In Planning for Freedom [5], we find Mises commenting once more on the ravages of World War I as he discusses the Hindenburg Program [6]: had it had time to come to fruition, he suggests, “it would have transformed Germany into a purely totalitarian commonwealth.” Well, the war ended two years later, and the military dictatorship of Hindenburg and Ludendorff had indeed done much to create a totalitarian commonwealth. Within two years, as well, the Hindenburg Program had suggested to the Bolsheviks a practical program for achieving dissolution of capitalism. As Paul Johnson put it in Modern Times:
So one might say that the man who really inspired Soviet economic planning was Ludendorff. His "war socialism" certainly did not shrink from barbarism. It employed slave-labourers. In January 1918 Ludendorff broke a strike of 400,000 Berlin workers by drafting tens of thousands of them to the front in "labor battalions".
Hindenburg’s famous Quartermaster-General, Erich Ludendorff, was the chief promoter of the “Hindenburg” Program, but it was in fact a group of bureaucrats, army officers, technocratic intellectuals, and a crony capitalists who shaped it.
It was still a “mixed economy” affair, but one that Mises came back to more than once to demonstrate the easy continuity from mixed economy to omnipotent government.
Nineteen-sixteen once again. A major boost to the health of the state [7].
(See also Hunt Tooley's book, The Great War: Western Front and Home Front [8], and his two blogs, Design of Violent Century [9] and The World At War and the World That Was [10].)
Links
[1] https://mises.org/profile/t-hunt-tooley
[2] https://mises.org/topics/war-and-foreign-policy
[3] https://mises.org/topics/world-history
[4] https://mises.org/austrian-school/interventionism
[5] https://mises.org/library/planning-freedom-and-twelve-other-essays-and-addresses
[6] https://mises.org/library/hindenburg-program-1916-central-experiment-wartime-planning
[7] https://mises.org/library/bourne-war
[8] http://www.amazon.com/Great-War-Western-Front-Home/dp/1137471263/tag?=misesinsti-20
[9] http://parispeace1919.blogspot.com/
[10] http://twentiethcenturyviolence.blogspot.com/