September 29, 2002

121 years ago, a man

121 years ago, a man was born who would turn out to be one of the most important social thinkers of the 20th Century. In 1881, Ludwig von Mises was born in Austria, went to college in Vienna, taught there as well as in Switzerland and the United States. His contributions to classical liberal thought stems from his devastating critique of socialism, his comprehensive exposition of economics, and his students who advanced Austrian economics into a refreshing challenge to orthodox economics.

Mises' most important book is Human Action. From a few basic premises about the way Man acts, Mises built a comprehensive intellectual edifice. It's magnificent in its logic and broad scope.

Mises' second most important work is Socialism. This is his argument against a socialist economy. Mises contends that since a socialist economy doesn't have market prices, such an economy will not be able to function as well as a capitalist economy. Prices contain valuable information that tell buyers and sellers what goods and services are relatively abundant or scarce. By not letting prices freely fluctuate, socialist economies do not allow information to move efficiently. (See this page on the Socialist Calculation Debate.)

In 1956, Mises' most famous student, Nobel Prize-winner, F. A. Hayek had these kind words to say about his teacher:

Professor Mises! It would be an impertinence to enlarge further on your learning and scholarship, on your wisdom and penetration, which has given you world renown. But you have shown other qualities which not all great thinkers possess. You have shown an undaunted courage, even when you stood alone. You have shown a relentless consistency and persistence in your thought, even when it led to unpopularity and isolation. You have for long not found the recognition from the official organization of science which was your due. You have seen your pupils reap some of the rewards which were due to you but which envy and prejudice have long withheld. But you have been more fortunate than most other sponsors of unpopular causes. You knew before today that the ideas for which you had so long fought alone or with little support would be victorious. You have seen an ever-growing group of pupils and admirers gather round you and, while you continue to push further, endeavor to follow up and elaborate your ideas. The torch which you have lighted has become the guide of a new movement for freedom which is gathering strength every day.

To become familiar with Mises' economics, Peter Boettke wrote a paper. In it, Boettke writes, "Mises developed a bold and enduring humanistic project for the study of man that invites our critical attention."