[From “’Oh,Ye Are For Anarchy!’: Consent Theory in the Radical Libertarian Tradition” in the Journal of Libertarian Studies, Winter, 1986.]

The idea of “velocity of circulation“ arose from the quantity theory of money, which links changes in the quantity of money to changes in the general level of prices. This is set out in the equation of exchange. The basic elements are money, velocity and total spending, or GDP. The following is the simplest of a number of ways it has been expressed:

Value is subjective. Prices are objective. Subjective value comes from the mind of the consumer, and influences market prices. When an actor chooses, he must forgo other choices, and he is demonstrating a preference for something, revealing part of the rankings of his values. Since perceived value relative to the actor’s value scale influences prices, then all prices are a result of human actions and choices on the market, caused by the actors’ values.

Tesla is burning, but it doesn’t look like anyone is rushing to put out the flames. Over the past few weeks, Tesla stock dropped nearly 10 percent, and currently hovers around $190 a share. The company’s value has slumped to levels not seen since 2016, and analysts are predicting that this recent drop is only the start. In mere months, three years of market growth was eviscerated.

In the words of Albert Jay Nock, the state “claims and exercises the monopoly of crime.”  What we, private citizens, cannot do is nonetheless perfectly acceptable for government officials. Thus, law is divided into public law and private law.

[Editor’s note: The following is Henry Hazlitt’s review of Man, Economy, and State published in National Review in September, 1962.]