WHERE MRS. VON DER LEYEN IS WRONG (LIKE ANY OTHER BUREAUCRAT)
DOI:
https://doi.org/10.52195/pm.v21i2.968Abstract
The European Union was born with the aim of being just a simple trading space without barriers, a common market (a step beyond a mere tariff union; a system of cooperation between states to achieve freedom of movement of goods, capital and people). However, increasingly, bureaucrats and officials (believing that its aim should be different) tend to regulate, overregulate and coercively standardize all aspects of citizens’ lives. There are even those who presume that the comparative advantage of the EU would be precise “regulation” (the bureaucratic regulatory technique).1
In this sense we have chosen or pointed out Mrs. Ursula Von der Leyen as an example of the typical benevolent bureaucrat or technocrat, that however, if you let them, end up hyperregulating everything (convinced of having superior knowledge not only regarding the purposes but also as to the effective ways of achieving them). Along such a line we point out that the main conceptual error of bureaucrats has to do with the consideration of value as an objective reality (fixed and given).2 In front of such a cosmovision, the Austrian School shows how value is instead subjective, ordinal and decided at the margin of human action; market prices, by its side, appear and become informally standardized around spontaneous, non-coercive institutions (which in its turn emerge also from non-coercive decentralized human action itself). The whole process involves a decentralized path of coordination and tentative knowledge in which we all participate.
Therefore, in this work, we will proceed to sketch and summarize the Austrian School’s explanation of the functioning of market processes, their keys, and how they become constrained by coercive intervention in different modalities, and its corresponding effects (regarding all groups of people and regarding all the effects, those that are seen and those that are not seen, or appear later, as Bastiat explained). This approach will allow us to rethink the main problems and objectives involved in the centralized and bureaucratic management of society (and the different options that remain open for this task).
Downloads
References
Böhm-Bawerk, E. (1888): The Positive Theory of Capital, Book IV “Price” (this reference is centred exclusively on the market price formation process as explained in such a specific section).Böhm-Bawerk, E. (1914): “Control or Economic Law?”, in Shorter Classics of Böhm-Bawerk, vol. I, Frederick Nymeyer ed., South Holland, Illinois, Libertarian Press Inc. (1962), pp. 137-199. Bueso, J. (2016): “Intervención coactiva en el mercado: procesos, modalidades y efectos”, Procesos de Mercado, vol. XIII, nº 1, pp. 165-197.Bueso, J. (2019): “El ‘método’ o proceso científico como función empresarial: una nueva aplicación de la teoría del conocimiento de Huerta de Soto”, Procesos de Mercado, vol. XVI, nº 2, pp. 221-239.Burrow, J.W. (1969): “Editor’s Introduction to Von Humboldt’s ‘The Limits of State Action’”, in Von Humboldt The Limits of State Action, pp. xvii-lviii. Humboldt, W. ([1792] 1851): The Limits of State Action (posthumously published from the manuscript “Ideas for an Attempt to Determine the Limits of the Effectiveness of the State”), Indianapolis, Liberty Fund.
MacIntyre, A. (1981 [1984]): After Virtue, University of Notre Dame Press (2nd edition).Mueller, A. P. (2023): “Wilhem von Humboldt’s Demarcation of the Limits of State Activity”, Mises Daily, June 23. Shaffer, B. (2009): Boundaries of Order, Auburn, Ludwig von Mises Institute.Tullock, G. (1966): The Organization of Inquiry, Liberty Fund (2005 ed.; The selected works of G. Tullock, volume 3) Von der Leyen, U. (2019): A Union that strives for more. My Agenda for Europe (Political guidelines for the next European Commission 2019-2024).