The "Poisoned Spring" of Economic Libertarianism: Menger, Mises, Hayek, Rothbard: A Critique from Catholic Social Teaching of the 'Austrian School' of Economics
________________________________________ ANGUS SIBLEY studied mathematics and economics at Edinburgh University and later qualified as an actuary. Pursuing a career in investment, he became a member of the London Stock Exchange. Now retired, he lives with his wife Aurora in Paris.  He has long been concerned by the damaging effects on our economies and societies of the doctrinaire application of free-market theory, and has published many articles on this subject in newspapers and journals in Britain, America, France and Ireland.  Many of his essays on economic and other topics can be found on his personal website:              www.equilibrium-economicum. ________________________________________          His recent book "THE POISONED SPRING" OF ECONOMIC LIBERTARIANISM," critiques  ‘libertarian’ economic theory and practice, both from the  viewpoint of practical economics and from Catholic teaching.  Summarizing his argument, he writes: "Capitalism is like the electric motor traditionally used in subway trains: a very useful machine which has the peculiarity that it must never be allowed to run free when not connected to the wheels of a train.  For without the restraint due to the train’s inertia, the motor will accelerate wildly till its rotating centre disintegrates. That does not mean that the motor is defective; it simply means that it only works properly under restraint. Likewise, our markets, when allowed to operate without an adequate framework of limitations, tend to run wild; they become financially, economically and socially destructive. Yet many economists, particularly those of the ‘Austrian school’, reject this principle. They call for deregulated, unhampered markets under minimal political control. By heeding these theorists, we have got ourselves into deep trouble.  It is important that we understand why this ideology, so widely accepted, often subconsciously, is fundamentally flawed and particularly unsuited to the needs of our times. Catholic Social Teaching offers an alternative approach to economics.  It insists upon firm and effective regulation of markets, refuses to regard labor as mere merchandise, and highlights the vital importance of politics in creating a just society." ________________________________________