Ludwig von Mises

Ludwig von MisesLudwig Heinrich Edler von Mises (1881-1973) was an Austrian economist and Professor at the universities of Vienna, Geneva and New York.  Mises greatly contributed to neoclassical economics and was one of the leaders of the Austrian school.

Mises was a staunch advocate of economic liberalism, based on the idea that demand and supply theory will lead to the resources’ most efficient allocation. He believed socialism would fail due to economic calculation problems, as it wouldn’t be able to produce an efficient price system. In his “Human Action: A Treatise on Economics”, 1949, he analyses both economic systems. His defence of the classical school led him to argue that any separation from orthodoxy would lead to socialism and the end of capitalism.

Mises also worked in the analysis of economic cycles, particularly in the monetary aspects, and his influences were clearly felt in two of the most notable members of the Chicago school: Friedrich A. von Hayek and Milton Friedman.