Modern economics tends to reduce economic activity to formulae and equations. This is not the true subject matter of economics. Economic activities deal with human actions that are not predicable and thus cannot be reduced to the equations of an exact science. As economic historian Odd Langholm states: “The subject matter of economics is properly … Read more
When people ask me what is wrong with our modern day economy, I respond that it is frenzied and out of balance. In my book, Return to Order, I coined the term “frenetic intemperance” to describe a restless and reckless spirit inside modern economy that foments a drive to throw off legitimate restraints and gratify … Read more
We must resist the temptation of simply writing off the present system with all its problems. We must avoid the defeatist attitude of those who advocate isolating themselves from society and awaiting better days. In individualist fashion, they would take care of their own little worlds and disregard the cause of the common good. Nothing … Read more
There are those who try to ascribe to economics an exactitude that is only found in the exact or physical sciences. Such an effort is doomed to failure since it is based on human action which is so fickle and unpredictable. Economic scholar Harry Veryser notes that, “Aristotle pointed out the fatal flaw in trying … Read more
The debate over what’s really wrong with our economy seems irreconcilably divided into two camps. On one side you have those who claim everything will be all right if we could just get big government out of our economy. On the other side, the Paul Krugmans of the world are shouting all the louder: get … Read more
I received a very interesting e-mail from a gentleman who has bought the book, Return to Order, and raised a number of very intriguing questions and comments. His concern is that the book misdiagnoses our modern problem by not going straight to the root of the problem – capitalism. To get results, he claims, one … Read more
Imagine a never-ending cruise. The bands are playing, the theaters are full, and the restaurants are crowded. Along with every modern comfort there’s fun, laughter, games and gadgets. The party always has one more joke, or one more dance to keep it going. Passengers think of the cruise as an entitlement, not a vacation. What … Read more
Token money is an unbacked currency that exceeds the value of the material of which it is made. Such money is often minted to facilitate small transactions and is usually found in coinage. A surprising description of token coinage can be found in the writings of Ludwig von Mises, who comments on the issuing of … Read more
When I think of the debate around the “sequester,” I think of an amusement park. I know that this is no laughing matter, but there’s something so incredibly unreal about the situation that an amusement park is what comes into mind. This comes from observing how things like quantitative easing, derivative instruments and massive debt … Read more
In a society where money rules the criteria to judge products often revolves around quantity and costs. The number of units matters much more than the quality of product. Mass production means much more than craftsmanship. Historian Carlo Cipolla finds such criteria to be deficient. He notes: “But if one states simply that the average … Read more
