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1、FOREWORDTOFOURTHEDITIONMises’contributionwasverysimple,yetatthesametimeextremelyprofound.Hepointedoutthatthewholeeconomyistheresultofwhatindividualsdo.Individualsact,choose,cooperate,compete,andtradewithoneanother.InthiswayMisesexplainedhowcomplexmarketp
2、henomenadevelop.Misesdidnotsimplydescribeeconomicphenom-ena—prices,wages,interestrates,money,monopolyandeventhetradecycle—heexplainedthemastheoutcomesofcountlessconscious,purposiveactions,choices,andpreferencesofindividuals,eachofwhomwastryingasbestasheo
3、rshecouldunderthecircumstancestoattainvariouswantsandendsandtoavoidundesiredconsequences.HencethetitleMiseschoseforhiseconomictreatise,HumanAction.Thusalso,inMises’view,AdamSmith’s“invisiblehand”wasexplainableonthebasisoflogicandutilitarianprinciplesasth
4、eoutcomeofthecountlessactionsofindividuals.SprinkledthroughoutMises’scholarlyanderuditeexplanationsofmar-ketoperationsaremanycolorfuldescriptionsofeconomicphenomena.Forinstance,onthedifferencebetweeneconomicandpoliticalpower:“A’chocolateking’hasnopowerov
5、ertheconsumers,hispatrons.Heprovidesthemwithchocolateofthebestqualityandatthecheapestprice.Hedoesnotruletheconsumers,heservesthem.Theconsumers...arefreetostoppatronizinghisshops.Heloseshis’kingdom’iftheconsumersprefertospendtheirpennieselsewhere.”(p.272)
6、Onwhypeopletrade:“Theinhab-itantsoftheSwissJuraprefertomanufacturewatchesinsteadofgrowingwheat.Watchmakingisforthemthecheapestwaytoacquirewheat.OntheotherhandthegrowingofwheatisthecheapestwayfortheCanadianfarmertoacquirewatches.”(p.395)ForMisesapriceisar
7、atioarrivedatonthemarketbythecompetitivebidsofconsumersformoneyontheonehandandsomeparticulargoodorserviceontheother.Agovernmentmayissuedecrees,but“Agovernmentcannomoredeterminepricesthanagoosecanlayhen’seggs.”(p.397)InMises’view,theinequalityofmenwastheb
8、eginningofpeacefulinterpersonalsocialcooperationandthesourceofalltheadvantagesitbrings:“Theliberalchampionsofequalityunderthelawwerefullyawareofthefactthatmenarebornunequalandthatitispreciselytheirinequalitythatgeneratesso
