About This Blog

Ludwig von Mises (1881-1973) was the greatest economist of my time. His greatest works can be accessed here at no charge.

Mises believed that property, freedom and peace are and should be the hallmarks of a satisfying and prosperous society. I agree. Mises proved beyond a shadow of a doubt that the prospect for general and individual prosperity is maximized, indeed, is only possible, if the principle of private property reigns supreme. What's yours is yours. What's mine is mine. When the line between yours and mine is smudged, the door to conflict opens. Without freedom (individual liberty of action) the principle of private property is neutered and the free market, which is the child of property and freedom and the mother of prosperity and satisfaction, cannot exist. Peace is the goal of a prosperous and satisfying society of free individuals, not peace which is purchased by submission to the enemies of property and freedom, but peace which results from the unyielding defense of these principles against all who challenge them.

In this blog I measure American society against the metrics of property, freedom and peace.

Saturday, June 6, 2015

Mother Of All Questions

Scientists agree that the mechanical, mathematical world of Newtonian physics no longer exactly reflects reality. Now there is a new world of quantum physics which recognizes a certain fuzziness in nature which must be accounted for in our calculations. Scientists allow the validity of the Heisenberg uncertainty principle which recognizes that the more we can know about one variable, the less we can know about another.

And this thinking holds in Physics! A science which must assume that there is a regularity in the concatenation of natural events which allows us to exactly predict future natural events.

I think, in the realm of human economics, Keynesianism is analogous to Newtonian physics. It regards human nature and human relationships as mechanical behavior. It considers human beings and human society as machinery that can be exactly observed, predicted and manipulated with mathematical precision. It believes all economics is macroeconomics.

Austrian economics, on the other hand, is analogous to quantum physics. It allows a certain fuzziness in human beings and in the realm of human relationships. It regards human society as the product of purposeful, individual action. It understands that individuals are prone to act differently in similar situations because they each seek subjective ends that are inconstant and personal. It understands that manipulation of variables in society by a central authority can have no exactly predictable result in society because each individual in society acts upon and values each variable differently. It believes all economics is microeconomics.

The interesting question is this: If the scientifically minded person is willing to accept the uncertainty principle in the realm of physics, which studies the interplay of unthinking, purposeless, inanimate objects, why does he refuse to accept the uncertainty principle in the realm of economics, which studies the interplay of thinking, purposeful, human individuals?