Economics of the Free Society

Economics of the Free Society

By:

Wilhelm Röpke

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Summary

One year before the Nazi takeover of Austria, and after Mises had already accepted a research position in Geneva, a remarkable book began to circulate in what remained of Vienna's intellectual circles. It was Die Lehre von der Wirtschaft, The Economics of the Free Societyby Wilhelm Röpke.

If the Austrian economists had a textbook on economic theory and policy in these years, Röpke had written it. It was a summary of the present state of opinion on monetary theory, price theory, the business cycle, and method. Röpke emerges here as thoroughgoing Misesian, a stalwart advocate of capitalism and free trade, and a fierce critic of protectionism and every manner of government interference with the economy.

The book made a huge impression in Austria, and one that the Gestapo did not like. In 1939, the book was declared contraband, the offices of the publisher broken into, and all copies destroyed. After the war, the book was a huge success in Germany, and went through nine editions, serving, in many ways, as the guidebook to the German economic miracle. Far from watering down the book with successive editions, Röpke improved it by refuting fallacies that cropped up in economics: positivism, Keynesian planning, unionism, and much more. It was also translated into Italian, Finnish, and Swedish.

The English edition finally appeared in 1962, but it has been out of print for many years. In the meantime, it has become something of an urban myth that Wilhelm Röpke was an advocate of a "third way" between capitalism and socialism, and that he favored a wide range of interventionist measures.

This view is impossible to sustain in light of this sweeping defense of economic freedom.

Summary courtesy of the Ludwig von Mises Institute. The Mises Institute is the premier organization in support of the free market, peace and prosperity. They provide free educational material, books audio books, lectures and courses that free your mind. This site would not exist were it not for the generosity, hard work and dedication of the Mises Institute, its employees, fellows and its benefactors. Books of Liberty is eternally grateful to all of their work and efforts. Please consider supporting the Mises Institute in any way you can.

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