Abstract: In his book The Economic Laws of Scientific Research, Terence Kealey deconstructs major misconceptions about scientific research and its relation to the state. He shows, through revisionist history and economic data, that the premises behind common defenses of government funding of science are fallacious. Even though science is related to economic growth, the state cannot boost the economy by injecting funds into scientific research. Also, the state cannot discover which scientific projects are most important because it cannot rely on market signals from the price system. Finally, the state cannot determine the right level of funding for scientific research, because it has no way of knowing which projects will have positive economic impact. Not surprisingly, after showing how the market produces science in a rational way, Kealey recommends a laissez-faire approach to scientific research.
Archives for October 2012
Abstract: Kukathas’s proposed libertarian dilemma is introduced and two key criticisms of it stated. The following critical commentary then makes several main points. Kukathas’s account of libertarianism offers no theory of liberty at all, nor a coherent account of aggression. Consequently, he cannot see that his “Federation of Liberty” is not libertarian by a basic understanding of morals and non-invasive liberty, still less by a more precise theory of liberty. In trying to explain his “Union of Liberty,” Kukathas evinces considerable confusion about the nature of libertarianism. His argument that a monopoly legal system is inevitable is also neither plausible nor libertarian. He has apparently overlooked the cogent arguments against Nozickian minarchy, and in favor of anarchy. It is concluded that the neglect of libertarian theories of liberty and anarchy is the underlying problem.
Abstract: In this article, two separate aspects of Mises’ famous economic calculation argument are identified. The first concerns the fact that the profit-and-loss calculations that drive economic decisions regarding factors of production under capitalism cannot, by definition, take place under socialism since there cannot be any prices on which to base such calculations. The second concerns that idea that, owing to the nature of value, there is no alternative means of allocation, such as a calculus in terms of value. Although both of these points are well-known and frequently invoked to pass a decisive judgment against socialism, they are in fact separate arguments which have thus far been inadequately distinguished in the Austrian literature. The objective of this paper is to highlight this distinction. I further illustrate the point by emphasizing the role of monetary calculation, which nonetheless plays a real role in capitalist economies.
Download Paper: “Mises’ Calculation Argument: A Clarification”