EKIP– Expert Club for Economics and Politics A Different Opinion
In modern times, economic knowledge with claims to scientificity is highly specialized. To the extent that even professionals do not understand and do not know all its aspects. On the one hand, economic science uses the achievements of a number of other sciences, but on the other hand, it analyzes all aspects of human existence. The described situation is a result of the natural division of labor and the evolution of knowledge about the economy. It also has negative aspects. The complicated and over-mathematical theoretical constructions of economic science allow for the justification of almost any ideas for economic policy, even when they contradict the statements of common sense.
Bulgarian economic science seems to be immune to the "sins" of originality and theoretical complexity. However, it willingly accepts advice from all kinds of economic thinkers and shamans. It is for this reason that it is worth paying attention to the roots of specialized economic knowledge among Bulgarians. Because they lack the corruption of claims to know the basic mechanisms of the economy and the related desire to "fix" the shortcomings of society.
The first textbook and the reasons for its publication
The first economics textbook in Bulgarian is a translation of a popular science text. The translation is from German, the author of the original is the not very famous Otto Hübner. The textbook was printed in 1868 with the title "Beginning of Political Economy" and the subtitle "Book for Schools and the People". The translator is Nikola Mihaylovski. The purpose of the publication is remarkable. In the preface, the author specifies that the writing and distribution of the book was prompted by " The success that for several years the false and destructive ideas, to which they have given the name communism and socialism, have had". Obviously, the desire of socialists and communists to abolish private property and the spread of this idea presupposes the need to recall basic economic axioms.
Hübner believes that the success of socialism and communism is due to shortcomings in the educational system, which does not sufficiently develop the popular mind and leaves people in ignorance of what we define as " mine and yours ". The antidote to communist and socialist principles, which the author proposes, should be taught in schools. Thus, according to Hübner, neglect of private property as the basis of socio-economic development will not be allowed.
The Bulgarian translator of the text provides some additional explanations for the readers. They relate to the essence of the then unknown science of political economy. He writes: “ Political Economy is a science for the welfare of societies and for the well-being of each individual person.” It is striking that in N. Mihaylov’s definition the social and individual characteristics of political economy are combined in an appropriate way. He achieves the difficult balance between collective and individual. Unfortunately, this balance is an extremely rare characteristic of Bulgarian historical development.
The division of labor and trade
The textbook presents in the form of a dialogue some of the elementary, but often forgotten and/or omitted economic truths. Among them, the idea of the importance of the division of labor is worth noting first of all. The author simply and clearly describes how the division of labor allows for the peaceful cooperation of hundreds and thousands of unknown people involved in the production of even the most elementary consumer goods. He points out that the division of labor results in technical progress, which in turn allows for the cheaper production of all types of goods. And the cheaper prices of goods are nothing more than an increase in the standard of living of people, i.e. it is not so much the rich that benefit from it as the poor segments of the population.
Collectivist and anti-market ideologies very often declare themselves against trade and emphasize the harmful role of intermediaries. However, Otto Hübner recalls that “ Where [ exchange ] does not take place, there can be no division of labor, and poverty and barbarity are an inevitable condition of human life.” Traders and various intermediaries are not simply a necessary evil or a parasitic appendage to the labor of producers. Trade and the market are necessary conditions for the division of labor, and from there for the improvement of living conditions and, in general, for the overall civilization of societies.
The ideas underlying the textbook are not foreign to Bulgarian society. Regarding the importance of trade and harmony in interests between different social classes, it is worth quoting an article in the newspaper "Den" from 1875, where it is said: " A French writer Montaigne said: "The evil of one makes the good of another: that is, when one becomes bad, it improves the other". Let the genius of this famous man forgive us if we say that the opposite is true. Political economy maintains and has proven that when one is good, the other is also, that when one is bad, the other also becomes bad." Here we see a logical and well-founded rejection of the so-called Montaigne fallacy - a view later supported in the writings of the American economist and libertarian philosopher Murray Rothbard.
The role of money and the state
The role of money in society is clarified for the readers of the textbook. To a large extent, in the spirit of the Austrian school of economic thought, money is presented primarily as a means of exchange that allows the division of labor to take place. And for all those who believe that money is a source of demoralization, it is recalled that money is extremely important from the point of view of carrying out charity. After all, what charitable deed can a person perform who produces things that the poor or needy do not need? And money allows everyone to perform any charity - as long as they make the effort to earn it with their own labor.
The role of the state and government officials is also presented in a classical liberal spirit. In short, it consists of protecting property, maintaining public order and infrastructure. Anything above these functions is an unacceptable excess of activities appropriate for the state. By the way, this idea was also not completely foreign to the representatives of the Bulgarian Renaissance intelligentsia. A year after the publication of the translated textbook on Political Economy, an editorial in the newspaper "Pravo" noted: " No institutions, no matter how good they are, can [give] people real help. Perhaps the greatest thing they can do is give people freedom to develop and the opportunity to improve their personal situation themselves. It is strange, however, that people are inclined to think that their happiness can be restored only through institutions, and not through their own way of acting. Such a false opinion has always been the reason for exaggerating the importance of legislation...".
Private property as the basis of progress
Hübner rightly writes that the most important prerequisite that allows the division of labor, trade, increased production, etc. to take place is private property. Private property is acquired mostly by the diligent and hardworking, not by the lazy. Again in the spirit of classical liberalism, the textbook states that property belongs to the one who created it through his labor. A possible division of property equally among all will not bring the expected effect, because people are different and the lazier ones will lose their property, while over time the more enterprising and hardworking will again accumulate greater property. Ultimately, the author convincingly proves that "the division of property does not enrich the poor", on the contrary, it creates conditions for perpetuating poverty.
The idea of the importance of private property was further developed in a number of later publications in the Renaissance press. Perhaps this was most clearly done in the newspaper "Den" of March 19, 1875: "... property is not imposed at all as an exploitation of man, but is a great service to the whole world, it is the pretext of freedom, we can say that it is very useful. It helps to multiply works, and since all works are destined for man, it makes the division of each greater."
Closing remarks
At its roots, specialized economic knowledge among Bulgarians is based on several fundamental principles: private property, personal responsibility, entrepreneurial activity and a minimal state. They could become the basis of a meaningful economic policy. But they do not. Because their application does not create government jobs for intellectuals and political entrepreneurs. The listed principles seem doomed if they are left in the hands of people who have something to lose from their application. Therefore, they should not be left to them alone.
