Claude Frédéric Bastiat

Claude Frédéric Bastiat (French: [klod fʁedeʁik bastja]; 30 June 1801 – 24 December 1850) was a French economist, writer, legislator, and a prominent member of the French Liberal School. He was a staunch advocate of free markets and laissez-faire economics, and his work is celebrated for its clear articulation of economic principles, particularly the concept of opportunity cost (often termed "the seen and the unseen") and his incisive critiques of protectionism and socialism through witty parables and essays. His writings remain influential among classical liberals and libertarians.

Frédéric Bastiat was born in Bayonne, Aquitaine, a port town in the south of France on June 30, 1801. His father, Pierre Bastiat, was a prominent businessman. His mother died in 1808 when Frédéric was seven years old. His father moved inland to the town of Mugron, with Frédéric following soon after. Pierre Bastiat died in 1810, leaving Frédéric an orphan at the age of nine. He was then raised by his paternal grandfather and his aunt, Justine Bastiat.

He attended a school in Bayonne, then switched to the prestigious Collège de Sorèze, where he excelled in languages and literature. At 17, he left school to work in his uncle's export business in Bayonne, which gave him firsthand experience of the detrimental effects of trade restrictions. When his grandfather died in 1825, Bastiat inherited the family estate in Mugron, enabling him to live as a gentleman farmer and scholar for the next two decades. During this period, he avidly read political economy, particularly the works of Adam Smith, Jean-Baptiste Say, and Destutt de Tracy.

Bastiat's public career was relatively short but impactful. He began his intellectual pursuits in relative isolation in Mugron, where he became a justice of the peace in 1831 and a member of the General Council of Landes in 1832.

His national prominence began in 1844 when he sent an article on the effects of French and English tariffs to the prestigious Journal des économistes . The article, "The Influence of English and French Tariffs," was published to acclaim and launched his career as an economic writer. He subsequently moved to Paris to continue his work, becoming a secretary of the Free Trade Association (Association pour la Liberté des Échanges) and editor of its journal, Le Libre Échange .

Following the French Revolution of 1848, he was elected to the National Constituent Assembly and later to the Legislative Assembly in 1849, representing Landes. As a legislator, he fought against socialist and protectionist policies, often finding himself in the minority. He worked tirelessly, writing articles, pamphlets, and speeches, despite his rapidly deteriorating health due to tuberculosis.

Bastiat's contributions are characterized by their clarity, wit, and unwavering defense of individual liberty and economic freedom.

Perhaps Bastiat's most enduring contribution is his articulation of opportunity cost in his essay "Ce qu'on voit et ce qu'on ne voit pas" ("What is Seen and What is Not Seen"). He argued that good economic decision-making requires considering not only the immediate, visible consequences of an action (the "seen") but also its longer-term, less obvious, and often dispersed consequences (the "unseen"). This includes the alternative uses of resources that are forgone.

A famous application of "the seen and the unseen" is the "parable of the broken window." Bastiat refuted the notion that destruction can create prosperity. While breaking a window visibly creates work for a glazier (the seen), it diverts resources from other, more productive uses that the shopkeeper would have otherwise undertaken (the unseen). The community is poorer by the value of the window.

In his seminal work, The Law (La Loi, 1850), Bastiat argued that the proper purpose of law is to defend the individual's God-given rights to life, liberty, and property. He contended that when law extends beyond this defensive role to engage in "legal plunder"—using the force of law to take from some individuals and give to others (e.g., through tariffs, subsidies, progressive taxation, or socialist schemes)—it perverts its purpose and becomes an instrument of injustice.

Bastiat was a fervent advocate for free trade. He used satire and logic to expose the fallacies of protectionism. His "Candlemakers' Petition" is a classic example, where candlemakers petition the government to block out the sun to protect them from its "unfair" competition in providing light. He argued that protectionism benefits a few producers at the expense of many consumers and overall economic well-being.

Consistent with his views on law, Bastiat advocated for a strictly limited government. He believed the state's legitimate functions were to protect individual rights, enforce contracts, and maintain peace. Intervention beyond these functions, he argued, inevitably leads to legal plunder and a reduction in liberty and prosperity.

In his unfinished treatise, Economic Harmonies (Harmonies économiques), Bastiat argued that the free market, when unhampered by government intervention, naturally leads to a harmony of interests among individuals. He believed that voluntary exchange benefits all parties involved and that individual self-interest, pursued within the bounds of justice, contributes to the general welfare. This stood in contrast to socialist theories of inherent class conflict.

Bastiat was a prolific writer, especially in the last six years of his life. His key works include:

• Economic Sophisms (Sophismes économiques, Series I 1845; Series II 1848): A collection of essays debunking protectionist arguments with wit and logic.
• The Law (La Loi, 1850): A powerful pamphlet outlining his theory of law and justice.
• What is Seen and What is Not Seen (Ce qu'on voit et ce qu'on ne voit pas, 1850): His famous essay explaining opportunity cost, featuring the "broken window" parable.
• Economic Harmonies (Harmonies économiques, 1850): His major, though unfinished, treatise on economic principles.
• Cobden and the League (Cobden et la Ligue, 1845): An account of Richard Cobden's Anti-Corn Law League in Britain, which inspired Bastiat's own free-trade activism.
• Numerous articles in Journal des économistes and Le Libre Échange .

Bastiat's writing style is renowned for its clarity, directness, and persuasive power. He employed satire, allegory, and Socratic dialogue to make complex economic ideas accessible to a general audience. His use of parables, such as the "Broken Window" and the "Candlemakers' Petition," effectively illustrated economic principles and exposed the flaws in opposing arguments.

Bastiat contracted tuberculosis, likely during his tours of France to promote free trade. His health declined rapidly, and he traveled to Italy seeking a cure. He died in Rome on December 24, 1850, at the age of 49. His last words were reportedly, "the truth." He is buried at San Luigi dei Francesi in Rome.

Though his life was short, Bastiat's influence has been significant and enduring:

• He is considered a forerunner of the Austrian School of economics, particularly for his emphasis on subjective value (implicit in his consumer-focused arguments) and opportunity cost.
• Economists like F.A. Hayek and Henry Hazlitt have acknowledged his importance. Hazlitt's Economics in One Lesson is largely an application of Bastiat's "seen and unseen" principle.
• His works remain foundational texts for classical liberals and libertarians worldwide, frequently cited in debates about free markets, limited government, and individual liberty.
• Organizations such as the Foundation for Economic Education (FEE) in the United States and various "Bastiat Circles" globally continue to promote his ideas.

While widely admired in libertarian and classical liberal circles, Bastiat has faced criticisms:

• Some critics argue that his concept of "economic harmonies" is overly optimistic and downplays real-world market failures, power imbalances, and the potential for exploitation.
• Marxist and socialist thinkers fundamentally disagree with his defense of private property and capitalism, viewing his "legal plunder" concept as a justification for existing inequalities.
• Some economists find his analysis lacking the mathematical rigor of modern economics, though his defenders argue that his qualitative insights remain profound.

• La Loi (1850) – The Law
• Harmonies économiques (1850) – Economic Harmonies
• Sophismes économiques (Series I, 1845; Series II, 1848) – Economic Sophisms
• "Ce qu'on voit et ce qu'on ne voit pas" (1850) – "What is Seen and What is Not Seen" (includes "The Broken Window" parable)
• Cobden et la Ligue ou L'agitation anglaise pour la liberté du commerce (1845) – Cobden and the League
• Protectionisme et communisme (1849) – Protectionism and Communism
• Propriété et loi (1848) – Property and Law
• Justice et fraternité (1848) – Justice and Fraternity
• L'État (1848) – The State
• Baccalauréat et socialisme (1850) – Baccalaureate and Socialism
• Œuvres complètes de Frédéric Bastiat (Collected Works of Frédéric Bastiat), published posthumously in 6 volumes (later expanded).

• Classical liberalism
• Laissez-faire
• Free trade
• Opportunity cost
• Austrian School
• French Liberal School
• Legal plunder
• Henry Hazlitt
• Richard Cobden