Libertarianism In Austria: A True Freedom?

Austrian politics operates within a constitutional framework of a federal semi-presidential republic, with a multi-party system. The country's libertarian leanings are reflected in its economic policies, with libertarian ideals influencing the Austrian School of Economics. However, Austrian economics is distinct from libertarianism, with the former being a scientific enterprise and the latter being advocacy based on policies implied by liberty. Libertarianism in Austria is represented by various individuals, organisations, and publications, with some libertarian parties gaining traction in the country.

Austrian Economics vs Libertarianism

Austrian Economics and Libertarianism are two distinct schools of thought that share some similarities but also exhibit key differences. While Austrian Economics is a heterodox school of economic thought that emerged in 1871 in Vienna, Libertarianism is a political philosophy that encompasses various strands, including right-libertarianism and left-libertarianism.

Austrian Economics:

Austrian Economics, also known as the Austrian School, emphasizes methodological individualism, arguing that social phenomena arise primarily from the actions and motivations of individuals. This school of thought advocates for strict adherence to the concept that economic theory should be derived from basic principles of human action. Notable figures associated with Austrian Economics include Carl Menger, Eugen von Böhm-Bawerk, Friedrich von Wieser, Ludwig von Mises, and Friedrich Hayek.

Libertarianism:

Libertarianism, on the other hand, is a broader political philosophy characterized by a strong commitment to individual liberty and a skepticism of state authority. Right-libertarianism, the most common form in the United States, emphasizes capitalist property rights, free-market distribution of resources, and civil liberties. Left-libertarianism, on the other hand, combines self-ownership with an anti-authoritarian approach to property and income.

Similarities between Austrian Economics and Libertarianism:

Both Austrian Economics and Libertarianism share a skepticism of government intervention and a preference for laissez-faire economics. They often align in their support for individual freedom and opposition to centralized state control. Additionally, some libertarian economists have drawn on Austrian Economic theories to support their ideological positions.

Differences between Austrian Economics and Libertarianism:

The key difference lies in their scope and focus. Austrian Economics is specifically an economic theory, concerned with methodological individualism and the role of human action in shaping economic phenomena. In contrast, Libertarianism is a political philosophy that extends beyond economics, encompassing views on social issues, individual rights, and the role of the state. While some libertarians embrace Austrian Economics, others may favor alternative economic schools, such as the Chicago School.

Furthermore, Austrian Economics does not inherently advocate for any particular political ideology, including libertarianism. It provides a framework for understanding economic behavior but does not prescribe a specific set of political beliefs. Libertarianism, on the other hand, is explicitly a political philosophy with distinct ideological commitments.

Anarchism in Austria

It wasn't until the middle of 1907 that anarchist propaganda resurfaced in the German language within Austria, in the form of a fortnightly paper entitled "Wohlstand für Alle" (Welfare for All). This publication succeeded where previous attempts had failed, persisting until at least 1913 and serving as a beacon for the anarchist cause in the country.

The Austrian anarchist movement faced significant challenges, including the conversion of workers to conservatism by the Social Democracy. However, through persistent struggle, anarchism gradually gained traction among the workers, offering a more appealing vision than Social Democracy and attracting valuable adherents.

The German-speaking anarchist movement in Austria advocated communist economic ideals and propagated the ideas of thinkers such as Kropotkin and Reclus. It had various groups dedicated to theoretical agitation and syndicalist activity, with the latter serving as a means to the former. Developing in a predominantly Catholic country, the movement also reflected Tolstoy's annihilation of churchism as contrary to the "genesis" of Christianity.

Overall, anarchism in Austria has a history rooted in the labour movement and Marxist ideology, facing opposition from both the government and the "moderate" Social Democrats. Despite challenges, the movement persisted and found resonance among a segment of the population, contributing to the broader anarchist and syndicalist currents in German-speaking countries.

Austrian Libertarianism

Right-libertarian political thought is characterised by the strict priority given to liberty, with the need to maximise individual freedom and minimise the scope of public authority. Right-libertarians typically see the state as the principal threat to liberty. This anti-statism is based on strong individualism, which places less emphasis on human sociability or cooperation. Right-libertarian philosophy is also rooted in the ideas of individual rights and laissez-faire economics.

Right-libertarians make no distinction between capitalism and free markets, viewing any attempt to dictate the market process as counterproductive. They emphasise the mechanisms and self-regulating nature of the market, portraying government intervention and attempts to redistribute wealth as invariably unnecessary and counter-productive. Although all right-libertarians oppose government intervention, there is a division between anarcho-capitalists, who view the state as an unnecessary evil, and minarchists, who support the need for a minimal state, often referred to as a night-watchman state.

Right-libertarians are economic liberals of either the Austrian School (majority) or the Chicago School of Economics (minority). They support laissez-faire capitalism, which they define as the free market, in opposition to state capitalism and interventionism.

The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result primarily from the motivations and actions of individuals along with their self-interest. Austrian-school theorists hold that economic theory should be exclusively derived from basic principles of human action. The Austrian School originated in 1871 in Vienna with the work of Carl Menger, Eugen von Böhm-Bawerk, Friedrich von Wieser, and others.

The Austrian School theorises that the subjective choices of individuals, including individual knowledge, time, expectation, and other subjective factors, cause all economic phenomena. Austrians seek to understand the economy by examining the social ramifications of individual choice, an approach called methodological individualism. It differs from other schools of economic thought, which have focused on aggregate variables, equilibrium analysis, and societal groups rather than individuals.

Libertarianism in Europe

Libertarianism in Austria, as in other parts of the world, is a political philosophy that emphasizes individual liberty, free markets, and limited government intervention. Austrian libertarianism, specifically, has a rich history and has played a significant role in shaping the country's economic and political landscape.

Austria's political system is characterized by a federal semi-presidential republic with a multi-party landscape. The country's first attempt at republican governance after World War I was challenging due to the economic burden of war reparations. However, during this period, Austria made pioneering reforms, particularly in Vienna, which served as models for the social-welfare states of post-World War I Europe.

Austrian libertarianism has also been associated with the Austrian School of Economics, which is a distinct tradition of economic thought that emphasizes individual freedom, market forces, and a limited role for the state in economic affairs. The Austrian School, founded by Carl Menger in the late 19th century, views economics as a study of "human action," focusing on individual choices and preferences rather than collective or aggregate trends.

One of the key distinctions between Austrian economics and other schools of thought is its methodology. Austrian economists reject the use of mathematical models and quantitative data, arguing that human behavior cannot be accurately predicted or quantified. Instead, they favor a more qualitative, narrative approach to understanding economic phenomena.

In terms of political parties, libertarian ideals are reflected in various Austrian parties, such as the Liberal Forum (LIF), which split from the Freedom Party of Austria (FPÖ) in 1993. The LIF advocated for libertarian ideals but failed to gain significant traction, falling below the 4% threshold required for representation in the lower house of parliament in the 1999 election.

More recently, the NEOS – The New Austria and Liberal Forum, formed through a merger of the LIF and NEOS in 2014, achieved their best result in the 2019 National Council elections, winning 8.1% of the votes and 15 seats. However, this was still not enough to qualify them as a viable junior coalition partner.

Overall, while libertarianism in Austria has had its influence, it has not dominated the political landscape, with the country's recent history being characterized more by competition among multiple parties, including conservative, social democratic, green, and right-wing populist forces.

Libertarianism by country

Libertarianism in Austria

Libertarianism in Austria is a topic that covers individuals, organisations, publications, events, and other subjects that are relevant to the political philosophy within the country. Austrian libertarianism and anarchism are two of its subcategories.

Austrian politics is characterised by competition among multiple parties, with a Conservative-Green coalition government formed in 2020, and a Green Party leader elected as president in 2016. The country has a semi-presidential federal republic system, with a chancellor as the head of government and a president as the head of state. The country's political landscape has been dominated by the conservative Austrian People's Party (ÖVP) and the centre-left Social Democratic Party of Austria (SPÖ) for decades, but newer parties like the Greens and NEOS have gained prominence more recently.

The Liberal Forum (LIF), founded on libertarian ideals, split from the Freedom Party of Austria (FPÖ) in 1993. However, in the 1999 election, they failed to gain representation in the lower house of parliament. The LIF later merged with NEOS in 2014, and the merged entity achieved its best result in the 2019 National Council elections with 8.1% of the votes and 15 seats.

Austrian Economics and Libertarianism

Austrian economics and libertarianism are related, but distinct concepts. Austrian economics is a scientific enterprise based on liberty of the will, while libertarianism is an advocacy based on policies implied by such liberty. While Austrian economics is positive, libertarianism is normative, and they can support each other.

Some libertarians support the Chicago school of economics instead of the Austrian school. Notable libertarians who support the Chicago school include Milton Friedman, David Friedman, Thomas Sowell, and Bryan Caplan.

Frequently asked questions