The ICC [Interstate Commerce Commission] illustrates what might be called the natural history of government intervention. A real or fancied evil leads to demands to do something about it. A political coalition forms consisting of sincere, high-minded reformers and equally sincere interested parties. The incompatible objectives of the members of the coalition (e.g., low prices to consumers and high prices to producers) are glossed over by fine rhetoric about “the public interest,” “fair competition,” and the like. The coalition succeeds in getting Congress (or a state legislature) to pass a law. The preamble to the law pays lip service to the rhetoric and the body of the law grants power to government officials to “do something.” The high-minded reformers experience a glow of triumph and turn their attention to new causes. The interested parties go to work to make sure that the power is used for their benefit. They generally succeed. Success breeds its problems, which are met by broadening the scope of intervention. Bureaucracy takes its toll so that even the initial special interests no longer benefit. In the end the effects are precisely the opposite of the objectives of the reformers and generally do not even achieve the objectives of the special interests. Yet the activity is so firmly established and so many vested interests are connected with it that repeal of the initial legislation is nearly inconceivable. Instead, new government legislation is called for to cope with the problems produced by the earlier legislation and a new cycle begins.
The mystery of this courage of Bauer’s is Hegel’s Phenomenology. As Hegel here puts self-consciousness in the place of man, the most varied human reality appears only as a definite form, as a determination of self-consciousness. But a mere determination of self-consciousness is a “pure category,” a mere “thought” which I can consequently also abolish in “pure” thought and overcome through pure thought. In Hegel’s Phenomenology the material, perceptible, objective bases of the various estranged forms of human self-consciousness are left as they are. Thus the whole destructive work results in the most conservative philosophy because it thinks it has overcome the objective world, the sensuously real world, by merely transforming it into a “thing of thought” a mere determination of self-consciousness and can therefore dissolve its opponent, which has become ethereal, in the “ether of pure thought.” Phenomenology is therefore quite logical when in the end it replaces human reality by “Absolute Knowledge”—Knowledge, because this is the only mode of existence of self-consciousness, because self-consciousness is considered as the only mode of existence of man; absolute knowledge for the very reason that self-consciousness knows itself alone and is no more disturbed by any objective world. Hegel makes man the man of self-consciousness instead of making self-consciousness the self-consciousness of man, of real man, man living in a real objective world and determined by that world. He stands the world on its head and can therefore dissolve in the head all the limitations which naturally remain in existence for evil sensuousness, for real man. Besides, everything which betrays the limitations of general self-consciousness—all sensuousness, reality, individuality of men and of their world—necessarily rates for him as a limit. The whole of Phenomenology is intended to prove that self-consciousness is the only reality and all reality.