Principles of Economics.

– Capitalism is defined by the private ownership of capital goods and the ability to freely buy, sell, and allocate capital.

– The stock market is a key feature of capitalist economies, as it allows for the trading of capital as a financial asset.

– Capitalism is an entrepreneurial system, not just a managerial one. The roles of capitalist, entrepreneur, and manager are distinct.

– The entrepreneur’s function of allocating capital is essential for economic calculation and efficient production. This cannot be replicated by central planning.

– Private property rights are inseparable from the capitalist system and the ability to perform economic calculation.

– The socialist calculation problem, identified by Mises, demonstrates the inability of central planners to rationally allocate resources without market prices and private property.

– Attempts by socialists to simulate market mechanisms through “pretend” prices and calculations fail to replicate real economic decision-making.

– Many mainstream economics textbooks and models are flawed by an underlying assumption that central planning can replicate the functions of the market.

– Capitalism encourages savings, investment, and productivity growth by rewarding those who allocate capital efficiently.

– Capitalism promotes peaceful cooperation by incentivizing individuals to engage in mutually beneficial market transactions.