To know and understand Mises; What is Human Action about? "Everything"; Mises's uncompromising stance; Mises called Milton Friedman "a socialist"; Mises: A Scholar Who Would Not Compromise
To know Mises;
To know and understand Mises
[To understand who Ludwig von Mises was, one must read at least three books that he authored (See below). Read below what he refused to compromise with. This resulted in many calling his “arrogant” and “uncompromising” and “unbending,” etc. But like the Bible says not to compromise with sin and not to compromise with the Word of God; Mises refused to compromise. (See below a partial list of what he refused to compromise with.) - JRD
(i) The Theory of Money and Credit
(ii) Socialism: An Economic and Sociological Analysis
(iii) Human Action, The Scholar's Edition
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“Oh,” I asked, “what's the book (Human Action) about?”
“About everything,” they replied. Human Action was indeed about everything. The book was a revelation to those of us ...” Murray N. Rothbard
[Before you laugh or make fun at the above answer—”everything”—read the book! - JRD]
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“Ludwig von Mises's uncompromising stance
on free markets and his perceived lack of concern for practical politics, coupled with his strong critiques of mainstream economics and collectivist ideologies, likely contributed to his ideas being marginalized or dismissed by Some.”
[Mises refused to compromise with: inflation; unsound money; fractional reserve credit; socialiasm; fascism; totalitarianism; etc.]
[Now let me use the word “believed” regarding Mises. Mises believed in real freedom and without his uncompromised positions real freedom was not possible. Some said he should compromise and he would have more followers. If he “believed” then what does that make him if he compromised some of those beliefs. In my judgment (you are free to disagree without my reply) he would compromise his character. - JRD]
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Mises primarily to Friedman: “You’re a Socialist!”: one of the primary reasons: Friendman believed in 2% inflation.
“In 1947 Friederich von Hayek calls a group of "notable intellectuals" of liberalism in the Mont Pelerin of Switzerland. The goal was to offset the influence of socialism in the postwar. Ludwig von Mises was one of those summoned and a skeptic of the project due to the participation of certain people. During a debate on "distribution" of income in 1956, headed by Milton Friedman, Mises retired angry and slamming the door he said: "You're all a bunch of socialists" Video based on the documentary "Commanding Heights: The Battle for the World Economy"
The Transcript is included.
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Ludwig von Mises: A Scholar Who Would Not Compromise
“There are learned people, even students of economics, who know little or nothing about Ludwig von Mises. And there are those who have erroneous or distorted knowledge of him, acquired from superficial hearsay or from the teaching of unfriendly critics; there has been no scarcity of critics of this erudite, highly original, and uncompromising opponent of socialism and government intervention in all forms. Finally, there are admirers of Mises, faithful disciples and propagators of his teaching.
Introducing Mises to those who know hardly anything about him and, at the same time, to those who know chiefly that they do not like him, is a difficult task, especially if I also want to satisfy the admirers of Mises who may be interested to read what I have to say about “the master.” Trying to meet all these objectives, I may fail in all three. But I shall try.”
“To Those Who Do Not Know Him”What are the essential distinguishing characteristics of Austrian economics? This question is not easy to answer, chiefly because scholars are rarely, if ever, unanimous in their opinions and some members of a school may disavow one or more tenets which the majority regard as fundamental; secondly, because some of the tenets that once were typically Austrian economics have become worldwide mainstream economics. Hayek once said, very much to the point, that the greatest success of a school is that it stops existing because its fundamental teachings have become parts of the general body of commonly accepted thought.
“Still, let me try to state the most typical requirements for a true adherent of the Austrian school.
(1) Methodological Individualism: In the explanation of economic phenomena we have to go back to the actions (or inaction) of individuals; groups or “collectives” cannot act except through the actions of individual members.
(2) Methodological Subjectivism: In the explanation of economic phenomena we have to go back to judgments and choices made by individuals on the basis of whatever knowledge they have or believe to have and whatever expectations they entertain regarding external developments and especially the consequences of their own intended actions.
(3) Tastes and Preferences: Subjective valuations of goods and services determine the demand for them so that their prices are influenced by (actual and potential) consumers.
(4) Opportunity Costs: The costs with which producers and other economic actors calculate reflect the alternative opportunities that must be foregone; as productive services are employed for one purpose, all alternative uses have to be sacrificed.
(5) Marginalism: In all economic designs, the values, costs, revenues, productivity, etc., are determined by the significance of the last unit added to or subtracted from the total.
(6) Time Structure of Production and Consumption: Decisions to save reflect “time preferences” regarding consumption in the immediate, distant, or indefinite future, and investments are made in view of larger outputs expected to be obtained if more time-taking production processes are undertaken.
These cryptic statements are, I am afraid, meaningful only to those who have a considerable background in economic theory. Surely, this is not the place to expatiate upon economic analysis, but I should add that the sixth tenet — regarding “Austrian theory of capital” — was rejected by some of the most prominent Austrians, including Carl Menger, the founder of the school.
Two important tenets held by the Mises branch of Austrian economics should be added to the list:
(7) Consumer Sovereignty: The influence consumers have on the effective demand for goods and services and, through the prices which result in free competitive markets, on the production plans of producers and investors, is not merely a hard fact but also an important objective, attainable only by complete avoidance of governmental interference with the markets and of restrictions on the freedom of sellers and buyers to follow their own judgment regarding quantities, qualities, and prices of products and services.
(8) Political Individualism: Only when individuals are given full economic freedom will it be possible to secure political and moral freedom. Restrictions on economic freedom lead, sooner or later, to an extension of the coercive activities of the state into the political domain, undermining and eventually destroying the essential individual liberties which the capitalistic societies were able to attain in the nineteenth century.
These two additional tenets are shared and upheld by most of Mises’s students. In the United States, the label “Austrian economics” has come to imply a commitment to the libertarian program. This was not so in the case of the earlier generations of Austrian economists, some of whom were advocates of governmental interventions and interferences that would be ruled out by Mises and his disciples. If Mises is introduced here as a long-term leader of Austrian economics, it is important to stress that his mission was above all the attainment and maintenance of individual freedom.”
[Open link to learn more from the article about Ludwig von Mises. - JRD]
Open link for complete article
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[Learn about Mises before you judge him. - JRD]
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