ABSTRACT

Based on the philosophies of those with whom we have so far dealt, the inclusion of the Austrian economist Ludwig Edler von Mises (1881-1973) may appear to be peculiar. His 1912 Theorie des Geldes und der Umlaufsmittel (Theory of Money and Credit) is still highly respected as the statement of the Austrian theory of money and the business cycle, as it established him as the leader of the successor generation to Böhm-Bawerk. His attack on Socialism – both in his 1922 Die Gemeinwirtschaft: Untersuchungen über der Sozialismus (translated as Socialism) and in the famous socialist calculation debate – established his credentials as an advocate of the free-market philosophy. Yet Mises is generally regarded as the most articulate spokesman, not of the liberal position, but of the libertarian point of view; his 1949 masterwork, Human Action, is widely regarded as one of the most profound statements of the principles of this philosophy.1 His perception of man as a rational being in pursuit of rationally determined ends, and his insistence on a strict laissez-faire attitude predicated on the belief that the best social outcomes are the result of unfettered human interaction, are not inconsonant with the views of those considered above, and yet not even Spencer and Sumner, generally held to be ardent believers in the laissez-faire philosophy, seem to come close to the attitude of Mises.