The Ludwig von Mises Institute
The Ludwig von Mises Institute is the research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics. Working in the intellectual tradition of Ludwig von Mises (1881-1973) and Murray N. Rothbard (1926-1995), with a vast array of publications, programs, and fellowships, the Mises Institute seeks a radical shift in the intellectual climate as the foundation for a renewal of the free and prosperous commonwealth.
It is the mission of the Mises Institute to restore a high place for theory in economics and the social sciences, encourage a revival of critical historical research, and draw attention to neglected traditions in Western philosophy. In this cause, the Mises Institute works to advance the Austrian School of economics and the Misesian tradition, and, in application, defends the market economy, private property, sound money, and peaceful international relations, while opposing government intervention as economically and socially destructive
The Austrian School (also known as the “Vienna School” or the “Psychological School”) is a heterodox school of economics that emphasizes the spontaneous organizing power of the price mechanism, holds that the complexity of subjective human choices makes mathematical modeling of the evolving market extremely difficult (or impossible) and therefore advocates a laissez faire approach to the economy.
Austrian School economists advocate the enforcement of voluntary contractual agreements between economic agents, but otherwise the smallest imposition of coercive force (especially government-imposed) on commercial transactions
Although often controversial, the Austrian School was once influential dating back to the early 20th century, but currently contributes relatively little to mainstream economic thought. In fact today, Austria is considered by many to be more socialistic then capitalistic.
The Austrian School derives its name from its predominantly Austrian founders and early supporters, including Carl Menger, Eugen von Böhm-Bawerk and Ludwig von Mises.
Despite this name, supporters and proponents of the Austrian School can come from any part of the world, and there are now few Austrian School economists of Austrian nationality. Prominent Austrian School economists of the 20th century include Joseph Schumpeter, Henry Hazlitt, Murray Rothbard, and Nobel Laureate Friedrich Hayek.
Ludwig von Mises
Ludwig von Mises (September 29, 1881 – October 10, 1973) was an Austrian economist, philosopher, author and classical liberal who had a major influence on the modern libertarian movement.
Mises wrote and lectured extensively on behalf of classical liberalism and is seen as one of the leaders of the Austrian School of economics.
Mises argued that money is demanded for its usefulness in purchasing other goods, rather than for its own sake and that any unsound credit expansion causes business cycles. His other notable contribution was his argument that socialism must fail economically because of the economic calculation problem – the impossibility of a socialist government being able to make the economic calculations required to organize a complex economy.
Mises projected that without a market economy there would be no functional price system, which he held essential for achieving rational and efficient allocation of capital goods to their most productive uses. Socialism would fail as demand cannot be known without prices, according to Mises.
Ludwig von Mises' criticism of socialist
paths of economic development is well-known:
He would say, "The only certain fact about Russian affairs under the Soviet regime with regard to which all people agree is: that the standard of living of the Russian masses is much lower than that of the masses in the country which is universally considered as the paragon of capitalism, the United States of America. If we were to regard the Soviet regime as an experiment, we would have to say that the experiment has clearly demonstrated the superiority of capitalism and the inferiority of socialism."