Production Theory

Rothbard's approach to money prices is not as a barter exchange system. Instead, he made money prices the common denominator for all exchange ratios. You can now engage in economic calculation.

Entrepreneurs see the future better than others and go and make money off it. Profits are an index that maladjustments are being met and combatted by the profit-making entrepreneurs. Capital does not beget profits. Only wise entrepreneurial decisions do that.

This middle chapter on production theory goes into detail on factor pricing and discounted marginal value product. The way Rothbard developed every aspect of production theory is unique. As the economy becomes more specialized and complex, the importance of this market process becomes greater.

Whatever your feeling on the need to improve state roads, do not let the myth of "job creation" and a "boost to the economy" be the rationale.

Recorded at Mises University 2008.

Recorded at Mises University 2008.

A dramatic initiative to lower the costs of hiring could end up having great effects.

From Economic Calculation In The Socialist Commonwealth.

"The rationality, the effectiveness, and the justice of public policy which taxes enterprise according to one assumption while it gears, say, profit-incentive policies to its opposite is at least dubious."

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