Liberalism in the Classical Tradition

1
Liberalism in the Classical Tradition

• Peter Boettke
• Econ 828/Fall 2004
• September 13

2
Mises in Context

• Theoretical
• The comparison of social systems of exchange and
  production
• Socialism 1922
• Liberalism 1927
• Interventionism 1929
• Historical
• Anti-Liberalism
• WWI
• Nation, State and Economy 1919
• Public Policy
• Protectionism/Nationalism
• Socialism Internationalism and Nationalism
• Progressivism and Interventionism

3
Rules of Engagement in Economic Systems

• Compare Theory with Theory, or Reality with
  Reality, but never the Theory of one with the
  Reality of another
• Means/Ends Analysis
• Treat Ends as Given --- meaning of value freedom
• Means effectively achieve ends --- Efficient
• Means fight against ends --- Inefficient
• Means are incoherent with respect to ends --
  Impossible
• Vulnerability to Opportunism
• How deviant does behavior have to be for the
  social system to prove unable to operate
  effectively?
• Self-interested behavior domestically
• Predatory behavior internationally

4
The Assessment of Economic and Political Systems

• Intentions Do Not Equal Results
• Unintended consequences
• Invisible hand explanations as well as perversity
  of outcomes explanations
• Attempting Something is NOT the same as achieving
  something
• Importance of taking definitions seriously
• E.g., the meaning of socialism
• Reasons for Deviations from Liberal Economic
  Policy
• Managerial (organizational efficiency),
  Paternalism (impose the values of the elite on
  others for their good), Distributive (equity),
  Parentialism (desire to be ruled over afraid
  to be free)

5
What is liberalism?

• Private Property, p. 18
• Equity in opportunity not results, p. 29, 31, 44.
• Limited Government, p. 39, 52-55, 68.
• Toleration and freedom of association, p. 55-57.
• Free Trade and Non-Aggressive Foreign Policy, p.
  105-54.
• Cosmopolitan, p. 106-7, 144.
• Anti-Imperialism and anti-colonialism, p. 125.
• Free trade, p. 130-32, 148, 150.
• Liberalism is the application of science to the
  realm of public policy, p. 88.