Economic Support of the Elder LifeCare Foundation Viewpoint

"...the best systems maximize the freedom of the individual, subject to the constraint of others in the system."

A libertarian has been awarded the 2002 Nobel Prize in economics for his pioneering work in "experimental economics."

On October 9, the Royal Swedish Academy of Sciences chose Vernon Smith, a professor of economics and law at George Mason University in Fairfax, Virginia, to receive the award.

Smith, 75, is an originator of experimental economics, a discipline that observes economic behavior in controlled laboratory conditions. Smith's selection was heralded by libertarians.

"[Smith] is a champion of individual liberty and market competition," said George Passantino, public affairs director of the Reason Foundation. "Today is a great day for those who love liberty!"

Economist William L. Anderson of the Ludwig Von Mises Institute wrote: "Smith's research has demonstrated time and again that the Austrians are correct regarding human action in the marketplace, and the mainstreamers are flat-out wrong."

A supporter of the Socialist Party as a young man, Smith said he later came to realize that "the best systems maximize the freedom of the individual, subject to the constraint of others in the system."

As a result, his political beliefs underwent a swing from collectivism to liberty, said Smith.

"The two votes that I've felt the most comfortable about casting were for [Socialist Party candidate] Norman Thomas in 1948 and [Libertarian Party candidate] Ed Clark in 1980," he said.

Smith currently serves on the Board of Directors of the International Foundation for Research in Experimental Economics, is an adjunct scholar at the Cato Institute, and is a research fellow and board member of the Mercatus Center. He has written or co-written 200 articles and books on experimental economics, capital theory, and finance.