Study Guide to Man, Economy, and State with Power and Market

More documents

Recommendations

Info

Chapter Outline 1. Types of Intervention Intervention is the intrusion of aggressive physical force into society. The economic analysis of “private” coercion is the same as government coercion, but we focus on the latter because of its greater prevalence and number of apologists. Autistic intervention occurs when the aggressor uses force on an individual such that no one else is affected. Binary intervention occurs when the aggressor establishes a hegemonic relationship between himself and the victim. Triangular intervention occurs when the aggressor uses force to alter the relations between a pair of subjects. 2. Direct Effects of Intervention on Utility A. Intervention and Conflict In a free market, people only participate in an exchange if they believe they will benefit; thus the market “maximizes” ex ante utility of everyone in society. Any intervention, in contrast, increases the utility of the aggressor and necessarily reduces the utility of the affected subjects. 181 CHAPTER 2 FUNDAMENTALS OF INTERVENTION
182 Study Guide to Man, Economy, and State with Power and Market B. Democracy and the Voluntary It is wrong to view State action in a democratic government as “voluntary.” At best, only the majority of voters achieve their ends via democracy. Moreover, even the winning voters may have picked the “lesser of two evils.” Note that no one uses such language in describing market purchases. C. Utility and Resistance to Invasion It is true that private defense agencies lower the utility experienced by an aggressor. However, the aggressor was himself interfering with the voluntary market by initiating force. It is still true that the free market (even with force-wielding defense agencies) maximizes utility for all of the noncriminals. D. The Argument From Envy One could object that the market does not necessarily maximize utility, because of envy. For example, it may not be true that a voluntary exchange of money for labor makes the two people better off (at least in their own ex ante estimation) and does nothing else; perhaps a third party is disappointed that he was not hired for the job. From a praxeological viewpoint, however, all we can analyze is concrete action; we cannot speculate on someone’s inner feelings. Even if someone publishes pamphlets denouncing the sale of tobacco, there is no ironclad proof that this person is not committing a practical joke. E. Utility Ex Post People always expect to benefit from voluntary exchanges, and in practice they usually will do so. In
Page 2 and 3:
STUDY GUIDE TO MAN, ECONOMY, AND ST
Page 4 and 5:
STUDY GUIDE TO MAN, ECONOMY, AND ST
Page 6 and 7:
CONTENTS INTRODUCTION . . . . . . .
Page 8 and 9:
In June of 2004, I became convinced
Page 10:
Introduction ix appropriate, I have
Page 13 and 14:
2 Study Guide to Man, Economy, and
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 50 and 51:
Chapter Summary In a money economy,
Page 52 and 53:
Chapter 4: Prices and Consumption 4
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 80 and 81:
Chapter Summary In the evenly rotat
Page 82 and 83:
Chapter 6: Production: The Rate of
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Chapter Summary This chapter explai
Page 94 and 95:
Chapter 7: Production: General Pric
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Chapter Summary Entrepreneurial pro
Page 106 and 107:
Chapter 8: Production: Entrepreneur
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116:
Page 119 and 120:
108 Study Guide to Man, Economy, an
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 132 and 133:
Chapter Summary Consumer preference
Page 134 and 135:
Chapter 10: Monopoly and Competitio
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143: Chapter 10: Monopoly and Competitio
Page 144 and 145: Chapter 10: Monopoly and Competitio
Page 146 and 147: Chapter Summary Like all goods, the
Page 148 and 149: Chapter 11: Money and Its Purchasin
Page 164: Chapter 11: Money and Its Purchasin
Page 167 and 168: 156 Study Guide to Man, Economy, an
Page 186 and 187: Chapter Summary Economists often ta
Page 188 and 189: Chapter 1: Defense Services on the
Page 190 and 191: Chapter 1: Defense Services on the
Page 194 and 195: Chapter 2: Fundamentals of Interven
Page 196 and 197: Chapter 2: Fundamentals of Interven
Page 198: Chapter 2: Fundamentals of Interven
Page 214 and 215: Chapter Summary Society is composed
Page 216 and 217: Chapter 4: Binary Intervention: Tax
Page 230 and 231: Chapter Summary There has been litt
Page 232 and 233: Chapter 5: Binary Intervention: Gov
Page 238: Chapter 5: Binary Intervention: Gov
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 260 and 261:
Apriorism, 1, 9 Ability-to-pay prin
Page 262 and 263:
Index 251 Equilibrium, 47, 104 macr
Page 264 and 265:
Index 253 Medium of exchange, 27, 3
Page 266 and 267:
Index 255 See also Economy, Evenly
show all

Study Guide to Man, Economy, and State with Power and Market

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?