Factors of Production are economic goods: scarce means used to achieve an individual’s ends. They are land, labor and capital. Each is examined. Incomes are earned by factor owners as production takes place. There is no separated production and distribution.
What principles determine the formation of prices on the free market? The equilibrium price between supply and demand determines prices according to the value scales of sellers and buyers and their elastic or inelastic positions.
Government involvement accounts for the internet's continuing problems, while the market should get the credit for its glories.
What the UAW has done, on the foundation of coercive, interventionist labor legislation, is bring a once-great company to its knees.
Hans-Hermann Hoppe explains the neglected role of insurance in a free market economy. Any insurance involves the pooling of individual risks by the market, a task the state can only distort.
Today’s college students may never learn the principles of supply and demand, or understand how many billions of dollars companies like Wal-Mart save American consumers (including their own families), but they are indoctrinated as freshmen that any “moral” person should hate “outlaw” corporations (as defined by the union movement).
Only in a model with multiple goods can one fully appreciate the "Austrian" approach to capital and interest theory.
Tim Harford offers an interesting analysis of the great XBox shortage of 2005.
