Ludwig Von Mises

Biography

In his work, Mises opposes socialism and argues for the establishment of free markets and for a policy of unrestricted laissez-faire, division of labor, and private capital investment. He is also against government intervention in the market, and argues that its power should be limited to providing defense of person and property. Mises considers that spontaneous orders are the result of human action.

1. BACKGROUND
   • Born on September 29, 1881 in Lemberg, Galicia.
   • Post-doctoral student from University of Vienna
2. CONTRIBUTIONS
   • Established the “Neo-Austrian” School
   1. Mises Business Cycle Theory: The idea that inflation and depressions are due to inflationary bank credit.
   2. “Theory of Money and Credit:” Explored the integration of the theory of money into the general theory of marginal utility and price.
   3. Monetary Theory: Government policy should follow the gold standard because increases in money supply cause inflation and business cycles.
   • “Economic Calculation in the Socialist Commonwealth:” Argued that it would be impossible for a socialist planning board to plan a modern economic system; furthermore, no attempt at artificial “markets” would work, since a genuine pricing and costing system requires an exchange of property titles, and therefore private property in the means of production.
   • “Socialism:” A philosophical, sociological, and economic critique that provides a thorough and vital destruction of socialism.
   • “Human Action:” Comprehensive literature written on economic theory.
   • “Theory and History:” Describes the basic differences and functions of theory and history in economics as well as all the various disciplines of human action.
3. ECONOMIC THOUGHT
   • Success and growth of the human race can only be achieved through free markets, division of labor, and private capital investment.
   • Socialism is unsuccessful because it prevents rational pricing or estimating costs.
   • Laissez-faire radical: condemned tariffs, immigration restrictions, or governmental attempts to enforce morality.
   • Cultural and sociological conservative: Attacked egalitarianism, criticized political feminism as a facet of socialism.
   • Believed a system of free-market capitalism affects personal morality and the nuclear family.

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Hayek & The Socialist Calculation Debate || Friedrich A. Hayek || Ludwig Von Mises || What is Socialist Calculation Debate? || Critiques of the Socialist Calculation Debate || Knowledge Problem || The impact of Hayek's 1945 paper || Authors' View || Questions to Ask || Sources Cited