Freedom and Prosperity in Liechtenstein: A Hoppean Analysis | Mises Institute

The work of economist and political philosopher Hans-Hermann Hoppe, specifically his seminal book Democracy The God That Failed: The Economics and Politics of Monarchy, Democracy, and Natural Order gives us a framework for analyzing Liechtenstein s development. In his book, Hoppe argues that, contrary to popular belief, the historical transition from monarchy to democracy represents decline, not progress. Hoppe offers a two-part thesis to support his theory. First, monarchs, unlike democratic rulers, tend to have low time preferences; therefore, they avoid, if at all possible, wars and high taxes for fear of hurting the state s long-term capital value. Second, there is a clear distinction between rulers and ruled under a monarchy; this class consciousness, as Hoppe calls it, encourages the public to resist governmental excesses.3

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