Ludwig Von Mises Quotes

The agents of etatism have certainly not been lacking in zeal and energy. But, for all this, economic affairs cannot be kept going by magistrates and policemen.

Louis XIV was very frank and sincere when he said: I am the State. The modern statist is modest. He says: I am the servant of the State; but, he implies, the State is God. You could revolt against a Bourbon king, and the French did it. This was, of course, a struggle of man against man. But you cannot revolt against the god State and against his humble handy man, the bureaucrat.

The genuine history of mankind is the history of ideas. It is
ideas that distinguish man from all other beings. Ideas
engender social institutions, political changes, technologi-
cal methods of production, and all that is called economic
conditions.

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

Freedom really means the freedom to make mistakes.

The luxury of today is the necessity of tomorrow. Every advance first comes into being as the luxury of a few rich people, only to become, after a time, an indispensable necessity taken for granted by everyone. Luxury consumption provides industry with the stimulus to discover and introduce new, things. It is one of the dynamic factors in our economy. To it we owe the progressive innovations by which the standard of living of all strata of the population has been gradually raised.

The struggle for freedom is ultimately not resistance to autocrats or oligarchs but resistance to the despotism of public opinion.

Every extension of the functions and power of the State beyond its primary duty of maintaining peace and justice should be scrutinized with jealous vigilance.

The social displacements that occur as consequences of variations in the value of money result solely from the circumstance that this assumption never holds good. In the chapter dealing with the determinants of the objective exchange-value of money it was shown that variations in the value of money always start from a given point and gradually spread out from this point through the whole community.

As the science of economics ... exploded the fallacies of every brand of utopianism, it was outlawed and stigmatized as unscientific.

We must fight all that we dislike in public life. We must substitute better ideas for wrong ideas.

You know that the population is of this planet is now ten times greater than it was in the ages preceding capitalism.; you know that all men today enjoy a higher standard of living than your ancestors did before the age of capitalism. But how do you know that you are the one out of ten who would have lived in the absence of capitalism? The mere fact that you are living today is proof that capitalism has succeeded, whether or not you consider your own life very valuable.

The gold standard makes the money's purchasing power independent of the changing, ambitions and doctrines of political parties and pressure groups. This is not a defect of the gold standard; it is its main excellence.

One has to recognize that science is not metaphysics, and certainly not mysticism; it can never bring us the illumination and the satisfaction experienced by one enraptured in ecstasy. Science is sobriety and clarity of conception, not intoxicated vision.

Man is not, like the animals, an obsequious puppet of instincts and sensual impulses. Man has the power to suppress instinctive desires, he has a will of his own, he chooses between incompatible ends.

It is something radically different from them all. They are out for battle and extol violence; liberalism, on the contrary, desires peace and the ascendancy of ideas. It is for this reason that all parties, however badly disunited they may otherwise be, form a united front against liberalism.
The enemies of liberalism have branded it as the party of the special interests of the capitalists. This is characteristic of their mentality. They simply cannot understand a political ideology as anything but the advocacy of certain special privileges opposed to the general welfare.
One cannot look on liberalism as a party of special interests, privileges, and prerogatives, because private ownership of the means of production is not a privilege redounding to the exclusive advantage of the capitalists, but an institution in the interest of the whole of society and consequently an institution that benefits everyone.

Before it was usual to acquire goods in the market, not for personal consumption, but simply in order to exchange them again for the goods that were really wanted, each individual commodity was only accredited with that value given by the subjective valuations based on its direct utility. It was not until it became customary to acquire certain goods merely in order to use them as media of exchange that people began to esteem them more highly than before, on account of this possibility of using them in indirect exchange. The individual valued them in the first place because they were useful in the ordinary sense, and then additionally because they could be used as media of exchange. Both sorts of valuation are subject to the law of marginal utility.

The worst thing that can happen to a socialist is to have his country ruled by socialists who are not his friends.

There is joint action, but no joint thinking. There is only tradition which preserves thoughts and communicates them to others as a stimulus to their thinking.

American authors or scientists are prone to consider the wealthy businessman as a barbarian, as a man exclusively intent upon making money.

But there are nevertheless three conclusions that seem to follow from our critical examination of the possibilities of inflationary policy. In the first place, all the aims of inflationism can be secured by other sorts of intervention in economic affairs, and secured better, and without undesirable incidental effects. If it is desired to relieve debtors, moratoria may be declared or the obligation to repay loans may be removed altogether; if it is desired to encourage exportation, export premiums may be granted; if it is desired to render importation more difficult, simple prohibition may be resorted to, or import duties levied. All these measures permit discrimination between classes of people, branches of production, and districts, and this is impossible for an inflationary policy. Inflation benefits all debtors, including the rich, and injures all creditors, including the poor; adjustment of the burden of debts by special legislation allows of differentiation. Inflation encourages the exportation of all commodities and hinders all importation; premiums, duties, and prohibitions can be employed discriminatorily.

Government cannot make man richer, but it can make him poorer.

It is true that the speculator may happen to go astray in his estimate of future prices. What is usually overlooked in considering this possibility is that under the given conditions it is far beyond the capacities of most people to foresee the future any more correctly. If this were not so, the opposing group of buyers or sellers would have got the upper hand in the market. The fact that the opinion accepted by the market has later proved to be false is lamented by nobody with more genuine sorrow than by the speculators who held it. They do not err of malice prepense; after all, their object is to make profits, not losses.

The methods of the natural sciences cannot be applied to human behavior because this behaviorlacks the peculiarity that characterizes events in the field of the natural sciences, viz., regularity.

There can be no freedom in art and literature where the government determines who shall create them.

Spiritual movements are revolts of thought against inertia, of the few against the many; of those who because they are strong in spirit are strongest alone against those who can express themselves only in the mass and the mob, and who are significant only because they are numerous.

Seen from the point of view of the particular group interests of the bureaucrats, every measure that makes the government's payroll swell is progress.

Experience shows that nothing is operated with less economy and with more waste of labor and material of every kind than public services and undertakings. Private enterprise on the other hand naturally induces the owner to work with the greatest economy in his own interest.

Liberty is meaningless if it is only the liberty to agree with those in power.

Each epoch has found in the Gospels what it sought to find there, and has overlooked what it wished to overlook.

If men do not now succeed in abolishing war, civilization and mankind are doomed.

Fiat-money! Let the State 'create' money, and make the poor rich, and free them from the bonds of the capitalists! How foolish to forego the opportunity of making everybody rich, and consequently happy, that the State's right to create money gives it! How wrong to forego it simply because this would run counter to the interests of the rich! How wicked of the economists to assert that it is not within the power of the State to create wealth by means of the printing press!- You statesmen want to build railways, and complain of the low state of the exchequer? Well, then, do not beg loans from the capitalists and anxiously calculate whether your railways will bring in enough to enable you to pay interest and amortization on your debt. Create money, and help yourselves.

The characteristic mark of this age of dictators, wars and revolutions is its anticapitalistic bias. Most governments and political parties were eager to restrict the sphere of private initiative and free enterprise.

Do not give in to evil, but proceed ever more boldly against it.

The so-called liberals of today have the very popular idea that freedom of speech, of thought, of the press, freedom of religion, freedom from imprisonment without trial-that all these freedoms can be preserved in the absence of what is called economic freedom. They do not realize that, in a system where there is no market, where the government directs everything, all those other freedoms are illusory, even if they are made into laws and written up in constitutions.

The most successful businessmen were often uneducated when measured by the scholastic standards of the teaching profession. But they were equal to their social function of adjusting production to the most urgent demand. Because of these merits the consumers chose them for business leadership.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the effort of men who are better than you. If this be arrogance, as some of your critics observed, it is still the truth that had to said in the age of the Welfare State.

Taxes are necessary. But the system of discriminatory taxation universally accepted under the misleading name of progressive taxation of income and inheritance is not a mode of taxation. It is rather a mode of disguised expropriation of the successful capitalists and entrepreneurs.

To the masses, the catchwords of Socialism sound so enticing ... so they will continue to work for Socialism, helping thereby to bring about the inevitable decline of the civilization which the nations of the West have taken thousands of years to build up.

No private enterprise will ever fall prey to bureaucratic methods of management if it is operated with the sole aim of making profit.

The socialists are sometimes wont to reproach liberalism with a lack of
consistency, It is, they maintain, illogical to restrict the activity of the state in the economic sphere exclusively to the protection of property. It is difficult to see why, if the state is not to remain completely neutral, its intervention has to be limited to protecting the rights of property owners.
This reproach would be justified only if the opposition of liberalism to all governmental activity in the economic sphere going beyond the protection of property stemmed from an aversion in principle against any activity on the part of the state. But that is by no means the case. The reason why liberalism opposes a further extension of the sphere of governmental activity is precisely that this would, in effect, abolish private ownership of the means of production. And in private property the liberal sees the principle most suitable for the organization of man's life in society.
38
The Foundations of Liberal Policy
Liberalism is therefore far from disputing the necessity of a machinery of state, a system of law, and a government. It is a grave misunderstanding to associate it in any way with the idea of anarchism. For the liberal, the state is an absolute necessity, since the most important tasks are incumbent upon it: the protection not only of private property, but also of peace, for in the absence of the latter the full benefits of private property cannot be reaped.

If one prevents a man from working for the good of society while at the same time providing for the satisfaction of his own needs, then only one way remains open to him: to make himself richer and others poorer by the violent oppression and spoliation of his fellow men.

Action is an attempt to substitute a more satisfactory state of affairs for a less satisfactory one. We call such a willfully induced alteration an exchange.

The sharper the competition, the better it serves its social function to improve economic production.

Violent resistance against the power of the state is the last resort of the minority in its effort to break loose from the oppression of the majority ... The citizen must not be so narrowly circumscribed in his activities that, if he thinks differently from those in power, his only choice is either to perish or to destroy the machinery of state.

Let us assume that a man gets half his income in the form of interest-bearing securities and half in the form of money; and that he is in the habit of saving three-quarters of his income, and does this by retaining the securities and using that half of his income which he receives in cash in equal parts for paying for current consumption and for the purchase of further securities. Now let us assume that a variation in the composition of his income occurs, so that he receives three-quarters of it in cash and only one-quarter in securities. From now on this man will use two-thirds of his cash receipts for the purchase of interest-bearing securities. If the price of the securities rises or, which is the same thing, if their rate of interest falls, then in either case he will be less willing to buy and will reduce the sum of money that he would otherwise have employed for their purchase; he is likely to find that the advantage of a slightly increased reserve exceeds that which could be obtained from the acquisition of the securities. In the second case he will doubtless be inclined to pay a higher price, or more correctly, to purchase a greater quantity at the higher price, than in the first case. But he will certainly not be prepared to pay double as much for a unit of securities in the second case as in the first case.

The tow pillars of democratic government are the primacy of the law and the budget.

What is called storing money is a way of using wealth. The uncertainty of the future makes it seem advisable to hold a larger or smaller part of one's possessions in a form that will facilitate a change from one way of using wealth to another, or transition from the ownership of one good to that of another, in order to preserve the opportunity of being able without difficulty to satisfy urgent demands that may possibly arise in the future for goods that will have to be obtained by way of exchange.

Reason and action are congeneric and homogenous, two aspects of the same phenomenon.

The financial history of the last century shows a steady increase in the amount of public indebtedness. Nobody believes that the states will eternally drag the burden of these interest payments. It is obvious that sooner or later all these debts will be liquidated in some way or other, but certainly not by payment of interest and principal according to the terms of the contract.

Wars of aggression are popular nowadays with those nations convinced that only victory and conquest could improve their material well-being.

What workers must learn is that the only reason why wage rates are higher in the United States is that the per head quota of capital invested is higher.

Economic prosperity is not so much a material problem; it is, first of all, an intellectual, spiritual, and moral problem.

Innovators and creative geniuses cannot be reared in schools. They are precisely the men who defy what the school has taught them.

It is solely bigness in business which makes it possible to supply the masses with all those products the present-day American common man does not want to do without. Luxury goods for the few can be produced in small shops. Luxury goods for the many require big business.

History likewise shows that sometimes the 'monetary standard of the victors' can prove to be very bad. There have seldom been more brilliant victories than those eventually achieved by the American insurgents under Washington against the English troops. But the American 'continental dollar did not benefit from them. The more proudly the star-spangled banner rose on high, the lower did the exchange-rate fall, until, at the very moment when the victory of the rebels was secured, the dollar became entirely valueless. The course of events was no different not long afterwards in France. In spite of the victories of the revolutionary army, the metal premium rose.

The only source from which an entrepreneurs profits stem is his ability to anticipate better than other people the future demand of the consumers.

The truth is that capitalism has not only multiplied population figures, but at the same time, improved the people's standard of living in an unprecedented way. Neither economic thinking nor historical experience suggests that any other social system could be as beneficial to the masses as capitalism. The results speak for themselves. The market economy needs no apologists and propagandists. It can apply to itself the words of Sir Christopher Wren's epitaph in St. Paul's: Si monumentum requires, circumspice.

Those politicians, professors and union bosses who curse big business are fighting for a lower standard of living.

The flowering of human society depends on two factors: the intellectual power of outstanding men to conceive sound social and economic theories, and the ability of these or other men to make these ideologies palatable to the majority.

Nonetheless, many people, and especially intellectuals, passionately loathe capitalism. As they see it, this ghastly mode of society's economic organization has brought about nothing but mischief and misery. Men were once happy and prosperous in the good old days preceding the Industrial Revolution. Now under capitalism the immense majority are starving paupers ruthlessly exploited by rugged individualists. For these scoundrels nothing counts but their moneyed interests. They do not produce good and really useful things, but only what will yield the highest profits. They poison bodies with alcoholic beverages and tobacco, and souls and minds with tabloids, lascivious books and silly moving pictures. The "ideological superstructure" of capitalism is a literature of decay and degradation, the burlesque show and the art of striptease, the Hollywood pictures and the detective stories.

As society is only possible if everyone, while living his own life, at the same time helps others to live; if every individual is simultaneously means and end; if each individual's well-being is simultaneously the condition necessary to the well-being of others, it is evident that the contrast between I and thou, means and end, automatically is overcome.

All people, entrepreneurs as well as non-entrepreneurs, look askance upon any profits earned by other people. Envy is a common weakness of men. People are loath to acknowledge the fact that they themselves could have earned profits if they had displayed the same foresight and judgment the successful businessman did.

Economics is a theoretical science and as such abstains from any judgement of value. It is not its task to tell people what ends they should aim at. It is a science of the means to be applied for attainment of ends chosen, not, to be sure, a science of the choosing of ends. Ultimate decisions, the valuations and the choosing of ends, are beyond the scope of any science. Science never tells a man how he should act; it merely shows how a man must act if he wants to attain definite ends.

All present-day governments are fanatically committed to an easy money policy.

It serves the American socialists as a leading argument in their endeavor to depict American capitalism as a curse of mankind. Reluctantly forced to admit that capitalism pours a horn of plenty upon people and that the Marxian prediction of the masses' progressive impoverishment has been spectacularly disproved by the facts, they try to salvage their detraction of capitalism by describing contemporary civilization as merely materialistic and sham.
Bitter attacks upon modem civilization are launched by writers who think that they are pleading the cause of religion. They reprimand our age for its secularism.
They bemoan the passing of a way of life in which, they would have us believe, people were not preoccupied with the pursuit of earthly ambitions but were first of ali concerned about the strict observance of their religious duties. They ascribe ali evils to the spread of skepticism and agnosticism and passionately advocate a return to the orthodoxy of ages gone by.
It is hard to find a doctrine which distorts history more radically than this antisecularism. There have always been devout men, pure in heart and dedicated to a pious life. But the religiousness of these sincere believers had nothing in common with the established system of devotion. It is a myth that the political and social institutions of the ages preceding modem individualistic philosophy and modem capitalism were imbued with a genuine Christian spirit. The teachings of the Gospels did not det

Human action is purposeful behavior.

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.

Everybody thinks of economics whether he is aware of it or not. In joining a political party or in casting his ballot, the citizen implicitly takes a stand upon essential economic theories.

The role played by man in production always consists solely in combining his personal forces with the forces of Nature in such a way that the cooperation leads to some particular desired arrangement of material. No human act of production amounts to more than altering the position of things in space and leaving the rest to Nature.

Spontaneous actions of individuals, aiming at nothing else than at the improvement of their own state of satisfaction, undermined the prestige of the coercive status system step by step.

For hundreds, even thousands, of years, people completely failed to see that variations in the objective exchange-value of money could be induced by monetary factors. They tried to explain all variations of prices exclusively from the commodity side.

In dealing with judgments of value we refer to facts, that is, to the way in which people really choose ultimate ends. While the value judgments of many people are identical, while it is permissible to speak of certain almost universally accepted valuations, it would be manifestly contrary to fact to deny that there is diversity in passing judgments of value.
From time immemorial an immense majority of men have agreed in preferring the effects produced by peaceful cooperation - at least among a limited number of people - to the effects of a hypothetical isolation of each individual and a hypothetical war of ali against ali. To the state of nature they have preferred the state of civilization, for they sought the closest possible attainment of certain ends - the preservation of life and health - which, as they rightly thought, require social cooperation. But it is a fact that there have been and are also men who have rejected these values and consequently preferred the solitary life of an anchorite to life within society.
It is thus obvious that any scientific treatment of the problems of value judgments must take into full account the fact that these judgments are subjective and changing. Science seeks to know what is, and to formulate
existential propositions describing the universe as it is. With regard to judgments of value it cannot assert more than that they are uttered by some people, and inquire what the effects of action guided by them must be. Any step

There are two parts to the problem of measuring the objective exchange-value of money. First we have to obtain numerical demonstration of the fact of variations in the objective exchange-value of money; then the question must be decided whether it is possible to make a quantitative examination of the causes of particular price movements, with special reference to the question whether it would be possible to produce.
So far as the first-named problem is concerned, it is self-evident that its solution must assume the existence of a good, or complex of goods, of unchanging objective exchange-value. The fact that such goods are inconceivable needs no further elucidation.
If the one is proved to be soluble, then so also is the other; and proof of the insolubility of the one is also proof of the insolubility of the other.

The philosophers who in their treatises of ethics assigned supreme value to justice and applied the yardstick of justice to ali social institutions were not guilty of such deceit. They did not support selfish group concerns by declaring them alone just, fair, and good, and smear ali dissenters by depicting them as the apologists of unfair causes. They were Platonists who believed that a perennial idea of absolute justice exists and that it is the duty of man to organize ali human institutions in conformity with this ideal. Cognition of justice is imparted to man by an inner voice, i.e., by intuition. The champions of this doctrine did not ask what the consequences of realizing the schemes they called just would be. They silently assumed either that these consequences will be beneficiai or that mankind is bound to put up even with very painful consequences of justice. Still less did these teachers of morality pay attention to the fact that people can and really do disagree with regard to the interpretation of the inner voice and that no method of peacefully settling such disagreements can be found.
Ali these ethical doctrines have failed to comprehend that there is, outside of social bonds and preceding, temporally or logically, the existence of society, nothing to which the epithet "just" can be given. A hypothetical isolated individual must under the pressure of biological competition look upon ali other people as deadly foes. His only concern is to preserve his own lif

The riches of the rich are not the cause of the poverty of anybody; the process that makes some people rich is, on the contrary, the corollary of the process that improves many peoples want satisfaction. The entrepreneurs, the capitalists and the technologists prosper as far as they succeed in best supplying the consumers.

Resentment is at work when one so hates somebody for his more favorable circumstances that one is prepared to bear heavy losses if only the hated one might also come to harm. Many of those who attack capitalism know very well that their situation under any other economic system will be less favorable.

What economic calculation requires is a monetary system whose functioning is not sabotaged by government interference.

The consumers are merciless. They never buy in order to benefit a less efficient producer and to protect him against the consequences of his failure to manage better. They want to be served as well as possible. And the working of the capitalist system forces the entrepreneur to obey the orders issued by the consumers.

If the members of parliament no longer consider themselves mandatories of the taxpayers but deputies of those receiving salaries, wages, subsidies, doles, and other benefits from the treasury, democracy is done for.

The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inflicted by governments.

The illusiveness of this concept of national income is to be seen in its dependence on changes in the purchasing power of the monetary unit. The more inflation progresses, the higher rises the national income.

All attempts to coerce the living will of human beings into the service of something they do not want must fail

Government is a guarantor of liberty and is compatible with liberty only if its range is adequately restricted to the preservation of what is called economic freedom.

There were nowhere more docile disciples of Lenin, Trotsky and Stalin than the Nazis were.

Classical liberalism has been reproached with being too obstinate and not ready enough to compromise. It was because of its inflexibility that it was defeated in its struggle with the nascent anticapitalist parties of all kinds. If it had realized, as these other parties did, the importance of compromise and concession to popular slogans in winning the favor of the masses, it would have been able to preserve at least some of its influence. But it has never bothered to build for itself a party organization and a party machine as the anticapitalist parties have done. It has never attached any importance to political tactics in electoral campaigns and parliamentary proceedings. It has never gone in for scheming opportunism or political bargaining.
This unyielding doctrinairism necessarily brought about the decline of liberalism.
The factual assertions contained in these statements are entirely in accordance with the truth, but to believe that they constitute a reproach against liberalism is to reveal a complete misunderstanding of its essential spirit. The ultimate and most profound of the fundamental insights of liberal thought is that it is ideas that constitute the foundation on which the whole edifice of human social cooperation is Liberalism: A Socio-Economic Exposition
constructed and sustained and that a lasting social structure cannot be built on the basis of false and mistaken ideas. Nothing can serve as a substitute for an ideology that enhances human li

The fundamental law of the market is: the customer is always right.

Free markets. What does this system mean? The answer is simple: it is the market economy, it is the system in which the cooperation of individuals in the social division of labor is achieved by the market.

Capitalism and socialism are two distinct patterns of social organization. Private control of the means of production and public control are contradictory notions and not merely contrary notions. There is no such thing as a mixed economy, a system that would stand midway between capitalism and socialism.

Taxing profits is tantamount to taxing success.

Society is only possible on these terms, that the individual finds therein a strengthening of his own ego and his own will.

Local differences in the prices of commodities whose natures are technologically identical are to be explained on the one hand by differences in the cost of preparing them for consumption (expenses of transport, cost of retailing etc.) and on the other hand by the physical and legal obstacles that restrict the mobility of commodities and human beings.

In capitalist enterprise there is no secure income and no security of wealth.

The thesis of etatism that the members of the government and its assistants are more intelligent than the people, and that they know better what is good for the individual than he himself knows, is pure nonsense.

A free press can only exist where there is private control over the means of production

No individual and no nation need fear at any time to have less money than it needs. Government measures designed to regulate the international movement of money in order to ensure that the community shall have the amount it needs, are just as unnecessary and inappropriate as, say, intervention to ensure a sufficiency or corn or iron or the like. This argument dealt the Mercantilist Theory its death-blow.

There are for man only two principles available for a mental grasp of reality, namely, those of teleology and causality. What cannot be brought under either of these categories is absolutely hidden to the human mind. An event not open to an interpretation by one of these two principles is for man inconceivable and mysterious. Change can be conceived as the outcome either of the operation of mechanistic causality or of purposeful behavior; for the human mind there is no third way available.

It is an established fact that alcoholism, cocainism, and morphinism are deadly enemies of life, of health, and of the capacity for work and enjoyment ... But this is far from demonstrating that the authorities must interpose to suppress these vices by commercial prohibitions ... More harmful still than all these pleasures, many will say, is the reading of evil literature.

Shortcomings in the governments' handling of monetary matters and the disastrous consequences of policies aimed at lowering the rate of interest and at encouraging business activities through credit expansion gave birth to the ideas which finally generated the slogan "stabilization." One can explain its emergence and its popular appeal, one can understand it as the fruit of the last hundred and fifty years' history of currency and banking, one can, as it were, plead extenuating circumstances for the error involved. But no such sympathetic appreciation can render its fallacies any more tenable.

The people of the United States are more prosperous ... because their government embarked later than other governments ... upon the policy of obstructing business