IV

Let us clear from the ground the meta-physical or general principles upon which,from time to time, laissez-faire has beenfounded. It is not true that individualspossess a prescriptive “natural liberty” intheir economic activities. There is no “com-pact” conferring perpetual rights on thosewho Have or on those who Acquire. Theworld is not so governed from above thatprivate and social interest always coincide. Itis not so managed here below that in practicethey coincide. It is not a correct deductionfrom the Principles of Economics that en-lightened self-interest always operates in thepublic interest. Nor is it true that self-interest generally is enlightened; more oftenindividuals acting separately to promote theirown ends are too ignorant or too weak toattain even these. Experience does not showthat individuals, when they make up a social

39