Ludwig Heinrich Edler von Mises{{German title|Edler}} ({{IPAc-en|v|ɒ|n|_|ˈ|m|iː|z|ɪ|z}}; {{IPA|de|ˈluːtvɪç fɔn ˈmiːzəs|lang}}; September 29, 1881 – October 10, 1973) was an Austrian-American political economist and philosopher of the Austrian school. Mises wrote and lectured extensively on the social contributions of classical liberalism and the central role of consumers in a market economy.{{Cite web |date=June 7, 2023 |title=Ludwig von Mises |url= https://www.britannica.com/biography/Ludwig-Edler-von-Mises |access-date=June 29, 2023 |website=Encyclopædia Britannica}} He is best known for his work in praxeology, particularly for studies comparing communism and capitalism, as well as for being a defender of classical liberalismHayek, Friedrich A. "Introduction". In Socialism: An Economic and Sociological Analysis, by Ludwig von Mises. London: Jonathan Cape, 1936. in the face of rising illiberalism and authoritarianism throughout much of Europe during the 20th century.

In 1940, Mises emigrated from Austria to the United States to escape the Nazis. On the day German forces entered Vienna, they raided his apartment, confiscating his papers and library, which were believed lost or destroyed until rediscovered decades later in Soviet archives.Richard M. Ebeling (ed.), The Lost Papers of Ludwig von Mises, Liberty Fund, 2000. See also: Richard M. Ebeling, “The Rediscovered Writings of Ludwig von Mises,” The Freeman, vol. 47, no. 2, February 1997. Available via the Mises Institute: https://mises.org/library/rediscovered-writings-ludwig-von-mises At the time, Mises was living in Geneva, Switzerland. However, with the imminent Nazi occupation of France threatening to isolate Switzerland within Axis-controlled territory, he and his wife fled through France—avoiding German patrols—and reached the United States via Spain and Portugal.

Since the mid-20th century, both libertarian and classical liberal movements, as well as the field of economics as a whole have been strongly influenced by Mises's writings.Cowen, Tyler. "Review of Human Action". Journal of Economic Literature 38, no. 4 (2000): 1127-1132. Mises's student Friedrich Hayek viewed Mises as one of the major figures in the revival of classical liberalism in the post-war era. Hayek's work The Transmission of the Ideals of Freedom (1951) pays high tribute to the influence of Mises in the 20th-century libertarian movement.{{cite journal |last1=Hayek |first1=Friedrich A. |title=The Transmission of the Ideals of Economic Freedom |journal=Econ Journal Watch |date=2012 |volume=9 |issue=2 |pages=163–169 |url= https://econjwatch.org/articles/the-transmission-of-the-ideals-of-economic-freedom}} Economist Tyler Cowen lists his writings as "the most important works of the 20th century" and as "among the most important economics articles, ever". Entire schools of thought trace their origins to Mises's early work, including the development of anarcho-capitalist philosophy through Murray RothbardRothbard, Murray N. Man, Economy, and State with Power and Market. Ludwig von Mises Institute, 2004. See Rothbard’s preface crediting Mises’s foundational role. and the contemporary Austrian economics program led by scholars such as Peter Boettke at George Mason University.Boettke, Peter J. “Austrian School of Economics.” In The Elgar Companion to Austrian Economics, edited by Peter Boettke, Edward Elgar, 1994. Also see: Boettke, “Ludwig von Mises and the Austrian School of Economics,” Journal of Economic Perspectives, 1998.

Mises’s most influential work, Human Action: A Treatise on Economics (1949), laid out his comprehensive theory of praxeology—a deductive, a priori method for understanding human decision-making and economic behavior. Rejecting empirical and mathematical modeling, Mises defended classical liberalism and market coordination as products of rational individual action. Beyond his published works, Mises shaped generations of economists through his longstanding private seminar in ViennaBeller, Steven (1989). Vienna and the Jews, 1867–1938: A Cultural History. Cambridge University Press. and later as a professor at New York University. His ideas deeply influenced students such as Friedrich Hayek, Murray Rothbard, and Israel Kirzner, who helped inspire the rise of postwar libertarian institutions in the United States, including the Foundation for Economic Education and the Ludwig von Mises Institute.

Mises received many honors throughout the course of his lifetime—honorary doctorates from Grove City College (1957), New York University (1963), and the University of Freiburg (1964) in Germany. His accomplishments were recognized in 1956 by his alma mater, the University of Vienna, when his doctorate was memorialized on its 50th anniversary and "renewed", a European tradition, and in 1962 by the Austrian government. He was also cited in 1969 as "Distinguished Fellow" by the American Economic Association.Greaves, Bettina Bien. "Preface to the Third Edition". In Liberalism: In the Classical Tradition, by Ludwig von Mises, 3rd ed., Liberty Fund, 1985.

Biography

= Early life =

File:Coat of arms of von Mises.gif of Ludwig von Mises's great-grandfather, Mayer Rachmiel Mises, awarded upon his 1881 ennoblement by Franz Joseph I of Austria]]

Ludwig von Mises was born on September 29, 1881, to Jewish parents in Lemberg, then in the Austro-Hungarian Kingdom of Galicia and Lodomeria.{{cite web |title=Austrian Institute -Ludwig von Mises |url= https://austrian-institute.org/de/autoren/ludwig-von-mises/}} His great-grandfather Meyer Rachmiel Mises had been ennobled a few months before Ludwig's birth, receiving the honorific Edler (indicating a non-landed noble family), and the right to add the nobiliary particle von to his name; his family had been involved in financing and constructing railroads.{{Cite book |last=Hülsmann |first=Jörg |title=Mises: The Last Knight of Liberalism |date=2007 |publisher=Mises Institute |isbn=978-1-61016-389-7 |location=Auburn, Alabama}} His mother Adele (née Landau) was a niece of Joachim Landau, a Liberal Party deputy to the Austrian Parliament.{{cite book |last=Hülsmann |first=Jörg Guido |title=Mises: The Last Knight of Liberalism |url= https://archive.org/details/bub_gb_it9c6z4bw_8C |publisher=Ludwig von Mises Institute |date=2007 |isbn=978-1-933550-18-3}}{{rp|3–9}} His father Arthur von Mises was stationed in Lemberg as a construction engineer with the Czernowitz railway company.

By the age of 12, Mises spoke fluent German, Russian, Polish and French, read Latin and could understand Ukrainian.Erik Ritter von Kuehnelt-Leddihn, [https://mises.org/asc/essays/kuehneltLeddihn.pdf "The Cultural Background of Ludwig von Mises"], The Ludwig von Mises Institute, p. 1 Mises had a younger brother, Richard von Mises, who became a mathematician and a member of the Vienna Circle, and a probability theorist.{{cite encyclopedia |url= https://www.britannica.com/EBchecked/topic/385231/Richard-von-Mises |title=Richard von Mises |encyclopedia=Encyclopædia Britannica |access-date=August 8, 2013}}

Mises was educated at the Akademisches Gymnasium in Vienna from 1892 to 1900, before entering the University of Vienna, where he studied law and the social sciences, initially in preparation for a career as a civil servant.{{cite book |last1=Von Mises |first1=Ludwig |last2=Goddard |first2=Arthur |title=Liberalism: A Socio-Economic Exposition |date=1979 |publisher=Sheed Andrews and McMeel |edition=2 |isbn=978-0-8362-5106-7}}{{Cite book |last=Hülsmann |first=Jörg |title=Mises: The Last Knight of Liberalism |date=2007 |publisher=Ludwig von Mises Institute |isbn=978-1-61016-389-7 |pages=33, 60, 62}} There, he first encountered the works of Carl Menger, whose book Grundsätze der Volkswirtschaftslehre came to influence him significantly. Mises's father died in 1903. Three years later, Mises was awarded his doctorate from the school of law in 1906.{{cite web |url= https://mises.org/page/1468/Biography-of-Ludwig-von-Mises-18811973 |title=Biography of Ludwig von Mises (1881–1973) ('Chronology') |date=August 2007 |publisher=Mises.org |access-date=July 21, 2013}} From 1913 to 1938, Mises was a professor at the university, during which he mentored Friedrich Hayek.

= Life in Europe =

In the years from 1904 to 1914, Mises attended lectures given by Austrian economist Eugen von Böhm-Bawerk.Mises, Ludwig von, The Historical Setting of the Austrian School of Economics, Arlington House, 1969, reprinted by the Ludwig von Mises Institute, 1984, p. 10, Rothbard, Murray, The Essential Ludwig von Mises, 2nd printing, Ludwig von Mises Institute, 1983, p. 30. He graduated in February 1906 (Juris Doctor) and started a career as a civil servant in Austria's financial administration.

After a few months, he left to take a trainee position in a Vienna law firm. During that time, Mises began lecturing on economics and in early 1909 joined the Austrian Chamber of Commerce and Industry, serving as economic advisor to the Austrian government until he left Austria in 1934.Rothbard, Murray, The Essential Ludwig von Mises, Ludwig von Mises Institute, 1988, p. 25. During World War I, Mises served as a front officer in the Austro-Hungarian artillery and as an economic advisor to the War Department.[https://mises.org/library/mises-wartime Mises in Wartime], Mises Institute

Mises was chief economist for the Austrian Chamber of Commerce and was an economic advisor of Engelbert Dollfuss, the austrofascist Austrian Chancellor.{{cite web |url= https://mises.org/library/meaning-mises-papers |title=The Free Market: Meaning of the Mises Papers, The |date=April 1997 |publisher=Mises.org |access-date=November 26, 2009}} Later, Mises was economic advisor to Otto von Habsburg, the Christian democratic politician and claimant to the throne of Austria (which had been legally abolished in 1918 following the Great War).Mises, Margit von, [https://mises.org/sites/default/files/My%20Years%20with%20Ludwig%20von%20Mises_2.pdf My Years with Ludwig von Mises], Arlington House Publishers, 1976; 2nd enlarged ed., Cedar Falls, IA: Center for Futures Education, 1984. {{ISBN|978-0-915513-00-0}}. {{OCLC|11668538}} In 1934, Mises left Austria for Geneva, Switzerland, where he was a professor at the Graduate Institute of International Studies until 1940. Mises was invited to the Colloque Walter Lippmann, organized in Paris in 1938, and was a founding member of the Mont Pelerin Society in 1947.{{cite book |last1=Mirowski |first1=Philip |author1-link=Philip Mirowski |last2=Plehwe |first2=Dieter |date=2009 |title=The Road From Mont Pèlerin: The Making of the Neoliberal Thought Collective |url= https://books.google.com/books?id=GPTaizKUbK0C&pg=PA13 |publisher=Harvard University Press |page=13 |isbn=978-0-674-03318-4}}

While in Switzerland, Mises married Margit Herzfeld Serény, a former actress and widow of Ferdinand Serény. She was the mother of Gitta Sereny.Mises, Margit von. My Years with Ludwig von Mises. New Rochelle, NY: Arlington House Publishers, 1976. {{ISBN?}}

= World War I =

During World War I, Ludwig von Mises was drafted by the Austrian government, despite being ideologically and morally opposed to the war. Like many who served in the front lines,{{Cite web |last=Christensen |first=Tricia |date=2024 |title=Why are Veterans Reluctant to Discuss Their War Experiences? |url= https://www.historicalindex.org/why-are-veterans-reluctant-to-discuss-their-war-experiences.htm}} he rarely spoke about his personal experiences, and even his Memoirs (1940) omits a detailed account of his time in the military. However, he briefly alluded to the harsh realities of war in his seminal work, Human Action (1949):Mises, Ludwig von (1966), Human Action: A Treatise on Economics, The Scholars edition. (Auburn, Alabama. Ludwig von Mises Institute), Pp. 823.

{{blockquote|Nothing is fair in war. It is not just that God is for the big battalions and that those who are better equipped defeat poorly equipped adversaries. It is not just that those in the front line shed their life-blood in obscurity, while the commanders, comfortably located in headquarters hundreds of miles behind the trenches, gain glory and fame. It is not just that John is killed and Mark crippled for the rest of his life, while Paul returns home safe and sound and enjoys all the privileges accorded to veterans.

It may be admitted that it is not "fair" that war enhances the profits of those entrepreneurs who contribute best to the equipment of the fighting forces. But it would be foolish to deny that the profit system produces the best weapons.}}

In Memoirs (1940), the only thing he had to say about the war was how it affected his work:Mises, Ludwig von. (2009) Memoirs. Translated by Arlene Oost-Zinner. Auburn, AL: Ludwig von Mises Institute, Pp. 52.

{{blockquote|By the end of 1917, I was no longer at the front, but worked in Vienna in the economics division of the Department of War. I wrote only two small essays during those years.}}

The same chapter concludes with how he coped with his involuntary servitude fighting as the aggressor in a war he wanted nothing to do with, and includes a quote from Virgil that would go on to become the slogan of the Mises Institute in Alabama:Mises, Ludwig von. (2009) Memoirs. Translated by Arlene Oost-Zinner. Auburn, AL: Ludwig von Mises Institute, Pp. 55.

{{blockquote|How one carries on in the face of unavoidable catastrophe is a matter of temperament. In high school, as was custom, I had chosen a verse by Virgil to be my motto: {{lang|la|Tu ne cede malis sed contra audentior ito}} ('Do not give in to evil, but proceed ever more boldly against it'). I recalled these words during the darkest hours of the war.}}

= Work in the United States =

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In 1940, Mises and his wife left Austria, by then a territory of Nazi Germany, and emigrated to New York City in the United States.{{rp|xi}} He had come to the United States under a grant by the Rockefeller Foundation. Like many other classical liberal scholars who fled to the United States, he received support from the William Volker Fund to obtain a position in American universities.{{cite journal |last=Kitch |first=Edmund W. |title=The Fire of Truth: A Remembrance of Law and Economics at Chicago, 1932–1970 |journal=Journal of Law and Economics |date=April 1983 |volume=26 |issue=1 |pages=163–234 |doi=10.1086/467030 |s2cid=153525815}} Mises became a visiting professor at New York University and held this position from 1945 until his retirement in 1969, though he was not salaried by the university. Businessman and libertarian commentator Lawrence Fertig, a member of the New York University Board of Trustees, funded Mises and his work.Moss, Laurence S. "Introduction". The Economics of Ludwig von Mises: Toward a Critical Reappraisal. Sheed and Ward, 1976.North, Gary. "Mises on Money". LewRockwell.com. January 21, 2002 [http://archive.lewrockwell.com/north/north83.html]

For part of this period, Mises studied currency issues for the Pan-Europa movement, which was led by Richard von Coudenhove-Kalergi, a fellow New York University faculty member and Austrian exile.{{cite book |last=von Coudenhove-Kalergi |first=Richard Nikolaus |author-link=Richard von Coudenhove-Kalergi |title=An idea conquers the world |publisher=Hutchinson |location=London |date=1953 |page=247}} In 1947, Mises became one of the founding members of the Mont Pelerin Society.

In 1962, Mises received the Austrian Decoration for Science and Art for political economy[http://www.kurienwissenschaftundkunst.at/archiv/archiv-mitglieder-wissenschaft/ Kurien Society of Science and Art website] {{Webarchive|url= https://web.archive.org/web/20201030034628/http://www.kurienwissenschaftundkunst.at/archiv/archiv-mitglieder-wissenschaft |date=October 30, 2020 }}, Listing of recipients of the Austrian Decoration for Science and Art; [https://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&eotf=1&u=http%3A%2F%2Fwww.kurienwissenschaftundkunst.at%2Farchiv%2Farchiv-mitglieder-wissenschaft%2F Google Translated page], accessed June 5, 2013. at the Austrian Embassy in Washington, D.C.{{rp|1034}}

Mises retired from teaching at the age of 87Rothbard, Murray, Ludwig von Mises: Scholar, Creator, Hero, the Ludwig von Mises Institute, 1988, p. 61. and died on October 10, 1973, at age 92. He is buried at Ferncliff Cemetery in Hartsdale, New York. Grove City College houses the 20,000-page archive of Mises papers and unpublished works.[http://www2.gcc.edu/dept/econ/ASSC/ Austrian Student Scholars Conference Announcement] {{Webarchive|url= https://web.archive.org/web/20130802103650/http://www2.gcc.edu/dept/econ/ASSC/ |date=August 2, 2013 }}, Grove City College website, 2013, accessed June 8, 2013. The personal library of Mises was given to Hillsdale College as bequeathed in his will.{{Cite web |url= http://lib.hillsdale.edu/about/collections |title=About – Collections – Mossey Library |website=lib.hillsdale.edu |access-date=July 26, 2016}}http://www.iea.org.uk/sites/default/files/publications/files/upldbook514pdf.pdf {{Bare URL PDF|date=March 2022}}

At one time, Mises praised the work of writer Ayn Rand, and she generally looked on his work with favor, but the two had a volatile relationship, with strong disagreements for example over the moral basis of capitalism.{{cite book |last=Burns |first=Jennifer |title=Goddess of the Market: Ayn Rand and the American Right |url= https://books.google.com/books?id=z6e9X6JxHpMC&pg=PA106 |date=2009 |publisher=Oxford University Press |pages=106, 141 |isbn=978-0-19-974089-5}} The two thinkers' disagreement reached a critical point during a dinner conversation where Mises reportedly lost his temper and called Rand a "silly little Jewish girl" after a heated argument, despite himself being Jewish.{{Cite web |last=Boettke |first=Peter |date=2016 |title=Mises, Rand, and the 20th Century |url= https://www.mercatus.org/hayekprogram/research/working-papers/mises-rand-and-20th-century}}

= Creation of the Mises Institute =

As a result of the economic works of Ludwig Von Mises, the Mises Institute was founded in 1982 by Lew Rockwell, Burton Blumert, and Murray Rothbard, following a split between the Cato Institute and Rothbard, who had been one of the founders of the Cato Institute.{{primary source inline|date=August 2024}} It was funded by Ron Paul.{{Cite web |date= |title=The Story of the Mises Institute |url= https://mises.org/story-mises-institute}}

The Mises Institute offers thousands of free books written by Ludwig Von Mises, Murray Rothbard, Hans-Hermann Hoppe, and other prominent economists in e-book and audiobook format.{{cite web |title=Books & Library |url= https://mises.org/books-library |url-status=dead |archive-url= https://web.archive.org/web/20220124152738/https://mises.org/books-library |archive-date=January 24, 2022 |access-date=January 24, 2022 |website=Mises Institute}} The Mises Institute also offers a series of summer seminars.{{Cite web |title=Summer Seminar Series |date=July 20, 2017 |url= https://mises.org/events/summer-seminar-series}}

Contributions and influence in economics

Ludwig von Mises made significant contributions to the field of economicsMoss, Laurence S., editor. The Economics of Ludwig von Mises: Toward a Critical Reappraisal. Kansas City: Sheed and Ward, Inc., 1976. {{ISBN|978-0-8362-0804-7}} initially by seeking to integrate the teachings of Carl Menger and Eugen von Böhm-Bawerk into the classical economic framework of his time.Huerta de Soto, Jesús, editor. The Meaning of Ludwig von Mises: Contributions in Economics, Epistemology, Sociology, and Political Philosophy. Auburn, AL: Ludwig von Mises Institute, 2009. {{ISBN|978-1-933550-17-7}} He recognized the need to reformulate economic epistemology, particularly in response to the challenges introduced by the subjective value theory and the subjectivity of individual agents. Later, Mises made groundbreaking contributions to economic theory, particularly in advancing the Austrian School of Economics by developing his own transformative ideas, including praxeology—a systematic framework for understanding human action—and the economic calculation problem,Lavoie, Don. Rivalry and Central Planning: The Socialist Calculation Debate Reconsidered. Cambridge University Press, 1985. which challenged the feasibility of socialism.Friedrich Hayek, "The Use of Knowledge in Society", American Economic Review, 1945Friedrich A. Hayek, The Fatal Conceit: The Errors of Socialism. University of Chicago Press, 1988.

In 1920, Mises introduced the Economic Calculation Problem as a critique of socialist states which are based on planned economies and renunciations of the price mechanism.{{cite book |last=Von Mises |first=Ludwig |url= http://library.freecapitalists.org/books/Ludwig%20von%20Mises/Economic%20Calculation%20in%20the%20Socialist%20Commonwealth.pdf |title=Economic calculation in the Socialist Commonwealth |publisher=Ludwig von Mises Institute |date=1990 |access-date=September 8, 2008 |archive-url= https://web.archive.org/web/20141216200523/http://library.freecapitalists.org/books/Ludwig%20von%20Mises/Economic%20Calculation%20in%20the%20Socialist%20Commonwealth.pdf |archive-date=December 16, 2014 |url-status=dead}} In his first article "Economic Calculation in the Socialist Commonwealth", Mises describes the nature of the price system under capitalism and describes how individual subjective values are translated into the objective information necessary for rational allocation of resources in society. Mises argued the absence of market pricing results in inefficiencies within the economic system because central planners are deprived of the crucial information regarding opportunity costs needed to make informed decisions about resource allocation. He wrote that "rational economic activity is impossible in a socialist commonwealth". Mises developed his critique of socialism more completely in his 1922 book Socialism: An Economic and Sociological Analysis, arguing that the market price system is an expression of praxeology and cannot be replicated by any form of bureaucracy.Mises, Ludwig von. Bureaucracy. New Haven, CT: Yale University Press, 1944.

Throughout his lifeMises, Ludwig von (1922) Socialism: An Economic and Sociological Analysis. Translated by J. Kahane. New edition, enlarged with an Epilogue. New Haven: Yale University Press, 1951. Pp. 117. Mises argued that only a free market system, where individuals are free to pursue their own interests, can efficiently allocate resources and maximize social welfare.Johansson, Per-Olov. An Introduction to Modern Welfare Economics. Cambridge: Cambridge University Press, 1991. {{ISBN|978-0-521-35536-7}} He believed that laissez-faire capitalism is the only system that allows individuals to express their intersubjective appraisals of goods and services in an open market, thereby creating a nexus of price signals based on the relative exchange ratios between goods. These price signals are essential for coordinating the inherently incomparableSowell, Thomas. Economic Facts and Fallacies. 2nd ed. New York: Basic Books, 2011. {{ISBN|978-0-465-01958-4}} subjective valuations that different individuals place on the same external objects.Bohm, Peter. Social Efficiency: A Concise Introduction to Welfare Economics. London: Macmillan, 1973. {{ISBN|978-0-333-13416-5}} In a market, these subjective rankings are transformed into numerical values—prices—that can be objectively compared.Mankiw, N. Gregory. Principles of Microeconomics. 8th ed. Boston: Cengage Learning, 2018. {{ISBN?}} This mechanism enables the continuous alignment of the open-ended coordination problem posed by millions of disparate individual preferences.Feldman, Allan M., and Serrano, Roberto. Welfare Economics and Social Choice Theory. 2nd ed. New York: Springer, 2006. {{ISBN|978-0-387-25905-2}}O'Driscoll Jr., Gerald P. Economics as a Coordination Problem: The Contributions of Friedrich A. Hayek. Kansas City: Sheed Andrews and McMeel, Inc., 1977. {{ISBN|978-0-8362-0815-3}} Unlike a centrally planned system, which assumes a final equilibrium which is to be planned towards,Shmelev, Nikolai, and Popov, Vladimir. The Turning Point: Revitalizing the Soviet Economy. 1st ed. New York: Doubleday, 1989. {{ISBN|0-385-24654-4}} the free market remains in constant flux,Sowell, Thomas. Basic Economics: A Common Sense Guide to the Economy. 5th ed. New York: Basic Books, 2015. {{ISBN|978-0-465-05661-9}} continuously adjusting to changes in preferences and conditions.Rothbard, Murray N. Man, Economy, and State: A Treatise on Economic Principles. Princeton, NJ: D. Van Nostrand, 1962. Mises's praxeological approach and reformulation of the economic problem has had a profound impact on the Austrian school of economics.Boettke, Peter J. F. A. Hayek: Economics, Political Economy and Social Philosophy. London: Palgrave Macmillan, 2018. {{ISBN|978-1-137-41160-0}}Sowell, Thomas. Intellectuals and Society. 2nd ed. New York: Basic Books, 2012. {{ISBN?}}.

Mises revived and expanded the term catallactics, which originally came from the Greek word {{lang|grc-Latn|katallasso}}, meaning 'to exchange' or 'to reconcile'.Hayek, F. A. Law, Legislation and Liberty: A New Statement of the Liberal Principles of Justice and Political Economy. University of Chicago Press, 1973. Catallaxy explains prices as they are, rather than as they "should" be.Buchanan, James M. Cost and Choice: An Inquiry in Economic Theory. University of Chicago Press, 1969. By adopting a value-neutral stance, it does not judge whether a price is "too high" or "too low"; instead, it seeks to explain why a price exists at a particular level based on the interplay of supply and demand. This framework considers both the material conditions influencing the availability of goods and services (supply) and the subjective preferences, values, and willingness to pay of individuals (demand). Prices emerge where these factors align between buyers and sellers, reflecting the conditions for exchange at a specific time and place.Boettke, Peter J. Living Economics: Yesterday, Today, and Tomorrow. Independent Institute, 2012.

By focusing on prices as they are, catallactics aimed to avoid the pitfalls of culturally or ideologically biased assumptions, where economic policies are designed around idealized notions of what "ought" to happen, (e.g. some works that aim to prescribe the economy, not just describe it:Amartya Sen, Development as Freedom. Knopf, 1999.Keynes, John Maynard. The General Theory of Employment, Interest, and Money. Macmillan, 1936.Marx, Karl. Das Kapital: A Critique of Political Economy, Volume I. Translated by Samuel Moore and Edward Aveling, edited by Friedrich Engels, Progress Publishers, 1867.Robinson, Joan. Economic Philosophy. Penguin Books, 1962.Piketty, Thomas. Capital in the Twenty-First Century.Mill, John Stuart. Principles of Political Economy with Some of Their Applications to Social Philosophy. John W. Parker, 1848.) which Mises argued carried them outside of the realm of the descriptive (or {{lang|de|wertfrei}}) sciences.Weber, Max. "'Objectivity' in Social Science and Social Policy". In The Methodology of the Social Sciences. Translated and edited by Edward A. Shils and Henry A. Finch, Free Press, 1949.Human Action (Chapter 2, "The Epistemological Problems of the Sciences of Human Action")

{{blockquote|Economics is not about what ought to be, but about what is. It describes and analyzes the reality of human action, without imposing any personal valuations or ethical imperatives.}}

For Mises, introducing normative judgments—such as declaring certain prices "fair" or "unfair"—transforms economics from a descriptive science into an ideological discourse.

{{blockquote|The ultimate decisions, the valuations and the choosing of ends, are beyond the scope of any science.}}

This approach redefined economics not as the study of wealth or resources in the abstract, but as the analysis of voluntary exchanges of these resources within the division of labor.Vaughn, Karen I. Austrian Economics in America: The Migration of a Tradition. Cambridge University Press, 1994. His work on catallactics became a cornerstone of Austrian economics, influencing subsequent theories on entrepreneurship,Kirzner, Israel M. Competition and Entrepreneurship. University of Chicago Press, 1973. knowledge, and the limits of government intervention.Lavoie, Don. National Economic Planning: What is Left? Ballinger Publishing Company, 1985.

Mises was also a forerunner in the movement to unite microeconomics and macroeconomics, arguing that macroeconomic phenomena have microeconomic foundationsG. C. Harcourt, editor. The Microeconomic Foundations of Macroeconomics. London: Palgrave Macmillan, 1977. {{ISBN|978-0-333-21536-4}}.—nearly 50 years before this perspective was widely adopted by mainstream economics.

In his magnum opus Human Action (1949), Mises established praxeology as the foundational methodology for the social sciences,Hayek, Friedrich A. The Counter-Revolution of Science: Studies on the Abuse of Reason. Glencoe, IL: The Free Press, 1952. offering a systematic approach to understanding human behavior and decision-making. This work laid the groundwork for a comprehensive economic theoryHayek, Friedrich A. "Ludwig von Mises: A Last Knight of Liberalism". Reason, October 1973. that accounted for the subjective nature of value and the complexity of individual choices, marking a significant departure from the objective models of classical economics.Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. London: W. Strahan and T. Cadell, 1776. Book I, Chapter V.Mill, John Stuart. Principles of Political Economy. John W. Parker, 1848.. Mises used praxeology to further critique socialism, arguing that it is fundamentally flawed because it treats economics as a solvable, static problemHayek, Friedrich A. The Pure Theory of Capital. University of Chicago Press, 1941. akin to mathematical or engineering challenges. Instead, he argued, economics involves an open-ended coordination process that aims to align the diverse and equally validHayek, Friedrich A. Individualism and Economic Order. University of Chicago Press, 1948. subjective appraisals of millions of individuals. However, while praxeology has been influential within the Austrian school of economics, it is not widely adopted in contemporary economic practice, which predominantly relies on empirical and mathematical methods to analyze and predict economic phenomena. Most mainstream economists view praxeology as lacking empirical validation and testability, thereby limiting its acceptance as a scientific approach within the broader discipline.

In his 1956 book The Anti-Capitalistic Mentality, Ludwig von Mises explored the roots of intellectual opposition to the free market, particularly in American society.Mises, Ludwig von. The Anti-Capitalistic Mentality. Van Nostrand, 1956. Mises argued that some people resent the burden of freedom, preferring the perceived security of a caste-like system where individual responsibility for one's position in the division of labor is minimized. He believed that people who are content in their position, i.e., who have forgone upward social mobility, may yearn for capitalism to be a rigid caste system, allowing them to blame "the system" or "society" for their low wages or unfulfilled ambitions. Mises also contended that throughout most of human history, wealth was often accumulated through exploitation, war, and conquest.Ferguson, Niall. The Ascent of Money: A Financial History of the World. Penguin Books, 2008. {{ISBN|978-1-59420-192-9}}. As a result, our cognitive biases have not yet adapted to the modern world of rule of law and peaceful exchange, leading to a subconscious suspicion of wealth as being illegitimately obtained. This suspicion persists even though, in a free market, individuals can accumulate wealth through mutually beneficial exchange and technological innovation. Mises also criticized the romanticization of artisan goods, arguing that mass production, driven by consumer demand, has democratized access to goods that in previous centuries were available only to a small aristocratic few.Caldwell, Bruce, editor. Mont Pèlerin 1947: Transcripts of the Founding Meeting of the Mont Pèlerin Society. Stanford, CA: Hoover Institution Press, 2022. {{ISBN|978-0-8179-2484-3}} He suggested that critics who lament the availability of inexpensive, mass-produced goods fail to appreciate the benefits these goods bring, as they enable a higher standard of living for the general population who may not be able to afford handcrafted goods.

Friends and students of Mises in Europe included Wilhelm Röpke and Alfred Müller-Armack (advisors to German chancellor Ludwig Erhard), Jacques Rueff (monetary advisor to Charles de Gaulle), Gottfried Haberler (later a professor at Harvard), Lionel, Lord Robbins (of the London School of Economics), Italian President Luigi Einaudi, and Leonid Hurwicz, recipient of the 2007 Nobel Memorial Prize in Economic Sciences.Rothbard, Murray, Ludwig von Mises: Scholar, Creator, Hero, the Ludwig von Mises Institute, 1988, p. 67. Economist and political theorist Friedrich Hayek first came to know Mises while working as his subordinate at a government office dealing with Austria's post-World War I debt. While toasting Mises at a party in 1956, Hayek said: "I came to know him as one of the best educated and informed men I have ever known".{{rp|219–220}} Mises's seminars in Vienna fostered lively discussion among established economists there. The meetings were also visited by other important economists who happened to be traveling through Vienna.

At his New York University seminar and at informal meetings at his apartment, Mises attracted college and high school students who had heard of his European reputation. They listened while he gave carefully prepared lectures from notes.{{cite book |last=Vaughn |first=Karen I |title=Austrian Economics in America |date=1998 |publisher=Cambridge University Press |url= https://books.google.com/books?id=zQx7fHjtOIUC&pg=PA66 |isbn=978-0-521-63765-7}} pp. 66–67.Reisman, George, Capitalism: a Treatise on Economics, "Introduction", Jameson Books, 1996; and Mises, Margit von, My Years with Ludwig von Mises, 2nd enlarged edit., Center for Future Education, 1984, pp. 136–137.On Mises's influence, see Rothbard, Murray, The Essential Ludwig von Mises, 2nd printing, the Ludwig von Mises Institute, 1983; on Eastman's conversion "from Marx to Mises", see Diggins, John P., Up From Communism Harper & Row, 1975, pp. 201–233; on Mises's students and seminar attendees, see Mises, Margit von, My Years with Ludwig von Mises, Arlington House, 1976, 2nd enlarged edit., Center for Future Education, 1984.

Ludwig von Mises acknowledged that, by the time of his writing, many core concepts from the Austrian school of economics had been integrated into mainstream economic thought.Mises, Ludwig von, The Historical Setting of the Austrian School of Economics, Arlington House, 1969, reprinted by the Ludwig von Mises Institute, 1984, p. 62 He noted that the distinctions between the Austrian school and other economic traditions had blurred, making the label "Austrian" more of a historical reference than a marker of a distinct, contemporary doctrine.Hayek, Friedrich A. The Collected Works of F.A. Hayek. Various editors. University of Chicago Press, various volumes. This integration occurred as concepts like marginal utility, opportunity cost, and the importance of subjective value became widely accepted among economists.Cowen, Tyler, and Tabarrok, Alex. Modern Principles of Economics. 6th ed. New York: Macmillan Learning, 2024. {{ISBN?}}.

Philosophical views

Ludwig von Mises was a prominent advocate of methodological individualism, a principle that asserts all social phenomena result from the actions and decisions of individuals.Ferguson, William D. The Political Economy of Collective Action, Inequality, and Development. Stanford, CA: Stanford University Press, 2020. {{ISBN|978-1-5036-1092-1}} He believed that only individuals act, and thus, collective entities such as nations, classes, or races do not possess independent agency.Olson, Mancur. The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge, MA: Harvard University Press, 1965. {{ISBN|978-0-674-53751-4}}. This perspective formed the basis of his economic and social theories, rejecting any form of collectivism that attributed agency to groups rather than to individuals.Mises, Ludwig von. Theory and History: An Interpretation of Social and Economic Evolution. New Haven: Yale University Press, 1957, pp. 44-47.

His rejection of collectivism led him to be a vocal critic of what he termed "polylogism;" the idea that different groups of people have fundamentally different ways of thinking and thus different logics.Mises, Ludwig von. Theory and History: An Interpretation of Social and Economic Evolution. New Haven: Yale University Press, 1957, pp. 119-121. He rejected the notion that there could be distinct sciences or truths based on race, class, or nationality, such as "Jewish science" or "German science".Gimbel, Steven. Einstein's Jewish Science: Physics at the Intersection of Politics and Religion. Baltimore: Johns Hopkins University Press, 2013. Mises believed in the universality of logic and reason, asserting that the principles of economics and science are objective and apply universally, regardless of the cultural or ethnic background of the individuals studying them.Mises, Ludwig von. Human Action: A Treatise on Economics. 3rd rev. ed. Chicago: Henry Regnery Company, 1966.

Ludwig von Mises is creditedHayek, Friedrich A. Studies in Philosophy, Politics and Economics. University of Chicago Press, 1967. with transforming praxeology into a comprehensive framework for understanding economics and human behavior, making it central to the Austrian school of economics. He provided it with a clear definition and methodology, focusing on the logical structure of human action and choice. Thus, while the term existed before Mises, he is largely responsible for its current understanding and significance in economic theory. Mises argued that economics is a branch of praxeology, which studies the implications of the fact that individuals act purposefully.Mises, Ludwig von. Human Action: A Treatise on Economics. Scholar's Edition, Ludwig von Mises Institute, 1998. Pp. 11-13. Mises maintained that economic laws are derived from the self-evident axiom that humans engage in purposeful behavior to achieve desired ends.Linsbichler, Alexander. Was Ludwig von Mises a Conventionalist? A New Analysis of the Epistemology of the Austrian School of Economics. Vienna: Springer, 2017. {{ISBN?}}.Mises Institute. "Rothbard's Account of the Action Axiom: A Neo-Aristotelian-Thomistic Defense". The Quarterly Journal of Austrian Economics. Auburn, AL: Mises Institute, 2023.Facchini, François. "Apriorism, Introspection, and the Axiom of Action: A Realist Solution". The Quarterly Journal of Austrian Economics 10, no. 3 (2007): 234-249. This approach led him to oppose empirical and statistical methods as primary tools in economic theory, arguing that these could not establish economic laws due to the uniqueness of historical events.Mises, Ludwig von. Human Action: A Treatise on Economics. Scholar's Edition, Ludwig von Mises Institute, 1998. pp. 30-36.

In defense of his teleological understanding of human action, he highlighted the difference in using physics to study inanimate objects, and its application to the study of an introspective being which reflects upon and changes its reactions to receiving the same stimulus twice:Mises, Ludwig von. Epistemological Problems of Economics. Translated by George Reisman. 3rd ed. Auburn, AL: Ludwig von Mises Institute, 2003. Preface to the English-language edition, p. lxvi. {{ISBN|0-945466-36-6}}.

{{blockquote|The objects of the natural sciences react to stimuli according to regular patterns. No such regularity, as far as man can see, determines the reaction of man to various stimuli. Ideas are frequently, but not always, the reaction of an individual to a stimulation provided by his natural environment. But even such reactions are not uniform. Different individuals, and the same individual at various periods of his life, react to the same stimulus in a different way. As there is no discernible regularity in the emergence and concatenation of ideas and judgments of value, and therefore also not in the succession and concatenation of human acts, the role that experience plays in the study of human action is radically different from that which it plays in the natural sciences.}}

He would eventually go into enormous detail defending this distinction in his work Epistemological Problems of Economics (1933), Theory and History (1957), and again in The Ultimate Foundation of Economic Science (1962) which included further explication such as:Mises, Ludwig von (1962). The Ultimate Foundation of Economic Science: An Essay on Method (Princeton: D. Van Nostrand), p. 79.

{{blockquote|Man alone has the faculty to build a purpose and to aim at its realization. Stones are moved by an impulse from outside. Animals, in their behavior, follow the impulses of their senses and appetites. Man is the only being who can control his impulses and passions, who can suppress a natural inclination and act contrary to it.}}

This perspective placed him in contrast with the positivist approach, which emphasizes empirical data and observation as the foundation of scientific knowledge.Angrist, Joshua D., and Jörn-Steffen Pischke. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton University Press, 2009 This rift in epistemology has led some to argueRothbard, Murray N. (2000), Egalitarianism as a Revolt Against Nature and Other Essays, Auburn, AL: Ludwig von Mises Institute. that Mises attempted to usher in a paradigm shift in the science of economics—but this is not the direction the field as a whole has since gone.Berndt, Ernst R. The Practice of Econometrics: Classic and Contemporary. Addison-Wesley, 1991.Imbens, Guido W., and Donald B. Rubin. Causal Inference for Statistics, Social, and Biomedical Sciences: An Introduction. Cambridge University Press, 2015.Mankiw, N. Gregory. Principles of Economics. 8th ed., Cengage Learning, 2021.Heyne, Paul, Peter Boettke, and David Prychitko. The Economic Way of Thinking. 13th ed., Pearson, 2014. Because of this, most academics within the economics community implicitly consider the work which comes out of the Mises Institute and other followers of Mises, to simply not be economics.Gorz, André. Critique of Economic Reason. Verso, 1989. Mises's followers operate under a different paradigm and follow an opposed rule set to those operating under positivist economics.Caldwell, Bruce, editor. Austrian Economics: Tensions and New Directions. Kluwer Academic Publishers, 1990. His objections can be seen as an early precursor to more modern critiques such as the famous Lucas critique.Lucas, Robert E., Jr. "Econometric Policy Evaluation: A Critique". In The Phillips Curve and Labor Markets, edited by Karl Brunner and Allan H. Meltzer, 19–46. Carnegie-Rochester Conference Series on Public Policy, Vol. 1. Amsterdam: North-Holland, 1976. {{ISBN?}}.

Political views

Ludwig von Mises was a steadfast advocate of liberalism, particularly classical liberalism. He believed that while Marx provided a powerful critique of capitalism, he failed to offer a constructive vision of a socialist society that could be practically implemented.Megill, Allan. Karl Marx: The Burden of Reason (Why Marx Rejected Politics and the Market). Lanham, MD: Rowman & Littlefield Publishers, 2002. {{ISBN|978-0-7425-1587-2}}Del Águila Marchena, Levy. Communism, Political Power and Personal Freedom in Marx. Palgrave Macmillan, 2019. {{ISBN|978-3-030-19252-3}} To learn from this mistake, after publishing his lengthy critique of socialism, Theory and History: An Interpretation of Social and Economic Evolution,{{citation needed|date=August 2024}} in his next book, Liberalism (1927), Mises articulated a positive vision of free society rooted in individual liberty, private property, free markets, and limited government coercion. He argued that these principles are essential for creating a peaceful and prosperous society.

= Key aspects of Mises's defense of liberalism =

Mises advocated for economic non-interventionism{{Cite web |date=March 16, 2005 |title=Why Intervention Persists |url= https://mises.org/library/why-intervention-persists}} and was a staunch anti-imperialist.{{Cite web |date=June 24, 2013 |title=The Anti-Imperialism of Mises |url= https://mises.org/library/anti-imperialism-mises}} He viewed the Great War as a watershed moment in human history, arguing that it marked a significant departure from previous conflicts due to the advanced technology employed. His experience in the first World War led to a lifelong obsession of finding a workable doctrine of peace among nations, which at the same time would not ask any individual nation to give up their own self interest. Regarding the birth of total war, Mises wrote:{{Cite web |date=April 6, 2017 |title=Ludwig von Mises on World War I | Ludwig von Mises |url= https://fee.org/articles/ludwig-von-mises-on-world-war-i/}}

{{blockquote|War has become more fearful and destructive than ever before because it is now waged with all the means of the highly developed technique that the free economy has created. Bourgeois civilization has built railroads and electric power plants, has invented explosives and airplanes, in order to create wealth. Imperialism has placed the tools of peace in the service of destruction. With modern means, it would be easy to wipe out humanity at one blow.}}

= Comments about fascism =

Marxists Herbert Marcuse and Perry Anderson as well as German writer Claus-Dieter Krohn accused Mises of writing approvingly of Italian fascism, especially for its suppression of leftist elements, in his 1927 book Liberalism.Ralph Raico, [https://mises.org/journal-libertarian-studies/mises-fascism-democracy-and-other-questions Mises on Fascism, Democracy, and Other Questions], Journal of Libertarian Studies (1996) 12:1 pp. 1–27 In 2009, economist J. Bradford DeLong and sociologist Richard Seymour repeated the accusation.Richard Seymour, [The Meaning of Cameron], (Zero Books, John Hunt, London, 2010), [https://books.google.com/books?id=lCtbIPZbUTwC&pg=PA32 p. 32], {{ISBN|1-84694-456-2}}

Mises, in his 1927 book Liberalism, wrote:Ludwig von Mises, [https://mises.org/liberal/ch1sec10.asp "Liberalism"], Chapter 10, The Argument of Fascism, 1927.

{{blockquote|It cannot be denied that Fascism and similar movements aiming at the establishment of dictatorships are full of the best intentions and that their intervention has, for the moment, saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history. But though its policy has brought salvation for the moment, it is not of the kind which could promise continued success. Fascism was an emergency makeshift. To view it as something more would be a fatal error.}}

Mises biographer Jörg Guido Hülsmann says that critics who suggest that Mises supported fascism are "absurd" as he notes that the full quote describes fascism as dangerous. He notes that Mises said it was a "fatal error" to think that it was more than an "emergency makeshift" against up-and-coming communism and socialism as exemplified by the Bolsheviks in Russia and the surging communists of Germany.{{rp|560}} Hülsmann writes in Mises: The Last Knight of Liberalism that Mises had been a card-carrying member of the Fatherland Front party and that this was "probably mandatory for all employees of public and semi-public organizations".Mises: The Last Knight of Liberalism (2007) p. 677

However, this paragraph is also in keeping with a theme that runs through his work: he consistently refrained from imputing bad intentions to those he disagreed with, regardless of how fascistic or homicidal their policy outcomes were. He took pain to more than once explicitly acknowledge the good intentions of totalitarians and socialists of all walks, such as when he wrote:Mises, Ludwig von (1981). Socialism: An Economic and Sociological Analysis, trans. J. Kahane (Indianapolis: Liberty Fund), p. 499.

{{blockquote|Socialists have full right to be called righteous men. They do not wish to profit personally from their ideology. They seek nothing for themselves. They want to benefit the public. They have nothing but scorn for the riches that the capitalistic order of production offers them. They live for their idea, and if they sacrifice anything it is their own well-being. They are the idealists among our contemporaries.}}

Mises, in his 1927 book Liberalism, also wrote of fascism:

{{Blockquote|Repression by brute force is always a confession of the inability to make use of the better weapons of the intellect—better because they alone give promise of final success. This is the fundamental error from which Fascism suffers and which will ultimately cause its downfall. The victory of Fascism in a number of countries is only an episode in the long series of struggles over the problem of property. The next episode will be the victory of Communism. The ultimate outcome of the struggle, however, will not be decided by arms, but by ideas. It is ideas that group men into fighting factions, that press the weapons into their hands, and that determine against whom and for whom the weapons shall be used. It is they alone, and not arms, that, in the last analysis, turn the scales. So much for the domestic policy of Fascism. That its foreign policy, based as it is on the avowed principle of force in international relations, cannot fail to give rise to an endless series of wars that must destroy all of modern civilization requires no further discussion. To maintain and further raise our present level of economic development, peace among nations must be assured. But they cannot live together in peace if the basic tenet of the ideology by which they are governed is the belief that one's own nation can secure its place in the community of nations by force alone.}}

In his earlier work, Socialism (1922), Mises also made a similar remark with more context, saying that Mussolini did his best to prop up Austria-Hungary as a means of protecting Italian-speaking minorities, but regardless concludes that he was one the most wretched figures in history:Mises, Ludwig von (1922) Socialism: An Economic and Sociological Analysis. Translated by J. Kahane. New edition, enlarged with an Epilogue. New Haven: Yale University Press, 1951. Pp. 575.

{{blockquote|Only those Italians are free to blame Mussolini who begin to understand that the only means of protecting the Italian-speaking minorities in the Littoral districts of Austria against the threatening annihilation by the Slavonic majorities was to preserve the integrity of the Austrian state, whose constitution guaranteed equal rights to all linguistic groups. Mussolini was one of the most wretched figures of history.}}

In regards to Nazism, Mises called on the Allies in his 1944 book Omnipotent Government to "smash Nazism" and to "fight desperately until the Nazi power is completely broken".{{cite book |last1=von Mises |first1=Ludwig |url= https://oll-resources.s3.us-east-2.amazonaws.com/oll3/store/titles/2399/Mises_OmnipotentGovt1579_LFeBk.pdf |title=Omnipotent Government: The Rise of the Total State and Total War |date=1944 |publisher=Liberty Fund |isbn=978-0-86597-754-9 |page=264 (282 in the PDF)}}

In his Notes and recollections, Mises wrote of his experience being personally persecuted by the Nazis for his attacks on Italian Fascism and the National Socialist party:Mises, Ludwig von. Notes and Recollections. Auburn, AL: Ludwig von Mises Institute, 1978.

{{blockquote|The Nazis looted my library and collections. The manuscripts I had worked on during my years in Vienna were lost. I was deeply affected by these losses. However, I managed to escape and start anew. The Nazis chased me out of my home country and off the continent. I had to leave everything behind, but I found refuge in the United States, where I could continue my work and fight for the ideas of liberty.}}

Reception

= Debates about Mises's arguments =

Economic historian Bruce Caldwell wrote that in the mid-20th century, with the ascendance of positivism and Keynesianism, Mises came to be regarded by many as the "archetypal 'unscientific' economist".{{Cite book |title=Hayek's Challenge |url= https://books.google.com/books?id=zL7SbWziUpgC&pg=PA125 |publisher=The University of Chicago Press |first=Bruce |last=Caldwell |date=2004 |pages=125–126 |isbn=978-0-226-09191-4}} In a 1957 review of his book The Anti-Capitalistic Mentality, The Economist said of Mises: "Professor von Mises has a splendid analytical mind and an admirable passion for liberty; but as a student of human nature he is worse than null and as a debater he is of Hyde Park standard".[https://archive.today/20240524084633/https://www.webcitation.org/5fRAcAwrL?url=http://62.190.209.167/exe/wwt.exe/htt%3Ffn=%5C%5CAsteryx%5Cpublic1%5CEconomist%5Cjpg%5CReel1957%5Cecon-1957-0413-0039-0000.jpg&zoom=100&type=j&Quality=100 "Liberalism in Caricature"], The Economist Conservative commentator Whittaker Chambers published a similarly negative review of that book in the National Review, stating that Mises's thesis that anti-capitalist sentiment was rooted in "envy" epitomized "know-nothing conservatism" at its "know-nothingest".Quoted in Sam Tanenhaus, Whittaker Chambers: A Biography, (Random House, New York, 1997), p. 500. {{ISBN|978-0-375-75145-5}}. More recent commenters, such as Tyler Cowen of George Mason University, have listed it alongside Socialism (1922), and Liberalism (1927) as one of the most important books of the 20th century, despite describing Human Action (1949) as "cranky and dogmatic".{{Cite web |last=Cowen |first=Tyler |date=October 16, 2022 |title=Overrated or underrated? |url= https://marginalrevolution.com/marginalrevolution/2022/10/overrated-or-underrated.html |website=Marginal Revolution}} In the same blog post, Cowen states that:

{{blockquote|Socialism is still the best and also historically most important critique of socialism, ever. His earlier articles about the impossibility of economic calculation under socialism are among the most important economics articles, ever.}}

Scholar Scott Scheall called economist Terence Hutchison "the most persistent critic of Mises's apriorism",{{cite journal |last=Scheall |first=Scott |date=July 2017 |title=What is extreme about Mises's extreme apriorism? |journal=Journal of Economic Methodology |volume=24 |issue=3 |pages=226–249 |doi=10.1080/1350178X.2017.1356439 |s2cid=151703666}}{{rp|233}} starting in Hutchison's 1938 book The Significance and Basic Postulates of Economic Theory and in later publications such as his 1981 book The Politics and Philosophy of Economics: Marxians, Keynesians, and Austrians.{{rp|242}} Scheall noted that Friedrich Hayek, later in his life (after Mises died), also expressed reservations about Mises's apriorism, such as in a 1978 interview where Hayek said that he "never could accept the... almost eighteenth-century rationalism in his [Mises's] argument".{{rp|233–234}}

In a 1978 interview, Hayek said about Mises's book Socialism:UCLA Oral History [https://archive.org/details/nobelprizewinnin00haye (Interview with Friedrich Hayek)], American Libraries/Internet Archive, 1978. Retrieved on April 4, 2009 ([http://blog.mises.org/archives/009657.asp Blog.Mises.org] {{Webarchive|url= https://web.archive.org/web/20090627012718/http://blog.mises.org/archives/009657.asp |date=June 27, 2009}}), source with quotes.

{{blockquote|At first we all felt he was frightfully exaggerating and even offensive in tone. You see, he hurt all our deepest feelings, but gradually he won us around, although for a long time I had to – I just learned he was usually right in his conclusions, but I was not completely satisfied with his argument.}}

Economist Milton Friedman considered Mises inflexible in his thinking, but added that Mises's difficult life, persecution by Nazis, and lack of acceptance by academia are the likely culprits:{{cite journal |title=Best of Both Worlds (Interview with Milton Friedman) |journal=Reason |date=June 1995 |url= http://www.reason.com/news/show/29691.html}}

{{blockquote|The story I remember best happened at the initial Mont Pelerin meeting when he got up and said, "You're all a bunch of socialists." We were discussing the distribution of income, and whether you should have progressive income taxes. Some of the people there were expressing the view that there could be a justification for it.

Another occasion which is equally telling: Fritz Machlup was a student of Mises's, one of his most faithful disciples. At one of the Mont Pelerin meetings, Machlup gave a talk in which I think he questioned the idea of a gold standard; he came out in favor of floating exchange rates. Mises was so mad he wouldn't speak to Machlup for three years. Some people had to come around and bring them together again. It's hard to understand; you can get some understanding of it by taking into account how people like Mises were persecuted in their lives.}}

Economist Murray Rothbard, who studied under Mises, agreed he was uncompromising, but disputes reports of his abrasiveness. In his words, Mises was "unbelievably sweet, constantly finding research projects for students to do, unfailingly courteous, and never bitter" about the discrimination he received at the hands of the economic establishment of his time.Murray Rothbard, {{YouTube|KWdUIuID8ag|"The Future of Austrian Economics"}}, 1990 talk at Mises University at Stanford, at MisesMedia Youtube channel.

After Mises died, his widow Margit quoted a passage that he had written about Benjamin Anderson. She said it best described Mises's own personality:{{cite book |last=Kirzner |first=Israel M. |author-link=Israel Kirzner |title=Ludwig von Mises: The Man and his Economics |url= https://archive.org/details/ludwigvonmises00isra |url-access=registration |date=2001 |publisher=ISI Books |location=Wilmington, Delaware |isbn=978-1-882926-68-8 |page=[https://archive.org/details/ludwigvonmises00isra/page/31 31] |oclc=47734733}}

{{blockquote|His most eminent qualities were his inflexible honesty, his unhesitating sincerity. He never yielded. He always freely enunciated what he considered to be true. If he had been prepared to suppress or only to soften his criticisms of popular, but irresponsible, policies, the most influential positions and offices would have been offered him. But he never compromised.}}

Critics more broadly argue that praxeology's reliance on a priori reasoning and rejection of empirical methods limit its ability to test and validate economic theories. This critique is grounded in the belief that economic theories should be subject to Popperian falsification, as seen in mainstream economics, which emphasizes data-driven analysis and the use of econometrics."Subjectivism in the Austrian School of Economics". In Subjectivism and Interpretative Methodology in Theory and Practice, edited by Gary M. Shiu and Fu-Lai Tony Yu, Anthem Press, 2020. Even within the Austrian tradition, there are debates about the extent and application of praxeology.Kirzner, Israel M. The Economic Point of View: An Essay in the History of Economic Thought. D. Van Nostrand Company, 1960. For example, Friedrich Hayek, while sympathetic to Austrian principles, was more open to incorporating empirical evidence and saw limitations in a strictly a priori approach.Hayek, Friedrich A. The Fatal Conceit: The Errors of Socialism. Edited by W.W. Bartley III, University of Chicago Press, 1988. In his book The Counter-Revolution of Science: Studies on the Abuse of Reason, Hayek critiques the overconfidence in the application of scientific methods to social sciences, including economics. While he does not explicitly target praxeology, his arguments suggest a more skeptical view of purely deductive methodologies. Hayek emphasizes the complexity of social phenomena and the limitations of any one method, advocating for a more pluralistic approach to economic inquiry.

The Austrian School's methodological differences, particularly its reluctance to engage with quantitative methods, have led to its marginalization within the broader economics discipline. This isolation is a result of the school's focus on verbal logic and theoretical purity, which many mainstream economists view as insufficiently rigorous.Caldwell, Bruce. Beyond Positivism: Economic Methodology in the Twentieth Century. Routledge, 1982. Other commenters such as Eric Weinstein and Peter Thiel have remarked about the broader issue of dogmatism within Austrian economics. Weinstein emphasized the importance of being open to new ideas and criticized the tendency within Austrian economics to dismiss other methodologies.Weinstein, Eric. "Peter Thiel". The Portal, episode 1, Apple Podcasts, 2019. [https://podcasts.apple.com/us/podcast/the-portal/id1469999563 Link.] While the Austrian's prosaic approach provides valuable insights into the decision-making process, econometrically minded critics argue that it lacks the predictive power of other economic models that rely on more objective measures. This subjectivism can make it challenging to formulate generalizable laws or predictions.

Works

The Theory of Money and Credit (1912, enlarged US edition 1953)
[https://mises.org/library/theory-money-and-credit Full text available].
Nation, State, and Economy (1919)
[https://mises.org/library/nation-state-and-economy Full text available].
Economic Calculation in the Socialist Commonwealth (1920) (long-form essay)
[https://mises.org/library/economic-calculation-socialist-commonwealth Full text available].
Socialism: An Economic and Sociological Analysis (1922, 1932,{{cite book |last=von Mises |first=Ludwig |title=Gemeinwirtschaft: Untersuchungen über den Sozialismus |language=de |edition=2 |place=Jena |date=1932 |publisher=Gustav Fischer |url= https://archive.org/details/DieGemeinwirtschaft/page/n1/mode/2up?view=theater |via=Internet Archive}} 1951)
[https://mises.org/library/socialism-economic-and-sociological-analysis Full text available].
Liberalism: In the Classical Tradition (1927, 1962)
[https://mises.org/library/liberalism-classical-tradition Full text available].
A Critique of Interventionism (1929) (collection of essays)
[https://mises.org/library/critique-interventionism Full text available].
Epistemological Problems of Economics (1933, 1960)
[https://mises.org/library/epistemological-problems-economics Full text available].
Memoirs (1940)
[https://mises.org/library/memoirs Full text available].
Interventionism: An Economic Analysis (1941, 1998)
Omnipotent Government: The Rise of Total State and Total War (1944)
[https://mises.org/library/omnipotent-government-rise-total-state-and-total-war Full text available].
Bureaucracy (1944, 1962)
[https://mises.org/library/bureaucracy Full text available].
Planned Chaos (1947, added to 1951 edition of Socialism)
[https://mises.org/library/planned-chaos-0 Full text available].
Human Action: A Treatise on Economics (1949, 1963, 1966, 1996)
[https://mises.org/library/human-action-0 Full text available].
Planning for Freedom (1952, enlarged editions in 1962, 1974, and 1980) (Collection of essays and addresses)
[https://mises.org/library/planning-freedom-and-twelve-other-essays-and-addresses Full text available].
The Anti-Capitalistic Mentality (1956)
[https://mises.org/library/anti-capitalistic-mentality Full text available].
Theory and History: An Interpretation of Social and Economic Evolution (1957)
[https://mises.org/library/theory-and-history-interpretation-social-and-economic-evolution Full text available].
The Ultimate Foundation of Economic Science (1962)
[https://mises.org/library/ultimate-foundation-economic-science Full text available].
The Historical Setting of the Austrian School of Economics (1969) (long-form essay)
[https://mises.org/library/historical-setting-austrian-school-economics-0 Full text available].
Notes and Recollections (1978, written in 1940–41)
On the Manipulation of Money and Credit (1978) (collection of essays, reissued as The Causes of the Economic Crisis)
[https://mises.org/library/causes-economic-crisis-and-other-essays-and-after-great-depression Full text available].
Economic Policy: Thoughts for Today and Tomorrow (1979, collection of lectures given in 1959)
[https://mises.org/library/economic-policy-thoughts-today-and-tomorrow Full text available].
Money, Method, and the Market Process (1990) (collection of essays)
[https://mises.org/library/money-method-and-market-process Full text available].
Economic Freedom and Interventionism (1990) (collection of essays and addresses)
[https://mises.org/library/economic-freedom-and-interventionism Full text available].
The Free Market and Its Enemies (2004, collection of lectures given in 1951)
[https://mises.org/library/free-market-and-its-enemies-pseudo-science-socialism-and-inflation Full text available].
Marxism Unmasked: From Delusion to Destruction (2006, collection of lectures given in 1952)
[https://mises.org/library/marxism-unmasked-delusion-destruction Full text available].
Ludwig von Mises on Money and Inflation (2010, collection of lectures given in the 1960s)
[https://mises.org/library/ludwig-von-mises-money-and-inflation Full text available].

Notes

References

External links

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{{cite web |last=Bergner |first=Matthias |url= https://www.deutsche-biographie.de/sfz63661.html#ndbcontent |title=Mises, Ludwig |publisher=Deutsche Biographie |language=de |access-date=April 19, 2024}}
[http://www.vonmisesinstitute-europe.org/ Ludwig von Mises Institute Europe]
{{cite book |title=Who's Who in Economics: A Biographical Dictionary of Major Economists 1700-1986 |chapter=MISES, Ludwig Edler Von |editor=Blaug, Mark |editor-link=Mark Blaug |edition=2nd |place= |date=1986 |publisher=Wheatsheaf Books |url= https://archive.org/details/whoswhoineconomi0000unse_e8w6/page/n5/mode/2up |url-access=registration |pages=[https://archive.org/details/whoswhoineconomi0000unse_e8w6/page/606/mode/2up?view=theater 606] |isbn=978-0-7450-0230-9 |via=Internet Archive}}
[http://www.mises.de Mises.de] (books and articles in the original German versions by Mises and other authors of the Austrian School)
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{{Google Scholar id|WwEfPsgAAAAJ}}
[http://www.mises.org/ Ludwig von Mises Institute]
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Book reviews

[https://archive.org/download/vonmisesludwig.reviewoftheeconomicmunichbyphilipcortneythefreemanmarch1955pp.6668/von%20Mises%2C%20Ludwig.%20Review%20of%20The%20Economic%20Munich%20by%20Philip%20Cortney%20%28The%20Freeman%2C%20March%201955%29%20pp.%2066-68.pdf "Review of The Economic Munich by Philip Cortney"]. The Freeman, March 1955. [https://mises-media.s3.amazonaws.com/Freeman55-3_4.pdf Full issue available].

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Category:American economics writers