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Source link: http://archive.mises.org/14989/they-call-it-vindication/

They call it vindication

December 13, 2010 by

NYT: Ron Paul, GOP Loner, Comes In From the Cold

If there is vindication here, Mr. Paul says, it is for Austrian economic theory — an anti-Keynesian model that many mainstream economists consider radical and dismiss as magical thinking.

The theory argues that markets operate properly only when they are unfettered by government regulation and intervention. It holds that the government should not have a central bank or dictate economic or monetary policy. Once the government begins any economic planning, such thinking goes, it ends up making all the economic decisions for its citizens, essentially enslaving them.

{ 11 comments }

BMB December 13, 2010 at 12:48 pm

The theory argues that markets operate properly only when they are unfettered by government regulation and intervention.

Wait, which Austrian or Austrians say this? That would be quite a “radical and magical” claim indeed.

J. Murray December 13, 2010 at 2:23 pm

I dunno, I think it’s far more magical to think that a legislative body can repeal the laws of reality by signing a piece of paper.

Stephen Adkins December 13, 2010 at 2:27 pm

that made me chuckle.

D. Saul Weiner December 13, 2010 at 5:20 pm

I don’t think that this statement is far from the truth. What is wrong is calling the various ways that government interferes in free exchange “regulation” (when it is mostly dys-regulation).

Also, Austrians support the punishment of fraud, which has never been considered permissible in the free market. It is akin to stealing, whereas so-called regulations prohibit voluntary, consensual exchange. And the casual reader would probably not grasp this.

Phinn December 13, 2010 at 12:59 pm

The theory argues that markets operate properly only when they are unfettered by government regulation and intervention.

I picked up on the same sentence.

Imagine if it were written as something like this: “The theory argues that markets operate best when they are free from government manipulations, such as price-fixing schemes, the restriction of the supply of goods or interference with interest rates.”

The phrase “Unfettered by government regulation” is a code for “Austrian economists want you to live in a Dickensian nightmare, you filthy peasant.”

Phinn December 13, 2010 at 1:05 pm

Or maybe, “The theory argues that when a government interferes with the free setting of prices, it deprives everyone of crucial economic information, which consumers need in order to make informed decisions about what to buy, and which businesses need in order to identify the products and services that consumers really want.”

J. Murray December 13, 2010 at 2:37 pm

It’s a shame. Few people understand that in Dickenson’s time (including Dickenson), government was incredibly pervasive in the industrialization movement, which is why it was so ugly.

Artisan December 13, 2010 at 4:32 pm

I never thought such a “neutral” comment about Ron Paul would have been possible in the NYT.

Smeq December 13, 2010 at 5:29 pm

I guess everything that does not support government intervention, doesn’t advocate more of it or recommends less of it is magical thinking.

Bruce Koerber December 13, 2010 at 6:01 pm
Matt December 14, 2010 at 3:05 am

I have noticed how their coverage and framing of him has changed a lot, and this article is an especial step forward. It used to be they would talk about him without even mentioning Austrian economics, and just kind of tacitly state, through their tone talking about him, that his views all came from him being extremely old-fashioned and kooky. Then there was that article about the ideological underpinning of the Tea Party that mentioned Austrian economics but failed to explain anything about it, opting instead to just faintly make fun of its readers and lump Mises and Bastiat with Mark Skousen.
There are more examples one could find. This is the most thorough attempt to at least explain the economics behind Ron Paul’s positions, and I think it shows that they are beginning to take him more seriously and view the ideology as a serious threat.

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