The Theory of the Firm: The Austrians as Precursors and Critics of Contemporary Theory
Nicolai Juul Foss
More than one commentator has observed that a distinct theory of the firm is conspicuously missing from the main body of Austrian economics (e.g., Langlois 1991, p. 2; Minkler 1991, p. 8). As two Austrian economists observed some years ago: “there is no subjectivist or Austrian theory of the firm” (O’Driscoll and Rizzo 1985, p. 123). That is still the situation.
F. A. Hayek on Government and Social Evolution: A Critique
Hans-Hermann Hoppe
As much market as possible, as much state as necessary.
(Motto of the 1959 Godesberg-program of Germany’s Socialdemocratic Party)
Thesis One:
Friedrich A. Hayek is generally known as a champion of the free market economy and an outspoken anti-socialist; indeed, Hayek’s life was a noble, and mostly lonely struggle against a rising tide of statism and statist ideologies. These facts not withstanding, however:
The Philosophical Contributions of Ludwig von Mises
David Gordon
A central theme unites Ludwig von Mises’s frequent ventures into philosophy.
The Contributions of W. H. Hutt
John B. Egger
William Harold Hutt (1899–1988) was a courageous and independent maverick whose work has long been respected by those who work in the Austrian tradition. His scope was broad, encompassing the study of labor and the relationship between government and the economy, but he is probably best known for his monetary economics.
A Note On Jean-Baptiste Say and Carl Menger Regarding Value
Kenneth K. Sanders
In this journal, an enlightening article appeared by Joseph T. Salerno (1988) concerning the neglect of the French liberal school in Anglo-American economics. The purpose of the present note is to reinforce a point contained therein. That point is: “The tradition [Smith-Say type approach to value theory] culminated in the work of F. B. W.
The Harvard Plan for Drugs A Review of Against Excess: Drug Policy for Results. By Mark A. R. Kleiman. New York: Basic Books, 1992.
As the casualties from the war on drugs mount, the appeal for moderation in the title of Mark Kleiman’s latest book on drug policy is most welcome. However, make no mistake about it, this is no case for legalization. Rather, the author makes a case for a technocratic solution to our drug-abuse and drug-policy problems. As the most recent and sophisticated defense of prohibition, it is worthwhile reading for everyone interested in drug policy.
Banning a Risky Product Cannot Improve Any Consumer’s Welfare (Properly Understood), with Applications to FDA Testing Requirements
Robert Higgs
Neoclassical welfare economists maintain that consumers suffer when risky goods are supplied in an unregulated market. Consumers are said to possess imperfect information (Stiglitz 1988, pp. 78–79; Barr 1992, pp. 749–50) and limited ability to process complex information.
Slavery, Profitability, and the Market Process
Mark Thornton
The economic interpretations of the slave economies of the New World, as well as those social interpretations which adopt the neoclassical economic model but leave the economics out, assume everything they must prove. By retreating from the political economy from which their own methods derive, they ignore the extent to which the economic process permeates the society.
How is Fiat Money Possible?—or, The Devolution of Money and Credit
Hans-Hermann Hoppe
Fiat money is the term for a medium of exchange which is neither a commercial commodity, a consumer, or a producer good, nor title to any such commodity: i.e., irredeemable paper money. In contrast, commodity money refers to a medium of exchange which is either a commercial commodity or a title thereto.
The Consumption Tax A Critique
Murray N. Rothbard
The Alleged Superiority of the Income Tax
Orthodox neoclassical economics has long maintained that, from the point of view of the taxed themselves, an income tax is “better than” an excise tax on a particular form of consumption, since, in addition to the total revenue extracted, which is assumed to be the same in both cases, the excise tax weights the levy heavily against a particular consumer good.
