The monetary problem – the market problem – is the medium of exchange. The illusion is that one would be better off if only one had more money. Everybody should have more money. Therefore, make more money. This creates the system of inflation.
Human beings are collaborators with each other. Socialism is one kind of cooperation of people. One thing determines the socialist organization. It is the lack of freedom and the complete obedience to a Fuehrer (leader). Not surprisingly, everyone considers themselves to be part of the ruling group, forcing others to submit.
The paramount matter is the conflict between economic freedom as represented in the market economy and totalitarian government omnipotence as realized by socialism.
Printed paper is the least fit to serve as money. Paper destroys the monetary system. Various commodities have been employed until silver and gold and then gold alone won out because its quantity cannot be manipulated by the governments.
The private seminars that Mises held, and which were so successful in Vienna beginning in 1919, were actually separate from the University. Mises here remembers many of his seminar participants, like Hayek, Haberler, Schütz, and Machlup. He was glad to have contributed to the development of international cooperation among so many economists.
In this 1958 speech, Ludwig von Mises explains why, under socialism, "freedom" means the elimination of dissent. The socialist goal is bondage, not liberty.
Common sense is needed to prevent man from falling prey to illusory fantasies and empty catchwords.
