Archive for Austrian School
Austrian Economics and Pedagogy
Posted by: |I love economics and truly believe understanding it is critical to the further spread of liberty. Check out this awesome video from Reason TV about teaching and learning that applies not only to understanding economics, but to any subject or curriculum. I am a vocal critic of public education and am excited to see people like this with fresh ideas to revolutionize the way we learn. (This guy is a Montessori advocate, which I think is great!)
Tags: Austrian School, education
Economic Theory, Self-Interest, and the Bible
Posted by: |This essay continues the Christian Theology and Public Policy Course by John Cobin, author of the books Bible and Government and Christian Theology of Public Policy.
Economic theory tells us a lot about the nature of political actors along with the inadequacy of their knowledge in regulating society to bring about the common good. All rational men act purposefully to remove uneasiness from their lives. They try to maximize those things in life that give them the greatest satisfaction (e.g., money, love, power, influence, charity, altruism, holiness, etc.). However, they also act in such a way that engenders cooperation with others, facilitating and exploiting mutually beneficial gains from trade. Peaceful cooperation is the result of the operation of the market economy. People pursuing their own self-interest voluntarily cooperate to provide the needs and wants demanded in society.
We must be careful to not equate self-interested motives with selfish ones. The former describes one’s economic motivation while the latter deals with one’s character. For example, a person might have altruism or to “shepherd the flock of God” (1 Peter 5:2) as his highest goal. He would thus pursue the self-interested agenda that he believes has the highest probability of attaining that goal. He might also pursue other things along with this objective, such as owning his home debt-free, raising four children, and taking his wife on an annual skiing trip. But all these elements (and others we might think of) mix together into concerted, purposeful, self-interested action to attain the conglomerate goal.
Tags: Austrian School, economics, human action, Ludwig von Mises, self-interest, theology
Have you ever wondered what book you ought to give to a person inquiring about libertarianism to you? What do you do? It is actually a somewhat difficult proposition. Great books are out there, for sure, and certain books fit certain people better than others. However, there are generally two books that I categorically recommend: Ron Paul’s The Revolution: A Manifesto, and Murray Rothbard’s For a New Liberty. Today, let me introduce to you the book that, at least for me, has just surpassed both of these for the introductory libertarian reader – Jacob Huebert’s Libertarianism Today.
At its core, Jacob’s book addresses in brief the history of classical liberalism and the libertarian movement, explains the basics of the philosophy of liberty, and tells the stories of a number of modern libertarian organizations at work right now. It’s wonderfully entertaining, easy to read, and splendidly pithy.
Among Huebert’s most salient points is his excoriation of “conservatism” and its relationship to libertarianism. He completely demolishes the myth that Ronald Reagan was even close to a libertarian, and hopefully such words will shock conservatives into realizing that most, if not all, of “traditional conservatism” as enshrined in Reagan is nothing short of a lie.
I’m a particular fan of the chapter on war (read an excerpt here); it’s so great that I have to quote the first paragraph in full:
Libertarianism and war are not compatible. One reason why should be obvious: In war, governments commit legalized mass-murder. In modern warfare especially, war is not just waged among voluntary combatants, but kills, maims, and otherwise harms innocent people. Then, of course, wars must be funded through taxes, which are extracted from U.S. citizens by force — a form of legalized theft, as far as libertarians are concerned. And, historically, the U.S. has used conscription — legalized slavery — to force people to fight and die. In addition, an interventionist foreign policy makes civilians targets for retaliation, so governments indirectly cause more violence against their own people when they become involved in other countries’ affairs. Plus, war is always accompanied by many other new restrictions on liberty, many of which are sold as supposedly temporary wartime measures but then never go away.
And now I… have nothing else to say. This is it. This is what we need to communicate to everybody. War kills. War is immoral. To the Christian, aggressive war is among the greatest of all evils humans can commit. Peace is our code. Period.
Another great part of Jacob’s book is his chapter on education. Public, compulsory schooling is not libertarian. And guess what, vouchers are not a viable alternative. This principle is somewhat difficult to explain to many people, but I have contended for years that vouchers are just another back door for government control of education. Huebert does a much better job of explaining it than I ever have.
I could go on and on just describing the chapters themselves, but I want to give you a concise flavor for the book so I will stop with the praise here. However, there are a few weaknesses to the book that I would be remiss not to point out. First, I think that Jacob was a bit too critical of the Libertarian Party, and a bit too kind to the Campaign for Liberty. It’s true that the LP has not lived up to the radical vision of its founders at times, and there are questions that I still have about its future. Nevertheless, it continues to be the home of a huge number of amazing activists and thinkers, and we dismiss the effect that it can have. The LP will only fail to live up to its original purpose if we let it – Murray Rothbard said as much many years ago and prominent LP members such as Mary Ruwart and Lee Wrights say the same today.
In contrast, despite the influence of Ron Paul and the large amount of money initially invested, I am a bit underwhelmed by what the Campaign for Liberty has been able to do at the national level. In truth, the awareness that America now has of the Federal Reserve and its criminal nature is incredible, but is this the result of C4L or is it just the momentum from 2008? I personally wish C4L would be more a hub of local activism rather than another organization trying to take on the House of Representatives. Don’t get me wrong, I want to see C4L succeed, but I also want to make sure that local efforts are well-funded and well-staffed.
This leads me to another minor oversight in the book: the lack of discussion of local activism. Don’t get me wrong, I despise politics and the electoral process is completely inane. Moreover, I readily admit national politics stinks and is frequently a waste of money except in very specific situations (the Ron Paul Presidential Campaign being the most spectacular example). But on a local level (i.e. states, counties, cities) individuals can have very real impacts that truly promote liberty and help people live more freely. I wish Jacob had explored this more thoroughly, because I imagine that concrete examples of success would inspire people to get out there and make a difference.
Finally, the price tag is a bit stiff, but I still contend that you need this book on your bookshelf to have, read, and lend out. While Amazon.com generally sells the book for $35, you can get a paperback copy for $25 at the Mises Institute Store. No matter what you choose, the knowledge you will gain from reading this is totally worth it.
Please consider buying Libertarianism Today at Amazon.com and LCC will then get a small kick-back from the sale. Remember, LCC receives a small percentage of any shopping you do at Amazon when you go through an LCC link. Help keep LCC growing and growing; your support is much appreciated!
Tags: Austrian School, Book Reviews, capitalism, economics, history, libertarianism, philosophy, politics, recommended books
Mises Circle Houston Recap
Posted by: |I’ve been reticent to post a recap of Mises Circle Houston because I didn’t have any photos of the event until yesterday. But now, everything is here and I’m happy to tell you a little about it… First off, I need to send a great big THANK YOU to Jeffrey Davis, the conference sponsor, and the entire staff of the Mises Institute for their amazing service – Kristy, Norma, Pat, Chad, and Willard. We love you guys!!!
Our group from the Libertarian Longhorns (and Robert Butler, executive director of LP-Texas) left Austin around 6am on Saturday, January 23, to make sure we arrived in time to get a decent seat. Robert volunteered his vehicle, and so I didn’t have to drive. We talked up the LP’s plans and upcoming events on the drive to Houston and back.
Upon arrival, we had the privilege to meet some really neat people. I happened to run across a few LCC readers as well, like Yvonne Kelly (on the far left of the group picture). Tom Woods said hello as he walked in, and I briefly spoke with Lew Rockwell as well while drinking some coffee.
The theme of the day was "the failure of Keynesianism" — appropriate considering our current political situation, wouldn’t you say? Doug French was the first speaker. For some reason I have lost my notes, but his topic was "Bank Failures in a Keynesian World." What was most interesting to me about his talk was the striking parallels of the circumstances preceding "the lost decade" and the circumstances we are now experiencing in the United States. One can only hope that failed policies would be remembered, but alas and alack it’s politics not wisdom that we deal with.
Tom Woods spoke about "Keynesian Predictions vs. American History." Did you know that as World War 2 was coming to a close, policy makers were concerned that the soldiers coming home would overwhelm the economy and that a new depression would ensue. How wrong they were: 1946 was the single greatest year for the American economy ever. I also enjoyed his ransacking of Paul Samuelson and Paul Krugman.
Before lunch we enjoyed hearing the beloved Congressman Ron Paul. His principal point was simply that a true revolution is philosophic in nature. This is most certainly true, and the Austrian School of Economics is at the forefront of this change. Dr. Paul touched on many topics, but as he likes to do he focused on monetary policy and foreign policy. He made specific mention of the importance of auditing the Federal Reserve. He said that once audited, two well-kept secrets will be brought into the open once again: (1) that the Fed frequently bails out friends via the discount window (Fed short term loans), and (2) that the Fed has many international activities unaccounted for. Thus, we find monetary policy is also connected to foreign policy as well. Call me conspiratorial if you must, but the CIA’s funding goes beyond Congress – it’s tied to the Fed as well. Best quote from Ron: "Quite frankly, in a Constitutional Republic, you would not have a CIA."
Lew Rockwell was our final speaker for the day on "Economics and Moral Courage." He noted that although in many ways we are quite free (such as the freedom of the internet), we are also having much freedom taken away from us little by little. Moreover, as more freedom is stolen from us, people are more frequently not able to envision how freedom actually works. They simply do not have experience in understanding cause and effect. In truth, this is due to the "banality of evil," something small that ekes its way into public life. For example, the acceptance of a wrong premise about the role of government in life can be a first step toward more and more government control, leading finally to totalitarianism. What begins with banality, ends in bloodshed.
Overall, I’d say it was a great day…
Tags: Austrian School, economics, free market, free society, freedom, history, keynesianism, Mises Institute, Ron Paul




