Category Archive: 6b) Austrian Economics

To prevent public debt from soaring in the wake of the global financial crisis in 2009, Germany has enshrined a “debt brake” in its constitution. The debt brake sets strict limits on federal public debt levels and restrains government borrowing. This fiscal rule has served its purpose, and public debt has been on a downward path, dropping by about 15 percentage points of gross domestic product (GDP) since its introduction. Yet the government...

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In his 1927 book Liberalism, the radical classical liberal and economist Ludwig von Mises took a strict and expansive view in favor of secession. Specifically, he noted that respect for the right of self-determination required extant states to allow the separation of new polities seeking secession. He writes: The right of self-determination in regard to the question of membership in a state thus means: whenever the inhabitants of a particular...

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Adam Smith, in his 1776 book The Wealth of Nations, stipulates the guiding principles of classical economic orthodoxy, establishing guiding principles that will guide the English economic paradigm. Despite a tradition more focused on Colbertism (between the sixteenth and seventeenth centuries) and physiocracy (from the eighteenth century onwards), classical economics managed to penetrate this French academic environment due to names such as...

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Today, Serbia does not enjoy a reputation as a free country. The philosophy of strong hand, top-down organization of society, a socialist understanding of economy, and fierce nationalism are its trademarks. The legacy of socialism with a human face, of which I have written elsewhere, has entrenched a statist mentality among the population and has shaped the understanding of economics among the political and intellectual elite. But it is little...

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In last week’s column, I discussed Scott Sehon’s new book, Socialism: A Logical Introduction (Oxford University Press, 2024), and this week, I’d like to continue the analysis of the book, focusing on Sehon’s discussion of rights under socialism. The main topic we need to look at is whether socialism violates important rights that people ought to be accorded in a just political and social system. Before addressing this topic, though, we need to look...

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Javier Milei has already been sworn in as the new president of Argentina and faces a Promethean challenge, having inherited a country riddled with debt and inflation. Balancing the books is going to be his priority before he can implement most of his innovative ideas, and that is going to cause temporary pain as he has clearly admitted. He does not seem keen on wasting time though, and in his first weeks we have seen a historic revocation of more...

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Bankruptcy is a developing twenty-first century theme in America. We see bankruptcy in federal government policy and spending, many corporate boardroom decisions, nonprofit and religious groups’ overspending and arrogance, individuals, some United States cities and counties, and the territory of Puerto Rico. The federal bankruptcy law consisting of Chapters 7, 9, 11, and 13 allow bankruptcy filings for local governments, individuals, nonprofit...

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Murray Rothbard called Richard Cantillon the “father of modern economics.” While that title is often given to Adam Smith, Rothbard suggested that all the good things in Smith were first discovered by Cantillon or other pre-Smithian economists and that virtually all of Smith’s original ideas were “a significant deterioration of economic thought.” One of Cantillon’s greatest insights involved the uneven effects of monetary expansion. New money enters...

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Breaking up with a person you have known for more than thirty years, with whom you have participated in countless conferences and co-authored a couple of articles, even if only in the somewhat distant past, is nothing done lightly. It is even harder, if one shares with this person a common standing as a public intellectual and both our names are mentioned frequently in one breath as prominent students of the same teacher, Murray N. Rothbard, and as...

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