The answer to that question is --- "more than ever!" This blog site is devoted to Austrian economics and not the libertarian implications of the persistent and consistent application of Austrian economics. The writers on this blog are adamant that it is a mistake to confuse Austrian economics with libertarian economics. However, concepts developed within the Austrian framework (and economic science more broadly defined) such as individual choice, opportunity cost, rational economic calculation, local knowledge, profit motive, private versus public ownership, clash of group interests, law of association, importance of public ideology, bureaucracy, etc. are all essential for helping us understand crises and how individuals respond in the wake of them. And as our understanding improves, we come to realize that government is the source of our problems not the solution.
I may disagree with the Mises Institute on a variety of issues, but in the wake of the crisis of 9/11 and now the flood and subsequent crisis in New Orleans, Lew Rockwell has hit the nail on the head, and provided sound reasoning on the causes of the crises, and upheld the libertarian principle of individual freedom and non-aggression as the best response to the crises. Rockwell's position doesn't derive just from repeating slogans and moral appeals to first principles, but through an examination of history, economics and an understanding of the nature of politics. Reason On-Line provides "New Orleans" links, which contains a link to Michael Barnett's blog on surviving New Orleans --- Michael is the son of Loyola University economics professor William Barnett (a great teacher of Austrian economics).
Tyler Cowen at Marginal Revolution also provides a useful economic perspective on the situation in New Orleans. Though as is typical of Tyler's writings, it is the questions he raises more than the answers he provides that are stimulating. Arnold Kling and Bryan Caplan have a few interesting things to say about markets in the wake of crisis at EconLog -- though I must confess that I am much more satisfied with Caplan's unsubtle message to politicians throughout the world that "if you want supplies to flow to disaster areas, let prices rise" than Kling's proposed solution of entrusting government to set price floors or ceilings to "curtail unnecessary driving" and "tamp down panic buying by idiots".
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