Mises shows that the market economy is a finely constructed, interrelated web; and coercive intervention at various points of the structure will create unforeseen troubles elsewhere. The logic of intervention, then, is cumulative; and so a mixed economy is unstable — always tending either toward full-scale socialism or back to a free-market economy. . .
The instability of the interventionist welfare-state system is now making fully clear the fundamental choice that confronts us between socialism on the one hand and capitalism on the other. Perhaps the most important single contribution of von Mises to the economics of intervention is also the one most grievously neglected in the present day: his analysis of money and business cycles. We are living in an age when even those economists supposedly most devoted to the free market are willing and eager to see the state monopolize and direct the issuance of money. Yet Mises has shown that
. there is never any social or economic benefit to be conferred by an increase in the supply of money;
. the government's intervention into the monetary system is invariably inflationary;
. therefore, government should be separated from the monetary system, just as the free market requires that government not intervene in any other sphere of the economy.
Tuesday, August 18, 2009
Ludwig von Mises
Mises Institute today published a tribute to Ludwig von Mises that was written on the occasion of his 90th birthday in 1971. Authored by Murray Rothbard, it shows Mises the radical in both approach and practice of economics.
I have never met Gary North and probably never will. Yet, through his writings he has had a far-reaching influence on my thinking, especi...
I’m sure there will be some shocking events in 2018, but I have no idea what they will be. There are too many wildcards in the mix, with o...
In spite of its success in bestowing wealth on some men while funding an unnecessary war ,  the National Banking System proved unsatisfac...
My grandson had quite a day at school. He had learned that the economy had been suffering from things called Panics, capital P, during th...