The Nobel prize was granted for an economist's work in "cointegration," a statistical and econometric technique that seeks to discover fixed relationships in historical data. But human beings are not machines, which is why Mises wrote: "As a method of economic analysis econometrics is a childish play with figures that does not contribute anything to the elucidation of the problems of economic reality."
Mises was quite clear on the dividing line between psychology and praxeology: Psychology deals with theories to explain why people choose certain ends, or how people will act in certain settings. Praxeology, on the other hand, deals with the logical implications of the fact that people have ends and the fact that they act to achieve them. Robert Murphy explains.
Michael Otsuka endeavors to combine two fundamental principles of political philosophy, usually considered polar opposites. In my view, his ingenious attempt does not succeed; but his failure has much to teach us.
Ludwig von Mises devoted much attention to methodology. Many people interested in Austrian economics turn from his discussions of the a priori and verstehen in bafflement and boredom. "Enough of these philosophical abstractions," they say; "what we want is economics". No greater mistake can be imagined if one wishes to understand Mises's work.
On Labor Day, Americans honor the often incredible contributions of its working men and women.
The ACLU constantly files lawsuits against property owners who attempt to protect their property rights. Many of these lawsuits are supposedly to protect free speech rights. But can there be a right to freedom of speech unless that right is firmly based on property rights?
No one can deny the fact that public law enforcement falls short of being a success. However, many believe that the solution is giving more entitlement to the state to allocate funds for improvements, such as the installation of surveillance cameras. When individuals face tribulations or the status of the economy is in shambles, people see the state as the source of salvation instead of the source of the problem.
Since 9-11, many commentators have asked question: can the West can really ever be at peace with Islam? If the cooperative spirit of the market economy prevails, the answer is yes. An example is Malaysia, which defies the stereotype. It shows what peace is possible when governments permit market exchange and freedom of cultural contact, while avoiding imperial overreach and belligerence.
Sumner was referring to the seemingly endless attempts to harness the power of the State to further one's own ends at the expense of other people. All human types—generals, millionaires, priests, scholars and so on—have made these attempts. The disease is not confined by race, color or creed, by age or occupation, by democracy or dictatorship. The desire to live at the expense of other men is a constant theme that runs through all of human history.
Christopher Westley formulates his own law of economics, which highlights how consumers apply much lower standards to government output, no matter what it is, than they do to the output that results from private markets. How else to explain hysteria about market failure and corporate mis-behavior as compared with unending government government failure?
