(Mises)—Ludwig von Mises and F.A. Hayek, two of the best-known Austrian school economists in the twentieth century, may have followed the same school of thought, but they greatly differed in their work. In consideration of human action, the two men differed in their methodology: Mises advocated for a pure use of reason through praxeology, and Hayek, alternatively, defended the compositive method.
In regard to the market process and entrepreneurship, Mises’s and Hayek’s views are not just different, but opposed. Hayek, in his articles “Economics and Knowledge“ and “The Use of Knowledge in Society,” highlighted the role of knowledge in the social process and how the price system is an institution that spreads information over the markets. Mises, on the other hand, asserted what matters is not past realized prices but future prices that will orient decisions, plans of action, and the allocation of resources.
Evidently, the discrepancies in Mises’s and Hayek’s views on the market guided their different positions on socialism. Hayek stressed the problem with knowledge, pointing out that there is a kind of knowledge related to particular circumstances that cannot be centralized. In contrast, Mises, as Joseph T. Salerno presented in his articles “Ludwig von Mises as a Social Rationalist” and “Reply to Leland B. Yeager on ‘Mises and Hayek on Calculation and Knowledge,’” conceived that even if all knowledge could be centralized, a problem would persist in economic calculation as human action is future-oriented and the social world is built through individual sovereign and subjective actions looking to the future.
While Hayek considered price changes and gaps to be the guiding force behind economic changes and behavior, Mises spotlighted the role of entrepreneurial calculation. With Hayek, individuals are not actors but reactors to the information dictated by prices. Mises, however, wrote that entrepreneurs are the driving force of the economy. Without property rights and entrepreneurship, it is impossible to allocate resources efficiently. In a centrally planned economy, all decisions are arbitrary and do not follow economic criteria.
Differences exist further when looking at how Mises and Hayek examined institutions. For Hayek, institutions (or spontaneous orders) are developed in a long barely understandable process as a result of human action but not of human design; people accept and follow institutions in an automatic, nonreflexive way. Mises, however, believed that institutions come from human understanding, reflection, and deliberation. Institutions do not emerge magically and without human comprehension. Individuals are a part of institutional development, and each action will be a part of institutional change.
As Salerno pointed out, when Mises explained the emergence of the modern family, he asserted a perspective of action. Individuals see other families, their benefits, and decide to form their own families with their partners. They do not passively assert families as a given institution that emerged over time and thus must be followed. To Mises, individuals are active actors; to Hayek, individuals are passive reactors.
For Mises, ideology plays a huge role in any social aspect. Individuals do not just react to price changes as arbitrators but, with their values, create the future. Beliefs, values, biases, and understandings guide human decisions and actions. For Mises, the wrong social perspectives can lead to malicious effects, hindering liberty, property, and economic development. And that is precisely the relevance of the spread of good ideas which guide ethical actions, respect for other people’s property and liberty, and, subsequently, the evolution of society and a nation’s economy.
Emerging without deliberation, institutions are not spontaneous orders. Institutions are organic orders, being bottom-up constructions over time depending upon human decisions, upon human reflection about the social process, upon thymological comprehension of other people’s behavior. An erroneous set of beliefs would not just hinder economic and social development but may, indeed, also destroy social coordination.
That’s the situation Western society faces now. Postmodernism, relativism, and progressivism are erroneous beliefs (as explained in my past articles) that are disturbing the social process and coordination. They are a set of beliefs that distort the interpretation of social phenomena, assuming a constructivist approach to reality. Individuals with such beliefs are not individuals but weapons for a pretend revolution through the clash of genders, races, classes, and the like.
In this scenario, Mises’s position must be highlighted. These contemporary ideologies which hinder ethical actions have been destroying institutions for decades. People are making erroneous choices, and we must not stay seated, waiting for a long-term correction of plans. People are reflecting on the facts and purposefully choosing the wrong directions as they follow their framework of analysis.
Civilization should not trust in a long-term Hayekian process of selection in which plans and actions are magically and passively corrected. It won’t happen and all the while progress will be hampered as entrepreneurship and the market process are under attack.
To save Western civilization from a tragic fate, individuals should defend ideas that support individual freedom, individual property rights, and individual entrepreneurship. Individuals must be involved in the social process, reporting and fighting the malicious effects of contemporary ideologies.
Individuals must leave their safe spaces in which they keep to only their private lives and become a part of a process in which collectivism, interventionism, and socialism are fought. Mises’s motto, from Virgil’s Aeneid, perfectly expresses this, Tu ne cede malis, sed contra audentior ito, meaning “Do not give into evil but proceed ever more boldly against it.”
About the Author
Artur Marion Ceolin is a Ph.D. candidate in economics at Universidad Rey Juan Carlos and a Summer Fellow at the Mises Institute in 2022.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
