Vilfredo Pareto’s Sociology
10
more about Pareto’s elite theory, and then by showing that Pareto’s experience of
Italian political and economic life had a profound influence on him, by colouring
his ideas concerning the natures of elites and non-elites and the ways in which they
interact.
2.2 Pareto’s
Elite
Theory
Pareto’s name is commonly linked with ‘classical elite theory’, a school of thought
whose enduring contribution to sociology has been to assert, very simply, that
minorities always wield control in large societies and associations (Wrong 1977, 177).
James Meisel points out that this was actually the ‘idée maîtresse’ of another classical
elitist, Gaetano Mosca. Pareto appropriated it without due acknowledgement (Meisel
1965, 14–15). Classical elite theory, Marvin Olsen (1970, 106–104)
mentions, had
established itself in bitter opposition to the Marxist belief that a democratisation and
communalisation of political life would come about through the establishment of a
popular proletarian regime. The three principal theorists of classical elitism, Vilfredo
Pareto, Gaetano Mosca and Robert Michels, Olsen says, all reacted against this idea
by finding ways to argue that ‘in all societies past the bare subsistence level there has
been – and hence, presumably will be in the future – one or a few sets of dominant
ruling elites’.
As we will see, Pareto viewed the capacity to exploit others as having been
distributed disproportionately amongst elites throughout western history. He also
believed that the slow movement towards democracy
and meritocracy which had
taken place during the course of the late nineteenth and early twentieth centuries
had done little to change this. Democratic political systems (or ‘plutodemocracies’
as he called them) were failing to reflect the will of the people because democratic
elections merely provided mechanisms for the co-optation of new, more capable
personnel into the political and economic elite strata. As elites are revitalised from
below, Pareto believed, their potential to exploit (or to use his preferred term, to
‘spoliate’) the masses increases. Perversely, then, Pareto considered imbalances of
wealth likely to
increase along with the extension of
the suffrage in the emerging
European democracies (Hirschmann 1992, 55–58).
The following account of Italian political and economic life, as Pareto and many
others experienced it, will explain why he reached this pessimistic conclusion. It will
also permit a much clearer picture to emerge, both of the psychological characteristics
which Pareto attibuted to the ‘exploiters’ or ‘spoliators’ who fill the ranks of the
elites, and of the psychological characteristics which he attibuted to the ‘exploited’
or ‘spoliated’ who comprise the non-elites.
2.3 A Brief Biography
The following biographical details are based largely upon Powers’ (1987, 14–18)
account. Pareto’s family rose to political and commercial prominence within the
trading hub of Genoa during the eighteenth century. His
great-great-great grandfather,
Giovanni Lorenzo Bartolomeo Pareto, had won the hereditary title of Marquis for
Pareto’s ‘Psychologistic’ Sociology
11
the family in 1729. During the Napoleonic period, Pareto’s grandfather and grand
uncles were to hold important administrative positions, by virtue of their republican
credentials. The family’s attachment to republicanism persisted into the nineteenth
century, when, for his republican activism, the Marquis Raffaele Pareto was forced
to flee Italy for France. It was there that he married a French
Calvinist called Marie
Mattenier, which led to Vilfredo being born on 15 July 1848, in Paris.
Whilst in exile, the Marquis Raffaele Pareto supported himself as a hydrological
engineer, and he even managed to publish influential articles on hydraulics. This
ensured that Vilfredo’s very early life and education benefited from some affluence.
In the 1850s, however, the family was able to return to Italy. They settled in Turin,
where Raffaele had secured a civil engineering position.
In 1869, Vilfredo gained a degree in engineering from the Polytechnic Institute
of Turin. Apparently he graduated at the top of his class, ahead of fellow student
Galileo Ferraris, who went on to become famous for his discovery of the rotary
magnetic field. Following Italian unification in 1871, Vilfredo’s father was
transferred to Rome. Vilfredo
was to move there too, where he became a civil
engineer within the government’s railway department. This was to be the first of
several engineering jobs, which allowed Pareto to progress into management. In
1874, he became superintendent of an iron foundry in the valley of the Arno. This
job allowed him to travel to England and Scotland on business, where he encountered
the liberal legislation which had been systematically introduced there from 1846.
This new legislation was underpinned by the
laissez faire ideology and activism of
Richard Cobden, John Bright, Walter Bagehot and others who fronted the free trade
movement. The ideas of this movement, which Disraeli famously christened ‘the
Manchester School’, were to have a profound influence on Pareto.
His interest
in political economy kindled, Pareto joined the Adam Smith Society
in Florence. In 1881, he even stood as a radical free trade candidate for Parliament
in the district of Peruzzi. Between 1889 and 1892, he turned his attentions toward
political commentary and public speaking, perhaps motivated by a wish to acquire a
university teaching post. Between these years he published over 160 articles which
consisted largely of appeals for the introduction of free trade. Powers mentions that
during this period Pareto’s inflammatory, polemical style led to some of his speaking
engagements being cancelled due to police concerns about public order.
1
In 1891, Pareto began to publish papers which pioneered the use of scientific
and mathematical techniques to assess economic theories. Just two years later, this
work had impressed economists to the extent that he
was appointed Professor of
Political Economy at Lausanne University. Pareto soon became known as the ‘father
of mathematical economics’ for the contributions to economics which he made
during this period. However, it was only after he inherited a fortune from an uncle in
1898, and then moved to a country villa which he had built in the idyllic village of
Céligny, close to Switzerland’s border with France, that Pareto could finally develop
the economic ideas for which he is chiefly remembered. Pareto’s financial freedom
had, it seems, brought with it intellectual freedom from established academic
1 For further details see Coser (1977, 403), Bellamy (1987, 14) and Pareto (1935,
§2255–2256).