by Rothbard
[Front Matter and Table of Contents]: The front matter for Murray Rothbard's 'Making Economic Sense', including the title page, a list of patrons who supported the publication, copyright information, and a detailed table of contents covering the book's various sections on economic theory, social welfare, politics, and historical figures. [Preface by Llewellyn H. Rockwell, Jr.]: Llewellyn H. Rockwell, Jr. introduces the collection of essays, highlighting Rothbard's commitment to educating the public on economic truths. He describes the essays as sprightly yet rigorous applications of Austrian School principles to contemporary events, originally published in 'The Free Market' between 1982 and 1995. [Is It the 'Economy, Stupid'?]: Rothbard critiques the Clintonian 'it's the economy, stupid' slogan, arguing that political attitudes are shaped by more than just the business cycle. He identifies a 'secular' (long-run) decline in living standards, driven by rising taxes and inflation, which explains public dissatisfaction despite official statistics claiming prosperity. [Ten Great Economic Myths]: Rothbard deconstructs ten common economic fallacies. He addresses the relationship between deficits and inflation, the 'crowding out' effect on private investment, the failure of tax increases to cure deficits, the mechanics of interest rates, the impossibility of precise economic forecasting, the myth of the inflation-unemployment tradeoff, the benefits of deflation, the flaws of the flat tax and Laffer curve, and the errors of protectionism regarding 'cheap' foreign labor. [Discussing the 'Issues']: Rothbard examines how the media and 'policy wonks' frame political debate to exclude radical or free-market alternatives. He argues that 'discussing the issues' usually means accepting statist premises, and he proposes a radical solution to the deficit: freezing federal spending at 1979 levels. [Creative Economic Semantics]: A critique of the linguistic gymnastics used by government economists to disguise spending and tax increases as 'cuts.' Rothbard explains how 'bracket creep' and 'revenue enhancement' allow the state to extract more wealth while maintaining a facade of fiscal restraint. [Chaos Theory: Destroying Mathematical Economics From Within?]: Rothbard explores the implications of chaos theory for economics. He argues that the discovery of the 'Butterfly Effect' and non-linear dynamics undermines the neoclassical reliance on smooth calculus, general equilibrium, and the 'rational expectations' model of perfect future knowledge. [Statistics: Destroyed From Within?]: Rothbard recounts his personal departure from the field of statistics after realizing that the 'normal curve' assumption is often a mystical act of faith. He notes that new computational methods like the 'bootstrap' are finally exposing the flaws in traditional statistical inference. [The Consequences of Human Action: Intended or Unintended?]: Rothbard challenges the Hayekian emphasis on 'unintended consequences,' arguing that Misesian praxeology correctly focuses on conscious, purposeful human action. He suggests that over-emphasizing unintended consequences can inadvertently excuse the growth of the state by ignoring the deliberate designs of power elites. [The Interest Rate Question]: An analysis of the factors determining interest rates, including the supply and demand for credit and the 'inflation premium.' Rothbard explains how Fed interventions initially lower rates but eventually cause them to rise as the public anticipates inflation. [Are Savings Too Low?]: Rothbard argues that the perceived 'low savings' in the U.S. is not a failure of the public but a result of government policies—such as taxation and deficits—that penalize saving and encourage consumption. He advocates for a drastic reduction in the size of government to restore prosperity. [A Walk on the Supply Side]: Rothbard critiques supply-side economics, noting its indifference to government spending and its 'populist' embrace of cheap money. He argues that their version of the gold standard is a 'phony' managed system similar to Bretton Woods. [Keynesian Myths]: Rothbard attacks the Keynesian notion that 'idle capacity' prevents inflation. He argues that unemployment is caused by wage rates being held above market-clearing levels by government and unions, and that inflation cannot solve this structural problem without causing further distortions. [Keynesianism Redux]: Rothbard observes the survival of Keynesianism despite its failure to explain 'stagflation.' He argues that the Reagan and Bush administrations institutionalized Keynesian policies of permanent deficits and fiat money, despite their free-market rhetoric. [Economic Incentives and Welfare]: Rothbard applies economic logic to the welfare system, arguing that high benefits create a rational incentive for people to remain on the dole. He cites a study showing that welfare benefits in New York can exceed the starting salaries of many municipal jobs. [Welfare As We Don’t Know It]: A critique of the Clinton welfare reform plan. Rothbard argues that 'workfare' is more expensive and intrusive than traditional welfare, as it involves the state creating unproductive jobs and providing extensive support services, further entrenching socialistic redistribution. [The Infant Mortality 'Crisis']: Rothbard challenges the narrative of an American infant mortality crisis. He argues that the problem is behavioral (e.g., drug use, smoking) rather than nutritional or economic, and that federal programs like WIC have failed to address these root causes despite massive spending. [The Homeless and the Hungry]: Rothbard argues that the media's focus on specific categories like 'the hungry' or 'the homeless' is a tactic to expand the welfare bureaucracy. He suggests that these are all symptoms of a lack of money, often caused by a lack of incentive to work created by the dole itself. [Rioting for Rage, Fun, and Profit]: Rothbard analyzes the 1992 Los Angeles riots, rejecting 'rage' as a primary cause. He argues that the failure of the state to protect property and the subsequent 'buyout' of rioters through welfare has only encouraged further lawlessness and social decay. [The Social Security Swindle]: Rothbard describes Social Security as a 'vast Ponzi scheme' that taxes the working young to pay current retirees while spending the 'surplus' on government boondoggles. He credits Senator Moynihan for exposing the accounting fictions used to hide the federal deficit. [Roots of the Insurance Crisis]: Rothbard defends the jury system and contingency fees against the insurance industry's calls for legal caps on awards. He argues that the real solution is to reform tort law to eliminate 'vicarious liability' and focus only on those actually at fault for damages. [Government Medical 'Insurance']: Rothbard traces the medical crisis to government-induced cartelization (via the Flexner Report) and the distortion of demand through third-party insurance. He argues that these interventions have raised prices and lowered the quality of care, leading toward socialized medicine. [The Neocon Welfare State]: Rothbard critiques the 'conservative welfare state' proposed by neoconservatives. He argues that their initiatives in education and housing (like 'empowerment' and 'enterprise zones') are merely new forms of state control and spending disguised in conservative rhetoric. [By Their Fruits . . .]: Rothbard exposes the 'vicious logic' of agricultural cartels that force farmers to destroy 'undersized' fruit to keep prices high. He argues that these regulations, enforced by the USDA, primarily harm low-income consumers while protecting the profits of large growers. [The Politics of Famine]: Rothbard argues that famines in the Third World are the result of socialist policies that exploit and cripple the peasantry. He contends that the solution is not international aid, which often subsidizes the oppressive state, but the establishment of private property and free markets. [Government vs. Natural Resources]: Rothbard refutes the idea that private greed destroys natural resources, arguing instead that government ownership leads to 'looting' and overuse. He advocates for the privatization of land and water (aquaculture) to ensure long-term stewardship and productivity. [Environmentalists Clobber Texas]: Rothbard discusses a federal court ruling that prioritized endangered species over the water needs of San Antonio. He argues that the socialization of water leads to irrational pricing and shortages, and that the only solution is the privatization of water rights. [Government and Hurricane Hugo: A Deadly Combination]: Rothbard critiques the government's response to Hurricane Hugo, arguing that mandatory evacuations, price controls on 'gouging,' and environmentalist restrictions on rebuilding beachfront property intensified the disaster's destruction and violated property rights. [The Water Is Not Running]: Rothbard argues that 'water shortages' are artificial crises created by government monopolies that price water below market levels. He contends that private enterprise would use market pricing to clear the market, eliminating the need for coercive rationing and 'sacrifice.' [Rethinking The '80s]: Rothbard re-evaluates the 1980s, arguing that the boom was an inflationary bubble generated by the Federal Reserve, similar to the 1920s. He defends Michael Milken and critiques the 1986 Tax Reform Act for contributing to the subsequent real estate collapse and recession. [Bush and Dukakis: Ideologically Inseparable]: Rothbard argues that there was little difference between George Bush and Michael Dukakis in the 1988 election, as both were committed to Keynesianism, high spending, and the preservation of the status quo. He highlights the dangerous move toward a world central bank and paper currency under James Baker. [Perot, the Constitution, and Direct Democracy]: Rothbard defends Ross Perot’s proposal for 'electronic town meetings' against criticisms from the technocratic and media establishment. He argues that technological advancements in telecommunications have made direct democracy feasible, rendering the traditional 'representative' model obsolete. He critiques the 'political class' for fearing increased voter participation and contrasts Perot's proposal to require direct voter ratification for tax increases with the 'phony' balanced budget amendments proposed by the Republican and Democratic establishment. [The Flag Flap]: Rothbard analyzes the controversy surrounding flag-burning amendments, critiquing both the proponents of 'desecration' laws and the civil libertarians who defend flag burning as 'symbolic speech.' He argues that the speech/action distinction is artificial and leads to absurd legal conclusions. Instead, he proposes that the issue should be resolved through a private property rights framework: individuals have the right to burn their own property (including flags) but no right to destroy the property of others. [Clintonomics: The Prospect]: Written at the start of the Clinton presidency, this essay predicts a 'Great Leap Forward' into statism. Rothbard distinguishes between 'right-wing Keynesians' (Republicans) and 'left-wing Keynesians' (Democrats), arguing that the latter favor more aggressive industrial policy and government-business partnerships. He critiques the concepts of 'human capital' and government 'investment,' while warning that the administration's health care goals represent a move toward socialized medicine under the guise of compassion. [Clintonomics Revealed]: Rothbard critiques the early Clinton budget and economic strategy as 'schizoid' and 'Orwellian.' He argues that the administration's plan to raise taxes while increasing spending is self-contradictory, as higher taxes on corporations and energy will cripple the recovery and reduce investment. He rejects the semantic relabeling of government spending as 'investment' and taxes as 'contributions,' characterizing the agenda as a move toward Democratic Socialism. [Price Controls Are Back!]: Rothbard reviews the historical failure of price controls, citing examples from ancient Rome to the Truman and Nixon administrations. He explains how controls inevitably lead to shortages and black markets, using the 1946 meat crisis as a primary example. He warns that the Clinton administration's move toward controlling health care and cable TV rates is a dangerous return to these discredited policies, driven by a desire for bureaucratic power and rationing. [The Health Plan’s Devilish Principles]: Rothbard critiques the fundamental principles of the Clinton health care reform, specifically targeting 'guaranteed universal access.' He argues that such access is inherently coercive and egalitarian, necessitating the robbery of taxation and the elimination of choice. He challenges the notion that a 'two-tier' health system is unfair, comparing it to the natural market variations in food and clothing, and warns that the plan seeks to reduce all citizens to a single, lower-quality tier of care. [The Clinton Health Plan: Collectivism and Price Controls]: Rothbard critiques the Clinton health care plan as a collectivist endeavor that would effectively eliminate private practice and consumer choice. He argues that the proposed price controls and spending caps will inevitably lead to medical rationing and a decline in service quality, as government-run services treat consumers as a burden rather than as 'kings' of the market. [The Great Leap Forward into Socialism]: Rothbard characterizes the Clinton health plan as a 'Great Leap Forward' into socialism, comparing it to Maoist surges and the expansion of the American welfare state. He advocates for the Mises Institute's principled approach of dismantling existing government intervention in health care rather than creating new bureaucratic structures. [Outlawing Jobs: The Minimum Wage, Once More]: Rothbard argues that minimum wage laws are essentially a form of compulsory unemployment that hurts the most marginal workers, such as teenagers and minorities. He claims that the political support for these laws, particularly from unions like the AFL-CIO, is a calculated attempt to cripple low-wage competition for higher-wage union members. [The Union Problem]: This segment examines the legal and economic privileges of labor unions in the U.S., focusing on the use of violence against replacement workers and the infringement on employer property rights. Rothbard calls for the repeal of the Norris-LaGuardia and Wagner Acts to restore a free market in labor and protect private property from union coercion. [The Legacy of Cesar Chavez]: Rothbard critiques the canonization of Cesar Chavez, arguing that the United Farm Workers (UFW) failed because it ignored the economic reality of labor supply and demand. He explains that migrant workers' low wages are a result of low skill levels and high replaceability, and that union-imposed wage hikes would only lead to mass unemployment for the very people they claim to help. [Privatization and Desocialization]: Rothbard advocates for the total privatization of government services and assets to move resources from the coercive, parasitic sector to the voluntary, productive sector. He argues that even money-losing government enterprises should be sold at any price to stop the drain on the economy and improve service through market competition. [What to Do Until Privatization Comes]: Rothbard discusses how government-owned facilities should be managed before they are privatized. He rejects the 'worse the better' strategy and the 'equal access' doctrine that turns public spaces into squalid jungles, arguing instead that public services should be run as efficiently and business-like as possible for their intended purpose. [Population "Control" and Economic Development]: Rothbard challenges the Malthusian premise that overpopulation causes poverty in the Third World. He argues that population growth is a sign of prosperity and that the real cause of poverty is a lack of private property rights and market opportunity, rather than a surplus of human beings. [The Economics of Gun Control]: Rothbard analyzes gun control measures, such as increased federal licensing fees, as a form of economic intervention designed to cartelize the industry. He argues that these fees drive out small dealers to the benefit of larger ones and that the true motivation is often an alliance between ideologues and big business to restrict competition. [Vouchers: What Went Wrong?]: Rothbard explains why the California school voucher initiative failed, arguing that vouchers are a flawed 'quick fix' that extends the welfare state and government control over private schools. He suggests that true educational reform requires cutting budgets, repealing regulations, and allowing parents to opt out of the public system through tax cuts rather than subsidies. [The Whiskey Rebellion: A Model for Our Time?]: Rothbard revisits the history of the Whiskey Rebellion, arguing it was a successful and widespread act of civil disobedience against internal taxation. He contends that the rebellion was not merely a localized event in Pennsylvania but a broad frontier refusal to pay, which eventually forced the federal government to repeal the hated excise tax. [Eisnerizing Manassas]: Rothbard opposes the proposed Disney theme park near the Manassas battlefield, characterizing it as state-subsidized growth rather than free-market development. He also critiques the 'politically correct' and Marxist-influenced historical perspective that the park would likely promote, given its choice of consultants like Eric Foner. [Stocks, Bonds, and Rule by Fools]: Rothbard critiques the economic confusion of the Clinton era, particularly the 'low interest rate fetish' and the failure to recognize inflationary recessions. He argues that government attempts to manipulate interest rates below market levels cause distortions and that the current financial boom is an artificial bubble created by Fed credit expansion. [The Salomon Brothers Scandal and the Bond Market]: Rothbard examines the Salomon Brothers scandal as a symptom of a deeper problem: the privileged 'primary dealer' cartel in the government bond market. He suggests that the massive public debt siphons capital from productive use and proposes radical solutions like converting debt to permanent 'consols' or outright repudiation to lift the burden from taxpayers. [Nine Myths About the Crash]: Rothbard deconstructs nine common myths regarding the 1987 stock market crash. He identifies the root cause as the Fed's inflationary credit expansion and warns that the 'liquidity' injected by Alan Greenspan to stave off recession will only lead to a more severe inflationary recession in the future. [Michael R. Milken vs. The Power Elite]: Rothbard defends Michael Milken as a financial innovator who challenged the inefficient corporate 'Power Elite' through high-yield bonds and takeovers. He argues that the legal assault on Milken was a move by the established corporate-banking alliance to suppress competition and protect their own entrenched positions at the expense of stockholders and economic efficiency. [Panic on Wall Street: The Case for Insider Trading]: Rothbard argues that insider trading is a victimless 'crime' that actually improves market efficiency by rewarding knowledgeable entrepreneurs. He characterizes the crackdown on Wall Street as a politically motivated 'Reign of Terror' that violates free speech and privacy while protecting old-line corporate managers from the discipline of the market. [Government-Business "Partnerships"]: Rothbard traces the history of government-business 'partnerships' from European mercantilism to the American Civil War and the Progressive Era. He identifies these arrangements as neo-mercantilist systems of cartelization and privilege, specifically citing the National Banking Act and the rise of central banking as key milestones in the growth of the American corporate state. [Airport Congestion and Airline Deregulation]: Rothbard argues that airport congestion is not a market failure but a result of government ownership and irrational pricing of runways. He calls for the privatization of airports and air traffic control services to allow for market-clearing prices and to prevent the FAA from re-imposing the cartelization that was supposedly ended by airline deregulation. [The Specter of Airline Re-Regulation]: Rothbard defends airline deregulation against calls for re-regulation, arguing that mergers and bankruptcies are healthy signs of competition. He maintains that the problems of delays and crowding are caused by the remaining government-owned bottlenecks—airports and air traffic control—and that the solution is more freedom, not less. [Competition at Work: Xerox at 25]: Rothbard uses the history of Xerox to illustrate how small, innovative firms can outcompete established giants. He highlights the role of the lone inventor and the necessity for even giant corporations to remain competitive and adaptable in a free market. [The War on the Car]: Rothbard critiques the Clinton administration's 'war on the car,' arguing that environmental and safety regulations are a mask for a deeper hatred of the individualism and mobility provided by private automobiles. He views the push for mass transit and car rationing as a totalitarian impulse to replace private comfort with collective control. [Are We Undertaxed?]: Rothbard refutes the claim by establishment economists that Americans are 'undertaxed.' He argues that government spending is a form of consumption by the ruling elite rather than 'investment,' and that the 'public squalor' observed by Galbraith is an inherent feature of government operation that can only be solved by privatization. [The Return of the Tax Credit]: Rothbard advocates for the use of tax credits as a way to return power to individuals and reduce the scope of government. He argues that tax credits are not 'subsidies' but a means of allowing people to keep their own money, and he calls for widening 'loopholes' until the entire tax system is dismantled. [Deductibility and Subsidy]: Rothbard defends the deductibility of state and local taxes against the argument that it constitutes a 'subsidy.' He maintains that allowing citizens to keep more of their own money is never a subsidy and that the push for 'tax reform' is often a trick to divide taxpayers and increase the total tax burden. [That Gasoline Tax]: Rothbard critiques the proposed increase in the gasoline tax, arguing that the market already handles resource conservation through the price system. He views the tax as an attack on the individualistic lifestyle of the middle class and a tool for expanding the power of the state under the guise of environmentalism and deficit reduction. [Babbitry and Taxes: A Profile in Courage?]: Rothbard mocks the media's portrayal of Bruce Babbitt's call for higher taxes as 'courageous.' He points out that politicians and bureaucrats do not actually pay taxes but are net tax-receivers, and he argues that true courage would involve slashing government spending rather than increasing the plunder of the citizenry. [Flat Tax or Flat Taxpayer?]: Rothbard critiques the 'flat tax' proposal as a 'terrible simplification' that would actually increase the tax burden on many by eliminating deductions and raising capital gains taxes. He argues that tax complexity is a result of people trying to protect their property and that the only true simplification is the abolition of the income tax. [Mrs. Thatcher's Poll Tax]: Rothbard analyzes the riots against Margaret Thatcher's 'community charge' (poll tax). While he finds the concept of an equal tax per head theoretically interesting for its market neutrality, he argues that Thatcher's implementation failed because it did not accompany the tax with a drastic reduction in total government spending, leading to an increased burden on the public. [Exit the Iron Lady]: Rothbard reviews Margaret Thatcher's tenure, noting her successes in privatization and breaking union power but criticizing her failure to reduce the overall size of the state or control inflation. He also discusses her opposition to a European Central Bank, warning that such an institution would lead to coordinated international fiat inflation. [The Budget Crisis and Voluntary Government]: Rothbard proposes a 'jubilee year' where federal taxes are suspended to see how much the public would voluntarily contribute to government services. He critiques the establishment's obsession with raising taxes during a recession and argues that the real solution to the budget crisis is a massive reduction in government spending. [The Balanced-Budget Amendment Hoax]: Rothbard dismisses the balanced-budget amendment as a hoax designed to build public confidence while allowing deficits to continue through accounting tricks and 'off-budget' spending. He argues that the amendment would likely lead to higher taxes rather than lower spending and that it serves as a fiscal camouflage for continued statism. [Economic Ups and Downs: The NBER and Business Cycles]: Rothbard critiques the National Bureau of Economic Research (NBER) for its arbitrary and theory-laden methodology in dating business cycles. He argues that their 'Baconian' approach of measurement without theory actually manipulates data to fit a sawtooth model of expansion and contraction, failing to reflect the unique historical reality of economic events. [Inflationary Recession, Once More]: Rothbard discusses the phenomenon of inflationary recession, where prices rise despite a decline in economic activity. He critiques the establishment's tendency to proclaim 'new eras' of permanent boom and argues that the only way to alleviate a recession is to stop credit expansion, cut taxes, and drastically reduce government spending. [Deflation, Free or Compulsory]: Rothbard distinguishes between beneficial market-driven deflation (falling prices due to increased productivity) and destructive government-imposed monetary contraction. He critiques the draconian measures in Brazil and the Soviet Union as violations of property rights and argues that the market should be allowed to adjust prices freely without government interference. [Bush and the Recession]: Rothbard critiques President George Bush's Keynesian response to the recession, which involved trying to 'jawbone' interest rates down and stimulate spending. He argues for a break from the Keynesian paradigm, advocating instead for massive tax and spending cuts to encourage private saving and investment as the true path to recovery. [Lessons of the Recession]: Rothbard reflects on the lessons of the early 1990s recession, emphasizing that bank credit expansion is the root cause of business cycles. He argues that debt is not the primary problem, but rather the inflationary money generated by fractional-reserve banking, and he dismisses the Kondratieff cycle as a myth while warning of the inherent insolvency of the FDIC-insured banking system. [The World Currency Crisis and the Gold Standard]: Rothbard traces the history of international monetary systems, from the genuine gold standard to the failed Bretton Woods and Smithsonian agreements. He critiques both fixed and fluctuating fiat systems, arguing that only a return to a gold standard can provide a stable, non-inflationary international money and prevent the Keynesian dream of a world-wide inflationary paper currency. [New International Monetary Scheme]: Rothbard warns against the emerging movement to return to fixed exchange rates and the creation of a World Reserve Bank. He argues that such a system would facilitate coordinated world-wide inflation and that the search for a new currency system is an attempt by bankers and politicians to escape the discipline of the market. [Attacking the Franc: Speculators vs. Statism]: Rothbard defends currency speculators as market actors who expose the unsound valuations of government-inflated currencies. He critiques the European attempt to fix exchange rates and create a single currency as a step toward centralized statism, and he praises the market for triumphing over these inflationary and centralizing plans. [Back to Fixed Exchange Rates]: Rothbard critiques the push by Secretary James Baker and supply-siders for a new international order of fixed exchange rates based on a secret commodity index. He argues that this is a recipe for coordinated world-wide inflation and that any system not based on genuine gold redemption is destined for crisis and collapse. [The Cross of Fixed Exchange Rates]: Rothbard argues that government attempts to fix exchange rates inevitably lead to monetary crises and currency shortages through Gresham's Law. He critiques the Clinton administration's intervention to prop up the dollar and the peso, warning that Nafta is being used as a back-channel for international currency regulation and centralized economic planning. [The Keynesian Dream of a World Central Bank]: Rothbard describes the long-held Keynesian goal of a single world currency issued by a World Central Bank. He explains how the move toward a European Central Bank is a stepping stone to this global inflationary system and warns that such a coordinated world-wide inflation would eventually lead to global hyperinflation. [Money Inflation and Price Inflation]: Rothbard explains that monetary inflation is essentially counterfeiting that redistributes wealth and distorts investment patterns, even if prices remain stable. He argues that the 'Reagan miracle' of low price inflation despite high money growth was due to temporary offsets like the high dollar and falling oil prices, and he predicts a resumption of price inflation as these factors disappear. [Bank Crisis and Fractional-Reserve Banking]: Rothbard argues that the banking system is inherently unsound due to fractional-reserve banking, which makes banks perpetually insolvent and vulnerable to runs. He critiques the FDIC as a 'house of cards' that relies on the Fed's power to print money, and he advocates for a return to a sound system of 100% reserves to prevent chronic inflation and bank collapses. [Anatomy of the Bank Run]: Rothbard analyzes the mechanics of bank runs, explaining that they occur because banks do not have enough cash to meet their demand obligations. He argues that federal deposit insurance only 'works' by promising unlimited inflation to bail out insolvent banks, and he calls for the abolition of these agencies to restore a sound, non-inflationary banking system. [Q & A on the S & L Mess]: Rothbard analyzes the Savings and Loan (S&L) crisis, arguing that the proposed 'fees' on depositors are actually taxes and that the concept of 'insuring' a fractional-reserve banking system is a logical fallacy. He contends that the industry is inherently bankrupt because it operates on a 'con-game' of promising immediate redemption while lending out deposits, and he advocates for allowing insolvent banks to fail rather than bailing them out at taxpayer expense. [Inflation Redux]: This section discusses the return of high inflation in the late 1980s, contrasting the Austrian view of money supply and human expectations with the mechanical models of the Chicago School. Rothbard criticizes the Federal Reserve's 'gradualism' and predicts that a recession is the inevitable and necessary correction for the preceding inflationary boom. [Inflation and the Spin Doctors]: Rothbard critiques the government's use of 'core inflation' rates to downplay rising costs by excluding volatile categories like food and energy. He argues that the true cause of inflation is the federal government's expansion of the money supply, which it attempts to hide through statistical manipulation and blaming wage increases. [Alan Greenspan: A Minority Report on The Fed Chairman]: Rothbard provides a critical profile of Alan Greenspan upon his appointment as Fed Chairman, characterizing him as a 'conservative Keynesian' and a 'pragmatist' who maintains a philosophical belief in the gold standard while consistently supporting interventionist policies. He highlights Greenspan's role in 'saving' Social Security through tax increases and his ties to the financial-political elite. [The Mysterious Fed]: Rothbard deconstructs the 'mystery' and 'majesty' surrounding the Federal Reserve Chairman, arguing that the institution functions as a government-enforced banking cartel. He explains how the Fed creates money out of thin air to buy government securities, which then serves as the basis for further inflationary credit expansion by private banks. [First Step Back to Gold]: Rothbard celebrates the minting of the American Eagle gold coin as a first step toward sound money but criticizes its 'legal tender' value of $50 as an attempt to prevent it from circulating as currency. He outlines a plan for returning to a gold standard by tying the dollar to a fixed weight of gold and abolishing the Federal Reserve. [Economics Beyond the Borders]: In this introduction to international trade issues, Rothbard defends Pat Buchanan against charges of protectionism while accusing the Bush Administration of hypocrisy. He argues that true free trade requires not only the absence of tariffs but also the removal of domestic regulations and subsidies that distort competition. [Regional Free Trade Zones and Foreign Aid]: Rothbard critiques the Bush administration's approach to 'free trade,' arguing that regional trade blocs like the EEC and NAFTA actually increase regulation and bureaucracy rather than promoting genuine freedom. He asserts that true free trade requires only unilateral cuts in tariffs and regulations, while condemning foreign aid as a systematic racket that taxes Americans to subsidize export firms and foreign governments. [Cartelized World Paper Money and Pat Buchanan]: The author warns against the Keynesian drive for a world central bank and cartelized paper money, which he views as a path toward world economic government and global inflation. He contrasts the positions of presidential candidates, noting Pat Buchanan's opposition to foreign aid and economic globalism as being closer to genuine free trade principles than his contemporaries. [The NAFTA Myth]: Rothbard deconstructs NAFTA, labeling it a mercantilist 'trade agreement' rather than a free trade treaty. He argues that it centralizes power in supranational commissions, enforces 'upward harmonization' of taxes and regulations, and serves as a vehicle for export subsidies and foreign aid to Mexico. He highlights the irony of supporting the Mexican PRI government while it maintains a state monopoly on oil and gas. [Is There Life After NAFTA?]: Following the passage of NAFTA, Rothbard analyzes the political alignment that supported it, including big business, finance, and media. He argues the fight was actually about advancing a 'New World Order' of managed trade and globalist foreign policy. He notes the hostility of establishment think tanks toward free-market critics of the treaty and suggests that rising nationalism may eventually counter this globalist trend. ["Fairness" and the Steel Steal]: A historical and economic critique of the American steel industry's reliance on government protection. Rothbard traces the industry's lobbying efforts from the War of 1812 through the 1990s, arguing that tariffs and quotas only subsidize inefficiency. He dismisses 'dumping' as a benefit to consumers and explains how protectionist arguments shift from 'infant' to 'senescent' industry metaphors to maintain permanent subsidies. [The Crusade Against South Africa]: Rothbard argues against the 1980s disinvestment campaign targeting South Africa, contending that economic sanctions and withdrawals primarily harm the black workers they intend to help. He posits that free-market capitalism is the best antidote to racism because it penalizes discriminatory hiring, whereas apartheid is a state-enforced system that socializes the costs of racism. [Are Diamonds Really Forever?]: An analysis of the DeBeers diamond cartel, explaining that its longevity was due to South African government enforcement rather than market forces. Rothbard describes how the cartel is currently being undermined by a recession and a surge of 'illegal' diamond prospecting in Angola, where the government can no longer enforce cartel restrictions, potentially leading to a triumph of free competition. [Oil Prices Again]: Rothbard defends the oil industry against accusations of 'price gouging' following the Iraqi invasion of Kuwait. He explains that price increases are the result of anticipated supply drops and that speculators perform a vital service by smoothing market volatility. He warns that government price controls, not corporate greed, are the cause of gas lines and shortages. [Why the Intervention in Arabia?]: Rothbard questions the motives behind the U.S. military buildup in Saudi Arabia, dismissing 'police action' and 'cheap oil' justifications. He suggests the intervention is actually an 'Oil War' intended to protect the profits and control of the Rockefeller-aligned oil companies (like Aramco and Mobil) and construction firms (like Bechtel) against an 'outlier' state like Iraq. [A Trip to Poland]: Rothbard recounts a 1986 visit to Poland for an academic conference, noting that despite the economic decay of socialism, the Polish intellectuals were remarkably free and universally skeptical of government propaganda. He observes a shared desire for a sovereign, non-communist Poland among the scholars and even some government agents. [Peru and the Free Market]: Rothbard analyzes the 1990 Peruvian election, explaining why the 'free-market' candidate Mario Vargas Llosa lost to Alberto Fujimori. He argues that Vargas Llosa's alliance with state capitalists and his endorsement of Brazil's Draconian deflationary 'shock treatment' (which froze bank accounts) alienated the masses, who saw Fujimori as a fellow outsider. [A Gold Standard for Russia?]: Rothbard discusses a proposal by Fed Governor Wayne Angell for the Soviet Union to adopt a gold standard to restore the ruble's credibility. He notes Angell's admission that the gold standard provides 'honest money,' which implies that Western fiat currencies are 'dishonest' but still coasting on their historical association with gold. [Should We Bail Out Gorby?]: Rothbard argues against U.S. financial aid to Mikhail Gorbachev, asserting that such aid only strengthens the parasitic Soviet state and delays necessary market reforms. He suggests that the best help the West can offer is the example of property rights and the advice to privatize and deregulate immediately. [Welcoming the Vietnamese]: Rothbard highlights the plight of Vietnamese-American fishermen in California, who are being targeted by the Coast Guard under the archaic Jones Act. He argues that these hard-working refugees are victims of a 'Catch-22' created by inefficient Anglo competitors and environmentalists who have restricted the waters where they can legally fish. [The Collapse of Socialism]: Rothbard celebrates the global collapse of socialism in the late 1980s as a vindication of Ludwig von Mises's argument that central planning cannot work. He notes that even communist leaders are admitting the failure of the system and moving toward markets, leaving Western intellectuals as the last remaining defenders of socialist ideology. [The Freedom Revolution]: A reflection on the revolutionary movements in Poland, Hungary, and China in 1989. Rothbard argues that economic and political freedom are inseparable, as demonstrated by the tragedy at Tiananmen Square. He observes that the 'Internationale' has become a song for the masses to use against their communist oppressors. [How to Desocialize?]: Rothbard explores the practical difficulties of transitioning from socialism to capitalism. He discusses Paul Craig Roberts's proposal to accommodate the old 'nomenklatura' by giving them shares in state factories alongside workers, arguing that while justice might demand their removal, a peaceful transition to private property is the primary goal. [A Radical Prescription for the Socialist Bloc]: Rothbard argues against gradualism in economic reform, advocating for the immediate abolition of all price controls and the universal privatization of state assets through 'homesteading.' He cites Ludwig Erhard's post-WWII reforms in West Germany as proof that radical, overnight decontrol is the only effective path to recovery. [A Socialist Stock Market?]: Rothbard discusses the introduction of stock markets in communist countries like China and Hungary. Using Mises's criterion that a stock market is the heart of capitalism, he argues that these developments signal the end of socialism in those nations, particularly in Hungary where daily international exchanges and foreign ownership are being permitted. [Bringing the War Home]: Rothbard warns that successful wars often lead to an expansion of domestic statism, as leaders attempt to apply military-style mobilization to social issues. He critiques President George Bush's post-Gulf War domestic agenda as a continuation of the 'war collectivism' that has plagued American politics since World War I. [The Revolution Comes Home]: An analysis of the 1994 Republican electoral victory. Rothbard argues that while the public voted for a revolution against Big Government, the Republican leadership (specifically Gingrich and Dole) is already betraying those principles by maintaining high spending, global interventionism, and managed trade (GATT/WTO). He places hope in the 'Hard Right' freshmen and grass-roots pressure to keep the leadership in line. [The Trouble with the Quick Fix]: Rothbard critiques 'Quick Fix' political gimmicks like the Balanced Budget Amendment, which he argues would lead to higher taxes rather than lower spending. He also warns against 'privatizing' tax collection, comparing it to the historically hated practice of 'tax farming,' and urges a focus on rolling back the total size of government rather than just the deficit. [William Harold Hutt: 1899–1988]: An obituary and intellectual biography of W.H. Hutt. Rothbard praises Hutt's work on labor theory, his demonstration that apartheid was rooted in union protectionism, and his critiques of Keynesianism. He highlights Hutt's defense of Say's Law and his personal kindness as a scholar. [Friedrich August von Hayek: 1899–1992]: Rothbard evaluates the legacy of F.A. Hayek following his death. While praising Hayek's early work on Misesian business cycle theory and his courage in writing 'The Road to Serfdom,' Rothbard critiques Hayek's later shift toward social philosophy, which he views as inconsistent and overly skeptical of human reason compared to Mises's systematic approach. [V. Orval Watts: 1898–1993]: A brief introductory marker for the obituary of V. Orval Watts. [V. Orval Watts: 1898–1993]: An obituary and biographical sketch of V. Orval Watts, a leading free-market economist. It details his academic background at Harvard, his work with Leonard Read at the Los Angeles Chamber of Commerce and FEE, and his later teaching career at Northwood University. The segment highlights his critiques of Keynesianism, unions, and the United Nations. [Margit von Mises: 1890–1993]: A tribute to Margit von Mises, the widow of Ludwig von Mises, following her death at age 102. Rothbard describes her tireless efforts to preserve and publish her husband's legacy, her own memoir, and her embodiment of the 'Old Vienna' culture. The essay emphasizes her strength of character and devotion to the cause of liberty. [The Story of the Mises Institute]: Rothbard recounts the history and mission of the Ludwig von Mises Institute, founded in 1982. He explains the necessity of the Institute in the face of an 'Austrian' establishment that sought to dilute Mises's uncompromising principles. The segment details the Institute's programs, including its journals, fellowships at Auburn University, and summer conferences, framing it as the true home of Misesian thought. [Postscript: The November Revolution . . . and What to Do About It]: A lengthy analysis of the 1994 Republican electoral victory, which Rothbard terms a 'populist revolution' against big government. He warns of the potential for betrayal by Republican elites (citing the Reagan era as a precedent) and critiques the 'bipartisan' establishment. The essay covers the judicial blockage of California's Proposition 187, the passage of GATT/WTO, and provides a radical checklist for true reform, including defanging the federal judiciary and abolishing the Federal Reserve. [Publication Credits and Index]: A comprehensive list of the original publication dates for the articles in 'Making Economic Sense' in 'The Free Market' newsletter, followed by a detailed alphabetical index of subjects and names mentioned throughout the book.
The front matter for Murray Rothbard's 'Making Economic Sense', including the title page, a list of patrons who supported the publication, copyright information, and a detailed table of contents covering the book's various sections on economic theory, social welfare, politics, and historical figures.
Read full textLlewellyn H. Rockwell, Jr. introduces the collection of essays, highlighting Rothbard's commitment to educating the public on economic truths. He describes the essays as sprightly yet rigorous applications of Austrian School principles to contemporary events, originally published in 'The Free Market' between 1982 and 1995.
Read full textRothbard critiques the Clintonian 'it's the economy, stupid' slogan, arguing that political attitudes are shaped by more than just the business cycle. He identifies a 'secular' (long-run) decline in living standards, driven by rising taxes and inflation, which explains public dissatisfaction despite official statistics claiming prosperity.
Read full textRothbard deconstructs ten common economic fallacies. He addresses the relationship between deficits and inflation, the 'crowding out' effect on private investment, the failure of tax increases to cure deficits, the mechanics of interest rates, the impossibility of precise economic forecasting, the myth of the inflation-unemployment tradeoff, the benefits of deflation, the flaws of the flat tax and Laffer curve, and the errors of protectionism regarding 'cheap' foreign labor.
Read full textRothbard examines how the media and 'policy wonks' frame political debate to exclude radical or free-market alternatives. He argues that 'discussing the issues' usually means accepting statist premises, and he proposes a radical solution to the deficit: freezing federal spending at 1979 levels.
Read full textA critique of the linguistic gymnastics used by government economists to disguise spending and tax increases as 'cuts.' Rothbard explains how 'bracket creep' and 'revenue enhancement' allow the state to extract more wealth while maintaining a facade of fiscal restraint.
Read full textRothbard explores the implications of chaos theory for economics. He argues that the discovery of the 'Butterfly Effect' and non-linear dynamics undermines the neoclassical reliance on smooth calculus, general equilibrium, and the 'rational expectations' model of perfect future knowledge.
Read full textRothbard recounts his personal departure from the field of statistics after realizing that the 'normal curve' assumption is often a mystical act of faith. He notes that new computational methods like the 'bootstrap' are finally exposing the flaws in traditional statistical inference.
Read full textRothbard challenges the Hayekian emphasis on 'unintended consequences,' arguing that Misesian praxeology correctly focuses on conscious, purposeful human action. He suggests that over-emphasizing unintended consequences can inadvertently excuse the growth of the state by ignoring the deliberate designs of power elites.
Read full textAn analysis of the factors determining interest rates, including the supply and demand for credit and the 'inflation premium.' Rothbard explains how Fed interventions initially lower rates but eventually cause them to rise as the public anticipates inflation.
Read full textRothbard argues that the perceived 'low savings' in the U.S. is not a failure of the public but a result of government policies—such as taxation and deficits—that penalize saving and encourage consumption. He advocates for a drastic reduction in the size of government to restore prosperity.
Read full textRothbard critiques supply-side economics, noting its indifference to government spending and its 'populist' embrace of cheap money. He argues that their version of the gold standard is a 'phony' managed system similar to Bretton Woods.
Read full textRothbard attacks the Keynesian notion that 'idle capacity' prevents inflation. He argues that unemployment is caused by wage rates being held above market-clearing levels by government and unions, and that inflation cannot solve this structural problem without causing further distortions.
Read full textRothbard observes the survival of Keynesianism despite its failure to explain 'stagflation.' He argues that the Reagan and Bush administrations institutionalized Keynesian policies of permanent deficits and fiat money, despite their free-market rhetoric.
Read full textRothbard applies economic logic to the welfare system, arguing that high benefits create a rational incentive for people to remain on the dole. He cites a study showing that welfare benefits in New York can exceed the starting salaries of many municipal jobs.
Read full textA critique of the Clinton welfare reform plan. Rothbard argues that 'workfare' is more expensive and intrusive than traditional welfare, as it involves the state creating unproductive jobs and providing extensive support services, further entrenching socialistic redistribution.
Read full textRothbard challenges the narrative of an American infant mortality crisis. He argues that the problem is behavioral (e.g., drug use, smoking) rather than nutritional or economic, and that federal programs like WIC have failed to address these root causes despite massive spending.
Read full textRothbard argues that the media's focus on specific categories like 'the hungry' or 'the homeless' is a tactic to expand the welfare bureaucracy. He suggests that these are all symptoms of a lack of money, often caused by a lack of incentive to work created by the dole itself.
Read full textRothbard analyzes the 1992 Los Angeles riots, rejecting 'rage' as a primary cause. He argues that the failure of the state to protect property and the subsequent 'buyout' of rioters through welfare has only encouraged further lawlessness and social decay.
Read full textRothbard describes Social Security as a 'vast Ponzi scheme' that taxes the working young to pay current retirees while spending the 'surplus' on government boondoggles. He credits Senator Moynihan for exposing the accounting fictions used to hide the federal deficit.
Read full textRothbard defends the jury system and contingency fees against the insurance industry's calls for legal caps on awards. He argues that the real solution is to reform tort law to eliminate 'vicarious liability' and focus only on those actually at fault for damages.
Read full textRothbard traces the medical crisis to government-induced cartelization (via the Flexner Report) and the distortion of demand through third-party insurance. He argues that these interventions have raised prices and lowered the quality of care, leading toward socialized medicine.
Read full textRothbard critiques the 'conservative welfare state' proposed by neoconservatives. He argues that their initiatives in education and housing (like 'empowerment' and 'enterprise zones') are merely new forms of state control and spending disguised in conservative rhetoric.
Read full textRothbard exposes the 'vicious logic' of agricultural cartels that force farmers to destroy 'undersized' fruit to keep prices high. He argues that these regulations, enforced by the USDA, primarily harm low-income consumers while protecting the profits of large growers.
Read full textRothbard argues that famines in the Third World are the result of socialist policies that exploit and cripple the peasantry. He contends that the solution is not international aid, which often subsidizes the oppressive state, but the establishment of private property and free markets.
Read full textRothbard refutes the idea that private greed destroys natural resources, arguing instead that government ownership leads to 'looting' and overuse. He advocates for the privatization of land and water (aquaculture) to ensure long-term stewardship and productivity.
Read full textRothbard discusses a federal court ruling that prioritized endangered species over the water needs of San Antonio. He argues that the socialization of water leads to irrational pricing and shortages, and that the only solution is the privatization of water rights.
Read full textRothbard critiques the government's response to Hurricane Hugo, arguing that mandatory evacuations, price controls on 'gouging,' and environmentalist restrictions on rebuilding beachfront property intensified the disaster's destruction and violated property rights.
Read full textRothbard argues that 'water shortages' are artificial crises created by government monopolies that price water below market levels. He contends that private enterprise would use market pricing to clear the market, eliminating the need for coercive rationing and 'sacrifice.'
Read full textRothbard re-evaluates the 1980s, arguing that the boom was an inflationary bubble generated by the Federal Reserve, similar to the 1920s. He defends Michael Milken and critiques the 1986 Tax Reform Act for contributing to the subsequent real estate collapse and recession.
Read full textRothbard argues that there was little difference between George Bush and Michael Dukakis in the 1988 election, as both were committed to Keynesianism, high spending, and the preservation of the status quo. He highlights the dangerous move toward a world central bank and paper currency under James Baker.
Read full textRothbard defends Ross Perot’s proposal for 'electronic town meetings' against criticisms from the technocratic and media establishment. He argues that technological advancements in telecommunications have made direct democracy feasible, rendering the traditional 'representative' model obsolete. He critiques the 'political class' for fearing increased voter participation and contrasts Perot's proposal to require direct voter ratification for tax increases with the 'phony' balanced budget amendments proposed by the Republican and Democratic establishment.
Read full textRothbard analyzes the controversy surrounding flag-burning amendments, critiquing both the proponents of 'desecration' laws and the civil libertarians who defend flag burning as 'symbolic speech.' He argues that the speech/action distinction is artificial and leads to absurd legal conclusions. Instead, he proposes that the issue should be resolved through a private property rights framework: individuals have the right to burn their own property (including flags) but no right to destroy the property of others.
Read full textWritten at the start of the Clinton presidency, this essay predicts a 'Great Leap Forward' into statism. Rothbard distinguishes between 'right-wing Keynesians' (Republicans) and 'left-wing Keynesians' (Democrats), arguing that the latter favor more aggressive industrial policy and government-business partnerships. He critiques the concepts of 'human capital' and government 'investment,' while warning that the administration's health care goals represent a move toward socialized medicine under the guise of compassion.
Read full textRothbard critiques the early Clinton budget and economic strategy as 'schizoid' and 'Orwellian.' He argues that the administration's plan to raise taxes while increasing spending is self-contradictory, as higher taxes on corporations and energy will cripple the recovery and reduce investment. He rejects the semantic relabeling of government spending as 'investment' and taxes as 'contributions,' characterizing the agenda as a move toward Democratic Socialism.
Read full textRothbard reviews the historical failure of price controls, citing examples from ancient Rome to the Truman and Nixon administrations. He explains how controls inevitably lead to shortages and black markets, using the 1946 meat crisis as a primary example. He warns that the Clinton administration's move toward controlling health care and cable TV rates is a dangerous return to these discredited policies, driven by a desire for bureaucratic power and rationing.
Read full textRothbard critiques the fundamental principles of the Clinton health care reform, specifically targeting 'guaranteed universal access.' He argues that such access is inherently coercive and egalitarian, necessitating the robbery of taxation and the elimination of choice. He challenges the notion that a 'two-tier' health system is unfair, comparing it to the natural market variations in food and clothing, and warns that the plan seeks to reduce all citizens to a single, lower-quality tier of care.
Read full textRothbard critiques the Clinton health care plan as a collectivist endeavor that would effectively eliminate private practice and consumer choice. He argues that the proposed price controls and spending caps will inevitably lead to medical rationing and a decline in service quality, as government-run services treat consumers as a burden rather than as 'kings' of the market.
Read full textRothbard characterizes the Clinton health plan as a 'Great Leap Forward' into socialism, comparing it to Maoist surges and the expansion of the American welfare state. He advocates for the Mises Institute's principled approach of dismantling existing government intervention in health care rather than creating new bureaucratic structures.
Read full textRothbard argues that minimum wage laws are essentially a form of compulsory unemployment that hurts the most marginal workers, such as teenagers and minorities. He claims that the political support for these laws, particularly from unions like the AFL-CIO, is a calculated attempt to cripple low-wage competition for higher-wage union members.
Read full textThis segment examines the legal and economic privileges of labor unions in the U.S., focusing on the use of violence against replacement workers and the infringement on employer property rights. Rothbard calls for the repeal of the Norris-LaGuardia and Wagner Acts to restore a free market in labor and protect private property from union coercion.
Read full textRothbard critiques the canonization of Cesar Chavez, arguing that the United Farm Workers (UFW) failed because it ignored the economic reality of labor supply and demand. He explains that migrant workers' low wages are a result of low skill levels and high replaceability, and that union-imposed wage hikes would only lead to mass unemployment for the very people they claim to help.
Read full textRothbard advocates for the total privatization of government services and assets to move resources from the coercive, parasitic sector to the voluntary, productive sector. He argues that even money-losing government enterprises should be sold at any price to stop the drain on the economy and improve service through market competition.
Read full textRothbard discusses how government-owned facilities should be managed before they are privatized. He rejects the 'worse the better' strategy and the 'equal access' doctrine that turns public spaces into squalid jungles, arguing instead that public services should be run as efficiently and business-like as possible for their intended purpose.
Read full textRothbard challenges the Malthusian premise that overpopulation causes poverty in the Third World. He argues that population growth is a sign of prosperity and that the real cause of poverty is a lack of private property rights and market opportunity, rather than a surplus of human beings.
Read full textRothbard analyzes gun control measures, such as increased federal licensing fees, as a form of economic intervention designed to cartelize the industry. He argues that these fees drive out small dealers to the benefit of larger ones and that the true motivation is often an alliance between ideologues and big business to restrict competition.
Read full textRothbard explains why the California school voucher initiative failed, arguing that vouchers are a flawed 'quick fix' that extends the welfare state and government control over private schools. He suggests that true educational reform requires cutting budgets, repealing regulations, and allowing parents to opt out of the public system through tax cuts rather than subsidies.
Read full textRothbard revisits the history of the Whiskey Rebellion, arguing it was a successful and widespread act of civil disobedience against internal taxation. He contends that the rebellion was not merely a localized event in Pennsylvania but a broad frontier refusal to pay, which eventually forced the federal government to repeal the hated excise tax.
Read full textRothbard opposes the proposed Disney theme park near the Manassas battlefield, characterizing it as state-subsidized growth rather than free-market development. He also critiques the 'politically correct' and Marxist-influenced historical perspective that the park would likely promote, given its choice of consultants like Eric Foner.
Read full textRothbard critiques the economic confusion of the Clinton era, particularly the 'low interest rate fetish' and the failure to recognize inflationary recessions. He argues that government attempts to manipulate interest rates below market levels cause distortions and that the current financial boom is an artificial bubble created by Fed credit expansion.
Read full textRothbard examines the Salomon Brothers scandal as a symptom of a deeper problem: the privileged 'primary dealer' cartel in the government bond market. He suggests that the massive public debt siphons capital from productive use and proposes radical solutions like converting debt to permanent 'consols' or outright repudiation to lift the burden from taxpayers.
Read full textRothbard deconstructs nine common myths regarding the 1987 stock market crash. He identifies the root cause as the Fed's inflationary credit expansion and warns that the 'liquidity' injected by Alan Greenspan to stave off recession will only lead to a more severe inflationary recession in the future.
Read full textRothbard defends Michael Milken as a financial innovator who challenged the inefficient corporate 'Power Elite' through high-yield bonds and takeovers. He argues that the legal assault on Milken was a move by the established corporate-banking alliance to suppress competition and protect their own entrenched positions at the expense of stockholders and economic efficiency.
Read full textRothbard argues that insider trading is a victimless 'crime' that actually improves market efficiency by rewarding knowledgeable entrepreneurs. He characterizes the crackdown on Wall Street as a politically motivated 'Reign of Terror' that violates free speech and privacy while protecting old-line corporate managers from the discipline of the market.
Read full textRothbard traces the history of government-business 'partnerships' from European mercantilism to the American Civil War and the Progressive Era. He identifies these arrangements as neo-mercantilist systems of cartelization and privilege, specifically citing the National Banking Act and the rise of central banking as key milestones in the growth of the American corporate state.
Read full textRothbard argues that airport congestion is not a market failure but a result of government ownership and irrational pricing of runways. He calls for the privatization of airports and air traffic control services to allow for market-clearing prices and to prevent the FAA from re-imposing the cartelization that was supposedly ended by airline deregulation.
Read full textRothbard defends airline deregulation against calls for re-regulation, arguing that mergers and bankruptcies are healthy signs of competition. He maintains that the problems of delays and crowding are caused by the remaining government-owned bottlenecks—airports and air traffic control—and that the solution is more freedom, not less.
Read full textRothbard uses the history of Xerox to illustrate how small, innovative firms can outcompete established giants. He highlights the role of the lone inventor and the necessity for even giant corporations to remain competitive and adaptable in a free market.
Read full textRothbard critiques the Clinton administration's 'war on the car,' arguing that environmental and safety regulations are a mask for a deeper hatred of the individualism and mobility provided by private automobiles. He views the push for mass transit and car rationing as a totalitarian impulse to replace private comfort with collective control.
Read full textRothbard refutes the claim by establishment economists that Americans are 'undertaxed.' He argues that government spending is a form of consumption by the ruling elite rather than 'investment,' and that the 'public squalor' observed by Galbraith is an inherent feature of government operation that can only be solved by privatization.
Read full textRothbard advocates for the use of tax credits as a way to return power to individuals and reduce the scope of government. He argues that tax credits are not 'subsidies' but a means of allowing people to keep their own money, and he calls for widening 'loopholes' until the entire tax system is dismantled.
Read full textRothbard defends the deductibility of state and local taxes against the argument that it constitutes a 'subsidy.' He maintains that allowing citizens to keep more of their own money is never a subsidy and that the push for 'tax reform' is often a trick to divide taxpayers and increase the total tax burden.
Read full textRothbard critiques the proposed increase in the gasoline tax, arguing that the market already handles resource conservation through the price system. He views the tax as an attack on the individualistic lifestyle of the middle class and a tool for expanding the power of the state under the guise of environmentalism and deficit reduction.
Read full textRothbard mocks the media's portrayal of Bruce Babbitt's call for higher taxes as 'courageous.' He points out that politicians and bureaucrats do not actually pay taxes but are net tax-receivers, and he argues that true courage would involve slashing government spending rather than increasing the plunder of the citizenry.
Read full textRothbard critiques the 'flat tax' proposal as a 'terrible simplification' that would actually increase the tax burden on many by eliminating deductions and raising capital gains taxes. He argues that tax complexity is a result of people trying to protect their property and that the only true simplification is the abolition of the income tax.
Read full textRothbard analyzes the riots against Margaret Thatcher's 'community charge' (poll tax). While he finds the concept of an equal tax per head theoretically interesting for its market neutrality, he argues that Thatcher's implementation failed because it did not accompany the tax with a drastic reduction in total government spending, leading to an increased burden on the public.
Read full textRothbard reviews Margaret Thatcher's tenure, noting her successes in privatization and breaking union power but criticizing her failure to reduce the overall size of the state or control inflation. He also discusses her opposition to a European Central Bank, warning that such an institution would lead to coordinated international fiat inflation.
Read full textRothbard proposes a 'jubilee year' where federal taxes are suspended to see how much the public would voluntarily contribute to government services. He critiques the establishment's obsession with raising taxes during a recession and argues that the real solution to the budget crisis is a massive reduction in government spending.
Read full textRothbard dismisses the balanced-budget amendment as a hoax designed to build public confidence while allowing deficits to continue through accounting tricks and 'off-budget' spending. He argues that the amendment would likely lead to higher taxes rather than lower spending and that it serves as a fiscal camouflage for continued statism.
Read full textRothbard critiques the National Bureau of Economic Research (NBER) for its arbitrary and theory-laden methodology in dating business cycles. He argues that their 'Baconian' approach of measurement without theory actually manipulates data to fit a sawtooth model of expansion and contraction, failing to reflect the unique historical reality of economic events.
Read full textRothbard discusses the phenomenon of inflationary recession, where prices rise despite a decline in economic activity. He critiques the establishment's tendency to proclaim 'new eras' of permanent boom and argues that the only way to alleviate a recession is to stop credit expansion, cut taxes, and drastically reduce government spending.
Read full textRothbard distinguishes between beneficial market-driven deflation (falling prices due to increased productivity) and destructive government-imposed monetary contraction. He critiques the draconian measures in Brazil and the Soviet Union as violations of property rights and argues that the market should be allowed to adjust prices freely without government interference.
Read full textRothbard critiques President George Bush's Keynesian response to the recession, which involved trying to 'jawbone' interest rates down and stimulate spending. He argues for a break from the Keynesian paradigm, advocating instead for massive tax and spending cuts to encourage private saving and investment as the true path to recovery.
Read full textRothbard reflects on the lessons of the early 1990s recession, emphasizing that bank credit expansion is the root cause of business cycles. He argues that debt is not the primary problem, but rather the inflationary money generated by fractional-reserve banking, and he dismisses the Kondratieff cycle as a myth while warning of the inherent insolvency of the FDIC-insured banking system.
Read full textRothbard traces the history of international monetary systems, from the genuine gold standard to the failed Bretton Woods and Smithsonian agreements. He critiques both fixed and fluctuating fiat systems, arguing that only a return to a gold standard can provide a stable, non-inflationary international money and prevent the Keynesian dream of a world-wide inflationary paper currency.
Read full textRothbard warns against the emerging movement to return to fixed exchange rates and the creation of a World Reserve Bank. He argues that such a system would facilitate coordinated world-wide inflation and that the search for a new currency system is an attempt by bankers and politicians to escape the discipline of the market.
Read full textRothbard defends currency speculators as market actors who expose the unsound valuations of government-inflated currencies. He critiques the European attempt to fix exchange rates and create a single currency as a step toward centralized statism, and he praises the market for triumphing over these inflationary and centralizing plans.
Read full textRothbard critiques the push by Secretary James Baker and supply-siders for a new international order of fixed exchange rates based on a secret commodity index. He argues that this is a recipe for coordinated world-wide inflation and that any system not based on genuine gold redemption is destined for crisis and collapse.
Read full textRothbard argues that government attempts to fix exchange rates inevitably lead to monetary crises and currency shortages through Gresham's Law. He critiques the Clinton administration's intervention to prop up the dollar and the peso, warning that Nafta is being used as a back-channel for international currency regulation and centralized economic planning.
Read full textRothbard describes the long-held Keynesian goal of a single world currency issued by a World Central Bank. He explains how the move toward a European Central Bank is a stepping stone to this global inflationary system and warns that such a coordinated world-wide inflation would eventually lead to global hyperinflation.
Read full textRothbard explains that monetary inflation is essentially counterfeiting that redistributes wealth and distorts investment patterns, even if prices remain stable. He argues that the 'Reagan miracle' of low price inflation despite high money growth was due to temporary offsets like the high dollar and falling oil prices, and he predicts a resumption of price inflation as these factors disappear.
Read full textRothbard argues that the banking system is inherently unsound due to fractional-reserve banking, which makes banks perpetually insolvent and vulnerable to runs. He critiques the FDIC as a 'house of cards' that relies on the Fed's power to print money, and he advocates for a return to a sound system of 100% reserves to prevent chronic inflation and bank collapses.
Read full textRothbard analyzes the mechanics of bank runs, explaining that they occur because banks do not have enough cash to meet their demand obligations. He argues that federal deposit insurance only 'works' by promising unlimited inflation to bail out insolvent banks, and he calls for the abolition of these agencies to restore a sound, non-inflationary banking system.
Read full textRothbard analyzes the Savings and Loan (S&L) crisis, arguing that the proposed 'fees' on depositors are actually taxes and that the concept of 'insuring' a fractional-reserve banking system is a logical fallacy. He contends that the industry is inherently bankrupt because it operates on a 'con-game' of promising immediate redemption while lending out deposits, and he advocates for allowing insolvent banks to fail rather than bailing them out at taxpayer expense.
Read full textThis section discusses the return of high inflation in the late 1980s, contrasting the Austrian view of money supply and human expectations with the mechanical models of the Chicago School. Rothbard criticizes the Federal Reserve's 'gradualism' and predicts that a recession is the inevitable and necessary correction for the preceding inflationary boom.
Read full textRothbard critiques the government's use of 'core inflation' rates to downplay rising costs by excluding volatile categories like food and energy. He argues that the true cause of inflation is the federal government's expansion of the money supply, which it attempts to hide through statistical manipulation and blaming wage increases.
Read full textRothbard provides a critical profile of Alan Greenspan upon his appointment as Fed Chairman, characterizing him as a 'conservative Keynesian' and a 'pragmatist' who maintains a philosophical belief in the gold standard while consistently supporting interventionist policies. He highlights Greenspan's role in 'saving' Social Security through tax increases and his ties to the financial-political elite.
Read full textRothbard deconstructs the 'mystery' and 'majesty' surrounding the Federal Reserve Chairman, arguing that the institution functions as a government-enforced banking cartel. He explains how the Fed creates money out of thin air to buy government securities, which then serves as the basis for further inflationary credit expansion by private banks.
Read full textRothbard celebrates the minting of the American Eagle gold coin as a first step toward sound money but criticizes its 'legal tender' value of $50 as an attempt to prevent it from circulating as currency. He outlines a plan for returning to a gold standard by tying the dollar to a fixed weight of gold and abolishing the Federal Reserve.
Read full textIn this introduction to international trade issues, Rothbard defends Pat Buchanan against charges of protectionism while accusing the Bush Administration of hypocrisy. He argues that true free trade requires not only the absence of tariffs but also the removal of domestic regulations and subsidies that distort competition.
Read full textRothbard critiques the Bush administration's approach to 'free trade,' arguing that regional trade blocs like the EEC and NAFTA actually increase regulation and bureaucracy rather than promoting genuine freedom. He asserts that true free trade requires only unilateral cuts in tariffs and regulations, while condemning foreign aid as a systematic racket that taxes Americans to subsidize export firms and foreign governments.
Read full textThe author warns against the Keynesian drive for a world central bank and cartelized paper money, which he views as a path toward world economic government and global inflation. He contrasts the positions of presidential candidates, noting Pat Buchanan's opposition to foreign aid and economic globalism as being closer to genuine free trade principles than his contemporaries.
Read full textRothbard deconstructs NAFTA, labeling it a mercantilist 'trade agreement' rather than a free trade treaty. He argues that it centralizes power in supranational commissions, enforces 'upward harmonization' of taxes and regulations, and serves as a vehicle for export subsidies and foreign aid to Mexico. He highlights the irony of supporting the Mexican PRI government while it maintains a state monopoly on oil and gas.
Read full textFollowing the passage of NAFTA, Rothbard analyzes the political alignment that supported it, including big business, finance, and media. He argues the fight was actually about advancing a 'New World Order' of managed trade and globalist foreign policy. He notes the hostility of establishment think tanks toward free-market critics of the treaty and suggests that rising nationalism may eventually counter this globalist trend.
Read full textA historical and economic critique of the American steel industry's reliance on government protection. Rothbard traces the industry's lobbying efforts from the War of 1812 through the 1990s, arguing that tariffs and quotas only subsidize inefficiency. He dismisses 'dumping' as a benefit to consumers and explains how protectionist arguments shift from 'infant' to 'senescent' industry metaphors to maintain permanent subsidies.
Read full textRothbard argues against the 1980s disinvestment campaign targeting South Africa, contending that economic sanctions and withdrawals primarily harm the black workers they intend to help. He posits that free-market capitalism is the best antidote to racism because it penalizes discriminatory hiring, whereas apartheid is a state-enforced system that socializes the costs of racism.
Read full textAn analysis of the DeBeers diamond cartel, explaining that its longevity was due to South African government enforcement rather than market forces. Rothbard describes how the cartel is currently being undermined by a recession and a surge of 'illegal' diamond prospecting in Angola, where the government can no longer enforce cartel restrictions, potentially leading to a triumph of free competition.
Read full textRothbard defends the oil industry against accusations of 'price gouging' following the Iraqi invasion of Kuwait. He explains that price increases are the result of anticipated supply drops and that speculators perform a vital service by smoothing market volatility. He warns that government price controls, not corporate greed, are the cause of gas lines and shortages.
Read full textRothbard questions the motives behind the U.S. military buildup in Saudi Arabia, dismissing 'police action' and 'cheap oil' justifications. He suggests the intervention is actually an 'Oil War' intended to protect the profits and control of the Rockefeller-aligned oil companies (like Aramco and Mobil) and construction firms (like Bechtel) against an 'outlier' state like Iraq.
Read full textRothbard recounts a 1986 visit to Poland for an academic conference, noting that despite the economic decay of socialism, the Polish intellectuals were remarkably free and universally skeptical of government propaganda. He observes a shared desire for a sovereign, non-communist Poland among the scholars and even some government agents.
Read full textRothbard analyzes the 1990 Peruvian election, explaining why the 'free-market' candidate Mario Vargas Llosa lost to Alberto Fujimori. He argues that Vargas Llosa's alliance with state capitalists and his endorsement of Brazil's Draconian deflationary 'shock treatment' (which froze bank accounts) alienated the masses, who saw Fujimori as a fellow outsider.
Read full textRothbard discusses a proposal by Fed Governor Wayne Angell for the Soviet Union to adopt a gold standard to restore the ruble's credibility. He notes Angell's admission that the gold standard provides 'honest money,' which implies that Western fiat currencies are 'dishonest' but still coasting on their historical association with gold.
Read full textRothbard argues against U.S. financial aid to Mikhail Gorbachev, asserting that such aid only strengthens the parasitic Soviet state and delays necessary market reforms. He suggests that the best help the West can offer is the example of property rights and the advice to privatize and deregulate immediately.
Read full textRothbard highlights the plight of Vietnamese-American fishermen in California, who are being targeted by the Coast Guard under the archaic Jones Act. He argues that these hard-working refugees are victims of a 'Catch-22' created by inefficient Anglo competitors and environmentalists who have restricted the waters where they can legally fish.
Read full textRothbard celebrates the global collapse of socialism in the late 1980s as a vindication of Ludwig von Mises's argument that central planning cannot work. He notes that even communist leaders are admitting the failure of the system and moving toward markets, leaving Western intellectuals as the last remaining defenders of socialist ideology.
Read full textA reflection on the revolutionary movements in Poland, Hungary, and China in 1989. Rothbard argues that economic and political freedom are inseparable, as demonstrated by the tragedy at Tiananmen Square. He observes that the 'Internationale' has become a song for the masses to use against their communist oppressors.
Read full textRothbard explores the practical difficulties of transitioning from socialism to capitalism. He discusses Paul Craig Roberts's proposal to accommodate the old 'nomenklatura' by giving them shares in state factories alongside workers, arguing that while justice might demand their removal, a peaceful transition to private property is the primary goal.
Read full textRothbard argues against gradualism in economic reform, advocating for the immediate abolition of all price controls and the universal privatization of state assets through 'homesteading.' He cites Ludwig Erhard's post-WWII reforms in West Germany as proof that radical, overnight decontrol is the only effective path to recovery.
Read full textRothbard discusses the introduction of stock markets in communist countries like China and Hungary. Using Mises's criterion that a stock market is the heart of capitalism, he argues that these developments signal the end of socialism in those nations, particularly in Hungary where daily international exchanges and foreign ownership are being permitted.
Read full textRothbard warns that successful wars often lead to an expansion of domestic statism, as leaders attempt to apply military-style mobilization to social issues. He critiques President George Bush's post-Gulf War domestic agenda as a continuation of the 'war collectivism' that has plagued American politics since World War I.
Read full textAn analysis of the 1994 Republican electoral victory. Rothbard argues that while the public voted for a revolution against Big Government, the Republican leadership (specifically Gingrich and Dole) is already betraying those principles by maintaining high spending, global interventionism, and managed trade (GATT/WTO). He places hope in the 'Hard Right' freshmen and grass-roots pressure to keep the leadership in line.
Read full textRothbard critiques 'Quick Fix' political gimmicks like the Balanced Budget Amendment, which he argues would lead to higher taxes rather than lower spending. He also warns against 'privatizing' tax collection, comparing it to the historically hated practice of 'tax farming,' and urges a focus on rolling back the total size of government rather than just the deficit.
Read full textAn obituary and intellectual biography of W.H. Hutt. Rothbard praises Hutt's work on labor theory, his demonstration that apartheid was rooted in union protectionism, and his critiques of Keynesianism. He highlights Hutt's defense of Say's Law and his personal kindness as a scholar.
Read full textRothbard evaluates the legacy of F.A. Hayek following his death. While praising Hayek's early work on Misesian business cycle theory and his courage in writing 'The Road to Serfdom,' Rothbard critiques Hayek's later shift toward social philosophy, which he views as inconsistent and overly skeptical of human reason compared to Mises's systematic approach.
Read full textA brief introductory marker for the obituary of V. Orval Watts.
Read full textAn obituary and biographical sketch of V. Orval Watts, a leading free-market economist. It details his academic background at Harvard, his work with Leonard Read at the Los Angeles Chamber of Commerce and FEE, and his later teaching career at Northwood University. The segment highlights his critiques of Keynesianism, unions, and the United Nations.
Read full textA tribute to Margit von Mises, the widow of Ludwig von Mises, following her death at age 102. Rothbard describes her tireless efforts to preserve and publish her husband's legacy, her own memoir, and her embodiment of the 'Old Vienna' culture. The essay emphasizes her strength of character and devotion to the cause of liberty.
Read full textRothbard recounts the history and mission of the Ludwig von Mises Institute, founded in 1982. He explains the necessity of the Institute in the face of an 'Austrian' establishment that sought to dilute Mises's uncompromising principles. The segment details the Institute's programs, including its journals, fellowships at Auburn University, and summer conferences, framing it as the true home of Misesian thought.
Read full textA lengthy analysis of the 1994 Republican electoral victory, which Rothbard terms a 'populist revolution' against big government. He warns of the potential for betrayal by Republican elites (citing the Reagan era as a precedent) and critiques the 'bipartisan' establishment. The essay covers the judicial blockage of California's Proposition 187, the passage of GATT/WTO, and provides a radical checklist for true reform, including defanging the federal judiciary and abolishing the Federal Reserve.
Read full textA comprehensive list of the original publication dates for the articles in 'Making Economic Sense' in 'The Free Market' newsletter, followed by a detailed alphabetical index of subjects and names mentioned throughout the book.
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