Austrian Economics and the Left

Matt Yglesias has a post up over at Slate.com on Ron Paul and Austrian Economics.  I won’t get into the details of what he got right and wrong about his largely honest attempt to explain the Austrian School to Leftists (the word “crank” was only used once!  A new high for the Left).  Instead, what I’d like to do is hone in on this whopper:

Many of the original Austrians found their business cycle ideas discredited by the Great Depression, in which the bust was clearly not self-correcting […]

Has Yglesias conveniently forgotten about Hoover’s attempts to prop up wages and his signing of the protectionist Smoot-Hawley tariff?

Why don’t Hoover’s policies get more attention by economists and journalists trying to understand and explain the Great Depression, or am I missing something?

Leadership, International Trade, Hormuz and Ron Paul, Minorities and Ron Paul: The Last-Before-Last Republican Follies

Well, I am just about debated out. It’s difficult for all the candidates or pretend-candidates to maintain their dignity while answering complex questions in sixty seconds with thirty seconds for rebuttals. It’s worse when the debate is moderated, and many of the questions formulated, by one local unknown and two liberals, one of whom has been an air-head for as far back as I can remember. I am referring to Dianne Sawyer, of course, and I can remember at least thirty years.

Two general comments about the Saturday night New Hampshire debate. (I missed the Sunday morning debate, sorry.) First, as usual, much time was wasted with questions and answers about “leadership.” I don’t understand the questions. I don’t understand the answers; I suspect (strongly) that the candidates understand neither the questions nor the answers about leadership. Leadership is a word that is worse than useless. Trust me, I taught management for about 25 years. If the concept were useful, I would have noticed. It’s useless the way baby-talk is useless. To the average one-year old, everything is a “wah.” It takes all the resources of parental love to assign to or to invent a meaning for each “wah” utterance. I don’t have such love for anything politicians say. Any politician who made it a rule to eschew completely the use of the word “leader” and of its derivatives would instantly gain in clarity and in sincerity.

My second comment is that, as happens every time, the candidates demonstrated their deep ignorance of basic concepts of international trade and of international economics in general. It makes me feel good that I taught the topic for about thirty years. I feel retrospectively, that I must have been doing something useful. I expect such ignorance among liberals. It’s disheartening to encounter it on the conservative and libertarian side. Continue reading