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Theodor Hertzka and the Utopia of «Freiland»

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  • Peter Rosner

    (University of Wien - Department of Economics)

Abstract

Theodor Hertzka developed a blueprint for an ideal market society in the 1880s. Such a society should safeguard the advantages of free markets without having their ills, namely poverty. This can be achieved by abolishing the private ownership of land and by allowing individuals the freedom to enter and leave any co-operative at will. The first rule results in members of the co-operatives receiving all rents. The second has the consequence that these rents are dissipated because people will enter and leave the co-operatives according to expected income. What makes this utopian construction interesting is that Hertzka points to certain problems of a market economy which have since been on the agenda of mainstream economics. The paper points to similar ideas of Henry George and Theodor Herzl.

Suggested Citation

  • Peter Rosner, 2006. "Theodor Hertzka and the Utopia of «Freiland»," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 14(3), pages 113-137.
    • Handle: RePEc:hid:journl:v:14:y:2006:3:6:p:113-137
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