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"Creating Wealth" through Debt: The West's Finance-Capitalist Road | Michael Hudson
The other major reaction against classical and Marxist theory was English and Austrian “utility” theory. Focusing on consumer psychology instead of production costs, it claimed that there is no difference between value and price. A price is whatever consumers “choose” to pay for commodities, based on the “utility” that these provide – defined by circular reasoning as being equal to the price they pay. Producers are assumed to invest and produce goods to “satisfy consumer demand,” as if consumers are the driving force of economies, not capitalists, property owners or financial managers.

Using junk-psychology, interest was portrayed as what bankers or bondholders “abstain” from consuming, lending their self-denial of spending to “impatient” consumers and “credit-worthy” entrepreneurs. This view opposed the idea of interest as a predatory charge levied by hereditary wealth and the privatized monopoly right to create bank credit. Marx quipped that in this view, the Rothschilds must be Europe’s most self-depriving and abstaining family, not as suffering from wealth-addiction.
marginal_utility  austrian_economics  debt  michael_hudson  china  marxism  economics  banking 
july 2018 by perich
Suzanne J. Konzelmann, Marc Fovargue-Davies - Anglo-Saxon Capitalism in Crisis? Models of Liberal Capitalism and the Preconditions for Financial Stability :: SSRN (rev'd September 2011) Cambridge Centre for Business Research Working Paper No. 422
Suzanne J. Konzelmann, Birkbeck College - Social Sciences, School of Management and Organizational Psychology; Cambridge - Social and Political Sciences -- Marc Fovargue-Davies, U of London - The London Centre for Corporate Governance & Ethics -- The return to economic liberalism in the Anglo-Saxon world was motivated by the apparent failure of Keynesian economic management to control the stagflation of the 1970s and early 1980s. In this context, the theories of economic liberalism, championed by Friederich von Hayek, Milton Friedman and the Chicago School economists, provided an alternative. However, the divergent experience of the US, UK, Canada and Australia reveals two distinct ‘varieties’ of economic liberalism: the ‘neo-classical’ incarnation, which describes American and British liberal capitalism, and the more ‘balanced’ economic liberalism that evolved in Canada and Australia. In large part, these were a product of the way that liberal economic theory was understood and translated into policy, which in turn shaped the evolving relationship between the state and the private sector and the relative position of the financial sector within the broader economic system. Together, these determined the nature and extent of financial market regulation and the system’s relative stability during the 2008 crisis. -- PDF File: 61 -- Keywords: Corporate governance, Regulation, Financial market instability, Liberal capitalism, Varieties of capitalism -- downloaded pdf to Note
paper  SSRN  economic_history  20thC  21stC  post-WWII  post-Cold_War  US_politics  UK_politics  political_economy  political_culture  ideology  neoliberalism  economic_theory  economic_sociology  business_practices  business-and-politics  business-norms  business_influence  Keynesianism  neoclassical_economics  Austrian_economics  Chicago_School  capitalism-systemic_crisis  capitalism-varieties  corporate_governance  corporate_finance  capital_markets  capital_as_power  financialization  finance_capital  financial_regulation  Great_Recession  financial_crisis  policymaking  trickle-down  Canada  Australia  downloaded 
july 2015 by dunnettreader
Andy Denis - A Century of Methodological Individualism - 2010 UK History of Economic Theory Conference
Draft -- He has been writing a series looking at what he describes as reductionist vs holistic ontologies, focusing on different usages of Methodological Individualism. Reductionists include Malthus (later writings), Ricardo, utilitarians, early marginalists, Menger (the "grand-daddy" though he didn't use the term), Schumpeter (who introduces the term in 1908), Mises, Friedman and Lucas et al. Holistic includes Smith, Keynes and Hayek. The full-blown reductionists make the heroic (but usually inexplicit) assumption that when each individual acts in his own interests ("properly understood" adds Mises) maximizing his own utility, that since society is nothing but the sum of individuals, the aggregate *social interests* will be maximized. Those who take a holistic view can't employ this sleight of hand, so they need another mechanism at the society level operating to ensure unintended consequences will be socially beneficial (Smith's invisible_hand, Hayek's evolutionary selection) Or their Keynes, facing the fact that there's no mechanism that ensures socially beneficial outcomes from the actions of self-interested individuals. Interesting bibliography as well as textual analysis. Note that Schumpeter embraces an atomistic version of MI for "pure theory" of economics, but following Weber would assign to other social sciences the links between individual behavior and social structures.
Scribd  social_theory  ontology-social  equilibrium  intellectual_history  18thC  19thC  20thC  Smith  Malthus  Ricardo  Menger  Austrian_economics  Schumpeter  Mises  Hayek  Friedman_Milton  Keynes  Weber  Marxist-analytical  individualism-methodology  emergence  bibliography 
april 2015 by dunnettreader
F.A. Hayek - "Richard Cantillon." [1931] - The Journal of Libertarian Studies (1985) | Mises Institute
Hayek, Friedrich A. "Richard Cantillon." Journal of Libertarian Studies 7, No. 2 (1985): 217–247. -- Introduction and textual comments written for Hella Hayek's 1931 German translation of Cantillon's "Essai", Micheál Ó Súilleabháin, trans. -- In economics, just as in other sciences, it is by no means an exceptional occurrence to find that, no sooner has a "new" doctrine made its mark, than earlier, completely forgotten writers are discovered who perceived those newly accepted ideas with brilliant insight in their own day and set them down in their writings. In our field Oresmius, Monchretien, Barbon, Rae, W. F. Lloyd, Cournot Jennings, Long- field, and Gossen are just a few of the best-known instances of this kind. In scarcely any field, however, will one find a case similar to that of Cantillon's Essai sur la nature du commerce en général, which, having greatly influenced the molding of a science and fully articulated it for the first time, was at once entirely forgotten and remained in obscurity for roughly a century until, rediscovered by accident, its second emergence proved sensational. -- downloaded pdf to Note
article  intellectual_history  18thC  19thC  20thC  Cantillon  Hayek  economic_theory  political_economy  Austrian_economics  marginalists  downloaded 
february 2015 by dunnettreader
Hébert, Robert F. "Was Richard Cantillon an Austrian Economist?" - The Journal of Libertarian Studies (1985) | Mises Institute
Hébert, Robert F. "Was Richard Cantillon an Austrian Economist?" Journal of Libertarian Studies 7, No. 2 (1985): 269–279. -- not chronologically, since Jevons rediscovered the Essai years after Menger's Principles, but speculatively... -- downloaded pdf to Note
article  intellectual_history  18thC  19thC  Cantillon  Austrian_economics  economic_theory  political_economy  downloaded 
february 2015 by dunnettreader
F.A. Hayek - Individualism and Economic Order - Books | Mises Institute
If you are looking to acquaint yourself with F.A. Hayek's perspective on economic theory — beyond his business cycle and monetary studies of the inter-war years — this is the best source. The collection appeared in 1947, before he moved on toward broader cultural and social investigations. It contains his most profound work on the liberal economic order, and his most penetrating reflections on economic phenomena -- published U of Chicago 1958 -- downloaded pdf to Note
books  etexts  intellectual_history  20thC  entre_deux_guerres  Austrian_economics  Hayek  social_theory  economic_theory  liberalism  socialism  communism  fascism  individualism  capitalism  market_fundamentalism  markets  prices  coordination  coordination-governments  political_economy  political_philosophy  downloaded 
february 2015 by dunnettreader
F.A. Hayek - The Use of Knowledge in Society (1945) | Mises Institute
Text of article -- This article was first published in American Economic Review, Vol. XXXV, No. 4 (September 1945), pp. 519–30. -- downloaded as pdf to Note
article  Hayek  Austrian_economics  social_theory  social_order  social_process  emergence  complex_adaptive_systems  coordination  information  information-markets  downloaded 
february 2015 by dunnettreader
F.A. Hayek - A Free Market Monetary System and The Pretense of Knowledge - Books | Mises Institute
Here are two of Hayek's greatest essays in one volume. The book begins with Hayek's most excellent essay on money. It is also his most radical. He plainly says that central banks cannot be reformed. There can never be sound money so long as they are in charge. He calls for their complete abolition, no compromises accepted. He wants the market in charge of money from top to bottom. His words predicting crisis followed by wild swings in valuation are up to the minute. He also relates the quality of money with the recurrence of crisis, showing an excellent application of Austrian theory. Hayek was deeply influenced by Mises, and this shows here in the area of money. The second essay is "The Pretense of Knowledge," his shocking Nobel speech that explained why the very idea of government in our times is unintellectual, presumptuous, and untenable. He is as critical of socialism as he is of interventionism. He shows that the state is not capable of doing all that it is charged with doing, and why conceding it any role in social and economic management is dangerous to liberty. -- copyright Mises Institute 2009 -- downloaded pdf to Note
books  etexts  20thC  Hayek  intellectual_history  economic_theory  social_theory  Austrian_economics  monetary_policy  central_banks  gold_standard  epistemology-social  information-markets  economic_policy  downloaded 
february 2015 by dunnettreader
Carl Menger - Investigations into the Method of the Social Sciences - Books | Mises Institute
The famed Methodenstreit of the late 19th century was the battle of method. It pitted the emerging Austrian School against the German Historical School over a critically important question: what is the proper way to do social science? Here, Carl Menger, the founder of the School, vindicates the importance of theory, and lays the foundation for later developments by Mises and others. The book was written twelve years after his principles book, and it sought to deal with the hostility with which that book was greeted in the German world. Menger argues that economics can and must be more than an effort at observing, collecting, and assembling data. It can make general observations about the laws of economics that operate independently of time and place. -- No Austrian can overlook this very important treatise on method. This edition includes an introduction by Lawrence White that frames up the debate over method in light of modern trends in economic theory. -- This edition copyright NYU in 1960s and Mises Institute 2009 -- downloaded pdf to Note
books  etexts  19thC  intellectual_history  Germany  German_historical_school  German_scholarship  historicism  economic_theory  economic_sociology  social_theory  social_sciences  Methodenstreit  methodology-quantitative  causation-social  covering_laws  Austrian_economics  downloaded 
february 2015 by dunnettreader
Paul A. Lewis - Notions of Order and Process in Hayek: The Significance of Emergence (Cambridge Journal of Economics, 2014) :: SSRN
DOI: 10.1093/cje/beu043 -- King's College London - Department of Political Economy -- This article explores the notions of order and process to which Friedrich Hayek subscribed. It is argued that a satisfactory understanding of Hayek’s conceptions of ‘order’ and ‘process’ — and in particular a clear understanding of those how the two concepts relate to each other in his scheme of thought — requires an appreciation of the ontological categories of ‘emergence’ and ‘emergent properties.’ Ultimately, for Hayek the capacity of liberal market economies to co-ordinate people’s actions in the face of tacit and dispersed knowledge is an emergent property that arises only when people’s interactions are governed by certain sets of rules. This static analysis of the co-ordinative powers of the market as an emergent property of a given system of rules must be supplemented by a dynamic account of the process through which the set of rules in question comes into being. Hayek provides such an account in his account of society as developing through a multi-level evolutionary process. Key implications of Hayek’s accounts of order and process for debates about the co-ordinative powers of free market economies are drawn out. -- Number of Pages in PDF File: 27 -- Keywords: Hayek, order, process, emergence, ontology, Austrian economics -- downloaded pdf to Note
article  SSRN  philosophy_of_social_science  social_theory  ontology-social  markets  markets-structure  social_order  emergence  heterodox_economics  Austrian_economics  evolution-social  social_process  coordination  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis - Certainly Not! A Critical Realist Recasting of Ludwig Von Mises’s Methodology of the Social Sciences (Journal of Economic Methodology (2010), 17(3): 277-99) :: SSRN
King's College London - Department of Political Economy -- This paper focuses on Ludwig von Mises methodological apriorism. It uses Wittgenstein’s private language argument as the basis for a critique of Mises’s claim to have found apodictically certain foundations for economic analysis. It is argued instead that Mises’s methodology is more fruitfully viewed as an exercise in social ontology, the objective of which is to outline key features of the socio-economic world that social scientific research ought to take into account if it is to be fruitful. The implications of this perspective for three key methodological issues, namely the relationship between theory and history, the possibility of naturalism, and the place of Austrian economics within the discipline of economics as a whole, are brought out. -- Number of Pages in PDF File: 22 -- Keywords: Austrian economics; Ludwig von Mises; praxeology; private language -- downloaded pdf to Note
article  SSRN  philosophy_of_social_science  social_theory  ontology-social  Mises  apriori  Wittgenstein  philosophy_of_language  economic_theory  economic_models  heterodox_economics  Austrian_economics  methodology  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis - Far from a Nihilistic Crowd: The Theoretical Contribution of Radical Subjectivist Austrian Economics ( Review of Austrian Economics, 2011, vol. 24: 185-98) :: SSRN
King's College London - Department of Political Economy -- This paper compares and contrasts the hermeneutic turn advocated by Don Lavoie in this 1985 essay on "The Interpretive Dimension of Economics" with the ontological turn that was gathering momentum amongst other groups of heterodox economists at about the same time. It is argued that an explicit focus on ontological issues can complement and support the ‘interpretive turn’, most notably by helping to show that the charge of nihilism that are sometimes levelled against Lavoie and his followers is unwarranted. The argument is illustrated by a case study of one of the inspirations of, and contributors to, Lavoie’s project, namely Ludwig Lachmann. -- Number of Pages in PDF File: 20 -- Keywords: Austrian economics, hermeneutics, social order, nihilism, social ontology, emergence, Ludwig Lachmann, Don Lavoie. -- downloaded pdf to Note
article  SSRN  philosophy_of_social_science  economic_sociology  social_theory  economic_theory  hermeneutics  social_order  ontology-social  emergence  Austrian_economics  heterodox_economics  critical_realism  nihilism  intellectual_history  20thC  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis - The Emergence of 'Emergence' in the Work of F.A. Hayek: An Historical Analysis (revised Jan 2015) :: SSRN
King's College London - Department of Political Economy -- presented at Cambridge Realist Workshop -- This paper addresses a puzzle in the history of economic thought. The puzzle is simply stated: Hayek’s analysis of the mind arguably relies heavily on the philosophical notions of emergence and emergent properties. However, Hayek invokes the philosophical notion of emergence explicitly only once, and then relatively late in his career (in his 1964 paper on ‘The Theory of Complex Phenomena’.) The question arises, therefore, of where lie the origins of Hayek’s use of the notions of emergence and emergent properties. This paper attempts to solve this puzzle by examining the history of Hayek’s use of the concept of emergence, implicit or otherwise, and attempting to identify the sources through which notions of ‘emergence’ and ‘emergent properties’ entered his thought in general and, in particular, his theoretical psychology. -- Number of Pages in PDF File: 46 -- Keywords: Hayek, emergence, emergent properties, theoretical psychology -- downloaded pdf to Note
paper  SSRN  intellectual_history  20thC  Hayek  Austrian_economics  economic_theory  social_theory  ontology-social  equilibrium  social_order  social_process  emergence  complex_adaptive_systems  coordination  markets-psychology  mind  psychology  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis - Turning to Reality? A Review Essay on Tony Lawson's "Reorienting Economics" (2009) :: SSRN
King's College London - Department of Political Economy -- This essays explores various aspects of Tony Lawson's claim that the discipline of economics would benefit from a more explicit, systematic and sustained concern with ontology, that is with (philosophical analysis of) the nature of (what exists in) the social world, than it has hitherto displayed. -- Number of Pages in PDF File: 13 -- Keywords: Social ontology, critical realism, heterodox economics, Austrian economics. -- downloaded pdf to Note
paper  SSRN  social_theory  critical_realism  philosophy_of_social_science  ontology-social  heterodox_economics  Austrian_economics  economic_theory  political_economy  methodology  methodology-qualitative  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis and Emily Chamlee-Wright - Social Embeddedness, Social Capital and the Market Process: An Introduction to the Special Issue on "Austrian Economics, Economic Sociology and Social Capital" (2008:: SSRN
Paul A. Lewis, King's College London - Department of Political Economy -- Emily Chamlee-Wright, Beloit College - Department of Economics and Management -- Two of the most influential concepts in social science over the past two decades have been 'social embeddedness' and 'social capital'. This essay introduces a special issue of the Review of Austrian Economics in which those concepts are examined from the perspective provided by Austrian economics. In particular, the contributors consider the compatibility of notions of 'embeddedness' and 'social capital' with the Austrian theory of the market process and explore whether reformulating those concepts in the light of Austrian ideas can contribute fresh insights. -- Number of Pages in PDF File: 26 -- Keywords: Austrian economics, economic sociology, trust, social capital -- downloaded pdf to Note
article  SSRN  philosophy_of_social_science  economic_sociology  social_theory  economic_theory  embeddedness  social_capital  trust  Austrian_economics  downloaded  EF-add 
february 2015 by dunnettreader
Paul A. Lewis - Hayek, Social Theory and the Contrastive Explanation of Socio-Economic Order (2013. Critical Review Vol. 25, Nos. 3-4.) :: SSRN
Lewis, Paul A., Hayek, Social Theory and the Contrastive Explanation of Socio-Economic Order (2013). Critical Review Vol. 25, Nos. 3-4. Available at SSRN: or -- King's College London - Department of Political Economy -- Hayek’s later work on the possibility of socio-economic order in decentralized market economies is an exercise in contrastive causal explanation as conceptualized by realist social theorists and philosophers. This interpretation of Hayek’s work lends support to the view that Hayek’s post-1960 writings can be thought of as an example of comparative institutional analysis. It also provides a means of reinforcing Hayek’s own efforts to establish the scientific credentials of his work. -- Number of Pages in PDF File: 19 -- Keywords: Hayek, Austrian economics, scientism, ontology, comparative institutional analysis-- downloaded pdf to Note
paper  SSRN  intellectual_history  20thC  Hayek  Austrian_economics  economic_theory  social_theory  ontology-social  institutional_economics  scientistism  economic_sociology  critical_realism  comparative_economics  markets  markets-structure  downloaded  EF-add 
february 2015 by dunnettreader

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