On his Substack, David Friedman considers some of the things that George Orwell was mistaken about in his non-fiction writings:
It cannot be said too often – at any rate, it is not being said nearly often enough – that collectivism is not inherently democratic, but, on the contrary, gives to a tyrannical minority such powers as the Spanish Inquisitors never dreamed of. (George Orwell, The Observer, April 9, 1944)
George Orwell got some things right; unlike most political partisans, he saw the problems with the position he supported. He also got quite a lot of things wrong. The quote is from Orwell’s review of two books, The Road to Serfdom by Friedrich Hayek and The Mirror of the Past by K. Zilliacus, a left-wing writer and politician. The conclusion of the review is that Hayek is right about what is wrong with socialism, Zilliacus is right about what is wrong with capitalism, hence that “the combined effect of their books is a depressing one”.
But Zilliacus was wrong about capitalism, as was Orwell, who wrote:
But he [Hayek] does not see, or will not admit, that a return to “free” competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the State. The trouble with competitions is that somebody wins them. Professor Hayek denies that free capitalism necessarily leads to monopoly, but in practice that is where it has led, and since the vast majority of people would far rather have State regimentation than slumps and unemployment, the drift towards collectivism is bound to continue if popular opinion has any say in the matter. (“As I Please”, pp.117-119)1
The problem is that Orwell, like many of his contemporaries (and ours), did not understand economics and thought he did. Since he wrote we have had extensive experience with free competition, if not as free as Hayek would have wanted, and the result has not been the nightmare that Orwell expected. “The trouble with competitions is that somebody wins them” sounds right only if you don’t actually understand the logic of a competitive market. In most industries organizational diseconomies of scale, the effect of more layers between the head office and the factory floor, limit the size of the firm to something considerably below the size of the market for what the firm produces. In some fields, such as restaurants or barber shops, the result is an industry with thousands of firms, in some five or ten, in only the rare case of a natural monopoly can one large firm outcompete all of its smaller competitors.
The effect of free competition is not the only thing that Orwell got wrong. Consider his essay on Kipling.2 He gets some things right, realizes that Kipling is not a fascist, indeed less of one than most moderns, and recognizes his talent:
During five literary generations every enlightened person has despised him, and at the end of that time nine-tenths of those enlightened persons are forgotten and Kipling is in some sense still there.
But he gets quite a lot wrong. In arguing that Kipling misunderstood the economics of imperialism, Orwell writes:
He could not understand what was happening, because he had never had any grasp of the economic forces underlying imperial expansion. It is notable that Kipling does not seem to realize, any more than the average soldier or colonial administrator, that an empire is primarily a money-making concern.
In explaining his own view of the logic of empire, what he thought Kipling was missing, Orwell writes:
We all live by robbing Asiatic coolies, and those of us who are “enlightened” all maintain that those coolies ought to be set free; but our standard of living, and hence our “enlightenment”, demands that the robbery shall continue.3
Britain let go of its empire, starting with India. British standards of living did not collapse; by the time all of the colonies were independent, the average real wage in the UK was 50% higher than when Orwell wrote. He could not know the future but he could observe that Switzerland, before the war, was richer than England, Denmark, with no significant colonies, almost as rich, Portugal, with an enormous African empire, much poorer. Whether Britain ran its empire at a net profit or a net loss is, I think, still an open question, but Orwell’s view of colonialism is strikingly inconsistent with the observed effects of decolonization.
Economics is not all that Orwell got wrong about Kipling; he badly underestimated the quality of Kipling’s work, due to having read very little of it. The clearest evidence is Orwell’s description of The Light that Failed as Kipling’s “solitary novel”. Kipling wrote three novels, of which that is by a good margin the worst. Orwell not only had not read Kim, Kipling’s one world class novel, he did not know it existed. In a recent post I listed eighteen works by Kipling that I liked. Orwell mentions only one of them.
- That free capitalism would ultimately fail was still Orwell’s view in 1947:
In North America the masses are contented with capitalism, and one cannot tell what turn they will take when capitalism begins to collapse (“Toward European Unity“)
- Discussed in more detail in an earlier post.
- As late as 1947, Orwell wrote:
The European peoples, and especially the British, have long owed their high standard of life to direct or indirect exploitation of the coloured peoples. (“Toward European Unity“)
