This article is excerpted from Human Action, chapter 38, "The Place of Economics in Learning."
by Ludwig von Mises
Economics must not be relegated to classrooms and statistical offices and
must not be left to esoteric circles. It is the philosophy of human life and
action and concerns everybody and everything. It is the pith of civilization
and of man's human existence.
To mention this fact is not to indulge in the often-derided weakness of
specialists who overrate the importance of their own branch of knowledge. Not
the economists, but all the people today assign this eminent place to
economics.
All present-day political issues concern problems commonly called economic.
All arguments advanced in contemporary discussion of social and public affairs
deal with fundamental matters of praxeology and economics. Everybody's mind is
preoccupied with economic doctrines. Philosophers and theologians seem to be
more interested in economic problems than in those problems which earlier
generations considered the subject matter of philosophy and theology. Novels
and plays today treat all things human — including sex relations — from the
angle of economic doctrines. Everybody thinks of economics whether he is aware
of it or not. In joining a political party and in casting his ballot, the
citizen implicitly takes a stand upon essential economic theories.
In the 16th and 17th centuries religion was the main issue in European
political controversies. In the 18th and 19th centuries in Europe as well as in
America the paramount question was representative government versus royal
absolutism. Today it is the market economy versus socialism. This is, of
course, a problem the solution of which depends entirely on economic analysis.
Recourse to empty slogans or to the mysticism of dialectical materialism is of
no avail.
There is no means by which anyone can evade his personal responsibility.
Whoever neglects to examine to the best of his abilities all the problems
involved voluntarily surrenders his birthright to a self-appointed elite of
supermen. In such vital matters blind reliance upon "experts" and
uncritical acceptance of popular catchwords and prejudices is tantamount to the
abandonment of self-determination and to yielding to other people's domination.
As conditions are today, nothing can be more important to every intelligent man
than economics. His own fate and that of his progeny is at stake.
Very few are capable of contributing any consequential idea to the body of
economic thought. But all reasonable men are called upon to familiarize
themselves with the teachings of economics. This is, in our age, the primary
civic duty.
Whether we like it or not, it is a fact that economics cannot remain an
esoteric branch of knowledge accessible only to small groups of scholars and
specialists. Economics deals with society's fundamental problems; it concerns
everyone and belongs to all. It is the main and proper study of every citizen.
Economics and Freedom
The paramount role that economic ideas play in the determination of civic
affairs explains why governments, political parties, and pressure groups are
intent upon restricting the freedom of economic thought. They are anxious to
propagandize the "good" doctrine and to silence the voice of the
"bad" doctrines. As they see it, truth has no inherent power which
could make it ultimately prevail solely by virtue of its being true. In order
to carry on, truth needs to be backed by violent action on the part of the
police or other armed troops. In this view, the criterion of a doctrine's truth
is the fact that its supporters succeeded in defeating by force of arms the
champions of dissenting views. It is implied that God or some mythical agency
directing the course of human affairs always bestows victory upon those
fighting for the good cause. Government is from God and has the sacred duty of
exterminating the heretic.
It is useless to dwell upon the contradictions and inconsistencies of this
doctrine of intolerance and persecution of dissenters. Never before has the
world known such a cleverly contrived system of propaganda and oppression as
that instituted by contemporary governments, parties, and pressure groups.
However, all these edifices will crumble like houses of cards as soon as a
great ideology attacks them.
Not only in the countries ruled by barbarian and neobarbarian despots but
no less in the so-called Western democracies, the study of economics is
practically outlawed today. The public discussion of economic problems ignores
almost entirely all that has been said by economists in the last 200 years.
Prices, wage rates, interest rates, and profits are dealt with as if their
determination were not subject to any law. Governments try to decree and to
enforce maximum commodity prices and minimum wage rates. Statesmen exhort
businessmen to cut down profits, to lower prices, and to raise wage rates as if
these were dependent on the laudable intentions of individuals. In the
treatment of international economic relations people blithely resort to the
most naïve fallacies of Mercantilism. Few are aware of the shortcomings of all
these popular doctrines, or realize why the policies based upon them invariably
spread disaster.
These are sad facts. However, there is only one way in which a man can
respond to them: by never relaxing in the search for truth.
This article is excerpted from Human Action, chapter 38, "The Place of Economics in Learning."
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