Economics

Hayek’s Warning: The Social Engineer’s Pretense of Knowledge

by Richard M. Ebeling December 2, 2014

Forty years ago, on December 11, 1974, Austrian economist, Friedrich A. Hayek, formally received that year’s Nobel Prize in Economics at the official ceremonies in Stockholm, Sweden. He delivered a lecture called, “The Pretense of Knowledge,” which forcefully challenged all those who believe that government has the wisdom or ability to successfully plan the economic affairs of society. His primary ...

Bastiat on the Socialization of Wealth

by Sheldon Richman December 1, 2014

That … veil which is spread before the eyes of the ordinary man, which even the attentive observer does not always succeed in casting aside, prevents us from seeing the most marvelous of all social phenomena: real wealth constantly passing from the domain of private property into the communal domain. Wealth marvelously passing from the private to the communal domain? ...

Ignoring the Difference between Free markets and State Capitalism

by Kevin Carson December 1, 2014

Capital in the Twenty-First Century by Thomas Piketty, translated by Arthur Goldhammer (Belknap 2014), 696 pages. The basic phenomenon that Thomas Piketty devotes this book to describing is simple: “When the rate of return on capital significantly exceeds the growth rate of the economy..., then it logically follows that inherited wealth grows faster than output and income.” His historical account ...

Gordon Tullock: Economist Who Explained Why Government Corruptly Grows

by Richard M. Ebeling November 13, 2014

Why is it that government grows in size and scope, and is so difficult to stop or reverse? Political economist, Gordon Tullock, who passed away on November 3, 2014 at the age of 92, was a path-breaker is explaining how and why big government keeps getting bigger. Gordon Tullock was one of the founders of what has become known as ...

Uniting Constitutional Protection for Economic and Social Liberties, Part 1: Substantive Due Process and Unenumerated Rights

by Steven Horwitz November 1, 2014

Part 1 | Part 2 | Part 3 We libertarians like to distinguish ourselves from our friends on the Right and Left by the fact that we care equally about both economic liberties and social/civil liberties. For libertarians the right to engage in contract and exchange with other consenting adults is just as important ...

The Calling: How Cronyism Worsens Income Inequality (and Freed Markets Reduce It)

by Steven Horwitz October 30, 2014

I recently gave an introductory Public Choice talk sponsored by Students for Liberty at the University of Ottawa. The next speaker was my friend Anne Rathbone Bradley, who was Skyping in from Washington. Anne gave a terrific talk about cronyism and rent-seeking that nicely complemented many of the points I’d made. But one of the side issues she raised ...

How Profit Benefits the Public

by Richard Parsons October 30, 2014

Portuguese I’ve heard, like you have, about corporate greed. The profit motive, we are told, is evil and causes the little people to be trampled. Formal studies show that people perceive that profit is negatively associated with social value for specific companies and whole industries (example — that “evil” oil industry). This is probably no surprise, ...

The Austrian Economist Who Should Have Received the Nobel Prize

by Richard M. Ebeling October 29, 2014

On October 13th, the 2014 Nobel Prize in Economics was announced in Stockholm, Sweden, with French economist, Jean Tirole, the recipient for his work on developing models to better assist governments in regulating private enterprise. A couple of weeks earlier, Reuters news agency had reported that the Austrian School economist, Israel M. Kirzner, was on the short list for ...

TGIF: The State Is No Friend of the Worker

by Sheldon Richman October 24, 2014

The election season is upon us, and we’re hearing the usual political promises about raising wages. Democrats pledge to raise the minimum wage and assure equal pay for equal work for men and women. Republicans usually oppose those things, but their explanations are typically lame. (“The burden on small business would be increased too much.”) Some Republicans endorse raising ...

Celebrating The Work Of Nobel Prize Winning Economist, F.A. Hayek

by Richard M. Ebeling October 8, 2014

Forty years ago, on October 9, 1974, the Nobel Prize committee announced that the co-recipient of that year’s award for economics was the Austrian economist, Friedrich A. Hayek. Never was there a more deserving recognition for one of the truly great free market thinkers of modern times. The Nobel committee recognized his contributions, including “pioneering work in the theory of ...

How Laws Are Passed, Maintained, and Changed

by George Leef October 1, 2014

Madmen, Intellectuals, and Academic Scribblers: The Economic Engine of Political Change by Wayne A. Leighton and Edward J. Lopez (Stanford Economics and Finance 2013), 209 pages. Have you ever wondered why democracies so often generate public policies that are wasteful and unjust? Have you asked why such policies persist over long periods, even when they are known to ...

The Miracle and Morality of the Market

by Richard M. Ebeling September 16, 2014

One of the great fallacies arrogantly believed in by those in political power is the notion that they can know enough to manage and command the lives of everyone in society with better results than if people are left to live their own lives as they freely choose. The fact is, there is far more in the world that successfully ...