Comments (8)

• Kenneth R. Gregg

  Just wanted to add that this fine essay is available in Mises' collection, "Planning for Freedom", which had been unavailable for many years, but now available again (see the bookstore).
  Best to you,
  Just Ken
  kgregglv@cox.net
  http://classicalliberalism.blogspot.com

  Published: March 3, 2007 11:37 PM

• Joseph C Russo

  The cost of electricity in the city of Chicago has been very recently unregulated. The cost immediately rose 25 - 30%. I remember when natural gas was deregulated.

  When a consumer item is released for free marked trade the company should be limited as to how much the price may be raised if anyone in the company makes more than $25,000.00 PER HOUR.
  

  Published: March 4, 2007 9:44 AM

• Michael A. Clem

  Just the cost was de-regulated, Joseph? So you still don't have a choice of electricity-providers? See, that's what gets me--abuse of the term "deregulation". Strikes me as attempts by anti-capitalists to once again blacken the eye of "free markets" with lies and misrepresentations.

  Published: March 4, 2007 10:33 AM

• Yancey Ward

  A truly wonderful essay! What amazes me is that such understanding isn't widespread. It is so simple to understand how increases in wealth arise. So why do average people not understand this?

  Published: March 4, 2007 11:53 AM

• David White

  Yancey,

  As Pascal said, "Ordinary people have the ability not to think about things they do not want to think about." Indeed, that's what makes them ordinary -- i.e., average -- as they don't want to feed themselves where knowledge is concerned but want to be fed instead.

  And you-know-what is only too happy to oblige.

  Published: March 4, 2007 12:46 PM

• Dennis

  Yancey,

  Yes, the logic of Mises’s arguments is clear and compelling.

  In response to your query, I would also argue that most people are unfortunately influenced by jealousy and envy. In addition, most people do not want to take responsibility for their own actions and choices if they do not produced the expected results. And most individuals would love to obtain something for nothing by forcing others to pay for what they believe they are entitled to.

  For the large numbers of individuals who permit these negative traits to animate their lives, the market economy and those who apparently profit most under this economic framework are the scapegoats, if not the enemy.

  Published: March 4, 2007 3:38 PM

• RogerM

  Wow! He could have given this speech today!

  The issue of capital accumulation is relevant to the many discussions we've had on this site about the trade deficit. The capital that foreigners are saving and investing in the US as a result of our trade deficit with them increases our stock of capital and makes us richer, as Mises wrote. The only difference between using the savings of foreigners instead of those of Americans is that we can share the growth in wealth with the foreigners.

  As Mises pointed out, poor countries don't accumulate capital because the policies of their governments empower those governments to steal what people invest. This explains why foreigners are so willing to invest in the US. For example, Africans invest $90 billion each year in the West instead of Africa because of this. Mises recognized in 1952 that the US was, essentially, the last capitalist nation on earth. As more and more nations make it clear to the world's savers/investors that they will confiscate any money invested in their countries, the world's savers have few choices beyond the US in which to place their money for safe keeping.

  Published: March 5, 2007 11:03 AM

• Rick M.

  Fifty-five years later, the ideas expressed by Mises in this 1952 speech are extremely relevant. It seems that capital decumulation has not only set in but is accelerating. As Mises feared, it appears the USA will indeed suffer the fate of England and France.

  I've only seen one person on CNBC come close to articulating this particular message of Mises, Peter Schiff.
  

  Published: July 15, 2007 7:02 PM