Among the various schools of economics, Austrian economic theory stands largely alone in its insistence that economic problems, and social security in particular, cannot be properly understood without explicit attention to capital: its production, transformation, and purpose. In the perspective of Austrian economics, capital is not a simple lump sum called “K,” but a heterogeneous ensemble of production goods that has to be brought to life by entrepreneurial action. Coercive capital-based systems do not eliminate the vicious cycle of wealth destruction. FULL ARTICLE
Source link: http://archive.mises.org/3652/social-security-and-the-destruction-of-capital/
Social Security and the Destruction of Capital
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