Depression Is The Aftermath Of Credit Expansion.

In Spite Of The Anticapitalistic Policies Of All Governments And Of Almost All Political Parties, The Capitalist Mode Of Production

One Day, Because They Realize For Some Reason Or Other That They Must Stop Credit Expansion, The Banks Do Stop Creating New Credit To Lend. Then The Firms That Have Expanded Cannot Get Credit To Pay For The Factors Of Production Necessary For The Completion Of The Investment Projects Which They Have Already Committed Themselves. Because They Cannot Pay Their Bills, They Sell Off Their Inventories Cheap. Then Comes The Panic, The Breakdown. And The Depression Starts.

Everybody Thinks Of Economics Whether He Is Aware Of It Or Not. In Joining A Political Party Or In Casting His Ballot, The Citizen Implicitly Takes A Stand Upon Essential Economic Theories.

Private Property Creates For The Individual A Sphere In Which He Is Free Of The State. It Sets Limits To The Operation Of The Authoritarian Will.

Monetary Calculation Is Not The Calculation, And Certainly Not The Measurement, Of Value. Its Basis Is The Comparison Of The More Important And The Less Important. It Is An Ordering According To Rank, An Act Of Grading (cuhel), And Not An Act Of Measuring. It Was A Mistake To Search For A Measure Of The Value Of Goods. In The Last Analysis, Economic Calculation Does Not Rest On The Measurement Of Values, But On Their Arrangement In An Order Of Rank.