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A Critique of Interventionism

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If you want to learn about an economic philosophy that refutes the "Keynesian command economy" then you need to study the "Austrian School" of economic theory. This anthology by Bettina Ben Greaves is a good starting point to learn about the "Austrian" school. The "Austrian " economic school turned the study of economics on its head when it traced market prices to the actions of individual buyers instead of producers. Carl Menger, the founder of this school wrote the breakthrough theory the "classical economists" like Adam Smith missed. "Market price doesn't rely on usefulness, value or supply but on the usefulness the individual expects to derive from the item or the service at a particular time or place, this theory is known as marginal utility". Ludwig von Mises took the school further he rejected the traditional study of economics by looking at historical models and adopted the technique of studying "human action" and social science to come up with a universal economic science. As a free market economists the "Austrians" expertly explain how the system of profit and loss works in a free economy and how wages rise due to an increase in capital invested per worker, which causes an increase in the productivity of labor. "The only means to increase a nations welfare is to increase and improve the output of its products." This book should be read by all whom wonder how economic theory works and what role the government should have on our economic choices.

As a retired Army officer and student of political philosophy, I found "Austrian Economics An Anthology" a great book for anyone who wants to understand basic "Austrian" economic theory. For further reading in free market economics I recommend Von Mises, "HUMAN ACTION" and "PLANNING FOR FREEDOM". F. A. Hayek's, "Road To Serfdom and Milton Friedman's "Free To Choose"

Mises' book is a focus on two extremely important subject matters. There can only be socialism or capitalism, no mix of the both. The second point is that when the government intervenes, it usually gets screwed up. Mises' theories are well demonstrated in today's world and this book does a great job of dwelling on the subjects. Austrian economics tell us a lot about the world we live in today and anyone with interest in politics or economics will enjoy this book.

Mises wrote his Critique of Interventionism to counter the ideology that underlied intervention in Europe during the 1920's. As such, some of the details of this book are of historical interest only. Intervention wrought havoc in Interwar European economies, and this dislocation served as an excuse for further government control.

However, the general principles behind Mises' critique are timeless, and actually quite relevant today. Now that we find ourselves in a situation where intervention has resulted in crisis, the need to debunk the ideologies behind recent intervention is great. This book is a great resource for thoughtful analysis of interventionism. Read it and learn.

A good book for the person who is interested in learning about the Austrian Theory of Economics. It will show how Keynes' theory is flawed and that an active government in a country's trade cycle will do more harm than good.