Explainer
Culture
Freedom
Liberalism
6 min read

On liberty’s limits: why Mill was wrong about freedom

This month, it’s 150 years since philosopher JS Mill died. His definition of freedom remains hugely influential. But is it still the right one for healthy relationships and contentment amid the isolation of modern life?

Graham is the Director of the Centre for Cultural Witness and a former Bishop of Kensington.

A copy of the Statue of Liberty, holding a stick of bread, stands outside a shop window displaying an 'Open 24 Hours' signs.
Photo by KC Welch on Unsplash.

You can tell what a society values by what it goes to war over. In the 17th century we fought our wars over religion. In the 19th it was empire. In the 20th and 21st, we fought our wars over freedom, either defending our own or trying to export our version of it to other parts of the world. We tend, of course, to assume we know what freedom is: the liberty to do what we like, as long as don’t harm other people. But we rarely know how time-conditioned and recent such a view of freedom is.  

John Stuart Mill, child prodigy, colonial administrator, Member of Parliament and philosopher, who died 150 years ago this year, is one of the primary architects of our contemporary ideas of freedom. In his own words, his book On Liberty, published in 1859, was an exploration of the ‘nature and limits of the power that can legitimately be exercised by society over the individual’. Mill famously argues that the only valid reason for interfering with another person’s liberty of action is to protect them from physical harm. It is never justifiable to interfere with another person’s freedom to ensure their happiness, wisdom or well-being, because that is to determine what that person’s well-being is. Freedom is defined as liberty of conscience, thought, feeling and opinion, as ‘liberty of tastes and pursuits … doing as we like … without impediment from our fellow creatures, so long as what we do does not harm them’. 

For Mill... individual liberty is vital, not just for the sake of the individual, but for the sake of human progress.

Mill is one of the great champions of nonconformity in thought and action. Even if just one person held a particular opinion while everyone else in the world held the opposite, there would be no justification in silencing that one voice. For Mill, one of the main ingredients of social progress is freedom from the traditions and customs imposed by others, both the past constraints of tradition, and the present ones of custom, which restrict the cultivation of individuality, which in turn ‘is one of the leading essentials of well-being’. Individual liberty is vital, not just for the sake of the individual, but for the sake of human progress. Without it there will be no originality or genius, no new discoveries or innovation. Civilisation cannot advance without individual freedom which encourages spontaneous expression, the development of new thoughts and ideas unconstrained by the patterns of the past.  

It is a powerful argument. On Liberty is full of the fear of Victorian conformity – the individualist’s reaction to a stifling society with a high degree of social control. It is very much a book of its time, assuming the cultural superiority of the modern age. It also breathes an elitism that looks down on the mediocrity of what it calls ‘average men’.  

But more than that, there is, I think, a deeper flaw in this way of thinking about freedom. If freedom is essentially my liberty to say or do what I like, as long as I don’t tread on the toes of my neighbour, then what does that do to my relationship with my neighbour? He or she becomes at best a limitation, or at worst a threat to my freedom. There may be all kinds of things I want to do – play music loud on a summer’s night, or drive my car at 100 mph on a quiet suburban road – but I can’t because I might disturb my neighbour’s peace or risk crashing into an oncoming bus. Or even worse, my neighbour might want to play her music too loud for me, or drive her car too fast in my direction, thus invading my personal space. This approach keeps the peace between us, but at the cost of making us see each other either as irritating limitations to our desires which of course define our self-chosen goals in life, or threats to our own precious autonomy. 

The German sociologist Hartmut Rosa argues that  

“the ethical imperative that guides modern subjects is not a particular or substantive definition of the good life, but the aspiration to acquire the resources necessary or helpful for leading one.”  

In other words, in the individualised world imagined by Mill, we are all left to dream our own dreams, choose our own ambitions, and are all caught up in the fight to get hold of the money, rights, friends, looks, health, and knowledge that will enable us to get to our self-chosen destination. It therefore makes us competitors with each other, not only seeing each other as rivals in this race for resources, but also as potential threats who might stand in the way of our freedom to pursue our dreams.  

There is however another, older view of freedom, rooted more in character and virtue than in individualised personal goals. This version, found in classical literature, sees liberty not as freedom from the limitations and social expectations that stop us following our self-chosen desires, but freedom from the passions. The Greeks viewed the soul as like a ship which should sail serenely towards the harbour of such virtues as prudence, courage and temperance. It was guided on this journey by paideia, or education in virtue, yet was at the same time buffeted by the winds of irrational and destructive impulses such as envy, anger or lust that threaten to blow it off course. For them, our passionate inner desires are not the sacrosanct moral guide to our true selves but are a distraction from the true path of virtue.  

True liberty is freedom from anything that would stop us becoming the person we were created to be.

This version was developed further by Christian thinkers such as St Paul, St Augustine and Thomas Aquinas. For them, true liberty is freedom from anything that would stop us becoming the person we were created to be: someone capable of love for what is not ourselves – for God and our neighbour. True liberty is freedom from internal urges such as the greed, laziness or pride that turn us in upon ourselves rather than outwards towards God and each other. It is also freedom from external forces such as the grinding poverty that dangles the temptation to steal in order to survive, or an economy that constantly tells us that if you don’t acquire as much stuff as your neighbour you are a failure. It is not so much freedom for ourselves, but freedom from ourselves: freedom from self-centred desires, or the crippling self-absorption that makes us think only of our own interests. It is freedom to create the kind of society where we are more concerned with our neighbours’ wellbeing than our own.  

In this view of freedom, my neighbour becomes not a limitation or a threat, but a gift – someone without whom I cannot become someone capable of the primary virtue of love. Putting it bluntly, if I am to become someone capable of other-centred love, I need someone to practice on.  

This Christian understanding of freedom offers a vision of society where you might begin to trust other people to look after your own needs, because they are looking out for yours. It is also a vision of freedom that delivers personal happiness better than the libertarian view. Becoming the kind of person who has learnt, as St Paul once put it, to ‘look not to your own interests, but to the interests of others’ is in fact a recipe for healthy relationships and contentment rather than the increasing isolation of much modern life.  

Mill may have had a point in the stifling conservatism of Victorian Britain, but in an age of increasing loneliness, isolation and anxiety, his view of freedom doesn’t help build good neighbourhoods, families or communities. We need a better version - one that brings us together, rather than drives us apart.

Article
Culture
Economics
Ethics
6 min read

The rights and wrongs of making money with meme coins

When does investing become speculating, or even addictive gambling?
A montage shows Trump with a raised fist against other images of him and the phrase 'fight fight fight'.
$Trump coin marketing image.
gettrumpmemes.com,

Donald Trump’s “liberation day” tariffs may have driven sharp swings in global financial markets, but his actions in markets a few months earlier were in some ways even more peculiar.

On the Friday before his inauguration as the 47th US President in January, the Republican surprised many with the launch of the $TRUMP memecoin, described by its website as “the only official Trump meme”. The cryptocurrency token, in which Trump’s family business owned a stake, initially soared in value to more than $14bn over that following weekend. 

Then, on the Sunday, Trump’s wife Melania launched her own memecoin, $MELANIA, which reached a value of $8.5bn. Even the pastor who spoke at the president’s inauguration subsequently launched his own memecoin. 

For those wondering what exactly a memecoin is, you are not alone. In short, they are a form of cryptocurrency - an asset class that itself has attracted plenty of questions about its substance and purpose - representing online viral moments. They have no fundamental value or business model and, according to the US securities regulator, “typically have limited or no use or functionality”. 

Donald and Melania Trump’s coins subsequently plunged in price, but still have a value of around $2.5bn and $214mn respectively, according to website CoinMarketCap. 

There are plenty of others in existence. PEPE, based on a comic frog, has a value of around $3.6bn; BONK, a cartoon dog, has a market cap of $1.5bn; and PNUT, a reference to a squirrel euthanised by authorities in New York and about which Trump was allegedly “fired up” (although doubt has since been cast on the president’s involvement in the matter), is still valued at around $174mn, despite having fallen sharply in price.  

Dogecoin, seen as the world’s first memecoin and originally created as a joke, boasts a market value of around $25bn. (There are other memecoins which may not be suitable for these pages). 

Some people’s willingness to buy an “asset” with no use or fundamental value may seem strange to more traditional investors. But it can be viewed as just one manifestation of the speculative investor behaviour evident since the onset of the coronavirus pandemic and, indeed, at times throughout history. 

The price of Bitcoin recently rose above $100,000, despite many investors still viewing it as having little or no value (in 2023 the UK’s Treasury select committee described cryptocurrencies as having “no intrinsic value, huge price volatility and no discernible social good”). In early 2021, shares in GameStop - a loss-making US video games retailer that some hedge funds were betting against - rocketed as much as 2,400 per cent, as retail investors piled in, many with the aim of inflicting pain on the hedge fund short sellers (in that respect at least, a highly successful strategy that became the subject of the film Dumb Money). The huge rise in AI and other tech stocks in recent years - until the recent tariff-driven volatility - has also been described as a bubble by some commentators. 

Whether or not such episodes can be compared to infamous bouts of speculative mania in history depends on your point of view (and often can only be judged with the benefit of hindsight) - be it the 17th century Dutch tulip bulb mania, shares in the South Sea Company in the 18th century or the dotcom boom and bust of the late 1990s and early 2000s. 

But it does give rise to the question of when investment should start to be described as speculation or even as gambling? And what are the rights and wrongs of any of those activities? 

There can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources... 

Gambling can be thought of as risking a stake on, for instance, the result of a game of chance or sport in the hope of a bigger payout. While often the result is purely down to chance, in some cases a strategy or an element of research (for instance of a horse or football team’s form) can be used. Investment, in contrast, tends to involve purported economic utility and assets believed to have some sort of underlying value, and holds the hope of future profit (although there are also plenty of bad investments or those that have gone to zero). While an investor must be prepared to lose their entire stake, in some cases such an event is relatively unlikely (for instance, if they buy a fund tracking the performance of a major stock exchange). Speculation is harder to define, but is generally seen as shorter term than investment, with more chance of a bigger gain or loss, and dependent on price fluctuations. Rightly or wrongly, the term has a more negative connotation than investment. 

One writer who explored the ethics of these activities was Oswald von Nell-Breuning, a Jesuit theologian and economist who served as an adviser to the Pope and who was banned from publishing under the Nazis. 

While he found that “one general definition cannot capture all the nuances” of speculation, he identified two different types of speculative activity - one that was purely trying to make a profit from financial market trading, and one based on trying to create a viable business. (See this article in the Catholic Social Science Review for a fuller explanation of Nell-Breuning’s views on speculation). 

As the CSSR article shows, Nell-Breuning found that there can be positive effects from speculation - one might think of better liquidity and price discovery in a market, while, in commodity futures markets, speculators allow producers to hedge risk

But he also argued that there can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources away from production. 

And whereas gambling typically takes place within a circle of players who have chosen to take part, speculation, he wrote, can affect a greater portion of society - for instance, if it affects the price of shares or bonds they hold. 

The Bible - on which Nell-Breuning’s faith and analysis was based - does not take a prescriptive approach to such activities. But it does provide some interesting guidance.  

An entrepreneurial approach to business and investment is applauded, for instance when the writer of the book of Proverbs (traditionally believed to be King Solomon) praises the virtues of “an excellent wife”. These include investing in a field and using her earnings from business to plant a vineyard, and feeding her family from her gains. 

Jesus tells a story of a master who, before going on a journey, gives his property to his servants, each according to their ability. To one he gives five “talents” (a large unit of money), to a second two and to a third servant he gives one. 

The first servant trades with his talents and makes five more talents - a 100 per cent profit - and is applauded by the master on his return. The second servant also trades and similarly makes two more talents and is again applauded. 

But the third servant, being afraid and believing the master to be “a hard man”, hides the money in a hole in the ground. He is condemned as “wicked and slothful”, and told that he should at least have put the money in the bank. 

While Jesus’s story may primarily be about how we view God’s nature, how we use our God-given abilities and whether or not we can take risks in faith for Him, it is also hard not to see investment and indeed wise speculation as being virtuous activities here. Putting the money into a bank account is, in this story anyway, more of a fallback option. 

But the Bible also warns us against putting money above all else in our lives. The love of money is, famously, a root of all sorts of evil, while we are also told to be content with what we have, and that “wealth gained hastily will dwindle”. 

Nell-Breuning similarly warns that a “get-rich-quick” mindset, when this is placed above all else, can be harmful, and advises caution in situations where the lure of big profits can lead the speculator into market manipulation or fraud. 

After all, both gambling and crypto trading have the potential to become dangerous and damaging addictions needing treatment

Ultimately, Nell-Breuning struggled to come to a simple conclusion on the question of whether speculation, in and of itself, is morally wrong. It is, he wrote, a judgment call for those involved. 

When making such decisions ourselves, his - and the Bible’s - warnings may be worth bearing in mind.