Production Theory

Presented by Rothbard at New York Polytechnic University in 1972.

In order for anyone to make ethical judgments, he must know the consequences of his various actions. In questions of union actions displacement or unemployment for oneself or others will be considered unfortunate by most people.

Economists can say little about population and its size, despite the gloomy views of Malthus. More people are a good thing because of the division of labor. Living standards are higher when populations are higher.

As factors of production, supply and demand of labor, land and capital will determine how much the producer will get out of this process. This process occurs in different stages.

The words monopoly and competition have been changed. Competition meant rivalry or competing, either active or potential.  Businesses do not like this. Monopoly meant a grant of privilege by the government. It now means falling demand curve.

The objective of the corporate firm is to maximize profits and avoid losses - the same objective of the free market. But the costs are paid out before the income comes in. Stockholders will sell stock to shake up the managers.

All that stimulatory policies can do is redistribute real savings from wealth-productive to nonproductive activities."

"In short, a striker is a man who says, 'I mean to get my living by doing this thing and no other thing as my share of the social effort, and I do not mean to do this thing except on such and such terms'."

I see a pattern there — a pattern that can mean slavery for free men everywhere if it is not broken.

Social institutions matter most, and they are very wrong now: a huge improvement is possible, and freedom is the answer.