INTRODUCTION TO THE SECOND EDITION
by Joseph T. Salerno
CHAPTER 1—FUNDAMENTALS OF HUMAN ACTION
2. First Implications of the Concept
3. Further Implications: The Means
B. The Law of Marginal Utility
6. Factors of Production: The Law of Returns
7. Factors of Production: Convertibility and Valuation
8. Factors of Production: Labor versus Leisure
Appendix A: Praxeology and Economics
1. Types of Interpersonal Action: Violence
2. Types of Interpersonal Action: Voluntary Exchange and the Contractual Society
3. Exchange and the Division of Labor
5. Determination of Price: Equilibrium Price
7. Speculation and Supply and Demand Schedules
8. Stock and the Total Demand to Hold
9. Continuing Markets and Changes in Price
10. Specialization and Production of Stock
11. Types of Exchangeable Goods
12. Property: The Appropriation of Raw Land
13. Enforcement Against Invasion of Property
CHAPTER 3—THE PATTERN OF INDIRECT EXCHANGE
1. The Limitations of Direct Exchange
2. The Emergence of Indirect Exchange
3. Some Implications of the Emergence of Money
5. Money Income and Money Expenditures
7. Maximizing Income and Allocating Resources
CHAPTER 4—PRICES AND CONSUMPTION
2. Determination of Money Prices
3. Determination of Supply and Demand Schedules
5. The Marginal Utility of Money
D. Planning and the Range of Choice
6. Interrelations among the Prices of Consumers’ Goods
7. The Prices of Durable Goods and Their Services
8. Welfare Comparisons and the Ultimate Satisfactions of the Consumer
9. Some Fallacies Relating to Utility
Appendix A: The Diminishing Marginal Utility of Money
CHAPTER 5—PRODUCTION: THE STRUCTURE
1. Some Fundamental Principles of Action
2. The Evenly Rotating Economy
3. The Structure of Production: A World of Specific Factors
4. Joint Ownership of the Product by the Owners of the Factors
6. Ownership of the Product by Capitalists: Amalgamated Stages
7. Present and Future Goods: The Pure Rate of Interest
8. Money Costs, Prices, and Alfred Marshall
9. Pricing and the Theory of Bargaining
CHAPTER 6—PRODUCTION: THE RATE OF INTEREST AND ITS DETERMINATION
1. Many Stages: The Pure Rate of Interest
2. The Determination of the Pure Rate of Interest: The Time Market
3. Time Preference and Individual Value Scales
4. The Time Market and the Production Structure
5. Time Preference, Capitalists, and Individual Money Stock
7. The Myth of the Importance of the Producers’ Loan Market
9. Joint-Stock Companies and the Producers’ Loan Market
10. Forces Affecting Time Preferences
11. The Time Structure of Interest Rates
Appendix: Schumpeter and the Zero Rate of Interest
CHAPTER 7—PRODUCTION: GENERAL PRICING OF THE FACTORS
1. Imputation of the Discounted Marginal Value Product
2. Determination of the Discounted Marginal Value Product
B. The Marginal Physical Product
(2) Marginal Physical Product and Average Physical Product
3. The Source of Factor Incomes
6. The Depletion of Natural Resources
Appendix A: Marginal Physical and Marginal Value Product
Appendix B: Professor Rolph and the Discounted Marginal Productivity Theory
CHAPTER 8—PRODUCTION: ENTREPRENEURSHIP AND CHANGE
1. Entrepreneurial Profit and Loss
2. The Effect of Net Investment
3. Capital Values and Aggregate Profits in a Changing Economy
4. Capital Accumulation and the Length of the Structure of Production
5. The Adoption of a New Technique
The Entrepreneur and Innovation
6. The Beneficiaries of Saving-Investment
7. The Progressing Economy and the Pure Rate of Interest
8. The Entrepreneurial Component in the Market Interest Rate
9. Risk, Uncertainty, and Insurance
CHAPTER 9—PRODUCTION: PARTICULAR FACTOR PRICES AND PRODUCTIVE INCOMES
E. Productivity and Marginal Productivity
F. A Note on Overt and Total Wage Rates
G. The “Problem” of Unemployment
3. Entrepreneurship and Income
D. Market Calculation and Implicit Earnings
E. Vertical Integration and the Size of the Firm
4. The Economics of Location and Spatial Relations
5. A Note on the Fallacy of “Distribution”
CHAPTER 10—MONOPOLY AND COMPETITION
1. The Concept of Consumers’ Sovereignty
A. Consumers’ Sovereignty versus Individual Sovereignty
B. Professor Hutt and Consumers’ Sovereignty
2. Cartels and Their Consequences
A. Cartels and “Monopoly Price”
B. Cartels, Mergers, and Corporations
C. Economics, Technology, and the Size of the Firm
D. The Instability of the Cartel
E. Free Competition and Cartels
F. The Problem of One Big Cartel
3. The Illusion of Monopoly Price
B. The Neoclassical Theory of Monopoly Price
C. Consequences of Monopoly-Price Theory
(1) The Competitive Environment
(2) Monopoly Profit versus Monopoly Gain to a Factor
(3) A World of Monopoly Prices?
D. The Illusion of Monopoly Price on the Unhampered Market
E. Some Problems in the Theory of the Illusion of Monopoly Price
A. Restrictionist Pricing of Labor
B. Some Arguments for Unions: A Critique
(3) Greater Efficiency and the “Ricardo Effect”
5. The Theory of Monopolistic or Imperfect Competition
A. Monopolistic Competitive Price
B. The Paradox of Excess Capacity
C. Chamberlin and Selling Cost
6. Multiform Prices and Monopoly
CHAPTER 11—MONEY AND ITS PURCHASING POWER
2. The Money Relation: The Demand for and the Supply of Money
3. Changes in the Money Relation
4. Utility of the Stock of Money
A. Money in the ERE and in the Market
C. Secular Influences on the Demand for Money
D. Demand for Money Unlimited?
E. The PPM and the Rate of Interest
F. Hoarding and the Keynesian System
(1) Social Income, Expenditures, and Unemployment
G. The Purchasing-Power and Terms-of-Trade Components in the Rate of Interest
A. The Stock of the Money Commodity
B. Claims to Money: The Money Warehouse
C. Money-Substitutes and the Supply of Money
D. A Note on Some Criticisms of 100-Percent Reserve
7. Gains and Losses During a Change in the Money Relation
8. The Determination of Prices: The Goods Side and the Money Side
A. Uniformity of the Geographic Purchasing Power of Money
B. Clearing in Interlocal Exchange
11. Monetary Attributes of Goods
12. Exchange Rates of Coexisting Moneys
13. The Fallacy of the Equation of Exchange
14. The Fallacy of Measuring and Stabilizing the PPM
16. Schumpeter's Theory of Business Cycles
17. Further Fallacies of the Keynesian System
18. The Fallacy of the Acceleration Principle
CHAPTER 12—THE ECONOMICS OF VIOLENT INTERVENTION IN THE MARKET
3. Direct Effects of Intervention on Utility
4. Utility Ex Post: Free Market and Government
5. Triangular Intervention: Price Control
6. Triangular Intervention: Product Control
7. Binary Intervention: The Government Budget
8. Binary Intervention: Taxation
B. Attempts at Neutral Taxation
C. Shifting and Incidence: A Tax on an Industry
D. Shifting and Incidence: A General Sales Tax
F. Taxing “Excess Purchasing Power”
9. Binary Intervention: Government Expenditures
A. The “Productive Contribution” of Government Spending
B. Subsidies and Transfer Payments
D. The Fallacy of Government on a “Business Basis”
E. Centers of Calculational Chaos
F. Conflict and the Command Posts
G. The Fallacies of “Public” Ownership
I. Socialism and Central Planning
10. Growth, Affluence, and Government
B. Professor Galbraith and the Sin of Affluence
11. Binary Intervention: Inflation and Business Cycles
A. Inflation and Credit Expansion
B. Credit Expansion and the Business Cycle
C. Secondary Developments of the Business Cycle
D. The Limits of Credit Expansion
E. The Government as Promoter of Credit Expansion
F. The Ultimate Limit: The Runaway Boom
G. Inflation and Compensatory Fiscal Policy
12. Conclusion: The Free Market and Coercion
Appendix A: Government Borrowing
Appendix B: “Collective Goods” and “External Benefits”: Two Arguments for Government Activity
CHAPTER 1—DEFENSE SERVICES ON THE FREE MARKET
CHAPTER 2—FUNDAMENTALS OF INTERVENTION
2. Direct Effects of Intervention on Utility
B. Democracy and the Voluntary
C. Utility and Resistance to Invasion
CHAPTER 3—TRIANGULAR INTERVENTION
2. Product Control: Prohibition
3. Product Control: Grant of Monopolistic Privilege
C. Standards of Quality and Safety
H. Minimum Wage Laws and Compulsory Unionism
L. Outlawing Basing-Point Pricing
O. Franchises and “Public Utilities”
P. The Right of Eminent Domain
Q. Bribery of Government Officials
Appendix A: On Private Coinage
Appendix B: Coercion and Lebensraum
CHAPTER 4—BINARY INTERVENTION: TAXATION
1. Introduction: Government Revenues and Expenditures
2. The Burdens and Benefits of Taxation and Expenditures
3. The Incidence and Effects of Taxation
A. The General Sales Tax and the Laws of Incidence
B. Partial Excise Taxes; Other Production Taxes
C. General Effects of Income Taxation
D. Particular Forms of Income Taxation
(5) Is a Tax on Consumption Possible?
4. The Incidence and Effects of Taxation
Part II: Taxation on Accumulated Capital
A. Taxatuin on Gratuitous Transfers: Bequests and Gifts
5. The Incidence and Effects of Taxation
6. The Incidence and Effects of Taxation
Part IV: The “Single Tax” on Ground Rent
7. Canons of “Justice” in Taxation
A. The Just Tax and the Just Price
B. Costs of Collection, Convenience, and Certainty
C. Distribution of the Tax Burden
a. Equality Before the Law: Tax Exemption
b. The Impossibility of Uniformity
(2) The “Ability-to-Pay” Principle
a. The Ambiguity of the Concept
b. The Justice of the Standard
(5) The Equal Tax and the Cost Principle
(6) Taxation “For Revenue Only”
(7) The Neutral Tax: A Summary
D. Voluntary Contributions to Government
CHAPTER 5—BINARY INTERVENTION: GOVERNMENT EXPENDITURES
1. Government Subsidies: Transfer Payments
2. Resource-Using Activities: Government Ownership versus Private Ownership
3. Resource-Using Activities: Socialism
4. The Myth of “Public” Ownership
Appendix: The Role of Government Expenditures in National Product Statistics
CHAPTER 6—ANTIMARKET ETHICS: A PRAXEOLOGICAL CRITIQUE
1. Introduction: Praxeological Criticism of Ethics
2. Knowledge of Self-Interest: An Alleged Critical Assumption
3. The Problem of Immoral Choices
4. The Morality of Human Nature
5. The Impossibility of Equality
7. Alleged Joys of the Society of Status
9. The Charge of “Selfish Materialism”
A. “Other Forms of Coercion”: Economic Power
B. Power Over Nature and Power Over Man
13. The Traffic-Manager Analogy
14. Over- and Underdevelopment
15. The State and the Nature of Man
16. Human Rights and Property Rights
Appendix: Professor Oliver on Socioeconomic Goals
A. The Attack on Natural Liberty
B. The Attack on Freedom of Contract
C. The Attack on Income According to Earnings
CHAPTER 7—CONCLUSION: ECONOMICS AND PUBLIC POLICY
1. Economics: Its Nature and Its Uses
2. Implicit Moralizing: The Failures of Welfare Economics
3. Economics and Social Ethics