One of the areas of economics to which Murray Rothbard contributed significantly is known as welfare economics. As we explain in this episode, it deals with how we can determine whether utility (individual or “social,” properly understood) has been increased. Rothbard’s analysis led him to the conclusion that it was impossible for state action to increase social utility.
Free-market economist Bryan Caplan, in his famous article on why he isn’t an Austrian, argues that Rothbard’s solution is riddled with problems. Jeff Herbener joins me for a robust defense of Rothbard.
About the Guest
Jeffrey M. Herbener is chairman of the department of economics at Grove City College and associate editor of the Quarterly Journal of Austrian Economics.
Articles Discussed
“Why I Am Not an Austrian Economist,” by Bryan Caplan
“Toward a Reconstruction of Utility and Welfare Economics,” by Murray N. Rothbard (PDF)
Articles Mentioned
“In Defense of Rothbardian Welfare Economics,” by Jeffrey M. Herbener
Hans Hoppe on welfare economics (the welfare economics section begins on p. 257)
Related Episodes
Ep. 419 Austrian Business Cycle Theory: Answering the Critics (David Howden)
Ep. 403 Austrian Microeconomics: Where the Critics Go Wrong (Jeff Herbener)
Free Resources!
1) Free eBook on how to start your blog or website. Click here to get it. Plus, check out my step-by-step video taking you from no blog to a blog in about five minutes!
2) Free publicity for your blog. As a special thanks if you get your hosting through one of my affiliate links (this one for Bluehost, or this one for WP Engine), I’ll boost your blog. Click here for details.
3) Free audiobook. Get the audiobook version (with me reading it!) of my latest book, Real Dissent: A Libertarian Sets Fire to the Index Card of Allowable Opinion, or one of hundreds of thousands of other titles, through this special offer.
5) $140 in Free Bonuses. Free signed copy of my New York Times bestseller The Politically Incorrect Guide to American History, plus a free 10-lesson bonus course on the foundations of liberty, plus a free year’s subscription to LibertyClassroom.com, when you subscribe to the Ron Paul Curriculum site through RonPaulHomeschool.com.