George Reisman

George Reisman – Life, Career, and Famous Quotes

Discover the life, work, and economic philosophy of George Reisman — American economist, advocate of laissez-faire capitalism, author of Capitalism: A Treatise on Economics. Explore his biography, contributions, and memorable quotes.

Introduction

George Gerald Reisman (born January 13, 1937) is an American economist known for his strong defense of free markets and what might be called a classical-Austrian synthesis. He is Professor Emeritus of Economics at Pepperdine University, and the author of works such as The Government Against the Economy (1979) and Capitalism: A Treatise on Economics (1996).

Reisman’s thought combines rigorous economic analysis with a moral defense of capitalism. His perspective has been influenced by luminaries like Ludwig von Mises and Ayn Rand.

This article delves into his early life, intellectual development, major ideas, legacy, and a selection of his notable quotes.

Early Life and Family

George Reisman was born in New York City on January 13, 1937. He later attended Columbia College, graduating in 1957.

While details of his family background are less emphasized in public sources, his academic trajectory suggests an early exposure to serious intellectual currents in economics and philosophy.

Education & Intellectual Formation

Reisman pursued graduate work in economics at New York University (NYU), where he studied under the mentorship of Ludwig von Mises, a leading figure in the Austrian School. He also translated Mises’s The Epistemological Problems of Economics from German to English.

Beyond technical economics, Reisman was deeply influenced by Ayn Rand’s philosophy of Objectivism. He self-identifies as an Objectivist, though his relationship with the Ayn Rand Institute later became distant.

His intellectual influences also include classical economists (Adam Smith, David Ricardo) and Austrian theorists (Carl Menger, Böhm-Bawerk). He sought to integrate classical and Austrian theory into a coherent worldview that both explains economic phenomena and defends capitalism morally.

Career and Contributions

Academic Career & Teaching

Reisman spent much of his academic career at Pepperdine University, where he eventually became Professor Emeritus of Economics. In his teaching, he focused heavily on engaging students with the foundational works of economics, stressing clarity of definitions, the logic of production, capital structure, and the institutions that undergird market order.

He also actively lectured and participated in conferences, especially those related to classical liberalism, Austrian economics, and Objectivist philosophy. In the 1980s, together with his wife h Packer, he helped found the Thomas Jefferson School of Philosophy, Economics, and Psychology, which hosted conferences linking economic theory, philosophy, and psychology.

Major Works & Theoretical Contributions

Reisman’s key published works include:

• The Government Against the Economy (1979) — a critique of government interventions (price controls, inflationary finance, regulation) and how they undermine economic coordination and living standards.

• Capitalism: A Treatise on Economics (1996) — his magnum opus, aiming to unify classical and Austrian insights into a systematic defense of capitalism.

In Capitalism, Reisman elaborates a theory of profit, interest, capital accumulation, and real wages, and argues for the primacy of profit as a signal in the economy. He integrates subjective value theory (Austrian approach) with classical concerns about cost, distribution, and growth.

He also advanced the “net consumption” theory of profit, as well as arguments about how capitalism, properly understood, supports sustained real wage growth.

Reisman has often been critical of Keynesian, interventionist, and social democratic policies, arguing that many well-intentioned regulations produce unintended distortions, especially when they reduce incentives to save and invest.

He saw capitalism not merely as an efficient system, but as morally rightful — a system consistent with individual rights, property, and rational self-interest.

Historical Context & Significance

• Reisman’s work emerges in the latter half of the 20th century when Keynesian and interventionist thought dominated. His defense of laissez-faire economics provides a counterpoint grounded in classical and Austrian traditions.

• His blending of economic theory and moral philosophy links him to a tradition of economists who believe the case for capitalism must stand both on analytical and normative grounds.

• As academic institutions shifted more toward macroeconomic and mathematical formalism, Reisman’s style remained unapologetically conceptual, emphasizing logical clarity and real-world implications.

• He played a bridging role in integrating libertarian and Objectivist thinkers with the Austrian tradition.

Legacy and Influence

George Reisman’s legacy is multifaceted:

1. Comprehensive System for Capitalism: His Treatise remains one of the few modern attempts to present a fully integrated case for capitalism from both the economic and moral perspectives.

2. Intellectual Influence: He has influenced students, scholars, and activists in libertarian, Austrian, and Objectivist circles who seek rigorous economic foundations for pro-market advocacy.

3. Pedagogical Impact: Through his teaching and the Thomas Jefferson School, he contributed to spreading the classical liberal tradition among new generations.

4. Durability of Ideas: His critiques of interventionism, defenses of profits, and cautions about government overreach continue to be cited in debates about monetary policy, regulation, welfare state expansion, and environmental regulation.

5. Bridge between Traditions: By merging classical and Austrian ideas and tying economics to moral philosophy, he serves as a bridge for those skeptical of narrow specialization in economics.

Personality, Style & Talents

Reisman is known for clarity of exposition, logical rigor, and a commitment to truth in theory and argument. His writing avoids unnecessary technical complexity when possible, aiming to make deep ideas accessible.

He maintains a philosophical seriousness in economics — viewing economic systems as grounded not only in mechanistic relationships, but in values, human purpose, and rights.

His method emphasizes definitions, consistent chains of reasoning, and attention to consequences. He often uses illustrative numerical examples to show how individual decisions aggregate into broader macroeconomic phenomena.

In personal life, he collaborated closely with his wife, h Packer, who is a psychologist; they jointly fostered connections across economics, philosophy, and psychology.

Though somewhat less known in mainstream economics, within his intellectual circles he is respected for the depth and integrity of his work.

Famous Quotes of George Reisman

Below are several notable quotations attributed to George Reisman. Some reflect his economic philosophy plainly; others combine moral critique and ideological stance:

“Under capitalism each individual engages in economic planning.”
“The slaves of socialism are slaves, but they are no one’s property and therefore no one’s loss.”
“Whoever claims that economic competition represents ‘survival of the fittest’ in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics.”
“Liberty should be understood as freedom from the government, specifically, freedom from the initiation of physical force by the government.”
“Monopoly is a market, or part of a market, reserved to the exclusive possession of one or more sellers by means of the initiation of physical force by the government… Monopoly is thus something imposed upon the market from without — by the government.”

These quotes illustrate his consistent message: that true economic freedom must exclude coercion, that competition is creative rather than combative, and that many market distortions arise when government intervenes.

Lessons from George Reisman

1. Combine moral and technical arguments. To defend institutions like capitalism robustly, Reisman shows that one must engage both the logical-economic case and the philosophical foundations.

2. Focus on production, not simply consumption. He emphasizes that long-term prosperity stems from saving, capital accumulation, and real output growth, rather than short-term demand stimulation.

3. Be wary of coercive interventionism. Many policies implemented with good intentions carry hidden costs or incentives that distort market processes.

4. Clarity and consistency matter. Precise definitions, logical rigor, and tracking consequences produce more durable economic arguments than mere rhetoric.

5. Intellectual independence counts. Reisman’s willingness to stand apart even from institutions he once aligned with (e.g. Objectivist organizations) shows the importance of thinking independently rather than for affiliation.

Conclusion

George Reisman stands as a distinctive voice in modern economic thought — one who seeks to revive and integrate classical and Austrian economics into a broad, philosophically grounded defense of free markets. His career as an academic, scholar, and teacher demonstrates a commitment to clarity, integrity, and depth.

For those interested in exploring his work further, Capitalism: A Treatise on Economics is a central text, and his essays and lectures also bring out his application of economic theory to pressing policy debates.