The social, political, and economic forces operative in nineteenth-century Britain are briefly described. This permits tracing the birth of both the scientific study of individual differences and the field of eugenics to the infrastructure of society at that time. The distinction is made between the normative doctrine of individualism and the factual study of individual differences. It is argued that democratic--liberal--capitalistic--individualism, in part, conditioned the beginning of differential psychology and eugenics. In this process, Galton's liberal views concerning individual freedom and opportunity for full development became transformed into their dialectic--totalitarian--collectivism--a vision of an ideal state which did not come into being. It is paradoxically concluded that those same social forces which helped bring about the birth of differential psychology and the entailing eugenics ideology prevented the latter from being accepted and implemented.