the high
rates of tribute," the Leader warned his men of the New Resistance;
"if we show the whole valley that we can do the job by voluntary
means, if we feed and clothe and house Hector's relatives, for example,
then Hector will eventually lower the rates of tribute. Let us be
up and moving!"
the Leader warned his men, "if we engage in negative thinking,
if we attack Hector and the others, we will lose the exemption from
tribute which they have kindly granted us. Let us always be practical!"
"Yes, let us always be practical," the men agreed
so the money poured in… from Resistance men and others, voluntarily
swelling the coffers of Hector and his Gang. The old Resistance
men abandoned their old negative preaching, and got down to the
hard, practical task of raising voluntary gifts for Hector's pet
projects — to show Hector and all the rest the superiority of the
Voluntary Way. And what was the reaction of Hector and Iago and
the rest? They sat at their periodic board meeting of the Gang,
reviewing the new stance of the Leader and the Resistance, and they
did only one thing: they laughed, and they laughed, and they laughed.
And finally Iago recovered a bit, and he said: "So, the sheep
themselves have supplied us with their own Judas goat!", and
they roared again with laughter.
was not long before the Leader was wined and dined by Hector, Iago,
and the rest, was asked to serve on consulting committees, was asked
to demonstrate ever more in action how the voluntary way could add
to the Gang's coffers. At a great annual convention of the Gang,
with many Resistance men this time invited, Iago, in his speech,
turned to the Leader, now seated also at the dais, and he said:
"Let us never forget, my friend, that our ends remain
always the same. It is only our means that differ. Let us
employ both yours and our means, and then let us achieve our common
goal in the best way." [Resounding cheers from everyone.]
so, what even Iago, with all his wiles, had been unable to quite
achieve, was now achieved; and peace and harmony had been fully
restored to the valley. The Resisters were now loyal, positive,
generous, and their former bitterness and hatred had been transmuted
into friendly and willing cooperation with Hector and his Gang.
course, there are always a few malcontents in every society, a few
rotten apples in every barrel. A couple of the Resisters began to
mutter: "The Leader said tribute would go down, if we voluntarily
supplied the rest; but, instead, tribute has gone up." ("There
are new needs for a troubled time," said Iago's men; "Patience,
we shall demonstrate," said the Leader's men.) One malcontent
Resister said to another: "At least in the time of the Old
Ones we could attack robbery and tyranny in the abstract; now we
can't even do that." And, secretly, covertly, in the dead of
night, tiny groups of dissenting Resisters met, and told one another:
"Hector is a thief. Hector is a murderer…."
one day a wondrous thing came to pass. As the Leader strode confidently
to a meeting with Hector and the others in Hector's splendid palace,
he chanced to look into one of the fine mirrors in the hall. Truly,
a miracle had been wrought; for when the Leader looked into the
mirror, the face he saw was the face of Hector.
N. Rothbard (1926–1995), the founder of modern libertarianism
and the dean of the Austrian School of economics, was the author
Ethics of Liberty and For
a New Liberty and many
other books and articles. He was also academic vice president
of the Ludwig von Mises Institute and the Center for Libertarian
Studies, and the editor – with Lew Rockwell – of The