“The issue is always the same: government or the market. There is no third way.”
Ludwig von Mises 140th Birthday – Part I
Greatest Social Thinker of the 20th Century
By: George Noga – September 26, 2021
This month marks the 140th birthday of Austrian economist Ludwig von Mises who died in 1973 at age 92. Von Mises was not only the best economist, but also the greatest social thinker, of the 20th century. We honor his birthday by presenting a small sample of his work in two posts. We have lightly edited for length and modernity.
Choosing between capitalism and socialism: “A man who chooses between drinking a glass of milk or a glass of cyanide does not choose between two beverages; he chooses between life and death. A society that chooses between capitalism and socialism does not choose between two social systems; it chooses between social cooperation and the disintegration of society. Socialism is not an alternative to capitalism.”
On human action: “All rational action is in the first place individual action. Only the individual thinks. Only the individual reasons. Only the individual acts.”
Sovereign consumer: “The common man is the sovereign consumer whose buying, or abstention from buying, determines the quality and quantity of what is produced, and who in earlier ages were serfs, slaves and paupers. They are the customers for whose favor businesses compete and who always are right. Wealth is only acquired by serving customers in a daily plebiscite in which every penny confers the right to vote.”
Totalitarianism: “You can’t fight totalitarianism by adopting totalitarian methods. Freedom can only be won by men committed to the principles of freedom. The first requisite for a better social order is unrestricted freedom of thought and speech.”
“Tyranny is the political corollary of socialism just as representative government is the political corollary of a market economy.”
Anti-capitalist mentality: “Capitalism raises living standards to unprecedented levels. A nation is more prosperous the fewer obstacles it puts in the way of of free enterprise. The bias and bigotry of public opinion manifests itself by attaching the epithet ‘capitalist’ exclusively to things abominable, but never to those of which all approve.”
Responsibility for society: “Everyone caries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping toward destruction. Therefore, everyone, in his own interests, must thrust himself vigorously into the intellectual battle.”
Liquor versus bibles: “It is not the fault of entrepreneurs if consumers prefer liquor to bibles and if governments prefer guns to butter. The entrepreneur does not make greater profits selling bad things versus good things. His profits are the greater the better he succeeds in providing consumers those things they ask for most intensely'”
Ludwig von Mises sampler of pithy quotes: “Every government intervention creates unintended consequences which lead to further interventions. . . . . . He who is unfit to serve his fellow citizens wants to rule them. . . . . . . Freedom is indivisible. As soon as one starts to restrict it, one enters upon a decline which it is difficult to stop. . . . . . The average man is both better informed and less corruptible in the decisions he makes as a consumer than as a voter. . . . . . Every socialist is a disguised dictator. . . . . . Worship of the state is the worship of force. . . . . . Every step which leads from capitalism toward planning is necessarily a step nearer to absolutism and dictatorship.”
Next week is the second part of our homage to Ludwig von Mises.
