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The Ludwig von Mises Institute

Advancing Austrian Economics, Liberty, and Peace

Advancing the scholarship of liberty in the tradition of the Austrian School

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Mises's 1944 book applies his insight concerning economic calculation to delineate the difference between bureaucratic management and profit-and-loss management in the free market. The implications of his argument are far reaching, for it shows that all types of public administration lack the ability to conduct their affairs in an economic rational manner.

REVIEWS

CONTENTS

PREFACE TO THE 1944 EDITION

PREFACE TO THE 1962 EDITION

 

INTRODUCTION

  1. The opprobrious connotation of the term bureaucracy.
  2. The American citizen’s indictment of bureaucratism.
  3. The "Progressives" view of bureaucratism.
  4. Bureaucratism and totalitarianism.
  5. The alternative: profit management or bureaucratic management.

I. PROFIT MANAGEMENT

  1. The operation of the market mechanism.
  2. Economic calculation.
  3. Management under the profit system.
  4. Personnel management under an unhampered labor market.

II. BUREAUCRATIC MANAGEMENT

  1. Bureaucracy under despotic government.
  2. Bureaucracy within a democracy.
  3. The essential features of bureaucratic management.
  4. The crux of bureaucratic management.
  5. Bureaucratic personnel management.

III. BUREAUCRATIC MANAGEMENT OF PUBLICLY OWNED ENTERPRISES


  1. The impracticability of government all-round control.
  2. Public enterprise within a market economy.

IV. BUREAUCRATIC MANAGEMENT OF PRIVATE ENTERPRISES

  1. How government interference and the impairment of the profit motive drive business toward bureaucratization.
  2. Interference with the height of profit.
  3. Interference with the choice of personnel.
  4. Unlimited dependence on the discretion of government bureaus.

V. THE SOCIAL AND POLITICAL IMPLICATIONS OF BUREAUCRATIZATION


  1. The philosophy of bureaucratism. 
  2. Bureaucratic complacency 
  3. The bureaucrat as a voter. 
  4. The bureaucratization of the mind. 
  5. Who should be the master?

VI. THE PSYCHOLOGICAL CONSEQUENCES OF BUREAUCRATIZATION

  1. The German youth movement. 
  2. The fate of the rising generation within a bureaucratic environment.
  3. Authoritarian guardianship and progress.
  4. The selection of the dictator.
  5. The vanishing of the critical sense.

VII. IS THERE ANY REMEDY AVAILABLE?

  1. Past failures. 
  2. Economics versus planning and totalitarianism.
  3. The plain citizen versus the professional propagandist of bureaucratization.

CONCLUSION

INDEX

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REVIEWS OF BUREAUCRACY