• 00:01    |    
    Initial credits
  • 00:20    |    
    Introduction by Ramón Parellada
  • 01:22    |    
    Conference outline by Israel Kirzner
  • 02:37    |    
    • Socialists
    • Interventionism
  • 05:31    |    
    Austrian case against government intervention
    • Non-Austrian arguments against government regulation
    • Disadvantages of humans as agents of regulation
    • Scarcity of resources as a limitation
    • Quotes n , Henry Hazlitt
    • Lack of recognition of consumers' preferences
    • Cost of regulation
    • Austrian perspective
      • Analysis
      • Main argument against Austrian perspective
  • 17:37    |    
    Comparison between Austrian and Neoclassical perspectives on market prices
    • Neoclassical perspective
    • Prices as signals
    • Austrian perspective
      • Prices as not perfectly adjusted signals
      • Prices as signals for entrepreneurs
      • Stimulating entrepreneurial discovery
      • Quotes Friedrich A. Hayek
  • 28:35    |    
    Explanation about regulation
  • 31:42    |    
    Austrian understanding of discovery procedure
    • Undiscovered discovery process
    • Unsimulated discovery process
      • Problem of knowledge
      • Minimum wage example
      • Reasons governments cannot simulate discovery
    • Stifled discovery process
    • Graphic example of losses from regulation
    • Superfluous discovery process
  • 50:43    |    
    Dangers of regulation
  • Results of interfering the market
  • 52:43    |    
    Final words
  • 53:10    |    
    Question and answer period
    • Is rent seeking a superfluous discovery process based on government regulation? What is your opinion when government paternalism is focused onn the financial sector?
    • Can we say that insights against regulators from the Austrian perspective are derived from an extension of something general?
    • How to implement Austrian thought in Guatemalan economy?
    • What about externalities?
    • What kind of property rights could you establish in order to protect the environment and that sort of things?
    • Could you elaborate on the idea of a government regulating another country's activities?
    • Could you explain the relationship between government intervention and the Austrian business cycle?
    • Do you think that the teaching method of using historical examples of flourishing countries is the best to show the gains of deregulation?
  • 01:16:27    |    
    Final credits

An Austrian Case against Government Regulation

New Media  | 01 de agosto de 1996  | Vistas: 278

Israel Kirzner elaborates on the outcome of governments imposing regulations that are not needed in a country’s market, listing many of the problems derived from said action, such as the existence of minimum wage, child labor, tariff, and price fixing laws, to mention a few.

He thoroughly explains the differences existing between the Austrian and the Neoclassical economic theories regarding this subject, which ultimately refer to the knowledge of ones and the lack of knowledge and assumptions of the others; stating, as well, the non-Austrian arguments against ruling, making a comparison with those of the Austrian perspective and pointing out that for the theorists of the latter, every action enables entrepreneurs to reallocate resources where they will be better used.

Kirzner stresses that the market is a discovery procedure and comments on the four aspects of regulation that reflect a failure to its understanding, such as the undiscovered, unsimulated, stifled, and the superfluous discovery processes. Additionally, he states that even though he has not proven that market regulation is immoral or even inefficient, it is the responsibility of economists to draw attention of its dangers, in order for public officials and citizens to be aware.


Israel Kirzner is a leading economist of the Austrian School of…


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín