Glossary
Capitalism: An economic system based on private ownership of the means of production and voluntary exchange in free markets.
Classical liberalism: A political philosophy emphasizing individual liberty, limited government, free markets, and the rule of law.
Economic calculation problem: Mises’s argument that central planners lack the price signals needed to allocate resources rationally without a functioning market.
Laissez-faire: French for “let do” or “let be”; an economic policy of minimal government interference in markets.
Objectivism: The philosophical system developed by Ayn Rand, encompassing objective reality, reason, rational self-interest, and laissez-faire capitalism.
Rational self-interest: The Objectivist ethical principle that one’s own life and happiness is one’s proper moral purpose, pursued through reason rather than whim or force.
Shock therapy: A rapid, comprehensive program of economic liberalization, as opposed to a gradual, incremental approach.
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