Production Theory

Right now, as the economy reshuffles, there are more opportunities to generate change than ever — the kind of dynamic change that we need to grow out of this slump.

Hayek criticized Keynes for his neglect of the real structure of production, arguing that Keynes's predilection for concentrating on the immediate and purely monetary phenomena accompanying changes in money expenditure, together with his penchant for aggregative macro concepts (total profits, total investment), had led him into contradictory or untenable conclusions.

In the same way, the path to economic recovery is to allow markets to channel specialized resources to their highest-valued uses, not to dump taxpayer funds on whatever firms and industries happen to be ready for them — or politically connected.

It is interesting to see the psychology at play here: give the banks more money or else the massive stimulus will fail due to "instability."

When prices are fixed, and labor conditions are set by law, an employer can indulge his racist preferences without receiving his capitalist comeuppance.

Sponsored by the Mises Institute and held in Houston, Texas; September 22-23, 1995.

Sponsored by the Mises Institute and held in Houston, Texas; September 22-23, 1995.

What is required is purging the economy of various false activities that severely undermine its ability to generate real wealth.

1998 Mises Institute Supporters Summit, Palm Springs, California; February 27-28, 1998.

Recorded at the Toronto Stock Exchange; September 16-17, 1999.