This file is a short, single-author essay in political economy and moral philosophy. Sennholz’s scope is deliberately broad: he moves from the division of labor to the ethical foundations of economic systems, then to democratic politics as a mechanism by which coercion and redistribution are made legally respectable.
The essay begins with cooperation as the basic fact of economic life. Human prosperity depends on production through exchange, not isolated self-sufficiency.
Most economic goods that sustain and enrich our lives can be attained only in cooperation with other people.
From there Sennholz frames the central institutional contrast: voluntary exchange versus command. The market is a contractual order of private ownership; socialism or command planning is a political order in which labor and property are directed by officials. His point is not merely economic efficiency, but moral structure.
Each economic system rests on a distinct ethical order that provides answers to questions such as: Why and when is an economic act called “good” or “bad,” “right” or “wrong”? What standard of conduct is acceptable and commendable or distasteful and repugnant? What is virtue in economic life?
The command system is criticized as internally unstable: if production is demanded “according to ability” while distribution is promised “according to needs,” supply contracts and claims expand, requiring coercive administrators. By contrast, capitalism is presented as dependent on the moral prohibitions against theft, violence, and fraud.
The market order or capitalism finds its answers in the Judeo-Christian code of morality.
The essay’s decisive move is to apply these commandments not only to private persons but also to democratic majorities. Sennholz argues that people who would not steal individually often endorse political transfers collectively. Majority rule, in this account, does not transform coercion into justice; it merely changes the instrument by which property is taken.
Invoking the rights of the majority, they take, catch, and capture, and lay hands on any income and benefit they desire.
This leads to the essay’s public-choice dimension. Business and labor are treated not as moral opposites but as rival pressure groups seeking favors through legislation. Tariffs, quotas, licensing, transfer payments, and compulsory benefits are all examples of legalized extraction. Sennholz’s language is intentionally severe because he wants to deny that democratic procedure alters the moral nature of the act.
Yet, theft is theft, no matter who perpetrates it and whether it takes from business or labor, from the rich, the poor, or the middle classes.
Inflation receives special attention as a hidden form of redistribution. Unlike ordinary taxation, it works indirectly through monetary depreciation, benefiting government and politically connected recipients while harming savers, pensioners, and people on fixed incomes.
A very popular form of thievery is inflation. It takes property away from millions of unsuspecting individuals and enriches politicians and their favorites by printing and emitting ever-new quantities of money.
The discussion of public debt extends the same moral logic. Government borrowing permits present political benefits while deferring costs; inflation then becomes the temptation by which repayment is evaded. Sennholz’s argument is that collective action allows citizens to participate in policies they would condemn in ordinary neighborly relations.
The spenders have no intention whatever to repay the debt; they will inflate it away.
The closing examples—tax-financed education, estate taxes, inheritance taxes, regulation, and inflation—return the essay to its ethical thesis. Political society creates a split moral consciousness: private morality condemns taking, but public morality often blesses it when done by statute, ballot, or bureaucratic rule.
Indeed, there are two souls in our breasts, one that seeks to live by Judeo-Christian principles, and one that loves to steal and plunder, especially by majority vote.
The relevance of “Majority Vote” lies in its austere challenge to democratic legitimacy. Sennholz does not deny that majority decisions can be legal; he denies that legality is sufficient for justice. The essay’s core conceptual move is to collapse the supposed moral distance between private theft and politically authorized redistribution, insisting that coercive taking remains coercive even when approved by 51 percent. Its structure is simple but cumulative: cooperation requires moral order; the market rests on property, contract, and honesty; command systems require coercion; democratic pressure groups exploit law; inflation and debt conceal redistribution; and majority vote becomes, in the end, not a safeguard against plunder but one of its most effective disguises.
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