Quote by Arnold Hauser

“The essence of the Industrial Revolution consists in the triumph of this principle over the medieval and mercantilist regulations. Modern economy first begins with the introduction of the principle of laissez-faire, and the idea of individual freedom first succeeds in establishing itself as the ideology of this economic liberalism. These connections do not, of course, prevent both the idea of labour and the idea of freedom from developing into independent ethical forces and from often being interpreted in a really idealistic sense. But to realize how small a part was played by idealism in the rise of economic liberalism, it is only necessary to recall that the demand for freedom of trade was directed, above all, against the skilled master, in order to take away from him the only advantage he had over 55 the mere contractor. Adam Smith himself was still far from claiming such idealistic motives for the justification of free competition; on the contrary, he saw in human selfishness and the pursuit of personal interests the best guarantee for the smooth functioning of the economic organism and the realization of the general weal. The whole optimism of the enlightenment was bound up with this belief in the selfregulating power of economic life and the automatic adjustment of conflicting interests; as soon as this began to disappear, it became more and more difficult to identify economic freedom with the interests of the general weal and to regard free competition as a universal blessing.”

Quote by Arnold Hauser