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Dynamics of the Mixed Economy: Toward a Theory of Interventionism (Routledge Foundations of the Market Economy) Hardcover – December 26, 1996

ISBN-13: 978-0415089333 ISBN-10: 0415089336 Edition: 0th

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Product Details

  • Series: Routledge Foundations of the Market Economy
  • Hardcover: 310 pages
  • Publisher: Routledge (December 26, 1996)
  • Language: English
  • ISBN-10: 0415089336
  • ISBN-13: 978-0415089333
  • Product Dimensions: 1 x 6 x 9 inches
  • Shipping Weight: 1.1 pounds (View shipping rates and policies)
  • Average Customer Review: 3.5 out of 5 stars  See all reviews (4 customer reviews)
  • Amazon Best Sellers Rank: #4,187,993 in Books (See Top 100 in Books)

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13 of 13 people found the following review helpful By alockard@gmu.edu on April 3, 1999
Format: Hardcover
The mixed economy that Ikeda writes of is the so called "third way" between laissez faire capitalism and socialism, also known as interventionism. Virtually all developed economies, including that of the United States fall into this category. Ikeda's work is within the Austrian tradition, which has held (following Ludwig von Mises) that mixed economies are unstable and internally contradictory. They must either cast off their regulatory shackles and return to a state of laissez faire, or complete the descent into totalitarian socialism. Ikeda develops the theory that each regulation, designed to address some mis-perceived occurrence of market failure, actually introduces new inefficencies into the market place. Regulatory intervention begets more intervention, the results of which are inevitably inferior (even in the view of the responsible policy makers) to the original situation. In this manner, Ikeda proposes that the bias of the mixed economy towards increasing socialism is the result of the law of unintended consequences, rather than, for instance, a rent-seeking dynamic.
Ikeda applies his analysis to the minimal state. He defines the minimal state as the smallest, least intrusive state possible consistent with providing enough order and infrastructure to permit free markets to exist. It provides enough of a defense, police and legal system to protect private property, and only those public goods that are inherently impossible for free markets to provide. Ikeda finds the minimal state unstable. Given citizens's heterogeneous preferences for the services the state provides, it is not possible that each citizen's benefit from the existence of the state will perfectly match the cost they incur in taxes.
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1 of 1 people found the following review helpful By Ronald J. Legere on December 21, 2008
Format: Hardcover Verified Purchase
Ludwig Von Mises said, in Human Action:
"The interventionist interlude must come to an end because interventionism cannot lead to a permanent system of social organization."

Mises went on to explain why, and expected in the end for all mixed economies to end as pure socialism or return to a free (unhampered) market economy. The observed fact that we see instead mixed economies everywhere is called the "Miseian paradox" by the author of this text. This text, after supporting Mises and the Austrian school's critique of mixed economies, proceeds to explain the dynamics of such economies, and how instead of necessarily ending up at one extreme or another, real economies can be expected go through a series of crises (much as we are seeing now) that cause a continuous cycling between collectivism and free markets. This is a kind of dynamic stability.
The text is interesting and illuminating. It does tend to drag on at times, but those parts that drag on for me may be fascinating for others. It doesn't offer any real hope for the world, except that if there was an exogenous shift in ideology toward free markets, we might then be able to maintain stability in the minimal state. Otherwise, we are stuck with what we got. Sad, but the arguments ring true.
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1 of 1 people found the following review helpful By Bam Bam on December 26, 2012
Format: Hardcover
After reading a chunk, I find this book right up my alley- it addresses and expands upon work that Mises started. I'm a big fan of Austrian Economics, but like every economic philosophy it has its shortcomings, and the author here makes a good run at addressing some of them. Unfortunately, this ebook is priced at parent-subsidized university prices, so most laypeople won't be able to read it. However, publishers haven't seemed to learn yet that pricing an ebook in this fashion will just encourage people to seek the book by other means.

Some books that cost an arm and a leg in the States can be found for free on foreign websites, by merely googling the book title. 'Tis very odd indeed.
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0 of 2 people found the following review helpful By T. Miller on November 16, 2010
Format: Kindle Edition
It would be good for the publisher to understand that putting an outrageously high price on an electronic book that the demand will be low.

Sorry about the low rating...
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Dynamics of the Mixed Economy: Toward a Theory of Interventionism (Routledge Foundations of the Market Economy)
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