fighting for the truth
- They disagreed on natural rights;
- they disagreed on the necessity of the State; and
- they disagreed on foreign policy (based, I suspect, on disagreements #1 and #2)

Mises's [turn-of-the-century] article on the gold standard proved highly controversial. He called for a de jure return in Austria-Hungary to gold redemption as a logical conclusion of the existing de facto policy of redeemability. In addition to running up against advocates of inflation, lower interest rates, and lower exchange rates, Mises was surprised to face ferocious opposition by the central bank, the Austro-Hungarian Bank. In fact, the Bank's Vice-President hinted at a bribe to soften Mises's position. A few years later, Mises was informed by Bohm-Bawerk, then Minister of Finance, of the reason for the vehemence of the Bank's opposition to his proposal for a legal gold standard. Legal redemption in gold would probably deprive the Bank of the right to invest funds in foreign currencies. But the Bank had long used proceeds from these investments to amass a secret and illegal slush fund, from which to pay subventions to its own officials, as well as to influential journalists and politicians. The Bank was keen on retaining the slush fund, and so it was fitting that Mises's most militant opponent was the publisher of an economic periodical who was himself a recipient of Bank subsidies.That's from Ludwig von Mises: Scholar, Creator, Hero, which we're running as the weekend edition to celebrate the 125th anniversary of Mises's birth.
Mises came to a decision, which he pursued for the rest of his career in Austria, not to reveal such corruption on the part of his enemies, and to confine himself to rebutting fallacious doctrine without revealing their sources. But in taking this noble and self-abnegating position, by acting as if his opponents were all worthy men and objective scholars, it might be argued that Mises was legitimating them and granting them far higher stature in the public debate than they deserved. Perhaps, if the public had been informed of the corruption that almost always accompanies government intervention, the activities of the statists and inflationists might have been desanctified, and Mises's heroic and lifelong struggle against statism might have been more successful. In short, perhaps a one-two punch was needed: refuting the economic fallacies of Mises's statist enemies, and also showing the public their self-interested stake in government privilege.
What appears at first to be either a difference in personal style or a minor difference of opinion on strategy is in fact a critical difference in understanding
- how the academic profession works;
- how the political class works; and
- how history works.
The Viennese Austrians had a very different view of truth and progress than did the scrappy New Yorker who would carry the Austrian School into the second half of the 20th century (and into the 21st century, thanks to the institute he helped found). Rothbard's most significant strategic insight, the one behind the founding first of the Cato Institute and later the Mises Institute, is that the truth has to be fought for tooth and nail. The progress of ideas does not advance by the linear Whig Theory of History or even the zigzag advancement of Hegelian dialectic. True to the insights of philosophical and methodological individualism, Rothbard saw that human beings are perfectly capable of screwing things up through bad thinking and bad decisions. There is no guarantee that the truth will out, certainly not in the short run.Rothbard again:
Unlike their successful enemies, such as Schmoller and Lujo Brentano, and even Wieser, neither Menger nor Bohm-Bawerk saw the academic arena as a political battlefield to be conquered. Hence, in contrast to their opponents, they refused to promote their own disciples or followers, or to block the appointment of their enemies. In fact, Bohm-Bawerk leaned even further backward to urge the appointments of sworn enemies of himself and of the Austrian School. This curious form of self-abnegation helped to torpedo Mises's or any similar academic appointment. Menger and Bohm apparently insisted on the naive view that truth will always win out, unaided, not realizing that this is hardly the way truth ever wins out in the academic or any other arena. Truth must be promoted, organized, and fought for as against error. Even if we can hold the faith that truth, unaided by strategy or tactics, will win out in the long run, it is unfortunately an excruciatingly long run in which all too many of us -- certainly including Mises -- will be dead. Yet, Menger adopted the ruinous strategic view that "there is only one sure method for the final victory of a scientific idea, by letting every contrary proposition run a free and full course."Joe Salerno starts with Rothbard's insight and takes it further in his history of the French Liberal School.
Bastiat's school didn't fade away; neither did it lose in honest competition with rival schools of thought. The French liberals made the fatal error of recruiting the French government into their effort to promote economic literacy. The result, of course, is that the French government promoted social democrats and legal positivists. Where the French liberals had been the leading economists in a nation without any official university economics departments, they became outsiders in a statist profession -- a profession they had dirtied their hands to create.To summarize:
- Rothbard's first insight is that the truth must be fought for.
- His corollary insight is that a school of thought needs institutional support.
- Salerno's emphasis (one I'm sure Rothbard championed) is that the State will never help advance economic truth, since the truth is greatly to the disadvantage of the political class.


"Mises demonstrated that competition under capitalism is of an entirely different character than competition in the animal kingdom. It is not a competition for scarce, nature-given means of subsistence, but a competition in the positive creation of new and additional wealth, from which all gain."
Have you ever had the feeling after a near-miss accident, when it's all over and you know you're safe and then you start to shake?
After the NYC Mises Circle, Tom Woods
Like any good Rothbardian, I've made my criticisms of Milton Friedman.




(7) "Of course war is horrible, but it will always exist, and I'm sick of these pacifist [expletive deleted] ruining any shred of political decency that they can manage."
For the 3 or 4 of you who don't read Mises.org, I want to draw special attention to 



Well, even without legal tender laws, there would be plenty of problems with that argument, but it's also important to point out to people just how many of their assumed (and always untested!) freedoms are denied by the state -- just how jealously the state guards its monopolies, from "first-class mail" to coinage and well beyond ...

My father passed this news along to me. I'm waiting for a source to cite.
See "
I think this is a funny line:
So, when I was reading your blog and ran across gigantic open-quotes, I started grinding my teeth. Now, I notice that your last couple of posts didn't use quotation marks at all. Hopefully, you got the 'giant quotation graphic' urge out of your system. If not, please, please, pretty-please do so as soon as possible. Preferably in private."


It was sober, ascetic, conscientious Augustus Caesar who laid the firm foundations of the misery in which all Europeans lived for generations. He began to establish a planned world-economy, the famous Roman Peace that the Roman legions gave the whole world's people by conquering them. (Just such a peace as Hitler, and some of his enemies, are planning now.)

Now and then Tim 

One of my earliest blog posts,
O Lord our God, help us to tear their soldiers to bloody shreds with our shells; help us to cover their smiling fields with the pale forms of their patriot dead; help us to drown the thunder of the guns with the shrieks of their wounded, writhing in pain; help us to lay waste their humble homes with a hurricane of fire; help us to wring the hearts of their unoffending widows with unavailing grief; help us to turn them out roofless with their little children to wander unfriended the wastes of their desolated land in rags and hunger and thirst, sports of the sun flames of summer and the icy winds of winter, broken in spirit, worn with travail, imploring Thee for the refuge of the grave and denied it – for our sakes who adore Thee, Lord, blast their hopes, blight their lives, protract their bitter pilgrimage, make heavy their steps, water their way with their tears, stain the white snow with the blood of their wounded feet! We ask it, in the spirit of love, of Him Who is the Source of Love, and Who is ever-faithful refuge and friend of all that are sore beset and seek His aid with humble and contrite hearts. Amen."






