By Guinevere Liberty Nell (auth.)
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Extra info for Austrian Theory and Economic Organization: Reaching Beyond Free Market Boundaries
Economists, on the other hand, often think of unemployment as a labor surplus problem that emerges when the quantity of labor supplied at a market wage is higher than the quantity of labor demanded. Market organization is commonly idealized in the sense that it is assumed to produce full employment as an equilibrium state. As long as markets are thought to clear, economists tend to ignore the problem of unemployment. The fact that noneconomists and economists concern themselves with fundamentally different concepts of unemployment is an impediment to deriving useful insights from these labor surplus models of unemployment.
The designers of social insurance did not intend for their programs to weaken family bonds. Meanwhile, if people are less dependent on their children for support in old age, there is less incentive to have children, which has contributed to a decline in the birth rate in modern welfare states. Again, no normative judgment is implied regarding the lower birth rate, but because these social insurance programs were designed with the idea that taxes on working people would support elders, the lower birth rate has had the unintended consequence of undermining the financing of the planned order.
Htm. Friedman, David. 1973. The Machinery of Freedom. Chicago: Open Court Press. Gwartney, James, Robert Lawson, and Joshua Hall. 2012. Economic Freedom of the World, 2012 Annual Report. Vancouver: Fraser Institute. Hayek, Friedrich A. 1948. Individualism and Economic Order. Chicago: University of Chicago Press. ———. 1967. Studies in Philosophy: Politics and Economics. London: Routledge and Kegan Paul. Holcombe, Randall G. 1994. The Economic Foundations of Government. New York: New York University Press.
Austrian Theory and Economic Organization: Reaching Beyond Free Market Boundaries by Guinevere Liberty Nell (auth.)