General

Re: Don't Get it?

Lewis S. — Tue, 15 Jun 2010 16:00:19 GMT

ABCT was difficult for me, particularly how monetary policy and interest rate adjustment affect the structure of production. While I understood it fairly well, I worked a little harder at it so that I could teach its basic fundamentals to my high school economics class, which I began doing towards the end of my teaching career. Ironically, attempting to do that vastly increases your understanding, because students will come up with questions that you sometimes take for granted.

Re: Don't Get it?

I. Ryan — Tue, 15 Jun 2010 15:51:31 GMT

Angurse:

Social cooperation.

Which is human action.

Re: Don't Get it?

Angurse — Tue, 15 Jun 2010 05:32:24 GMT

chloe732:
I thought, Human Action? Why did Mises name his treatise on economics Human Action? Why didn't he call it "Economics"? Now, it is perfectly clear. Human action is the essence of economics. What else could economics be?

Social cooperation. (The original title of the book)

Re: Don't Get it?

DD5 — Tue, 15 Jun 2010 04:41:03 GMT

Shawn77:

They contend that 100% reserves which is the Rothbard position would hinder capital accumulation and economic growth.

That the above is totally fallacious is actually one of the most assertive and consistent economic stance of Mises. It's almost intellectual fraud to somehow portray this as being some Rothbard unique position or twist.

Re: Don't Get it?

DD5 — Tue, 15 Jun 2010 04:27:24 GMT

justinxOr:

Fractional reserve banking for sure. After I read Selgin's and White's work on FRB it completely changed my opinion and now I reject the Rothbardian position.

That's because Selgin and White strawman Rothbard, and also conveniently ignore the most damning parts of capital theory that make their Monetary Equilibrium theory false.

Re: Don't Get it?

chloe732 — Tue, 15 Jun 2010 04:08:14 GMT

Naevius - nice post. Each of your #'s 1 through 4 were also breakthroughs in my own thinking. I didn't "struggle" with those things (the topic of the thread), but I will say that the phrase "Human Action" had me scratching my head for quite awhile.

I thought, Human Action? Why did Mises name his treatise on economics Human Action? Why didn't he call it "Economics"? Now, it is perfectly clear. Human action is the essence of economics. What else could economics be?

Re: Don't Get it?

Naevius — Tue, 15 Jun 2010 01:17:24 GMT

1. Why and how Full-reserve banking works and why a state wouldn't need to impose it on high (and instead simply let free markets and the recognition of Fractional reserve banking as theft work it out). This is the first thing I tackled in Austrian economics (and part of the reason I got into Austrian economics) and my development was stalled for months on this one issue. The issue was really finally settled with me when I asked Mark Thornton about it when he was speaking at my college (Auburn University).

2. Methodological individualism. I still have to watch myself so I don't say "Society does blank/needs blank." or stuff like that. It was a big leap in my ability to debate big government types when I finally managed to grasp the fact that only individuals can act and there can be no "public goods" because in order for the men and women of the government to even realize there was a need for such goods, there had to be individuals demanding it--and therefore, the market can take care of it without forcing it on those who don't want it.

3. The relevance of praxeology to economics. When I first started reading Human Action I kept thinking "Come on, Mises...can you get to the economics already?" not realizing that he had been talking about economics since page 1. I've yet to restart reading it--I stopped and detoured to more basic texts like Economics in One Lesson--but I will soon now that I realize why praxeology is important.

4. And, most importantly, realizing that the logical conclusion of my ideals and beliefs led to anarcho-capitalism. I had actually come up with a philosophy remarkably similar to anarcho-capitalism all on my own (mainly because I advocated unlimited secession if someone wanted to, who could then form their own states or live without one). I just stopped short of bona-fide Rothbardian anarcho-capitalism because I didn't realize the predatory nature of the state. As I mentioned before, the logical conclusion of my beliefs dragged me kicking and screaming to ancap. When I first took my tour of the Ludwig Von Mises Institute in Auburn and the guide described Rothbard, I thought he was a kook. Now I know he's a genius and I was the fool.

Re: Don't Get it?

Jackson LaRose — Mon, 14 Jun 2010 18:12:47 GMT

viresh armin:
what was the hardest concept to get?

Why an absolute concept of rights is of the upmost necessity for a functional ancap society.

Re: Don't Get it?

viresh amin — Mon, 14 Jun 2010 17:24:52 GMT

Robert Murphy just wrote about this: http://mises.org/daily/4499

Re: Don't Get it?

Shawn77 — Sun, 13 Jun 2010 22:32:29 GMT

Banks would print their own notes that would act as gold substitutes.

Re: Don't Get it?

viresh amin — Sun, 13 Jun 2010 22:23:51 GMT

How would that work if gold is used as money?

Re: Don't Get it?

Shawn77 — Sun, 13 Jun 2010 22:21:22 GMT

viresh amin:
Whats the difference between them and Rothbard?

They favor whats called "free" banking or fractional reserve banking. Allowing individual banks to expand the currency rather than a central bank. They believe through the entrepreneurial process and profit/loss it will achieve "monetary equilibrium". They contend that 100% reserves which is the Rothbard position would hinder capital accumulation and economic growth. There is an FRB topic on here some where.

Re: Don't Get it?

viresh amin — Sun, 13 Jun 2010 17:20:48 GMT

Can you link me to the Selgin and White books/articles? Whats the difference between them and Rothbard?

Re: Don't Get it?

justinx0r — Sun, 13 Jun 2010 17:18:44 GMT

Fractional reserve banking for sure. After I read Selgin's and White's work on FRB it completely changed my opinion and now I reject the Rothbardian position.

Re: Don't Get it?

scineram — Sun, 13 Jun 2010 16:51:30 GMT

It took me a lot of time to understand the nature of fractional reserve contracts . For some reason I was spinning around yelling fraud for quite a while before I finally got it.