UNIT 12. THE DIVISION OF LABOR AND THE CONCEPT OF PRODUCTIVE ACTIVITY

THE ROLE OF MONEYMAKING IN PRODUCTIVE ACTIVITY

The Division of Labor and Productive Activity

The Doctrine That Only Manual Labor Is Productive

Productive Activity and Moneymaking

Consumptive Production

Productive Expenditure and Consumption Expenditure

Capital Goods and Consumers' Goods

Classification of Capital Goods and Consumers' Goods Not Based on Physical Characteristics

Government a Consumer

Producers' Labor and Consumers' Labor

Producers' Loans and Consumers' Loans

Government Borrowing

Capital Goods and Consumers' Goods Internally Produced; Other Revenues

Capital and Wealth

Capital Value and Investment

Productive Expenditure and Capital Value

Common Confusions About Capital Goods

Answers to Misconceptions of the Concepts Presented

Adam Smith on “Productive and Unproductive Labor”

Critique of the Concept of Imputed Income

Critique of the Opportunity--Cost Doctrine

READINGS/TAPES

Reisman, Capitalism, pp. 441–462

Tapes: Reisman, “A Theory of Productive Activity, Profit, and Saving,” Lecture 1

THE PRODUCTIVE ROLE OF BUSINESSMEN AND CAPITALISTS

The Productive Functions of Businessmen and Capitalists

Creation of Division of Labor

Coordination of the Division of Labor

Improvements in the Efficiency of the Division of Labor

The Productive Role of Financial Markets and Financial Institutions

The Specific Productive Role of the Stock Market

The Productive Role of Retailing and Wholesaling

The Productive Role of Advertising

READINGS/TAPES

Reisman, Capitalism, pp. 462–473

Tape: Reisman, “A Theory of Productive Activity, Profit, and Saving,” Lecture 5

BUSINESSMEN AND CAPITALISTS: CLASSICAL ECONOMICS VERSUS
THE MARXIAN EXPLOITATION THEORY

The Association Between Classical Economics and the Marxian Exploitation Theory

Correcting the Errors of Adam Smith: A Classical--Based Critique of the Conceptual
Framework of the Exploitation Theory

Smith's Confusion Between Labor and Wage Earning

The Conceptual Framework of the Exploitation Theory

Smith's Failure to See the Productive Role of Businessmen and Capitalists and of the
Private Ownership of Land

The Primacy--of--Wages Doctrine

A Rebuttal to Smith and Marx Based on Classical Economics: Profits, Not Wages, as
the Original and Primary Form of Income

Further Rebuttal: Profits Attributable to the Labor of Businessmen and Capitalists Despite
Their Variation With the Size of the Capital Invested

A Radical Reinterpretation of “Labor's Right to the Whole Produce”

Implications for the Incomes of “Passive” Capitalists

Acceptance of the Conceptual Framework of the Exploitation Theory by Its Critics

Necessary Revisions in Classical Economics

The Labor Theory of Value of Classical Economics

Harmonization of the Labor Theory of Value With Supply and Demand and the Productive
Role of Businessmen and Capitalists

Other Classical Doctrines and the Rise in Real Wages

Classical Economics' Limitations on the Labor Theory of Value

The Actual Significance of Quantity of Labor in Classical Economics

The “Iron Law of Wages” of Classical Economics

Diminishing Returns and the Malthusian Influence

Ricardo's Reservations

Adam Smith's Mistaken Belief in the Arbitrary Power of Employers Over Wage Rates

Ricardo's Confusions Concerning the “Iron Law of Wages”

The Actual Meaning Ricardo Attached to “A Fall in Wages”

Classical Economics' Mistaken Denial of the Ability to Tax Wage Earners

Marxian Distortions of Classical Economics; The Final Demolition of the Exploitation Theory

READINGS/TAPES

Reisman, Capitalism, pp. 441–500

Reisman, Capitalism, pp. 603–613

Tape: Reisman, “A Theory of Productive Activity, Profit, and Saving,” Lectures 2 and 4

Eugen von Böhm--Bawerk, “Unresolved Contradiction in the Marxian Economic System” in Shorter Classics of Böhm--Bawerk. This essay is better known under the title “Karl Marx and the Close of His System.”

Eugen von Böhm--Bawerk, “The Exploitation Theory” in Capital and Interest, Vol. 1, History and Critique of Interest Theories, 241–321

Adam Smith, The Wealth of Nations, Book 1, Chapters 6–9

David Ricardo, Principles of Political Economy and Taxation, Chapters 1, 5, and 6

“The Martyrdom of the Industrialists” in Ayn Rand, Atlas Shrugged, reprinted in Ayn Rand, For The New Intellectual

UNIT 13. MONEY AND SPENDING

The Quantity Theory of Money

The Quantity Theory of Money as the Explanation of Rising Prices

The Origin and Evolution of Money and the Contemporary Monetary System

The Potential Spontaneous Remonetization of the Precious Metals

The Government and the Banking System

The Quantity of Money and the Demand for Money

Changes in the Quantity of Money as the Cause of Changes in the Demand for Money

The Demand for Money: A Critique of the “Balance of Payments” Doctrine

The Balance of Payments Doctrine and Fiat Money

The Balance of Payments Doctrine Under an International Precious Metal Standard

Inflation as the Cause of a Gold Outflow

Unilateral Free Trade and the Balance of Trade

Invariable Money

Invariable Money and the Velocity of Circulation

The Contribution of the Concept of Invariable Money to Economic Theory

READINGS/TAPES

Reisman, Capitalism, pp. 503–541

Ludwig von Mises, Human Action, pp. 398–478, 780–803

Ludwig von Mises, The Theory of Money and Credit, pp. 9–410

Adam Smith “Of the Principle of the Commercial or Mercantile System” in The Wealth of Nations, Book 4, Chapter 1

UNIT 14. PRODUCTIONISM, SAY'S LAW, AND UNEMPLOYMENT

PRODUCTIONISM

Productionism Versus the Anti--Economics of Consumptionism

Depressions and Alleged “Overproduction”

Machinery and Unemployment

Alleged Inherent Group Conflicts Over Employment

Make--Work Schemes and Spread--the--Work Schemes

War and Government Spending

Population Growth and Demand

Imperialism and Foreign Trade

Parasitism as an Alleged Source of Gain to Its Victims

Advertising as Allegedly Fraudulent but Economically Beneficial

Misconception of the Value of Technological Progress

Increases in Production and Alleged Deflation

Consumptionism and Socialism

READINGS/TAPES

Reisman, Capitalism, pp. 542–559

Tape: Reisman, “An Introduction to Procapitalist Macroeconomics,” Lecture 1

Henry Hazlitt, Economics in One Lesson, Chapters 1–12

Frederic Bastiat, Economic Sophisms

John R. McCulloch, The Principles of Political Economy, Part 1, Chapter 7

SAY'S (JAMES MILL'S) LAW

Monetary Demand and Real Demand

The Referents of Say's Law and Its Confirmation by Cases Apparently Contradicting It

Partial, Relative Overproduction

Say's Law and Competition

Say's Law and the Average Rate of Profit

Production and the Fallacy of Composition

Falling Prices Caused by Increased Production Are Not Deflation

The Anticipation of Falling Prices

Economic Progress and the Prospective Advantage of Future Investments Over
Present Investments

Falling Prices and Accumulated Stocks

Falling Prices Resulting from a Larger Supply of Labor

READINGS/TAPES

Reisman, Capitalism, pp. 559–580

Tape: Reisman, “An Introduction to Procapitalist Macroeconomics,” Lecture 2

Ludwig von Mises, Planning for Freedom, pp. 64–71

James Mill, “Consumption” and “Of the National Debt” in Commerce Defended,

reprinted in James Mill Selected Economic Writings

UNEMPLOYMENT

The Free Market Versus the Causes of Mass Unemployment

Full Employment, Profitability, and Real Wages

Government Interference

Unemployment and the 1929 Depression

Unemployment, the New Deal, and World War II

Why Inflation Cannot Achieve Full Employment

Inflation Plus Price and Wage Controls

World War II as the Cause of Impoverishment in the United States

Prosperity Based on the Return of Peace

A Rational Full--Employment Policy

Appendix to Chapter 13: Inventories and Depressions

Inventories and Capital

“Excess” Inventories, Malinvestment, and the Deficiency of Inventories

Inflation and Credit Expansion as the Cause of Malinvestment in Inventories

Why “Excess” Inventories and Monetary Contraction Are Associated

READINGS/TAPES

Reisman, Capitalism, pp. 580–602

Tape: Reisman, “An Introduction to Procapitalist Macroeconomics,” Lecture 3

UNIT 15. THE PRODUCTIVITY THEORY OF WAGES

THE MARXIAN EXPLOITATION THEORY

The Influence of the Exploitation Theory

Marx's Distortions of the Labor Theory of Value

Implications for Value Added and Income Formation

Marx's Version of the Iron Law of Wages

The Rate of Exploitation Formula

Implications of the Exploitation Theory

READINGS/TAPES

Reisman, Capitalism, pp. 603–613

THE PRODUCTIVITY THEORY OF WAGES

The Irrelevance of Worker Need and Employer Greed in the Determination of Wages

Determination of Real Wages by the Productivity of Labor

The Foundations of the Productivity of Labor and Real Wages: Capital Accumulation
and Its Causes

Saving as a Source of Capital Accumulation

Technological Progress as a Source of Capital Accumulation

The Reciprocal Relationship Between Capital Accumulation and Technological Progress

The Economic Degree of Capitalism, the Wage “Share,” and Real Wages

Other Factors, Above All Economic Freedom and Respect for Property Rights, as Sources
of Capital Accumulation

The Undermining of Capital Accumulation and Real Wages by Government Intervention

The Nonsacrificial Character of Capital Accumulation Under Capitalism

Appendix to Section 3: An Analytical Refinement Concerning the Rate of Economic Progress

The Productivity Theory of Wages and the Interpretation of Modern Economic History

The Cause of Low Wages and Poor Working Conditions in the Past

How Real Wages Rose and the Standard of Living Improved

A Rise in the Productivity of Labor as the Only Possible Cause of a Sustained, Significant
Rise in Real Wages

The Futility of Raising Money Wage Rates by Means of an Increase in the Quantity of Money
or Decrease in the Supply of Labor

The Futility of a Rise in the Demand for Labor Coming at the Expense of the Demand
for Capital Goods

The Futility of Raising the Demand for Labor by Means of Taxation

The Limited Scope for Raising Real Wages Through a Rise in the Demand for Labor

Critique of Labor and Social Legislation

Redistributionism

Labor Unions

Minimum--Wage Laws

Maximum--Hours Legislation

Child--Labor Legislation

Forced Improvements in Working Conditions

The Employment of Women and Minorities

The Productivity Theory of Wages and the Wages--Fund Doctrine

The Productivity Theory of Wages Versus the Marginal--Productivity Theory of Wages

The Productivity Theory of Wages and the Effect of Diminishing Returns

READINGS/TAPES

Reisman, Capitalism, pp. 613–672

Tapes: Reisman, “An Introduction to Procapitalist Macroeconomics,” Lectures 4–6

Tape: Reisman, “A Theory of Productive Activity, Profit, and Saving,” Lecture 6

Tape: Reisman, “Capital, the Productive Process, and the Rate of Profit,” Lecture 2

Ludwig von Mises, Human Action, pp. 479–523, 587–634, 716–734, 769–779

Ludwig von Mises, Socialism, pp. 457–515

Ludwig von Mises, Planning for Freedom, pp. 94–107, 195–214

Henry Hazlitt, Economics in One Lesson, Chapters 19–21, 24–26

James Mill, “Consumption” and “Of the National Debt” in Commerce Defended, reprinted in James Mill Selected Economic Writings

Nassau W. Senior, Political Economy, portion titled “Development of the Third Elementary Proposition”

Eugen von Böhm--Bawerk, “Control or Economic Law,” in Shorter Classics of Böhm--Bawerk

F. A. Hayek, ed., Capitalism and the Historians

Robert Hessen, “The Effects of the Industrial Revolution on Women and Children” in Ayn Rand, ed., Capitalism: The Unknown Ideal

UNIT 16. AGGREGATE PRODUCTION, AGGREGATE SPENDING, AND THE ROLE
OF SAVING IN SPENDING

Spending Not a Measure of Output

Shortcomings of Price Indexes

Gross National Product and the Issue of “Double Counting”: A Is A Versus A Is A+

The Role of Saving and Productive Expenditure in Aggregate Demand

The Demand for A Is the Demand for A

The Demand for Consumers' Goods and the Demand for Factors of Production as
Competing Alternatives

Compatibility With the Austrian Theory of Value

Application to the Critique of the Keynesian Multiplier Doctrine

Saving Versus Hoarding

Saving as the Source of Most Spending

The “Macroeconomic” Dependence of the Consumers on Business

Saving as the Source of Increasing Aggregate Demand, Both Real and Monetary

Saving as the Source of Rising Consumption

Aggregate Economic Accounting on an Aristotelian Base

The Consumption Illusion of Contemporary National--Income Accounting

Gross National Revenue

More on the Critique of the Multiplier

Importance of Recognizing the Separate Demand for Capital Goods for the Theory of
Capital Accumulation and the Theory of National Income

The Inverse Relationship Between National Income and Economic Progress in an Economy
With an Invariable Money

Overthrow of the Keynesian Doctrines of the Balanced--Budget Multiplier and the
Conservatives' Dilemma

READINGS/TAPES

Reisman, Capitalism, pp. 441–447 (review), 673–718

Tape: Reisman, “Capital, the Productive Process, and the Rate of Profit,” Lecture 1

Tape: Reisman, “A Theory of Productive Activity, Profit, and Saving,” Lecture 6

Adam Smith, “Of the Accumulation of Capital, or of Productive and Unproductive Labour” in The Wealth of Nations, Book 2, Chapter 3

John Stuart Mill, Principles of Political Economy, Book 1, Chapters 3–5

UNIT 17. THE NET--CONSUMPTION/NET--INVESTMENT THEORY OF PROFIT AND INTEREST

THE POSITIVE THEORY

The Nature and Problem of Aggregate Profit

The Treatment of Interest

The Rate of Profit Not Based on Demand and Supply of Capital, but on the Difference
Between the Demand for Products and the Demand for Factors of Production

Determinants of the Average Rate of Profit in the Economic System Different from Deter--
minants of the Rate of Profit of the Individual Company or Industry

Critique of the Doctrine That the Interest Rate on Government Bonds Expresses the Pure
Rate of Return to Which Risk Premiums Are Added

The Path of Explanation: Net Consumption and Net Investment

The Problem of Aggregate Profit: Productive Expenditure and the Generation of Equivalent
Sales Revenues and Costs

Net Consumption and the Generation of an Excess of Sales Revenues Over Productive Expenditure

Net Consumption: Its Other Sources, Wider Meaning, and Relationship to the Saving of
Wage Earners

Confirming the Critique of the Exploitation Theory

The Net--Consumption Theory Further Considered

Why Businessmen and Capitalists Cannot Arbitrarily Increase the Rate of Net
Consumption and  the Rate of Profit

The Net--Consumption Rate and the Gravitation of Relative Wealth and Income

Accumulated Capital as a Determinant of Net Consumption

An Explanation of High Saving Rates Out of High Incomes

Net Consumption and Time Preference

Net Investment as a Determinant of Aggregate Profit and the Average Rate of Profit

Net Investment Versus Negative Net Consumption

The Prolongation of Net Investment Under an Invariable Money

Net Investment as the Result of the Marginal Productivity of Capital Exceeding the Rate of Profit

Net Investment as a Self--Limiting Phenomenon

Capital Intensification and the Tendency Toward the Disappearance of Net Investment
Under an Invariable Money

The Process of Capital Intensification

The Addition to the Rate of Profit Caused by Increases in the Quantity of Money

The Impact of Increases in the Quantity of Money on the Net--Investment and
Net--Consumption Rates

Increases in the Quantity of Money and the Perpetuation of Net Investment

The Increase in the Quantity of Commodity Money as an Addition to Aggregate Profit

Summary Statement of the Determinants of the Rate of Profit

Increases in the Real Rate of Profit Dependent on Increases in the Production and Supply of Goods

Net Investment Without Increasing Capital Intensiveness

Capital--Saving Inventions

The Inherent Springs to Profitability

Wage Rate Rigidities and Blockage of the Springs

Capital Intensiveness and the Monetary Component in the Rate of Profit

Capital Intensiveness Under Rapid Obsolescence

THE NET--CONSUMPTION/NET--INVESTMENT THEORY AND ALTERNATIVE THEORIES

Exposition and Critique of the Productivity Theory in Its Traditional Form

Exposition and Critique of the Time--Preference Theory in Its Traditional Form

The Contradiction Between Böhm--Bawerk's “First Cause” and the Doctrine of the
Purchasing--Power Premiums

The Discounting Approach

The Disappearance of the Higher Value of Present Goods at the Margin: Böhm--Bawerk's
Abandonment of the Time--Preference Theory

The Classical Basis of the Net--Consumption Theory

Appendix to Section 3: Critique of Ricardo's Doctrine of the Falling Rate of Profit

Other Proponents of the Net--Consumption/Net--Investment Theory

READINGS/TAPES

Reisman, Capitalism, pp. 719–808

Tapes: Reisman, “Capital, the Productive Process, and the Rate of Profit,” Lectures 3–6

Ludwig von Mises, Human Action, pp. 524–537

Eugen von Böhm--Bawerk, Capital and Interest, Vol. 2, Introduction, pp. 3–118, 259–381; Vol. 3, pp. 1–77, 137–212

UNIT 18. APPLICATIONS OF THE INVARIABLE--MONEY/NET--CONSUMPTION ANALYSIS

The Analytical Framework

Why Capital Accumulation and the Falling Prices Caused by Increased Production Do Not
Imply a Falling Rate of Profit

Confirmation of Fact That Falling Prices Caused by Increased Production Do Not Constitute
Deflation

More on the Relationship Between Technological Progress and the Rate of Profit

Ricardo's Insights on Capital Accumulation

The Rate of Profit and the Demand for Money

Why Capital Accumulation Does Not Depend on a Continuous Lengthening of
the Average Period of Production

The Average Period of Production and the Limits to Technological Progress as a Source
of Capital Accumulation

Implications for the Doctrine of Price Premiums in the Rate of Interest

Implications for the Process of Raising Real Wages

How the Taxation of Profits Raises the Rate of Profit

The Influence of the Monetary System

How Government Budget Deficits Raise the Rate of Profit

The Need to Reduce Government Spending

The Government's Responsibility for the Emphasis of Today's Businessmen on
Short--Term Results

Profits, the Balance of Trade, and the Need for Laissez Faire in the United States

Implications for the Theory of Saving

Net Saving and Increases in the Quantity of Money

Why the Actual Significance of Saving Lies at the Gross Level

Net Saving and the Rate of Profit

More on Saving and “Hoarding”: “Hoarding” as a Long--Run Cause of a Rise in the
Rate of Profit

Implications for the Critique of Keynesianism

Critique of the Investment--Opportunity and Underconsumption/Oversaving Doctrines

The Basic Error of Underconsumptionism

How the Demand for Capital Goods and Labor Can Radically and Permanently Exceed
the Demand for Consumers' Goods

Consumption as the Purpose of Production and the Progressive Production of Consumers'
Goods Over Time

The Ratio of Demands Between Stages

More on the Average Period of Production

A Rise in the Demand for Capital Goods and Fall in the Demand for Consumers' Goods:
The Cross--Hatching of Production

More on Why Savings Cannot Outrun the Uses for Savings

Capital Intensiveness and Land Values

The Housing Outlet and Consumer Interest

The Automatic Adjustment of the Rate of Saving to the Need for Capital

READINGS/TAPES

Reisman, Capitalism, pp. 809–862

Tapes: Reisman, “Capital, the Productive Process, and the Rate of Profit,” Lectures 4–6

David Ricardo, Principles of Political Economy and Taxation, Chapters 7, 8, 20, and 21

UNIT 19. KEYNESIANISM: A CRITIQUE

The Essential Claims of Keynesianism

Neo--Keynesianism

The Unemployment Equilibrium Doctrine and Its Basis: The IS Curve and Its Elements

The Grounds for the MEC Doctrine

The Keynesian Solution: “Fiscal Policy”

Critique of the IS--LM Analysis

The Declining--Marginal--Efficiency--of--Capital Doctrine and the Fallacy of Context Dropping

The Marginal--Efficiency--of--Capital Doctrine and the Claim That the Rate of Profit Is Lower
in the Recovery from a Depression Than in the Depression

The Unemployment Equilibrium Doctrine and the Claim That Saving and Net Investment Are
at Their Maximum Possible Limits at the Very Time They Are Actually Negative

The Marginal--Efficiency--of--Capital Doctrine's Reversal of the Actual Relationship Between
Net Investment and the Rate of Profit

The Contradiction Between the Marginal--Efficiency--of--Capital Doctrine and the
Multiplier Doctrine

A Fall in Wage Rates as the Requirement for the Restoration of Net Investment and
Profitability Along With Full Employment

Wage Rates, Total Wage Payments, and the Rate of Profit

Critique of the “Paradox--of--Thrift” Doctrine

Critique of the Saving Function

Critique of the “Liquidity--Preference” Doctrine

The Economic Consequences of Keynesianism

The Growth in Government

Budget Deficits, Inflation, and Deflation

Keynesianism and Economic Destruction

Why Keynesianism Is Not a Full Employment Policy

Keynesianism Versus the Rate of Profit: “The Euthanasia of the Rentier” and
“The Socialization of Investment”

READINGS/TAPES

Reisman, Capitalism, pp. 863–894

Henry Hazlitt, The Failure of the “New” Economics

Henry Hazlitt, Editor, The Critics of Keynesian Economics

UNIT 20. GOLD VERSUS INFLATION

INFLATION OF THE MONEY SUPPLY VERSUS ALTERNATIVE THEORIES OF
RISING PRICES

The Analytical Framework of the Quantity Theory of Money

The Vital Demand/Supply Test for All Theories of Rising Prices

The Elimination of Less Supply as the Cause of an Inflationary Rise in Prices

Refutation of the “Cost--Push” Doctrine in General

Critique of the “Wage--Push” Variant

Critique of the “Profit--Push” Variant

Critique of the “Crisis--Push” Variant

Critique of the Wage--Price Spiral Variant

Critique of the “Velocity” Doctrine

Critique of the “Inflation--Psychology” Doctrine

Critique of the Credit--Card Doctrine

Critique of the Consumer--Installment--Credit Doctrine

Critique of the Consumer--Greed Doctrine

The Meaning of Inflation

READINGS/TAPES

Reisman, Capitalism, pp. 895–922

Tapes: Reisman, “Inflation and the Quantity Theory of Money,” Lectures 1–3

Ludwig von Mises, Planning for Freedom, pp. 150–161

THE DEEPER ROOTS AND FURTHER EFFECTS OF INFLATION

The Connection Between Inflation and Government Budget Deficits

Budget Deficits and the Monetary Unit

The Motives and Rationale for Deficits and Inflation

The Welfare State

Inflation and War Finance

Inflation and the “Easy Money” Doctrine

Inflation as the Alleged Cure for Unemployment

The Underlying Influence of the Socialist Ideology

Inflation and Deficits Versus Representative Government and Economic Freedom

Inflation as the Cause of a Redistribution of Wealth and Income

Inflation and the Destruction of Capital

Reversal of Safety

Tax Effects

The Prosperity Delusion and Overconsumption

Malinvestment

The Withdrawal--of--Wealth Effect

Consequences of the Destruction of Capital

Reduction of the Real Rate of Return

The Gains of Debtors Less Than the Losses of Creditors

The Impoverishment of Wage Earners

The Stock Market and Inflationary Depression

Inflation as the Cause of Depressions and Deflation

Gold Clauses and Prospective Inflation of Paper as the Cause of Deflation in Gold

Inflation as the Cause of Mass Unemployment

The Inherent Accelerative Tendencies of Inflation

The Welfare--State Mentality

Inflation to Solve Problems Caused by Inflation

Recessions as Inflationary Fueling Periods

Indexing and the Wage and Interest Ratchets

The Current State of Inflation

Inflation and the Potential Destruction of the Division of Labor

READINGS/TAPES

Reisman, Capitalism, pp. 922–950

Ludwig von Mises, Planning for Freedom, pp. 83–93

Adam Smith, “Of Public Debts” in The Wealth of Nations, Book 5, Chapter 3

GOLD

Freedom for Gold as the Guarantee Against the Destruction of Money

A Proper Gold Policy for the Government

The Case For a 100--Percent--Reserve Gold Standard

Falling Prices Under the 100--Percent--Reserve Gold Standard Would Not Be Deflationary

The 100--Percent--Reserve Gold Standard as the Guarantee Against Deflation

Further Virtues of the 100--Percent--Reserve Gold Standard

The Moral Virtue of the 100--Percent--Reserve Gold Standard

The Monetary Role of Silver

The 100--Percent--Reserve Gold Standard as the Means of Ending Inflation Without a Depression

The 100--Percent--Reserve Gold Standard, Liquidity, and the Dismantling of the Welfare State

READINGS/TAPES

Reisman, Capitalism, pp. 951–966

Tape: Reisman, “Gold: the Solution to Our Monetary Dilemma”

Ludwig von Mises, Human Action, pp. 538–586

Ludwig von Mises, The Theory of Money and Credit, pp. 413–457, 461–483

Ludwig von Mises, Planning for Freedom, pp. 50–63, 185–194

Henry Hazlitt, Economics in One Lesson, Chapter 23

Henry Hazlitt, Editor, Andrew Dickson White, Fiat Money Inflation in France. Irvington--on--Hudson, New York: Foundation for Economic Education, 1960.

Murray Rothbard, What Has Government Done to Our Money?

Charles Holt Carroll, Organization of Debt into Currency

UNIT 21. TOWARD THE ESTABLISHMENT OF LAISSEZ--FAIRE CAPITALISM

Introduction

The Importance of Capitalism as a Conscious Goal

The Capitalist Society and a Political Program for Achieving It

Privatization of Property: Importance of Fighting on Basis of Principles

The Freedom of Production and Trade

Appropriate Compromises

The Case for the Immediate Sweeping Abolition of All Violations of the Freedom of
Production and Trade

Abolition of the Welfare State

Elimination of Social Security/Medicare

Elimination of Public Welfare

Elimination of Public Hospitals

Firing Government Employees and Ending Subsidies to Business

Escaping from Rent Control With the Support of Tenants

Abolition of Income and Inheritance Taxes

Establishment of Gold as Money

Procapitalist Foreign Policy

Freedom of Immigration

Friendly Relations With Japan and Western Europe

Separation of State from Education, Science, and Religion

Abolition of Public Education

Separation of Government and Science

Separation of State and Church

A General Campaign at the Local Level

The Outlook for the Future

READINGS/TAPES

Reisman, Capitalism, pp. 969–990

Tape: Reisman, “Toward the Establishment of a Capitalist Society”

Tape: Reisman, “Regulating Economic Growth, A Debate: George Reisman vs. Ray Catalano”

Ludwig von Mises, Planning for Freedom, pp. 173–184

Ayn Rand, “The Anatomy of Compromise,” “The Pull Peddlers,” “Extremism: or the Art of Smearing,” “The Obliteration of Capitalism,” and “Conservatism: An Obituary” in Ayn Rand, ed., Capitalism: The Unknown Ideal

Ayn Rand, “Fairness Doctrine for Education” and “What Can One Do?” in Ayn Rand, Philosophy: Who Needs It

Ayn Rand, “The Question of Scholarships,” “Tax Credits for Education,” “Representation Without Authorization,” and “How Not to Fight Against Socialized Medicine” in Ayn Rand, The Voice of Reason