Blogging will be light for a few days for reasons which will become apparent when I return to it. In the meantime, I wanted to offer some prescient writing from Mises’ 1949 masterpiece, Human Action on the crisis of well-intentioned economic intervention. Via Human Action chapter XXXVI: The Harvest of Interventionism: The interventionist policies as practiced for many decades by all governments of the capitalistic West have brought about all those effects which the economists predicted. There are wars and […]
Tag Archives: Austrian School
In this video, Detlev Schlichter talks to Jan Skoyles of the Real Asset Company about the crisis, the benefits of cooperation and money as a key causal factor. He argues we will need to fundamentally reconsider the role of the state, as the crisis continues to develop.
Following my recent interview with The Real Asset Company, I am delighted that they have published this three-part interview with my Cobden Centre colleague, Detlev Schlichter. Here’s the first part: For ten possible solutions to the problems inherent in our present financial system, see my article here.
Via LearnLiberty.org: And also: Society is concerted action, cooperation. Society is the outcome of conscious and purposeful behaviour. … Individual man is born into a socially organized environment. In this sense alone we may accept the saying that society is–logically or historically–antecedent to the individual. In every other sense this dictum is either empty or nonsensical. The individual lives and acts within society. But society is nothing but the combination of individuals for cooperative effort. It exists nowhere else than […]
Via How Liberals Distort Austrian Economics – Reason Magazine: The earliest Austrian economists did not make their mark by advocating free markets and other classical-liberal ideas. They did so by proffering a revolutionary positive (not normative) theoretical approach to understanding how markets work, focusing on value, price, and capital, theory. … Yglesias thus conflates Austrian economic theory with libertarian political theory. In fairness, he is not alone in committing this error. Many libertarians do the same, which is unfortunate. Austrian economic […]
Every week for the next 26 weeks, I’ll be publishing a précis of a chapter of Henry Hazlitt’s brilliant 1946 book, Economics in One Lesson, prepared by Michael Dowsett during his internship. The index page is here. This week, in just 189 words, The Lesson. Of course, there is no substitute for reading the book: buy, download.
I spoke last night in the general debate on the economy, saying*: As I rise to speak I am reminded of a quotation from an economist who was a fierce critic of Keynes, a chap called Henry Hazlitt, who said: “Today is already the tomorrow which the bad economist yesterday urged us to ignore.” We have heard today some moving accounts of individual and collective suffering in different regions of the country and among different sections of the public. We should […]
Via the Adam Smith Institute on YouTube, Detlev Schlichter explains the thesis of his recent book, Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown: Amongst other things, Detlev is a Senior Fellow of the Cobden Centre, which I co-founded. I should very much like to believe his thesis is incorrect, but it seems to me consistent with both the literature of the Austrian School and the views of those economists I met in Salamanca in […]
Part I, the price system: Part II, profit and loss: See also, Kirzner, How Markets Work: Disequilibrium, Entrepreneurship and Discovery (PDF), which is a wonderful rebellion against the over-simplification of neo-classical economics. For example: Austrian theory, as presented here, places great weight on ‘entrepreneurial discovery’ which enables decentralised decision-makers to recognise when present decisions can be improved upon, and to anticipate future changes in the decisions being made by others. Movements in prices, production methods, choices of outputs, and resource […]
Via XX. INTEREST, CREDIT EXPANSION, AND THE TRADE CYCLE – – Mises Institute, which I recommend in full, old advice on our present situation: The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought […]