The Economic Consequences of Blind Faith

Chapter
Part of the Archival Insights into the Evolution of Economics book series (AIEE)

Abstract

Murray Rothbard, Hayek’s fourth generation Austrian School co-leader, proclaimed: ‘we can learn a great deal from Lenin and the Leninists.’ For purposes of ‘cadre development,’ they needed a ‘journal, a Society of Austrian Economists, and a favourable graduate department.’ Conspiratorial silence’ was also required—including suppressing information about Hayek’s and Mises’ mental illnesses. On non-interference grounds, Hayek defended the ‘civilization’ of apartheid from the American ‘fashion’ of ‘human right’—but routinely interfered with a variety of countries to promote his re-feudalization agenda. After ‘German Austrian citizens,’ ‘equal before the law in all respects’ was forcibly imposed on Austrian nobles, Austrian ‘scholars’ continued to use aristocratic incentives to defend the ‘free’ market: ‘Noblemen owned the estates over which they hunted and therefore suffered capital losses if they failed to preserve their game.’ During the resulting Global Financial Crisis, Alan Greenspan acknowledged a ‘flaw’: ‘Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief.’

References

Archival Insights into the Evolution of Economics (and Related Projects)

  1. Farrant, A., & McPhail, E. (2017). Hayek, Thatcher, and the Muddle of the Middle. In R. Leeson (Ed.), Hayek: A Collaborative Biography Part IX: The Divine Right of the ‘Free’ Market. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  2. Filip, B. (2018). Hayek and Popper on Piecemeal Engineering and Ordo-Liberalism. In R. Leeson (Ed.), Hayek: A Collaborative Biography Part XIV: Orwell, Popper, Polanyi and Humboldt. Basingstoke: Palgrave Macmillan.Google Scholar
  3. Leeson, R. (Ed.). (2015). Hayek: A Collaborative Biography Part II Austria, America and the Rise of Hitler, 1899–1933. Basingstoke: Palgrave Macmillan.Google Scholar
  4. Leeson, R. (2017). Hayek: A Collaborative Biography Part VII ‘Market Free Play with an Audience’: Hayek’s Encounters with Fifty Knowledge Communities. Basingstoke: Palgrave Macmillan.Google Scholar
  5. Leeson, R. (2018). Hayek: A Collaborative Biography Part VIII the Constitution of Liberty: ‘Shooting in Cold Blood’ Hayek’s Plan for the Future of Democracy. Basingstoke: Palgrave Macmillan.Google Scholar
  6. Teacher, D. (2018a). ‘Neutral Academic Data’ and the International Right (1). In R. Leeson (Ed.), Hayek: A Collaborative Biography Part XI Liberalism in the (Austrian) Classical Tradition. Basingstoke: Palgrave Macmillan.Google Scholar
  7. Teacher, D. (2018b). ‘Neutral Academic Data’ and the International Right (2). In R. Leeson (Ed.), Hayek: A Collaborative Biography Part XI Liberalism in the (Austrian) Classical Tradition. Basingstoke: Palgrave Macmillan.Google Scholar
  8. Ravelli, G., & Bull, A. (2018). The Pinochet Regime and the Trans-nationalization of Italian Neo-fascism. In R. Leeson (Ed.), Hayek: A Collaborative Biography Part XI Liberalism in the (Austrian) Classical Tradition. Basingstoke: Palgrave Macmillan.Google Scholar

Other References

  1. Andrews, E. L. (2008, October 23). Greenspan Concedes Error on Regulation. New York Times. http://www.nytimes.com/2008/10/24/business/economy/24panel.html.
  2. Bird, K. (2017, June 20). Some ‘October Surprise’ Conspiracies Turn Out to Be True. Los Angeles Times. http://www.latimes.com/opinion/op-ed/la-oe-bird-conspiracies-october-surprises-20170620-story.html.
  3. Boettke, P. J. (1992, August 1). Friedrich A. Hayek (18991992). FEE. https://fee.org/articles/friedrich-a-hayek-1899-1992/.
  4. Boettke, P. J. (2009b, March 11). Masonomics—Not Really!!! Coordination Problem. http://austrianeconomists.typepad.com/weblog/2009/03/masonomics-not-really.html.
  5. Boettke, P. J. (2010). Reflections on Becoming an Austrian Economists and Libertarian, and Staying One. In W. Block (Ed.), I Chose Liberty Autobiographies of Contemporary Libertarians. Auburn, AL: Ludwig von Mises Institute.Google Scholar
  6. Boettke, P. J. (2014, June 7). Robert Leeson, Hayek and the Underpants Gnome. Coordination Problem. http://www.coordinationproblem.org/2014/06/robert-leeson-hayek-and-the-underpants-gnomes.html.
  7. Brait, E. (2015, September 12). Poll Finds Almost a Third of Americans Would Support a Military Coup. The Guardian. https://www.theguardian.com/us-news/2015/sep/11/military-coup-some-americans-would-vote-yes.
  8. Caldwell, B. (1993). Bruce J. Caldwell. Austrian Economics Newsletter, 14(1), 12–13. https://mises.org/system/tdf/aen14_1_1_0.pdf?file=1&type=document.
  9. Caldwell, B. (1995). Editorial Notes. In Contra Keynes and Cambridge the Collected Works of F. A. Hayek (B. Caldwell, Ed.). Chicago: University of Chicago Press.Google Scholar
  10. Caldwell, B. (2006). Popper and Hayek: Who Influenced Whom? In I. C. Jarvie, K. Milford, & D. W. Miller (Eds.), Karl Popper: A Centenary Assessment Volume I (pp. 111–124). Burlington: Ashgate.Google Scholar
  11. Caldwell, B. (2010, September). Review of P. Mirowski and D. Phehwe (Eds.). The Road from Mont Pelerin: The Making of the Neoliberal Thought Collective. EH.NET. http://eh.net/book_reviews/the-road-from-mont-plerin-the-making-of-the-neoliberal-thought-collective/.
  12. Caldwell, B., & Montes, L. (2014a, August). Friedrich Hayek and His Visits to Chile (CHOPE Working Paper No. 2014–12).Google Scholar
  13. Caldwell, B., & Montes, L. (2014b, September 26). Friedrich Hayek and His Visits to Chile. Review of Austrian Economics. First online.CrossRefGoogle Scholar
  14. Caldwell, B., & Montes, L. (2015a, September). Friedrich Hayek and His Visits to Chile. Review of Austrian Economics, 28(3), 261–309.CrossRefGoogle Scholar
  15. Caldwell, B., & Montes, L. (2015b). Friedrich Hayek y Sus Dos Visitas a Chile. Estudios Públicos, 137(Verano), 87–132. https://www.cepchile.cl/cep/site/artic/20160304/asocfile/20160304101209/rev137_BCaldwell-LMontes.pdf.
  16. Cordato, R. E. (1989). Austrian Economics Society Formed. Austrian Economics Newsletter, 10(1), 10. https://mises.org/system/tdf/aen10_3_1_0.pdf?file=1&type=document.
  17. Cubitt, C. (2006). A Life of August von Hayek. Bedford: Authors on line.Google Scholar
  18. D’Souza, D. (2009). Letters to a Young Conservative. New York: Basic Books.Google Scholar
  19. D’Souza, D. (2017). The Big Lie: Exposing the Nazi Roots of the American Left. New York: Regnery.Google Scholar
  20. Deist, J. (2017, February 17). Democracy, the God That’s Failing. Mises Wire. https://mises.org/blog/democracy-god-thats-failing.
  21. Dekker, E. (2016a). The Viennese Students of Civilization The Meaning and Context of Austrian Economics Reconsidered. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  22. Dekker, E. (2016b, July 31). How Viennese Culture Shaped Austrian Economics. FEE. https://fee.org/articles/how-viennese-culture-shaped-austrian-economics/.
  23. Doherty, B. (2007). Radicals for Capitalism: A Freewheeling History of the Modern. American Libertarian Movement. New York: Public Affairs.Google Scholar
  24. Ebeling, R. M. (2014, February 16). Exclusive Interview, Gold & Silver. Richard Ebeling on Austrian Economics, Economic Freedom and the Trends of the Future. Daily Bell. http://www.thedailybell.com/gold-silver/anthony-wile-richard-ebeling-on-austrian-economics-economic-freedom-and-the-trends-of-the-future/.
  25. Ebeling, R. M. (2017a, October 2). Classical Liberalism and the Problem of ‘Race’ in America. Future of Freedom Foundation. https://www.fff.org/explore-freedom/article/classical-liberalism-problem-race-america/.
  26. Ebeling, R. M. (2017b, October 6). The Foundations of Prosperity and Freedom Interview with Richard Ebeling. The Citadel Newsroom. http://www.citadel.edu/root/the-foundations-of-prosperity-and-freedom.
  27. Ebenstein, A. (2003). Friedrich Hayek: A Biography. Chicago: University of Chicago Press.Google Scholar
  28. Farrant, A., & McPhail, E. (2014). Can a Dictator Turn a Constitution into a Can-Opener? F. A. Hayek and the Alchemy of Transitional Dictatorship in Chile. Review of Political Economy, 26(3), 331–348.CrossRefGoogle Scholar
  29. Glassman, J. K. (2011). Market-Based Man. Philanthropy Roundtable. http://www.philanthropyroundtable.org/topic/excellence_in_philanthropy/market_based_man.
  30. Goldschmidt, N., & Hesse, J-O. (2013). Eucken, Hayek, and the Road to Serfdom. In R. Leeson (Ed.), Hayek: A Collaborative Biography Part II Influences, From Mises to Bartley. Basingstoke, England: Palgrave Macmillan.Google Scholar
  31. Goodwin, C. (1988). The Heterogeneity of the Economists’ Discourse: Philosopher, Priest, and Hired Gun. In A. Klamer, D. N. McCloskey, & R. M. Solow (Eds.), The Consequences of Economic Rhetoric. Cambridge: Cambridge University Press.Google Scholar
  32. Granelli, J. (1993, September 8). Ex-Regulator Edwin Gray, Foe of Keating, Quits Post: Banking: Troubled Miami Thrift He Headed Was Sold to Investors Without Federal Help. Los Angeles Times. http://articles.latimes.com/1993-09-08/business/fi-32955_1_miami-thrift.
  33. Gusejnova, D. (2012). Nobel Continent: German Speaking Nobles as Theorists of European Identity in the Inter-War Period. In M. Hewitson & M. D’Auria (Eds.), Europe in Crisis: Intellectuals and the European Idea, 1917–1957. New York: Berghahn.Google Scholar
  34. Hamowy, R. (2002). A Note on Hayek and Anti-Semitism. History of Political Economy, 34(1), 255–260.CrossRefGoogle Scholar
  35. Harberger, A. C. (2016). Sense and Economics: An Oral History with Arnold Harberger. Interviews Conducted by Paul Burnett in 2015 and 2016 Oral History Center, The Bancroft Library, University of California Berkeley, CA. http://digitalassets.lib.berkeley.edu/roho/ucb/text/harberger_arnold_2016.pdf.
  36. Hayek, F. A. (1944). The Road to Serfdom. London: Routledge.Google Scholar
  37. Hayek, F. A. (1952 [1926]). Hayek on Wieser. In H. W. Spiegel (Ed.), The Development of Economic Thought. New York: Wiley.Google Scholar
  38. Hayek, F. A. (1974a, December 11). The Pretence of Knowledge. https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1974/hayek-lecture.html.
  39. Hayek, F. A. (1974c). Inflation and Unemployment. Mimeo. Hayek Archives Box 129.16.Google Scholar
  40. Hayek, F. A. (1975a). Face the Press. https://mises.org/library/hayek-meets-press-1975.
  41. Hayek, F. A. (1975b). A Discussion with Friedrich von Hayek. Washington, DC: American Enterprise Institute. https://www.aei.org/wp-content/uploads/2017/03/Discussion-with-Friedrich-von-Hayek-text.pdf.
  42. Hayek, F. A. (1976). Law, Legislation and Liberty: Volume II The Mirage of Social Justice. Chicago: University of Chicago Press.Google Scholar
  43. Hayek, F. A. (1978). Oral History Interviews. Los Angeles: Centre for Oral History Research, University of California. http://oralhistory.library.ucla.edu/.
  44. Hayek, F. A. (1979). Law, Legislation and Liberty: Volume III The Political Order of a Free People. Chicago: University of Chicago Press.Google Scholar
  45. Hayek, F. A. (1980). This Month’s Interviews (The American Council Economic Report 1–11).Google Scholar
  46. Hayek, F. A. (1984). 1980s Unemployment and the Unions: The Distortion of Relative Prices by Monopoly in the Labour Market. Essays on the Impotent Price Structure of Britain and Monopoly in the Labour Market. London: Institute of Economic Affairs.Google Scholar
  47. Hayek, F. A. (1992a). In The Fortunes of Liberalism Essays on Austrian Economics and the Ideal of Freedom the Collected Works of F. A. Hayek (P. Klein, Ed.). Chicago: University of Chicago Press.Google Scholar
  48. Hayek, F. A. (1992b [1977], July). The Road from Serfdom. Reason. http://reason.com/archives/1992/07/01/the-road-from-serfdom/5.
  49. Hayek, F. A. (1994). In Hayek on Hayek an Autobiographical Dialogue. Supplement to the Collected Works of F. A. Hayek (S. Kresge & L. Wenar, Eds.). Chicago: University of Chicago Press.Google Scholar
  50. Hayek, F. A. (1995). In Contra Keynes and Cambridge the Collected Works of F. A. Hayek (B. Caldwell, Ed.). Chicago: University of Chicago Press.Google Scholar
  51. Hayek, F. A. (1997). In Socialism and War: Essays, Documents, Reviews. The Collected Works of F. A. Hayek (B. Caldwell, Ed.). Indianapolis: Liberty Fund.Google Scholar
  52. Hayek, F. A. (1999a). In Good Money, Part 1. The New World the Collected Works of F. A. Hayek (S. Kresge, Ed.). London: Routledge.Google Scholar
  53. Hayek, F. A. (1999b). In Good Money, Part 2. The Standard the Collected Works of F. A. Hayek (S. Kresge, Ed.). London: Routledge.Google Scholar
  54. Hayek, F. A. (2007 [1944]). In The Road to Serfdom: The Definitive Edition. The Collected Works of F. A. Hayek (B. Caldwell, Ed.). Chicago: University of Chicago Press.Google Scholar
  55. Hayek, F. A. (2011 [1960]). In The Constitution of Liberty. The Definitive Edition the Collected Works of F. A. Hayek (R. Hamowy, Ed.). Chicago: University of Chicago Press.Google Scholar
  56. Hoppe, H-H. (2014 [1995]). The Private Property Order: An Interview with Hans-Hermann Hoppe. Austrian Economic Newsletter, 18(1). https://mises.org/library/private-property-order-interview-hans-hermann-hoppe.
  57. Hoppe, H-H. (2017, October 7). Coming of Age with Murray. Mises Institute’s 35th Anniversary Celebration in New York City. https://mises.org/library/coming-age-murray-0.
  58. Horwitz, S. (2004). Monetary Calculation and the Unintended Extended Order: The Misesian Microfoundations of the Hayekian Great Society. The Review of Austrian Economics, 17(4), 307–321.CrossRefGoogle Scholar
  59. Hülsmann, J. G. (2007). Mises: The Last Knight of Liberalism. Auburn, AL: Ludwig von Mises Institute.Google Scholar
  60. Hutt, W. (1961, October 12). Abuse of State Power in Multi-Racial Society. The Cape Times.Google Scholar
  61. Koch, C. (1978, August). The Business Community: Resisting Regulation. Libertarian Review, 7(7), 30–34. https://www.libertarianism.org/lr/LR788.pdf.
  62. Koestler, A. (1950). Arthur Koestler. In R. Crossman (Ed.), Communism: The God that Failed. New York: Harper and Row.Google Scholar
  63. Koether, G. (2000). A Life Among Austrians. Austrian Economics Newsletter, 20(3). https://mises.org/system/tdf/aen20_3_1_0.pdf?file=1&type=document.
  64. Lavoie, D. (1977). Austrian Economics Seminar, Part II: 1976–77. Austrian Economics Newsletter, 1(3), 6–7.Google Scholar
  65. Leonard, R. (2011). The Collapse of Interwar Vienna: Oskar Morgenstern’s Community, 1925–50. History of Political Economy, 43(1), 83–130.CrossRefGoogle Scholar
  66. Leube, K. R. (2003). Some Remarks on Hayek’s The Sensory Order. Laissez Faire, 12–22. http://laissezfaire.ufm.edu/images/7/79/Laissezfaire18_2.pdf.
  67. MacLean, N. (2017). Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America. New York: Viking.Google Scholar
  68. Mahler, J. (2014, September 23). D’Souza Avoids Prison Time for Campaign Finance Violations. New York Times.Google Scholar
  69. Martin, A. (2010, September). The Analects of Boettke. Journal of Private Enterprise, 26(1), 125–141.Google Scholar
  70. McFadden, R. (2014, April 2). Charles Keating, 90, Key Figure in ’80s Savings and Loan Crisis, Dies. New York Times. https://www.nytimes.com/2014/04/02/business/charles-keating-key-figure-in-the-1980s-savings-and-loan-crisis-dies-at-90.html.
  71. Mises, L. (1944). Bureaucracy. New Haven: Yale University Press.Google Scholar
  72. Mises, L. (1963). Human Action a Treatise on Economics (2nd ed.). New Haven: Yale University Press.Google Scholar
  73. Mises, L. (1966). Human Action a Treatise on Economics (3rd ed.). Chicago: Henry Regnery.Google Scholar
  74. Mises, L. (1985 [1927]). Liberalism in the Classical Tradition (R. Raico, Trans.). Auburn, AL: Mises Institute.Google Scholar
  75. Mises, M. (1984). My Years with Ludwig von Mises (2nd ed.). Cedar Falls, IA: Center for Futures Education.Google Scholar
  76. Mises, L. (1998 [1949]). Human Action A Treatise on Economics the Scholars Edition. Auburn, AL: Ludwig von Mises Institute.Google Scholar
  77. Murdoch, R. (1990). The War on Technology. City Journal. Manhattan Institute Third Annual Walter B. Wriston Lecture in Public Policy. http://www.city-journal.org/article01.php?aid=1631.
  78. Olson, C. (2012, October 16). Then: Dinesh D’Souza Leaves Catholic Church. Now: He Leaves Wife (Catholic World Report).Google Scholar
  79. Polanyi, K. (1934). Othmar Spann: The Philosopher of Fascism. New Britain, 3(53), 6–7.Google Scholar
  80. Raico, R. (2013, February 20). An Interview with Ralph Raico. Mises Institute. https://mises.org/library/interview-ralph-raico-0.
  81. Rathkolb, O. (2009). The Anschluss in the Rear View Mirror, 1938–2008: Historical Memories Between Debate and Transformation. In G. Bischof, F. Plasser, & B. Stelzl-Marx (Eds.), New Perspectives on Austrian and World War II. Contemporary Austrian Studies Volume 17. New Brunswick: Transaction.Google Scholar
  82. Rockwell, L. H., Jr. (2010). Libertarianism and the Old Right. In W. Block (Ed.), I Chose Liberty: Autobiographies of Contemporary Libertarians. Auburn, AL: Ludwig von Mises Institute.Google Scholar
  83. Rothbard, M. N. (1993, August). Who are the Terrorists? Rothbard Rockwell Report , 4(8). http://www.unz.org/Pub/RothbardRockwellReport-1993aug-00001.
  84. Rothbard, M. N. (1994a, May). Those Jury Verdicts. Rothbard Rockwell Report, 5(5). http://www.unz.org/Pub/RothbardRockwellReport-1994may-00009.
  85. Rothbard, M. N. (1994b). Nation by Consent. Decomposing the National State. Journal of Libertarian Studies, 11(1), 1–10. https://mises.org/library/uk-nation-consent.
  86. Rothbard, M. N. (1994c, July). Revolution in Italy! Rothbard-Rockwell Report, 5(7), 1–10. http://www.unz.org/Pub/RothbardRockwellReport-1994jul-00001.
  87. Rothbard, M. N. (2010). Strictly Confidential: The Private Volker Fund Memos of Murray N. Rothbard (D. Gordon, Ed.). Auburn, AL: Ludwig von Mises Institute.Google Scholar
  88. Scott, A. (1955). Natural Resources: The Economics of Conservation. Toronto: University of Toronto Press.Google Scholar
  89. Shenoy, S. (1978, June 11). Market Holds Key to Conservation. World Money. MPS Archives Box 100.Google Scholar
  90. Shenoy, S. (2003). An Interview with Sudha Shenoy. Austrian Economics Newsletter, 1–8. http://mises.org/journals/aen/aen23_4_1.pdf.
  91. Shirer, W. L. (1960). Rise and Fall of the Third Reich. London: Secker and Warburg.Google Scholar
  92. Sick. (1991a). October Surprise: America’s Hostages in Iran and the Election of Ronald Reagan. New York: Random House/Times Books.Google Scholar
  93. Sick. (1991b, April 15). The Election Story of the Decade. New York Times. http://www.nytimes.com/1991/04/15/opinion/the-election-story-of-the-decade.html.
  94. Silverman, P. (1984). Law and Economics in Interwar Vienna Kelsen, Mises and the Regeneration of Austrian Liberalism. University of Chicago Ph.D., Department of History, Faculty of the Division of the Social Sciences.Google Scholar
  95. Vanberg, V. (2013). Hayek in Freiburg. In R. Leeson (Ed.), Hayek: A Collaborative Biography Part I Influences, From Mises to Bartley. Basingstoke, England: Palgrave Macmillan.Google Scholar
  96. von Monakow, C., & Kitabayashi, S. (1919). Schizophrenie und Plexus Chorioidei. Schweizer Archiv für Neurologie und Psychiatrie, 5, 378–392.Google Scholar
  97. Wasserstein, B. (2007). Barbarism and Civilization: A History of Europe in Our Time. Oxford: Oxford University Press.Google Scholar
  98. White, L. H. (2008). Did Hayek and Robbins Deepen the Great Depression? Journal of Money, Credit and Banking, 40, 751–768.CrossRefGoogle Scholar
  99. Wieser, F. (1983 [1926]). The Law of Power. University of Nebraska-Lincoln, Bureau of Business Research.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Department of EconomicsStanford UniversityStanfordUSA
  2. 2.Notre Dame Australia UniversityFremantleAustralia

Personalised recommendations