War and Foreign Policy

Mises illustrates his case with a review of the fall of Germany, from the collapse of classical liberalism to the rise of nationalism and socialism

The Virginia Resolves said Virginia citizens should not obey the Stamp Acts. Intimidation of the tax collectors effectively nullified the Act. Colonialists felt that the Crown had violated their relationship. The Intolerable Acts were the final straw. They stated their grievances in the Declaration of Independence on July 4, 1776.

The Americans successfully used the different tactic guerilla warfare against the staid and rigid British soldiers. War caused a large increase in the paper money supply - the Continental -  triggering hyperinflation and loss of purchasing power.

Salutary neglect of the colonies spurred innovation and abundance in a spirit of freedom. Bitterness crept into the relationship after the French and Indian War when the British kept colonialists out of certain territories and began taxing them internally and increased tariffs.

All the oratory of the advocates of government omnipotence cannot annul the fact that there is but one system that makes for durable peace: a free market economy. Government control leads to economic nationalism and thus results in conflict.

The only genuine, long-term solution is to force the state to retrench and allow the essential characteristics of free enterprise to reassert themselves in the market, especially in the realm of market prices and private property. There is no middle way. To plan otherwise is to plan for chaos.

The Spanish and Portuguese were not very effective about colonizing the New World, despite finding gold and silver and claiming land. The London Company arrived about 1611 with indentured servants. Life expectancy was as young as twenty-one, although food supplies were better in the New World. Land was cheap and available to most immigrants.

When the enemy is at the gates, the individual abdicates his self-reliance and places himself unreservedly under the direction of the captain; he g

The "protective" service rendered by the State is paid for not only with taxes but also with subservience. Society is much poorer for it.

If Washington had done nothing at all after 9/11/01, either in domestic or foreign policy, the world would be much more peaceful and prosperous today.