Advanced Topics in Liberty

Economics from Smith to Friedman

Conference for Students - September 30-October 2, 2011

The goal of this conference is to introduce participants to classic authors and key concepts in free market economics. The intention is to go beyond basic matters of supply and demand and efficiency concerns to consider the broader social and institutional ramifications of a free market system.

Discussion Leader - Tawni Ferrarini, Professor of Economics, Northern Michigan University

Session I - Division of Labor

Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations, Volume I. Indianapolis: Liberty Fund, Inc., 1982. Book I, Chapter 1, “Of the Division of Labour” (pages 13–24), Chapter 2, “Of the Principle which gives occasion to the Division of Labour” (pages 25–30), and Chapter 3, “That the Division of Labour is limited by the Extent of the Market” (pages 31–36).

Marx, Karl. The German Ideology: Part One, with selections from Parts Two and Three, together with Marx’s “Introduction to a Critique of Political Economy”. Edited by C. J. Arthur. London: Lawrence & Wishart, 1974, 2004. Part C, “The Real Basis of Ideology” (pages 68–81).

Session II - Production and Trade

Ricardo, David. The Works and Correspondence of David Ricardo, Volume 1: On the Principles of Political Economy and Taxation. Indianapolis: Liberty Fund, 2004. Chapter 7, “On Foreign Trade” (pages 128–149).

Smith, Adam. The Theory of Moral Sentiments. Indianapolis: Liberty Fund, Inc., 1982. Part VI, Section I, “Of the Character of the Individual, so far as it affects his own Happiness; or of Prudence” (pages 212–217) and Section II, “Of the Character of the Individual, so far as it can affect the Happiness of other People” (pages 218–227).

Tucker, Robert C., eds. The Marx-Engels Reader, Second Edition. New York: W.W. Norton & Company, 1978. Selection from Part I, “Economic and Philosophic Manuscripts of 1844” (pages 70–81).

Session III - Protectionism

Bastiat, Frédéric. Economic Sophisms. Irvington-on-Hudson: Foundation for Economic Education, 1996. Chapter 7, “A Petition” (pages 56–60), Chapter 9, “An Immense Discovery!” (pages 63–66), Chapter 10, “Reciprocity” (pages 67–69), and Chapter 17, “A Negative Railroad” (pages 94–95).

List, Frederich. The National System of Political Economy. London: Longmans, Green, and Co., 1909. Book II, Chapter 14, “Private Economy and National Economy” (pages 125–131).

Session IV - Capitalism and the Market Economy

von Mises, Ludwig. The Anti-capitalistic Mentality. Indianapolis: Liberty Fund, Inc., 2006. Chapter 2, “The Ordinary Man’s Social Philosophy” (pages 21–28).

Rogge, Benjamin A. Can Capitalism Survive?. Indianapolis: Liberty Fund, 1979. Part I, Chapter 1, “Can Capitalism Survive?” (pages 15–36), and Part IX, Introduction (pages 285–286), Chapter 1, “The Businessman and the Defense of Capitalism” (pages 287–300), and Chapter 2, “Reflections on the Election of 1964” (pages 301–306).

Session V - Laissez-faire

Hayek, Friedrich A. “The Use of Knowledge in Society.” The American Economic Review 35, no. 4 (September 1945): 519–530.

Keynes, John Maynard. Essays in Persuasion. New York: W. W. Norton & Company, 1991. Part IV, Chapter 2, “The End of Laissez-Faire (1926)” (pages 312–322), and Chapter 3, “Am I a Liberal? (1925)” (pages 323–338).

Session VI - Economic Crises

Rothbard, Murray N. America’s Great Depression, Fifth Edition. Auburn: Mises Institute, 2000. Chapter 1, “The Positive Theory of the Cycle” (pages 3–36).

Friedman, Milton and Rose Friedman. Free to Choose: A Personal Statement. San Diego: Harcourt Brace Jovanovich, 1990. Chapter 3, “The Anatomy of Crisis” (pages 70–90).