Bibliography Works Cited

Chamberlain, John. My Years with Ludwig von Mises. The Freeman, February, 27, no. 2, 1977.

Hülsmann, Jörg Guido. Mises: The Last Knight of Liberalism. Auburn, Ala.: Mises Institute, 2007.

Kirzner, Israel M. Ludwig von Mises: The Man and His Economics. Wilmington, Del.: ISI Books, 2001.

Lu, A., 2013. States Reform Remedial College Education. Available at: http://www.pewstates.org/projects/stateline/headlines/states-reform-college-remedial-education-85899492704 [Accessed 7 January 2014].

Mises, Ludwig von. The Anti-Capitalistic Mentality. New York, N.Y.: D. Van Nostrand Company, 1956.

——. Economic Calculation in the Socialist Commonwealth. Auburn, Ala.: Mises Institute, [1920] 1990.

——. Economic Policy: Thoughts for Tomorrow and Today. Washington, D.C.: Regnery Gateway, 1979.

——. Epistemological Problems of Economics. 3d ed. Auburn, Ala.: Mises Institute, [1933] 2003.

——. Human Action. Auburn, Ala.: Mises Institute, [1949] 1998.

——. Interventionism: An Economic Analysis. Irvington-on-Hudson, N.Y.: The Foundation for Economic Education, 1998.

——. Liberty and Property. Auburn, Ala.: Mises Institute [1958] 1991.

——. “The Main Issues in Present-Day Monetary Controversies.” In Selected Writings of Ludwig von Mises: The Political Economy of International Reform and Reconstruction. Ed. Richard M. Ebeling. Indianapolis, Ind.: Liberty Fund, 2000.

——. Memoirs. Auburn, Ala.: Mises Institute, 2009.

——. “Monetary Stabilization and Cyclical Policy”. In The Causes of the Economic Crisis and Other Essays Before and After the Great Depression. Ed. Percy L. Greaves, Jr. Auburn, Ala.: Mises Institute, [1929] 2006.

——. Money, Method, and the Market Process. Ed. Richard M. Ebeling. Norwell, Mass.: Kluwer Academic Press, 1990.

——. “The Non-Neutrality of Money.” In Money, Method, and the Market Process. Ed. Richard M. Ebeling. Norwell, Mass.: Kluwer Academic Press, [1938] 1990.

——. Planning for Freedom and Sixteen Other Essays and Addresses. South Holland, Ill.: Libertarian Press, 1980.

——. “The Position of Money among Economic Goods.” In Money, Method, and the Market Process. Ed. Richard M. Ebeling. Norwell, Mass.: Kluwer Academic Press, [1932] 1990.

——. “Profit and Loss.” In: Planning for Freedom and Sixteen Other Essays and Addresses. 4th ed. South Holland, Ill.: Libertarian Press, [1952] 1980.

——. “Senior’s Lectures on Monetary Problems.” In Money, Method, and the Market Process. Ed. Richard M. Ebeling. Norwell, Mass.: Kluwer Academic Press, [1933] 1990.

——. Socialism. Indianapolis, Ind.: Liberty Classics, [1922] 1980.

——. Theory and History. Auburn, Ala.: Mises Institute, [1957] 1985.

——. The Theory of Money and Credit. Irvington-on-Hudson(NY): The Foundation for Economic Education, [1952] 1971.

——. The Ultimate Foundation of Economic Science. 2d ed. Kansas City, Mo.: Sheed Andrews and McMeel, [1962] 1978.

Mises, Margit von. My Years with Ludwig von Mises. New Rochelle, N.Y.: Arlington Press, 1976.

Rothbard, Murray N. 1971. “Ludwig von Mises and the Paradigm for our Age.” Modern Age, Issue Fall.

——. The Essential von Mises. Auburn, Ala.: Mises Institute. 2009.

Index

Abnormality, 50

Action, 13–39

concept of and its categorical conditions, 27–29

economic and noneconomic, 42–43

and economic calculation, 149–50

as exchange, 52–53

future concerns, 255

meaning of, 34, 408–10

monetary calculation and, 148

nonrational, 63

praxeology and goals of action, 37

preferring as the basic element in human conduct, 43–44

prerequisites of, 35–36

purpose of, 253

purposeful versus animal reaction, 33–35

rationality of, 32

renunciation of something to which a lower value is assigned, 56

study of in economics, 404–05

temporal relation between, 62

in terms of an end, 106–07

time preference as an essential requisite of, 258–62

and uncertainty, 65–66

and value, 41–57

waiting time, 257

and working time, 253–54

Aggression

government use of and liberty, 383–85

primitive patterns of, 78

Anderson, B.M., on the application of marginal utility theory to money, 230n

Animal reaction versus purposeful action, 33–35

Austria, rent control, 337

Austrian theory

rejection by socialists, 209

trade cycle, 207–08

Autistic exchange, and interpersonal exchange, 77–79

Balance of payments theory, 211–12

Balance of trade, and foreign investment from, 363

Bank notes as legal tender, 240

Banking principle, 205–06

Banking school fallacy, 283

Banking system

short-term debts, 188

soundness of, 188

Bentham, Jeremy, on private property and poverty, 104n

Biological process

and social science, 83–84

versus praxeology, 410

Biology, division of labor, 84–85

Böhm-Bawerk, Eugen von

lengthening the period of production, 262

on the nature of interest, 271–72

roundabout methods of production, 272

versus hedonism, 45–46

work of, 432–34

British Currency-Theory, 238

Business cycle, 277–93

credit expansion, 277–83

monetary stabilization and cyclical policy, 283–93

Calculation

of excessive profits, 159–60

of value, 52

See also Economic calculation; Monetary calculation

Calculation problem. See Economic calculation

Calculus of probability, 68–69

Canned soup example of consumer freedom, 385–86

Capacity, unused, 281

Capital

accumulation in U.S., 296

accumulation of in credit expansion, 286

credit expansion and, 297–98

developing countries, 425

flight of, 189–90

and foreign investment, 361–64

importance of to relative wages, 360

migration of, 368–69

mobility of, 115

and profits, 373–74

shift of control with profit and loss, 161

versus income, 260

and wealth, 132

Capital accounting, and monetary calculation, 148

Capital accumulation, 365–67

Capital goods

and entrepreneurial profits, 371–72

shortage of, 357

Capital market. See International capital markets

Capitalism, 119–32

abolishment of slavery and serfdom, 390

attacks on, 126–27

challenging vested interests, 395

compared to the primitive past, 259

consumer supremacy, 379

development and evolution of, 124–25, 376–79, 387–88

importance of to development, 422

international trade, 127

loopholes capitalism, 323

and the market economy, 119–22

self-realization according to socialists, 392

standard of living under, 126

versus interventionalism and socialism, 314–16, 396

wages and prices, 129

wealth differential, 128

and the Zwangswirtschaft type of socialism, 317–18

Capitalist saving, versus plain saving, 273–75

Capitalists, compared to entrepreneurs, 121

Case probability, 70–74

Caste system of India, 54

Catallactics

market prices, 44

unemployment, 308–11

wage rates, 304

Categorical conditions and the concept of action, 27–29

Causality

versus explaining human action, 66

See also Logical systems; Rationality

Cause and effect, praxeology, 60

Chequing deposits, 188–89

Civilization

and contractual coordination, 81

defined, 263–64

Class probability

about, 68–70

versus case probability, 70–71, 72–73

Classical economics, paradox of value, 42

Classical political economy, on the division of labor, 87–88

Classification terminology for money, 191

Clemenceau, Georges, Keynes attack on, 351

Coinage debasement, Diocletian, 331

Colleges, deconstructionalism in, 14–15

Colonialism, end of, 264

Commodities

objective exchange value of and economic calculation, 138–39

Say’s Law, 342–43

versus value of money, 213

See also Goods

Commodity credit, versus fiduciary media, 284

Communism

and private property, 104

profit and loss and poverty, 170–72

Communism. See Socialism

Communist Manifesto (Marx and Engels), 320–21, 322

Community, sense of, 107

Competition, profit and loss, 163–65

Comte, Auguste, positivism, 423

Consciousness of kind, 107

Consistency concept, praxeology, 64

Consumer supremacy, under capitalism, 378, 379

Consumers

and private property, 381

role in a market economy, 119–21, 295

ultimate wage payers, 296

Consumption, postponement of, 257

Contractual bonds, and hegemonic bonds, 79–82

Contracyclical policies, Keynes and Keynesianism, 355–58

Contradictions and plans, 65n

Cooperation. See Social cooperation

Credit

expansion of, 277–83, 285–86

money in facilitating credit transactions, 185

See also Monetary theory

Credit controversy, monetary theory, 205–10

Credit cycle

capital and, 297–98

crisis in, 291–93

Say’s Law, 344

Credit manipulation, 209–10

Creditor rights, profit and loss, 164

A Critique of Interventionalism (Mises), 21–23

Crowther, J.G., on inquisition, 381

Currency debasement, French Revolution, 331

Currency devaluation, and wage rates, 204–05

Currency principle, 206–07

Das Capital (Marx), 320–21

Davanzati, Bernardo, on quantity theory, 223–24

Debasement, 331

Deconstructionalism, in colleges and universities, 14–15

Deficit spending, Keynes, 346

Deflation, foreign exchange rates, 204

Democracy

defined, 375

the market economy as a democracy for consumers, 120, 155–59

versus socialism, 340

Depreciation quotas, profit and loss, 164

Devaluation, currency devaluation and wage rates, 204–05

Developing countries

capital, 425

versus developed countries, 360

Diocletian, coinage debasement, 331

Direct exchange

to indirect exchange, 134–36

and the value of money, 195

Discount policy, 187–88

Distribution of risks, 69

Division of labor

about, 108–09

biology, 84–85

development of, 92–96

effects of, 115–16

growth of society, 91–92

indirect exchange, 181

international, 87–88

Mises on, 20

monetary calculation, 147

as the principle of social development, 85–88

and purposeful cooperation, 108

Duration of serviceableness, 254

Durkheim, Émile, on the division of labor, 86n

Earned versus unearned income, 161

East, freedom and, 397–98

Economic calculation, 137–50

and human action, 149–50

institutional setting, 147–48

marginal utility in, 138

Mises on, 20

objective exchange value of commodities, 138–39

profit and loss under socialism, 21

socialism and, 143–47

The Economic Consequences of the Peace (Keynes), 348

Economic goods

Say’s Law, 342

versus free goods, 48–49

Economics

about, 412

economization of time, 62

epistemological problems of, 41–44

neutrality of money and quantitative economics, 237

place of abnormality and perversity in, 50

short-run and long-run economics, 238

Economists, Mises on the role of, 22

Education, liberal, 392

Eighteenth century

bank notes as legal tender, 240

changes in economic theory, 400

conditions in England, 124

Employment

full employment, 250

See also Unemployment

Ends versus means, 29–33, 47–49

Engels, Friedrich, on achieving socialism, 320–24

Engineer perspective on risk, 73

England

conditions in the eighteenth century, 124

defending the gold standard in 1931, 187–88

price controls, 334

See also Great Britain

Enterprises, government run, 329

Entrepreneurial profit and loss, 173–78, 370–74

Entrepreneurs

acquiring factors of production, 305

activities of, 153–54

constant recomposition of, 121

defined, 410

in the market place, 157–59

and political dangers, 177

role in a market economy, 119–21

role in creating profits, 160

as speculators, 174–75

Envy of profits earned by others, 160–61

Epicurus and Epicureanism, 37, 45

Epistemological problems in economics, 27–33, 41–44

Equality, profit and loss, 169–70

Equation of exchange, 232–33

Equations, in social sciences, 402

Eudaemonism, theory of value, 45–47

Europe, laws and regulations, 168

Evolution, and society, 93

Excessive profits, calculating and explaining, 159–60

Exchange

action as, 52–53

equation of, 232–33

Exchange rates, preexisting prices in determining market exchange rates, 220–22

Exchange ratio, 210

Exchange relation, importance of, 77–78

Exchange value of money

defined, 214

object value independence of the monetary function, 219

Exchange value versus subjective use, 139

Experiments, in social sciences, 401–02

Export trade, workability of government controls, 336

Expropriation, international capital markets, 170, 363–65

Factors of production, entrepreneurs acquiring, 305

Fascism, Italy, 393–94

Feminism, Mises on, 18

Ferguson, Adam, on the development of technique, 96

Fiat money, creation of, 244–45

Fiduciary media

in credit expansion, 286

versus commodity credit, 284

First World Ward, inflation, 244

Flexible foreign exchange rates, 204–05

Fodder, price control example, 333

Foreign exchange control, as a road to socialism, 322

Foreign exchange controversy, monetary theory, 210–12

Foreign exchange rates

balance of payments theory, 211

flexible, 204–05

Foreign investment, 359–70

Foreign trade, foreign exchange rates, 204

Fouillé, Alfred, on society, 91n

Free goods, versus, economic goods, 48–49

Freedom. See Liberty

French Revolution, currency debasement, 331

Frequency problem. See Class probability

Freuerbach, Ludwig, on instinct and happiness, 38

Full employment, 250

Gambling

calculus of probability, 68–69

gambler’s fallacy, 71

insurance as, 73

See also Speculator

Game theory, Kotarbinski on, 415n

Gas lighting example of foreign investment, 362

General Theory of Employment, Interest, and Money (Keynes), 249–50, 353–54

Germany

Hindenburg plan, 318

income levels, 369

inflation, 245–46

Marx’s exile from Prussia, 394–95

paternal government, 339

price controls and socialism, 335

recovery following the Second World War, 132

Zwangswirtschaft type of socialism, 317–18

Gesell, Silvio, Keynes and, 347, 351

Goals of action and praxeology, 37

Gold, as money, 193–94

Gold standard

the case for, 205

England defending in 1931, 187–88

inflation, 246

Goods

marketability of, 182–83

suitability as a medium of exchange, 194–95

Government

law and liberty, 395

necessity of, 390

negation of liberty, 383–85

paternal government, 339

role of, 328–30, 427–28

Great Britain

foreign investment from, 362

gold parity of the pound, 247–48

population growth, 368

price controls, 318–19, 336

Zwangswirtschaft type of socialism, 317–18

See also England

Greek ideology, 391

Hale, Robert L., on freedom, 385

Happiness

explained, 36–37

Freuerbach on instinct and happiness, 38

Harris, Seymour E., on Keynes, 349–50

Hedonism, Bohm-Bawerk versus, 45–46

Hegemonic bonds, and contractual bonds, 79–82

Heisenberg principle, 418

Helfferich, Karl, on marginal-utility theory, 227–30

Hindenburg Plan, 318, 334

Historical-Realistic School, value of money, 198

History

analyzing the caste system of India, 54

economic theory and, 407

interpreting, 425

logical systems, 408

praxeology, 414

role of, 409–10

social experience, 400–01

and theory, 53–57

Housing shortage, and rent controls in the U.S., 337

Human action. See Action

Human Action (Mises)

importance of, 16

on the importance of economic thinking, 19

a student’s response to, 23

Human will, and social evolution, 98

Hypotheses, defined, 75–76

Income

earned versus unearned, 161

Germany, 369

Switzerland, 370

versus capital, 260

Income equalization, 169–70

Index numbers, purchasing power, 232

Indexing, 249

India

caste system, 54

foreign investment, 365

Indirect exchange

division of labor, 181

emergence of, 133–36

Individual

and the division of labor, 97–98

safeguarding freedoms of, 390

self-realization under capitalism according to socialists, 392

and social cooperation, 106–08

versus society, 90–92

within society, 116–17

Individualism, Western social philosophy, 388–89

Inductive reasoning, versus problem of probability, 67–68

Industrial Revolution, effects of, 378

Inference, probable inference, 67

Inflation

foreign exchange rates, 204

Keynes, 347

monetary inflation case, 234–35

monetary theory, 239–51

unemployment and wages, 295–302

Inquisition, Crowther on, 381

Instinct-sociology

animal reaction versus purposeful action, 33–35

problem of human action, 37–39

Instincts and impulses

animal reaction versus purposeful action, 33–35

Freuerbach on instinct and happiness, 38

methods of instinct-sociology, 37–39

Institutional unemployment, versus catallactic unemployment, 311

Insurance, as gambling, 73

Intellectuals, socialism and, 392

Interest rates, 267–76

about, 267–69, 277–78

and credit expansion, 278

in credit expansion, 286–87

effect of short-term credit on, 205–06

originary interest, 269–76

profit and loss, 152

role of in Austrian theory, 207

versus credit in stabilization measures, 282n

Intergovernmental loans versus international capital markets, 266

International capital markets

altering the conditions for war, 265–66

end of colonialism, 264–65

expropriation, 170

versus intergovernmental loans, 266

International division of labor, theory of, 87–88

International trade

capitalism, 127

and law of comparative cost, 112

Interpersonal exchange, and autistic exchange, 77–79

Interventionalism

defined, 330

effect on laisez faire, 171

freedom, 427–32

and price controls, 328–40

versus capitalism and socialism, 314–16, 320

warning about, 23

Investment, misdirected in a credit boom, 279

Iron law of wages, 131–32

Irrationality

ends versus means, 29–33

See also Rationality

Italy, fascism, 393–94

Judgments of value

by historians, 54

logical and syntactical, 55–57

propositions of existence, 53

Kant, Immanuel, on society, 91

Keynes and Keynesianism, 341–58

contracyclical policies, 355–58

on the gold standard, 246

on inflation and wage rates, 249–50

Say’s Law, 341–346

substitution of socialism for capitalism, 347–55

Kings, role of, 339

Knies, Karl

classification terminology for money, 191

on gold and silver as money, 193–94

Kotarbinski, Tadeusz, on game theory, 415n

Labor

as a scarce factor of production, 303–08

alleged monopolistic exploitation of, 305–08

connexity of prices, production and, 304

mobility of, 115

social division of and freedom, 310–11

specificity of, 303–04

See also Wages

Labor unions

effects of, 367–68

inflation, 248

Keynes and, 352–53

and Marxism, 131–32

purchasing power argument, 299–300

wage rates, 297, 298

Labour unions, policy of, 299

Laisez faire

effect of socialism and interventionism, 171

See also Capitalism

Landflucht, 128

Laski, H.

liberty within the law, 394

on Soviet Russia, 393

Lassalle, Ferdinand, on private property, 104–05

Law, and liberty, 395

Law, John, on money value, 192–93

Law of association, 109–15

Law of comparative cost, international trade, 112

Law of price, 217

Law of returns, and law of comparative cost, 113

Legal tender, bank notes as, 240

Lenin

building production, 380

on capitalism, 168

versus liberty, 380

Liberal education, reduction of, 392

Liberalism [of the 18th century]

defined, 359

private ownership and, 103–04

Liberty, 375–99

defined, 375–376

evolution of capitalism, 376–79, 387–88

interventionalism, 427–32

Romantic philosophy, 383–87

social division of labor and, 310–11

socialism and, 379–83

as a Western ideal, 389–98

Lilienfeld, Paul von, on organic sociology, 83n

Logical positivism, 413

Logical structure of judgments of value, 55–57

Logical systems

history, 408

inductive reasoning versus problem of probability, 67–68

versus praxeology, 60

See also Causality; Rationality

Loopholes capitalism, 323

Malinvestment, in credit cycle, 279, 288–89

Man, Economy and State (Rothbard), 428–32

Mantoux, Étienne, on The Economic Consequences of the Peace (Keynes), 348

Marginal productivity of labor, 361

Marginal utility theory

basis of, 231

in economic calculation, 138

monetary theory, 223–30

Wicksell on marginal utility and the value of money, 226–27

Market economy

as a democracy of consumers, 120

entrepreneurial profit and loss, 178

social division of labor, 395

Market prices, catallactics, 44

Marketability of goods, 182–83

Marketing, under capitalism, 377

Markets

and capitalism, 119–22

entrepreneurs in, 157–59

supremacy of, 326

Marshall Plan, 171–72

Marx and Marxism

on achieving socialism, 320–24

on capitalism, 129–30

and the division of labor, 97

labor unions and, 131–32

Marx’s exile from Prussia, 394–95

Mises on, 18

on private property, 105

Mass production, beginnings of, 125

Materialism, and the division of labor, 96

Mathematics, in economics, 403–04, 429

Means versus ends, 29–33, 47–49

Menger, Carl

origin of money, 133–36

on value of money, 224–25

Metaphorical expressions, 75

Military power

intergovernmental loans and, 266

and social organization, 100

See also Wars

Milk, price control example, 331–33

Mises, Ludwig von

contribution of, 17–25

A Critique of Interventionalism, 21–23

on the division of labor, 20

on economic calculation, 20

on feminism, 18

Human Action, 16, 23

importance of, 13

lessons in integrity from his life, 24–25

on Marxism, 18

on monetary exchange in a monetary economy, 20–21

Planning for Freedom and Sixteen Other Essays (Mises), 16–17

on private property, 21

on relativism, 18

on the role of economists, 22

Mixed economic system, defined, 122

Mobility, of capital and labor, 115

Monetary calculation

as a method of thinking, 147–50

capital accounting, 148

division of labor, 147

limits to, 140

meaning of, 140–41

planning and acting, 148

Monetary economy

Mises on voluntary exchange in, 20–21

voluntary exchange in, 21

Monetary policy, importance of, 302

Monetary stabilization, and the business cycle, 283–93

Monetary theory, 179–251

business cycle, 281

conditions for money, 179–80

credit controversy, 205–10

discount policy, 187–88

foreign exchange controversy, 210–12

inflation, 239–51

marginal-utility theory, 223–30

monetary services and the value of money, 192–95

money and economic goods, 191–92

money substitutes, 199–200

non-neutrality of money, 231–39

object value independence of the monetary function, 219–20

objective exchange value of money, 215–16

origin of money, 180–84

preexisting prices in determining market exchange rates, 220–22

purchasing power controversy, 201–04

secondary functions of money, 184–87

subjective and objective factors in the theory of the value of money, 212–15

subjective valuation of money and objective exchange value, 217–18

value of money, 197–99

velocity of circulation, 195–97

Monetary utility, 228

Money

as a measure of value, 139

Menger on the origin of, 133–36

Monopolies, alleged monopolistic exploitation of workers, 305–08

Monopoly, railroad allegations of, 125–26

Müller, Adam, on the division of labor, 97n

National equality versus world equality, 169

Natural interest rate

defined, 286

and malinvestment, 288

Natural science versus social science, 399–411

Nazism, support for, 171

Necker, Jacques, 240

Needs, scale of, 51

Neurath, Otto, on socialization, 145

Neutrality of money

about, 201–02

and quantitative economics, 237

Non-neutrality of money, 231–39

Non-profit organizations, 154–55

Objective exchange value

of commodities in economic calculation, 138–39

of money, 215–16

subjective valuation of money, 217–18

Objective theories of value, money, 223

Organic sociology, Lilienfeld on, 83n

Organic theory of the state, 83

Organism versus organization, 88–90

Originary interest, 269–76

Orwell, George, on freedom, 381

Paradox of value, 42

Payment, money as medium of, 186–87

Period of production and interest, 273

Perversity, 50

Plain saving versus capitalist saving, 273–75

Planning

monetary calculation and, 148

See also Socialism

Planning for Freedom and Sixteen Other Essays (Mises), value of, 16–17

Plans, and contradictions, 65n

Policy

insincerity in the fight against inflation, 301–02

Keynesian, 345, 346, 355–58

labor unions, 299, 300–01

monetary policy importance of, 302

monetary stabilization and the business cycle, 283–93

See also Price controls; Socialism

Political dangers, entrepreneurs and, 177

Pooling of risks, 69

Positivism, 400, 419–41, 423–26

Poverty

communism and profit and loss, 170–72

and private property, 104n

as source of socialism, 172

Praxeology

about, 412–13

active versus passive man, 35

association and progressive intensification, 111

capital versus income, 260

cause and effect, 60

consistency concept, 64

economic calculation, 149–50

and goals of action, 37

history, 414

the individual within society, 116–17

innate characteristics, 263

logic, 417

Menger and, 133

and probability, 66

reality, 47

synchronism, 62–65

temporal character of, 59–60

theorems, 419–20

and time, 60

versus biological process, 410

versus logical systems, 60

versus psychology, 34

versus science, 418

versus the physiological, 261

Preferring as the basic element in human conduct, 43–44

Presence of mind, 64

Present versus the future and past, 61

Price controls, 325–40

futility of, 325–28

Great Britain, 318–19

and interventionalism, 328–40

road to socialism, 316–17

Price level, defined, 242

Prices

capitalism, 129

connexity of labor, production and, 304

effect of short-term credit on, 205–06

preexisting prices in determining market exchange rates, 220–22

premium in credit cycle, 287–88

See also Market prices

Private property

consumer autonomy and independence, 381

freedom and, 387

Mises on, 21

and productive efficiency, 388

and social evolution, 103–05

Probability

case probability, 70–74

class probability, 68–70

and praxeology, 66

Production

Böhm-Bawerk on the lengthening the period of, 262

connexity of labor, prices and, 304

period of, 256, 273

roundabout methods of, 272

See also Factors of production

Productive efficiency, private property and, 388

Profit and loss, 151–78

arguments against, 166–68

calculating under socialism, 21

communism and poverty, 170–72

competition, 163–65

consequences of abolishing profit, 165–66

democracy of the market place, 155–59

distinction with other proceeds, 152–54

emergence of, 151–52

entrepreneurial, 173–78, 370–74

equality, 169–70

progressing versus the retrogressing economy, 162–63

shift of control of capital, 161

social function of, 159–61

Profiteering, profit and loss, 164–65

Progressing economy, defined, 370

Progressive taxation, as a road to socialism, 322–23

Propositions of existence, judgments of value, 53

Protectionism

capital accumulation, 367

governments and, 338

Psychology, versus praxeology, 34

Purchasing power

futility of attempts to make money stable in terms of purchasing power, 238

index numbers, 232

labor unions, 299–300

Purchasing power parity theory, 210–11

Quantitative definiteness, 417–19

Quantitative economics, and neutrality of money, 237

Quantity of money

banking school fallacy, 283

Say’s Law, 344

Quantity theories

about, 198

money, 223–24

Railroad companies, allegations of monopoly, 125–26

Rationality

of action, 32

versus constancy, 64

versus irrationality in human action, 31–33

See also Irrationality

Real wages, gold parity with the pound, 247–48

Reality, praxeology, 47

Reason. See Logical systems

Relativism, Mises on, 18

Rent control, 337–38

Ricardo, David

capital, 362

on international trade, 112

on Keynes, 350

law of association, 109–15

on the mobility of capital and labor, 115

Risk, pooling and distribution of, 69

Roman Empire, coinage debasement under Diocletian, 331

Romantic philosophy, 383–87

Roscher, Wilhelm, on classification terminology for money, 191

Rothbard, Murray N., Man, Economy and State, 428–32

Roundabout methods of production, 272

Rousseau, Jean Jacques, on freedom and society, 383–87

Rural-urban migration, 128

Sammuelson, Paul A., on Keynesianism, 350

Savings

benefits from, 130

forced in credit cycle, 289–91

plain saving and capitalist saving, 273–75

Savings deposits, 188, 189

Say’s Law, 341–46

Scale of needs, 51

Scale of value, 49–51, 63

Second World War, price controls in Britain, 336

Serfdom, abolished in age of capitalism, 390

Short-term credits, effect on prices and interest rates, 205–06

Short-term debts, banking system, 188

Silver, as money, 193–94

Slavery, abolished in age of capitalism, 390

Social compatabilism, 209–10

Social cooperation

and individual, 106–08

kinds of, 79–82

Social division of labor, market economy, 395

Social engineering, 73–74

Social evolution

about, 93

and private property, 103–05

Social experience, historical experience, 400–01

Social function, of profit and loss, 159–61

Social regression, 98–103

Social science

about, 82–83

versus natural science, 399–411

Socialism, 82–105

attractiveness of, 423

calculating profit and loss, 21

effect on laisez faire, 171

intellectuals and, 392

and liberty, 384

and private property, 104–05

rejection of Austrian theory, 209

roads to, 313–24, 334

substitution of socialism for capitalism in Keynesianism, 347–55

versus capitalism, 396

versus democracy, 340

Socialism and

economic calculation, 143–47

liberty, 379–83

Socialization, Neurath on, 145

Society

the individual within, 116–17

Rousseau on freedom and, 383–87

versus the individual, 90–92

Sociology, Lilienfeld on organic sociology, 83n

Sombart, Werner, “The Führer, our Führer”, 339

Soviet Russia, Laski on, 393

Speculative constructions, 406–07

Speculator

defined, 74

presence of mind, 64

See also Gambling

Speculators, entrepreneurs as, 174–75

Stabilizing measures, interest rates versus credit, 282n

Stage theories, 93–95

Standard of living, under capitalism, 126

State, organic theory of, 83

State. See Government; Socialism

State capitalism. See Socialism

Subjective theory of value, Law on, 193

Subjective valuation of money, objective exchange value, 217–18

Subjective value in monetary theory, 212

Subjective view, ends versus means, 30

Subjectivity of valuation theorem, 55

Sweden, contracyclical policies, 357n

Switzerland, income levels, 370

Synchronism, praxeology, 62–65

Syntactical structure of judgments of value, 55–57

Tax laws

profit and loss, 164

progressive taxation as a road to socialism, 322–23

Tax money versus money creation, 242

Technique

entrepreneurial profit and loss, 175

Ferguson on the development of, 96

Terminology, under socialism in Germany, 335

Theorems

praxeology, 419–20

subjectivity of valuation theorem, 55

validity over time, 29

Theory

balance of payments theory, 211–12

British Currency-Theory, 238

changes in the eighteenth century, 400

and historical experience, 407

and history, 53–57

international division of labor, 87–88

marginal-utility theory and monetary theory, 223–30

mathematics in, 402–04

organic theory of the state, 83

purchasing power parity theory, 210–11

quantity theories, 198

stage theories, 93–95

subjective theory of value, 193

trade cycle theory, 207–08

See also Action; Economics; Monetary theory; Praxeology

Time

economization of, 62

and praxeology, 60

synchronism and praxeology, 62–65

temporal relation between actions, 62

Time preference, 253–66

as an essential requisite of action, 258–62

valuation of time periods, 253–58

Trade cycle theory, 207–08

Say’s Law, 343

See also International trade

Uncertainty, and action, 65–66

Unearned versus earned income, 161

Unemployment

catallactic, 308–11

institutional versus catallactic, 311

under “middle of the road” policies, 319–20

wages and inflation, 295–302

See also Employment

Unions. See Labor unions

United Fruit Company, wage rates, 369

United States of America

capital accumulation, 296

rent control, 337

Universities, deconstructionalism in, 14–15

Unused capacity, meaning of, 281

Utility. See Marginal utility theory; Monetary utility

Validity, of theorem over time, 29

Value

and action, 41–57

action and the renunciation of something to which a lower value is assigned, 56

calculation of, 52, 141–43

eudaemonism and the theory of, 45–47

judgments of, 53, 54

Law on money value, 192–193

logical and syntactical structure of judgments of, 55–57

of money: and industrial uses, 218

of money: subjective and objective factors in, 212–15

of money: Wicksell on marginal utility and the value of money, 226–27

money as a measure of, 139

money as a transmitter of, 185–86

money in the aggregate economy, 196–97

objective theories of value, 223

scale of, 49–51

subjectivity of valuation theorem, 55

Velocity of circulation, 195–97, 233

Vienna, rent control, 337

Violence

government use of and liberty, 383–85

primitive patterns of, 78

Voluntary exchange, Mises on in a monetary economy, 20–21

Wage rates

in credit expansion, 285

currency devaluation and, 204–05

social pressure, 310

United Fruit Company, 369

Wages

capitalism, 129

general discussion of, 303–08

iron law of, 131–32

marginal productivity of labor, 361

unemployment and inflation, 295–302

Waiting time, action, 257

War

and inflation, 242–43

removal of incentive for, 265

Wars, intergovernmental loans and, 266

Wealth and capital, 132

Western social philosophy

individualism, 388–89

liberty, 389–98

Wicksell, Knut

on indirect exchange, 181n

on marginal utility and the value of money, 226–27

Wieser, Friedrich, on the quantity theory of money, 225

World equality versus national equality, 169

World War I, inflation, 24, 244

World War II, price controls in Britain, 336

Zwangswirtschaft type of socialism, 317–18