I did not become a libertarian because I was persuaded by philosophical arguments — those of Ayn Rand or F. A. Hayek, for example. Rather, I became a libertarian because I was persuaded by my own experiences and observations of reality. There were three important lessons.
The first lesson was my personal experience of socialism. The second was what I learned about the consequences of government intervention from teaching a course on financial intermediaries and markets. And the third lesson was what I learned about the origin and evolution of government from my research into the sources of economic progress in preindustrial Europe and China.
Lesson 1. My Personal Experience of Socialism
In my youth, I was a socialist. I know that is not unusual. But I not only talked the talk, I walked the walk.
Growing up in England as a foreign‐ born Jew, I did not feel I belonged. So, as a teenager, I decided to emigrate to Israel. To further my plan, I joined a Zionist youth movement. The movement I joined was not only Zionist: it was also socialist. So, to fit in, I became a socialist. Hey, I was a teenager!
What do I mean by a socialist? I mean someone who believes that the principal source of human unhappiness is the struggle for money — “capitalism” — and that the solution is to organize society on a different principle — “from each according to his ability; to each according to his needs.” The Israeli kibbutz in the 1960s was such a society. The youth movement I joined in England sent groups of young people to Israel to settle on a kibbutz. When I was 18, I joined such a group going to settle on Kibbutz Amiad.
A kibbutz is a commune of a few hundred adults, plus kids, engaged primarily in agriculture but also in light industry and tourism. Members work wherever they are assigned, although preferences are taken into account. Instead of receiving pay, members receive benefits in kind: they live in assigned housing, they eat in a communal dining hall, and their children are raised communally in children’s houses, and can visit with their parents for a few hours each day. Most property is communal except for personal items such as clothing and furniture, for which members receive a small budget. Because cigarettes were free, I soon began to smoke!
Kibbutz is bottom‐ up socialism on the scale of a small community. It thereby avoids the worst problems of state socialism: a planned economy and totalitarianism. The kibbutz, as a unit, is part of a market economy, and membership is voluntary: you can leave at any time. This is “socialism with a human face” — as good as it gets.