Cite articles as: Author, “Title,” Libertarian Papers [volume #], [article number] (year). Example: Jan Narveson, “Present Payments, Past Wrongs: Correcting Loose Talk about Nozick and Rectification,” Libertarian Papers 1, 1 (2009).
14: “A Treatise for A New Age in Economic Theory: A Review of George Reisman’s Capitalism”
by Wladimir Kraus
Abstract: George Reisman’s magnum opus Capitalism: A Treatise on Economics is a monumental attempt at theoretical integration of leading economic phenomena into one unified whole. Few such books have been published in the history of economics. Still fewer of them contain a comparable proportion of path-breaking innovations both in approach and substance that are integrated in a tightly-spun system of thought that Capitalism does. Yet despite its numerous path-breaking contributions to economic theory, the book has attracted virtually zero attention from the scientific community. History shows that for the most part this has been the fate of all great innovations in science. This review attempts (a) to point out reasons why the book’s content is revolutionary, and (b) to finally start a serious discussion of its substantive ideas. Specifically, the review focuses in some detail on some of Reisman’s most important innovations which all point the way to a wholly new direction in economic theory that promises to provide the hitherto unseen conformity with empirical reality, analytical rigor, and doctrinal integration.
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I have been “wading” through this very impressive work and find the only real thing missing would be a comprehensive study guide.
Great job! Thanks
There is a study guide. Please contact Dr. Reisman in Laguna Niguel, California.
I would buy and read Capitalism if it was around $50 cheaper. I bought Human Action; Man, Economy, and State; and Money, Bank Credit, and Economic Cycles for close to the price of Capitalism.
Les,
Peter Bach is correct, there is a study guide for download and purchase, http://www.capitalism.net/GRProgram%20Guide.htm
Thanks for this review. Yes, it is really about time that Reisman’s treatise gets the recognition it so amply deserves. And you managed to pick some of his most important contributions, too!
I find Reisman’s work to be quite interesting. He has put “meat on the bones” of some Austrian explanations that I didn’t find fully satisfying before. His discussion of the origination of interest on the market is a true contribution to economic thought.
I found his explination of marginal cost and how the lowest cost producer sets the price for the industry, not to his cost plus interest on capital, but somewhere near his competitors costs to be very enlightening. As it relates to the sale of gasoline, how each gas station tends to have the same price, it makes sense now, they must sell at the going price or fail to sell.
The other great point that Reisman makes is that we want the price of an item to be high enough that we can obtain the item. So again if gas is priced too low, then it will lead to shortages. It is to my advantage that the seller maintains a price high enough to ensure availablity for my purchase!
Before I started my study of economics, I was swayed by the populist view of Bill O’Reilly. Reisman’s book is big and cannot be consumed quickly, but it is very easy to understand and has exhustive examples. It is a truely wonderful defence of Capitalism!
John Rolstead
Profound thanks to Wladimir Kraus for his brilliant review of George Reisman’s monumental and fascinating study of economics.
As Mr. Kraus explains, “Capitalism” is extraordinary, because it provides the most powerful and sweeping integration of ideas, together with brilliant and original contributions to economics. Dr. Reisman’s treatment of his subject is thorough, precise, and logically overwhelming.
Thanks to Stephan Kinsella for “Libertarian Papers”, and for publishing this outstanding review.
Thanks, Mark! I really appreciate your praise! The only task which is left now is to bring his ideas to academic and popular audience, make his ideas known. Particularly important is to make Austrians economists more aware of Prof. Reisman’s work. They, more than anyone else, need his profound contributions to buttress the case for laissez-faire capitalism.
We should all be thankful to Stephan Kinsella for “Libertarian Papers”, providing a new way to further debate and exploration of the ideas of liberty. I have to agree with the previous comments of course, prof. Reisman’s epochal contributions are still to be discovered and disseminated in the classrooms around the globe. It is our moral duty to spread just and true ideas, if we want civilization to survive and flourish.
One interesting idea I found while doing some research on Inflation in this book was about government debt. It concerned repricing older debt upwards, to adjust the amount owed for inflation. Reisman’s idea was pointed towards showing government’s debt unaffected by inflation.
It thought it would be interesting to see how much of private savings have been taken, stored, and spent by the government.
Yes, we were so impressed with Capitalism that we now use it as a text for our Certificate in Economic Studies program.