Austrian Political Economy

As governments around the world advance on the road to serfdom by placing their citizens under intermittent house arrest and infringing upon private property rights and personal liberties to an unprecedented degree in peacetime, it is of profound importance that we have a coherent theory of legal validity. Natural law theory provides such a theory. …

In Defence of Natural Law Read More »

I-   T H E   R U L I N G   C L A S S The citizenry of every political society can be divided into two classes: the rulers and the ruled. Moreover, the ruling class is always a numerical minority as compared to the ruled class. This is not merely an …

Elite Theory And The Theory of Democracy Read More »

The great German sociologist Franz Oppenheimer (1864-1943) wrote in his masterpiece “The State” that there exists only two principal ways of acquiring wealth. The first way is to engage in production and to exchange that good for the product of another producer in a mutually beneficial trade. This is the way of production and exchange: …

The Economic Means Versus The Political Means Read More »

One of, if not the most fundamental difference between the Austrian school and the mainstream neoclassical school is the difference of opinion with regard to the essential epistemological character of economic propositions. The Austrian position is that economic propositions constitute a priori knowledge; that is, knowledge derived, not from observational experience, but from a true …

The Epistemological Foundation of Economic Science Read More »

My first article for the Mallard, Ludwig von Mises, Libertarianism, and Traditionalism, is now available online. In the article, I expound my thesis that Ludwig von Mises held views on cultural issues that would characterise his social thought as typical of traditionalist conservatism.  Read it here:https://mallarduk.com/ludwig-von-mises/

Money is the economy’s medium of exchange. The great utility of its employment is that it obviates the requirement for a coincidence of wants among the parties to a trade, and it permits the employers of scarce resources–the entrepreneur-producers–to engage in economic calculation and thereby achieve an efficient allocation of resources.  In all modern economies, …

The Uses of Money Read More »

Over a century ago, in 1920, Ludwig von Mises wrote what is undoubtedly the most important essay in the history of the field of economic science, namely: Economic Calculation in The Socialist Commonwealth. In that essay, Mises utterly destroyed the intellectual foundation of the theory of socialism. Mises definitively demonstrated that socialism is impossible in …

On The Impossibility of Socialism Read More »

  A market price is the exchange ratio between an economic good (or service) and the medium of exchange, viz. money. While the conventional exposition of how supply and demand curves intersect to yield a stable equilibrium market price in order to clear the market is valid, it is necessary to examine the diagram of …

How Prices Are Determined Read More »

In this article, I want to do several things. First, I want to explain what capital goods are and how they enhance the productivity of labour. Secondly, I want to explain the principle of time preference and its role in the determination of market interest rates. And lastly, I want to explain how a general …

Capital and Interest: An Introduction to Austrian Capital Theory Read More »

  Nearly everyone appreciates how vitally indispensable money as a common medium of exchange is for society. It allows for an extensive division of labour and large-scale production and is a necessary prerequisite for economic calculation. In short, money and civilization are inextricably linked. It is impossible to have civilization without money.  But how is …

The Origin of Money Read More »