Ludwig von Mises | |
---|---|
![]() | |
Born | Ludwig Heinrich Edler von Mises 29 September 1881 |
Died | 10 October 1973 92) New York City, New York, U.S. | (aged
Spouse | Margit von Mises |
Relatives |
|
Institution |
|
Field | Economics, political economy, philosophy of science, epistemology, methodology, rationalism, logic, classical liberalism, right-libertarianism |
School or tradition | Austrian School |
Alma mater | University of Vienna |
Doctoral advisor | Eugen von Böhm-Bawerk |
Doctoral students | |
Other notable students | |
Influences | |
Contributions | |
Signature | |
![]() |
Ludwig Heinrich Edler von Mises [1] (German: [ˈluːtvɪç fɔn ˈmiːzəs] ; 29 September 1881 – 10 October 1973) was an Austrian School economist, historian, logician, and sociologist. Mises wrote and lectured extensively on the societal contributions of classical liberalism. He is best known for his work on praxeology studies comparing communism and capitalism. He is considered one of the most influential economic and political thinkers of the 20th century. [2]
Mises emigrated from Austria to the United States in 1940. [3] Since the mid-20th century, libertarian movements have been strongly influenced by Mises's writings. Mises' student Friedrich Hayek viewed Mises as one of the major figures in the revival of classical liberalism in the post-war era. Hayek's work "The Transmission of the Ideals of Freedom" (1951) pays high tribute to the influence of Mises in the 20th century libertarian movement. [4]
Mises's Private Seminar was a leading group of economists. [5] Many of its alumni, including Friedrich Hayek and Oskar Morgenstern, emigrated from Austria to the United States and Great Britain. Mises has been described as having approximately seventy close students in Austria. [6]
Part of a series on the |
Austrian School |
---|
![]() |
![]() |
Part of the Politics series on |
Neoliberalism |
---|
![]() |
Ludwig von Mises was born to Jewish parents in the city of Lemberg, Galicia, Austria-Hungary. The family of his father, Arthur Edler von Mises, had been elevated to the Austrian nobility in the 19th century (Edler indicates a noble landless family), and they had been involved in financing and constructing railroads. His mother Adele (née Landau) was a niece of Joachim Landau, a Liberal Party deputy to the Austrian Parliament. [7] : 3–9 Arthur von Mises was stationed in Lemberg as a construction engineer with the Czernowitz railway company.
By the age of 12, Mises spoke fluent German, Russian, Polish and French, read Latin and could understand Ukrainian. [8] Mises had a younger brother, Richard von Mises, who became a mathematician and a member of the Vienna Circle, and a probability theorist. [9] When Ludwig and Richard were still children, their family moved back to Vienna.[ citation needed ]
In 1900, Mises attended the University of Vienna, [10] becoming influenced by the works of Carl Menger. Mises's father died in 1903. Three years later, Mises was awarded his doctorate from the school of law in 1906. [11]
In the years from 1904 to 1914, Mises attended lectures given by Austrian economist Eugen von Böhm-Bawerk. [12] He graduated in February 1906 (Juris Doctor) and started a career as a civil servant in Austria's financial administration.
After a few months, he left to take a trainee position in a Vienna law firm. During that time, Mises began lecturing on economics and in early 1909 joined the Austrian Chamber of Commerce and Industry, serving as economic adviser to the Austrian government until he left Austria in 1934. [13] During World War I, Mises served as a front officer in the Austro-Hungarian artillery and as an economic adviser to the War Department. [14]
Mises was chief economist for the Austrian Chamber of Commerce and was an economic adviser of Engelbert Dollfuss, the austrofascist Austrian Chancellor. [15] Later, Mises was economic adviser to Otto von Habsburg, the Christian democratic politician and claimant to the throne of Austria (which had been legally abolished in 1918 following the Great War). [16] In 1934, Mises left Austria for Geneva, Switzerland, where he was a professor at the Graduate Institute of International Studies until 1940.
While in Switzerland, Mises married Margit Herzfeld Serény, a former actress and widow of Ferdinand Serény. She was the mother of Gitta Sereny.
External video | |
---|---|
![]() |
In 1940, Mises and his wife fled the German advance in Europe and emigrated to New York City in the United States. [7] : xi He had come to the United States under a grant by the Rockefeller Foundation. Like many other classical liberal scholars who fled to the United States, he received support from the William Volker Fund to obtain a position in American universities. [17] Mises became a visiting professor at New York University and held this position from 1945 until his retirement in 1969, though he was not salaried by the university. [11] Businessman and libertarian commentator Lawrence Fertig, a member of the New York University Board of Trustees, funded Mises and his work. [18] [19]
For part of this period, Mises studied currency issues for the Pan-Europa movement, which was led by Richard von Coudenhove-Kalergi, a fellow New York University faculty member and Austrian exile. [20] In 1947, Mises became one of the founding members of the Mont Pelerin Society.
In 1962, Mises received the Austrian Decoration for Science and Art for political economy [21] at the Austrian Embassy in Washington, D.C. [7] : 1034
Mises retired from teaching at the age of 87 [22] and died at the age of 92 in New York. He is buried at Ferncliff Cemetery in Hartsdale, New York. Grove City College houses the 20,000-page archive of Mises papers and unpublished works. [23] The personal library of Mises was given to Hillsdale College as bequeathed in his will. [24] [25]
At one time, Mises praised the work of writer Ayn Rand, and she generally looked on his work with favor, but the two had a volatile relationship, with strong disagreements for example over the moral basis of capitalism. [26]
This section needs additional citations for verification .(August 2013) |
Mises wrote and lectured extensively on behalf of classical liberalism. [27] In his magnum opus Human Action , Mises adopted praxeology as a general conceptual foundation of the social sciences and set forth his methodological approach to economics.
Mises was for economic non-interventionism [28] and was an anti-imperialist. [29] He referred to the Great War as such a watershed event in human history and wrote that "war has become more fearful and destructive than ever before because it is now waged with all the means of the highly developed technique that the free economy has created. Bourgeois civilization has built railroads and electric power plants, has invented explosives and airplanes, in order to create wealth. Imperialism has placed the tools of peace in the service of destruction. With modern means it would be easy to wipe out humanity at one blow." [30]
In 1920, Mises introduced in an article his Economic Calculation Problem as a critique of socialisms which are based on planned economies and renunciations of the price mechanism. [31] In his first article "Economic Calculation in the Socialist Commonwealth", Mises describes the nature of the price system under capitalism and describes how individual subjective values are translated into the objective information necessary for rational allocation of resources in society. [31] Mises argued that the pricing systems in socialist economies were necessarily deficient because, if a public entity owned all the means of production, no rational prices could be obtained for capital goods, as they were merely internal transfers of goods and not "objects of exchange", unlike final goods. Therefore, they were unpriced, and hence the system would be necessarily irrational, as the central planners would not know how to allocate the available resources efficiently. [31] He wrote that "rational economic activity is impossible in a socialist commonwealth". [31] Mises developed his critique of socialism more completely in his 1922 book Socialism: An Economic and Sociological Analysis , arguing that the market price system is an expression of praxeology and cannot be replicated by any form of bureaucracy.
Friends and students of Mises in Europe included Wilhelm Röpke and Alfred Müller-Armack (advisors to German chancellor Ludwig Erhard), Jacques Rueff (monetary advisor to Charles de Gaulle), Gottfried Haberler (later a professor at Harvard), Lionel, Lord Robbins (of the London School of Economics), Italian President Luigi Einaudi, and Leonid Hurwicz, recipient of the 2007 Nobel Memorial Prize in Economic Sciences. [32] Economist and political theorist Friedrich Hayek first came to know Mises while working as his subordinate at a government office dealing with Austria's post-World War I debt. While toasting Mises at a party in 1956, Hayek said: "I came to know him as one of the best educated and informed men I have ever known". [16] : 219–220 Mises's seminars in Vienna fostered lively discussion among established economists there. The meetings were also visited by other important economists who happened to be traveling through Vienna.
At his New York University seminar and at informal meetings at his apartment, Mises attracted college and high school students who had heard of his European reputation. They listened while he gave carefully prepared lectures from notes. [33] [34] Among those who attended his informal seminar over the course of two decades in New York were: Israel Kirzner, Hans Sennholz, Ralph Raico, Leonard Liggio, George Reisman, and Murray Rothbard. [35] Mises's work also influenced other Americans, including Benjamin Anderson, Leonard Read, Henry Hazlitt, Max Eastman, legal scholar Sylvester J. Petro and novelist Ayn Rand.
As a result of the economic works of Ludwig Von Mises, the Mises Institute was founded in 1982 by Lew Rockwell, Burton Blumert, and Murray Rothbard, following a split between the Cato Institute and Rothbard, who had been one of the founders of the Cato Institute.[ non-primary source needed ] It was funded by Ron Paul.
The Mises Institute offers thousands of free books written by Ludwig Von Mises, Murray Rothbard, Hans-Hermann Hoppe, and other prominent economists in e-book and audiobook format. [36] For those unfamiliar with the concepts of Austrian Economics, it has a section designed for beginners that summarizes the main concepts in thirty minutes. [37] The Mises Institute also offers a graduate school program.[ citation needed ]
Economic historian Bruce Caldwell wrote that in the mid-20th century, with the ascendance of positivism and Keynesianism, Mises came to be regarded by many as the "archetypal 'unscientific' economist". [38] In a 1957 review of his book The Anti-Capitalistic Mentality , The Economist said of Mises: "Professor von Mises has a splendid analytical mind and an admirable passion for liberty; but as a student of human nature he is worse than null and as a debater he is of Hyde Park standard". [39] Conservative commentator Whittaker Chambers published a similarly negative review of that book in the National Review, stating that Mises's thesis that anti-capitalist sentiment was rooted in "envy" epitomized "know-nothing conservatism" at its "know-nothingest". [40]
Scholar Scott Scheall called economist Terence Hutchison "the most persistent critic of Mises's apriorism", [41] : 233 starting in Hutchison's 1938 book The Significance and Basic Postulates of Economic Theory and in later publications such as his 1981 book The Politics and Philosophy of Economics: Marxians, Keynesians, and Austrians. [41] : 242 Scheall noted that Friedrich Hayek, later in his life (after Mises died), also expressed reservations about Mises's apriorism, such as in a 1978 interview where Hayek said that he "never could accept the ... almost eighteenth-century rationalism in his [Mises's] argument". [41] : 233–234
In a 1978 interview, Hayek said about Mises's book Socialism :
At first we all felt he was frightfully exaggerating and even offensive in tone. You see, he hurt all our deepest feelings, but gradually he won us around, although for a long time I had to – I just learned he was usually right in his conclusions, but I was not completely satisfied with his argument. [42]
Economist Milton Friedman considered Mises inflexible in his thinking, but added that Mises's difficult life and lack of acceptance by academia are the likely culprits:
The story I remember best happened at the initial Mont Pelerin meeting when he got up and said, "You're all a bunch of socialists." We were discussing the distribution of income, and whether you should have progressive income taxes. Some of the people there were expressing the view that there could be a justification for it. Another occasion which is equally telling: Fritz Machlup was a student of Mises's, one of his most faithful disciples. At one of the Mont Pelerin meetings, Machlup gave a talk in which I think he questioned the idea of a gold standard; he came out in favor of floating exchange rates. Mises was so mad he wouldn't speak to Machlup for three years. Some people had to come around and bring them together again. It's hard to understand; you can get some understanding of it by taking into account how people like Mises were persecuted in their lives. [43]
Economist Murray Rothbard, who studied under Mises, agreed he was uncompromising, but disputes reports of his abrasiveness. In his words, Mises was "unbelievably sweet, constantly finding research projects for students to do, unfailingly courteous, and never bitter" about the discrimination he received at the hands of the economic establishment of his time. [44]
After Mises died, his widow Margit quoted a passage that he had written about Benjamin Anderson. She said it best described Mises's own personality:
His most eminent qualities were his inflexible honesty, his unhesitating sincerity. He never yielded. He always freely enunciated what he considered to be true. If he had been prepared to suppress or only to soften his criticisms of popular, but irresponsible, policies, the most influential positions and offices would have been offered him. But he never compromised. [45]
Marxists Herbert Marcuse and Perry Anderson as well as German writer Claus-Dieter Krohn criticized Mises for writing approvingly of Italian fascism, especially for its suppression of leftist elements, in his 1927 book Liberalism . [46] In 2009, economist J. Bradford DeLong and sociologist Richard Seymour repeated the criticism. [47]
Mises, in his 1927 book Liberalism, wrote: [48]
It cannot be denied that Fascism and similar movements aiming at the establishment of dictatorships are full of the best intentions and that their intervention has, for the moment, saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history. But though its policy has brought salvation for the moment, it is not of the kind which could promise continued success. Fascism was an emergency makeshift. To view it as something more would be a fatal error.
Mises biographer Jörg Guido Hülsmann says that critics who suggest that Mises supported fascism are "absurd" as he notes that the full quote describes fascism as dangerous. He notes that Mises said it was a "fatal error" to think that it was more than an "emergency makeshift" against up and coming communism and socialism as exemplified by the Bolsheviks in Russia and the surging communists of Germany. [7] : 560 Hülsmann writes in Mises: The Last Knight of Liberalism that Mises had been a card-carrying member of the Fatherland Front party and that this was "probably mandatory for all employees of public and semi-public organizations." [49]
In regards to Nazism, Mises called on the Allies in his 1944 book Omnipotent Government to "smash Nazism" and to "fight desperately until the Nazi power is completely broken". [50]
Books
Book reviews
Anarcho-capitalism is an anti-statist, libertarian, and anti-political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enforced by private agencies, the non-aggression principle, free markets and the right-libertarian interpretation of self-ownership, which extends the concept to include control of private property as part of the self. In the absence of statute, anarcho-capitalists hold that society tends to contractually self-regulate and civilize through participation in the free market, which they describe as a voluntary society involving the voluntary exchange of services and goods. In a theoretical anarcho-capitalist society, the system of private property would still exist and be enforced by private defense agencies and/or insurance companies selected by customers, which would operate competitively in a market and fulfill the roles of courts and the police.
The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school theorists hold that economic theory should be exclusively derived from basic principles of human action.
Friedrich August von Hayek, often referred to by his initials F. A. Hayek, was an Austrian-British intellectual who made contributions to economics, political science, psychology, intellectual history, philosophy and other fields. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with Gunnar Myrdal for work on money and economic fluctuations, and the interdependence of economic, social and institutional phenomena. His account of how prices communicate information is widely regarded as an important contribution to economics that led to him receiving the prize.
Murray Newton Rothbard was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian movement and a founder and leading theoretician of anarcho-capitalism. He wrote over twenty books on political theory, history, economics, and other subjects.
Henry Stuart Hazlitt was an American journalist who wrote about business and economics for such publications as The Wall Street Journal, The Nation, The American Mercury, Newsweek, and The New York Times.
Hans-Hermann Hoppe is a German-American economist of the Austrian School, philosopher and political theorist. He is Professor Emeritus of Economics at the University of Nevada, Las Vegas (UNLV), Senior Fellow of the Ludwig von Mises Institute, and the founder and president of the Property and Freedom Society.
Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think tank headquartered in Auburn, Alabama, United States. It is named after the Austrian School economist Ludwig von Mises (1881–1973).
Wilhelm Röpke was a German economist and social critic, best known as one of the spiritual fathers of the social market economy. A Professor of Economics, first in Jena, then in Graz, Marburg, Istanbul, and finally Geneva, Switzerland, Röpke theorised and collaborated to organise the post-World War II economic re-awakening of the war-wrecked German economy, deploying a program sometimes referred to as the sociological neoliberalism.
The Foundation for Economic Education (FEE) is an American conservative, libertarian economic think tank. Founded in 1946 in New York City, FEE is now headquartered in Atlanta, Georgia. It is a member of the State Policy Network.
Richard M. Ebeling is an American libertarian author who was the president of the Foundation for Economic Education (FEE) from 2003 to 2008. Ebeling is currently the BB&T Distinguished Professor of Ethics and Free Enterprise Leadership at The Citadel in Charleston, South Carolina.
Ralph Raico was an American libertarian historian of European liberalism and a professor of history at Buffalo State College.
Jesús Huerta de Soto Ballester is a Spanish economist of the Austrian School. He is a professor in the Department of Applied Economics at King Juan Carlos University of Madrid, Spain and a Senior Fellow at the Mises Institute.
Right-libertarianism, also known as libertarian capitalism or right-wing libertarianism, is a libertarian political philosophy that supports capitalist property rights and defends market distribution of natural resources and private property. The term right-libertarianism is used to distinguish this class of views on the nature of property and capital from left-libertarianism, a type of libertarianism that combines self-ownership with an egalitarian approach to natural resources. In contrast to socialist libertarianism, right-libertarianism supports free-market capitalism. Like most forms of libertarianism, it supports civil liberties, especially natural law, negative rights, the non-aggression principle, and a major reversal of the modern welfare state.
The Center for Libertarian Studies (CLS) was a libertarian and anarcho-capitalist oriented educational organization founded in 1976 by Murray Rothbard and Burton Blumert, which grew out of the Libertarian Scholars Conferences. That year, the conference was sponsored by industrialist and libertarian Charles Koch. It published the Journal of Libertarian Studies from 1977 to 2000, a newsletter, several monographs, and sponsors conferences, seminars, and symposia.
Floyd Arthur "Baldy" Harper was an American academic, economist and writer who was best known for founding the Institute for Humane Studies in 1961.
David Gordon is an American libertarian philosopher and intellectual historian influenced by Rothbardian views of economics. Peter J. Boettke, in his Reason Foundation "Reason Papers," Issue No. 19, Fall 1994, describes Gordon as "a philosopher and intellectual historian who is deeply influenced by the Rothbardian strand of economics." He is a senior fellow at the Ludwig von Mises Institute and editor of The Mises Review.
Ronald Hamowy was a Canadian academic, known primarily for his contributions to political and social academic fields. At the time of his death, he was professor emeritus of Intellectual History at the University of Alberta in Edmonton, Canada. Hamowy was closely associated with the political ideology of libertarianism and his writings and scholarship place particular emphasis on individual liberty and the limits of state action in a free society. He is associated with a number of prominent American libertarian organizations.
Norman Patrick Barry was an English political philosopher best known as an exponent of classical liberalism. For much of his career he was a professor of social and political theory at the University of Buckingham.
Jörg Guido Hülsmann is a German-born economist who studies issues related to money, banking, monetary policy, macroeconomics, and financial markets. Hülsmann is professor of economics at the University of Angers’ School of Law, Economics, and Management.
Miguel Anxo BastosBoubeta is a Spanish economist of the Austrian School. He is a professor in the Faculty of Political Science and Administration at the University of Santiago de Compostela.
The hero in this book is Ludwig von Mises..