Mises Daily

"There is no greater example of why it is morally incumbent on everyone to oppose all forms of government intervention in all times. That includes, especially, wars that socialize the economy."

It was Misesian (myself) vs. Rothbardians (nir, wilderness, and Conza), and it got rocky a few times. But tempers cooled, concessions were made, compliments were passed, common ground was discovered, and new ways of looking at the issue were found by both sides.

These are the people who said that there was no housing bubble, that there was no danger of financial crisis, and then that a financial crisis would not impact the real economy. These are the same people who said they needed a multitrillion dollar bailout of the financial industry, or we would get severe trouble in the economy.

In the America of Thomas Jefferson's Declaration these categories and institutions were to have the opportunity which they were never fully to achieve in their constricted English home.

"While there are many who will agree that they, personally, should not kill, steal, enslave, it is only the individual with a first-rate moral nature who will have no hand in encouraging any agency — even government — in doing these things for him or others."

Rival explanations — for example ones that claim government deficit spending doesn't help an economy — fit the evidence far better.

"The conference on Austrian economics was planned as a catalyst for expanding interest in the praxeological approach. To this end, the conference must be declared a resounding success."

[Introduction to Less Than Zero: The Case for a Falling Price Level in a Growing Economy]

There is, however, no denying that the banks have tremendous vested interest in influencing the policies of the Fed, nor that the power being so narrowly vested in the president makes him a special target for influence. Still, the power to control the Fed is not in the hands of its "owners" but firmly in the hands of the federal government and the president of the United States.

The problems involved will become discernible as soon as the wartime attitude in the United States toward financial and trade matters is replaced by a more realistic mentality.