Basic Course on Libertarianism and the Austrian School of Economics

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Last updated: 2026-08-02

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• To keep it short, here is a one-page summary of the course
  • -> Summary of the Basic Course on Libertarianism and the Austrian School of Economics

For the details, keep reading below.

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The Basic Course on Libertarianism and the Austrian School of Economics focuses on describing what Libertarianism is, and includes:

• Philosophical basis of the ideas of Liberty and their comparison with Collectivism
• History of libertarianism
• Ethical basis
• Core concepts of political institutions
• Main economic schools
• Main concepts of Austrian Economics.

In this course only the basics of each type of Collectivism will be named; the details of each form are left for the Intermediate course on Libertarianism and the Austrian School of Economics.

Libertarianism and its opposites are closely related; talking about one without the other almost makes no sense. But in order to define the concepts more clearly and not mix everything together, the courses were structured in this format.

Module 1: Required foundational topics

• Ideas / Ideology
• Weaknesses of our brain

The philosophical basis of Liberty

• Subjectivism
• Individualism
• Abstract Ethics
• Liberty

Collectivisms

The great problem of our century remains the battle of ideas between Liberty (Subjectivism + Individualism) and Collectivism (Tribalism, Objectivism).

Here we describe the foundations of collectivist ideas.

• Tribalism
• Objectivism (in the Social Sciences)
• Collectivism

Liberty vs Collectivisms

Left and right are concepts created to confuse; the true battle of ideas is: Individual Liberty vs Collectivisms.

• Libertarianism versus Collectivism
• Aristotelian Realism

What each idea produces:

• Maturity vs Infantilism
• Collectivism and Contempt for Human Intelligence

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Module 2: Libertarianism and its ethical foundations

Definitions and ethical foundations

• Definition of Libertarianism
• Liberal ethical currents
• Ethical basis of libertarianism
• Principles of libertarianism
• Origins of libertarianism

Thinkers and schools of philosophy

• Aristotle and Libertarianism
• Natural Law (IusNaturalism)
• The School of Salamanca
• The Whigs
• John Locke (1632-1656)

Optional reading for module 2

• Hugo Grotius (1583–1645)
• Samuel von Pufendorf (1632–1694)

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Module 3: Political Institutions

• The State
• Evolution and justification of the State
• The Republic
• Federalism
• Democracy
• Representativeness
• Parliamentary vs Presidential System

Optional reading for module 3

• Thomas Hobbes (1588–1679)
• Montesquieu (1689-1755)
• Voltaire (1694-1778)
• Rousseau (1712–1778)

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Module 4: Main Schools of Economics

• Classical School of Economics
• Neoclassical School of Economics
• Austrian School of Economics
• Chicago School

• Comparison of economic schools

• Keynesianism, Marxism, and other schools are covered in the intermediate course, not here.

Precursor / Cantillon School

• Richard Cantillon (1680–1734)

Classical School

• Adam Smith (1723-1790)
• Jean-Baptiste Say (1767–1832)
• David Ricardo (1772-1823)

Austrian School

• Frédéric Bastiat (1801-1850)
• Carl Menger (1840–1921)
• Eugen von Böhm-Bawerk (1851-1914)
• Ludwig von Mises (1881-1973)
• Friedrich Hayek (1899-1992)
• Murray Rothbard (1926–1995)
• Robert Nozick (1938-2002) (He was a philosopher, not an economist)

Chicago School

• Milton Friedman (1912–2006)

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Module 5: Austrian Economics and the Free Market

Foundational ideas

• Subjective theory of value
• Scarcity
• Praxeology (human action)
• Private property
• Medium- and Long-Term Vision
• Relationship between the Austrian School and Libertarianism

Collectivist counterpart

• Loss of Incentives to Produce
• The Tragedy of the Commons
• Short-Term Vision

Poverty and Wealth

• Poverty and Wealth
• The Malthusian Trap

Private property and incentives

Main concepts

• Diminishing Marginal Utility
• Dispersed knowledge
• Spontaneous Order
• The price mechanism
• Economic calculation
• I, Pencil

Free-Market Economy

"Free market" has the same meaning as "Pure Capitalism", "Market Economy", "Free-Market Economy" or "Free-Market Capitalism", and perhaps even "Anarcho-capitalism". However, because the word "Capitalism" has been distorted, we will clarify the issue in this module.

• Free Market
• The efficiency of the Free Market
• Achievements of the Free Market for Humanity
• Examples of Free Market success

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Module 6: Collectivist Catastrophes

Although the details of collectivism are a specific topic of the next course -> Intermediate course on Libertarianism and the Austrian School of Economics, we will leave here a summary of the Collectivist Catastrophes, as a point of comparison with the Free Market.

• Central planning
• List of Collectivist Catastrophes

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Last updated: 2026-08-02

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