Economic: Controversies
Index
Index
Adler, Felix, 82, 87
air pollution
actionable, 404
causal connection, 389, 393
class action rules, 416
discipline, normative law, 367
invasive interference, 399
Katz, Milton, 389
law and regulation, 404–05
plaintiffs, joinder of, 414
prosecution principles, 412
tort, 403, 413, 418
Aldridge, John W., 613
Alison, Archibald, 648
Antonino, Sant’, 150
apriorism, 33, 103
Aquinas, Thomas
division and exchange of labor, 149
just price, 147, 149
marginalists, 159
mercantile gain, 150
Aristotle
action axiom, 108
Aristotle-Mises rationalist, 196
errors of, 19
ethics, rational, 312
Grice-Hutchinson, Marjorie, 141
happiness, 617
Harwood, E.C., cynic, 18
hermeneutics, 120
human reason
Misesian and Hayekian paradigms, 191
individual advancement, 614
intellectual permissiveness, 128
Kauder, Emil, 159
Kautsky, Karl, 611
Marxist promise, 611
proto-Austrian Scholastic economics, 159
rational ethics, 312
underlying essences, belief in, 158
why we read the classical philosophers, 228, 230
Armstrong, Wallace E., 298, 305
Austrian School
Aristotelian philosophy, 157
Bresciani-Turroni, Costantino, 701
Brzozowski, Stanislaw, 810
Bukharin, Nikolai, 811
business cycle theory, 777
capital assets, structure of, 450
Cuhel, Franz, 806
Czech Austrian School, 806
dismissed as unsound, 49
eclipse of, 230
“Economics and Knowledge” (Hayek), 193n42
empiricism, 159
Friedmanites, 898
general value theory, 143
Hilferding, Rudolf, 809
historiography, 139
hyperinflation, German, 701
laissez-faire, 92, 905
Lange, Oskar, 804, 806, 811
language barrier, 231
neo-Austrian School, 231
praxeological method, 48, 59, 921
prehistory of, 159
psychological school, 73
Samuelson, Paul, 916
Whig thought habits, 165
Yeager, Leland B., 49
Averitt, Robert T., 672, 675, 681
axiomatic-deductive method, 17, 18, 62
Azpilcueta, Navarro, Martin de, 143, 144, 148, 153
Babbitt, Irving, 615
Bailey, Samuel, 139, 877–78
Baker, James, 534
Baldwin, John W., 148
Bañez, Domingo de, 145
Barnes, Jonathan, 120–23
Barnett, Randy, 379, 411–12
Bastiat, Frédéric, 204, 324, 489n70
Bauer, Peter T., 38n6, 602n2, 620, 620n37, 918, 923
Baumol, William J., 306, 327–31, 482
Bebel, August, 609, 611
Becker, Gary, xii
Bentham, Jeremy, 108, 119, 313, 564, 806
Bergson, Abram
Bergsonian irrationalism, 166n7
demonstrated preference, denied, 319
Lange-Taylor, 832
social welfare function, 317
socialist calculation, 831
Soviet economy, 830, 853
Berkeley, George, 646
Bernardino, San
entrepreneur, 150
just price, 152
market price, 147
merchants, kinds of, 151
qualities of successful businessmen, 151
value, 146, 152
Biddle, Nicholas, 718–19
Billias, George Athan, 718
Black Panthers, 614
Blackwell, John, 653
Blaug, Mark, 161
Block, Walter, 205
Boas, Franz, 672
Bodin, Jean, 143
Bogey of Economic Maturity, The (Terborgh), 274
Böhm-Bawerk, Eugen von
Austrian School, 806
causality and teleology, 50
consumer, 159
economic laws, nature of, 158
Hilferding, Rudolf, 809
Neoclassical School, 48
theory of interest, time-preference, 156
Bosanquet, J.W., 876
Bove v. Donner-Hanna Coke Co., 395
Bradley, Joseph P., 885
Bresciani-Turroni, Costantino, 701
broken window fallacy, 203–04
Bronfenbrenner, Martin, 332
Brown, Norman O., 617
Brzozowski, Stanislaw, 810
Buchanan, James M.
defense, collective, 470
fiscal system, 464–65
price stabilization, 765
public-choice, 482n53
socialist calculation, 822, 927–31
State as a voluntary institution, 332
unanimity principle, 88, 245, 484–85, 500, 927–31
Bukharin, Nikolai, 811, 828
Burckhardt, Jacob, 505, 548
Buridan, Jean, 141, 146, 192
Cairnes, John E.
deduced economic laws, 47
economic theory, validity of, 26
knowledge of ultimate causes, 46, 46n15, 47, 67
mathematical method, opposition to, 47
methodology, 45
praxeologist, wavering, 104
Cajetan, Thomas, 122, 147, 150
Calculus of Consent, The (Buchanan and Tullock), 927
collective decisionmaking, 930
epistemological flaws, 931
Locke, John, 927
methodological individualism, 927
new welfare economists, 930
Pareto, Vilfredo, 930
Rousseau, Jean-Jacques, 927
social contract theory of government, 927
Tullock, Gordon, 927
unanimity, 927
value-free political theory, 931
Calhoun, John C., 484, 491, 493, 521, 530
Cantillon, Richard, 180, 281
Capital and Its Structure (Lachmann), 135
capital goods
bank money, expansion of, 236
boom-bust cycle, 797
business cycle, 792–93
depression and price, 798–99
double counting, 523
factors of production, 50
financial returns to owners, x
future goods, 265
inflationary credit expansion, 796
interest rate decline, 794–95
land, labor, and time, 264, 581, 583, 594
market allocation, 818, 836
market determinants, 824, 837
monetary overinvestment theory, 795
monopoly, 824
original factors, 264
overinvestment, 797, 917
owner income, 451
price controls, 799
price system, 188, 678
prices and production, market proportions of, 795
privatization, 444
product, discounted marginal value, 278–79
property rights, 442
resource allocation, 187, 290
scarcity, 420
socialist cost estimation, 841
socialist planning, 819, 824, 834–35, 841, 843–44
stock market, 837
structure of production, 452
time dismissed, 266
time-block, 577, 838–39
trade cycle, 737, 792–93
underinvestment, 917
waystation to consumption, 523
capitalism
Affluent Society, The (Galbraith), 664
Averitt, Robert T., 672, 675, 681
bipartisan civil service, 662
Boas, Franz, 672
church and state, separation of, 659
commonwealthmen, 659
Comte, Charles, 667
consciousness I, II and III, 667–69
Dunoyer, Charles, 667
establishment, 662
expropriation, 671
feudal land monopoly, 658
free-market
capitalism, 655, 663, 672
economy, 660
exchange, 671
libertarian, 664
society, 657
future of, 671, 677
Galbraith, John Kenneth, 664–65
Garrison, William Lloyd, 669
Gasset, Ortega y, 661
Goldwater, Barry, 679
government sectors list, 663–64
guild restrictions, 659
Hamilton, Alexander, 672
Hayek, Friedrich August von, 678
individualist ideology, 660
Industrial Revolution, 659
intellectual apologia, 656
intellectuals, role of, 666
Jefferson, Thomas, 672
Johnson, Lyndon, 666
Kirk, Russell, 676
Kolko, Gabriel, 668
labor unions, 662
laissez-faire, 659, 667, 672
Lange, Oskar, 678
Lenin, Vladimir, 678
Levellers, 659
liberal-mercantilist order, 666
Locke, John, 659
Marx, Karl, 655, 671
Mason, George, 672
materialism, 660
Mencken, H.L., 674
military-industrial complex, 663
Mises, Ludwig von, 678
New Deal, consequences of, 666
nihilism, 667
Nixon, Richard, 665
Nock, Albert Jay, 677
Oppenheimer, Franz, 675, 677
Price and Priestly, 662
radical chic, 667
Reagan, Ronald, 679
Reich, Charles, 667–68
Roosevelt, Franklin, 666
Schumpeter, Joseph, 674
Smith, Adam, 659, 667
Spencer, Herbert, 667, 672
spoiled child psychology, 661
state capitalism, 655, 663, 680
State, The (Oppenheimer), 675
statism, dominant principle, 658
taxation, 656
Tory statism, 662
war communism, 678
Carey, Henry C., 884
Carmichael, Gershom, 154
Carnap, Rudolf, 28, 136
Carson, Rachel, 226
Cassel, Gustav, 297, 691, 692
Castro, Fidel, 607, 612
Charles I, King of England, 650
Chase, Salmon P., 883–84
Che Guevara, 607, 828
Checkland, Sydney, 861–65
Chicago School
Clarkian view, 839
fiat money, 711, 881
Fisher-Friedman, 906
free market, 243, 744
Friedman-Stigler, 134
Friedman, Milton, 741
Friedmanism, 895
Knight, Frank, 839
money supply, 727, 737
monopoly and competition, 897
Morrell, Daniel J., 722
Positive Program for Laissez Faire, A (Simons), 896
price level, 248, 904
property rights, value free, 369
Samuelson, Paul, 915, 916
Simons, Henry C., 892
tax system, 521
Wertfreiheit, 372
City of San Jose v. Superior Court, 416
Clark, John Bates, 265n5, 838
Clews, Henry, 722
Coase, Ronald, 348, 471, 824–25
Coase-Demsetz
property rights, 246, 349, 918
resource allocation, 247
social transaction costs, 371, 371n6
value-free, 372
Colbert, Jean-Baptiste, 518
Colman, John, 653, 718
collective good
airspace, 472
Coase, Ronald, 471
coercion, 481
consumers, 474, 479
defense, 467, 470
demonstrated preference, 476
free riders, 475
government neutrality, 477
judicial protection, 467
patents and copyrights, 473
public goods, 464–65
state power, 500, 929
voluntary, 475, 482
collectivism
Blum and Kalven, 559
hermeneutical view, 124, 125
individualism, 23
methodological, fallacy of, 322n59
policy controls, 94
Collor de Mello, Fernando Affonso, 435
Columbia Law Review, 397
compensation principle
anarchy, 90–91
social utility, 315
social welfare function, 317
unanimity principle, variant of, 89
value-free calculation, 245–46, 315–16
Comte, Charles, 667
Condillac, Etienne Bonnot de, 154, 155, 156, 202
consequences, unintended
Austrian paradigm, 170
Hayek, F.A., 195, 199
Salerno, Joseph T., 202
Smith, Adam, 196, 197n46
constants, 13, 37, 75, 76, 77, 132
Constitution of Liberty, The (Hayek), 220
Cooke, Jay, 722, 884
coordination of plans, 169, 170, 184, 185
Copleston, Frederick, 109, 109n9
Covarrubias, Diego de, y Leiva, 142, 153–54
Croce, Benedetto
Croce-Pareto debate, 298n16
empiricist postion, 52–53
praxeology, 51, 806
Croker, John, 648
Crusoe, Robinson
Buchanan, James M., 822
fundamental axiom and postulates, 106
Kauder, Emil, 159
Lange, Oskar, 808–09
Mises, Ludwig von, 829
praxeological theory and history, 62, 78
praxeology, categories of, 117
science and values, 83
Cuhel, Franz, 686, 806
Cuomo, Mario, 510
Davanzati, Bernardo, 155
Davis, Andrew M., 718
demonstrated preference
choice, 290
coercion, voluntary, 327, 458
compensation principle, 91, 316
consistency-constancy fallacy, 319
fallacy of indifference, 304
free market, 319
free riders, 475–76, 480
Lange, Oskar, 303
methodological objections, 290
Neumann-Morgenstern theory, 307
operational meaning, 293
Pareto, Vilfredo, 297
physical basis, direct, 310
praxeological concept, 90
preference, existence of, 297
revealed preference, 298
social utility, 92
state actions, 322
tautologous, 297
unanimity rule, 323, 331, 333
utility theory, 289, 299
value scales, 320
welfare theory, 289
Demsetz, Harold
property rights, 248, 348, 369
social transaction costs, 372
determinism
historical, 372
man as servomechanism, 10
Marxism, 809
philosophical, 924
self-contradictory, 5
social determinism, 9
specific existence, 5
ultimate sovereign, 9
Diamond v. General Motors, 417
Doernberg, Richard L., 512
Downing, Paul B., 405
Dudley, Joseph, 653
Due, John F., 87–88,
Dunoyer, Charles, 667
Econometric Society, 12, 132
Economics (Samuelson), 913–18
bloated text, 914
Coase-Demsetz analysis, 918
free-market economists, 916
GNP, validity of, 915
income differentials myth, 918
regression diagram and Hitler, 917
sex discrimination, 916
sympathy for the reader, 913
Economics in One Lesson (Hazlitt), 203
Edgeworth-Pigou, 313, 556, 566
Einaudi, Luigi, 250, 889
Elizabeth I, Queen of England, 649–50
Ellul, Jacques, 614, 616, 617
Engels, Friedrich, 608, 610, 611
Ensign v. Walls, 395
Epstein, Richard
conceptual realism, 392
liability doctrine, 259, 389, 391
tort law, 410
tort liability, 380, 387, 387n39, 388n40, 416n102
equilibrium
Böhm-Bawerkian, 265
business cycle, 272
common error, 332
conditions of, 51
disequilibrium, 170, 751, 843
entrepreneur, 270, 285, 287, 453n6
final, 182, 185, 267
general equilibrium
changeless certainty, 451
entrepreneurship, 453n6
Hansen, Alvin H., 275
Hayek-Kirzner entrepreneur, 178
Human Action (Mises), 697
Mises, Ludwig von, 490n72
neoclassical economic theory, 132
Never-Never Land, 178, 270, 452
objective social costs, 257
Pareto-Barone equations, 842
perfect knowledge and certainty, 287
Samuelson, Paul, 696
socialist impossibility, 853
Theory of Economic Development (Schumpeter), 286
Theory of Money and Credit, The (Mises), 844
Walras, Léon, 303
Walrasian Box, 261
Walrasian devotion, 838
Walrasian general equilibrium 262n2, 268, 286, 697, 816, 832, 835
Walrasian system, 343
Walrasian, Schumpeter, 262, 262n2
general paradigm, 261
Hahn, Frank.H., 698
Hansen, Alvin H., 275
Hayek-Kirzner, 191
Hayek, Friedrich August von, 821
Hayekians concept, 184
heuristic principles, 105n4
Human Action (Mises), 697
innovation-inflation-depression cycle, 273
interest income, 265
labor market, 640
Lachmannians, 180
Lange model, 832
magnitudes of, 303
market process, 180, 817
market, equilibrating, 286
Marshallian supply-curve analysis, 529
mathematical, 262
metaphor, 13
micro, 838
Mises, Ludwig von, 490n72
never-never land, 452n4
price, 172n14
profits and interest, evanescent, 271
purchasing power parity theory, 692
Robbins, Lionel, 267
Schumpeter, Joseph A., 262, 262n2
Schumpeterian, 267, 269
static, 191, 914
stationary equilibrium, collapse of, 267n8, 271
subjectivist Austrian critique, 822
Theory of Economic Development (Schumpeter), 286
time-preference, 265, 268
Time, Uncertainty, and Disequilibrium (Rizzo), 257
Walrasian, 263, 343
wealth and income shifts, 688
Escobar, Antonio de, 153
Espinas, Alfred, 804
Essays in European Economic Thought (Sommer), 26
exchange rates
Bretton Woods, 742, 752
Cassel, Gustav, 692
Chicago School, 741
disequilibrium, balance-of-payments, 751
dollar, definition of, 745
fixed exchange rates, 747, 750
fixity of definition, 743
fixity of units, 743
fluctuating exchange rate, 742, 749–50, 909
free market money, 743
free metallism, 213, 215
Friedman, Milton, 741
gold standard, 215, 745, 753
gold standard, criticism of, 744
gold, Friedmanite position, 744
Gresham’s law, 763
Heilperin, Michael, 750–51
laissez-faire, 711
market, idea of, 744
monetarism, 883
monetary crises, 742
monetary denationalizing process, 439
Mundell, Robert A., 749
oecumene, 214
parallel standards, 213
purchasing-power parity theory, 144, 691
regional currency areas, 749
Smithsonian Agreement, 741
two-tier gold market, 752
extreme rationalism, 193, 194
Federal Reserve System
abolishment, 889, 891
acceptance paper, 723
Bretton Woods, 771
central banking function, 784
fiat dollar, 887
Fisher, Irving, 905
Friedman, Milton, 908
inflate at will, 787
Johannsen, Oscar B., 716
libertarian prescription, 800
myths, 715
price and money supply, manipulate of, 682
value and ethical judgement, 21, 318
Warburg, Paul M., 724
Ferguson, Adam
Carlyle, Alexander, 200
Catholic Jacobite Rising, 200
Hayek, Friedrich August von, 199
Hegel, G.W.F., 200
Whig theory of history, 200
Fetter, Frank A., 290, 593, 647
Fetter, Frank W., 647, 864, 870, 873
Feyerabend, Paul, 126
fiat paper. See money-fiat money
Fielding, Henry, 646
Fisher, Irving
business cycle, 903–04
circular reasoning, 294
commodity dollar, 761
consumption tax, 518, 520, 523–27
demonstrated preference, 290
Federal Reserve System, 905
fiat money, 881
Friedman, Milton, 906
gold standard, 905, 907
price level, 762, 763n11, 765
progressive spendings tax, 557
Purchasing Power of Money, The, 706, 729
forecasting
Bauer, Peter T., 38n6, 923
econometric, errors of, 133, 922
empirical testing, 132
entrepreneurs
consumer demand, 452
guided by, 450
Kirznerian man, 178–79
Lachmannian man, 179
Misesian man, 173–74, 179
uncertainty-bearer, 281, 285
Friedman, Milton, 132
Jewkes, John, 39
key element, 838
Lowe, Adolph, 924
praxeologist, 41, 116
scientific prediction, 38n6
subjective estimates, 258
success rate of, 37–38
supply and demand, 148
verger anecdote, 282
Frankfurt, Harry, 130n14
free banking
Bailey, Samuel, 877
Bankers’ Magazine, 878
Banking School, 866–67, 870, 874, 877n28
Banks and Politics in America (Hammond), 885
banks unregulated, 705
Barrett, Don C., 885
bimetallism, 883
Birmingham School, 873
Bosanquet, J.W., 876
Bradley, Joseph P., 885
Bullion Report, 873
Carey, Henry C., 884
central banking disillusionment, 879
Chase, Salmon P., 883
Checkland, Sydney, 861, 862
Chicago School, 881, 896
clearing systems, 886
Cooke, Jay, 884
Currency Principle, 879
Currency School, 866, 869, 870, 874
demand liabilities, 879, 882n5
Development of British Monetary Orthodoxy (Fetter), 870
Einaudi, Luigi, 889
English subjectivists, 881
ex-Misesians, 881
FDIC, abolition of, 772
Federal Reserve System, abolishment, 891
Fetter, Frank W., 864, 870, 873
fractional reserve banking, 212
Free Banking in Britain (White), 859, 865–66
free banking, 859, 881
free v central banking, 866
free-banking advocates, 872
Friedman, Milton, 883
Fullarton, John, 876
fundamental reform, 771
Gilbart, James William, 874, 875, 876, 877n28, 878
gold standard, 771
gold standard, devotion to, 876
Greenback Era, The (Unger), 885
Greenbacks and the Resumption of Specie Payments (Barrett), 885
Greenfield and Yeager, constructivist plan, 887
Gresham’s Law, 883
Hammond, Bray, 885
History and Principles of Banking, The (Gilbart), 875
History of the Public Revenues of the British (Perceval), 873
Hume, David, 875
Humean-Ricardian devotion, 875
inflationary bank credit, 876n26
Legal Tender Cases, 882, 885
Manchester School, 869
McCulloch, J. Huston, 886
metallic currency, Humean-Ricardian devotion to, 875
modern Misesians, 881
Money, Class and Party (Sharkey), 885
neo-Friedmanites, 881
note redemption, 864n12
O’Leary, Paul M., 885
Observations on the Report of the Bullion Committee (Sinclair), 873
On the Regulation of Currencies (Fullarton), 876
optimal currency area, 862n6
Oresme, Nicole, 883
parallel standards theory, 890n12
Parnell, Henry Brooke, 872n23
Peel Acts, 859, 877–78
Peel, Robert, 875
Perceval, Spencer, 873
Positive Program for Laissez Faire, A (Simons), 896
Principles of Political Economy (Scrope), 874
Quarterly Journal of Economics, 885
Rationale of Central Banking, The (Smith), 866
regression theorem, 890
reserve requirements, 704
Ricardo, David, 879
Robbins, John W., 885
Scottish banking, 861
Scottish free banking, myth of, 859
Scrope, George Poulett, 872–74
Sharkey, Robert P., 885
Simons, Henry C., 896
Sinclair, John, 872–73
Smith, Vera C., 866
snare and delusion, 865
Sovereignty and an Empty Purse (Hammond), 885
specie payment suspension, 862
specie, concerns for, 862
Strong, William, 885
thesis influence, free banking, 860
Timberlake-Greenfield-Yeager scheme, 890
Timberlake, Richard, 882–92
Tooke, Thomas, 880
traditionalists, 881
Trotter, Archibald, 864
Unger, Irwin, 885
Weinstein, Allen, 885
White, L.H. See White, Lawrence H.
White’s syllogism, 860
Wilson, James, 877n28
Free Banking in Britain (White), 859
free market
1970s, resurgence of, 163
Baumol’s thesis, 328
Becker, Gary, xii
Bergson, Abram, 831
black market, 437
Boulding, Kenneth E., 354
business cycle, 789, 904
capital goods, x
capitalism, future of, 671, 678, 680
central planning, 825
Chicago School, 243, 744, 896–98
Coase, Ronald, 348–49, 825
collective services, 466, 474n40
commodity dollar, 761–63, 766
communists, 612, 680
credit expansion, 796
Currency School, 867, 871
defense protection-insurance, 467
Demsetz, Harold, 348–49
depression, 795
desocialize, 433
distribution, problem of, 321
dollar, weight or definition of, 768
economic calculation, Mises, 823
economics of intervention, 235
equality of income, 97–98
ethical principles, 100
exchange economy, 199
exchange rates, 213
external diseconomy, 330n74
Fisher, Irving, 904–05
free banking, 879
free-market capitalism, 655
Friedman, Milton, 742, 895–99, 910
future of, 671, 678, 680
gold standard, 765–74, 907
government counterfeiting, 439, 783
government interference, 216, 581
Gray, Alexander, 180n25
Great Depression, 273, 681–82
Hayek, F.A., 187, 758
Hayekian Man, 177
Henry of Langenstein, 141
historical examples, 657, 676
Human Action (Mises), xiii, 233, 239
hyperinflation, 435
India, 655
Industrial Revolution, 660, 676
intervention, logic of, 235
Keynesian paradigm, collapse of, 775
Kolko, Gabriel, 668
laissez-faire, 101, 237, 672–73
land reform, 365
libertarian, 664
Lowe, Adolph, 920
marginal productivity, 628
marginal utility, 560
Marxism, retreat from, 801, 856
Lange, Oskar, 813
Mill, John Stuart, 360
Mises, Ludwig von, xiii, 95, 194, 233, 251
Molinari, Gustave de, 474n41
monetarist approach, 906
monetary metal, 214–17, 742–45, 752–53, 765–66
money, 709–11
central commodity, 908
private gain, 714
money, fiat, 711
natural to man, 657
neutral tax myth, 449, 490, 490n72, 494, 501
New Economic Policy of Lenin, 679
Nock, Albert Jay, 677
oecumene, 192, 201, 214, 216, 217
Oppenheimer, Franz, 675
Paul, Ron, 514
pecuniary external economies, 331
Positive Program for Laissez Faire, A (Simons), 896
Postal Service, 758
praxeological conclusion, 92
price, 83
price controls, 741
Friedmanite view, 742–44
private property, 209, 348–51, 359, 373, 434, 580
private sector, 420, 434
privatizing government operations
collective good, 475
desocialization, 440
equal tax, 513
Greenfield and Yeager, 890n14
privatize or abolish, 889
Rothbard Plan, 445
State dissolution, 669
productivity, 420
protection-insurance, 467
regression theorem, 207, 759, 890
Reich, Charles, 667
Ricardian distribution, 180n25
Rothbard, Murray, x
Samuelson, Paul, 916
schools, 665
Scitovsky, Tibor, 331
service, equality of, 498
services, essential, 426, 475
Simons, Henry C., 869
slavery, 352
Smith, Adam, 605
social utility, 333
socialism, irrationality of, 825
socialist planning, 845
Soviet, privatization, 437n2, 440
Spanish Scholastics, 141
state capitalism, 655, 663
State intervention, 201, 333, 419
State, The (Oppenheimer), 675
statistics, no need of, 337, 338n3, 427
stock market, 837
structure of, 449, 456
tax
amount vs. the form, 529
consumption, 517
equal price and service, 560
Fisher analysis, 524
flat, 511, 544–45
land, 580, 584
loopholes, 509, 546
marginal utility, 560
savings, 521–22
Say, Jean-Baptiste, 530
subsidies, 508
supply-siders, 530
uniform, 511
taxation, 500, 508
theorem of maximum social utility, 325–26
unanimity rule and demonstrated preference, 323
unions, 637, 640
utilitarianism, 347, 361, 365
VAT (value added tax), 591
Vaughn, Karen I., 220
Viet Nam, 681
voluntary exchange, 90, 244, 320, 672
unanimity of benefit, 320
wages, 635
War Communism, system of, 679
Wealth of Nations, The (Smith), 196
welfare economics, 319
Yugoslavia, 238, 681
free rider
all-voluntarilyforcing- themselves, 482n53
Baumol, William J., 330, 482
collective wants, 330
Goldin, Kenneth D., 469
Man vs. the State (Spencer), 479n48
neighborhood effects, 247
public-choice, 482n53
Spencer reductio, 478
taxation of, 475–79
transaction costs, 480
Tullock, Gordon, 475n44
universal, 331, 480
free will
cause, as, 13
consciousness, proof of, 10
determinism, 5–9
fundamental axiom, 10
human actions governed by, 18
human possession alone, 3
Lowe, Adolph, 924
man’s volition, 4n2
prediction, impossibility of, 41
quantitative constants, precludes, 13, 17
Russell, Bertrand, 10
self evident, 10
validity of, 4
valuations, individual, 17
Friedman, Milton
assumptions, 104
Austrian economics, 897
bimetallism, 206n64, 883
business cycle, 903
charity, 902n10
Chicago School, 896
chicagoite egalitarianism, 898–99
commodity money, libertarian solution, 909
currency exchange rates, 741
education, 910
egalitarian, 899
Establishment’s Court Libertarian, 895
fiat money, 711, 907–08
Fisher-Friedman, 906
Fisher, Irving, 904–05
free banking, 881
freedom is slavery, 908
Friedman impact, 911
Friedman plan, 903
Friedman-Stigler, Chicago School, 134
Friedman-Stigler, pamphlet, 899
Friedman’s crucial errors, 909
gold standard, 907–08
Human Action (Mises), 910
impact of, 911
libertarian failure, 912
logical positivism, doctrine of, 132, 161
Methodology of Positive Economics, The, 131
Mints-Friedman-Simons, 558
Mises, Ludwig von, 898
monetarist approach, 906
monetary and fiscal policy, 907
Monetary History of the United States, A, 906
monetary theory, Chicagoite, 904
money, 906
monopoly and competition, 897
negative income tax, 500
neighborhood effects argument, 910
positivist extreme, 45n13
price stabilization, 907
progressive income taxation, 558
rent controls, 899
Roosevelt, Franklin, 909
Simons, Henry C., 896
Simonsian collectivist laissez faire, 897
statist, 900, 912
Strong, Benjamin, 905–06
TANSTAAFL, 541
tax withholding, 516
taxation and money, 910
Telser, Lester, 897
Theobald, Robert, 900
Theory of Money and Credit, The (Mises), 898
welfare rights, 903
welfare supply function, 900
welfare, libertarian approach, 902
withholding tax, 899
Fromm, Erich, 617
Fuchs, Victor, 916
Fullarton, John, 876
fundamental axiom
a priori, 68
axiom of action, 106
concrete law deduced from, 20
human action, existence of, 107
individual consciousness, 17
individual liberty, 659
nature of, 65
praxeology rests upon, 60
psychic profit, maximizing, 107
utility maximized, 109
Gadamer, Hans-Georg
collectivism, 124
hermeneutics, 120–22, 127, 183n29
Lavoie, Don, 135
Galbraith, John Kenneth
Affluent Society, The, 72, 425, 664
coercion, 426
government, fiscal impact of, 422
Hayek critique, 73
military-industrial complex, 665
overnment services, 425
public v private sector, 423
rathole, 424
Galiani, Ferdinando, 154, 155, 156
García, Francisco, 143, 145, 151
Gasset, Ortega y, 624, 661
General Theory (Keynes), 131
Genovesi, Antonio, 154
George, Henry, 357, 575, 597
Georgists. See taxation-single tax
German Historical School, 125, 339, 340n7, 341n10
Ghent, Henry of, 141
Gilbart, James William, 874, 875, 876, 877n28, 878
Gilbert, J.C., 695
gold. See money-commodity based currency
Goldin, Kenneth, 467–69, 472n35, 474
Goldwater, Barry, 679
Goodyear, Stephen, 651
Gorbachev, Mikhail Sergeyevich, 435
Gordon, David
fractional reserve banking, 211
Hayek, F.A. 192, 202
Misesian paradigm, 169
Philosophical Origins of Austrian Economics, The, 161
regression theorem, 190n38
Graham, Benjamin, 761
Gray, Alexander, 180n25, 608, 609n10, 611, 828
Great Depression
business cycle theory, 232
Federal Reserve System, price manipulation, 682, 771
government intervention, 681
Great Depression, The (Robbins), 849
Hansen, Alvin H., explanation of, 273
Keynesian Revolution, 777
Mises prediction of, 231
socialism and interventionism, 8
Green, Arnold W., 56
Gresham’s Law, 115, 213, 763, 764n12, 883
Grice-Hutchinson, Marjorie
Kauder, Emil, 155
Roover, Raymond de, 145
School of Salamanca, The, 141
subjective-value-and-utility view, 141
Gross National Product, 37, 254, 255, 338, 427
Grotius, Hugo, 153
Gurwitsch, Aron, 925–26
Haavelmo, Trygve, 320n57, 329, 329n72
Haberler, Gottfried, 205
Hahn, F.H., 698
Halm, Georg, 840–41
Hamilton, Alexander, 672, 719
Hamilton, Robert, 486
Hamowy, Ronald, 220
Haney, Lewis, 139
Hansen, Alvin H.
equilibrium, 275
Keynes-Hansen mature-economy, 558
Keynesian leaders, 777
private investment, 274–75
secular stagnation, 273
Walrasian Box, 261
Harrod, Roy, x, 913
Harwood, E.C., 18
Havenstein, Rudolf, 702
Hayek, Friedrich August von (F.A.)
assumptions and premises, falsity of, 132
Austria and Lausanne, contrasts between, 50
Austrian revival, 163
Chicago School libertarian, 916
Collectivist Economic Planning, 849
commodity dollar, 762
consequences, unintended, 199
constructivism, 212
denationalization of money, 757
deviousness, 193n42
economic calculation, 815, 831
equilibrium, 822, 833
fallacies of, 845
Ferguson influence, 200
formulations, unfortunate, 848
free-banking, 881, 882n5
Hayek I, 177, 195n44, 205, 206, 206n63
Hayek II, 177, 205
Hayek-Kirzner entrepreneur, 178, 847
Walrasian automaton, 847
Hayek-Robbins practicality problem, 832
Hayekian hubris, 198n47, 205
Hayekian Man, 177–78
Hayekian/Lachmannian viewpoint, 217
human action-not-human design, 199
human blindness and irrationality, 195, 195n44
human reason, denigration of, 192
individual act, meaning of, 55
intellectual trickle-down, 195n44
knowledge, problem of, 187
Lachmann, Ludwig M., 135
Lachmannian Man, 179
Lange-Lerner, critique of, 821
Lange-Taylor trial and-error method, 832
market as discovery procedure, 847
Mises-Hayek business-cycle theory, 131, 163
Mises, harsh disagreement with, 193, 193n42, 194
Misesian message, distortion of, 187
monetary malinvestment, 812
monetary overinvestment, 704
Monetary policy, 212
“Non Sequitur of the ‘Dependence Effect, The,” 73
paradigm of, 169
personality inadequacies, 219–20
praxeological axioms, 67
Regression Theorem, 207, 758
Schumpeter, critique of, 817, 832
socialist calculation problem, 190, 815, 845
formulations, unfortunate, 848
knowledge, lack of, 845
theoretical solution, 830
subjectively determined actions, 55
Utopian, hopelessly, 760
Vaughn, Karen I., 217–3
Walrasian general equilibrium, 816
Hayek-Kirzner, 178, 179, 188, 191, 847
Hayek-Kirznerian man, 179
Hayekian Man, 177, 178
Hazlitt, Henry, 203–05, 769, 770n14
Heath, Spencer, 474
Hébert, Robert, 204, 281–83, 286
Hegel, Georg Wilhelm Friedrich, 123, 200
Heidegger, Martin, 120, 122, 124, 125, 135–36, 183n29
Heilbroner, Robert, xv
Heilperin, Michael, 704, 750–51, 770
Heisenberg uncertainty principle, 32
Heller, Walter, 548, 703
Herder, Johann Christian, 202
Herlihy, David, 148
hermeneutics
Barnes, Jonathan, 120, 122
collectivism, 124
critics of, 129
deconstructionism, 120
dictionary definition, 120
economic imperialism, intellectual, 119
Gadamer, Hans-Georg, 120
Gordon, David, 121
Hegel, G.W.F., 123
Heidegger, Martin, 120
hermeneutical economist, 130, 134
incomprehensibility, 121
Lavoie, Don, 135
Marxism, 125
McCloskey, Donald, 134
Mencken, H.L., 123
Popper, Karl, 123
Schleiermacher, Friedrich, 123
Society for Interpretive Economics, 135
Veblen, Thorstein, 123
Hicks, John R.
business cycle, 777
compensation principle, 315
continuity assumption, 300n21
fallacy of indifference, 304–05
Hicks and Allen, 299, 333, 806
indifference curve, 333
inflation, 777–78
Kaldor-Hicks, 315
marginal utility, 299
measurable utility, 300n21
taxation, 464
High, Jack, 126
Hilferding, Rudolf, 809
Hobson, John A., 565, 811
Holman v. Athens Empire Laundry Co., 404
Holmberg, Allan, 621
Holmes, Oliver Wendell, Jr., 391–92
homestead principle, 352, 362–66, 442
homesteading
ad coelum rule, 402
desocialized property, 442–59
just property, 392–93
libertarian theory, 418
property rights titles, 373
property, 362
size of area, 401
Human Action (Mises)
action axiom, 60, 233
calculation question, 847
entrepreneur, 285
Kirzner, Israel, embrace of, 190
Lange-Lerner, refutation of, 818, 834
mathematical method, sterility of, 816
Mises summation, 239
praxeology, 808
regression theorem, 695
Salerno, Joseph T., view of, 190
socialist calculation, 854
speculation, play at, 837, 840n17
taxation, 449, 490n72
Vaughn, Karen I., dismissal of, 190
Walrasian general equilibrium, 697
human history
causal laws, 26
cause resultant, 105
collective good, 475
free market, 475
heterogeneous, 74–75
praxeologist view, 75
Procrustean distortion, 39
social rationalism, 202
statist intervention, 100
Whig theory of history, 200
Hume, David, 194, 772, 875, 881
Hutchison, Terence W.
American Austrians, 176n21
apriorism, 103
economic action, rational, 108
empirical testing, 105
free exchange, 324
fundamental axiom, 109, 110
profit maximization, 107
Hutt, William H., 169, 185, 186
indifference
defenses of, 306
fallacy of, 304–05
Hicks-Allen curve analysis, 333
taxes, 515–16
tort, 371
utility theory, 299
von Neumann-Morgenstern theory, 307
individualism
collectivism, 23
methodological, 54, 72, 931
inflation
acceptance paper, 723
Austrian business cycle theory, 777, 792
Austrian prescription, 799
bank credit, 789
bank war, Andrew Jackson, 2nd Bank of the United States, 718
Beard-Beale Reconstruction concept, 721
Biddle, Nicholas, 718–19
Billias, George Athan, 718
boom-bust cycle, 797
business cycle, 789, 797, 799
case studies, 717
Colwell, Stephen, 719–22
commodity money, 781
Cooke, Jay, 722
Davis, Andrew M., 718
error cluster, 797
Federal Reserve Notes, 787
General Theory of Employment, Interest, and Money (Keynes), 775, 777
Hansen, Alvin, 777
Hayek, Friedrich A., 777
Hicks, John R., 777
inflationary boom distortion, 795
inflationary credit expansion, 796
Jackson, Andrew, 718
Kaldor, Nicholas, 777
Kelley, William D. (“Pig Iron”), 721
Keynesian Revolution, 777
Keynesian underspending, 775
laissez-faire denounced, 720
Lerner, Abba P., 777
Marx, Karl, 790
Massachusetts Land Bank of 1740, 717
Mises, Ludwig von, 777
monetary history, 787
money supply, 780
bank demand deposits, 784
central bank, 784
checkbook money, 784
Federal Reserve Notes, 787
organized increases, 783
rate of inflation, 784
recession, classic, 798
recession, simultaneous, 776
Ricardian theory, 791, 792
Ricardo, David, 790
Robbins, Lionel, 777
stagflation, 776, 777, 788, 793, 797
Stevens, Thaddeus, 721
Sumner, Charles, 721
Warburg, Paul, 723
Wharton, Joseph, 722
Jackson, Andrew, 718, 722
James I, King of England, 650
Jefferson, Thomas
gold reserve, 772
laissez-faire, 672
radical, 669
tax question, 489, 545
Jevons-Walras mathematical method, 158
Jevons, W. Stanley, 26, 157–58, 290
Jewkes, John, 39, 41, 922
Johannsen, Oscar B., 716
Johnson, Lyndon, 666, 777
Jouvenel, Bertrand de, 500, 571
just price
Aquinas, Thomas, 147
Baldwin, John W., 148
Covarrubias, Diego de, y Leiva, 142
free bargaining, 149
Herlihy, David, 148
labor and costs, 141
market price, 146
religious grounds, 139
Roman law, 149
Roover, Raymond de, 147, 152
Saravía, de la Calle, Luis, 142
Scotus, John Duns, 146
supply and demand, 148
Kaldor-Hicks compensation principle, 315
Kaldor, Nicholas, 777
Katz, Milton, 389
Kauder, Emil
Aristotelian Scholastic roots, 140, 158
entelechy, 159
“Genesis of the Marginal Utility Theory” (Kauder), 156n34
labor theory of value, 157
philosophia perennis, 50
revisionist viewpoint, 155
social ontology, 50, 159
Kautsky, Karl, 611
Kaysen, Carl, 924, 926
Kelley, William D. (“Pig Iron”), 721
Kennedy, Charles, 296, 302, 306
Kerlin v. Southern Telephone and Telegraph Co., 393
Keynes, John Maynard
Böhm-Bawerk, Eugen von, 811
business cycle, 790
Chicago School, 907
consumption, economics of, 808
Council of Economic Advisors, 798
inflation, pre-Keynesian policy of, 644
Keynes-Hansen mature-economy, 558
macroeconomics, and other monstrosities, xiv
mathematical symbolism, 62
Meek, Ronald, 812, 813
Menger, Carl, 811
mercantilist theory, 653
monetary malinvestment, 812
private investment, 274
world economic government, 215
Keynesian
broken window fallacy, 204
consumption function, 13
depressions cured, 32
equilibrium, static, 918
Friedmanites and monetarists, 895
General Theory (Keynes), 777
geometry, 131
gold standard, 892
government, absolute control, 898
Hansen, Alvin H., 273
Hicks, John R., 777
inflation and recession, simultaneous, 776
intervention and recessions, 162, 799
Keynesianism fashionable, 777
Lerner, Abba P., 777
liberals, 656
macroeconomic function of government, 775
money supply, 798
multiplier, 656
neoclassical paradigm, dominant, 162
neoclassical synthesis, 133
Nicholas Kaldor paradigm collapse, 775
policies, 681
post-Keynesian, 237
Potter, William, 644
pre-Keynesian, 644
proto-Keynesian, 903
recessions and intervention, 162
Robbins, Lionel, 777
Samuelson’s brand, 915
static equilibrium, 918
underspending, 775
world economic government, 215
Kirk, Russell, 676
Kirzner, Israel, xii, 178, 189, 221, 847
Kluckhohn, Clyde, 621
Knight, Frank
Chicago School, 839, 881
equilibrium, 838
Knight-Rolph, 278, 280
Machlup, Fritz, 926
marginal productivity, 277
Mises, Ludwig von, 285
Rolph, Earl, 277
Samuelson, Paul, 916
Smith, Adam, 603
socialism, 840
time preference, 277
Kolko, Gabriel, 668
Kotarbinski, Tadeusz, 802–05
Kraus, Oskar, 158
Krier, James, 405, 416–17
Kuhn, Thomas, 131, 165, 225–27, 232, 724
labor, division of
Aldridge, John W., 613
Anti-Dühring (Engels), 610
Babbitt, Irving, 615
Bauer, Peter T., 620, 620n37
Bebel, August, 609
Bebel’s Utopia, 611
Black Panthers, 614
Brown, Norman O., 617
Castro, Fidel, 607, 612
Che Guevara, 607
collectives, 612
commune, 609
communist ideal, 607
contradiction, 608
cooperative, 604
differences, 608
dilettante, 610
diversity
causal connection, 605
equality, Leftist version, 625
feelings, 615
free economy, 627
freedom and economic growth, 605
freedom, effects of, 602
inate human characteristic, 604
individual, 628
individual, hatred of, 614
Marxist differences, 608
mutual reinforcement, 603
egalitarianism, 629
Ellul, Jacques, 614, 617
Engels, Friedrich, 608, 610, 611
Envy (Schoeck), 633
equality of condition, 627
equality, ideal of, 626
equality, leftist version, 625
equally free, 626
eradication of, 607
feelings, 615, 631
free society, 601
freedom, 601, 605–06
freedom, corollary of, 628
Fromm, Erich, 617
Gasset, Ortega y, 624, 661
German Ideology, The (Marx), 608
Gray, Alexander, 608, 609n10, 611
Great Transformation, The (Polanyi), 614
Holmberg, Allan, 621
individual choice, 602
individual, uniqueness of, 601
Industrial Revolution, 605
inequality, concept of, 627, 628
intellectual labor v physical labor, 609
intellectual labor, 609n12
“Iron Law of Oligarchy, The” (Michels), 628–30
Kautsky, Karl, 611
Kluckhohn, Clyde, 621
“Law of Equal Liberty” (Spencer), 626
Lenin, Vladimir, 610
Lewis, Oscar, 621
libertarian view, 632
liberty, specific equality of, 627
Malinowski, Branislaw, 619
Mao, Tse-Tung, 607
Marcuse, Herbert, 617
marginal productivity, 628
Marx, Karl, 607
Marxism, 606
Mencken, H.L., 632
Michels, Robert, 628
Mises, Ludwig von, 604, 610, 616
Müller, Adam, 613
natural aristocracy, 632
New Communist Man, 611
New Left Marxist, 607
noble savage, 614
Nock, Albert Jay, 633
participatory democracy, 629
Polanyi, Karl, 614
Reichel-Dolmatoff, 622
Romantic movement, 615
Romanticism and primitivism, critique of, 613–16, 624
Rousseau, Jean-Jacques, 614
Schoeck, Helmut, 621, 633
Siegel, Bernard, 619
Silberman, Charles, 616
specialization, 603, 612, 612n20, 613
Spencer, Herbert, 626
survival, vital to, 606
Tax, Sol, 621
Technological Society, The (Ellul), 614
totalitarian, 602
Trotsky, Leon, 611
unfairness, 628
Utopian socialists, 610
Watson-Samora, 622
wealth, seizure of, 633
Williams, Roger, 626
Wolf, Eric, 623
Woodstock Nation, 615n28
labor price, unions
employer property, 640
equilibrium, 640
marginal productivity, 639
monopoly, 635
nonunionism, 636
private states, unions as, 640
production, misallocation of, 637
restrictionist wage rates, 637
strike, 638
strikebreaker, 638
supply of labor, restriction of, 637
trade union activity, consequence of, 639
union obstructionism, 639
unionism and unemployment, 636
unionism industrial and craft, 637
unions, 635
wage rate, minimum, 636
Lachmann, Ludwig M.
Hayekian Man, 178
Kirzner, Israel M., 285
Lachmannian man, 174–76, 175n17–18
Lavoie, Don, 183n29
Mises’s cycle theory, 205
nihilist paradigm, 135, 169
Vaughn, Karen I., 218, 221
verstehende social science, 50
weasel-worded disclaimer, 175n18
Whig thought habits, 165
Lachmannian Man
entrepreneur, 179
ignorance, uncertainty and nihilism, 174, 177, 180
nonsense paradigm, 175, 175n17
Laffer-curve, 485n60, 530
laissez-faire
Austrian doctrine, 237
civilization in decline, biginning, 662
Cobden, Richard, 870, 871
Colwell, Stephen, critic, 720
compulsory employment, 647
division of labor, 201
Founding Fathers, Jeffersonian wing, 673
free exchange, analysis of, 324
free will, 8
French optimist school, 323, 324n62
German Historical School, 339, 339n5
government policy, 799
idealogy of, 201
Jefferson, Thomas, advocate of, 672
justice, guilt and innocence, determination of, 385
Lange, Oskar, critic, 812
Manchester School, 869
Mises, proponent of, 92, 96–97
money, government monopoly, 711
natural system of liberty, 667
objective ethics, 101
praxeology and, 97
private property, 351
Quis custodes custodiet, 118
results of, 111
Roover, Raymond de, 147
Smith, Adam, 667
statism, 658
Vaughn, Karen I., critic, 221
welfare economics, 333
White, Lawrence H., 867
Lange-Lerner
calculation dispute, 851
entrepreneurial forecasting, 838
fallacies, 832
Lange-Lerner-Taylor solution, 829, 831
market economy, pseudo, 820
market, 315
Mises refutation, 818, 834
planning boards, 316
pricing, 821
thesis vindication, 315
Lange, Oskar
Austrian praxeological view, 806
Bastiat’s exchange of services, 806
Benthamite utilitarianism, 806
Böhm-Bawerk, Eugen von, 809
Brewster, Ben, 813
Brzozowski, Stanislaw, 810
Bukharin, Nikolai, 811, 828
cardinality, assumption of, 303n26
consumption-oriented economics, 811
Crusoe economics, 808–09
Cuhel, Franz, 806
economic principle, 803
economic rationality, principle of, 803, 810
Espinas, Alfred, 804
exchange economy, 808
Hicks and Allen, 806
Hilferding, Rudolf, 809
Hobson, John A., 811
Human Action (Mises), 808
knowledge, sociology of, 811
Kotarbinski, Tadeusz, 802–05
