There is a lot of confusion about the term “free market economics.” It is not a matter of advocacy, but a description of what’s studied. Just like labor economics is not a matter of standing up for working class interests, but a study of how labor markets work. So free market economics is a study of how free markets (would) work. It is a positive
What does an economy do? Modern economics suggests it is about [production] efficiency, and develops models for assessing the degree to which it is achieved and predicting outcomes assuming it. This is a fundamental misunderstanding that, when scratching on the surface, clearly is as impossible as it is undesirable. Economy is about value creation
It is not automation that scares people, it is inflation. Might sound odd, but what I mean is that the promise of a fully (or at least a more extensively) automated future seems like a threat because modern currencies are fundamentally inflationary. When we work and save, the purchasing power of our saved funds diminishes with time. This is not a
There is a lot of confusion about the concept of a “good” in economics. While thinking of goods as products (or services) is an easy shorthand, it doesn’t quite capture economic reality. And it induces logical mistakes and outright errors. Economics is not primarily about physical reality, but about the use of it from the perspective of human
This piece, “Markets Are Eating The World,” is being shared widely. The author, Taylor Pearson, tells a story of the economic history of markets and firms, and what comes next, explained in terms of transaction costs. It’s a fun read, with a seemingly insightful narrative, and makes several good points. But while the transaction cost explanation
Adam Smith famously begins Wealth of Nations with a discussion on the division of labor. Few things are as impactful as specialization within a market setting á la Say’s Law. However, Smith also claimed that the division of labor is limited by the “extent” of the market. This is often interpreted as population size, which is not quite accurate.
Jeff Deist: Professor Bylund, you grew up in Sweden. What stands out from your childhood? PER BYLUND: I grew up in a suburb of Stockholm, separated from Stockholm by just a lot of nature. It’s close enough to be part of the Stockholm metropolitan area, but far enough away from it to be on its own. When I grew up in the 70s and 80s, I was given a
Late South African economist Ludwig Lachmann once wrote, “The future is unknowable, though not unimaginable.” What he meant is, it’s beyond our ability to know what the future will bring. We cannot plan without errors, because we do not actually know anything about the future before it’s already reality. The future is not simply unknown, which
CALL FOR PAPERS Special Issue of The Quarterly Journal of Austrian Economics : AUSTRIAN ENTREPRENEURSHIP THEORY Submission window : March 15 – April 15, 2020 Guest editor : Per Bylund, School of Entrepreneurship, Oklahoma State University Overview Austrian economics is a widely respected body of theory in management broadly (e.g., Jacobson, 1992)
There has been increasing talk of a burgeoning recession, whether because of a historically rare decade-long economic expansion or recent reports of an inverted yield curve, which is traditionally an indication of a downturn. Any recession is hard on all Americans, but it can be particularly devastating for entrepreneurs, who often have more to
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.