Lecture I

The usual demand of the social democrats for the socialization of the means of production would naturally lead to the paralysis of the spiritual qualities, the spiritual talents of the people. This is something that is impossible to carry out. But just think, for example - of course, one can think of it in the most varied way -: Whoever has certain talents for some branch of the economy will be able to obtain capital in completely free competition, namely, saved capital, which he collects as a loan. Of course, there can be intermediaries; I reduce the process to the simplest form, so to speak. The person concerned will make certain claims for his intellectual achievement, for his leadership achievement, for his leadership. Once a real contract is concluded between employer and employee - the contract usual today is only a sham - the employee will realize that his interests are best represented if the entrepreneur manages the enterprise well with his individual powers, but without owning it. And this is possible precisely when the entrepreneur originally sets the demand for his intellectual performance on his own initiative and negotiates it with the workers. If this demand cannot be fulfilled, the entrepreneur must go down with his demand. But the demand must be made originally from completely free initiative. If the entrepreneur does not find any customers, he must go down, which goes without saying. But now it must remain so. He now draws from the enterprise nothing more than the agreed share, which, if his work increases, can be increased. But it remains interest. In addition, there is the productivity of the means of production itself, the profit that comes out of the enterprise. These are two quite different things, that which one acquires through one's intellectual effort and that which comes out of the enterprise. It is quite different to work with means of production than to put one's saved capital into means of production. These things are not distinguished today. These things will be distinguished in the healthy social organism.