Welfare in the Austrian Marketplace: Bridging Austrian and Market Socialist Economics

  • Guinevere Liberty Nell
Part of the Exploring the Basic Income Guarantee book series (BIG)

Abstract

Austrian economics is nearly synonymous with “free market” economics and politics—libertarianism—to almost anyone familiar with the label. It also defines the methodology of Menger, Mises, Hayek, and others; but an admiration for markets and criticism of government is almost universally expected of adherents. Of course, this was not always the case. As Hayek told Axel Leijonhufvud during his famous 1979 series of interviews conducted by other economists, “The meaning of the term has changed. At that time, we would use the term Austrian school quite irrespective of the political consequences which grew from it. It was the marginal utility analysis which to us was the Austrian school.”1

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abell, Peter. 1989. “An Equitarian Market socialism,” in Julian Le Grand and Saul Estrin (eds.), Market Socialism. Oxford: Clarendon Press.Google Scholar
  2. Barbera, A. and M. Jackson. 1988. “Maximin, Leximin, and the Protective Criterion: Characterizations and Comparisons,” Journal of Economic Theory 46: 34–44.CrossRefGoogle Scholar
  3. Bardhan, Pranab, K. and John E. Roemer. 1993. Market Socialism: The Current Debate. New York: Oxford University Press.Google Scholar
  4. Bay, Christian. 1971. “Hayek’s Liberalism: The Constitution of Perpetual Privilege,” Political Science Review 1: 93–124.Google Scholar
  5. Beck, John H. “Libertarianism and Land Value Taxation.” Accessed January 31, 2013. Available at: http://www.freestateproject.org/about/essay_archive/lvtaxation.php.
  6. Berliner, Joseph. 1993. “Innovation, the Soviet Union, and Market Socialism,” in Bardhan, Pranab, K. and John E. Roemer (eds.), Market Socialism: The Current Debate. New York: Oxford University Press.Google Scholar
  7. Birnbaum, Simon. 2012. Basic Income Reconsidered: Social Justice, Liberalism, and the Demands of Equality. New York: Palgrave.CrossRefGoogle Scholar
  8. Boettke, Peter J. 1990. “Individuals and Institutions,” Critical Review 4(1–2): 10–26.CrossRefGoogle Scholar
  9. —. 1998. “Economic Calculation: The Austrian Contribution to Political Economy,” Advances in Austrian Economics 5: 131–58.Google Scholar
  10. Boettke, Peter J. and Edward J. López. 2002. “Austrian Economics and Public Choice,” The Review of Austrian Economics 15 (2–3): 111–19.CrossRefGoogle Scholar
  11. Buchanan, James M. 1982. “Order Defined in the Process of Its Emergence,” Literature of Liberty v (4): 5–18. Arlington, VA: Institute for Humane Studies.Google Scholar
  12. Burzcak, Theodore. 2006. Socialism after Hayek. Michigan: University of Michigan Press.Google Scholar
  13. Caldwell, Bruce. 1997. “Hayek and Socialism,” Journal of Economic Literature 35: 1856–90.Google Scholar
  14. Caplan, Bryan. 2012. “Why Should We Restrict Immigration?,” Cato Journal 32 (1). Accessed January 31, 2013. Available at: http://www.cato.org/sites/cato.org/files/serials/files/cato-journal/2012/1/cj32n1–2.pdf.
  15. Cordato, Roy E. 1992. Welfare Economics and Externalities in an Open-Ended Universe: A Modern Austrian Perspective. Boston, MA: Kluwer Academic Publishers.CrossRefGoogle Scholar
  16. Coyne, Christopher J. 2008. After War: The Political Economy of Exporting Democracy. Stanford, CA: Stanford University Press.Google Scholar
  17. —. 2011. “The Economics of Valentines Day.” Video interview by the Institute for Humane Studies. Accessed January 31, 2013. Available at: http://www.youtube.com/watch?v=Rtaw5YQm9HM; Transcript available at: http://www.kosmosonline.org/PDFs/CCoyne_VDay.pdf.
  18. Dahlsten, Ulf. 2010. “Market Economy, Democracy and Human Nature.” Accessed January 31, 2013. Available at: http://ec.europa.eu/information_society/eeurope/i2010/docs/studies/market_economy_democracy_ human_nature.pdf.
  19. DebateaCommunist. “a Few Questions for Communists and Anarcho- Communists.” Accessed January 31, 2013. Available at: http://www.reddit.com/r/DebateaCommunist/comment s/yggqd/a_few_questions_for_communists_and/.
  20. Diamond, Jared M. 1999. Guns, Germs, and Steel: The Fates of Human Societies. New York: W. W. Norton & Company.Google Scholar
  21. Dobuzinskis, L. 2010. “Non-Welfarism Avant la lettre: Alfred Fouill é e’s Political Economy of Justice,” European Journal of the History of Economic Thought 17 (4): 837–64.CrossRefGoogle Scholar
  22. Ebenstein, Alan. 2003. Friedrich Hayek: A Biography. Chicago: University of Chicago Press.Google Scholar
  23. Ellman, Michael. 2009. “What Did the Study of the Soviet Economy Contribute to Mainstream Economics?,” Comparative Economic Studies 51: 1–19.CrossRefGoogle Scholar
  24. Feser, Edward. 2000. “Taxation, Forced Labor, and Theft,” The Independent Review 5 (2): 219–35.Google Scholar
  25. —. 2006. “Introduction,” The Cambridge Companion to Hayek. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  26. Garrison, Roger. 1987. “The Kaleidic World of Ludwig Lachmann,” Review Article: The Market as an Economic Process by Ludwig M. Lachmann, Critical Review, 1 (3): 77–89.CrossRefGoogle Scholar
  27. George, Henry. 1912 [1879]. Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth, the Remedy. Garden City, NY: Doubleday, Page, & Co. Available at: http://oll.libertyfund.org/index.php?option=com_staticxt&staticfile=show.php%3Ftitle=328&Itemid=27.
  28. Gunning, Patrick. 2004. “Austrian Welfare Economics?: A Misesian Response.” Accessed January 31, 2013. Available at: http://www.constitution.org/pd/gunning/subjecti/workpape/auswelf.pdf.
  29. Haworth, Alan. 1994. Anti- Libertarianism: Markets, Philosophy, and Myth. New York: Routledge.Google Scholar
  30. Hayek, F. A. (ed.) 1935. Collectivist Economic Planning: Critical Studies on the Possibilities of Socialism. London: Routledge & Kegan Paul Ltd.Google Scholar
  31. —. 1945. “The Use of Knowledge in Society,” American Economic Review XXXV (4): 519–30.Google Scholar
  32. Hayek, F. A. 1960. The Constitution of Liberty. Chicago: University of Chicago Press.Google Scholar
  33. —. 1979. Law, Legislation, and Liberty, Volume III: The Political Order of a Free People. Chicago: The University of Chicago Press.CrossRefGoogle Scholar
  34. Heinrich, David J. 2004, David J. 2004. “Murray Rothbard and Henry George.” February 23, 2004. Accessed January 30, 2013. Available at: http://archive.mises.org/1610/murray-rothbard-and-henry-george/.
  35. Hirschman, Albert O. 1996. “Melding the Public and Private Spheres: Taking Commensality Seriously,” Critical Review 10 (4): 533–50.CrossRefGoogle Scholar
  36. Hodgson, Geoffrey. 1998. “Institutional Economic Theory: The Old versus the New,” in Prychitko (ed.), Why Economists Disagree. New York: State University of New York Press.Google Scholar
  37. Horvat Branko, Mihailo Markovi c, and Rudi Supek (eds.). 1975. Self-Governing Socialism: A Reader. 2 vols. White Plains, NY: International Arts and Sciences Press.Google Scholar
  38. Horwitz, Steven. 2004. “Total Freedom: Toward a Dialectical Libertarianism by Chris Matthew Sciabarra,” Review of Austrian Economics 17 (4): 457–61.CrossRefGoogle Scholar
  39. —. 2009. “The Economic Condition of Poor Americans (and the Rest of Us) Continues to Improve.” November 27, 2009. Accessed January 31, 2013. Available at: http://austrianeconomists.typepad.com/weblog/2009/11/the-economic-condition-of-poor-americans-and-therest-of-us-continues-to-improve.html.
  40. Keynes, John Maynard. 1936. The General Theory of Employment, Interest and Money. London: Macmillan.Google Scholar
  41. Kirzner, Israel M. 1976. “Philosophical and Ethical Implications of Austrian Economics,” in E. G. Dolan (ed.), The Foundations of Modern Austrian Economics. Kansas City: Sheed and Ward.Google Scholar
  42. —. 1988. “Welfare Economics: A Modern Austrian Perspective,” in W. Block and L. H. Rockwell (eds.), Man, Economy and Liberty, Essays in Honor of Rothbard. Auburn: Ludwig von Mises Institute.Google Scholar
  43. —. 1993. “Review of Welfare Economics and Externalities in an Open-Ended Universe: A Modern Austrian Perspective,” Cato Journal 13: 143–49.Google Scholar
  44. —. 1996. The Meaning of Market Process: Essays in the Development of Modern Austrian Economics. London: Routledge.Google Scholar
  45. —. 2000. The Driving Force of the Market: Essays in Austrian Economics. London: Routledge.CrossRefGoogle Scholar
  46. Knight, Frank H. 1924. “The Limitations of Scientific Method in Economics,” in Ross B. Emmett, ed., Selected Essays by Frank Knight, Volume One: What is Truth in Economics? Chicago: University of Chicago Press, 1999.Google Scholar
  47. Kornai, János. 1992. The Socialist System: The Political Economy of Communism. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
  48. Kvasnička, Michal. 2008. “Rothbard’s Welfare Theory: A Critique,” New Perspectives on Political Economy 4 (1): 41–52.Google Scholar
  49. Lachmann, Ludwig. 1978. Capital, Expectations, and the Market Process: Essays on the Theory of the Market Economy. Kansas City: Sheed and Ward.Google Scholar
  50. Laidler, Harry W. 1932. Socialist Planning and a Socialist Program. New York: Falcon Press.Google Scholar
  51. Lange, Oskar. [1936/1937] 1956. “On the Economic Theory of Socialism,” in B. E. Lippincott (ed.), On the Economic Theory of Socialism. Minneapolis: University of Minnesota Press.Google Scholar
  52. —. 1989. Market Socialism. Oxford: Clarendon Press.Google Scholar
  53. Lewin, Peter. 2013. “Hayek and Lachmann and the Complexity of Capital,” in Roger Garrison (ed.), The Elgar Companion to Hayek. Cheltenham: Edward Elgar.Google Scholar
  54. Lister, Andrew. 2011. “The ‘Mirage’ of Social Justice: Hayek against (and for) Rawls.” CSSJ Working Papers Series, SJ017.Google Scholar
  55. Lynch, Alberto Benegas. 1971. “Property and Freedom,” in Toward Liberty: Essays in Honor of Ludwig von Mises on the Occasion of his 90th Birthday, Vol. 1. Menlo Park, CA: Institute for Humane Studies.Google Scholar
  56. Mackay, Thomas. 1891. A Plea For Liberty: An Argument against Socialism and Socialistic Legislation. New York: D. Appleton and Company.Google Scholar
  57. Mackinnon, Ken. 1995. “Doing Away with Unemployment Benefit?,” Waikato Law Review 3: 185–206. Available at: http://www.nzlii.org/nz/journals/WkoLRev/1995/11.htmlGoogle Scholar
  58. Marx, Karl and Friedrich Engels. 1969 [1848]. “Manifesto of the Communist Party,” Marx/Engels Selected Works, Vol. 1. Moscow: Progress Publishers, pp. 98–137. Accessed January 28, 2013. Available at: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/.Google Scholar
  59. Matthews, Don. 1997. “The Free Market: Lifting All Boats,” in The Freeman 47 (4): 192–94.Google Scholar
  60. Menger, Carl. 2007 [1871]. Principles of Economics. Auburn: Luwig von Mises Institute.Google Scholar
  61. Miller, David. 1989a. Market, State, and Community. Oxford: Oxford University Press.Google Scholar
  62. Miller, David. 1989b. “Why Markets?,” in Julian Le Grand and Saul Estrin (ed.), Market Socialism. Oxford: Clarendon Press.Google Scholar
  63. Mises, Ludwig von. 1935. “Economic Calculation in the Socialist Commonwealth,” in F. A. Hayek (ed.), Collectivist Economic Planning: Critical Studies on the Possibilities of Socialism. London: George Routledge & Sons.Google Scholar
  64. —. [1949] 1996. Human Action: A Treatise on Economics. 4th revised ed. San Francisco, CA: Fox & Wilkes.Google Scholar
  65. Nell, Guinevere Liberty. 2010a. Rediscovering Fire: Basic Economic Lessons from the Soviet Experiment. New York: Algora.Google Scholar
  66. —. 2010b. “Competition as market progress: An Austrian rationale for agent-based modeling,” The Review of Austrian Economics 23 (2): 127–45.CrossRefGoogle Scholar
  67. Nell, Guinevere Liberty. 2013. Spontaneous Order and the Utopian Collective (forthcoming). New York: Palgrave Macmillan.Google Scholar
  68. Paine, Thomas. 1795. “Agrarian Justice.” Accessed May 6, 2013. Available at: http://www.constitution.org/tp/agjustice.htm.
  69. Pierson, Christopher. 1995. Socialism after Communism: The New Market Socialism. Cambridge: Polity.Google Scholar
  70. Pigou, Arthur C. 1932. The Economics of Welfare. 4th ed. London: Macmillan.Google Scholar
  71. Plant, Raymond. 1989. “Socialism, Markets and End States,” in Julian Le Grand and Saul Estrin (eds.), Market Socialism. Oxford: Clarendon Press.Google Scholar
  72. Prychitko, David L. 1991. Marxism and Workers’ Self- Management: The Essential Tension. New York: Greenwood Press.Google Scholar
  73. —. 1997. “Expanding the Anarchist Range: A Critical Reappraisal of Rothbard’s Contribution to the Contemporary Theory of Anarchism,” Review of Political Economy 9 (4): 433–55.CrossRefGoogle Scholar
  74. Roemer, John E. 1994. A Future for Socialism. Cambridge: Harvard University Press.CrossRefGoogle Scholar
  75. Rothbard, Murray. 1956. “Toward a Reconstruction of Utility and Welfare Economics,” in Mary Sennholz (ed.), On Freedom and Free Enterprise: Essays in Honor of Ludwig von Mises. Princeton, NJ: D. Van Nostrand Co. Accessed January 31, 2013. Available at: http://mises.org/rothbard/toward.pdf.Google Scholar
  76. —. 1970. Power and Market: Government and the Economy. Menlo Park, CA: Institute for Human Studies, Inc.Google Scholar
  77. —. 1993. “What Is the Free Market?,” in David Henderson (ed.), The Fortune Encyclopedia of Economics. New York: Time Warner Books, pp. 636–39.Google Scholar
  78. Shleifer, Andrei and Robert W. Vishny. 1994. “The Politics of Market Socialism,” The Journal of Economic Perspectives 8 (2): 165–76.CrossRefGoogle Scholar
  79. Shostak, Frank. 2007. “Marginal Utility Is Not Rocket Science,” Mises Daily, Tuesday, June 5.Google Scholar
  80. Schweickart, David, James Iawler, Hillel Ticktin, and Bertell Ollman. 1998. Market Socialism: The Debate among Socialists. New York: Routledge.Google Scholar
  81. Siebert, Horst. 1997. “Labor Market Rigidities: At the Root of Unemployment in Europe,” The Journal of Economic Perspectives 11 (3): 37–54.CrossRefGoogle Scholar
  82. Skidelsky, Robert and Edward Skidelsky. 2012. How Much Is Enough: Money and the Good Life. New York: Other Press.Google Scholar
  83. Sjöberg, Ola. 2008. “Labour Market Mobility and Workers’ Skills in a Comparative Perspective: Exploring the Role of Unemployment Insurance Benefits,” International Journal of Social Welfare 17 (1): 74–83.CrossRefGoogle Scholar
  84. Thornton, Mark. 2009. “The Economics of Holiday Gifts,” Mises Daily, Tuesday, December 15.Google Scholar
  85. Tragardh, Lars. 1990. “Swedish Model or Swedish Culture,” Critical Review 4 (4): 569–90.CrossRefGoogle Scholar
  86. Tungodden, B. 2000. “Egalitarianism: Is Leximin the Only Option?,” Economics and Philosophy 16 (2): 229–45.CrossRefGoogle Scholar
  87. Vihanto, Martti. 1999. “Social Contract and Introspection: A Proposal for an Austrian Welfare Economics,” Review of Austrian Economics (12): 5–24.CrossRefGoogle Scholar
  88. Von Wieser, Friedrich. 1889. Natural Value. London: Macmillan and Co. Accessed January 31, 2013. Available at: http://praxeology.net/FW-NV.htm.Google Scholar
  89. Yunker, James, A. 2001. On the Political Economy of Market Socialism: Essays and Analyses, Alternative Voices in Contemporary Economics series. Aldershot: Ashgate Publishing, Ltd.Google Scholar
  90. Zappia, Carlo. 1995. “The Economics of Information, Market Socialism and Hayek’s Legacy.” Working Paper. Accessed January 31, 2013. Available at: http://www.econpol.unisi.it/pubdocenti/HEI99.pdf.
  91. Zwolinski, Matthew and Cudd, Ann. 2010. Philosophy TV. Accessed January 31, 2013. Available at: http://www.philostv.com/ann-cudd-and-mattzwolinski/.Google Scholar

Copyright information

© Guinevere Liberty Nell 2013

Authors and Affiliations

  • Guinevere Liberty Nell

There are no affiliations available

Personalised recommendations