Before the Russian Revolution of 1917, “socialism” and “communism” were synonyms. Both referred to economic systems in which the government owns the means of production. The two terms diverged in meaning largely as a result of the political theory and practice of Vladimir Lenin (1870–1924). Like most contemporary socialists, Lenin believed that socialism could not […]
The Library of Economics and Liberty carries the popular Concise Encyclopedia of Economics, edited by David R. Henderson.
This highly acclaimed economics encyclopedia was first published in 1993 under the title The Fortune Encyclopedia of Economics. It features easy-to-read articles by over 150 top economists, including Nobel Prize winners, over 80 biographies of famous economists, and many tables and charts illustrating economics in action. With David R. Henderson’s permission and encouragement, the Econlib edition of this work includes links, additions, and corrections.
Consumers pay a higher price for brand-name products than for products that do not carry an established brand name. Because this involves paying extra for what some consider an identical product that merely has been advertised and promoted, brand names may appear to be economically wasteful. This argument was behind the decision to eliminate all […]
“ Capitalism,” a term of disparagement coined by socialists in the mid-nineteenth century, is a misnomer for “economic individualism,” which Adam Smith earlier called “the obvious and simple system of natural liberty” (Wealth of Nations). Economic individualism’s basic premise is that the pursuit of self-interest and the right to own private property are morally defensible […]
Many people believe that only government intervention prevents rampant discrimination in the private sector. Economic theory predicts the opposite: market mechanisms impose inescapable penalties on profits whenever for-profit enterprises discriminate against individuals on any basis other than productivity. Though bigoted managers may hold sway for a time, in the long run the profit penalty makes […]
Some of the most significant tax changes in recent years have concerned the taxation of capital income. In 2003, Congress cut the top tax rate on dividends to 15 percent—significantly greater than the zero dividend tax that President George W. Bush wanted, but far below the 40 percent many high-income individuals paid in 2000. The […]
As the category\'s name suggests, entries in this category are on important historical developments, two of the main ones being the Industrial Revolution and the Great Depression.
These deal with various issues in law and economics such as antitrust, liability, and intellectual property.
With the decline in transportation costs, especially across oceans, and with the worldwide decline in trade barriers, international trade has become even more important. Topics include free trade, protectionism, foreign exchange, and international capital flows.
This category ranges widely over various government policies, but mainly covers economy-wide policies on taxes, government spending, government debt and deficits, redistribution, welfare, and monetary policy.
From the mid-1970s until his death in 1990, Ludwig Lachmann played a central role in reinvigorating interest in the Austrian School as a viable alternative to the reigning neoclassical approach to economic analysis. He, along with Murray Rothbard and Israel Kirzner, helped foster a revival that continues to this day and owes much to Lachmann’s […]
In 2009, Elinor Ostrom, along with oliver e. williamson, was awarded the Nobel Prize in economics. Ostrom, the only woman to ever win the prize, received it “for her analysis of economic governance, especially the commons.” She demonstrated “how local property can be successfully managed by local commons without any regulation by central authorities […]