The Austrian Economics Wiki - User contributions [en]

Resource-based economics

2014-01-08T06:02:23Z

John James: expanded

'''Resource based economics''' or resource-based economy ('''RBE''') is a proposed system in which all [[goods]] and [[service]]s are available without the use of [[money]], [[credits]], [[barter]] or any system of [[debt]] or servitude. The setup has been advocated largely by a group called [[The Venus Project]], and promoted in the [[The Zeitgeist Movement|Zeitgeist]] film series.

Under a resource-based economy, all resources are said to be the [[the commons|common heritage]] of all of the inhabitants. The premise upon which the system is based is that the Earth is abundant with plentiful resources, and that the practice of rationing resources through monetary methods is irrelevant and counter productive to human survival. Proponents claim that under this system, money is replaced by gratitude, trading is replaced by sharing, and ownership is replaced by usership in a way that everyone's needs are met.<ref>{{cite web|url=http://occupyconcepts.org/wiki/Resource-based_Economy|title=Resource-based Economy|publisher=OccupyConcepts.org}}</ref> RBE was partially used in camps of the [[Occupy Wall Street]].{{fact|December 2013}}

The [[Austrian economics|Austrian]]/[[free-market]] (as well as mainstream) criticism of resource-based economics is largely rooted in the underlying reasons money developed. The famous [[tragedy of the commons]] offers reasoning as to why resources held "in common" end up being wholly depleted, and illustrates an argument for the need for [[property rights]]. Opponents of RBE point out that despite the advances in technology throughout history, [[scarcity]] still exists, and will always exist...thereby necessitating a system of property rights, as well as a means to transact for goods and services one desires.

==Notes==
{{reflist}}

==Links==
* {{md|4636|Venus Needs Some Austrians|[[Robert P. Murphy]]|August 2010}}
* [http://www.lewrockwell.com/lrc-blog/a-resource-based-economy/ A Resource Based Economy] by David Kramer, October 2012
* {{md|6140|Abundance vs. Scarcity|[[Frederic Bastiat]]|(''[[The Bastiat Collection]]'')}}
* {{mb|9310|Scarcity and Property Rights|[[Stephan Kinsella]]|January 2009}}
* {{md|4349|HuffPo Abolishes Scarcity|Robert P. Murphy|May 2010}}
* ''[[The Free Market]]'': [http://mises.org/freemarket_detail.aspx?control=429 What Scarcity Implies] by D.W. MacKenzie, February 2003

[[Category:Economics]]

Resource-based economics

2013-12-13T17:46:43Z

John James: added criticism + links

'''Resource based economics''' or '''RBE''' is a system in which all [[goods]] and [[service]]s are available without the use of [[money]], [[credits]], [[barter]] or any system of [[debt]] or servitude. All resources said to be the [[the commons|common heritage]] of all of the inhabitants. The premise upon which this system is based is that the Earth is abundant with plentiful resources and that the practice of rationing resources through monetary methods is irrelevant and counter productive to human survival. RBE was partially used in camps of the [[Occupy Wall Street]].{{fact|December 2013}} Proponents claim that under this system, money is replaced by gratitude, trading is replaced by sharing and ownership is replaced by usership in a way that everyone's needs are met.<ref>{{cite web|url=http://occupyconcepts.org/wiki/Resource-based_Economy|title=Resource-based Economy|publisher=OccupyConcepts.org}}</ref>

The [[Austrian economics|Austrian]]/[[free-market]] (as well as mainstream) criticism of resource-based economics is largely rooted in the underlying reasons money developed. Opponents point out that despite the advances in technology throughout history, [[scarcity]] still exists, thereby necessitating a system of [[property rights]], as well as a means to transact for goods and services one desires.

==Notes==
{{reflist}}

==Links==
* {{md|4636|Venus Needs Some Austrians|[[Robert P. Murphy]]|August 2010}}
* [http://www.lewrockwell.com/lrc-blog/a-resource-based-economy/ A Resource Based Economy] by David Kramer, October 2012
* {{md|6140|Abundance vs. Scarcity|[[Frederic Bastiat]]|(''[[The Bastiat Collection]]'')}}
* {{mb|9310|Scarcity and Property Rights|[[Stephan Kinsella]]|January 2009}}
* {{md|4349|HuffPo Abolishes Scarcity|Robert P. Murphy|May 2010}}
* ''[[The Free Market]]'': [http://mises.org/freemarket_detail.aspx?control=429 What Scarcity Implies] by D.W. MacKenzie, February 2003

[[Category:Economics]]

Copyright infringement

2013-11-03T15:08:46Z

John James: /* Links */cat fix

Generally, a '''copyright infringement''' occurs when a [[copyright]]ed work is reproduced, distributed, performed, publicly displayed, or made into a derivative work without the permission of the copyright owner.<ref name="Copyright_infringement">[http://www.copyright.gov/help/faq/faq-definitions.html "Definitions"], ''U.S. Copyright Office'', referenced 2011-10-27.</ref>

Copyright infringement is also frequently labeled as '''piracy'''.

==Counterfeiting and piracy==
"Pirated copyright goods" refer to any goods that are copies made without the consent of the right holder or person duly authorized by the right holder.

"Counterfeit goods" refer to any goods, including packaging or bearing without authorization, a trademark that is identical to a trademark validly registered for those goods, or that cannot be distinguished in its essential aspects from such a trademark, and that, thereby, infringes the rights of the owner of the trademark in question.<ref name="GAO_Effects">[http://www.gao.gov/new.items/d10423.pdf "Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods"] (pdf), ''United States Government Accountability Office'', April 12, 2010. Referenced 2011-10-23.</ref>

==Effects of piracy==
A 2010 study by United States Government Accountability Office summed up the opinions of experts that it is difficult, if not impossible, to quantify the net effect of counterfeiting and piracy on the U.S. economy as a whole. Few studies have been conducted on positive effects, and little is known about their impact on the economy. Although some literature and experts suggested that negative effects may be overstated, in general, literature and experts indicated the negative effects of counterfeiting and piracy on the U.S. economy outweigh the positive effects. Since there was an absence of data concerning these potential effects, the net effect could not be determined with any certainty.<ref name="GAO_Effects" />

A May, 2011 study for the UK Prime Minister urged that "all IP policy be based upon a rigorous evaluation of evidence and that the UK’s stance in international negotiations be visibly evidence-based." It also notes:<ref name="Hargreaves_Review">Ian Hargreaves. [http://www.ipo.gov.uk/ipreview-finalreport.pdf "Digital Opportunity: A Review of Intellectual Property and Growth"] (pdf), May 2011, referenced 2011-10-23.</ref>

<blockquote>"No one doubts that a great deal of copyright piracy is taking place, but reliable data about scale and trends is surprisingly scarce. Estimates of the scale of illegal digital downloads in the UK ranges between 13 per cent and 65 per cent in two studies published last year. A detailed survey of UK and international data finds that very little of it is supported by transparent research criteria. Meanwhile sales and profitability levels in most creative business sectors appear to be holding up reasonably well. We conclude that many creative businesses are experiencing turbulence from digital copyright infringement, but that at the level of the whole economy, measurable impacts are not as stark as is sometimes suggested."</blockquote>

==Piracy in emerging countries==
A 2011 study called "Media Piracy in Emerging Economies" focused on countries, where media piracy is rampant, like [[Brazil]], [[India]], [[Russia]], [[South Africa]], [[Mexico]] and [[Bolivia]]. The report argues that efforts to enforce copyright law have largely failed, and that the problem of piracy is better conceived as a failure of affordable access to media in legal markets.

The major findings in the report:

* '''Prices are too high.''' High prices for media goods, low incomes, and cheap digital technologies are the main ingredients of global media piracy. Relative to local incomes in Brazil, Russia, or South Africa, the retail price of a CD, DVD, or copy of MS Office is five to ten times higher than in the US or Europe. Legal media markets are correspondingly tiny and underdeveloped.
* '''Competition is good.''' The chief predictor of low prices in legal media markets is the presence of strong domestic companies that compete for local audiences and consumers. In the developing world, where global film, music, and software companies dominate the market, such conditions are largely absent.
* '''Antipiracy education has failed.''' The authors find no significant stigma attached to piracy in any of the countries examined. Rather, piracy is part of the daily media practices of large and growing portions of the population.
* '''Changing the law is easy.''' Changing the practice is hard. Industry lobbies have been very successful at changing laws to criminalize these practices, but largely unsuccessful at getting governments to apply them. There is, the authors argue, no realistic way to reconcile mass enforcement and due process, especially in countries with severely overburdened legal systems.
* '''Criminals can’t compete with free.''' The study finds no systematic links between media piracy and organized crime or terrorism in any of the countries examined. Today, commercial pirates and transnational smugglers face the same dilemma as the legal industry: how to compete with free.
* '''Enforcement hasn’t worked.''' After a decade of ramped up enforcement, the authors can find no impact on the overall supply of pirated goods.<ref name="SSRC_Emerging">The study's results were summed up in [http://blog.mises.org/16042/media-piracy-better-described-as-a-global-pricing-problem/ Media Piracy: "better described as a global pricing problem"] by Israel Curtis, March 15, 2011. See the complete study: [http://piracy.ssrc.org/the-report/ "Media Piracy in Emerging Economies"] (chapters; [http://piracy.ssrc.org/wp-content/uploads/2011/06/MPEE-PDF-1.0.4.pdf full pdf]), ''Social Science Research Council'', referenced 2011-10-27.</ref>

==History of piracy==
===Music sheets===
At the turn of nineteenth century, the music industry was different from the one we are familiar with today. No CDs, no mass concerts, and no radio and TV. The core source of revenue was the sale of printed sheet music, which was carried out worldwide and on a very large scale. For example, in Britain alone about twenty million copies were printed annually. The firms carrying out this business were not large multinationals as today, but family owned companies, such as Ricordi in Milano, which, nevertheless, managed to reach also foreign countries.
Apparently these "majors" managed to collude quite efficiently among themselves. The records show that the average script sold in the U.K. for about a fourteen pence. Then piracy arrived, as a consequence of two changes: the development of photolithography, and the spread of "piano mania", which increased the demand for musical scripts by orders of magnitude. Pirated copies were sold at two pence each.

Naturally the "authorized publishers" had a hard time defending their monopoly power against the pirates, enforcement costs were high and the demand for cheap music books was large and hard to monitor. Music publishers reacted by organizing raids on pirate houses aimed at seizing and destroying the pirated copies. This started a systematic and illegal "hit and destroy" private war. Hit squads of the authorized publishers burned down entire warehouses filled with "pirated" copies of sheet music. The war lead, in 1902, to the approval of a new copyright law. The latter made violation of copyrights a matter for the penal code, putting the police in charge of enforcing what, until then, was protected only by the civil code.

At least in the case of sheet music, the police campaign did not work. After a few months, police stations were filled with tons of paper on which various musical pieces were printed. Being unable to bring to court what was a de-facto army of "illegal" music reproducers, the police itself stopped enforcing the copyright law.

The eventual outcome? The fight continued for a while, with "regular" music producers keen on defending their monopoly and restricted sales strategy, and "pirates" printing and distributing cheap music at low prices and very large quantities. Eventually, in 1905, the king of the pirates, James Frederick Willett, was convicted for conspiracy. The leader of one of the music publishers associations, and the man who had invented the raids, launched the Francis, Day & Hunter’s new sixpenny music series. Expensive sheet music never returned.

===Birth of Hollywood===
A fact not heavily advertised by the [[Motion Picture Association of America]] (MPAA) is that the Hollywood film
industry was built by pirates escaping the heavy hand of intellectual monopoly. After a long period of competitive fighting, in 1908 the major producers of film and movie equipment – including the Edison Film Manufacturing Company and the Biograph company – formed a cartel in the form of the Motion Picture Patents Company (MPCC). Through this instrument, they demanded licensing fees from all film producers, distributors, and
exhibitors. They vigorously prosecuted "independent" filmmakers who refused to pay royalties. In 1909 a subsidiary of the MPPC, the General Film Company, tried to confiscate equipment used by the unlicensed companies, disrupting their operations.

To avoid the legal battles and royalties payments, the independents responded by moving from New York to California.

California was remote enough from Edison's reach that filmmakers like Fox and Paramount could move there and,
without fear of the law, pirate his inventions. Hollywood grew quickly, and enforcement of federal law eventually
spread west. But because patents granted their holders a truly "limited" monopoly of just 17 years (at that time), the patents had expired by the time enough federal marshals appeared. A new industry had been founded, in part from the piracy of Edison's creative property.

===Recording industry===
The recording industry grew out of a similar kind of piracy as the movie industry. In fact, the 1909 legislation that gave the MPCC the right to charge licensing fees to all moviemakers also began regulating the recording industry by introducing statutory licensing for recorded music. By doing so, Congress struck a compromise between composers, who wanted complete monopoly over the performance of their pieces, and recording artists, whose trade had grown briskly and competitively during the previous two or three decades. Between 1878, when Edison’s first tinfoil phonograph was patented, and 1889, when The Columbia Phonograph Co. started to market a treadle-powered graphophone, recording music to be sold for commercial purposes became possible. The development, following Henry Fourneaux's prototype, of the player piano also greatly facilitated recording of music that would, otherwise, require an expensive ensemble to be performed. Although composers had exclusive rights to control sheet music and public performances, there was no clear right to control over recordings of music – something that had not previously existed. This ended in 1909 when Congress extended copyright to recordings but imposed statutory licensing; the recording industry grew – largely on the basis of recordings "pirated" from composers.

It is notable that Thomas Edison was sitting on both sides of the fence in this period. When it came to movies, because he was holding strong patents on the main tools used to tape and show movies, Edison had to favor a strong enforcement of intellectual property. At the same time, though, his interests in the recorded music industry argued against an extension of copyright protection. Demand for Edison’s phonograph obviously increased
as cheaper and more abundant recordings of music became available, which was facilitated by a weak enforcement of the composers’ monopoly power.<ref name="Boldrin_Govt_Docu">Michele Boldrin and David K. Levine. [[Against Intellectual Monopoly]], Chapter 2, p. 35-37.</ref>

==References==
{{Reflist}}

==Links==
* {{wplink}}

[[Category:Intellectual property|Copyright]]

Stephan Kinsella

2013-11-03T15:06:36Z

John James: +cat

[[File:Stephan Kinsella.jpg|right]]
'''Norman Stephan Kinsella''' (born 1965) is an [[United States|American]] [[intellectual property]] attorney and [[libertarian]] legal theorist.

He is the founder and Editor of ''[[Libertarian Papers]]'', Director of the [[Center for the Study of Innovative Freedom]] (C4SIF), and General Counsel for Applied Optoelectronics, Inc. He is a former partner with Duane Morris LLP and was adjunct law professor at South Texas College of Law, and is currently a senior fellow at the [[Ludwig von Mises Institute]].

Kinsella has published numerous articles and books on IP law, international law, and the application of libertarian principles to legal topics. He received an LL.M. in international business law from King’s College London, a JD from the Paul M. Hebert Law Center at [[Louisiana State University|LSU]], and B.S. and M.S. in electrical engineering degrees also from LSU.

Kinsella's libertarian articles have appeared in journals such as ''[[The Freeman]]'', ''[[The Journal of Libertarian Studies]]'', ''[[Reason Papers]]'', the ''[[Quarterly Journal of Austrian Economics]]'', [[LewRockwell.com]], and [[Mises.org]].

==Bibliography==
*''[[Property, Freedom, and Society|Property, Freedom, and Society: Essays in Honor of Hans-Hermann Hoppe]]'' (co-editor, with [[Jörg Guido Hülsmann]], Mises Institute, 2009)
*''[[Against Intellectual Property]]''. Ludwig von Mises Institute, 2008. ISBN 978-1933550329
*''International Investment, Political Risk, and Dispute Resolution: A Practitioner's Guide'' (with Noah Rubins). Oxford University Press, 2005. ISBN 978-0379215229
*''Online Contract Formation'' (with Andrew Simpson). Oxford University Press, 2004. ISBN 978-0379215199
*''Protecting Foreign Investment Under International Law: Legal Aspects of Political Risk'' (with Paul E. Comeaux). Oceana Publications, 1997. ISBN 978-0379213713

==Links==
{{Contact faculty|nskinsella@gmail.com}}
* [http://www.kinsellalaw.com/ KinsellaLaw.com], Stephan Kinsella's legal website
* [http://www.stephankinsella.com/ StephanKinsella.com], Stephan Kinsella's libertarian website
* [http://c4sif.org C4SIF.org] Center for the Study of Innovative Freedom, Stephan Kinsella - Director
*[http://mises.org/fellow.aspx?id=25 Stephan Kinsella] at [[Mises Institute|Mises.org]]
** [http://blog.mises.org/author/stephan_kinsella/ Blog archive]
** [http://mises.org/media.aspx?action=author&ID=301 Media archive]
** [http://mises.org/literature.aspx?action=author&Id=301 Literature archive]
** [http://mises.org/articles.aspx?AuthorId=301 Daily Article archive]
** [http://blog.mises.org/15658/faculty-spotlight-interview-stephen-kinsella/ Faculty Spotlight Interview: Stephan Kinsella]
** [[Mises Academy]]: [http://academy.mises.org/faculty/stephan-kinsella/ Faculty bio]
* [http://www.kinsellalaw.com/publications/index.php List of publications]
* [http://www.lewrockwell.com/kinsella/kinsella-arch.html Archive of Kinsella commentary] from [[LewRockwell.com]]
* [http://c4sif.org/author/stephan-kinsella/ Archive of Kinsella commentary] from [[C4SIF.org]]
* [http://www.libertarianstandard.com/author/stephan-kinsella/ Archive of Kinsella commentary] from [[The Libertarian Standard]]

* Interviews
** [http://www.thedailybell.com/3710/Anthony-Wile-Stephan-Kinsella-on Kinsella on the Logic of Libertarianism and Why Intellectual Property Doesn't Exist] interview with Daily Bell (republished at C4SIF.org [http://c4sif.org/2012/03/daily-bell-interview-stephan-kinsella-on-the-logic-of-libertarianism-and-why-intellectual-property-doesnt-exist/ here])
** [http://blog.mises.org/14193/interview-with-kinsella/ Rethinking Intellectual Property] by Jeffrey Tucker, October 2010
** [http://blog.mises.org/12269/ Kinsella Intellectual Property discussion on Freedomain Radio Book Club] with [[Stefan Molyneux]], March 2010

* Courses
** [[Mises Academy]]
*** [http://academy.mises.org/courses/ip-reconsidered-intellectual-property-austrian-economics-and-libertarian-theory/ Rethinking Intellectual Property: History, Theory, and Economics]
**** [http://libertarianstandard.com/2011/12/25/kinsellasrethinking-intellectual-property-course-audio-and-slides/ Course audios & slides]
*** [http://academy.mises.org/courses/libertarian-legal-theory/ Libertarian Legal Theory: Property, Conflict, and Society]
**** [http://libertarianstandard.com/2012/01/01/kinsellas-libertarian-legal-theory-course-audio-and-slides/ Course audios & slides]
*** [http://academy.mises.org/courses/obama-patent-reform/ Obama's Patent Reform: Improvement or Continuing Calamity?]
*** [http://academy.mises.org/courses/libertarian-controversies/ Libertarian Controversies]
*** [http://academy.mises.org/courses/the-social-theory-of-hoppe/ The Social Theory of Hoppe]

* {{wplink}}

{{DEFAULTSORT:Kinsella, N. Stephan}}
[[Category:Anarcho-capitalists]]
[[Category:Jurists]]
[[Category:Political theorists]]
[[Category:Mises Institute Scholars]]
[[Category:Intellectual property]]

Argumentation:Software patents

2013-11-03T15:03:34Z

John James: +cat

A '''[[patent]]''' is a government grant to an inventor of the right to exclude others from making, using, or selling an invention, usually for a limited period.

Software patents are becoming a major threat to the software industry. The risk of software patent lawsuits forces software companies to obtain defensive patents in order to obtain cross-licensing agreements and discourage patent lawsuits through the threat of counter- suits. An entire industry of patent trolls extorts businesses with bogus patents by taking advantage of the fact that many businesses prefer to pay licensing fees than go to court.

One prominent form of patent abuse is "submarine patents" – patents which lie dormant until someone discovers their similarity to a popular technology. The [http://en.wikipedia.org/wiki/GIF#Unisys_and_LZW_patent_enforcement patent on the GIF image format] surfaced a decade after its widespread adoption on the web. The [http://en.wikipedia.org/wiki/Eolas Eolas] patent on web browser plug-ins cost Microsoft $521 million and forced tens of millions of web pages to be crippled or redesigned. The [http://en.wikipedia.org/wiki/NTP,_Inc.#RIM_patent_infringement_litigation RIM patent] cost Blackberry $612.5 million and nearly shut down service to millions of people despite the patent itself being invalidated.

==The problem of software patent enforcement==
A software algorithm is an abstract description of a general way to solve a problem, such as a mathematical formula. Many algorithms are popular because programmers have found them to be useful in different fields. Algorithms, such as sorting lists and organizing shopping carts are widely recognized as non-patentable. But how can one distinguish obvious ideas from patentable ones? Does the application of an existing algorithm to a new field deserve a patent?

==Software patents cripple software development==
Software patents make software development risky because it is so difficult to know whether an idea has been implemented before. Over the years, millions of software programs have been written using billions of algorithms. Is it not feasible to have to study thousands of patents to make sure one does not violate the rights of others, while at the same time designing an integrated product. As a consequence, innovative companies are faced with the constant threat of discontinuing products or paying enormous amounts.

The success of companies such as Microsoft, Oracle, SAP, and Apple was not due to monopolizing certain features, but on continually improving on each other’s innovations. In a 1991 memo, Bill Gates wrote

<blockquote>If people had understood how patents would be granted when most of today’s ideas were invented and had taken out patents, the industry would be at a complete standstill today…The solution is patenting as much as we can. A future startup with no patents of its own will be forced to pay whatever price the giants choose to impose. That price might be high. Established companies have an interest in excluding future competitors.<ref name="Gates_Challenges">Bill Gates. [http://web.archive.org/web/20010218085558/http://bralyn.net/etext/literature/bill.gates/challenges-strategy.txt "Challenges and Strategy"], May 16, 1991. Quote continues: "I feel certain that some large company will patent some obvious thing related to interface, object orientation, algorithm, application extension or other crucial technique. If we assume this company has no need of any of our patents then the have a 17-year right to take as much of our profits as they want. The solution to this is patent exchanges with large companies and patenting as much as we can.". Referenced 2011-10-13.</ref></blockquote>

Probably the best evidence that [[copyright]] and [[patents]] are not needed and that competition leads to thriving innovation in the software industry, is its thriving and innovative portion developing [[open source software]].

==References==
Note: much of this page was based on [http://oneminute.rationalmind.net/software-patents/ The One Minute Case Against Software Patents], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

{{Reflist}}

[[Category:Argumentation]]
[[Category:Intellectual property]]
{{DEFAULTSORT:Software patents, Argumentation}}

Hans-Hermann Hoppe

2013-10-31T08:41:53Z

John James: /* Bibliography */ added

'''Hans-Hermann Hoppe''' (b. 1949) is Professor Emeritus of Economics at the [[University of Nevada]], [[Las Vegas]] and Distinguished Fellow at the [[Mises Institute]].

==Bibliography==
{{see also|Bibliography of Hans-Hermann Hoppe}}

* ''[[Democracy: The God That Failed]]'' (2001)
* ''[[Economic Science and the Austrian Method]]'' (1995)
* ''[[The Economics and Ethics of Private Property]]'' (1993)
* ''[[A Theory of Socialism and Capitalism]]'' (1989)

==Links==
{{Contact faculty|hoppe@mises.com}}
* [http://www.HansHoppe.com HansHoppe.com]

* [http://mises.org/fellow.aspx?id=7 Hans-Hermann Hoppe] at [[Mises Institute|Mises.org]]
** [http://mises.org/media.aspx?action=author&ID=164 Media archive]
** [http://mises.org/literature.aspx?action=author&Id=164 Literature archive]
** [http://mises.org/articles.aspx?AuthorId=164 Daily Article archive]

* {{md|5372|Read Hoppe, Then Nothing Is the Same|[[Stephan Kinsella]]|June 2011}}
* {{mb|3111|Hoppe: yet another letter (Kinsella)|Stephan Kinsella|February 2005}}
* {{mb|9610|Revisiting Argumentation Ethics|Stephan Kinsella|March 2009}}
* [http://www.lewrockwell.com/rothbard/rothbard47.html "Hoppephobia"] by [[Murray Rothbard|Murray N. Rothbard]], March 1990

* Interviews
** [http://www.thedailybell.com/1936/Anthony-Wile-with-Dr-Hans-Hermann-Hoppe-on-the-Impracticality-of-One-World-Government-and-Western-style-Democracy.html The Impracticality of One-World Government and the Failure of Western-style Democracy] by Anthony Wile, March 2011 (republished [http://mises.org/daily/5163/The-Mind-of-HansHermann-Hoppe here], [http://www.lewrockwell.com/orig11/wile13.1.html here])

* {{wplink}}

{{DEFAULTSORT:Hoppe, Hans-Hermann}}
[[Category:Economists]]
[[Category:Philosophers]]

Great Depression

2013-10-26T13:58:05Z

John James: /* Links */

{{RightTOC}}
{{For|the book by Lionel Robbins|The Great Depression}}

The '''Great Depression''' was the longest and most severe economic depression ever experienced by the Western world.<ref name="Britannica_debt">Encyclopædia Britannica. [http://www.britannica.com/EBchecked/topic/243118/Great-Depression "Great Depression"], Encyclopædia Britannica Online, referenced 2010-06-12.</ref>

==Prelude==
In the forty years 1890 to 1930, the population of the United States doubled, the value of farm property increased three and a half times, pig iron production four and a half times, exports five times, coal production five times, and freight traffic five and a half times, but commercial bank deposits increased over seventeen and a half times. Thus, while the gold stock had increased proportionally with the increase of industrial production, the expansion in bank credit had far outstripped both and had thus been at the expense of a thinning gold reserve. The monetary gold stock available to support and redeem this tremendous amount of bank liabilities that was being created, which had been 25.3 per cent of total note and deposit liabilities of banks in 1865, and 23.9 per cent in 1880, steadily dropped under the pressure of the public upon the banking interest for more and more credit, standing in 1900 at 20.4 per cent, in 1910 at 14.2 per cent and in 1930 at 10.4 per cent. Such had been the diminution of reserves that by the decade 1920-1930, banking was being conducted "on a shoestring." In 1900 the ratio of vault cash to deposit liabilities of commercial banks had dropped to 14.8 per cent, and in 1910 to 12.7 per cent—vault cash in those years being respectively $706,302,000 and $1,366,164,000.<ref name="Groseclose_Money">Elgin Groseclose. [http://mises.org/resources/3138/Money-and-Man Money and Man], 1934, p.209-210. Referenced 2011-03-24.</ref>

From June 1914 to January 1920, when [[Demand deposits|demand deposits]] grew by 96.9 percent, [[Time deposits|time deposits]] rose by 126.1 percent. In the great boom of the 1920s, that started after the [[Depression of 1920–21|recession of 1920–21]] (a short recession, thanks to the budget cutting and lowering of taxes by [[Warren Harding]]<ref name="Woods_Harding">Thomas E. Woods, Jr. [http://www.firstprinciplesjournal.com/articles.aspx?article=1322&theme=home&loc=b "Warren Harding and the Forgotten Depression of 1920"], First Principles, Fall 2009 issue of The Intercollegiate Review. See also the [http://www.youtube.com/watch?v=czcUmnsprQI video]. Referenced 2009-10-11.</ref>), total demand deposits rose from 1921 to 1929 by 36.5 percent. Time deposits in banks expanded in the same period by 75.9 percent. The great boom of the 1920s (also called "[[Roaring Twenties]]") was largely fueled by credit expansion going into time deposits. The greatest expansion of time deposits came in Central Reserve Cities (New York and Chicago), where the [[Federal Reserve System|Fed]]’s open market operations were all conducted, as opposed to Reserve Cities and Country Banks. As acknowledged by Federal Reserve officials, time or savings deposits were then, for all practical purposes, equivalent to demand deposits and should be paid on demand in case of a run on a bank.

With the passage of the [[Federal Reserve Act]], [[Woodrow Wilson|President Wilson]] appointed [[Benjamin Strong, Jr.|Benjamin Strong]] to the most powerful post in the Federal Reserve System, Governor of the [[Reserve Bank of New York|Federal Reserve Bank of New York]]. He made quickly this position dominant in the System and decided on Fed policy without consulting or even against the wishes of the Federal Reserve Board in Washington. Strong was the dominant leader of the Fed from 1914 until his death in 1928. He pursued an inflationary policy, to finance the war effort for [[World War I|WWI]], connected to the interests of the [[J.P. Morgan & Co.|House of Morgan]]. Another motivation was the attempt to prop up the [[Bank of England]] in the 1920s, when it returned to the [[gold standard]] with an overvalued pound. To prevent the loss of gold to the States, its governor [[Montagu Norman, 1st Baron Norman|Montagu Norman]] secretly convinced Strong to inflate in order to help England. The expansion ended only after Strong's death and the '''Great Depression''' followed soon after. In 1928 Strong admitted that "very few people indeed realized that we were now paying the penalty for the decision which was reached early in 1924 to help the rest of the world back to a sound financial and monetary basis" - that is, to help Britain maintain a phony and inflationary form of gold standard.<ref name="Rothbard_Federal_Reserve">[[Murray N. Rothbard]]. [http://mises.org/books/mysteryofbanking.pdf "The Mystery of Banking"] (pdf), Chapter XVI: Central banking in the United States IV: The Federal Reserve System, p.235-246, referenced 2009-10-03.</ref>

The inflation was also motivated by a desire to help American exporters (particularly farmers), by stimulation of foreign lending. At the same time the U.S. turned to a sharp protectionist policy with the [[Fordney–McCumber Tariff]] of 1922. In the foreign lending boom, other countries were hampered in trying to sell their goods to the United States, but were encouraged to borrow dollars. The government did not have any peacetime authority to interfere with loans, but did so illegally. In 1921, President [[Warren G. Harding|Harding]] and his cabinet conferred with several American investment bankers, at the instigation of Secretary of Commerce [[Herbert Hoover|Hoover]], to be informed in advance of foreign loans, so that the government "might express itself regarding them". The bankers agreed. Hoover commented that even bad loans helped American exports and provided a cheap form of relief and employment. Later Hoover demanded from bankers, that foreign loans would be inspected by agents of the [[Department of Commerce]]. Both requests were mostly ignored. While admitted to be legally unenforceable, it was all in the name of "national interests".<ref name="Rothbard_pre_Depression">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 5. The Development of the Inflation, p. 137-167, referenced 2009-11-17.</ref>

{{See also|Federal Reserve System}}

===Housing bubble===
An outlet for the excessive credit created by the banking system was in financing an urban real estate boom in the U.S. During the decade 1920-1930, people were moving in a constant stream into the cities; the population of the sixty-three metropolitan zones (cities of 100,000 or more plus adjacent counties) rose from 46,491,000 to 59,118,000, or from 44 per cent of total population to 48 per cent. Seventy-four per cent of the increase in total population during the decade occurred in the metropolitan areas.

A huge building boom followed, the Federal Reserve Board index of building contracts awarded, 1923-1925 taken as 100, rising from 63 in 1920 to 122 in 1925, and 135 in 1928. This boom occurred chiefly in skyscraper offices and expensive apartment house developments, whose notes were more readily marketable, rather than in the modest single family accommodations. The result was that when the era had passed the slums still existed. In New York City, for instance, where at least four skyscrapers were built in these years with the only object, apparently, of surpassing the record for the world's tallest building, from a quarter to a third of the population, say 1,800,000 persons, still occupied houses that had been outlawed thirty-three years earlier by the Tenement House Act of 1901.<ref name="Groseclose_Money">Elgin Groseclose. [http://mises.org/resources/3138/Money-and-Man Money and Man], 1934, p.225, 244. Referenced 2011-03-24.</ref>

===Predictions===
{{See also|Austrian predictions#The Great Depression}}
The Great Depression was predicted by several Austrian economists:

* In Austria, economist [[Ludwig von Mises]] saw the problem developing in its early stages and predicted to his colleagues in 1924 that the large Austrian bank, [[Credit Anstalt]], would eventually crash. He wrote a full analysis of [[Irving Fisher|Irving Fisher’s]] monetary views, published in 1928, where he targeted Fisher’s reliance on price indexes as a key vulnerability that would bring about the Great Depression, concluding: "because of the imperfection of the index number, these calculations would necessarily lead in time to errors of very considerable proportions."<ref name="Mises_Causes">Ludwig von Mises. [http://mises.org/resources/3361 "The Causes of the Economic Crisis, and Other Essays Before and After the Great Depression"], collection of works reposted from 1923 and 1928. Referenced 2011-01-12.</ref>
* [[F. A. Hayek]] published several articles in early 1929 in which he predicted the collapse of the American boom. [[Felix Somary]], who like Mises was a student at the University of Vienna, issued several dire warnings in the late 1920s.
* In America economists [[Benjamin Anderson]] and [[E.C. Harwood]] also warned that the Federal Reserve policies would cause a crisis, and like Somary, they were largely ignored.<ref name="Thornton_Mises">Mark Thornton. [http://mises.org/journals/scholar/Thornton16.pdf "Mises vs. Fisher on Money, Method, and Prediction: The Case of the Great Depression"] (pdf), p.13-15; December 2006. Referenced 2011-12-13.</ref> Albert H. Wiggin summed up in 1931 that the "depression has been prolonged and not alleviated by delay in making necessary readjustments."<ref name="Rothbard_Wiggin">Murray N. Rothbard. [[America's Great Depression]], Chapter 9, referenced 2011-01-11.</ref>

==The Crash==
{{Main|Wall Street Crash of 1929}}
The great boom of the 1920s began around July, 1921, after a year or more of sharp recession, and ended about July, 1929, when the production and business activity began to decline, although the [[Wall Street Crash of 1929|famous stock market crash]] came in October of that year. [[Herbert Hoover]], an avid proponent of interventionism became President. Characteristic for him were "voluntary" measures that the government desired, with the implicit threat that if business did not "volunteer" properly, compulsory controls would soon follow.<ref name="Rothbard_1920s_boom">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 5. The Development of Hoover's Interventionism: Unemployment, p. 188-189, referenced 2009-11-20.</ref>

After the stock-market crash, Hoover began a series of conferences with big business and labor leaders, telling them that cutting wage rates (the standard response in previous depressions) would be disastrous, because then the workers wouldn't make enough to buy the products.<ref name="Hoover 11-15-29 NC">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22005.</ref> This "liquidation" of labor would only deepen the depression by reducing their "purchasing power". Leading industrialists pledged to maintain wage rates, expand construction, and share any reduced work,<ref name="Hoover CC remarks">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22023.</ref><ref name="Telegraph-Herald 11-21-29">[http://news.google.com/newspapers?id=T51FAAAAIBAJ&sjid=C70MAAAAIBAJ&dq=hoover%20wage&pg=6813%2C5825398 "Credit President With Pledge to Keep Wages Up"], ''The Telegraph-Herald and Times-Journal,'' November 21, 1929.</ref><ref name="Sarasota Herald-Tribune 11-22-29">[http://news.google.com/newspapers?id=LYQcAAAAIBAJ&sjid=MmQEAAAAIBAJ&dq=hoover%20wages%20business&pg=6694%2C4315629 "Agree To Keep Wage Level Up"], ''Sarasota Herald-Tribune,'' November 22, 1929.</ref><ref name="Gettysburg Times 11-22-29">[http://news.google.com/newspapers?id=DdElAAAAIBAJ&sjid=1PkFAAAAIBAJ&dq=hoover%20wage&pg=2000%2C1635972 "Conferences Please Hoover"], ''The Gettysburg Times,'' November 22, 1929.</ref><ref name="Lewiston Evening Journal 11-23-29">[http://news.google.com/newspapers?id=Iq01AAAAIBAJ&sjid=uWcFAAAAIBAJ&dq=hoover%20wage&pg=1270%2C4673686 "No Hard Times, Hoover Assures Wage Earners"], ''Lewiston Evening Journal,'' November 23, 1929.</ref><ref name="Tuscaloosa News 11-25-29">[http://news.google.com/newspapers?id=xYA-AAAAIBAJ&sjid=BkwMAAAAIBAJ&dq=hoover%20wage&pg=6182%2C3112525 "All Citizenry Asked To Help Progress Plan"], ''The Tuscaloosa News,'' November 25, 1929.</ref><ref name="Miami News 11-26-29">[http://news.google.com/newspapers?id=o7cuAAAAIBAJ&sjid=6tcFAAAAIBAJ&dq=hoover%20wage&pg=6639%2C4846533 "Hoover's Plan To Help Trade Gets Approval"], ''The Miami News,'' November 26, 1929.</ref> to fulfill Hoover's request that "the first shock must fall on profits and not on wages".<ref name="hoover44">Herbert Hoover, ''The Memoirs of Herbert Hoover: The great depression, 1929-41'', (New York: Macmillan, 1952) 44-45.</ref>

At the same time, the Federal Reserve expanded rapidly and lowered its interest rates. Its member banks expanded their deposits in the last week of October 1929 alone by 10%, mostly in New York. Hoover praised the Fed for the saving of shaky banks and restoring confidence.<ref name ="Hoover CC remarks" /> The depression should be over in a few months. A large public works program was also initiated.<ref name="Rothbard_public_works">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 8. The Depression Begins: President Hoover Takes Command, p. 209-217, referenced 2009-11-21.</ref><ref name="Hoover 1-3-20">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22468.</ref>

Hoover promised the farm bloc to support farm cooperatives and prices and established the [[Federal Farm Board]] (FFB). It would make all-purpose loans to farm cooperatives at low interest rates and establish "stabilization corporations" to control farm surpluses and bolster farm prices. Its board was dominated by representatives of these farm cooperatives. To combat falling prices, it made loans to farmers to keep wheat and cotton off the market and later started to buy the surpluses. For a while, prices were held up and farmers increased production, only to find that prices would fall even more. As America held wheat off the market, it lost its former share of the world’s wheat trade. The farmers were urged to decrease their acreage, while the government still promoted reclamation projects to increase farm production. The surpluses of wheat accumulated and prices fell to such a degree, that the FFB decided to dump wheat stocks abroad, resulting in a drastic fall in market prices. The attempts to keep up the price of cotton, wool, livestock, etc. failed as well. A "[[Farmers' Holiday Association|Farm Holiday]]" was declared to stop production, The movement soon turned to violence and failed to stop the falling farm prices. but succeeded to avoid some foreclosures of its members.<ref name="Rothbard_Agriculture">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), The New Deal Farm Program, p. 217-237, referenced 2009-11-21.</ref>

In 1930, the [[Smoot–Hawley Tariff Act|Smoot–Hawley Tariff]] was passed, despite objections of many economists and industrial leaders. Hoover originated a higher tariff on agricultural products to help farmers, but it was raised on many other products. Many other countries have retaliated with their own tariffs and foreign trade declined significantly. (From 1929 to 1932, U.S. imports from Europe decreased from $1,334 million to just $390 million, while U.S. exports to Europe decreased from $2,341 million to $784 million. Overall, world trade decreased by some 66% between 1929 and 1934.<ref>U.S. Department of State. [http://future.state.gov/when/timeline/1921_timeline/smoot_tariff.html Smoot-Hawley Tariff], referenced 2009-11-22.</ref>) Also, to relieve the unemployment problem, and to help keep wage rates up, the President effectively banned further immigration into the United States.<ref name="Rothbard_Depression_1930">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 9. 1930, p. 239-256, referenced 2009-11-22.</ref>

===In Europe===
In Europe, the crisis began in earnest with the ''Boden–Kredit Anstalt'', the most important bank in Austria and Eastern Europe. It had to merge with the [[Creditanstalt|Oesterreichische–Kredit–Anstalt]] after rescue attempts by its government and other banks. When Austria declared a customs union with Germany in March 1931, the French government feared this development and several French banks suddenly insisted on redemption of their debts from both countries. The bank collapsed. After more rescue attempts the Austrian Government voted a $150 million guarantee to the bank, but by this time was its credit worthless, and Austria soon declared national bankruptcy by going off the gold standard. Later, Germany, England, and most other European countries renounced their obligations and went off the gold standard as well. While the impact on United States was not very large due to the lowered international trade, it certainly did not help, neither did the many loans granted to prop up foreign banks.<ref name="Rothbard_Depression_1931_Europe">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 10. 1931—"The Tragic Year", p. 257-284, referenced 2009-11-27.</ref>

==1931, "The Tragic Year"==
The crisis worsened in the US in 1931. Production continued to fall drastically, as did prices and foreign trade, and unemployment ran up to almost 16 percent of the labor force. The Federal Reserve Board (FRB) index of manufacturing production, which had been 110 in 1929 and 90 in 1930, fell to 75 in 1931. Hardest hit, in accordance with Austrian [[ABCT|cycle theory]], were producers’ goods and higher order [[capital]] goods industries, rather than the consumer goods’ industries. Despite attempts to inflate, bank deposits and the aggregate [[money supply]] fell sharply, particularly at the end of the year. The British abandoning of the gold standard, bank failures abroad and the growing number of failures at home, caused a growing loss of confidence by Americans in their banking system. The wages were also beginning to fall, first secretly, then openly by the end of 1931.<ref name="Time 4-13-31p">"[http://www.time.com/time/magazine/article/0,9171,752764,00.html "THE PRESIDENCY: The Pledge"], ''TIME,'' April 13, 1931.</ref><ref name="Time 4-13-31i">[http://www.time.com/time/magazine/article/0,9171,752766,00.html "INDUSTRY: Next: Wages?"], ''TIME,'' April 13, 1931.</ref><ref name="Time 8-10-31">[http://www.time.com/time/magazine/article/0,9171,882003,00.html "LABOR: When Winter Comes"], ''TIME,'' August 10, 1931.</ref><ref name'"Time 10-5-31">[http://www.time.com/time/magazine/article/0,9171,753027-2,00.html "LABOR: Deflated"], ''TIME,'' October 5, 1931.</ref><ref name="Time 11-09-31">[http://www.time.com/time/magazine/article/0,9171,742546,00.html "LABOR: Rail Dickers"], ''TIME,'' November 9, 1931.</ref>

The gross national product fell from $91.1 billion in 1930, to $76.3 billion in 1931. Total government receipts fell from $13.5 billion to $12.4 billion, but total government expenditures rose from $13.9 billion to $15.2 billion, in federal, rather than state and local, spending (federal expenditures rose from $4.2 billion in 1930 to $5.5 billion in 1931). In the middle of a great depression when people needed to be relieved of governmental burdens, the dead weight of government rose from 16.4 percent to 21.5 percent of the gross private product. From a modest surplus in 1930, the Federal government so ran up a huge $2.2 billion deficit in 1931.<ref name="Rothbard_Depression_1931_Europe" />

Direct relief was just about the one sphere where President Hoover seemed to prefer voluntary to governmental action. The [[Red Cross]] opposed a bill, in early 1931, that would grant it $25 million for relief, declaring that it would "to a large extent destroy voluntary giving". Many private charity organizations, philanthropists, and social workers had the same views. Governmental unemployment relief was seen to have a role in creating and perpetuating unemployment in Britain (the "dole"). It was attacked by many business leaders, including [[Henry Ford]], the leaders of the [[National Association of Manufacturers]] and the [[United States Chamber of Commerce|Chamber of Commerce]], and former President [[Calvin Coolidge|Coolidge]].<ref name="Rothbard_Depression_1931_Europe" />

The [[Davis-Bacon Act]] was signed by President Hoover in 1931. It mandated that prevailing (union) wages be paid by the Federal Government for public works projects. It has been argued that the Davis-Bacon Act was a [[Jim Crow law]], since its intent <ref name=”williams”>Walter Williams, [http://www.jewishworldreview.com/cols/williams031203.asp "Congress' insidious discrimination"], ''Jewish World Review'' (March 12, 2003), accessed 2011-02-01.</ref> and its effect <ref name=”cato”> David Bernstein, [http://www.cato.org/pubs/briefs/bp-017.html "The Davis-Bacon Act: Let's Bring Jim Crow to an End"], ''Cato Institute Briefing Papers'' (January 18, 1993), accessed 2011-02-01.</ref> was to prevent lower-paid, non-unionized black laborers from competing against higher-paid, unionized white laborers. Hoover promoted and supported the legislation, as he believed that "[t]he very essence of great production is high wages...because it depends upon a widening range of consumption only to be obtained from the purchasing power of high real wages...." <ref name="hoover108">Herbert Hoover, ''The Memoirs of Herbert Hoover: Volume 2, The Cabinet and the Presidency, 1920-33'', (New York: Macmillan, 1952) 108.</ref>

==1932, The Hoover New Deal==
In an atmosphere of crisis, President Hoover called for more drastic measures, including more government aid and loans. With a $2 billion deficit during annual year 1931, Hoover felt that he had to do something to combat it and chose to increase the taxes. The [[Revenue Act of 1932]] was one of the greatest increases in taxation ever enacted in the United States in peacetime. Many wartime
excise taxes were revived, sales taxes were imposed on gasoline, tires, autos, electric energy, malt, toiletries, furs, jewelry, and other articles; admission and stock transfer taxes were increased; new taxes were levied on bank checks, bond transfers, telephone, telegraph, and [[radio]] messages; and the personal income tax was raised drastically as follows: the normal rate was increased from a range of 1½ percent–5 percent, to 4 percent–8 percent; personal exemptions were sharply reduced, and an earned credit of 25 percent eliminated; and surtaxes were raised enormously, from a maximum of 25 percent to 63 percent on the highest incomes. Furthermore, the corporate income tax was increased from 12 percent to 13: percent, and an exemption for small corporations eliminated; the estate tax was doubled, and the exemption floor halved; and the gift tax, which had been eliminated, was restored, and graduated up to 33⅓ percent. The postal rates were raised as well.

Despite the drastic increase in tax rates, total Federal revenue for 1932 declined because of the deepened depression—itself partly caused by the increase in tax rates. Total Federal receipts, excluding government enterprises, declined from $2.2 billion in 1931 to $1.9 billion in 1932; including government enterprises, Federal receipts fell from $3.4 billion to $3 billion.

Total government receipts fell from $12.4 billion to $11.5 billion. As a result, the huge Federal deficit continued despite a drop in government expenditures in 1932: Federal expenditures falling from $5.5 billion to $4.4 billion, and aggregate government expenditures falling from $15.2 billion to $13.2 billion (all numbers including government enterprises). Of the $1.7 billion in total government deficit, the bulk of it — $1.4 billion — was in the Federal government account. The state and local governments were forced to cut back their expenditures to near the level of their dwindling receipts. One of the most ominous projects for Federal spending during 1932 was a Congressional move for a huge $2 billion veterans bonus, to be financed by an issue of new currency. It was its final defeat in the Senate in June that did most to defeat a general clamor for much larger government spending.

Meanwhile, however, President Hoover himself was beginning to have doubts about one of his favorite policies: public works. In a conference at the end of February, Hoover admitted that his public works program, which had nearly doubled Federal construction since the start of the depression, had failed. It was very expensive, costing over $1200 per family aided, it was unavailable to the needy in remote regions and to those who were unable to perform such labor, which was, after all, unskilled make-work. By May, Hoover had openly reversed his earlier position. As a result, Federal public works only increased by $60 million in 1932, to reach the $333 million mark. Public works was not to come really to the fore again until the Roosevelt administration.

Holding firm to his interventionist belief that the downward pressure on wages must be resisted <ref name ="hoover108" />, Hoover signed the [[Norris-Laguardia Act]] into law on March 23, 1932. It banned "yellow-dog" contracts, removed federal courts’ authority to issue injunctions against labor disputes, and provided greater ease for workers to organize<ref name="enotes">[http://www.enotes.com/major-acts-congress/norris-laguardia-act "Norris-Laguardia Act (1932): Major Acts of Congress"], accessed 2011-02-01.</ref><ref name="Time 3-21-32">[http://www.time.com/time/magazine/article/0,9171,743381,00.html "LABOR: Yellow Dog's End"], ''TIME,'' March 21, 1932.</ref>; a landmark victory for organized labor.

If Hoover eagerly embraced other forms of [[intervention]], he gave ground but grudgingly on one issue where he had championed the voluntary approach: direct relief. Governor [[Franklin D. Roosevelt]] of New York led the way for state relief programs in the winter of 1931–1932, and he induced New York to establish the first state relief authority: the Temporary Emergency Relief Administration, equipped with $25 million. Other states followed this lead, and a bill was introduced for a $500 million federal relief program. The bill was defeated, but, with depression deepening and a Presidential election approaching, the administration all but surrendered, passing the [[Emergency Relief and Construction Act]] of July, 1932 — the nation’s first Federal relief legislation. All in all, total public relief in 120 of the nation’s leading urban areas amounted to $33 million in 1929, $173 million in 1931, and $308 million in 1932.

One thing Hoover was not reticent about: inflation. The administration first cleared the path for the program by passing the [[Glass–Steagall Act]] in February, which (a) greatly broadened the assets eligible for rediscounts with the Fed, and (b) permitted the Federal Reserve to use government bonds as collateral for its notes, in addition to commercial paper. At the end of February, 1932, total bank reserves had fallen to $1.85 billion. At that point, the [[Federal Reserve System|FRS]] launched a gigantic program of purchasing U.S. government securities. By the end of 1932, total reserves had been raised to $2.51 billion. This enormous increase of $660 million in reserves in less than a year is unprecedented in the previous history of the System. If the banks had kept loaned-up, the money supply of the nation would have increased by approximately $8 billion. Instead, the money supply fell by $3.5 billion during 1932, from $68.25 to $64.72 billion at the end of the year, and with the bank deposit component falling by $3.2 billion. Until the second quarter of 1932, the nation’s banks had always remained loaned up, with only negligible excess reserves. After, the banks accumulated excess reserves, and it is estimated that the proportion of excess to total bank reserves rose from 2.4 percent in the first quarter of 1932, to 10.7 percent in the second quarter. By the fourth quarter of 1932, excess reserves were estimated to a double of 20.3 percent of total bank reserves.

During the 1920s, a typical year might find 700 banks failing, with deposits totaling $170 million. In 1930, 1350 banks failed, with deposits of $837 million; in 1931, 2,293 banks collapsed, with deposits of $1,690 million; and in 1932, 1,453 banks failed, having $706 million in deposits. This enormous increase in bank failures was enough to give any bank pause—particularly when the bankers knew in their hearts that no bank (outside of the nonexisting ideal 100 percent bank) can ever withstand a determined run. Consequently, the banks permitted their commercial loans to run down without increasing their investments. Inflation by the government was turned into deflation by the policies of the public and the banks. The American economy reached the depths of depression during 1932 and 1933, and yet it had begun to turn upward by mid-1932. It is not far-fetched to believe that the considerable deflation of July 1931–July 1932, totaling $7.5 billion of currency and deposits, or 14 percent, was partly responsible for the mid-summer upturn.<ref name="Rothbard_Depression_1932">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 11. The Hoover New Deal of 1932, p. 285-320, referenced 2009-11-27.</ref>

As the Depression got worse and people lost their confidence in the banks, they decided to take custody of their cash. Seeing people in large numbers pulling their money out of banks — money the banks had promised to provide on demand — President Hoover blasted them for their "traitorous [[hoarding]]." He organized an antihoarding drive and delivered a radio address ([http://www.bobsuniverse.com/BWAH/31-Hoover/19320306a.pdf transcript], pdf) in which he pleaded with the public to stop hoarding (i.e., to stop converting their bank deposits into cash).<ref name="Smith_hoarding">George F. Smith. [http://mises.org/story/3707 "The Virtue of Hoarding"], Mises Daily, posted on October 09, 2009, referenced 2009-11-18.</ref>

The reaction to this growing insistence of the people on claiming their rightful, legally-owned property, was a series of vigorous attacks on property right by state after state. One by one, states imposed "[[bank holiday]]s", thus permitting the banks to stay in business while refusing to pay virtually all of the just claims of their depositors (a pattern that had become almost traditional in America since the [[Panic of 1819]]).<ref name="Rothbard_Depression_holidays">[[Murray N. Rothbard]]. "[[America’s Great Depression]]" ([http://mises.org/rothbard/agd.pdf pdf]), 11. The Hoover New Deal of 1932, p. 325-326, referenced 2013-04-12.</ref>

Nominal paychecks fell much more slowly during the early years of the Great Depression than the general [[price]] level (wholesale prices fell by 10 percent in 1930, by 15 percent in 1931)<ref name="Rothbard_Depression_1931_Europe" /> - and those who kept their job experienced a higher increase in real (inflation-adjusted) wages, than during the Roaring 1920s!<ref name="ohanian"> Lee E. Ohanian, "What - or Who - Started the Great Depression?", ''NBER Working Paper No. 15258'' (August 2009). Free copy online [http://www.econ.ucla.edu/people/papers/Ohanian/Ohanian499.pdf here]</ref> And so has unemployment reached record highs during Hoover's first and only term. When FDR went back on the US government's promise to redeem dollars for gold, the Federal Reserve could flood the economy with new dollars, the prices began to rise again. Because wage rates were not allowed to fall to their new, market-clearing level, [[Inflation|inflating]] the currency has paradoxically reduced unemployment.<ref name="Murphy_Depression">Robert P. Murphy. [http://mises.org/story/3778 "The Gold Standard and the Great Depression"], Mises Daily, posted on October 30, 2009, referenced 2009-11-18.</ref>

The Fed has expanded bank reserves in the 1930s. Panicking at the inflationary potential, it doubled the minimum reserve requirements to 20 percent in 1938, sending the economy into a tailspin of credit liquidation. The Fed, ever since that period, has been very cautious about the degree of its changes and changed bank reserve requirements fairly often, but in very small steps, by fractions of one percent.<ref name="Rothbard_Fed_requirements">[[Murray N. Rothbard]]. [http://mises.org/books/fed.pdf "The Case Against the Fed"] (pdf), How the Fed Rules and Inflates, p. 144, referenced 2010-03-23.</ref>

After 1933, Federal Reserve Notes and deposits were no longer redeemable in gold coins to Americans, their gold was confiscated and exchanged for Federal Reserve Notes, which became legal tender; and Americans were stuck in a regime of fiat paper issued by the government and the Federal Reserve.<ref name="Rothbard_Fed_gold">[[Murray N. Rothbard]]. [http://mises.org/books/fed.pdf "The Case Against the Fed"] (pdf), The New Deal and the Displacement of the Morgans, p. 131-132, referenced 2010-05-10.</ref>

===Tax revolt in the USA===
There has been a widespread opposition to real estate taxes in cities across America and some Americans were in fact not paying their taxes. The movement declined quickly, some scholars acknowledge certain influence, but ultimately declare it a failure.<ref name="Beito_revolt">David T. Beito. [http://mises.org/books/taxpayersinrevolt.pdf Taxpayers in Revolt - Tax Resistance during the Great Depression] (pdf), referenced 2010-06-15.</ref> Others consider it a resounding success, however.

President Hoover's massive tax increase bill that passed into law as the [[Revenue Act of 1932]], with many new taxes. The most burdensome taxes for many Americans, however, was the property tax. Property taxes required taxpayers to make an explicit tax payment of significant size from which they could not evade without losing what was often their most significant piece of property and wealth. The property taxes have risen in the decade before the Depression; throughout the 1920s, the general property tax accounted for over 90 percent of taxes levied by all cities over 30,000 in population. One reason for this dependence was that alcohol revenue from sales taxes and licenses had "dried up" due to prohibition. The burden of taxes increased significantly, even if tax rates remained the same. Another source of taxpayer ire was that the real wages of public employees rose nearly 12% between 1929 and 1933.

Tax delinquency increased from its normal rate of 10% to more than 30%. Tax protest organization formed quickly and spontaneously in rural regions in response to tax authorities selling the land of farmers. Estimates placed the number of taxpayer organizations at between 3,000 and 4,000 organizations nationwide.

The tax limitation movement was effective in several states in establishing cuts and limitations on property tax rates. The second success, which was both more important and far less obvious, was the passage of the 21st Amendment that repealed alcohol [[Prohibition in the United States|prohibition]]. The legalization of alcohol sales in most states provided federal, state, and local government with increased tax revenues to offset cuts in property taxes while simultaneously providing a drastic decrease in the price of alcohol and in effect granting the American public a type of tax cut. Income tax revenue fell 60% from 1930 to 1933 placing a severe financial constraint on Congress. The search for an alternative revenue source led to the conversion of F.D.R. from a "dry" to a "wet" and resulted in the 1932 Democratic party platform to call for Repeal in order to provide "a proper and needed revenue." Revenue shortfalls made Repeal possible and the alcohol tax provided 13% of all federal revenue by 1936.<ref name="Thornton_revolt">Mark Thornton and Chetley Weise. [http://mises.org/journals/jls/15_3/15_3_4.pdf The Great Depression Tax Revolts Revisited.] (pdf), Journal of Libertarian Studies, Volume 15, no. 3 (Summer 2001), referenced 2010-06-15.</ref><ref name="Thornton_success_revolt">Mark Thornton and Chetley Weise. [http://mises.org/journals/scholar/Thornton1.PDF The Success of the Great Depression Tax Revolts] (pdf), referenced 2010-06-15.</ref>

==1933, end of Hoover's term==
Seeking reelection, Hoover boasted of his many interventions with the economy. In his acceptance speech for the Presidential renomination he said:
<blockquote>''"We might have done nothing. That would have been utter ruin. Instead, we met the situation with proposals to private business and to the Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put that program in action."''<ref name="Hoover_nomination">Herbert Hoover. [http://americanhistory.about.com/library/docs/blhooverspeech1932.htm "Address Accepting the Republican Presidential Nomination"], August 11, 1932. The address was carried over the National Broadcasting Company and the Columbia Broadcasting System radio networks. This is a transcript taken from a sound recording of the address. Referenced 2010-06-20.</ref></blockquote>

After the election of [[Franklin D. Roosevelt|Roosevelt]], as the new Presidential term approached, dark rumors circulated about the radicalism of Roosevelt’s advisers, and of their willingness to go off the [[gold standard]]. Consequently, not only did gold "hoarding" by foreigners develop momentum, but even gold hoarding by domestic citizens. For the first time in the depression, American citizens were beginning to lose confidence in the dollar itself. The loss of confidence reached its apogee in February, 1933, the month before the Roosevelt inaugural. In that one month, the monetary gold stock fell by $173 million, and money in circulation increased by the phenomenal amount of $900 million, the reflection of domestic loss of confidence. Money in circulation totaled $5.4 billion at the end of January, and $6.3 billion by the end of February. $700 million of this increase was in Federal Reserve notes, and $140 million in gold coin and gold certificates.

The Federal Reserve did its best to combat this deflationary pull on bank reserves, but its inflationary measures only served to diminish confidence in the dollar still further. Total money supply fell from $64.72 to $61.61 billion over 1933, and all or more of this fall took place in the first half of the year. Bank failures skyrocketed during this period. The number of commercial bank failures increased from 1,453 in 1932 to 4,000 in 1933 (most of which took place in the first quarter).

The reaction to this growing insistence of the people on claiming their rightful, legally-owned property, was a series of attacks on property rights by state after state. One by one, states imposed "bank holidays" by fiat, permitting the banks to stay in business while refusing to pay virtually all of the just claims of their depositors. The bank holiday movement began in earnest with the proclamation of an eight-day holiday on February 14, 1933, by Governor William Comstock of Michigan. This precipitated the bank runs and deflation of the latter part of February and depositors began an intense scramble to take their money out of the banks. Many national banks, which had worked hard to keep themselves in an at least relatively sound position, did not want to use the special privilege of bank holiday, and had to be coerced into doing so.

By March 4, every state in the Union had declared a bank holiday, and the stage was set for President Roosevelt’s dramatic and illegal closing of all the banks. President Roosevelt closed down all the banks throughout the nation for an entire week, from March 6 to 13, with many banks remaining closed even longer. Restrictions against so-called "hoarding" were continued afterward, and much hoarded gold returned to the banks following a Federal Reserve threat to publish a list, for full public scorn, of the leading "gold hoarders."

Mr. Hoover left office in March, 1933, at the very depth of the greatest depression in American history. Production had fallen by more than one-half: industrial production had been at an index of 114 in August, 1929, and then fell to 54 by March, 1933. Unemployment was persisting at nearly 25 percent of the labor force, and gross national product had also fallen almost in half. Hardest hit was investment, especially business construction, the latter falling from about $8.7 billion in 1929 to $1.4 billion in 1933. The index of non-durable manufacturing production fell from 94 to 66 from August, 1929, to March, 1933—a decline of 30 percent; the index of durable manufactures fell from 140 to 32, in the same period, a decline of 77 percent. In durable goods industries (e.g., building, roads, metals, iron and steel, lumber, railroad, etc.) it was estimated that their total employment fell from 10 million in 1929 to 4 million in 1932–1933, while employment in consumer goods industries (e.g., food, farming, textiles, electricity, fuel, etc.) only fell from 15 million to 13 million in the same period. Stock prices (industrials) fell by 76 percent during the depression, wholesale prices fell by 30 percent, and the total money supply declined by one-sixth.

Wage rates were kept very high during the first two years of the depression. By 1932, however, with profits wiped out, the pressure became too great, and wage rates fell considerably. Total fall over the 1929–1933 period, however, was only 23 percent - less than the decline in wholesale prices. Therefore, real wage rates, for the workers still remaining employed, actually increased. While real average hourly earnings rose, actual hours worked in industry fell drastically during the depression. Weekly hours averaged over 48 in 1929, and fell to less than 32 by mid-1932. In no previous depression had hours worked fallen by more than 10 percent. This was a form of reduced employment caused by the high-wage policy. As a result, average weekly earnings fell by over 40 percent during the depression, and real weekly earnings fell by over 30 percent. But hardest hit were the unemployed, the percentage of whom rose to 25 percent by 1932–1933, and reached 47 percent in selected manufacturing industries. The fall in man-hours combined with the fall in average hourly earnings caused a truly precipitate drop in total factory payrolls - the base of the very "purchasing power" that the policy was supposed to sustain.<ref name="Rothbard_Hoover_End">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 12. The Close of the Hoover Term, p. 321-337, referenced 2010-06-20.</ref>

==The New Deal==
{{Main|New Deal}}
===Roosevelt's Campaign===
Under the Democratic platform of 1932, which Franklin D. Roosevelt endorsed, contained several subsidies and regulations, but it hardly embraced the enormous expansion in federal power that FDR would achieve. The very first plank called for "an immediate and drastic reduction of governmental expenditures by abolishing useless commissions and offices, consolidating departments and bureaus, and eliminating extravagance to accomplish a saving of not less than twenty-five per cent in the cost of the Federal Government."<ref name="Woolley_Dem_1932">John T. Woolley and Gerhard Peters. [http://www.presidency.ucsb.edu/ws/index.php?pid=29595 "Democratic Party Platform of 1932"], June 27, 1932, from The American Presidency Project [online]. Referenced 2010-06-20.</ref> Subsequent planks demanded a balanced budget, a low tariff, the repeal of Prohibition, "a sound currency to be preserved at all hazards," "no interference in the internal affairs of other nations," and "the removal of government from all fields of private enterprise except where necessary to develop public works and natural resources in the common interest." The document concluded with a quote from Andrew Jackson: "equal rights to all; special privilege to none."

FDR's campaign reflected that platform. He accused Herbert Hoover of "reckless and extravagant spending," and he further denounced the Republican incumbent for believing "we ought to center control of everything in Washington as rapidly as possible." Even when he called for interventions in the economy, he generally couched his words in the old liberals' language of equal treatment rather than the new liberals' vision of enlightened central planning. In his famous Forgotten Man speech of April 1932 (see [http://newdeal.feri.org/speeches/1932c.htm transcript]), the Democratic candidate pointed to the wave of foreclosures sweeping the nation. Noting that Hoover had created a "two billion dollar fund...put at the disposal of the big banks, the railroads and the corporations of the Nation," FDR averred that the government should "provide at least as much assistance to the little fellow as it is now giving to the large banks and corporations." Once in office, the new administration did indeed repeal Prohibition, and it eventually lowered some trade barriers as well. By the time of FDR's death, the federal bureaucracy's power had grown so enormously that Hoover was widely remembered as the last apostle of laissez faire.<ref name="Walker_FDR">Jesse Walker. [http://reason.com/archives/2008/04/10/the-new-franklin-roosevelts "The New Franklin Roosevelts"], April 10, 2008. Referenced 2010-06-20.</ref>

Roosevelt both promised to abolish the disastrous policy of alcohol [[prohibition]] (which was probably as important as anything else in securing his election), and thundered against Hoover’s overspending:<ref name="Palmer_Welfare">Tom G. Palmer. [http://studentsforliberty.org/wp-content/uploads/2012/04/After-the-Welfare-State-PDF1.pdf "After the Welfare State"] (pdf). "Bismarck's Legacy", p. 41. Referenced 2013-01-15.</ref>
{{cquote|I accuse the present Administration of being the greatest spending Administration in peace times in all our history. It is an administration that has piled bureau on bureau, commission on commission, and has failed to anticipate the dire needs and the reduced earning power of the people. Bureaus and bureaucrats, commissions and commissioners have been retained at the expense of the taxpayer.

Now, I read in the past few days in the newspapers that the President is at work on a plan to consolidate and simplify the Federal bureaucracy. My friends, four long years ago, in the campaign of 1928, he, as a candidate, proposed to do this same thing. And today, once more a candidate, he is still proposing, and I leave you to draw your own inferences.

And on my part I ask you very simply to assign to me the task of reducing the annual operating expenses of your national Government.<ref name="Roosevelt_Agriculture">Franklin D. Roosevelt. [http://www.presidency.ucsb.edu/ws/index.php?pid=88392 "140 - Campaign Address on Agriculture and Tariffs at Sioux City, Iowa", September 29, 1932. Referenced 2013-01-15.</ref>}}

===Policy===
A principal feature of '''[[New Deal]]''' economic policy was government-sponsored industrial [[cartel]]s (the [[National Recovery Act]]); agricultural cartels (the [[Agricultural Adjustment Act]]); and labor cartels (the [[Norris – La Guardia Act|Norris-LaGuardia]] and [[National Labor Relations Act|Wagner Acts]]). The purpose of any cartel is to restrict output and raise prices. Lower levels of production leads to higher unemployment, which is exactly what the NRA and AAA did.

The NRA was almost identical to the Italian corporatist system that existed at the time. In Italy each trade or industrial group was organized into a government-controlled "corporative" association that had the power to plan production and pricing. In the U.S. the NRA organized each industry into federally-supervised trade associations called "Code Authorities" which could also limit output and set prices. The antitrust laws were explicitly set aside.

Over 700 industrial codes were created and were rigorously enforced by thousands of government code enforcers who, "could enter a man's factory, send him out, line up his employees, subject them to minute interrogation, take over his books on the instant." A hapless New Jersey tailor named Jack Magid became nationally famous after he was arrested, convicted, and imprisoned by the code police for the "crime" of pressing a suit of clothes for 35 cents when the Tailors' Code fixed the price at 40 cents. The NRA was ruled unconstitutional by the U.S. Supreme Court on May 27, 1935.<ref name="DiLorenzo_New_Deal">Thomas J. DiLorenzo. [http://mises.org/daily/55 "A New, New Deal"], Mises Daily, October 1998, referenced 2010-06-20.</ref> A study of the Act noted that "the licensing provision, giving the president the power of life or death over business enterprises, is the ultimate weapon of enforcement and the capstone of the powers granted to the president ... the most extraordinary extension of presidential power in American history." The Supreme Court's decision has noted, that 'fair competition' is not defined in the law and could be a convenient designation for whatever set of laws that is proposed and the president may approve. It ruled that NIRA was "an unconstitutional delegation of legislative power."

But after [[Judiciary Reorganization Bill of 1937|Roosevelt's court-packing threat]] of 1937, the justices succumbed to whatever creative definition of fairness that Congress or federal agencies chose to proclaim. For instance, in 1942, Congress passed the Emergency Price Control Act, which created an Office of Price Administration. The OPA had sweeping power to set or strike down prices in any industry or activity that it considered to be "defense-related" — a vague term that could have encompassed practically the entire national economy. The act contained no substantive guidelines for the administrator's decisions but merely required prices that "in his judgment will be generally fair and equitable."<ref name="Bovard_Cuttthroat">James Bovard. [http://www.fff.org/freedom/0499d.asp "Cutthroat Competition and Dead Chickens"], The Future of Freedom Foundation, April 1999. Referenced 2010-06-20.</ref>

===Effects===
The Roosevelt administration also orchestrated various price-fixing schemes in labor markets, principally for the benefit of unions. Payroll taxes to finance Social Security and Unemployment Insurance programs increased employers' wage bills even further, which also reduced the level of employment. According to an econometric estimate, government-mandated payroll cost increases added nearly 1.2 million people to the unemployment rolls by 1938.

The unemployment rate during the 1933-1940 period averaged about 18% and was as high as 28.3% in March of 1933. By the end of 1938, on the eve of World War II, the U.S. unemployment rate still hovered at just over 18 percent and was higher than it was in 1933, President Franklin D. Roosevelt's first year in office. This occurred despite (or rather, because of) six years of unprecedented levels of government intervention into the U.S. economy. The American recovery was slower than in most European nations; by 1937 Great Britain's unemployment rate had declined to 10.3 percent.

Herbert Hoover's [[Reconstruction Finance Corporation]] was greatly expanded by Roosevelt, but its effect was to make capital markets less efficient, thereby prolonging the Depression even further. As explained by RFC director Jesse Jones in his autobiography, ''Fifty Billion Dollars'', "The law specified that we should lend only where the borrower could not get the money from others on reasonable terms." That is, only to uncreditworthy borrowers. Guided by this directive, Jones and the RFC redirected billions of dollars in valuable capital to politically-connected but economically-questionable businesses. "We even loaned money to [the owners of] a drove of reindeer in Alaska," Jones boasted. The RFC was abolished in the 1955 under a cloud of corruption and scandal.

Roosevelt's public works programs may have been an economic failure, but they were a resounding political success as they provided virtually unlimited opportunities for political patronage. In 1939 a special U.S. Senate Committee on Campaign Expenditures investigated the programs and found that in many states workers were required to sign a pledge to vote Democratic and, in some cases, to make campaign contributions, as a condition of employment. Businesses that sold supplies to the government were in some places required to make campaign contributions to the Democratic party in return for the contracts. The New Deal was largely a legalized [[Extortion|shake-down]] operation.<ref name="DiLorenzo_New_Deal" /><ref name="Anderson_WPA">William L. Anderson. [http://mises.org/daily/3921 "The Curse of Good Government"], Mises Daily, December 2009, refers to the spending of New Deal money. Referenced 2010-06-20.</ref>

Roosevelt's billions, adroitly used, had broken down every political machine in America. The patronage they once lived on and the local money they once had to disburse to help the poor was trivial compared to the vast floods of money Roosevelt controlled. And no political boss could compete with him in any county in America in the distribution of money and jobs.<ref name="Flynn_Roosevelt">John T. Flynn. [http://mises.org/books/rooseveltmyth.pdf "The Roosevelt Myth"] (pdf), p. 65; 1948. Referenced 2010-06-21.</ref>

As Henry Morgenthau, the secretary of the treasury and one of the most powerful men in America, said before the Democrats on the House Ways and Means Committee in 1939<ref name="Folsom_spending">Burton Folsom Jr. [http://search.barnesandnoble.com/New-Deal-or-Raw-Deal/Burton-Folsom-Jr/e/9781416592228#EXC "New Deal or Raw Deal?: How FDR's Economic Legacy Has Damaged America"], an excerpt from the book. Referenced 2010-06-21.</ref>:

<blockquote>''"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong...somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises....I say after eight years of this Administration we have just as much unemployment as when we started....And an enormous debt to boot!"''</blockquote>

==During World War II==
The recovery from the Great Depression in the United States is usually associated with the advent of [[World War II]], a period when real GDP appeared to increase phenomenally and the rate of unemployment fell almost to zero. A more detailed view produces a different picture, with large government "make-work" programs at first and military employment during the war - but a very slow actual recovery. When using hours worked as measure of employment, only in 1941 total work hours exceed the 1929 value (by 3 percent), with the population vigorously engaged in mobilization for war.<ref name="Higgs_hours">Robert Higgs. [http://www.independent.org/pdf/tir/tir_14_01_8_higgs.pdf "A Revealing Window on the U.S. Economy in Depression and War - Hours Worked, 1929–1950"] (pdf), The Independent Review, v. 14, n.1, Summer 2009. Referenced 2010-06-21.</ref>

Private [[investment]] had fallen significantly. Gross private investment plunged from almost 16 percent of GDP in 1929 to less than 2 percent in 1932; recovered to 13 percent in 1937 before falling again in the recession of 1938; and as late as 1941 stood at only 14 percent. During the war years, private investment ratios ranged from 3 to 6 percent. From 1946 through 1950 they ranged from 14 to 19 percent and averaged 16 percent — the same as in 1929. In 1929, when gross private investment was $16.2 billion, net investment was $8.3 billion. Net investment fell precipitously to $2.3 billion in 1930 and then became negative during each of the following five years. For the eleven-year period of 1930 to 1940, net private investment totaled minus $3.1 billion. Only in 1941 did net private investment ($9.7 billion) exceed the 1929 amount. During the 1930s, private investment remained at depths never plumbed in any other decade for which data exist.

One hypothesis is, that the New Deal prolonged the Great Depression by creating an extraordinarily high degree of '''[[regime uncertainty]]''' for the investors. Given the unparalleled outpouring of business-threatening laws, regulations, and court decisions, the oft-stated hostility of President Roosevelt and his lieutenants toward investors as a class, the political climate could hardly have failed to discourage some investors from making long-term commitments. There also exists a great deal of direct evidence that investors felt extraordinarily uncertain about the future of the property-rights regime between 1935 and 1941. Historians have recorded countless statements by contemporaries to that effect; in the years just before the war most business executives expected substantial weakening of private property rights ranging up to "complete economic dictatorship". The possibility that the United States might undergo an extreme regime shift seemed to many investors in the late 1930s and early 1940s not only possible but likely.<ref name="Higgs_investment">Robert Higgs. [http://www.independent.org/pdf/tir/tir_01_4_higgs.pdf "Regime Uncertainty - Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War"] (pdf), The Independent Review, Vol, I, No. 4, Spring 1997. Referenced 2010-06-21.</ref><ref name="Higgs_China">Robert Higgs. [http://www.independent.org/blog/index.php?p=2620 "Regime Uncertainty in the 1930s: A New Deal Insider’s Account"], ''The Beacon'', blog of the The Independent Institute, Jun 29, 2009. Referenced 2010-08-15.</ref>

===Price controls===
The [[Office of Price Administration]] (OPA) controlled virtually all prices. Federal [[price controls]] weren’t restricted to goods directly related to the war effort, like armor plate or chemicals needed for explosives, but were essentially universal. All important consumer goods were price controlled. Rents were especially tightly controlled. All told, about 650 separate price controls were in effect during the war years.

Moreover, these controls were not mere requests, but were strictly enforced. Failure to obey the price regulations was a crime. Between February 1941 and May 1947, the OPA instituted 259,966 sanctions on violators of price regulations, including 13,999 Federal criminal prosecutions and 5,127 local criminal prosecutions.<ref name="Rockoff_Drastic">Hugh Rockoff, "Drastic Measures: A History of Wage and Price Controls in the United States", New York: Cambridge University Press, 1984, p. 95, 143, 163. See [http://www.intellectualtakeout.org/library/books/drastic-measures-history-wage-and-price-controls-united-states preview]. Referenced 2012-12-01.</ref> During the period 1941-1945, the federal government seized under Presidential authority (and, in effect, temporarily nationalized) 73 industrial plants.{{Fact|Refers to "John L. Blackman, Jr., Presidential Seizure in Labor Disputes (Cambridge: Harvard University Press, 1967), pp. 259-76.", but I can't find this one online and hence confirm.}}

There was strong public support for the war against the Axis powers, so most people were predisposed to accept any measures the federal government declared to be essential for ultimate victory. Even during the war, though, public support for price controls was lukewarm. Many people had trouble with the idea that granting Federal bureaucrats power to set prices was necessary for military victory. For example, in November 1943, when patriotism was running very high, a Fortune magazine poll found that only 29.4 percent of respondents thought that the Office of Price Administration was doing a good job; 30.8 percent rated its job as "poor," 24 percent "medium," and 15.8 percent didn’t know. In other words, at the height of the Second World War, over 70 percent of respondents did not think that the OPA was doing a good job.<ref name="Rockoff_Drastic" />

Additional evidence of weak public support for price controls was the thriving black market for price-controlled and rationed goods. Naturally, because open violation of price regulations was illegal, "official" data on the size and scope of this activity is hard to come by. But there are indications that the black market was substantial. For example, in 1944 alone, the OPA found 338,029 separate violations of its regulations, and prosecuted 9,260 people (the remainder of the cases receiving some lesser penalty).<ref name="Rockoff_Drastic" /> Food, clothing, gasoline, consumer durables, and even apartments were readily available on the black market.<ref name="Anderson_Revolt">Gary Anderson. [http://www.fee.org/the_freeman/detail/the-1946-voter-revolt-against-government-regulation/ "The 1946 Voter Revolt Against Government Regulation"] ([https://docs.google.com/open?id=1SBJ2t_vwWhcb3h1bqWRrBNec1VZDpq6_u4F9YCESwyPlQrahsysFdCxMvNI9 pdf preview]), ''The Freeman'', February 1991. Referenced 2012-12-01.</ref>

==After-war recovery==
===Predictions===
It was widely believed during the latter part of World War II that substantial unemployment would develop after the war.<ref name="Vedder_Depression">Richard K. Vedder and Lowell Gallaway. [http://mises.org/journals/rae/pdf/RAE5_2_1.pdf "The Great Depression of 1946"] (pdf), ''The Review of Austrian Economics'', Vol. 5, No. 2 (1991): 3-32. ISSN 0889-3047. Referenced 2011-08-21.</ref> A review of forecasts by Michael Sapir confirmed the fact that many economists believed a severe recession or depression was coming. The impact of curtailed government outlays on the levels of income and employment in the private economy should be drastic, with projections speaking of over eight millions unemployed. Actual developments have been drastically different and unemployment was not higher than 2.75 million.<ref name="Sapir_Forecasts">Michael Sapir. [http://www.nber.org/chapters/c5709.pdf Part IV: Review of Economic Forecasts for the Transition Period] (pdf), chapter from the book ''Studies in Income and Wealth'', published 1949. ''National Bureau of Economic Research'', [http://ideas.repec.org/h/nbr/nberch/5709.html summary page]. 2011-08-21.</ref>

The thought of a rapid reduction in government military spending provided nightmares to some Keynesians. Hansen, writing in 1943, said: "When the war is over, the government cannot just disband the Army, close down munitions factories, stop building ships, and remove all economic controls." Yet that is precisely what the government did (although it took a year to remove most controls).

Despite the pessimistic concerns of economists and politicians, most of the news around the time of the Japanese surrender was upbeat with regards to the reconversion process. The faster-than-expected discharge of soldiers led some forecasters to revise their estimates of unemployment upward. For example, on September 1 ''Business Week'' predicted GNP in 1946 would be 20 percent below the 1944 levels and that unemployment would peak "closer to 9,000,000 than 8,000,000." The 9,000,000 figure represented about 14 percent of the projected civilian labor force. By end of September 1945, ''Business Week'' was revising its estimate of unemployment for the end of 1945 down to 4.0 to 4.5 million from 6.0 million.

Still, even in December 1945 economists were predicting that "depression is just around the corner." Robert Nathan predicted six million unemployed by the spring of 1946, implying an unemployment rate of 10 percent. Veteran Department of Labor economist Isidore Lubin decided, in Business Week's opinion, to "play in safe," predicting a wide range; six to nine million unemployed.<ref name="Vedder_Depression" />

===Recovery===
Unemployment rates remained below four percent, far below the normal peacetime rate in the twentieth century, either before or after 1946. The substantial price controls which were in effect in 1944, were essentially abandoned by 1947.

By the end of the first quarter of 1946, the process of reconversion was largely completed. Nearly seven million persons had left the armed forces, and government spending had fallen well over 90 percent of the way from the wartime peak to what would be the postwar low in 1947.

The federal budget deficit on a national income accounts basis in 1944 was some $54.5 billion, equal to 25.8 percent of GNP. That would be the equivalent in 1990 (in relation to GNP) of a deficit of about $1,400 billion, or 5.7 percent of GNP. By 1947, the federal budget was in ''surplus'' by $13.4 billion, or 5.7 percent of GNP. The equivalent would be well over a $300 billion surplus. Among other things, the government in pursuing this extraordinary contractionary fiscal policy fired roughly 20 percent of the total labor force. All of this had little impact on unemployment.

The prices rose during the war (1941-1946) by an estimated 46 percent. By contrast, the prices rose an estimated 13 percent from 1945 to 1948, which is still a substantial inflation rate, but far less than during the war.<ref name="Vedder_Depression" />

===Explanation===
Within a year of the war's end, it was clear that the pessimistic predictions were spectacularly wrong. The postwar prosperity was attributed to "pent-up demand", for goods that couldn't be obtained during the war. However, consumption increased only modestly. From the peak of military activity in the second quarter of 1945 to the trough of the mild downturn in the first quarter of 1946, government purchases of goods and services fell an extraordinary 67.5 percent, or $65.7 billion. Over the same period, consumption spending rose but $14 billion, barely 20 percent of the fall in government spending. Investment spending rose a more robust $21.6 billion, and net exports by $9.8 billion, but collectively the increases in demand fell about $20 billion short of decline in government spending, leading money GNP to fall a rather sharp 10 percent.

Instead, labor supply and real wages have been adjusted downward. For example, millions of women voluntarily decided to withdraw from the labor force and working hours have been commonly reduced. Rising profits, and the anticipation of future increases, stimulated investment spending (the only truly robust major component of aggregate demand). Relative price adjustments brought about what Keyensians perceived to be an increase in aggregate demand, rather than the other way around.<ref name="Vedder_Depression" />

==See also==
* ''[[America's Great Depression]]''
* ''[[The Politically Incorrect Guide to the Great Depression and the New Deal]]''
* [[Austrian Business Cycle Theory]]

==References==
{{Reflist|2}}

==Links==
* Literature
** [http://www.lewrockwell.com/gordon/gordon-gd-biblio.html Bibliography on the Great Depression] by [[David Gordon]], 2009
** {{md|3349|What You Must Read About the Great Depression|David Gordon|February 2009}}
** [http://mises.org/daily/3941 The Myth that Is FDR] by Garet Garrett, January 2010
** [http://mises.org/daily/4350 Did Hoover Really Slash Spending?] by Robert P. Murphy, May 2010
** [http://www.ameshistoricalsociety.org/exhibits/events/rationing.htm World War II Rationing], collected by the Ames Historical Society and the [[Wikipedia:Rationing|Wikipedia]] article on the same
** [http://www.mackinac.org/article.aspx?ID=4028 Free Markets or Free Lunches?] by Lawrence W. Reed, January 1998
** [http://www.mackinac.org/article.aspx?ID=4013 Great Myths of the Great Depression] by Lawrence W. Reed, January 1998
** [http://mises.org/daily/3778 The Gold Standard and the Great Depression] by Robert P. Murphy, October 2009
** [http://mises.org/daily/1623 The New Deal Debunked (again)] by Thomas J. DiLorenzo, September 2004
** [http://www.independent.org/newsroom/article.asp?id=138 Wartime Prosperity? A Reassessment of the U.S. Economy in the 1940s] by Robert Higgs, March 1992
** [http://www.independent.org/publications/article.asp?id=109 From Central Planning to the Market] by Robert Higgs, 1999, an extensive article about the Depression and the recovery after war
** [http://mises.org/daily/3661 My Summer Reading: Hyper-Inflation in Weimar Germany] by Ralph Fucetola, September 2009 (notes that the crisis was seen as insignificant at the beginning)
** [http://mises.org/journals/qjae/pdf/qjae11_3_5.pdf The Great Depression: Mises vs. Fisher] (pdf) by Mark Thornton, November 2008
** [http://www.thefreemanonline.org/featured/the-depression-youve-never-heard-of-1920-1921/ The Depression You’ve Never Heard Of: 1920-1921] by Robert P. Murphy, December 2009
** [http://mises.org/daily/3866 Reliving the Crash of '29] by Murray N. Rothbard, first published in November 1979
** [http://mises.org/daily/4039 Dangerous Lessons of 1937] by Jonathan M. Finegold Catalan, February 2010
** [http://mises.org/daily/4797 The Real Reason for FDR's Popularity] by Mark Thornton, October 2010
** [http://mises.org/daily/5215/Is-Budget-Austerity-ModernDay-Hooverism Is Budget Austerity Modern-Day Hooverism?] by Robert P. Murphy, April 2011
** [http://mises.org/daily/3515 "The Great Depression"] by Hans F. Sennholz, October 1969
** [http://mises.org/daily/2845 "Did Capitalism Cause the Great Depression?"] by Murray N. Rothbard, November 1959
** [http://www.econlib.org/library/Columns/y2009/Martinezgreatdepression.html# Latin America and the Great Depression] by Ibsen Martinez, April 2009
** [http://mises.org/daily/4896/Hoover-Bush-and-Great-Depressions Hoover, Bush, and Great Depressions] by Mark Thornton, January 2011
** {{md|6429|FDR: Sowing the Seeds of Chaos|David Stockman|May 2013}} (excerpt from ''The Great Deformation: The Corruption of Capitalism in America'')

* Other media
** [http://www.youtube.com/watch?v=7QLoeehMw0w Top Three Myths about the Great Depression and the New Deal] (video) by Stephen Davies, June 2011

* {{wplink}}

[[Category:History of the United States]]
[[Category:Financial crises]]

Franklin Delano Roosevelt

2013-10-26T13:56:30Z

John James: /* Links */ added

'''Franklin Delano Roosevelt''', commonly known by his initials '''FDR''', was the 32nd [[President of the United States]], serving from March 4, 1933 until his death on April 12, 1945, when he was succeeded by [[Harry S. Truman]].

Roosevelt is best known for the [[New Deal]], his attempt to end the [[Great Depression]] through further government [[intervention]], and for involving the [[United States]] in [[World War II]].

In 1937, Roosevelt attempted to "pack" the [[Supreme Court]] with six new justices after the existing court repeatedly blocked his interventionist [[legislation]].<ref>[[John Attarian]]. [http://mises.org/pdf//asc/essays/attarian.pdf The Roots of the Social Security Myth], p.11, online version, referenced 2010-12-15.</ref>

==See also==
* ''[[The Roosevelt Myth]]''
* ''[[FDR Goes to War]]''
* ''[[The Politically Incorrect Guide to the Great Depression and the New Deal]]''
* ''[[New Deal or Raw Deal? How FDR's Economic Legacy Has Damaged America]]''
* ''[[America's Great Depression]]''

==Notes==
{{reflist}}

==Links==
* [http://mises.org/daily/3941 The Myth that Is FDR] by [[Garet Garrett]], 1949. Also: [http://media.mises.org/mp3/audioarticles/3941_Garrett.mp3 MP3 audio version]
* "The Roots of the Social Security Myth" by John Attarian. ([http://mises.org/pdf/asc/essays/attarian.pdf PDF])
* [http://en.wikipedia.org/wiki/Judiciary_Reorganization_Bill_of_1937 Wikipedia on Supreme Court packing attempt]
* {{md|4797|The Real Reason for FDR's Popularity|[[Mark Thornton]]|October 2010}}
* {{md|5235|FDR and the Collectivist Wave|[[Ralph Raico]]|June 2011}}
* {{md|5358|The Influence and Origins of FDR|Ralph Raico|1998}}
* {{mb|2627|FDR’s Heinous Crimes|David J. Heinrich|October 2004}}
* {{md|6429|FDR: Sowing the Seeds of Chaos|David Stockman|May 2013}}
* {{md|2886|John T. Flynn and the Myth of FDR|Ralph Raico|March 2008}}
* {{md|3045|Freddie, Fannie, and Curses on FDR|[[Lew Rockwell|Llewellyn H. Rockwell Jr.]]|July 2008}}
* {{md|2312|Three New Deals: Why the Nazis and Fascists Loved FDR|[[David Gordon]]|September 2006}}
* {{md|100|FDR: Wrecker|Investors Business Daily|December 1998}}
* {{md|4801|The Mystery of FDR Unraveled|Llewellyn H. Rockwell Jr.|October 2010}}
* {{md|5517|Out, Out Damn Depression: FDR in 1938|John T. Flynn|August 2011}}
* Mises Review: [http://mises.org/misesreview_detail.aspx?control=357 "Politically Incorrect Guide to..."] by [[David Gordon]], Summer 2009 (republished as Mises Daily [http://mises.org/daily/3448 here])
* ''[[The Free Market]]'': [http://mises.org/freemarket_detail.aspx?control=258 "How FDR Made the Depression Worse"] by [[Robert Higgs]], February 1995
* ''The Free Market'': [http://mises.org/freemarket_detail.aspx?control=355 "The Truth about FDR"] by [[Tom Woods|Thomas E. Woods, Jr.]], June 2001
* ''The Free Market'': [http://mises.org/freemarket_detail.aspx?control=515 "The New Deal Debunked"] by [[Thomas J. DiLorenzo]], November 2004

{{DEFAULTSORT:Roosevelt, Franklin Delano}}
[[Category:Interventionists]]
[[Category:Presidents of the United States]]

{{stub}}

Great Depression

2013-10-26T13:55:34Z

John James: /* Links */

{{RightTOC}}
{{For|the book by Lionel Robbins|The Great Depression}}

The '''Great Depression''' was the longest and most severe economic depression ever experienced by the Western world.<ref name="Britannica_debt">Encyclopædia Britannica. [http://www.britannica.com/EBchecked/topic/243118/Great-Depression "Great Depression"], Encyclopædia Britannica Online, referenced 2010-06-12.</ref>

==Prelude==
In the forty years 1890 to 1930, the population of the United States doubled, the value of farm property increased three and a half times, pig iron production four and a half times, exports five times, coal production five times, and freight traffic five and a half times, but commercial bank deposits increased over seventeen and a half times. Thus, while the gold stock had increased proportionally with the increase of industrial production, the expansion in bank credit had far outstripped both and had thus been at the expense of a thinning gold reserve. The monetary gold stock available to support and redeem this tremendous amount of bank liabilities that was being created, which had been 25.3 per cent of total note and deposit liabilities of banks in 1865, and 23.9 per cent in 1880, steadily dropped under the pressure of the public upon the banking interest for more and more credit, standing in 1900 at 20.4 per cent, in 1910 at 14.2 per cent and in 1930 at 10.4 per cent. Such had been the diminution of reserves that by the decade 1920-1930, banking was being conducted "on a shoestring." In 1900 the ratio of vault cash to deposit liabilities of commercial banks had dropped to 14.8 per cent, and in 1910 to 12.7 per cent—vault cash in those years being respectively $706,302,000 and $1,366,164,000.<ref name="Groseclose_Money">Elgin Groseclose. [http://mises.org/resources/3138/Money-and-Man Money and Man], 1934, p.209-210. Referenced 2011-03-24.</ref>

From June 1914 to January 1920, when [[Demand deposits|demand deposits]] grew by 96.9 percent, [[Time deposits|time deposits]] rose by 126.1 percent. In the great boom of the 1920s, that started after the [[Depression of 1920–21|recession of 1920–21]] (a short recession, thanks to the budget cutting and lowering of taxes by [[Warren Harding]]<ref name="Woods_Harding">Thomas E. Woods, Jr. [http://www.firstprinciplesjournal.com/articles.aspx?article=1322&theme=home&loc=b "Warren Harding and the Forgotten Depression of 1920"], First Principles, Fall 2009 issue of The Intercollegiate Review. See also the [http://www.youtube.com/watch?v=czcUmnsprQI video]. Referenced 2009-10-11.</ref>), total demand deposits rose from 1921 to 1929 by 36.5 percent. Time deposits in banks expanded in the same period by 75.9 percent. The great boom of the 1920s (also called "[[Roaring Twenties]]") was largely fueled by credit expansion going into time deposits. The greatest expansion of time deposits came in Central Reserve Cities (New York and Chicago), where the [[Federal Reserve System|Fed]]’s open market operations were all conducted, as opposed to Reserve Cities and Country Banks. As acknowledged by Federal Reserve officials, time or savings deposits were then, for all practical purposes, equivalent to demand deposits and should be paid on demand in case of a run on a bank.

With the passage of the [[Federal Reserve Act]], [[Woodrow Wilson|President Wilson]] appointed [[Benjamin Strong, Jr.|Benjamin Strong]] to the most powerful post in the Federal Reserve System, Governor of the [[Reserve Bank of New York|Federal Reserve Bank of New York]]. He made quickly this position dominant in the System and decided on Fed policy without consulting or even against the wishes of the Federal Reserve Board in Washington. Strong was the dominant leader of the Fed from 1914 until his death in 1928. He pursued an inflationary policy, to finance the war effort for [[World War I|WWI]], connected to the interests of the [[J.P. Morgan & Co.|House of Morgan]]. Another motivation was the attempt to prop up the [[Bank of England]] in the 1920s, when it returned to the [[gold standard]] with an overvalued pound. To prevent the loss of gold to the States, its governor [[Montagu Norman, 1st Baron Norman|Montagu Norman]] secretly convinced Strong to inflate in order to help England. The expansion ended only after Strong's death and the '''Great Depression''' followed soon after. In 1928 Strong admitted that "very few people indeed realized that we were now paying the penalty for the decision which was reached early in 1924 to help the rest of the world back to a sound financial and monetary basis" - that is, to help Britain maintain a phony and inflationary form of gold standard.<ref name="Rothbard_Federal_Reserve">[[Murray N. Rothbard]]. [http://mises.org/books/mysteryofbanking.pdf "The Mystery of Banking"] (pdf), Chapter XVI: Central banking in the United States IV: The Federal Reserve System, p.235-246, referenced 2009-10-03.</ref>

The inflation was also motivated by a desire to help American exporters (particularly farmers), by stimulation of foreign lending. At the same time the U.S. turned to a sharp protectionist policy with the [[Fordney–McCumber Tariff]] of 1922. In the foreign lending boom, other countries were hampered in trying to sell their goods to the United States, but were encouraged to borrow dollars. The government did not have any peacetime authority to interfere with loans, but did so illegally. In 1921, President [[Warren G. Harding|Harding]] and his cabinet conferred with several American investment bankers, at the instigation of Secretary of Commerce [[Herbert Hoover|Hoover]], to be informed in advance of foreign loans, so that the government "might express itself regarding them". The bankers agreed. Hoover commented that even bad loans helped American exports and provided a cheap form of relief and employment. Later Hoover demanded from bankers, that foreign loans would be inspected by agents of the [[Department of Commerce]]. Both requests were mostly ignored. While admitted to be legally unenforceable, it was all in the name of "national interests".<ref name="Rothbard_pre_Depression">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 5. The Development of the Inflation, p. 137-167, referenced 2009-11-17.</ref>

{{See also|Federal Reserve System}}

===Housing bubble===
An outlet for the excessive credit created by the banking system was in financing an urban real estate boom in the U.S. During the decade 1920-1930, people were moving in a constant stream into the cities; the population of the sixty-three metropolitan zones (cities of 100,000 or more plus adjacent counties) rose from 46,491,000 to 59,118,000, or from 44 per cent of total population to 48 per cent. Seventy-four per cent of the increase in total population during the decade occurred in the metropolitan areas.

A huge building boom followed, the Federal Reserve Board index of building contracts awarded, 1923-1925 taken as 100, rising from 63 in 1920 to 122 in 1925, and 135 in 1928. This boom occurred chiefly in skyscraper offices and expensive apartment house developments, whose notes were more readily marketable, rather than in the modest single family accommodations. The result was that when the era had passed the slums still existed. In New York City, for instance, where at least four skyscrapers were built in these years with the only object, apparently, of surpassing the record for the world's tallest building, from a quarter to a third of the population, say 1,800,000 persons, still occupied houses that had been outlawed thirty-three years earlier by the Tenement House Act of 1901.<ref name="Groseclose_Money">Elgin Groseclose. [http://mises.org/resources/3138/Money-and-Man Money and Man], 1934, p.225, 244. Referenced 2011-03-24.</ref>

===Predictions===
{{See also|Austrian predictions#The Great Depression}}
The Great Depression was predicted by several Austrian economists:

* In Austria, economist [[Ludwig von Mises]] saw the problem developing in its early stages and predicted to his colleagues in 1924 that the large Austrian bank, [[Credit Anstalt]], would eventually crash. He wrote a full analysis of [[Irving Fisher|Irving Fisher’s]] monetary views, published in 1928, where he targeted Fisher’s reliance on price indexes as a key vulnerability that would bring about the Great Depression, concluding: "because of the imperfection of the index number, these calculations would necessarily lead in time to errors of very considerable proportions."<ref name="Mises_Causes">Ludwig von Mises. [http://mises.org/resources/3361 "The Causes of the Economic Crisis, and Other Essays Before and After the Great Depression"], collection of works reposted from 1923 and 1928. Referenced 2011-01-12.</ref>
* [[F. A. Hayek]] published several articles in early 1929 in which he predicted the collapse of the American boom. [[Felix Somary]], who like Mises was a student at the University of Vienna, issued several dire warnings in the late 1920s.
* In America economists [[Benjamin Anderson]] and [[E.C. Harwood]] also warned that the Federal Reserve policies would cause a crisis, and like Somary, they were largely ignored.<ref name="Thornton_Mises">Mark Thornton. [http://mises.org/journals/scholar/Thornton16.pdf "Mises vs. Fisher on Money, Method, and Prediction: The Case of the Great Depression"] (pdf), p.13-15; December 2006. Referenced 2011-12-13.</ref> Albert H. Wiggin summed up in 1931 that the "depression has been prolonged and not alleviated by delay in making necessary readjustments."<ref name="Rothbard_Wiggin">Murray N. Rothbard. [[America's Great Depression]], Chapter 9, referenced 2011-01-11.</ref>

==The Crash==
{{Main|Wall Street Crash of 1929}}
The great boom of the 1920s began around July, 1921, after a year or more of sharp recession, and ended about July, 1929, when the production and business activity began to decline, although the [[Wall Street Crash of 1929|famous stock market crash]] came in October of that year. [[Herbert Hoover]], an avid proponent of interventionism became President. Characteristic for him were "voluntary" measures that the government desired, with the implicit threat that if business did not "volunteer" properly, compulsory controls would soon follow.<ref name="Rothbard_1920s_boom">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 5. The Development of Hoover's Interventionism: Unemployment, p. 188-189, referenced 2009-11-20.</ref>

After the stock-market crash, Hoover began a series of conferences with big business and labor leaders, telling them that cutting wage rates (the standard response in previous depressions) would be disastrous, because then the workers wouldn't make enough to buy the products.<ref name="Hoover 11-15-29 NC">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22005.</ref> This "liquidation" of labor would only deepen the depression by reducing their "purchasing power". Leading industrialists pledged to maintain wage rates, expand construction, and share any reduced work,<ref name="Hoover CC remarks">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22023.</ref><ref name="Telegraph-Herald 11-21-29">[http://news.google.com/newspapers?id=T51FAAAAIBAJ&sjid=C70MAAAAIBAJ&dq=hoover%20wage&pg=6813%2C5825398 "Credit President With Pledge to Keep Wages Up"], ''The Telegraph-Herald and Times-Journal,'' November 21, 1929.</ref><ref name="Sarasota Herald-Tribune 11-22-29">[http://news.google.com/newspapers?id=LYQcAAAAIBAJ&sjid=MmQEAAAAIBAJ&dq=hoover%20wages%20business&pg=6694%2C4315629 "Agree To Keep Wage Level Up"], ''Sarasota Herald-Tribune,'' November 22, 1929.</ref><ref name="Gettysburg Times 11-22-29">[http://news.google.com/newspapers?id=DdElAAAAIBAJ&sjid=1PkFAAAAIBAJ&dq=hoover%20wage&pg=2000%2C1635972 "Conferences Please Hoover"], ''The Gettysburg Times,'' November 22, 1929.</ref><ref name="Lewiston Evening Journal 11-23-29">[http://news.google.com/newspapers?id=Iq01AAAAIBAJ&sjid=uWcFAAAAIBAJ&dq=hoover%20wage&pg=1270%2C4673686 "No Hard Times, Hoover Assures Wage Earners"], ''Lewiston Evening Journal,'' November 23, 1929.</ref><ref name="Tuscaloosa News 11-25-29">[http://news.google.com/newspapers?id=xYA-AAAAIBAJ&sjid=BkwMAAAAIBAJ&dq=hoover%20wage&pg=6182%2C3112525 "All Citizenry Asked To Help Progress Plan"], ''The Tuscaloosa News,'' November 25, 1929.</ref><ref name="Miami News 11-26-29">[http://news.google.com/newspapers?id=o7cuAAAAIBAJ&sjid=6tcFAAAAIBAJ&dq=hoover%20wage&pg=6639%2C4846533 "Hoover's Plan To Help Trade Gets Approval"], ''The Miami News,'' November 26, 1929.</ref> to fulfill Hoover's request that "the first shock must fall on profits and not on wages".<ref name="hoover44">Herbert Hoover, ''The Memoirs of Herbert Hoover: The great depression, 1929-41'', (New York: Macmillan, 1952) 44-45.</ref>

At the same time, the Federal Reserve expanded rapidly and lowered its interest rates. Its member banks expanded their deposits in the last week of October 1929 alone by 10%, mostly in New York. Hoover praised the Fed for the saving of shaky banks and restoring confidence.<ref name ="Hoover CC remarks" /> The depression should be over in a few months. A large public works program was also initiated.<ref name="Rothbard_public_works">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 8. The Depression Begins: President Hoover Takes Command, p. 209-217, referenced 2009-11-21.</ref><ref name="Hoover 1-3-20">John T. Woolley and Gerhard Peters, ''The American Presidency Project'' [online]. Santa Barbara, CA. Available from World Wide Web: http://www.presidency.ucsb.edu/ws/?pid=22468.</ref>

Hoover promised the farm bloc to support farm cooperatives and prices and established the [[Federal Farm Board]] (FFB). It would make all-purpose loans to farm cooperatives at low interest rates and establish "stabilization corporations" to control farm surpluses and bolster farm prices. Its board was dominated by representatives of these farm cooperatives. To combat falling prices, it made loans to farmers to keep wheat and cotton off the market and later started to buy the surpluses. For a while, prices were held up and farmers increased production, only to find that prices would fall even more. As America held wheat off the market, it lost its former share of the world’s wheat trade. The farmers were urged to decrease their acreage, while the government still promoted reclamation projects to increase farm production. The surpluses of wheat accumulated and prices fell to such a degree, that the FFB decided to dump wheat stocks abroad, resulting in a drastic fall in market prices. The attempts to keep up the price of cotton, wool, livestock, etc. failed as well. A "[[Farmers' Holiday Association|Farm Holiday]]" was declared to stop production, The movement soon turned to violence and failed to stop the falling farm prices. but succeeded to avoid some foreclosures of its members.<ref name="Rothbard_Agriculture">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), The New Deal Farm Program, p. 217-237, referenced 2009-11-21.</ref>

In 1930, the [[Smoot–Hawley Tariff Act|Smoot–Hawley Tariff]] was passed, despite objections of many economists and industrial leaders. Hoover originated a higher tariff on agricultural products to help farmers, but it was raised on many other products. Many other countries have retaliated with their own tariffs and foreign trade declined significantly. (From 1929 to 1932, U.S. imports from Europe decreased from $1,334 million to just $390 million, while U.S. exports to Europe decreased from $2,341 million to $784 million. Overall, world trade decreased by some 66% between 1929 and 1934.<ref>U.S. Department of State. [http://future.state.gov/when/timeline/1921_timeline/smoot_tariff.html Smoot-Hawley Tariff], referenced 2009-11-22.</ref>) Also, to relieve the unemployment problem, and to help keep wage rates up, the President effectively banned further immigration into the United States.<ref name="Rothbard_Depression_1930">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 9. 1930, p. 239-256, referenced 2009-11-22.</ref>

===In Europe===
In Europe, the crisis began in earnest with the ''Boden–Kredit Anstalt'', the most important bank in Austria and Eastern Europe. It had to merge with the [[Creditanstalt|Oesterreichische–Kredit–Anstalt]] after rescue attempts by its government and other banks. When Austria declared a customs union with Germany in March 1931, the French government feared this development and several French banks suddenly insisted on redemption of their debts from both countries. The bank collapsed. After more rescue attempts the Austrian Government voted a $150 million guarantee to the bank, but by this time was its credit worthless, and Austria soon declared national bankruptcy by going off the gold standard. Later, Germany, England, and most other European countries renounced their obligations and went off the gold standard as well. While the impact on United States was not very large due to the lowered international trade, it certainly did not help, neither did the many loans granted to prop up foreign banks.<ref name="Rothbard_Depression_1931_Europe">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 10. 1931—"The Tragic Year", p. 257-284, referenced 2009-11-27.</ref>

==1931, "The Tragic Year"==
The crisis worsened in the US in 1931. Production continued to fall drastically, as did prices and foreign trade, and unemployment ran up to almost 16 percent of the labor force. The Federal Reserve Board (FRB) index of manufacturing production, which had been 110 in 1929 and 90 in 1930, fell to 75 in 1931. Hardest hit, in accordance with Austrian [[ABCT|cycle theory]], were producers’ goods and higher order [[capital]] goods industries, rather than the consumer goods’ industries. Despite attempts to inflate, bank deposits and the aggregate [[money supply]] fell sharply, particularly at the end of the year. The British abandoning of the gold standard, bank failures abroad and the growing number of failures at home, caused a growing loss of confidence by Americans in their banking system. The wages were also beginning to fall, first secretly, then openly by the end of 1931.<ref name="Time 4-13-31p">"[http://www.time.com/time/magazine/article/0,9171,752764,00.html "THE PRESIDENCY: The Pledge"], ''TIME,'' April 13, 1931.</ref><ref name="Time 4-13-31i">[http://www.time.com/time/magazine/article/0,9171,752766,00.html "INDUSTRY: Next: Wages?"], ''TIME,'' April 13, 1931.</ref><ref name="Time 8-10-31">[http://www.time.com/time/magazine/article/0,9171,882003,00.html "LABOR: When Winter Comes"], ''TIME,'' August 10, 1931.</ref><ref name'"Time 10-5-31">[http://www.time.com/time/magazine/article/0,9171,753027-2,00.html "LABOR: Deflated"], ''TIME,'' October 5, 1931.</ref><ref name="Time 11-09-31">[http://www.time.com/time/magazine/article/0,9171,742546,00.html "LABOR: Rail Dickers"], ''TIME,'' November 9, 1931.</ref>

The gross national product fell from $91.1 billion in 1930, to $76.3 billion in 1931. Total government receipts fell from $13.5 billion to $12.4 billion, but total government expenditures rose from $13.9 billion to $15.2 billion, in federal, rather than state and local, spending (federal expenditures rose from $4.2 billion in 1930 to $5.5 billion in 1931). In the middle of a great depression when people needed to be relieved of governmental burdens, the dead weight of government rose from 16.4 percent to 21.5 percent of the gross private product. From a modest surplus in 1930, the Federal government so ran up a huge $2.2 billion deficit in 1931.<ref name="Rothbard_Depression_1931_Europe" />

Direct relief was just about the one sphere where President Hoover seemed to prefer voluntary to governmental action. The [[Red Cross]] opposed a bill, in early 1931, that would grant it $25 million for relief, declaring that it would "to a large extent destroy voluntary giving". Many private charity organizations, philanthropists, and social workers had the same views. Governmental unemployment relief was seen to have a role in creating and perpetuating unemployment in Britain (the "dole"). It was attacked by many business leaders, including [[Henry Ford]], the leaders of the [[National Association of Manufacturers]] and the [[United States Chamber of Commerce|Chamber of Commerce]], and former President [[Calvin Coolidge|Coolidge]].<ref name="Rothbard_Depression_1931_Europe" />

The [[Davis-Bacon Act]] was signed by President Hoover in 1931. It mandated that prevailing (union) wages be paid by the Federal Government for public works projects. It has been argued that the Davis-Bacon Act was a [[Jim Crow law]], since its intent <ref name=”williams”>Walter Williams, [http://www.jewishworldreview.com/cols/williams031203.asp "Congress' insidious discrimination"], ''Jewish World Review'' (March 12, 2003), accessed 2011-02-01.</ref> and its effect <ref name=”cato”> David Bernstein, [http://www.cato.org/pubs/briefs/bp-017.html "The Davis-Bacon Act: Let's Bring Jim Crow to an End"], ''Cato Institute Briefing Papers'' (January 18, 1993), accessed 2011-02-01.</ref> was to prevent lower-paid, non-unionized black laborers from competing against higher-paid, unionized white laborers. Hoover promoted and supported the legislation, as he believed that "[t]he very essence of great production is high wages...because it depends upon a widening range of consumption only to be obtained from the purchasing power of high real wages...." <ref name="hoover108">Herbert Hoover, ''The Memoirs of Herbert Hoover: Volume 2, The Cabinet and the Presidency, 1920-33'', (New York: Macmillan, 1952) 108.</ref>

==1932, The Hoover New Deal==
In an atmosphere of crisis, President Hoover called for more drastic measures, including more government aid and loans. With a $2 billion deficit during annual year 1931, Hoover felt that he had to do something to combat it and chose to increase the taxes. The [[Revenue Act of 1932]] was one of the greatest increases in taxation ever enacted in the United States in peacetime. Many wartime
excise taxes were revived, sales taxes were imposed on gasoline, tires, autos, electric energy, malt, toiletries, furs, jewelry, and other articles; admission and stock transfer taxes were increased; new taxes were levied on bank checks, bond transfers, telephone, telegraph, and [[radio]] messages; and the personal income tax was raised drastically as follows: the normal rate was increased from a range of 1½ percent–5 percent, to 4 percent–8 percent; personal exemptions were sharply reduced, and an earned credit of 25 percent eliminated; and surtaxes were raised enormously, from a maximum of 25 percent to 63 percent on the highest incomes. Furthermore, the corporate income tax was increased from 12 percent to 13: percent, and an exemption for small corporations eliminated; the estate tax was doubled, and the exemption floor halved; and the gift tax, which had been eliminated, was restored, and graduated up to 33⅓ percent. The postal rates were raised as well.

Despite the drastic increase in tax rates, total Federal revenue for 1932 declined because of the deepened depression—itself partly caused by the increase in tax rates. Total Federal receipts, excluding government enterprises, declined from $2.2 billion in 1931 to $1.9 billion in 1932; including government enterprises, Federal receipts fell from $3.4 billion to $3 billion.

Total government receipts fell from $12.4 billion to $11.5 billion. As a result, the huge Federal deficit continued despite a drop in government expenditures in 1932: Federal expenditures falling from $5.5 billion to $4.4 billion, and aggregate government expenditures falling from $15.2 billion to $13.2 billion (all numbers including government enterprises). Of the $1.7 billion in total government deficit, the bulk of it — $1.4 billion — was in the Federal government account. The state and local governments were forced to cut back their expenditures to near the level of their dwindling receipts. One of the most ominous projects for Federal spending during 1932 was a Congressional move for a huge $2 billion veterans bonus, to be financed by an issue of new currency. It was its final defeat in the Senate in June that did most to defeat a general clamor for much larger government spending.

Meanwhile, however, President Hoover himself was beginning to have doubts about one of his favorite policies: public works. In a conference at the end of February, Hoover admitted that his public works program, which had nearly doubled Federal construction since the start of the depression, had failed. It was very expensive, costing over $1200 per family aided, it was unavailable to the needy in remote regions and to those who were unable to perform such labor, which was, after all, unskilled make-work. By May, Hoover had openly reversed his earlier position. As a result, Federal public works only increased by $60 million in 1932, to reach the $333 million mark. Public works was not to come really to the fore again until the Roosevelt administration.

Holding firm to his interventionist belief that the downward pressure on wages must be resisted <ref name ="hoover108" />, Hoover signed the [[Norris-Laguardia Act]] into law on March 23, 1932. It banned "yellow-dog" contracts, removed federal courts’ authority to issue injunctions against labor disputes, and provided greater ease for workers to organize<ref name="enotes">[http://www.enotes.com/major-acts-congress/norris-laguardia-act "Norris-Laguardia Act (1932): Major Acts of Congress"], accessed 2011-02-01.</ref><ref name="Time 3-21-32">[http://www.time.com/time/magazine/article/0,9171,743381,00.html "LABOR: Yellow Dog's End"], ''TIME,'' March 21, 1932.</ref>; a landmark victory for organized labor.

If Hoover eagerly embraced other forms of [[intervention]], he gave ground but grudgingly on one issue where he had championed the voluntary approach: direct relief. Governor [[Franklin D. Roosevelt]] of New York led the way for state relief programs in the winter of 1931–1932, and he induced New York to establish the first state relief authority: the Temporary Emergency Relief Administration, equipped with $25 million. Other states followed this lead, and a bill was introduced for a $500 million federal relief program. The bill was defeated, but, with depression deepening and a Presidential election approaching, the administration all but surrendered, passing the [[Emergency Relief and Construction Act]] of July, 1932 — the nation’s first Federal relief legislation. All in all, total public relief in 120 of the nation’s leading urban areas amounted to $33 million in 1929, $173 million in 1931, and $308 million in 1932.

One thing Hoover was not reticent about: inflation. The administration first cleared the path for the program by passing the [[Glass–Steagall Act]] in February, which (a) greatly broadened the assets eligible for rediscounts with the Fed, and (b) permitted the Federal Reserve to use government bonds as collateral for its notes, in addition to commercial paper. At the end of February, 1932, total bank reserves had fallen to $1.85 billion. At that point, the [[Federal Reserve System|FRS]] launched a gigantic program of purchasing U.S. government securities. By the end of 1932, total reserves had been raised to $2.51 billion. This enormous increase of $660 million in reserves in less than a year is unprecedented in the previous history of the System. If the banks had kept loaned-up, the money supply of the nation would have increased by approximately $8 billion. Instead, the money supply fell by $3.5 billion during 1932, from $68.25 to $64.72 billion at the end of the year, and with the bank deposit component falling by $3.2 billion. Until the second quarter of 1932, the nation’s banks had always remained loaned up, with only negligible excess reserves. After, the banks accumulated excess reserves, and it is estimated that the proportion of excess to total bank reserves rose from 2.4 percent in the first quarter of 1932, to 10.7 percent in the second quarter. By the fourth quarter of 1932, excess reserves were estimated to a double of 20.3 percent of total bank reserves.

During the 1920s, a typical year might find 700 banks failing, with deposits totaling $170 million. In 1930, 1350 banks failed, with deposits of $837 million; in 1931, 2,293 banks collapsed, with deposits of $1,690 million; and in 1932, 1,453 banks failed, having $706 million in deposits. This enormous increase in bank failures was enough to give any bank pause—particularly when the bankers knew in their hearts that no bank (outside of the nonexisting ideal 100 percent bank) can ever withstand a determined run. Consequently, the banks permitted their commercial loans to run down without increasing their investments. Inflation by the government was turned into deflation by the policies of the public and the banks. The American economy reached the depths of depression during 1932 and 1933, and yet it had begun to turn upward by mid-1932. It is not far-fetched to believe that the considerable deflation of July 1931–July 1932, totaling $7.5 billion of currency and deposits, or 14 percent, was partly responsible for the mid-summer upturn.<ref name="Rothbard_Depression_1932">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 11. The Hoover New Deal of 1932, p. 285-320, referenced 2009-11-27.</ref>

As the Depression got worse and people lost their confidence in the banks, they decided to take custody of their cash. Seeing people in large numbers pulling their money out of banks — money the banks had promised to provide on demand — President Hoover blasted them for their "traitorous [[hoarding]]." He organized an antihoarding drive and delivered a radio address ([http://www.bobsuniverse.com/BWAH/31-Hoover/19320306a.pdf transcript], pdf) in which he pleaded with the public to stop hoarding (i.e., to stop converting their bank deposits into cash).<ref name="Smith_hoarding">George F. Smith. [http://mises.org/story/3707 "The Virtue of Hoarding"], Mises Daily, posted on October 09, 2009, referenced 2009-11-18.</ref>

The reaction to this growing insistence of the people on claiming their rightful, legally-owned property, was a series of vigorous attacks on property right by state after state. One by one, states imposed "[[bank holiday]]s", thus permitting the banks to stay in business while refusing to pay virtually all of the just claims of their depositors (a pattern that had become almost traditional in America since the [[Panic of 1819]]).<ref name="Rothbard_Depression_holidays">[[Murray N. Rothbard]]. "[[America’s Great Depression]]" ([http://mises.org/rothbard/agd.pdf pdf]), 11. The Hoover New Deal of 1932, p. 325-326, referenced 2013-04-12.</ref>

Nominal paychecks fell much more slowly during the early years of the Great Depression than the general [[price]] level (wholesale prices fell by 10 percent in 1930, by 15 percent in 1931)<ref name="Rothbard_Depression_1931_Europe" /> - and those who kept their job experienced a higher increase in real (inflation-adjusted) wages, than during the Roaring 1920s!<ref name="ohanian"> Lee E. Ohanian, "What - or Who - Started the Great Depression?", ''NBER Working Paper No. 15258'' (August 2009). Free copy online [http://www.econ.ucla.edu/people/papers/Ohanian/Ohanian499.pdf here]</ref> And so has unemployment reached record highs during Hoover's first and only term. When FDR went back on the US government's promise to redeem dollars for gold, the Federal Reserve could flood the economy with new dollars, the prices began to rise again. Because wage rates were not allowed to fall to their new, market-clearing level, [[Inflation|inflating]] the currency has paradoxically reduced unemployment.<ref name="Murphy_Depression">Robert P. Murphy. [http://mises.org/story/3778 "The Gold Standard and the Great Depression"], Mises Daily, posted on October 30, 2009, referenced 2009-11-18.</ref>

The Fed has expanded bank reserves in the 1930s. Panicking at the inflationary potential, it doubled the minimum reserve requirements to 20 percent in 1938, sending the economy into a tailspin of credit liquidation. The Fed, ever since that period, has been very cautious about the degree of its changes and changed bank reserve requirements fairly often, but in very small steps, by fractions of one percent.<ref name="Rothbard_Fed_requirements">[[Murray N. Rothbard]]. [http://mises.org/books/fed.pdf "The Case Against the Fed"] (pdf), How the Fed Rules and Inflates, p. 144, referenced 2010-03-23.</ref>

After 1933, Federal Reserve Notes and deposits were no longer redeemable in gold coins to Americans, their gold was confiscated and exchanged for Federal Reserve Notes, which became legal tender; and Americans were stuck in a regime of fiat paper issued by the government and the Federal Reserve.<ref name="Rothbard_Fed_gold">[[Murray N. Rothbard]]. [http://mises.org/books/fed.pdf "The Case Against the Fed"] (pdf), The New Deal and the Displacement of the Morgans, p. 131-132, referenced 2010-05-10.</ref>

===Tax revolt in the USA===
There has been a widespread opposition to real estate taxes in cities across America and some Americans were in fact not paying their taxes. The movement declined quickly, some scholars acknowledge certain influence, but ultimately declare it a failure.<ref name="Beito_revolt">David T. Beito. [http://mises.org/books/taxpayersinrevolt.pdf Taxpayers in Revolt - Tax Resistance during the Great Depression] (pdf), referenced 2010-06-15.</ref> Others consider it a resounding success, however.

President Hoover's massive tax increase bill that passed into law as the [[Revenue Act of 1932]], with many new taxes. The most burdensome taxes for many Americans, however, was the property tax. Property taxes required taxpayers to make an explicit tax payment of significant size from which they could not evade without losing what was often their most significant piece of property and wealth. The property taxes have risen in the decade before the Depression; throughout the 1920s, the general property tax accounted for over 90 percent of taxes levied by all cities over 30,000 in population. One reason for this dependence was that alcohol revenue from sales taxes and licenses had "dried up" due to prohibition. The burden of taxes increased significantly, even if tax rates remained the same. Another source of taxpayer ire was that the real wages of public employees rose nearly 12% between 1929 and 1933.

Tax delinquency increased from its normal rate of 10% to more than 30%. Tax protest organization formed quickly and spontaneously in rural regions in response to tax authorities selling the land of farmers. Estimates placed the number of taxpayer organizations at between 3,000 and 4,000 organizations nationwide.

The tax limitation movement was effective in several states in establishing cuts and limitations on property tax rates. The second success, which was both more important and far less obvious, was the passage of the 21st Amendment that repealed alcohol [[Prohibition in the United States|prohibition]]. The legalization of alcohol sales in most states provided federal, state, and local government with increased tax revenues to offset cuts in property taxes while simultaneously providing a drastic decrease in the price of alcohol and in effect granting the American public a type of tax cut. Income tax revenue fell 60% from 1930 to 1933 placing a severe financial constraint on Congress. The search for an alternative revenue source led to the conversion of F.D.R. from a "dry" to a "wet" and resulted in the 1932 Democratic party platform to call for Repeal in order to provide "a proper and needed revenue." Revenue shortfalls made Repeal possible and the alcohol tax provided 13% of all federal revenue by 1936.<ref name="Thornton_revolt">Mark Thornton and Chetley Weise. [http://mises.org/journals/jls/15_3/15_3_4.pdf The Great Depression Tax Revolts Revisited.] (pdf), Journal of Libertarian Studies, Volume 15, no. 3 (Summer 2001), referenced 2010-06-15.</ref><ref name="Thornton_success_revolt">Mark Thornton and Chetley Weise. [http://mises.org/journals/scholar/Thornton1.PDF The Success of the Great Depression Tax Revolts] (pdf), referenced 2010-06-15.</ref>

==1933, end of Hoover's term==
Seeking reelection, Hoover boasted of his many interventions with the economy. In his acceptance speech for the Presidential renomination he said:
<blockquote>''"We might have done nothing. That would have been utter ruin. Instead, we met the situation with proposals to private business and to the Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put that program in action."''<ref name="Hoover_nomination">Herbert Hoover. [http://americanhistory.about.com/library/docs/blhooverspeech1932.htm "Address Accepting the Republican Presidential Nomination"], August 11, 1932. The address was carried over the National Broadcasting Company and the Columbia Broadcasting System radio networks. This is a transcript taken from a sound recording of the address. Referenced 2010-06-20.</ref></blockquote>

After the election of [[Franklin D. Roosevelt|Roosevelt]], as the new Presidential term approached, dark rumors circulated about the radicalism of Roosevelt’s advisers, and of their willingness to go off the [[gold standard]]. Consequently, not only did gold "hoarding" by foreigners develop momentum, but even gold hoarding by domestic citizens. For the first time in the depression, American citizens were beginning to lose confidence in the dollar itself. The loss of confidence reached its apogee in February, 1933, the month before the Roosevelt inaugural. In that one month, the monetary gold stock fell by $173 million, and money in circulation increased by the phenomenal amount of $900 million, the reflection of domestic loss of confidence. Money in circulation totaled $5.4 billion at the end of January, and $6.3 billion by the end of February. $700 million of this increase was in Federal Reserve notes, and $140 million in gold coin and gold certificates.

The Federal Reserve did its best to combat this deflationary pull on bank reserves, but its inflationary measures only served to diminish confidence in the dollar still further. Total money supply fell from $64.72 to $61.61 billion over 1933, and all or more of this fall took place in the first half of the year. Bank failures skyrocketed during this period. The number of commercial bank failures increased from 1,453 in 1932 to 4,000 in 1933 (most of which took place in the first quarter).

The reaction to this growing insistence of the people on claiming their rightful, legally-owned property, was a series of attacks on property rights by state after state. One by one, states imposed "bank holidays" by fiat, permitting the banks to stay in business while refusing to pay virtually all of the just claims of their depositors. The bank holiday movement began in earnest with the proclamation of an eight-day holiday on February 14, 1933, by Governor William Comstock of Michigan. This precipitated the bank runs and deflation of the latter part of February and depositors began an intense scramble to take their money out of the banks. Many national banks, which had worked hard to keep themselves in an at least relatively sound position, did not want to use the special privilege of bank holiday, and had to be coerced into doing so.

By March 4, every state in the Union had declared a bank holiday, and the stage was set for President Roosevelt’s dramatic and illegal closing of all the banks. President Roosevelt closed down all the banks throughout the nation for an entire week, from March 6 to 13, with many banks remaining closed even longer. Restrictions against so-called "hoarding" were continued afterward, and much hoarded gold returned to the banks following a Federal Reserve threat to publish a list, for full public scorn, of the leading "gold hoarders."

Mr. Hoover left office in March, 1933, at the very depth of the greatest depression in American history. Production had fallen by more than one-half: industrial production had been at an index of 114 in August, 1929, and then fell to 54 by March, 1933. Unemployment was persisting at nearly 25 percent of the labor force, and gross national product had also fallen almost in half. Hardest hit was investment, especially business construction, the latter falling from about $8.7 billion in 1929 to $1.4 billion in 1933. The index of non-durable manufacturing production fell from 94 to 66 from August, 1929, to March, 1933—a decline of 30 percent; the index of durable manufactures fell from 140 to 32, in the same period, a decline of 77 percent. In durable goods industries (e.g., building, roads, metals, iron and steel, lumber, railroad, etc.) it was estimated that their total employment fell from 10 million in 1929 to 4 million in 1932–1933, while employment in consumer goods industries (e.g., food, farming, textiles, electricity, fuel, etc.) only fell from 15 million to 13 million in the same period. Stock prices (industrials) fell by 76 percent during the depression, wholesale prices fell by 30 percent, and the total money supply declined by one-sixth.

Wage rates were kept very high during the first two years of the depression. By 1932, however, with profits wiped out, the pressure became too great, and wage rates fell considerably. Total fall over the 1929–1933 period, however, was only 23 percent - less than the decline in wholesale prices. Therefore, real wage rates, for the workers still remaining employed, actually increased. While real average hourly earnings rose, actual hours worked in industry fell drastically during the depression. Weekly hours averaged over 48 in 1929, and fell to less than 32 by mid-1932. In no previous depression had hours worked fallen by more than 10 percent. This was a form of reduced employment caused by the high-wage policy. As a result, average weekly earnings fell by over 40 percent during the depression, and real weekly earnings fell by over 30 percent. But hardest hit were the unemployed, the percentage of whom rose to 25 percent by 1932–1933, and reached 47 percent in selected manufacturing industries. The fall in man-hours combined with the fall in average hourly earnings caused a truly precipitate drop in total factory payrolls - the base of the very "purchasing power" that the policy was supposed to sustain.<ref name="Rothbard_Hoover_End">[[Murray N. Rothbard]]. [http://mises.org/rothbard/agd.pdf "America’s Great Depression"] (pdf), 12. The Close of the Hoover Term, p. 321-337, referenced 2010-06-20.</ref>

==The New Deal==
{{Main|New Deal}}
===Roosevelt's Campaign===
Under the Democratic platform of 1932, which Franklin D. Roosevelt endorsed, contained several subsidies and regulations, but it hardly embraced the enormous expansion in federal power that FDR would achieve. The very first plank called for "an immediate and drastic reduction of governmental expenditures by abolishing useless commissions and offices, consolidating departments and bureaus, and eliminating extravagance to accomplish a saving of not less than twenty-five per cent in the cost of the Federal Government."<ref name="Woolley_Dem_1932">John T. Woolley and Gerhard Peters. [http://www.presidency.ucsb.edu/ws/index.php?pid=29595 "Democratic Party Platform of 1932"], June 27, 1932, from The American Presidency Project [online]. Referenced 2010-06-20.</ref> Subsequent planks demanded a balanced budget, a low tariff, the repeal of Prohibition, "a sound currency to be preserved at all hazards," "no interference in the internal affairs of other nations," and "the removal of government from all fields of private enterprise except where necessary to develop public works and natural resources in the common interest." The document concluded with a quote from Andrew Jackson: "equal rights to all; special privilege to none."

FDR's campaign reflected that platform. He accused Herbert Hoover of "reckless and extravagant spending," and he further denounced the Republican incumbent for believing "we ought to center control of everything in Washington as rapidly as possible." Even when he called for interventions in the economy, he generally couched his words in the old liberals' language of equal treatment rather than the new liberals' vision of enlightened central planning. In his famous Forgotten Man speech of April 1932 (see [http://newdeal.feri.org/speeches/1932c.htm transcript]), the Democratic candidate pointed to the wave of foreclosures sweeping the nation. Noting that Hoover had created a "two billion dollar fund...put at the disposal of the big banks, the railroads and the corporations of the Nation," FDR averred that the government should "provide at least as much assistance to the little fellow as it is now giving to the large banks and corporations." Once in office, the new administration did indeed repeal Prohibition, and it eventually lowered some trade barriers as well. By the time of FDR's death, the federal bureaucracy's power had grown so enormously that Hoover was widely remembered as the last apostle of laissez faire.<ref name="Walker_FDR">Jesse Walker. [http://reason.com/archives/2008/04/10/the-new-franklin-roosevelts "The New Franklin Roosevelts"], April 10, 2008. Referenced 2010-06-20.</ref>

Roosevelt both promised to abolish the disastrous policy of alcohol [[prohibition]] (which was probably as important as anything else in securing his election), and thundered against Hoover’s overspending:<ref name="Palmer_Welfare">Tom G. Palmer. [http://studentsforliberty.org/wp-content/uploads/2012/04/After-the-Welfare-State-PDF1.pdf "After the Welfare State"] (pdf). "Bismarck's Legacy", p. 41. Referenced 2013-01-15.</ref>
{{cquote|I accuse the present Administration of being the greatest spending Administration in peace times in all our history. It is an administration that has piled bureau on bureau, commission on commission, and has failed to anticipate the dire needs and the reduced earning power of the people. Bureaus and bureaucrats, commissions and commissioners have been retained at the expense of the taxpayer.

Now, I read in the past few days in the newspapers that the President is at work on a plan to consolidate and simplify the Federal bureaucracy. My friends, four long years ago, in the campaign of 1928, he, as a candidate, proposed to do this same thing. And today, once more a candidate, he is still proposing, and I leave you to draw your own inferences.

And on my part I ask you very simply to assign to me the task of reducing the annual operating expenses of your national Government.<ref name="Roosevelt_Agriculture">Franklin D. Roosevelt. [http://www.presidency.ucsb.edu/ws/index.php?pid=88392 "140 - Campaign Address on Agriculture and Tariffs at Sioux City, Iowa", September 29, 1932. Referenced 2013-01-15.</ref>}}

===Policy===
A principal feature of '''[[New Deal]]''' economic policy was government-sponsored industrial [[cartel]]s (the [[National Recovery Act]]); agricultural cartels (the [[Agricultural Adjustment Act]]); and labor cartels (the [[Norris – La Guardia Act|Norris-LaGuardia]] and [[National Labor Relations Act|Wagner Acts]]). The purpose of any cartel is to restrict output and raise prices. Lower levels of production leads to higher unemployment, which is exactly what the NRA and AAA did.

The NRA was almost identical to the Italian corporatist system that existed at the time. In Italy each trade or industrial group was organized into a government-controlled "corporative" association that had the power to plan production and pricing. In the U.S. the NRA organized each industry into federally-supervised trade associations called "Code Authorities" which could also limit output and set prices. The antitrust laws were explicitly set aside.

Over 700 industrial codes were created and were rigorously enforced by thousands of government code enforcers who, "could enter a man's factory, send him out, line up his employees, subject them to minute interrogation, take over his books on the instant." A hapless New Jersey tailor named Jack Magid became nationally famous after he was arrested, convicted, and imprisoned by the code police for the "crime" of pressing a suit of clothes for 35 cents when the Tailors' Code fixed the price at 40 cents. The NRA was ruled unconstitutional by the U.S. Supreme Court on May 27, 1935.<ref name="DiLorenzo_New_Deal">Thomas J. DiLorenzo. [http://mises.org/daily/55 "A New, New Deal"], Mises Daily, October 1998, referenced 2010-06-20.</ref> A study of the Act noted that "the licensing provision, giving the president the power of life or death over business enterprises, is the ultimate weapon of enforcement and the capstone of the powers granted to the president ... the most extraordinary extension of presidential power in American history." The Supreme Court's decision has noted, that 'fair competition' is not defined in the law and could be a convenient designation for whatever set of laws that is proposed and the president may approve. It ruled that NIRA was "an unconstitutional delegation of legislative power."

But after [[Judiciary Reorganization Bill of 1937|Roosevelt's court-packing threat]] of 1937, the justices succumbed to whatever creative definition of fairness that Congress or federal agencies chose to proclaim. For instance, in 1942, Congress passed the Emergency Price Control Act, which created an Office of Price Administration. The OPA had sweeping power to set or strike down prices in any industry or activity that it considered to be "defense-related" — a vague term that could have encompassed practically the entire national economy. The act contained no substantive guidelines for the administrator's decisions but merely required prices that "in his judgment will be generally fair and equitable."<ref name="Bovard_Cuttthroat">James Bovard. [http://www.fff.org/freedom/0499d.asp "Cutthroat Competition and Dead Chickens"], The Future of Freedom Foundation, April 1999. Referenced 2010-06-20.</ref>

===Effects===
The Roosevelt administration also orchestrated various price-fixing schemes in labor markets, principally for the benefit of unions. Payroll taxes to finance Social Security and Unemployment Insurance programs increased employers' wage bills even further, which also reduced the level of employment. According to an econometric estimate, government-mandated payroll cost increases added nearly 1.2 million people to the unemployment rolls by 1938.

The unemployment rate during the 1933-1940 period averaged about 18% and was as high as 28.3% in March of 1933. By the end of 1938, on the eve of World War II, the U.S. unemployment rate still hovered at just over 18 percent and was higher than it was in 1933, President Franklin D. Roosevelt's first year in office. This occurred despite (or rather, because of) six years of unprecedented levels of government intervention into the U.S. economy. The American recovery was slower than in most European nations; by 1937 Great Britain's unemployment rate had declined to 10.3 percent.

Herbert Hoover's [[Reconstruction Finance Corporation]] was greatly expanded by Roosevelt, but its effect was to make capital markets less efficient, thereby prolonging the Depression even further. As explained by RFC director Jesse Jones in his autobiography, ''Fifty Billion Dollars'', "The law specified that we should lend only where the borrower could not get the money from others on reasonable terms." That is, only to uncreditworthy borrowers. Guided by this directive, Jones and the RFC redirected billions of dollars in valuable capital to politically-connected but economically-questionable businesses. "We even loaned money to [the owners of] a drove of reindeer in Alaska," Jones boasted. The RFC was abolished in the 1955 under a cloud of corruption and scandal.

Roosevelt's public works programs may have been an economic failure, but they were a resounding political success as they provided virtually unlimited opportunities for political patronage. In 1939 a special U.S. Senate Committee on Campaign Expenditures investigated the programs and found that in many states workers were required to sign a pledge to vote Democratic and, in some cases, to make campaign contributions, as a condition of employment. Businesses that sold supplies to the government were in some places required to make campaign contributions to the Democratic party in return for the contracts. The New Deal was largely a legalized [[Extortion|shake-down]] operation.<ref name="DiLorenzo_New_Deal" /><ref name="Anderson_WPA">William L. Anderson. [http://mises.org/daily/3921 "The Curse of Good Government"], Mises Daily, December 2009, refers to the spending of New Deal money. Referenced 2010-06-20.</ref>

Roosevelt's billions, adroitly used, had broken down every political machine in America. The patronage they once lived on and the local money they once had to disburse to help the poor was trivial compared to the vast floods of money Roosevelt controlled. And no political boss could compete with him in any county in America in the distribution of money and jobs.<ref name="Flynn_Roosevelt">John T. Flynn. [http://mises.org/books/rooseveltmyth.pdf "The Roosevelt Myth"] (pdf), p. 65; 1948. Referenced 2010-06-21.</ref>

As Henry Morgenthau, the secretary of the treasury and one of the most powerful men in America, said before the Democrats on the House Ways and Means Committee in 1939<ref name="Folsom_spending">Burton Folsom Jr. [http://search.barnesandnoble.com/New-Deal-or-Raw-Deal/Burton-Folsom-Jr/e/9781416592228#EXC "New Deal or Raw Deal?: How FDR's Economic Legacy Has Damaged America"], an excerpt from the book. Referenced 2010-06-21.</ref>:

<blockquote>''"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong...somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises....I say after eight years of this Administration we have just as much unemployment as when we started....And an enormous debt to boot!"''</blockquote>

==During World War II==
The recovery from the Great Depression in the United States is usually associated with the advent of [[World War II]], a period when real GDP appeared to increase phenomenally and the rate of unemployment fell almost to zero. A more detailed view produces a different picture, with large government "make-work" programs at first and military employment during the war - but a very slow actual recovery. When using hours worked as measure of employment, only in 1941 total work hours exceed the 1929 value (by 3 percent), with the population vigorously engaged in mobilization for war.<ref name="Higgs_hours">Robert Higgs. [http://www.independent.org/pdf/tir/tir_14_01_8_higgs.pdf "A Revealing Window on the U.S. Economy in Depression and War - Hours Worked, 1929–1950"] (pdf), The Independent Review, v. 14, n.1, Summer 2009. Referenced 2010-06-21.</ref>

Private [[investment]] had fallen significantly. Gross private investment plunged from almost 16 percent of GDP in 1929 to less than 2 percent in 1932; recovered to 13 percent in 1937 before falling again in the recession of 1938; and as late as 1941 stood at only 14 percent. During the war years, private investment ratios ranged from 3 to 6 percent. From 1946 through 1950 they ranged from 14 to 19 percent and averaged 16 percent — the same as in 1929. In 1929, when gross private investment was $16.2 billion, net investment was $8.3 billion. Net investment fell precipitously to $2.3 billion in 1930 and then became negative during each of the following five years. For the eleven-year period of 1930 to 1940, net private investment totaled minus $3.1 billion. Only in 1941 did net private investment ($9.7 billion) exceed the 1929 amount. During the 1930s, private investment remained at depths never plumbed in any other decade for which data exist.

One hypothesis is, that the New Deal prolonged the Great Depression by creating an extraordinarily high degree of '''[[regime uncertainty]]''' for the investors. Given the unparalleled outpouring of business-threatening laws, regulations, and court decisions, the oft-stated hostility of President Roosevelt and his lieutenants toward investors as a class, the political climate could hardly have failed to discourage some investors from making long-term commitments. There also exists a great deal of direct evidence that investors felt extraordinarily uncertain about the future of the property-rights regime between 1935 and 1941. Historians have recorded countless statements by contemporaries to that effect; in the years just before the war most business executives expected substantial weakening of private property rights ranging up to "complete economic dictatorship". The possibility that the United States might undergo an extreme regime shift seemed to many investors in the late 1930s and early 1940s not only possible but likely.<ref name="Higgs_investment">Robert Higgs. [http://www.independent.org/pdf/tir/tir_01_4_higgs.pdf "Regime Uncertainty - Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War"] (pdf), The Independent Review, Vol, I, No. 4, Spring 1997. Referenced 2010-06-21.</ref><ref name="Higgs_China">Robert Higgs. [http://www.independent.org/blog/index.php?p=2620 "Regime Uncertainty in the 1930s: A New Deal Insider’s Account"], ''The Beacon'', blog of the The Independent Institute, Jun 29, 2009. Referenced 2010-08-15.</ref>

===Price controls===
The [[Office of Price Administration]] (OPA) controlled virtually all prices. Federal [[price controls]] weren’t restricted to goods directly related to the war effort, like armor plate or chemicals needed for explosives, but were essentially universal. All important consumer goods were price controlled. Rents were especially tightly controlled. All told, about 650 separate price controls were in effect during the war years.

Moreover, these controls were not mere requests, but were strictly enforced. Failure to obey the price regulations was a crime. Between February 1941 and May 1947, the OPA instituted 259,966 sanctions on violators of price regulations, including 13,999 Federal criminal prosecutions and 5,127 local criminal prosecutions.<ref name="Rockoff_Drastic">Hugh Rockoff, "Drastic Measures: A History of Wage and Price Controls in the United States", New York: Cambridge University Press, 1984, p. 95, 143, 163. See [http://www.intellectualtakeout.org/library/books/drastic-measures-history-wage-and-price-controls-united-states preview]. Referenced 2012-12-01.</ref> During the period 1941-1945, the federal government seized under Presidential authority (and, in effect, temporarily nationalized) 73 industrial plants.{{Fact|Refers to "John L. Blackman, Jr., Presidential Seizure in Labor Disputes (Cambridge: Harvard University Press, 1967), pp. 259-76.", but I can't find this one online and hence confirm.}}

There was strong public support for the war against the Axis powers, so most people were predisposed to accept any measures the federal government declared to be essential for ultimate victory. Even during the war, though, public support for price controls was lukewarm. Many people had trouble with the idea that granting Federal bureaucrats power to set prices was necessary for military victory. For example, in November 1943, when patriotism was running very high, a Fortune magazine poll found that only 29.4 percent of respondents thought that the Office of Price Administration was doing a good job; 30.8 percent rated its job as "poor," 24 percent "medium," and 15.8 percent didn’t know. In other words, at the height of the Second World War, over 70 percent of respondents did not think that the OPA was doing a good job.<ref name="Rockoff_Drastic" />

Additional evidence of weak public support for price controls was the thriving black market for price-controlled and rationed goods. Naturally, because open violation of price regulations was illegal, "official" data on the size and scope of this activity is hard to come by. But there are indications that the black market was substantial. For example, in 1944 alone, the OPA found 338,029 separate violations of its regulations, and prosecuted 9,260 people (the remainder of the cases receiving some lesser penalty).<ref name="Rockoff_Drastic" /> Food, clothing, gasoline, consumer durables, and even apartments were readily available on the black market.<ref name="Anderson_Revolt">Gary Anderson. [http://www.fee.org/the_freeman/detail/the-1946-voter-revolt-against-government-regulation/ "The 1946 Voter Revolt Against Government Regulation"] ([https://docs.google.com/open?id=1SBJ2t_vwWhcb3h1bqWRrBNec1VZDpq6_u4F9YCESwyPlQrahsysFdCxMvNI9 pdf preview]), ''The Freeman'', February 1991. Referenced 2012-12-01.</ref>

==After-war recovery==
===Predictions===
It was widely believed during the latter part of World War II that substantial unemployment would develop after the war.<ref name="Vedder_Depression">Richard K. Vedder and Lowell Gallaway. [http://mises.org/journals/rae/pdf/RAE5_2_1.pdf "The Great Depression of 1946"] (pdf), ''The Review of Austrian Economics'', Vol. 5, No. 2 (1991): 3-32. ISSN 0889-3047. Referenced 2011-08-21.</ref> A review of forecasts by Michael Sapir confirmed the fact that many economists believed a severe recession or depression was coming. The impact of curtailed government outlays on the levels of income and employment in the private economy should be drastic, with projections speaking of over eight millions unemployed. Actual developments have been drastically different and unemployment was not higher than 2.75 million.<ref name="Sapir_Forecasts">Michael Sapir. [http://www.nber.org/chapters/c5709.pdf Part IV: Review of Economic Forecasts for the Transition Period] (pdf), chapter from the book ''Studies in Income and Wealth'', published 1949. ''National Bureau of Economic Research'', [http://ideas.repec.org/h/nbr/nberch/5709.html summary page]. 2011-08-21.</ref>

The thought of a rapid reduction in government military spending provided nightmares to some Keynesians. Hansen, writing in 1943, said: "When the war is over, the government cannot just disband the Army, close down munitions factories, stop building ships, and remove all economic controls." Yet that is precisely what the government did (although it took a year to remove most controls).

Despite the pessimistic concerns of economists and politicians, most of the news around the time of the Japanese surrender was upbeat with regards to the reconversion process. The faster-than-expected discharge of soldiers led some forecasters to revise their estimates of unemployment upward. For example, on September 1 ''Business Week'' predicted GNP in 1946 would be 20 percent below the 1944 levels and that unemployment would peak "closer to 9,000,000 than 8,000,000." The 9,000,000 figure represented about 14 percent of the projected civilian labor force. By end of September 1945, ''Business Week'' was revising its estimate of unemployment for the end of 1945 down to 4.0 to 4.5 million from 6.0 million.

Still, even in December 1945 economists were predicting that "depression is just around the corner." Robert Nathan predicted six million unemployed by the spring of 1946, implying an unemployment rate of 10 percent. Veteran Department of Labor economist Isidore Lubin decided, in Business Week's opinion, to "play in safe," predicting a wide range; six to nine million unemployed.<ref name="Vedder_Depression" />

===Recovery===
Unemployment rates remained below four percent, far below the normal peacetime rate in the twentieth century, either before or after 1946. The substantial price controls which were in effect in 1944, were essentially abandoned by 1947.

By the end of the first quarter of 1946, the process of reconversion was largely completed. Nearly seven million persons had left the armed forces, and government spending had fallen well over 90 percent of the way from the wartime peak to what would be the postwar low in 1947.

The federal budget deficit on a national income accounts basis in 1944 was some $54.5 billion, equal to 25.8 percent of GNP. That would be the equivalent in 1990 (in relation to GNP) of a deficit of about $1,400 billion, or 5.7 percent of GNP. By 1947, the federal budget was in ''surplus'' by $13.4 billion, or 5.7 percent of GNP. The equivalent would be well over a $300 billion surplus. Among other things, the government in pursuing this extraordinary contractionary fiscal policy fired roughly 20 percent of the total labor force. All of this had little impact on unemployment.

The prices rose during the war (1941-1946) by an estimated 46 percent. By contrast, the prices rose an estimated 13 percent from 1945 to 1948, which is still a substantial inflation rate, but far less than during the war.<ref name="Vedder_Depression" />

===Explanation===
Within a year of the war's end, it was clear that the pessimistic predictions were spectacularly wrong. The postwar prosperity was attributed to "pent-up demand", for goods that couldn't be obtained during the war. However, consumption increased only modestly. From the peak of military activity in the second quarter of 1945 to the trough of the mild downturn in the first quarter of 1946, government purchases of goods and services fell an extraordinary 67.5 percent, or $65.7 billion. Over the same period, consumption spending rose but $14 billion, barely 20 percent of the fall in government spending. Investment spending rose a more robust $21.6 billion, and net exports by $9.8 billion, but collectively the increases in demand fell about $20 billion short of decline in government spending, leading money GNP to fall a rather sharp 10 percent.

Instead, labor supply and real wages have been adjusted downward. For example, millions of women voluntarily decided to withdraw from the labor force and working hours have been commonly reduced. Rising profits, and the anticipation of future increases, stimulated investment spending (the only truly robust major component of aggregate demand). Relative price adjustments brought about what Keyensians perceived to be an increase in aggregate demand, rather than the other way around.<ref name="Vedder_Depression" />

==See also==
* ''[[America's Great Depression]]''
* ''[[The Politically Incorrect Guide to the Great Depression and the New Deal]]''
* [[Austrian Business Cycle Theory]]

==References==
{{Reflist|2}}

==Links==
* Literature
** [http://www.lewrockwell.com/gordon/gordon-gd-biblio.html Bibliography on the Great Depression] by David Gordon, 2009
** [http://mises.org/daily/3941 The Myth that Is FDR] by Garet Garrett, January 2010
** [http://mises.org/daily/4350 Did Hoover Really Slash Spending?] by Robert P. Murphy, May 2010
** [http://www.ameshistoricalsociety.org/exhibits/events/rationing.htm World War II Rationing], collected by the Ames Historical Society and the [[Wikipedia:Rationing|Wikipedia]] article on the same
** [http://www.mackinac.org/article.aspx?ID=4028 Free Markets or Free Lunches?] by Lawrence W. Reed, January 1998
** [http://www.mackinac.org/article.aspx?ID=4013 Great Myths of the Great Depression] by Lawrence W. Reed, January 1998
** [http://mises.org/daily/3778 The Gold Standard and the Great Depression] by Robert P. Murphy, October 2009
** [http://mises.org/daily/1623 The New Deal Debunked (again)] by Thomas J. DiLorenzo, September 2004
** [http://www.independent.org/newsroom/article.asp?id=138 Wartime Prosperity? A Reassessment of the U.S. Economy in the 1940s] by Robert Higgs, March 1992
** [http://www.independent.org/publications/article.asp?id=109 From Central Planning to the Market] by Robert Higgs, 1999, an extensive article about the Depression and the recovery after war
** [http://mises.org/daily/3661 My Summer Reading: Hyper-Inflation in Weimar Germany] by Ralph Fucetola, September 2009 (notes that the crisis was seen as insignificant at the beginning)
** [http://mises.org/journals/qjae/pdf/qjae11_3_5.pdf The Great Depression: Mises vs. Fisher] (pdf) by Mark Thornton, November 2008
** [http://www.thefreemanonline.org/featured/the-depression-youve-never-heard-of-1920-1921/ The Depression You’ve Never Heard Of: 1920-1921] by Robert P. Murphy, December 2009
** [http://mises.org/daily/3866 Reliving the Crash of '29] by Murray N. Rothbard, first published in November 1979
** [http://mises.org/daily/4039 Dangerous Lessons of 1937] by Jonathan M. Finegold Catalan, February 2010
** [http://mises.org/daily/4797 The Real Reason for FDR's Popularity] by Mark Thornton, October 2010
** [http://mises.org/daily/5215/Is-Budget-Austerity-ModernDay-Hooverism Is Budget Austerity Modern-Day Hooverism?] by Robert P. Murphy, April 2011
** [http://mises.org/daily/3515 "The Great Depression"] by Hans F. Sennholz, October 1969
** [http://mises.org/daily/2845 "Did Capitalism Cause the Great Depression?"] by Murray N. Rothbard, November 1959
** [http://www.econlib.org/library/Columns/y2009/Martinezgreatdepression.html# Latin America and the Great Depression] by Ibsen Martinez, April 2009
** [http://mises.org/daily/4896/Hoover-Bush-and-Great-Depressions Hoover, Bush, and Great Depressions] by Mark Thornton, January 2011
** {{md|6429|FDR: Sowing the Seeds of Chaos|David Stockman|May 2013}} (excerpt from ''The Great Deformation: The Corruption of Capitalism in America'')

* Other media
** [http://www.youtube.com/watch?v=7QLoeehMw0w Top Three Myths about the Great Depression and the New Deal] (video) by Stephen Davies, June 2011

* {{wplink}}

[[Category:History of the United States]]
[[Category:Financial crises]]

The Politically Incorrect Guide to the Great Depression and the New Deal

2013-10-26T13:51:55Z

John James: /* Links */ added

{{Infobox book
| name = The Politically Incorrect Guide to the Great Depression and the New Deal
|italic title = force
| title_orig =
| translator =
| image = [[File:The Politically Incorrect Guide to the Great Depression and the New Deal cover.JPG|175px]]
| image_caption =
| author = [[Robert P. Murphy]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Economic history]], [[Economics]]
| genre = [[Non-fiction]]
| publisher = Regnery Publishing
| pub_date = 2009
| english_pub_date =
| media_type = Print
| pages = 198 p.
| isbn = 9781596980969
| oclc = 315239348
| dewey =
| congress =
| preceded_by =
| followed_by =
}}
'''''The Politically Incorrect Guide to the Great Depression and the New Deal''''' is a book by American economist [[Robert P. Murphy|Bob Murphy]]. The text provides irrefutable evidence that not only did [[government interference]] with the [[market]] cause the [[Great Depression]] (and our current economic collapse), but that [[Herbert Hoover]]'s and [[Franklin D. Roosevelt]]'s big government policies (generalized as "The [[New Deal]]") afterward made it much longer and much worse.

==See also==
* ''[[America's Great Depression]]''
* ''[[The Great Depression]]'' (book)

==Links==
{{store|http://mises.org/store/Politically-Incorrect-Guide-to-the-Great-Depression-and-the-New-Deal-P580.aspx}}

* Articles, essays and reviews
** {{md|3453|I Wrote the Guide to Extend Rothbard|[[Robert P. Murphy]]|May 2009}}
** {{md|3426|The Fake History of the Depression|[[Robert P. Murphy]]|April 2009}}
** Mises Review: [http://mises.org/misesreview_detail.aspx?control=357 "Politically Incorrect Guide to..."] by [[David Gordon]], Summer 2009 (republished as Mises Daily [http://mises.org/daily/3448 here])
** {{md|3500|Murphy Sets the Record Straight|George F. Smith|June 2009}}
** {{md|3858|Murphy on the Great Confusion|Gennady Stolyarov II|November 2009}}
** {{md|3778|The Gold Standard and the Great Depression|Robert P. Murphy|October 2009}}
** {{md|3349|What You Must Read About the Great Depression|David Gordon|February 2009}}

* {{wplink}}

{{stub}}

{{DEFAULTSORT:Politically Incorrect Guide to the Great Depression and the New Deal, The}}
[[category:Writings of Robert P. Murphy]]

Franklin Delano Roosevelt

2013-10-26T13:39:37Z

John James: added see also

Judge Andrew P. Napolitano

2013-08-29T06:02:35Z

John James: John James moved page Judge Andrew P. Napolitano to Andrew Napolitano over redirect: revert - Honorifics are not to be included in article titles (not to mention "judge" is a statist title anyway)

#REDIRECT [[Andrew Napolitano]]

Andrew P. Napolitano

2013-08-29T06:02:35Z

[[File:Napolitano_andrew.png|thumb|right|180px|Judge Andrew Napolitano]]Judge '''Andrew P. Napolitano''' is Distinguished Scholar in Law and Jurisprudence at the [[Mises Institute]], Distinguished Visiting Professor of Law at Brooklyn Law School, and Senior Judicial Analyst at [[Fox News]]. He is a graduate of Princeton University and the University of Notre Dame Law School. He is the youngest life-tenured Superior Court judge in the history of the State of New Jersey. He sat on the bench from 1987 to 1995, when he presided over more than 150 jury trials and thousands of motions, sentencings, and hearings. Judge Napolitano taught constitutional law and jurisprudence at Delaware Law School for two years and at Seton Hall Law School for 11 years. He was often chosen by the students as their most outstanding professor. He returned to private practice in 1995, and began television work in the same year. As Fox News’ Senior Judicial Analyst since 1998, Judge Napolitano broadcasts nationwide on the Fox News Channel throughout the day, Monday through Friday. He is nationally known for watching and reporting on the government as it takes liberty and property.

Judge Napolitano lectures nationally on the [[U.S. Constitution]], the rule of law, civil liberties in wartime, and human freedom. He has been published in ''The New York Times'', ''The Wall Street Journal'', ''The Los Angeles Times'', and numerous other publications. His weekly newspaper column is seen by millions every week. The Judge is the author of seven books on the U.S. Constitution, two of which have been New York Times Best Sellers. His most recent book is ''The Freedom Answer Book: How Government Is Taking Away Your Constitutional Freedoms''.{{Fact}}

==Links==
* [http://www.judgenap.com Judge Andrew P. Napolitano website]
* [http://freedomwatchonfox.com Freedom Watch With the Judge]
* [http://www.foxnews.com/on-air/personalities/andrew-p-napolitano/bio/ Judge Andew P. Napolitano's bio] and [http://www.foxnews.com/archive/author/judge-andrew-p-napolitano/index.html archive]] at foxnews.com
* {{IMDb name|1007732}}
* [http://www.judgenapolitano.com Draft Judge Andrew P. Napolitano website]
* {{wplink|Andrew Napolitano}} on Wikipedia

[[Category:Intellectuals]]

David Gordon

2013-08-16T08:18:24Z

John James: wikify

[[File:David Gordon.jpg|thumb|right|David Gordon]]
'''David Gordon''' is a philosopher, historian, and senior fellow at the [[Ludwig von Mises Institute]]. He was educated at UCLA, where he earned his PhD in intellectual history. He is the author of [[Resurrecting Marx|''Resurrecting Marx: The Analytical Marxists on Exploitation, Freedom, and Justice'']]; ''[[The Philosophical Origins of Austrian Economics]]''; ''[[An Introduction to Economic Reasoning]]''; and ''[[Critics of Marx]]''. He is also editor of ''[[Secession, State, and Liberty]]'', ''[[The Turgot Collection]]'' and co-editor of H.B. Acton's ''[[Morals of Markets and Other Essays]]''.

Dr. Gordon is the editor of ''[[The Mises Review]]'', and a contributor to such journals as ''[[Analysis]]'', ''[[The International Philosophic Quarterly]]'', ''[[The Journal of Libertarian Studies]]'', and ''[[The Quarterly Journal of Austrian Economics]]''.

==Links==
{{Contact faculty|dgordon@mises.org}}
*[http://mises.org/fellow.aspx?id=5 Homepage] on [[Mises Institute|Mises.org]]
** [http://mises.org/media.aspx?action=author&ID=64 Media archive]
** [http://mises.org/literature.aspx?action=author&Id=64 Literature archive]
** [http://mises.org/daily/author/64/David-Gordon?AuthorId=64 Daily Article archive]
** [http://blog.mises.org/13768/ Faculty Spotlight Interview: David Gordon]

*[http://mises.org/periodical.aspx?Id=2 ''The Mises Review'' archives] on Mises.org

{{DEFAULTSORT:Gordon, David}}
[[Category:Libertarians]]
[[Category:Philosophers]]

Thomas DiLorenzo

2013-06-26T09:00:07Z

John James: /* Publications */ added

{{Infobox economist
| name = Thomas J. DiLorenzo
| school_tradition = [[Austrian School]]
| color = firebrick
| image = Thomas DiLorenzo.jpeg
| image_size =
| caption = Thomas DiLorenzo at [[Conservative Political Action Conference|CPAC]] in February 2010.
| birth_date = {{Birth date and age|1954|08|08}}
| birth_place =
| death_date =
| death_place =
| nationality = [[American]]
| institution = [[Loyola University Maryland]]
| field = [[Economic history]], [[American history]]
| alma_mater = [[Virginia Tech]] ([[Doctor of Philosophy|PhD]]) [[Westminster College]] ([[Bachelor of Arts|B.A.]])
| opposed = [[Harry V. Jaffa]]
| influences = [[Henry Hazlitt]], [[John T. Flynn]]
| influenced =
| contributions =
| awards =
| signature = 
| repec_prefix = | repec_id =
}}

'''Thomas James DiLorenzo''' is professor of economics at [http://www.loyola.edu/ Loyola University Maryland] and a senior fellow at the [[Ludwig von Mises Institute]]. He is the author or co-author of ten books, on subjects such as antitrust, group-interest politics, and interventionism generally. He is professor of economics in the Sellinger School of Business and Management at Loyola
University Maryland and a member of the Senior Faculty of the Mises Institute. He holds a Ph.D. in economics from Virginia Polytechnic Institute and a B.A. in economics from Westminster College. His major research and publication interests are economic history, industrial organization, and political economy. He is the author or coauthor of 13 books, including The Real Lincoln, How Capitalism Saved America: The Untold History of Our Country, From the Pilgrims to the Present, Lincoln Unmasked, Hamilton’s Curse: How Jefferson’s Arch Enemy Betrayed the American Revolution and What it Means for Americans Today, and Organized Crime: The Unvarnished Truth About Government. He is widely published in the economics literature, and in popular publications and newspapers. He is a columnist for the website LewRockwell.com, has appeared on CNN, Fox News Channel, MSNBC, and has been a guest on the Rush Limbaugh Radio Show.

==Publications==

DiLorenzo has authored at least ten books, including:

*''[[Organized Crime (book)|Organized Crime: The Unvarnished Truth About Government]]'' (2012)

* ''[[Hamilton's Curse|Hamilton's Curse: How Jefferson's Arch Enemy Betrayed the American Revolution – and What It Means for Americans Today]]'' (2008)

* ''[[Lincoln Unmasked|Lincoln Unmasked: What You're Not Supposed To Know about Dishonest Abe]]'' (2006)

* ''[[How Capitalism Saved America|How Capitalism Saved America: The Untold History of Our Country, from the Pilgrims to the Present]]'' (2004)

* ''[[The Real Lincoln|The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War]]'' (2003)

* ''From Pathology to Politics: Public Health in America'' (2000)

* ''The Food and Drink Police: America's Nannies, Busybodies, and Petty Tyrants'' (1998)

* ''CancerScam: The Diversion of Federal Cancer Funds for Politics'' (1997)

==Links==
{{Contact faculty|tdilo@aol.com}}
*[http://www.mises.org/DiLorenzo Homepage] on [[Mises Institute|Mises.org]]
** [http://mises.org/media/authors/425/DiLorenzo Media archive]
** [http://mises.org/literature.aspx?action=author&Id=425 Literature archive]
** [http://mises.org/articles.aspx?AuthorId=425 Daily Article archive]
** [http://blog.mises.org/13581/faculty-spotlight-interview-thomas-dilorenzo/ Faculty Spotlight Interview]

* [http://www.independent.org/aboutus/person_detail.asp?id=544 Thomas DiLorenzo] at [[The Independent Institute]]
* [http://www.lewrockwell.com/dilorenzo/dilorenzo-arch.html Thomas DiLorenzo] at [[LewRockwell.com]]
* [http://www.independent.org/events/transcript.asp?eventID=9 The Real Abraham Lincoln] - a debate between Thomas DiLorenzo and [[Harry V. Jaffa]]
* [http://www.claremont.org/writings/crb/Spring2002/krannawitter.html Critical review of ''The Real Lincoln''] by [[Thomas Krannawitter]] of the [[Claremont Institute]]
* [http://www.lewrockwell.com/orig/wilson7.html DiLorenzo and his Critics] by [[Clyde N. Wilson]]
* [http://www.lewrockwell.com/dilorenzo/dilorenzo68.html Interview with Thomas DiLorenzo] in the " [[Southern Partisan]]".

* Other media
** [http://www.c-spanvideo.org/program/204650-1 Q & A with Thomas DiLorenzo (video)] on C-SPAN discussing his two books about Abraham Lincoln.
** [http://www.youtube.com/view_play_list?p=3C06A2101B695E86 The 2006 Steven Berger Seminar: Thomas DiLorenzo (10 videos)]
** [http://www.youtube.com/watch?v=p-5_pv8csMY DiLorenzo on Morning Joe speaking on Hamilton's Curse]
** [http://media.mises.org/mp3/interviews/DiLorenzo_10-22-2008.mp3 DiLorenzo on "Wake up Monterrey, with Mark Carbonaro"] October 2008

*{{wplink}}

{{Austrian economists}}

{{Persondata 
| NAME =Dilorenzo, Thomas
| ALTERNATIVE NAMES =
| SHORT DESCRIPTION =
| DATE OF BIRTH =1954-08-08
| PLACE OF BIRTH =
| DATE OF DEATH =
| PLACE OF DEATH =
}}

{{Stub}}
{{DEFAULTSORT:DiLorenzo, Thomas}}
[[Category:Economists]]
[[Category:Historians]]
[[Category:Anarcho-capitalists]]

Walter Block

2013-05-27T16:58:52Z

John James: punctuation

[[File:Walter_block-teaching.jpg|thumb|right|Walter Block]]

{{Quote|"If it moves, you should privatise it; and if it doesn't move, you should privatise it. Since everything either moves or doesn't move, we should privatise everything."|Walter Block}}

'''Walter Edward Block''' (born 21 August 1941) is a [[free market]] economist and [[anarcho-capitalist]] associated with the [[Austrian School|Austrian School of economics]]. He earned his PhD in Economics at [[Columbia University]]. He is an author, editor, and co-editor of many books, including ''[[Defending the Undefendable]]; Labor Economics from a Free Market Perspective; Lexicon of Economic Thought; Economic Freedom of the World 1975-1995; Rent Control: Myths and Realities; Discrimination, Affirmative Action, and Equal Opportunity; Theology, Third Word Development and Economic Justice; Man, Economy, and Liberty: Essays in Honor of Murray N. Rothbard; Religion, Econonomics, and Social Thought; and Economic Freedom: Toward a Theory of Measurement''.

Dr. Block has written almost 500 articles for various scholarly refereed journals, and thousands of essays for magazines and newspapers, and is a contributor to such journals as ''The Review of Austrian Economics, Journal of Libertarian Studies, The Journal of Labor Economics, Cultural Dynamics'', and the ''Quarterly Journal of Austrian Economics''. He is currently a professor and chair of economics, college of business administration, at [[Loyola University]].

==Bibliography==
=== Books (as author) ===
*''[[Defending the Undefendable]]'' (1976; translated into Chinese, Dutch, French, Italian, Portuguese, and Romanian languages) ISBN 0-930073-05-3
*''A Response to the Framework Document for Amending the [[Combines Investigation Act]]'' (1982)
*''Focus on Economics and the Canadian Bishops'' (1983)
*''Focus on Employment Equity: A Critique of the Abella Royal Commission on Equality in Employment'' (with [[Michael A. Walker]]; 1985)
*''The U.S. Bishops and Their Critics: An Economic and Ethical Perspective'' (1986)
*''Lexicon of Economic Thought'' (with Michael A. Walker; 1988)
*''Economic Freedom of the World, 1975-1995'' (with [[James Gwartney]], [[Robert Lawson (economist)|Robert Lawson]]; 1996)
*''Labor Economics from a Free Market Perspective: Employing the Unemployable'' (2009)
*''[[The Privatization of Roads and Highways|The Privatization of Roads and Highways: Human and Economic Factors]]'' (2006)
*''Differing Worldviews: Two Scholars Argue Cooperatively about Justice Education'' (with Four Arrows; 2010)
*''Building Blocks for Liberty'' (2010)
*''Yes to Ron Paul and Liberty'' (2012)
*''Essays in Austrian Economics'' (with William Barnett; 2012)
*''The Case for Discrimination'' (2012)

=== Books (as editor) ===
*''Zoning: Its Costs and Relevance for the 1980s'' (Ed.; 1980)
*''Rent Control: Myths & Realities'' (Ed. with [[Edgar Olsen]]; 1981)
*''Discrimination, Affirmative Action and Equal Opportunity'' (Ed. with [[Michael A. Walker]]; 1982)
*''Taxation: An International Perspective'' (Ed. with [[Michael A. Walker]]; 1984)
*''Economics and the Environment: A Reconciliation'' (Ed.; 1985; translated into Portuguese 1992) ISBN 0-88975-067-X
*''Morality of the Market: Religious and Economic Perspectives'' (Ed. with [[Geoffrey Brennan]], [[Kenneth Elzinga]]; 1985)
*''Theology, Third World Development and Economic Justice'' (Ed. with [[Donald Shaw (academic)|Donald Shaw]]; 1985)
*''Reaction: The New Combines Investigation Act'' (Ed.; 1986)
*''Religion, Economics & Social Thought'' (Ed. with [[Irving Hexham]]; 1986)
*''[http://www.mises.org/books/maneconomyliberty.pdf Man, Economy and Liberty: Essays in Honor of Murray N. Rothbard]'' (Ed. with [[Lew Rockwell]]; 1988)
*''Breaking the Shackles; the Economics of Deregulation: A Comparison of U.S. and Canadian Experience'' (Ed. with [[George Lermer]]; 1991)
*''Economic Freedom: Toward a Theory of Measurement'' (Ed.; 1991)
*''Libertarian Autobiographies'' (Ed.; forthcoming)

===Articles===
*"Katrina and the Future of New Orleans" [http://www.telospress.com Telos] 139, Summer 2007.
*[http://mises.org/journals/jls/12_2/12_2_6.pdf "Hayek's Road to Serfdom"]. [[Journal of Libertarian Studies]] ([[Center for Libertarian Studies]]) 12 (2): 339–365 (1996).

== Links ==
{{Contact faculty|wblock@loyno.edu}}
*[http://www.walterblock.com WalterBlock.com]
*[http://www.mises.org/Block Homepage] on [[Mises Institute|Mises.org]]
*[http://mises.org/senfaculty/block-cv.pdf Vita] at Mises.org
*[http://mises.org/literature.aspx?action=author&Id=443 Literature archive] at Mises.org.
*[http://www.mises.org/media.aspx?action=showname&ID=443 Media archive] at Mises.org.

{{DEFAULTSORT:Block, Walter}}
[[Category:Anarcho-capitalists]]
[[Category:Economists]]
[[Category:Political theorists]]
[[Category:Mises Institute staff members]]

Help:Document transcoding

2013-05-04T11:52:01Z

John James: /* Tools and links */ added

This is a work in progress, used to build an online resource for tools and tips in document transcoding.

===Step 1, getting Finereader prepared===
* English; French; German
* façade
* B&W
* Tools - Options - Scan/Open - Do not read and analyze acquired page images
* Tools - Options - Read - Thorough Reading
* Tools - Options - Save - PDF - Use Mixed Raster Content, Enable Tagged PDF, Best Quality
* FB2/EPUB - Title, Author, Best Quality

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John James: just a start

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John James: /* Links */ added

Bibliography of Hans-Hermann Hoppe

2013-04-28T00:48:31Z

John James: cat

Works by '''[[Hans-Hermann Hoppe]]''':

==Books (as author)==
*[[Democracy: The God That Failed]] (New Brunswick, NJ: Transaction, 2001). Italian translation, Milano, Italy, Librilibri, 2003; German edition, Demokratie. Der Gott, Der Keiner Ist, Manuscriptum, Leipzig, 2003; Spanish translation, Union Editorial, Madrid, forthcoming 2004. Translated into Korean. Further info. " Vorwort zur deutschen Ausgabe" (Preface to German edition); English translation of Preface to German edition; Greek translation of Introduction.

*Abasso la democrazia. L' etica libertaria e la crisi dello stato(Milano: Leonardo Facco Editore, 2000).

*[[Economic Science and the Austrian Method]] (Auburn, Al.: Ludwig von Mises Institute, 1995).

*[[The Economics and Ethics of Private Property]]. Studies in Political Economy and Philosophy(Boston: Kluwer Academic Publishers, 1993). Info. Chapter 10: On the Ultimate Justification of the Ethics of Private Property ; Appendix: Four Critical Replies ; 2nd. enlarged edition (Auburn, AL: Ludwig von Mises Institute, 2004) (forthcoming). French translations of chapter 8 and chapter 11.

*[[A Theory of Socialism and Capitalism]]. Economics, Politics, and Ethics (Boston: Kluwer Academic Publishers, 1989). Info. Korean Translation, Seoul, South Korea (Korea Economic Research Institute), 1991. Romanian translation (enlarged edition), Bucharest, Romania (Nemira),1999. French translations: of extract: L'egalite des Chances, chapter 4, chapter 5, and chapter 6.

*Eigentum, Anarchie und Staat. Studien zur Theorie des Kapitalismus (Opladen: Westdeutscher Verlag, 1987).

*Kritik der kausalwissenschaftlichen Sozialforschung. Untersuchungen zur Grundlegung von Soziologie und Ökonomie(Opladen: Westdeutscher Verlag, 1983).

*Handeln und Erkennen. Zur Kritik des Empirismus am Beispiel der Philosophie David Humes(Bern: Peter Lang, 1976).

==Books (as editor)==
*[[The Myth of National Defense|The Myth of National Defense: Essays in the Theory and History of Security Production]] (Auburn, AL: Ludwig von Mises Institute, 2003) (Danish translation of Introduction).

==Monographs and Pamphlets==
*Democrazia: Il dio che ha fallito, Torino: CIDAS, 2002

*The Private Production of Defense (Auburn, Al.: Ludwig von Mises Institute, Essays in Political Economy Series, 1998); see also The Private Production of Defense,"Journal of Libertarian Studies, Vol. 14, no. 1, 1999 (below).Translated into Czech (forthcoming, 1999); Italian translation in: Elites, Vol. 3, no. 4, 1999; Romanian translation.

*Natural Elites, Intellectuals, and the State (Auburn, Al.: Ludwig von Mises Institute, 1995). Translated into Romanian in: Cotidianul/supplement Alternativa, August 2, 1996. French translation; Russian translation by Grigory Sapov; Czech translation; Danish translation by David B. Karsbøl; Polish translation ; Chinese translation; Italian translation .

*L'Europe De L'Apres-Communisme: Emigration, Integration Et Balkanisation, with a Foreword by Henri Lepage (Paris: Institut Euro 92, 1993).
*Desocialization in a United Germany(Auburn, Al.: Ludwig von Mises Institute, 1991)
*Economic Science and the Austrian Method (Auburn, Ala: Ludwig von Mises Institute, 1995)
*Praxeology and Economic Science(Auburn, Al.: Ludwig von Mises Institute, 1988).

==Chapters in Books==
*The Ethics and Economics of Private Property, in the Elgar Companion to the Economics of Private Property, Ed. Enrico Colombatto (London: Edward Elgar, 2004) (text version on LewRockwell.com) ( Chinese translation)
*"The Impossibility of Limited Government and the Prospects for a Second American Revolution," in: John Denson, ed., Reassessing the Presidency. The Rise of the Executive State and the Decline of Freedom (Auburn, AL: Ludwig von Mises Institute, 2001); translated into Italian in E. Colombatto & A. Mingardi, eds., Il Corragio della liberta. Saggi in onore di Sergio Ricossa, Rubbettino, 2002
*"Friedrichvon Wieser und die moderneÖsterreichische Schule der National ökonomie," in: Herbert Hax, ed., Friedrich von Wieser. Vademecum zu einemKlassiker der Nationalökonomie (Duesseldorf: Verlag Wirtschaft und Finanzen, 1999) (with Joseph T. Salerno).
*Editors' Introduction to the new fiftieth anniversary republication of Ludwig von Mises, Human Action. A Treatise on Economics (Auburn, Al.: Ludwig von Mises Institute, 1999) (with Joseph Salerno & Jeffrey Herbener)
*"Murray N. Rothbard: Economics, Science, and Liberty," in: Randall Holcombe, ed., Fifteen Great Austrian Economists (Auburn, Al.: Ludwig von Mises Institute, 1999)
*"The Economic and Political Rationale for European Secessionism," in: David Gordon, ed., Secession, State, and Liberty (New Brunswick: Transaction Publishers, 1998). Romanian translation.
*Introduction to Murray N. Rothbard, The Logic of Action. Collected Economic Papers, 2 vols. (Aldershot: Edward Elgar, 1997) (with David Gordon)
*"Murray N. Rothbard and the Ethics of Liberty" Introduction to the new edition of Murray N. Rothbard, The Ethics of Liberty (New York: New York University Press, 1998)
*"The Political Economy of Monarchy and Democracy, and the Idea of a Natural Order," in: Gerard Radnitzky, ed., Values and the Social Order, Vol.3 (Aldershot: Avebury, 1997). Romanian translation; Italian translation.
*"Theory and History. Reply to Benegas-Lynch Jr.", in: Gerard Radnitzky, ed., Values and the Social Order, Vol.3 (Aldershot: Avebury, 1997).
*"From Welfare to Health Care. Commentary on von Studnitz", in: Gerard Radnitzky, ed., Values and the Social Order, Vol.3 (Aldershot: Avebury, 1997).
*"On the Law and Economics of Socialism and Desocialization", in: Hardy Bouillon, ed., Libertarians and Liberalism. Festschrift in Honor of Gerard Radnitzky(Aldershot: Avebury, 1997).
*"Time Preference, Government, and the Process of De-Civilization - From Monarchy to Democracy", in: John Denson, ed., The Cost of War (New Brunswick: Transaction Publishers, 1997).
*"Die Österreichische Schule und ihre Bedeutung für die moderne Wirtschaftswissenschaft", in: Karl-Dieter Grueske, ed., Ludwig von Mises' "Die Gemeinwirtschaft"(Duesseldorf: Verlag Wirtschaft und Finanzen, 1996). French translation.
*"Murray N. Rothbard", in: Murray Newton Rothbard. In Memoriam(Auburn, Al.: Ludwig von Mises Institute, 1995).
*"Democratic Bankruptcy or Competing Governments", in: Nils Karlson, ed., Can The Present Problems of Mature Welfare States Such as Sweden Be Solved?(Stockholm: City University Press, 1995).
*"Free Immigration or Forced Integration?," in: Thomas Fleming, ed., Immigration and the American Identity(Rockford, Ill.: Rockford Institute, 1995). See "Free Immigration or Forced Integration," Chronicles, July 1995 [below].French translation.
*"Privateigentum: Die Grundlage der Gerechtigkeit und des Wohlstands," in: Roland Baader, ed., Die Enkel des Perikles. Liberale Positionen zu Sozialstaat und Gesellschaft(München: Resch, 1995).
*"On the Passage to a Less Unfree Society". Commentary on Radnitzky, in: Gerard Radnitzky & Hardy Bouillon, eds., Values and the Social Order, Vol.1 (Aldershot: Avebury, 1995).
*"F.A.Hayek on Government and Social Evolution. A Critique," in: Christian Frei & Robert Nef, eds., Contending with Hayek(Bern: Peter Lang, 1994). French translation.
*"Einführung: Ludwig von Mises und der Liberalismus ", Introduction to the new edition of: Ludwig von Mises, Liberalismus(Sankt Augustin: Academia Verlag, 1993). Translated into Chinese, Beijing, 1995. Translated into Czech, Prague, 1998.
*" Marxist and Austrian Class Analysis," in: Yuri Maltsev, ed., Requiem for Marx(Auburn, Al.: Praxeology Press, 1993). Also at: Journal of LibertarianStudies, Vol. 9, 2, 1990.French translationin: Liberte Economique et Progres Social, No.75, September 1995. Romanian translation in: Polis, No.2, 1996. Translated into Russian; translated into Italian.
*"The Misesian Case Against Keynes," in: Mark Skousen, ed., Dissent on Keynes(New York: Praeger, 1992).
*"Unternehmer und Unternehmensberater. Ueber die wissenschaftstheoretischen Grundlagen des Unternehmertums und der wirtschaftswissenschaftlichen Unternehmensberatung", in: Michael Rickenbacher, ed., Zukunftsorientierte Ausbildung von Unternehmensberatern(Stuttgart: Kohlhammer, 1991).
*"On Praxeology and the Praxeological Foundation of Epistemology and Ethics", in: Jeffrey Herbener, ed., The Meaning of Ludwig von Mises(Boston: Kluwer Academic Publishers, 1992).
*"Austrian Rationalism in the Age of the Decline of Positivism," in: Richard Ebeling, ed., Austrian Economics: Perspectives on the Past and Prospects for the Future(Hillsdale, Mi.: Hillsdale College Press, 1991). French translation.
*"The Justice of Economic Efficiency", in: Stephen Littlechild, ed., The Austrian School of Economics(Aldershot: Edward Elgar, 1990).
*"Why Socialism Must Fail", in: Llewellyn H. Rockwell, ed., The Free Market Reader(Auburn, Al.: Ludwig von Mises Institute, 1988).
*"From the Economics of Laissez Faire to the Ethics of Libertarianism," in: Walter Block & Llewellyn H. Rockwell, eds., Man, Economy, and Liberty. Essays in Honor of Murray N. Rothbard(Auburn, Al.: Ludwig von Mises Institute, 1988). Translated into Italian in: Federalismo & Liberta (forthcoming, 1999). Translated into French.
*"Buergererwartungen und Kommunalpolitik", in: Franz X. Kaufmann, ed., Buergernahe Gestaltung der sozialen Umwelt (Meisenheim: Hain, 1977). (With Klaus Arzberger & Manfred Murck).

==Papers in Refereed Journals==
*Property, Causality, and Liability, Quarterly Journal of Austrian Economics, Vol. 7, No. 4 (Winter 2004): 87-95
*Government, Money, and International Politics, Etica & Politica/Ethics & Politics, 2003, 2
*"Natural Order, the State, and the Immigration Problem," Journal of Libertarian Studies, Vol. 16, no. 1 (Winter 2002): 75-97
*"On Property and Exploitation," International Journal of Value-Based Management,Vol. 15, No. 3, 2002, pp. 225-236 (with Walter Block)
*"The Second Paradox of Blackmail," Business Ethics Quarterly, Vol. 10, no. 3, 2000 (with Walter Block and Stephan Kinsella)
*" The Private Production of Defense," Journal of Libertarian Studies, Vol. 14, no. 1, 1999. See also The Private Production of Defense(pamplet, above).Translated into Czech (forthcoming, 1999); Italian translation in: Elites, Vol. 3, no. 4, 1999; Romanian translation.
*"Against Fiduciary Media," Quarterly Journal of Austrian Economics, Vol. 1. No.1, 1998 (with G. Huelsmann and W. Block). Translated into Spanish in: Libertas, No. 30, May 1999; Romanian translation.
*"The Future of Liberalism. A Plea for a New Radicalism," Polis, Vol. 3,1, 1998
*" The Case for Free Trade and Restricted Immigration,"Journal of Libertarian Studies, Vol. 13. No.2, 1998. Translated into Italian in: Biblioteca della Liberta, No. 145, May/August 1998; Translated into Russian; French translation; Polish translation
*" The Western State as a Paradigm: Learning from History" Politics and Regimes. Religion & Public Life, Vol.30, 1997. Romanian translation .
*"On the Law and Economics of Socialism and Desocialization", Cultural Dynamics, Vol.8 no.3, 1996. Translated into Romanian in: Cotidianul(alternativasupplement), July 4, 1997.
*"Small is Beautiful And Efficient: The Case For Secession", Telos # 107, Spring 1997. Translated into Italian in: Ideazione, No. 4, 1998; Romanian translation.
*"On Certainty and Uncertainty - Or: How Rational Can Our Expectations Be?", Review of Austrian Economics, Vol.10, No.1, 1997. French translation.
*"Socialism - A Property or Knowledge Problem?", Review of Austrian Economics, Vol.9, No.1, 1995. Translated into Romanian in: Cotidianul, June 30, 1997.
*" The Political Economy of Monarchy and Democracy and the Idea of a Natural Order," Journal of Libertarian Studies, Vol. 11, 2, 1995; Italian translationin: Federalismo & Liberta, Vol. 6, no. 56, 1999; Reprinted in: A. Mingardi & G. Piombini, eds., Anarchici Senza Bombe. Il Nuovo Pensiero Libertario(Rome: Stampa Alternativa, 2000); Romanian translation.
*"Time Preference, Government, and the Process of De-Civilization - From Monarchy to Democracy", Journal des Economistes et des Etudes Humaines, Vol.5, 2, 1994.
*" How is Fiat Money Possible? or: the Devolution of Money and Credit",Review of Austrian Economics, Vol.7, 2, 1994. Swedish translation; Romanian translation .
*"F.A.Hayek on Government and Social Evolution. A Critique", Review of Austrian Economics, Vol.7, 1, 1994. French translation.
*"Migrazione, centralismo e secessione nell'Europa contemporanea", Biblioteca della Liberta, no.118, 1992.
*"Austrian Rationalism in the Age of the Decline of Positivism," Journal des Economistes et des Etudes Humaines, Vol.2, 2, 1991. French translation.
*"Desocialization in a United Germany", Review of Austrian Economics, Vol.5, 2, 1991. Reprinted in: Praxeologica, Vol.3, 1, 1991 (Copenhagen, Denmark).
*"Marxist and Austrian Class Analysis," Journal of Libertarian Studies, Vol. 9, 2, 1990. French translationin: Liberte Economique et Progres Social, No.75, September 1995; Romanian translation in: Polis, No.2, 1996. Translated into Russian; translated into Italian.
*"The Economics and Sociology of Taxation," Journal des Economistes et des Etudes Humaines, Vol.1, 2, 1990 <li>"The Economics and Sociology of Taxation," Journal des Economistes et des Etudes Humaines, Vol.1, 2, 1990 (partial Russian translation; Hoppe info page on same site)
*"Banking, Nation States, and International Politics", Review of Austrian Economics, Vol.4, 1989. Romanian translation .
*" Fallacies of the Public Goods Theory and the Production of Security," Journal of Libertarian Studies, Vol.9, 1, 1989. Spanish translation, in Libertas, Vol.XIII, No.24, May 1996.
*"In Defense of Extreme Rationalism", Review of Austrian Economics, Vol.3,1988.
*"Is Research Based on Causal Scientific Principles Possible in the Social Sciences?", Ratio, Vol.25, 1, 1983. Published simultaneously in German in the German language edition of Ratio.
*"Vom Konzept der Wohlfahrtsmessung zur Theorie der Gerechtigkeit", Zeitschrift fuer Politik, No.1, 1982.
*"Ueber ungemessene Variablen. Von einem Fehlschluss und zwei unbeantworteten Fragen", Zeitschrift fuer Soziologie, No.1, 1982.
*"Ueber die Verwendung ungemessener Variablen in Kausalmodellen. Eine epistemologische Kritik", Zeitschrift fuer Soziologie, No.2, 1981.
*"On How Not To Make Inferences About Measurement Error", Quality and Quantity, 14, 1980.
*"Einflussfaktoren auf die Konfliktbereitschaft von Arbeitern", Soziale Welt, No.1/2, 1977. (with Juergen Schumacher)

==Shorter works==
*The Idea of a Private Law Society, LewRockwell.com, August 1, 2006
*Does the State Resolve or Create Conflict?, Mises.org, March 16, 2006
*Reflections on State and War, LewRockwell.com, November 22, 2006 (talk delivered in Auburn, Alabama, on the occasion of *Professor Hoppe's receiving the Mises Institute's 2006 [[Gary G. Schlarbaum Prize|Gary G. Schlarbaum Liberty Prize]], delivered on October 27, 2006, at "Imperialism: Enemy of Freedom," the Mises Institute Supporter's Summit; speech available in MP3 audio from Mises Media)
*The Paradox of Imperialism, Mises.org, November 20, 2006 (excerpted from Professor Hoppe's Schlarbaum Award Acceptance Speech, delivered on October 27, 2006, at "Imperialism: Enemy of Freedom," the Mises Institute Supporter's Summit; speech available in MP3 audio from Mises Media)
*A Note on Preference and Indifference in Economic Analysis, Quarterly Journal of Austrian Economics, Vol. 8, No. 4 (Winter 2005): 87-91
*The Rise and Fall of the City, Mises.org, Nov. 23, 2005 (an extract of chapter 9 of Democracy: The God That Failed)
*The Intellectual Incoherence of Conservatism , Mises.org, March 4, 2005 (Italian translation; German translation)
*Why Bad Men Rule, LewRockwell.com, Nov. 8, 2004
*From Nation to Household: The Middle American Illusions of Sam Francis (and Pat Buchanan) (unpublished)
*Von der Unmöglichkeit des Sozialismus
*"Geordnete Anarchie, Eigentum, Vertrag, und Staat. Naturrechtliche Anmerkungen," Erwaegen, Wissen, Ethik, 13, no. 3, 2002
*Democracy: The God That Failed, LewRockwell.com, Nov. 12, 2001 (discussion of Democracy: The God That Failed); Slovakian translation; Czech translation; Polish translation.
*Hans-Hermann Hoppe on War, Terrorism, and the World State, Interview by Mark Grunert, Le Québécois Libre, No. 115, Dec. 7, 2002; Dutch translation by Aschwin de Wolf.
*On Free Immigration and Forced Integration, LewRockwell.com, 1999; Dutch translation
*Reviving the West(review of Pat Buchanan's The Death of the West), LewRockwell.com, Apr. 13, 2002: Italian translation, "Ridare vita all'Occidente", traduzione di Filippo Franceschetto.
*"L'ordine naturale, lo Stato et il problema della immigrazione," Federalismo & Liberta, Vol. 8, no. 1/2, 2001.
*"Government, Money, and International Politics" (previously unpublished). Korean translation, Emerge, no. 9, 2000; Polish translation
*"Goethe for the Millenium," Wall Street Journal Europe, December 30, 1999. Italian translation in: La Padania & Enclave, 2000.
*"What Made Germany Great. Johann Wolfgang von Goethe on Kleinstaatereiand Culture," Rothbard-Rockwell Report, Vol. 10, No. 8, August 1999; reprinted in: The Free Market, October 1999; Dutch translation.
*"The Western State as Paradigm", Society, Vol. 35, 5, 1998.
*"The Private Property Order. An Interview with Hans-Hermann Hoppe", Austrian Economics Newsletter, Spring 1998. Italian translation in: Elites(forthcoming).
*Editorial, Quarterly Journal of Austrian Economics, Vol. 1, 1, 1998 (with Walter Block and Joseph Salerno).
*"The Trouble With Classical Liberalism", Rothbard Rockwell Report, vol.ix, no.4, April 1998.
*"Where the Right Goes Wrong", Rothbard Rockwell Report, vol. viii, no.4, April 1997.
*"The Meaning of the Mises Papers", Free Market, April 1997.
*"The Mises Archive: A Treasure Uncovered", Wall Street Journal, January 30, 1997.
*"Einwanderungsfreiheit oder erzwungene Integration? - Eine liberale Antwort auf das Einwanderungsproblem", Criticon, November 1996.
*The Failure of America's Foreign Wars. Edited by Richard Ebeling and Jacob Hornberger. "A Book Review", The Freeman: Ideas on Liberty, November 1996.
*Editorial, Review of Austrian Economics, Vol.9, 2, 1996 (with Walter Block and Joseph Salerno).
*Editorial,Journal of Libertarian Studies, Vol.12, 1, 1996 (with Walter Block, David Gordon, and Joseph Salerno).
*"Down with Democracy", Enterprise and Education. The Association of Private Enterprise Newsletter, Summer1995. Reprinted in: Rothbard-Rockwell Report, February 1996. French translation; Slovak translation, 2001; Dutch translation, 1998; Swedish translation; Czech translation; Polish translation; Spanish translation ( 2, 3).
*Editorial, Journal of Libertarian Studies, Vol.11, 2, 1995 (with Walter Block, David Gordon, and Joseph Salerno).
*Editorial, Review of Austrian Economics, Vol.8, 2, 1995 (with Walter Block, and Joseph Salerno).
*"Free Immigration or Forced Integration," Chronicles, July 1995. Also published in: Thomas Fleming, ed., Immigration and the American Identity(Rockford, Ill.: Rockford Institute, 1995) [above]; and in Salisbury Review, June 1995. German translation in: Schweizer Monatshefte, November 1998. French translation.
*"Hoehere Bildung, Sozialismus, und die Zukunft der Demokratie. Kommentar zu Don Lavoie", Reflexion, No.34, May 1995.
*"Murray Rothbard. R.I.P.", Free Market, March 1995.
*"Murray Newton Rothbard. March 2, 1926 - January 7, 1995", Journal des Economistes et des Etudes Humaines, Vol.6, 1, 1995.
*"Ein Liberalismus von unerhoerter Radikalitaet. Zum Tode von Murray N. Rothbard", Neue Zuercher Zeitung, January 14, 1995.
*"Nationalism and Secession," Chronicles, November 1993 Also published in Salisbury Review, June 1993. French translation at http://www.liberalia.com/esperer.htm ; German translation in Schweizer Monatshefte, May 1993.
*"A Note on Socialism and Slavery", Chronicles, August 1993.
*" The Four Step Health Care Solution", Free Market, April 1993.
*"Money, Method, and the Market Process. Essays by Ludwig von Mises. A Review", Austrian Economics Newsletter,No.1, 1994
*"Le rationalisme autrichien a l'age du declin du positivisme", Revue des Etudes Humaines, December 1991.
*"The Bungling of German Reunification", Free Market, July 1991.
*"Economie et Sociologie des Impots", Revue des Etudes Humaines, July 1990.
*"The Collapse of Socialism and the Future of Eastern Europe", Kwasny Economics, Vol.2, 6, October 1989. Reprinted in Sound Money Investor, January/February 1990.
*"On the Indefensibility of Welfare Rights. Reply to Conway", Austrian Economics Newsletter, No.3, 1989.
*Man, Economy, and Liberty. "Review Essay", Review of Austrian Economics, Vol.4, 1989.
*"European Economic Integration and the ECU", Austrian Economics Newsletter, No.1, 1989. Translated into Romanian in: Cotidianul, September 6, 1996, (alternativasupplement).
*"Intimidation by Argument - Once Again. Reply to Lomasky", Liberty, Vol.3, 2, November 1989.
*"Demonstrated Preference and Private Property. Reply to Osterfeld", Austrian Economics Newsletter, No.1, 1988.
*"Utilitarians and Randians vs. Reason",Liberty, Vol.2, 2, November 1988; the article is a reply to a Symposion on Hoppe's Rights Theory, in the same issue of Liberty, with comments by Murray N. Rothbard, David Friedman, Leland Yeager, David Gordon, Douglas Rasmussen, et. al., on the previous article: "The Ultimate Justification of the Private Property Ethic" (next entry);
*"The Ultimate Justification of the Private Property Ethic", Liberty, Vol.2, 1, September 1988.
*"The Justice of Economic Efficiency", Austrian Economics Newsletter, No.1, 1988.
*"Why Socialism Must Fail", Free Market, July 1988. Translated into Portuguese in Visao, February 1, 1990. Reprinted in Enterprise. Institute for Saskatchewan Enterprise, Vol.1, 2, 1990.
*"The Intellectual Cover for Socialism", Free Market, February, 1988. Reprinted in Sound Money Investor, July 1988. Translated into Romanian in Cotidianul, March 18, 1997; Spanish translation.
*"Staatsausgaben fuer produktive Arbeitsplaetze? Ueber die Wirkungen von Beschaeftigungsprogrammen", Orientierungen zur Wirtschafts- und Gesellschaftspolitik, No.14, 1982
*"Sicherheits- und Entfaltungswuensche", Neue Gesellschaft, No.12, 1977.
*"Beeinflussungsfaktoren der Konfliktbereitschaft bei Metallarbeitern", Sozialer Fortschritt, No.2, 1977 (with Juergen Schumacher).
*"Wirtschaftliche Rezession, Konfliktbereitschaft, und Reformbestrebungen in der Arbeitnehmerschaft", Gewerkschaftliche Monatshefte, No.6, 1976 (with Manfred Murck, Klaus Arzberger, und Juergen Schumacher).

==Translations==
*Friedrich August Hayek, "On Ludwig von Mises", Austrian Economics Newsletter, No.4, 1988. Translation of Hayek's introduction to Ludwig von Mises, Erinnerungen(Stuttgart:G.Fischer, 1978); from the German. Reprinted in: The Collected Works of F. A. Hayek, Vol. 4 (Chicago: University of Chicago Press,1992).
*Richard von Strigl, Capital and Production(Auburn, Al.: Ludwig von Mises Institute, 1995). Translation of Strigl's Kapital und Produktion(Wien: J.Springer, 1934) from the German (with Margaret Rudelich Hoppe).
*Karlheinz Weissmann, "The Epoch of National Socialism", Journal of Libertarian Studies, Vol. 12, No.2, 1996; from the German (with Margaret Rudelich Hoppe).

[[Category:Writings of Hans-Hermann Hoppe]]

The Case for Gold

2013-04-28T00:46:23Z

John James: added see also + cat + minor

'''''The Case for Gold''''', published in 1982, and a second [[Mises Institute]] edition in 2011, is a minority report of the [[U.S. Gold Commission]] written by Dr. [[Ron Paul]]. The second edition contains a foreword by [[Llewellyn H. Rockwell, Jr.]].

==About==
Dr. Paul, in his foreword, writes:
<blockquote>"...more and more people are asking if a gold standard will end the financial crisis in which we find ourselves. The question is not so much ''if'' it will help or ''if'' we will resort to gold, but ''when''. All great inflations end with the acceptance of real money..."<ref>''The Case for Gold'', Foreword by [[Ron Paul]] (2011).</ref>
<ref>[http://www.cato.org/case-for-gold The Case for Gold] The Cato Institute (1982)</ref></blockquote>

'''''From the Mises Institute Bookstore Description'''''

:In 1982, Ron Paul served on the U.S. Gold Commission to evaluate the role of gold in the monetary system. In fact, the Commission was his idea. It was carrying forth a promise made in the [[Republican]] platform. Back then, Republicans at least made noises about favoring a [[Gold standard]] based on a gold dollar.

:Ron couldn't pick the members, so from the beginning, the deck was stacked. The majority was dominated by monetarists, who saw gold as too scarce and paper as just fine. Ron Paul's team was ready, however, with this marvelous minority report.

:Rarely has a dissent on a government commission done so much good!

:The result was ''The Case for Gold'', and it was the greatest result of the commission. It covers the history of gold in the United States, explains that its breakdown was caused by governments, and explains the merit of having sound money: prices reflect market realities, government stays in check, and the people retain their freedom. The recommendations include re-establishing a gold standard and a gold dollar in addition to permitting monetary competition and the private production of moneys.

:The scholarship and rigor impressed even the critics of the minority. Ron and Lewis Lehrman worked with a team of economists that included [[Murray Rothbard]], so it is hardly surprising that such a book would result.

:It still holds up as an excellent blueprint for moving beyond paper money and into the age of [[sound money]]. In particular, Ron favors complete monetary freedom to use any commodity as money, to make contracts in any money, and an end to the monopolization and printing power of the [[Federal Reserve]].

:There is a strong piece of history in this book. Not since the 19th century has a political figure made such a sweeping and devastating case for radical monetary reform. This congressman ran circles around even the experts at the Fed. A dazzling performance indeed, and an inspiring and learned book. This remains the best possible case for a gold dollar and monetary freedom in print in our times.<ref>[http://mises.org/store/Case-for-Gold-Pocket-Edition-P10451.aspx ''The Case for Gold''] in the [http://mises.org/store/ Mises Institute Store].</ref>

==Contents==
::''Foreword to the Second Edition''
::''Foreword''
::''Introduction''
#The Present Monetary Crisis
#A History of Money and Banking in the United States Before the 20th Century
#Money and Banking in the United States in the 20th Century
#The Case for Monetary Freedom
#Real Money: The Case for the Gold Standard
#The Transition to Monetary Freedom
#The Next 10 Years
::''Appendix''
::''Index''

==See also==
* [[Gold standard]]
* [[Argumentation:Gold]]
* ''[[The Gold Standard: Perspectives in the Austrian School]]''
* ''[[What Has Government Done to Our Money?]]''
* ''[[The Case for a Genuine Gold Dollar]]''
* ''[[The Case for a 100 Percent Gold Dollar]]''
* ''[[The Ethics of Money Production]]''

==Notes==
{{Reflist}}

==Links==
{{store|http://mises.org/store/Case-for-Gold-Pocket-Edition-P10451.aspx|The Case for Gold|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}
* {{mr|603|Documents page}} (including full text)

*[http://mises.org/daily/5353/Dr-Pauls-Case-for-Gold ''Dr. Paul's Case for Gold''] by [[Llewellyn H. Rockwell, Jr.]].
*[http://mises.org/media/2845/The-Case-for-Gold Dr. Ron Paul Seminar on Money and Government] (Audio, 2009).
*[http://en.wikipedia.org/wiki/Gold_standard Gold standard and the Gold Commission] on [http://en.wikipedia.org/wiki/Main_Page Wikipedia]

[[Category:Writings of Ron Paul]]
{{DEFAULTSORT:Case for Gold, The}}

Mises and Austrian Economics: A Personal View

2013-04-28T00:40:32Z

John James: /* Links */ added + cat

{{Infobox book
| name = Mises and Austrian Economics: A Personal View
| title_orig =
| translator =
| image = [[File:Mises and Austrian Economics cover.jpg|175px]]
| image_caption =
| author = [[Ron Paul]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Economics]]
| genre = [[Non-fiction]]
| publisher = [[Ludwig von Mises Institute]]
| pub_date = 1984 (1st edition)
| english_pub_date =
| media_type = Print
| pages = 31 p. (1st edition)
| isbn =
| oclc = 19968524
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''Mises and Austrian Economics: A Personal View''''' is an essay by American [[Congressman]] [[Ron Paul]].

==Links==
{{store|http://mises.org/store/Mises-and-Austrian-Economics-A-Personal-View-MP3CD-P10582.aspx|Mises and Austrian Economics: A Personal View (mp3 CD)|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* {{mr|3221|Resources page}} (including full text)
** [http://mises.org/media/category/223Mises-and-Austrian-Economics-A-Personal-View Audio reading] by Floy Lilley ([http://blog.mises.org/7565/mises-and-austrian-economics-a-personal-view-by-ron-paul/ YouTube])

{{stub}}

[[Category:Writings of Ron Paul]]

Pillars of Prosperity: Free Markets, Honest Money, Private Property

2013-04-28T00:38:03Z

John James: cleaned links section + added + contents in table

'''''Pillars of Prosperity''''', published in 2008, is a collection of Congressional speeches, bill proposals, committee discussions, and exchanges with various government and banking officials that Dr. [[Ron Paul]] has given or taken part in during his time, from 1976 to 2012, in the [[United States Congress]].

==About==
Dr. Paul's Congressional record is flawless. He never voted for a bill that was in conflict with the Constitution and he never passed up a chance to grill the [[Chairman of the Federal Reserve]] (whenever they would give him a chance that is). This book shows the depth of character and courageous strength that Dr. Paul kept throughout his time in Washington.

[[Robert P. Murphy]], in the preface to the book, states:

<blockquote>The core of the book concerns Dr. Paul’s strong support for honest money. (It was, after all, Nixon’s closing of the gold window that prompted Dr. Paul to run for office in the first place.) There are also entire sections on trade, international organizations such as the [[IMF]] and [[WTO]], and a section outlining Dr. Paul’s attempts to protect [[Social Security]] from the big spenders in D.C. The collection also includes a selection of specific tax cuts Dr. Paul has suggested, which shows that—despite his nickname of “Dr. No”—Ron Paul is a real congressman, who brings real bills to the floor for consideration. Most of the selections are straight testimony from Dr. Paul, though a few transcripts of actual floor debate have been included to give the reader a feel for the deliberative body of which Paul is a member. There are numerous exchanges between Ron Paul and [[Alan Greenspan]], as well as an encounter with [[George Soros]] that somehow turns to [[drug legalization]]. And perhaps the most surreal event is the duel between Ron Paul and [[Nancy Pelosi]] (over the constitutionality of the [[Export-Import Bank]]).
Besides the eloquence and wisdom of his remarks, the reader will also be struck by Ron Paul’s consistency over the decades. This makes perfect sense for someone who actually holds principles and makes speeches accordingly. But as we all know, this is rare indeed for a politician.<ref>Preface by [[Robert P. Murphy]] to ''Pillars of Prosperity'' by [[Ron Paul]]</ref></blockquote>

==Contents==
{| class="wikitable collapsible collapsed"
! Table of Contents 
|-
| '''PREFACE BY ROBERT P. MURPHY'''

'''FOREWORD BY LLEWELLYN H. ROCKWELL, JR.'''

'''PART 1—THE ECONOMICS OF A FREE SOCIETY'''
#Current Political Philosophies’ Errors to Result in Political and Economic Crisis
#Challenge to America: A Current Assessment of Our Republic
#Has Capitalism Failed?

'''PART 2—MISES AND AUSTRIAN ECONOMICS: A PERSONAL VIEW'''

'''PART 3—REFORMING SOCIAL SECURITY'''
#Senior Citizens’ Freedom to Work Act of 1999
#Social Security Tax Relief Act
#Social Security Preservation Act
#Social Security for American Citizens Only!

'''PART 4—GIVING MONEY BACK TO THE TAXPAYERS'''
#The Agriculture Education Freedom Act
#The Family Health Tax Cut Act
#The Public Safety Tax Cut Act
#End the Income Tax—Pass the Liberty Amendment
#Teacher Tax Cut Act
#The Family Education Freedom Act
#The False Tax Cut Debate
#Police Security Protection Act

'''PART 5—MONEY AND BANKING: GOLD VERSUS FIAT'''
#To Provide for Amendment of the Bretton Woods Agreement Act, and for Other Purposes
#Inflation—The Overriding Concern of All Americans
#Curtailing the Discretionary Powers of the Federal Reserve
#Print 3 Million and Take 1 Million for Yourself
#Gold Prices Soar; Dollar Declines
#Government Should Stop Destroying Value of the Dollar
#Increased Money Supply Cause of Inflation
#The Recent Strength of the Dollar and Inflation
#Inflation is Caused by Government
#Debasement
#Congressional Inflation
#Gold versus Paper
#Five Myths of the Gold Standard
#Audit of the Federal Reserve
#High Interest Rates
#At the Brink
#The Folly of Current Monetary Policy
#Back Into the Woods
#Conduct of Monetary Policy, March 5, 1997
#Federal Reserve has Monopoly over Money and Credit in United States
#Conduct of Monetary Policy, July 22, 1997
#East Asian Economic Conditions
#Conduct of Monetary Policy, February 24, 1998
#The Bubble
#International Economic Turmoil
#Revamping the Monetary System
#Congress Ignores its Constitutional Responsibility Regarding Monetary Policy
#Warning about Foreign Policy and Monetary Policy
#Economic Update
#The Economy
#The U.S. Dollar and the World Economy
#The Foolishness of Fiat
#Gold and the Dollar
#Hard Questions for Federal Reserve Chairman Greenspan
#Bring Back Honest Money
#Paper Money and Tyranny
#Reject Taxpayer Bank Bailouts
#The End of Dollar Hegemony
#What the Price of Gold is Telling Us
#Monetary Policy and the State of the Economy
#Chinese Currency
#Financial Services Paulson Hearing

'''PART 6—FREE TRADE: REAL VERSUS PHONY'''
#Our Soaring Trade Deficit Cannot Be Ignored
#Ron Paul Amendment to Cut Corporate Welfare
#What is Free Trade?
#The Dollar and Our Current Account Deficit
#International Trade
#PNTR
#The Export-Import Reauthorization Act
#Opposing Unconstitutional “Trade Promotion Authority”
#Steel Protectionism
#Export-Import Bank is Corporate Welfare
#Don’t Antagonize Our Trading Partners
#The United States Trade Rights Enforcement Act

'''PART 7—INTERNATIONAL AFFAIRS'''
#Dissenting Views on H.R. 7244
#Big Bankers Get Their Bailout The Mexican Bailout
#Reaffirming Commitment of United States to Principles of the Marshall Plan
#Calling for the United States to Withdraw from the World Trade Organization
#U.S. Membership in the World Trade Organization
#New China Policy
#Ending U.S. Membership in the IMF
#Wasteful Foreign Aid to Colombia
#Opposing Taxpayer Funding of Multinational Development Banks
#Why Does the IMF Prohibit Gold-Backed Currency for its Member States?
#The Myth of War Prosperity
#Opposing Trade Sanctions against Syria
#Reject the Millennium Challenge Act
#Providing for the Establishment of a Commission in the House of Representatives to Assist Parliaments in Emerging Democracies
#Opposing Statement to Committee on Financial Services World Bank Hearing
#Darfur Accountability and Divestment Act
#Iran Sanctions Enabling Act

'''PART 8—HOW GOVERNMENT DISTORTS THE HOUSING MARKET'''
#Debate on the Housing Opportunity and Responsibility Act of 1997
#Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
#The American Dream Downpayment Act
#Reforming the Government Sponsored Enterprises (Fannie Mae and Freddie Mac)
#Mortgage Industry Has Its Roots in the Federal Reserve’s Inflationary Monetary Policy
'''PART 9—SPENDING, TAXES, AND REGULATIONS'''
#The Chrysler Bailout
#The Balanced Budget Amendment
#Authorizing President to Award Congressional Gold Medal to Mother Teresa
#The Davis-Bacon Repeal Act
#The National Right to Work Act
#Authorizing President to Award Congressional Gold Medal to Rosa Parks
#OSHA Home Office Regulations
#Minimum Wage Increase Act
#Awarding Gold Medal to Former President and Mrs. Ronald Reagan in Recognition of Service to Nation
#Internet Gambling Prohibition Act of 2000
#The Wage Act
#Truth in Employment Act
#Financial Anti-Terrorism Act of 2001
#Terrorism Reinsurance Legislation
#The Collapse of Enron
#Television Consumer Freedom Act
#The Shrimp Importation Financing Fairness Act
#Oppose the Federal Welfare State
#Oppose the Spendthrift 2005 Federal Budget Resolution
#A Token Attempt to Reduce Government Spending
#Praising Private Space Exploration
#Government Spending—A Tax on the Middle Class
#Raising the Debt Limit: A Disgrace
#Repeal Sarbanes-Oxley!
#The Republication Congress Wastes Billions Overseas
#So-Called “Deficit Reduction Act”
#What Congress Can Do About Soaring Gas Prices
#Executive Compensation

'''GLOSSARY OF ACRONYMS'''

'''INDEX'''
|}

==Notes==
{{Reflist}}

==Links==
{{store|https://mises.org/store/Pillars-of-Prosperity-Free-Markets-Honest-Money-Private-Property-P466.aspx|Pillars of Prosperity|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* {{mr|3414|Documents page}} (including full text)
** [http://mises.org/daily/2891 Part I excerpt] "The Economics of a Free Society"
*** [http://mises.org/media/2457/The-Economics-of-a-Free-Society Audio reading] by [[Floy Lilley]]
** [http://mises.org/daily/2894 Part I excerpt] "Challenge to America: A Current Assessment of Our Republic"
*** [http://mises.org/media/2458/Challenge-to-America-A-Current-Assessment-of-Our-Republic Audio reading] by Floy Lilley
** [http://mises.org/daily/2895 Part I excerpt] "Has Capitalism Failed?"
*** [http://mises.org/media/2425/Has-Capitalism-Failed Audio reading] by Floy Lilley

* {{mb|8572|Ron saw it all|[[Jeffrey Tucker]]|September 2008}}
* Review: [http://www.foreclosurefish.com/blog/index.php?id=373 Ron Paul's "Pillars of Prosperity" Part I: The Economics of a Free Society]

[[Category:Writings of Ron Paul]]

End the Fed

2013-04-28T00:10:20Z

John James: /* Links */ added + cleaned

{{Infobox book
| name = End the Fed
| title_orig =
| translator =
| image = [[File:End_the_Fed.jpg|100px]]
| image_caption =
| author = [[Ron Paul]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Libertarianism]], [[Political Economy]], [[Monetary Policy]]
| genre = [[Non-fiction]]
| publisher = [[Grand Central Publishing]]
| pub_date = 2009
| english_pub_date =
| media_type = Print
| pages = 212 pp.
| isbn = 9780446549196
| oclc = 318878539
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''End the Fed''''', published in 2009, is a book written by Dr. [[Ron Paul]] criticizing the actions, even the mere existence of, the [[Federal Reserve]].

==About==
This book contains an examination of the Fed, its policies, and what it has done to the U.S. economy since its inception in [[1913]]. Grounded on the tacit need for reform of the monetary policy of the U.S. federal government, Dr. Paul explains the concept of a truly free market and how the Fed has manipulated and all but destroyed the dollar while simultaneously enabling the endless wars of big government regimes. He lists his own intellectual influences, [[Ludwig von Mises]] and [[Murray Rothbard]] among them, and his passionate belief in a strong, sound economy based on real money (gold, silver, etc.). The book goes into the conversations that Dr. Paul has had in Congress with [[Alan Greenspan]] and [[Ben Bernanke]]. After giving his own reasons to end the Fed, Dr. Paul lays out the economic, constitutional, Libertarian, as well as philosophical cases in such a way that, when the last page has been read, one can only agree that we should: ''End the Fed''.

==Contents==
#Why You Should Care
#The Origin and Nature of the Fed
#My Intellectual Influences
#Central Banks and War
#The Gold Commission
#Conversations with Greenspan
#Conversations with Bernanke
#Congress's Interest in Monetary Policy
#The Current Mess
#Why End the Fed?
#The Philosophical Case
#The Constitutional Case
#The Economic Case
#The Libertarian Case
#The Way Out
::''Suggested Reading''

==Links==
{{store|https://mises.org/store/End-the-Fed-P619.aspx|End the Fed|https://mises.org/store/End-the-Fed-Collection-P620.aspx|End the Fed Collection|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* [http://mises.org/daily/3687 Chapter 2] "The Origin and Nature of the Fed"

*{{wplink}}

{{stub}}

[[Category:Writings of Ron Paul]]

Liberty Defined

2013-04-28T00:00:31Z

John James: /* Links */ minor + cat

{{Redirect-distinguish2|Liberty Defined|the [[Liberty Defined (F. A. Harper)|lecture by F.A. Harper]]}}

{{Infobox book
| name = Liberty Defined: 50 Essential Issues That Affect Our Freedom
| title_orig =
| translator =
| image = [[File:Liberty Defined urgent issues cover.jpg|175px]]
| image_caption =
| author = [[Ron Paul]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Libertarianism]], [[Political economy]]
| genre = [[Non-fiction]]
| publisher = [[Grand Central Publishing]]
| pub_date = 2011
| english_pub_date =
| media_type = Print
| pages = 324 pp.
| isbn = 9781455501458
| oclc = 668192339
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''Liberty Defined: 50 Essential Issues That Affect Our Freedom''''' is a book by Congressman and author [[Ron Paul]]. The text expounds on the fifty key issues that he feels are most important to Americans, based on the concept of personal liberty.

==See also==
* [[Liberty Defined: Index]]

==Links==
{{store|http://mises.org/store/Liberty-Defined-P10463.aspx|Liberty Defined: 50 Urgent Issues That Affect Our Freedom|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* [http://www.lewrockwell.com/paul/paul734.html Introduction] (republished as Mises Daily [http://mises.org/daily/5219/The-Blessed-Institution-Liberty here])
* [http://www.amazon.com/gp/product/145550145X?ie=UTF8&tag=rpcom-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=145550145X Liberty Defined] at Amazon.com

* Articles, essays and reviews
** [http://mises.org/daily/5186/Its-Time-to-Rethink-Everything "It's Time to Rethink Everything"] by [[Lew Rockwell]], April 2011
** [http://mises.org/daily/5246/The-Practical-Idealist "The Practical Idealist"] by Gary Gibson, May 2011
** [http://reason.com/archives/2011/06/09/ron-pauls-radical-vision "Ron Paul’s Radical Vision"] by [[Brian Doherty]], July 2011
** [http://blog.mises.org/16580/amazon-reviews-of-ron-pauls-liberty-defined/ "Amazon Reviews of Ron Paul’s Liberty Defined"] by [[Jeffrey Tucker]], April 2011

* {{wplink}}

{{stub}}

[[Category:Writings of Ron Paul]]

The Revolution: A Manifesto

2013-04-27T23:58:32Z

John James:

{{Infobox book
| name = The Revolution: A Manifesto
| title_orig =
| translator =
| image = [[File:The_Revolution_—_A_Manifesto.jpg|200px]]
| image_caption =
| author = [[Ron Paul]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Libertarianism]], [[Political Science]], [[Philosophy]]
| genre = [[Non-fiction]]
| publisher = [[Grand Central Publishing]]
| pub_date = 2009
| english_pub_date =
| media_type = Print
| pages = 191 pp.
| isbn = 9780446537520
| oclc = 191881970
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''The Revolution: A Manifesto''''', published in 2009, is a book written by Dr. [[Ron Paul]], former congressman and ''"Champion of the Constitution"'' in American politics.

==About==
A [[New York Times]] #1 Bestseller, written at a time of economic insanity in the United States, ''The Revolution'' offers an [[Austrian School]] as well as a true patriot's perspective on what really threatens America. From the financial crisis to terrorism, Dr. Paul lays it all on the table in this ''call to arms''. <ref>[http://www.hachettebookgroup.com/titles/ron-paul/the-revolution/9780446537520/ ''The Revolution: A Manifesto'' Book Summary]</ref>

==Contents==
::''Preface''
#The False Choices of American Politics
#The Foreign Policy of the Founding Fathers
#The Constitution
#Economic Freedom
#Civil Liberties
#Money: The Forbidden Issue in American Politics
#The Chickens Come Home to Roost
#The Revolution
::''Appendix''
::''A Reading List for a Free and Prosperous America''

==Notes==
{{Reflist}}

==Links==
{{store|https://mises.org/store/Revolution-The-A-Manifesto-P481.aspx|The Revolution: A Manifesto|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* Mises Review: [http://mises.org/misesreview_detail.aspx?control=335 ''The Revolution: A Manifesto''] by [[David Gordon]], 2008
* [http://www.hachettebookgroup.com/titles/ron-paul/the-revolution/9780446537520/misesinsti-20 ''The Revolution: A Manifesto''] on the [http://www.hachettebookgroup.com/ Hatchette Book Group] website.
* [http://www.amazon.com/Revolution-Manifesto-Ron-Paul/dp/0446537527/misesinsti-20 ''The Revolution: A Manifesto''] on [http://www.amazon.com/ Amazon.com]

*[http://en.wikipedia.org/wiki/The_Revolution:_A_Manifesto ''The Revolution: A Manifesto''] on [http://en.wikipedia.org/wiki/Main_Page Wikipedia]

[[Category:Writings of Ron Paul]]
{{DEFAULTSORT:Revolution: A Manifesto, The}}

Category:Writings of Ron Paul

2013-04-27T23:57:25Z

John James: Created page with "Paul, Ron"

[[Category:Writings by author|Paul, Ron]]

The Revolution: A Manifesto

2013-04-27T23:56:42Z

John James: minor additions

{{Infobox book
| name = The Revolution: A Manifesto
| title_orig =
| translator =
| image = [[File:The_Revolution_—_A_Manifesto.jpg|200px]]
| image_caption =
| author = [[Ron Paul]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Libertarianism]], [[Political Science]], [[Philosophy]]
| genre = [[Non-fiction]]
| publisher = [[Grand Central Publishing]]
| pub_date = 2009
| english_pub_date =
| media_type = Print
| pages = 191 pp.
| isbn = 9780446537520
| oclc = 191881970
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''The Revolution: A Manifesto''''', published in 2009, is a book written by Dr. [[Ron Paul]], former congressman and ''"Champion of the Constitution"'' in American politics.

==About==
A [[New York Times]] #1 Bestseller, written at a time of economic insanity in the United States, ''The Revolution'' offers an [[Austrian School]] as well as a true patriot's perspective on what really threatens America. From the financial crisis to terrorism, Dr. Paul lays it all on the table in this ''call to arms''. <ref>[http://www.hachettebookgroup.com/titles/ron-paul/the-revolution/9780446537520/ ''The Revolution: A Manifesto'' Book Summary]</ref>

==Contents==
::''Preface''
#The False Choices of American Politics
#The Foreign Policy of the Founding Fathers
#The Constitution
#Economic Freedom
#Civil Liberties
#Money: The Forbidden Issue in American Politics
#The Chickens Come Home to Roost
#The Revolution
::''Appendix''
::''A Reading List for a Free and Prosperous America''

==Links==
{{store|https://mises.org/store/Revolution-The-A-Manifesto-P481.aspx|The Revolution: A Manifesto|https://mises.org/store/Ron-Paul-Collection-P487.aspx|The Ron Paul Collection}}

* Mises Review: [http://mises.org/misesreview_detail.aspx?control=335 ''The Revolution: A Manifesto''] by [[David Gordon]], 2008
* [http://www.hachettebookgroup.com/titles/ron-paul/the-revolution/9780446537520/misesinsti-20 ''The Revolution: A Manifesto''] on the [http://www.hachettebookgroup.com/ Hatchette Book Group] website.
* [http://www.amazon.com/Revolution-Manifesto-Ron-Paul/dp/0446537527/misesinsti-20 ''The Revolution: A Manifesto''] on [http://www.amazon.com/ Amazon.com]

*[http://en.wikipedia.org/wiki/The_Revolution:_A_Manifesto ''The Revolution: A Manifesto''] on [http://en.wikipedia.org/wiki/Main_Page Wikipedia]

==Notes==
{{Reflist}}

[[Category:Writings of Ron Paul]]
{{DEFAULTSORT:Revolution: A Manifesto, The}}

Intellectual property learning materials

2013-04-26T17:59:11Z

John James: /* Courses */ added

This page lists useful learning materials about [[Intellectual Property]].

==Mises Wiki pages==
* [[Intellectual Property]]
* [[Costs of Intellectual Property]]
* [[Without Intellectual Property]]
* [[Copyright infringment]]
* [[Argumentation:Software patents]]

==Websites==
* Center for the Study of Innovative Freedom - Pro-Commerce & Anti-Monopoly
[http://c4sif.org c4sif.org]

* Against Intellectual Monopoly - Defending the right to innovate
[http://againstmonopoly.org againstmonopoly.org]

* QuestionCopyright.org - A clearinghouse for new ideas about copyright.
[http://questioncopyright.org questioncopyright.org]

==Books==
''[[Against Intellectual Property]]'', by [[Stephan Kinsella]]

''[[Against Intellectual Monopoly]]'', by Michele Boldrin and David K. Levine

==Articles & essays==
* {{md|3682|The Case Against IP: A Concise Guide|Stephan Kinsella|}}
* {{md|4848|Ideas Are Free: The Case Against Intellectual Property|Stephan Kinsella|}}

==Collections==

* [http://archive.mises.org/1771/ Intellectual Property at Mises.org]
* [http://c4sif.org/resources/ C4SIF.org resources]
* [http://mises.org/Community/forums/p/28223/458111.aspx#458111 Writing & creative works without IP]
* [http://mises.org/Community/forums/p/30389/484247.aspx#484247 Patent Laws in Pharmaceuticals]

==Videos==
* [http://www.youtube.com/playlist?list=PL82F372312E095FA9 "Intellectual Property" (IP) and Innovation] playlist
* [http://www.everythingisaremix.info/watch-the-series Everything Is a Remix] official site
* ''Patently a Problem'' - [http://www.youtube.com/watch?v=DlS0Sx1dok8 trailer] [http://www.youtube.com/watch?v=EMShaJv2KFw full film]

==Courses==
* [http://academy.mises.org/courses/ip-reconsidered-intellectual-property-austrian-economics-and-libertarian-theory/ Rethinking Intellectual Property: History, Theory, and Economics] at [[Mises Academy]]
** [http://libertarianstandard.com/2011/12/25/kinsellasrethinking-intellectual-property-course-audio-and-slides/ Course audios & slides]
* [http://academy.mises.org/courses/obama-patent-reform/ Obama's Patent Reform: Improvement or Continuing Calamity?] at Mises Academy

[[Category:Reading lists]]
[[Category:Intellectual property|*]]

Mises global

2013-04-19T06:14:57Z

John James: /* Links */ uniform, internal link

[[File:Mises Wiki globe.jpg|right|150px]]
'''Mises Global''' is the phrase used to designate the rise and proliferation of Mises Institutes in many countries and regions.

{{See also|Mises Institute|label 1=The original Mises Institute}}

==Links==
* '''Articles'''
** [http://www.mises.org.br/Article.aspx?id=998 "Mises Global"] by Joakim Kämpe, June 2011 (mention on Mises Blog [http://blog.mises.org/17196/on-the-global-march-of-an-idea/ here] & republished as Mises Daily [http://mises.org/daily/5360 here])
** {{mb|15104|The Swedish Mises Institute|B.K. Marcus|December 2010}}

* '''Resources'''
** [http://mises.org/page/14/Foreign-Language-Materials-on-Austrian-Economics-and-Libertarianism Foreign-Language Materials]

* '''Sites'''
:*[http://MisesGlobal.org MisesGlobal.org]
** '''''North and South America'''''
:*[http://www.mises.org.br/ Mises.org.br] - [[Brazil]]
:*[http://www.mises.ca/ Mises.ca] - [[Canada]]
:*[http://misescolombia.com/ MisesColombia.com] - [[Colombia]]
:*[http://www.mises.ec/ Mises.ec] - [[Ecuador]]
** '''''Europe'''''
:*[http://www.vonmisesinstitute-europe.org/ vonMisesInstitute-europe.org] - [[Europe]]
:*[http://institutomises.org/ InstitutoMises.org] - [[Barcelona]], Spain
:*[http://rothbard.be/ Rothbard Institute] - [[Belgium]]
:*[http://www.mises.cz/ Mises.cz] - [[Czech Republic]] & [[Slovakia]]
:*[http://mises.ee/ Mises.ee] - [[Estonia]]
:*[http://mises.fi/ Mises.fi] - [[Finland]]
:*[http://www.misesde.org/ MisesDe.org] - [[Germany]]
:**[http://www.mises.de/ Mises.de]
:*[http://www.mises.is/ Mises.is] - [[Iceland]]
:*[http://www.rothbard.it/ Rothbard.it] - [[Italy]]
:*[http://vonmises.it/ vonMises.it] - [[Italy]]
:*[http://mises.pl/ Mises.pl] - [[Poland]]
:*[http://mises.org.pt/ Mises.org.pt] - [[Portugal]]
:*[http://mises.ro/ Mises.ro] - [[Romania]]
:*[http://mises.ru/ Mises.ru] - [[Russia]]
:*[http://mises.es/ Mises.es] - [[Spain]]
:*[http://www.mises.se/ Mises.se] - [[Sweden]]
:*[http://www.mises.ch/ Mises.ch] - [[Switzerland]]
:*[http://mises.org.ua/ Mises.org.ua] - [[Ukraine]]
** '''''Asia'''''
:*[http://www.mises.org.il/ Mises.org.il] - [[Israel]]
:*[http://mises.jp/ Mises.jp] - [[Japan]]
:*[http://www.misestr.org/ Misestr.org] - [[Turkey]]
** '''''Other'''''
:*[http://www.mises.org.au/ Mises.org.au] - Australian Mises Seminar
:*[http://www.mises.co.za/ Mises.co.za] - [[South Africa]]
:*[http://www.miseshispano.org/ Instituto Mises Hispano] - Spanish language Mises Insitute
:** [http://mises.org/Community/blogs/euribe/default.aspx Mises Daily en Español]

{{stub}}
[[Category:Mises Wiki]]

Mises on Money

2013-04-18T02:45:38Z

John James: /* See also */ added

{{Infobox book
| name = Mises on Money
| title_orig =
| translator =
| image = [[File:Mises_on_Money_cover.jpg|175px]]
| image_caption =
| author = [[Gary North]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Economics]]
| genre = [[Non-fiction]]
| publisher = [[Ludwig von Mises Institute]]
| pub_date = 2002
| english_pub_date =
| media_type = Digital
| pages =
| isbn = 978-1-61016-248-7
| oclc =
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''Mises on Money''''' is a book by American author [[Gary North]]. The text offers an explication of the work and theories of Austrian economist [[Ludwig von Mises]], in particular his work on [[money]].

==See also==
* ''[[The Theory of Money and Credit]]''
* ''[[Ludwig von Mises on Money and Inflation]]''
* ''[[What Has Government Done to Our Money?]]''

==Links==
{{store|https://mises.org/store/Mises-on-Money-Digital-Book-P10813.aspx}}
{{academy|http://academy.mises.org/courses/mises-money/|Mises on Money and Banking}}

* {{mr|6772|Resources page}} (including full text)
** [http://www.lewrockwell.com/north/mom.html Full text in HTML]

* Articles, essays and reviews
** {{md|5878|Mises on Money and Banking|[[Robert P. Murphy]]|January 2012}}
** {{md|5972|Mises on the Basics of Money|Daniel James Sanchez|March 2012}}
** {{md|5213|What Is Money?|[[Frédéric Bastiat]]|1849}}
** {{md|5935|Money and the State|[[Ludwig von Mises]]|''The Theory of Money and Credit'' (1912)}}

* Related courses
** [http://academy.mises.org/courses/mises-money/ Mises on Money and Banking] [[Mises Academy]] course by [[Robert P. Murphy]]

{{stub}}

[[category:literature]]

Mises global

2013-04-18T01:25:16Z

John James: /* Links */ added

[[File:Mises Wiki globe.jpg|right|150px]]
'''Mises Global''' is the phrase used to designate the rise and proliferation of Mises Institutes in many countries and regions.

{{See also|Mises Institute|label 1=The original Mises Institute}}

==Links==
* Articles
** [http://www.mises.org.br/Article.aspx?id=998 "Mises Global"] by Joakim Kämpe, June 2011 (mention on Mises Blog [http://blog.mises.org/17196/on-the-global-march-of-an-idea/ here] & republished as Mises Daily [http://mises.org/daily/5360 here])
** {{mb|15104|The Swedish Mises Institute|B.K. Marcus|December 2010}}

* Resources
** [http://mises.org/page/14/Foreign-Language-Materials-on-Austrian-Economics-and-Libertarianism Foreign-Language Materials]

*Sites
:*[http://MisesGlobal.org MisesGlobal.org]
:*[http://www.mises.org.au/ Mises.org.au] - Australian Mises Seminar
:*[http://www.miseshispano.org/ Instituto Mises Hispano] - Spanish language Mises Insitute
:** [http://mises.org/Community/blogs/euribe/default.aspx Mises Daily en Español]
:*[http://www.vonmisesinstitute-europe.org/ vonMisesInstitute-europe.org] - [[Europe]]
:*[http://institutomises.org/ InstitutoMises.org] - [[Barcelona]]
:*[http://rothbard.be/ Rothbard Institute] - [[Belgium]]
:*[http://www.mises.org.br/ Mises.org.br] - [[Brazil]]
:*[http://www.mises.ca/ Mises.ca] - [[Canada]]
:*[http://misescolombia.com/ MisesColombia.com] - [[Colombia]]
:*[http://www.mises.cz/ Mises.cz] - [[Czech Republic]] & [[Slovakia]]
:*[http://www.mises.ec/ Mises.ec] - [[Ecuador]]
:*[http://mises.ee/ Mises.ee] - [[Estonia]]
:*[http://mises.fi/ Mises.fi] - [[Finland]]
:*[http://www.misesde.org/ MisesDe.org] - [[Germany]]
:**[http://www.mises.de/ Mises.de]
:*[http://www.mises.is/ Mises.is] - [[Iceland]]
:*[http://www.mises.org.il/ Mises.org.il] - [[Israel]]
:*[http://www.rothbard.it/ Rothbard.it] - [[Italy]]
:*[http://vonmises.it/ vonMises.it] - [[Italy]]
:*[http://mises.jp/ Mises.jp] - [[Japan]]
:*[http://mises.pl/ Mises.pl] - [[Poland]]
:*[http://mises.org.pt/ Mises.org.pt] - [[Portugal]]
:*[http://mises.ro/ Mises.ro] - [[Romania]]
:*[http://mises.ru/ Mises.ru] - [[Russia]]
:*[http://mises.es/ Mises.es] - [[Spain]]
:*[http://www.mises.co.za/ Mises.co.za] - [[South Africa]]
:*[http://www.mises.se/ Mises.se] - [[Sweden]]
:*[http://www.mises.ch/ Mises.ch] - [[Switzerland]]
:*[http://mises.org.ua/ Mises.org.ua] - [[Ukraine]]

{{stub}}
[[Category:Mises Wiki]]

The Economics and Ethics of Private Property

2013-04-14T18:50:14Z

John James: /* Links */

{{Distinguish|The Ethics and Economics of Private Property}}

{{Infobox book
| name = The Economics and Ethics of Private Property
| title_orig =
| translator =
| image = [[File:The Economics and Ethics of Private Property 2nd edition cover.jpg|175px]]
| image_caption =
| author = [[Hans-Hermann Hoppe]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Ethics]], [[Philosophy]], [[Economics]]
| genre = [[Non-fiction]]
| publisher = Kluwer Academic Publishers
| pub_date = 1993 (1st edition)
| english_pub_date =
| media_type = Print
| pages = 265 p. (1st edition) 418 p. (2nd edition)
| isbn = 0792393287
| oclc = 27186762
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''The Economics and Ethics of Private Property''''' is an anthology of previously published writings by German-American economist [[Hans-Hermann Hoppe]] on the subject of [[private property]].

==See also==
* ''[[A Theory of Socialism and Capitalism]]''

==Links==
{{store|http://mises.org/store/Economics-and-Ethics-of-Private-Property-P288.aspx}}
* {{mr|860|Resources page}} (including full text)
** [http://mises.org/daily/4641 Excerpt]"Argumentation and Self-Ownership"

* [http://libertarianpapers.org/2011/1-hoppe-private-common-and-public-property/ "Of Private, Common, and Public Property and the Rationale for Total Privatization"] ([http://libertarianpapers.org/articles/2011/lp-3-1.pdf PDF])([http://libertarianpapers.org/articles/2011/lp-3-1.doc DOC]) (republished as Mises Daily [http://mises.org/daily/5042 here])
* Mises Review: [http://mises.org/misesreview_detail.aspx?control=304 "The Hoppeian Way"] by [[David Gordon]], Summer 2006 (republished as Mises Daily [http://mises.org/daily/2313 here])

* Authors Forum: [http://mises.org/media/1645 The Economics and Ethics of Private Property] lecture by [[Hans-Hermann Hoppe]], March 2006
* [http://mises.org/journals/aen/aen18_1_1.asp "Austrians and the Private-Property Society"] interview of Hans-Hermann Hoppe, 1995

* {{wplink}}

{{stub}}
{{DEFAULTSORT:Economics and Ethics of Private Property, The}}
[[Category:Writings of Hans-Hermann Hoppe]]

The Economics and Ethics of Private Property

2013-04-14T18:48:06Z

John James: added see also

{{Distinguish|The Ethics and Economics of Private Property}}

{{Infobox book
| name = The Economics and Ethics of Private Property
| title_orig =
| translator =
| image = [[File:The Economics and Ethics of Private Property 2nd edition cover.jpg|175px]]
| image_caption =
| author = [[Hans-Hermann Hoppe]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Ethics]], [[Philosophy]], [[Economics]]
| genre = [[Non-fiction]]
| publisher = Kluwer Academic Publishers
| pub_date = 1993 (1st edition)
| english_pub_date =
| media_type = Print
| pages = 265 p. (1st edition) 418 p. (2nd edition)
| isbn = 0792393287
| oclc = 27186762
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''The Economics and Ethics of Private Property''''' is an anthology of previously published writings by German-American economist [[Hans-Hermann Hoppe]] on the subject of [[private property]].

==See also==
* ''[[A Theory of Socialism and Capitalism]]''

==Links==
{{store|http://mises.org/store/Economics-and-Ethics-of-Private-Property-P288.aspx}}
* {{mr|860|Resources page}}
** [http://mises.org/daily/4641 Excerpt]"Argumentation and Self-Ownership"

* [http://libertarianpapers.org/2011/1-hoppe-private-common-and-public-property/ "Of Private, Common, and Public Property and the Rationale for Total Privatization"] ([http://libertarianpapers.org/articles/2011/lp-3-1.pdf PDF])([http://libertarianpapers.org/articles/2011/lp-3-1.doc DOC]) (republished as Mises Daily [http://mises.org/daily/5042 here])
* Mises Review: [http://mises.org/misesreview_detail.aspx?control=304 "The Hoppeian Way"] by [[David Gordon]], Summer 2006 (republished as Mises Daily [http://mises.org/daily/2313 here])

* Authors Forum: [http://mises.org/media/1645 The Economics and Ethics of Private Property] lecture by [[Hans-Hermann Hoppe]], March 2006
* [http://mises.org/journals/aen/aen18_1_1.asp "Austrians and the Private-Property Society"] interview of Hans-Hermann Hoppe, 1995

* {{wplink}}

{{stub}}
{{DEFAULTSORT:Economics and Ethics of Private Property, The}}
[[Category:Writings of Hans-Hermann Hoppe]]

A Theory of Socialism and Capitalism

2013-04-14T18:47:00Z

John James: added see also

{{Infobox book
| name = A Theory of Socialism and Capitalism
| title_orig =
| translator =
| image = [[File:A Theory of Socialism and Capitalism 2010 edition cover.jpg|175px]]
| image_caption = 2010 edition cover
| author = [[Hans-Hermann Hoppe]]
| illustrator =
| cover_artist =
| country = [[United States]]
| language =
| series =
| subject = [[Political economy]], [[Economics]]
| genre = [[Non-fiction]]
| publisher = Kluwer Academic Publishers
| pub_date = 1989
| english_pub_date =
| media_type = Print
| pages = 275 p.
| isbn = 0898382793
| oclc = 17873196
| dewey =
| congress =
| preceded_by =
| followed_by =
}}

'''''A Theory of Socialism and Capitalism''''' is a book by German-American economist [[Hans-Hermann Hoppe]]. The text was his first book authored in English, and presents the argument that there are only two possible archetypes in economic affairs: [[socialism]] and [[capitalism]], and that all systems are combinations of those two types.

Hoppe defines the capitalist model as pure protection of [[private property]], [[free association]], and [[Trade|exchange]] - no exceptions. All deviations from that ideal are species of socialism, with [[public ownership]] and interference with trade.

Within the structure of socialism, he distinguishes the left and right version. "Conservative" socialism favors high [[regulation]], behavioral controls, [[protectionism]], and [[nationalism]]. The "liberal" version tends more toward outright public ownership and [[redistribution]].

The consequences of socialism vary based on their degree and kind, but they have similarities: high costs, resource waste, low growth.

==See also==
* ''[[The Economics and Ethics of Private Property]]''

==Links==
{{store|http://mises.org/store/Theory-of-Socialism-and-Capitalism-A-P465.aspx}}
{{academy|http://academy.mises.org/courses/capitalism-and-socialism/|Capitalism and Socialism}}

* {{mr|431|Resources page}} (including full text)

* Articles, essays and reviews
** {{md|3780|A Theory of Socialism and Capitalism|[[Mark Thornton]]|October 2009}}

* Related courses
** [http://academy.mises.org/courses/capitalism-and-socialism/ Capitalism and Socialism] [[Mises Academy]] course by [[Art Carden]]

* {{wplink}}

{{stub}}
{{DEFAULTSORT: Theory of Socialism and Capitalism, A}}
[[Category:Writings of Hans-Hermann Hoppe]]

Argumentation:Paper money

2013-04-14T07:04:27Z

John James: DEFAULTSORT

{{Stub}}

This list attempts to gather arguments for and against [[Fiat Money|fiat money]] (often called paper money) and the [[inflation]]ary policies accompanying it; contrasted with free market [[Money#Commodity money|commodity money]] (also called natural money or hard money).

==Rising prices==
The [[Money#Production of money|production]] of money decreases the value of already existing units of money, therefore, money [[price]]s tend to rise.

This is true for any type of money; however, commodity money has alternative uses besides its monetary function, and it becomes cheaper for these purposes.

Fiat money, in turn, tends to be notoriously easy to produce in large amounts and has no other uses.<ref name="Hulsmann_money" />

===Costs of money production===
The high costs of [[Money#Commodity money|commodity money]] are said to be another argument for paper money.

But are they really a problem? If a money is harder to multiply, then it has, in fact, a natural [[insurance]] against loss of purchasing power - something, that is too often seen with paper.

Fiat money causes further costs, like bureaucracies, that regulate them and large numbers of experts kept busy watching [[central bank]]s and foretelling their policies.

There is nothing wrong, per se, in experimenting with a cheaper medium of money, just note, that all such experiments have failed. That may be the reason, why the proponents of fiat money never argue for competition, but want to establish it by force.<ref name="Hulsmann_fiat_money" />

===Long-term price instability and associated costs===
As [[Milton Friedman]] pointed out, "...other monetary economists and I took it for granted that the real resource cost of producing irredeemable paper money was negligible, consisting only of the cost of paper and printing. Experience under a universal irredeemable paper money standard makes it crystal clear that such an assumption, while it may be correct with respect to the direct cost to the government of issuing fiat money, is false for the society as a whole."

Under a commodity money, long-term interest rates displayed a remarkable stability. Long-term bonds were the investment of choice for "widows and orphans". In a fiat money regime the prices are unstable in the long term and significant costs arise as a consequence:
* a growing "hard money" industry
* the introduction of money market mutuals in the US, reduction of the role of commercial banks, deregulation of banking institutions and accompanying banking crises (such as the Continental Illinois, Ohio, and Maryland crises of the 1980s)
* development of public futures markets in foreign exchange and in financial instruments to deal with price uncertainty

Friedman concluded that these costs would not have arisen if the new paper monetary regime had not led to greatly increased [[uncertainty]] about interest rates and inflation."<ref name="Friedman_Resource">Milton Friedman. [http://www.jstor.org/stable/1833052 "The Resource Cost of Irredeemable Paper Money"], ''Journal of Political Economy'', Vol. 94, No. 3, Part 1 (Jun., 1986), pp. 642-647, Published by: The University of Chicago Press, referenced 2013-01-17.</ref>

===Complete loss of value===
The worst case scenario for a commodity-based money is the loss of its monetary function (due to consumer choice, laws, etc.). It would lose part of its demand and hence command a lower price on the market.

Should a paper money stop being used as money, it would lose its only function and become essentially worthless.<ref name="Hulsmann_fiat_money" />

==Economic Growth==
There are claims, that '''[[economic growth]]''' is only possible with a corresponding growth in the money supply - otherwise, how could be the additional goods and services bought? Simply: any given amount of goods and services can be exchanged against any amount of money. If more goods are produced, their money prices will sink.

There are of course technical limitations. Assuming a long period of robust economic growth, some forms of money (like gold coins), could possibly shrink enough to be impractical. But this is no problem on the free market - people can switch to another form of money, like silver coins. In a free market, there are strong incentives to do this change swiftly and efficiently.

Some might object, that if businesses are forced to sell for lower prices, these could be too low if compared to their costs, leading to their bankruptcy. It is forgotten, that the businessman could foresee the sinking prices and strive to lower their costs appropriately. This is standard procedure in times of stable and sinking levels of prices, as is observed in dynamically growing industries (computers, IT, etc.), where such a situation is normal.<ref name="Hulsmann_fiat_money" />

===Greater growth===
It is claimed, that by lowering the interest rate, paper money can help grow the economy. Offering this newly printed money as credit raises its supply thereby making more of it available for businesses. They will invest or circulate this new money and the economy will grow.

There are too many mistakes to answer in one place. For one, capitalists invest only if they can earn some concrete rate; expectations of rising prices will make them ask for more.

Will the printing of new money lower interest rates? And if so, will it create more growth?
* If the businessmen estimate the rise in prices exactly, it won't. The only effect will be a new structure of [[capital]] and [[production]]; some will make money off it, while others will lose.
* If the businessmen were to ''over''estimate the expected rise in prices, the interest rates would rise, depriving many of them of credit and again, cause a different structure of capital and production, but wouldn't make things better or worse. (Really? Need some clearing up here.)
* What if they ''under''estimate the expected rise in prices or are unaware of it? The real interest rate will decline and business may be easily persuaded to borrow more and invest more, beginning more projects. But they won't be able to finish them (or at least not under the same conditions). The amount of capital hasn't changed and much of it will be wasted.<ref name="Hulsmann_fiat_money" />

==Deflation==
'''[[Deflation]]''', defined as a "sustained decrease of the price level," benefits buyers and (potentially) creates problems for sellers and debtors. Central Banks attempt to avoid deflation by creating '''[[inflation]]''' (increasing the supply of money). They do this due to the unfounded fear that falling prices lead to a fall in demand which creates a detrimental effect or downward spiral in the economy. But is this fear rooted in reality?

* There is no conclusive '''historical evidence''', that deflation is damaging to long-term economic growth.

* An '''unexpected strong deflation''' can motivate people to alter their behavior, that much is true. But that does not necessarily mean a slowing down of production in general. The consumers will eventually buy the goods and services they desire, even if observing constantly sinking prices: they would like to enjoy them sooner rather than later (the fact of [[Time preference|time preference]]). It can be therefore expected, that consumption during a deflation period will continue at a marginally slower rate, but the total production will actually grow: because resources unused for consumption are saved, and as such serve to increase production further. (Note: any abrupt change in the structure of consumer demand and prices will tend to have negative effects. It can be also said that a) in a free market, price changes are likely to be smoother and b) an inflationary system is not exactly immune to these shocks either.)

* '''clearing [[debt]]s''' can be harder, in a strong unexpected deflation as prices fall while nominal debt value remains the same. This can be a problem for companies going bankrupt in case of a large deflationary shock. But ultimately, the resources they control will not be lost, they will merely change hands.

* a deflation can indeed '''damage the [[Bank|banking industry]]''', as it complicates the clearing of debts. If one assumes a string of bankruptcies on the side of customers, a bank's liquidity may be stretched to such a degree, that it goes bankrupt itself. (Again, a 'dramatic change', no matter its cause can have negative effects.) However, it is pointed out, that the negative effects will impact industries who mostly profit from inflation, like banks and highly indebted companies. This problem will eventually adjust itself. A reduction in bank credit does not destroy any resources, it merely guides them to other applications. The dangers of deflation are not as terrible as it is claimed.<ref name="Hulsmann_fiat_money" />

* See also [[#Sticky prices|sticky prices]].

* See also [[#Greater growth|greater growth]].

===Sticky prices===
Let's imagine, that powerful unions were able to raise wages in such a way, that the companies were unable to employ a large part of their employees profitably, resulting in mass unemployment. A good dose of inflation could raise the price level and make them employable again, problem solved!

Well, not quite. This 'solution' assumes, that the unions fail to recognize the inflation and won't raise their demands appropriately - which, historically, they eagerly did.<ref name="Hulsmann_fiat_money" />

An example are nationalized industries.<ref name="Harris_inflation">[[Wikipedia:Ralph Harris, Baron Harris of High Cross|Lord Ralph Harris]]. [http://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_ralphharris.html "Lord Ralph Harris"], ''Commanding Heights'', Interview conducted 2000-07-17, referenced 2009-05-19. ''"One of the important consequences of nationalized industries was that they were subsidized by the government because they could not be allowed to fail. A nationalized concern cannot, could not go bankrupt -- the government is the underwriter of the whole of the enterprise. When unions understood that, and could see could work with annual wage increases, the government then had to maintain a constant loosening of the monetary/fiscal control to allow prices to rise to cancel out the wage and price increases."''</ref>

(It is not considered here, whether such union activity is possible in the free market, or requires legal privileges. The moral implications of the inflationary strategy are also not considered - it is misleading, in other words, lying; and how compatible it is with ideals as transparency and honesty in public affairs.)

===Unemployment===
'''Minimum wage laws''' cause [[unemployment]]. If they are combined with a deflation, this effect would be even stronger. This was also the case in the [[Great Depression]]. However, this is not an argument against a free market.<ref name="MacKenzie_unemployment">D.W. MacKenzie. [http://blog.mises.org/archives/009042.asp "Why We Should Worry about Deflation"], ''[[Mises Institute]]'', referenced 2009-05-19.</ref>

==Hoarding==
Everyone is a holder of money to some degree.

'''Hoarding''', or excessive holding of money is supposed to be a great danger paper money will prevent. But how can it cause damage to the economy? Any amount of money can serve for exchange. In the worst case, if a large part of the population became hoarders, they might cause a given currency to be replaced by another. (Note, that there are perfectly reasonable AND moral reasons to hold large amounts of money. Also, hoarding is subjectively defined and the only way to find out whether someone is hoarding is to analyze each case on its own. Acting against hoarding in general can complicate the lives of many.)

What if the government attempts to raise the supply of money to stop the hoarding? More money will push to create higher prices, which may motivate the 'hoarders' to hoard even more.<ref name="Hulsmann_fiat_money" />

===Holding money===
According to some authors, not only hoarding, but holding money in general is unproductive and detrimental to the economy. Some make a softer claim: that an (unanticipated) increase in the demand for money "pushes the economy below its potential".

Holding [[money]] is useful. Because it can be employed for the instant satisfaction of the widest range of possible needs, it provides its owner with the best possible protection against [[uncertainty]]. In the real world, there is always uncertainty. To the extent a man's perception of uncertainty increases, so will his holdings of money. This is investment into the removal of perceived uncertainty: the person will be better prepared to face an uncertain future.

Even if all or most people would attempt to increase their cash holding, the physical production structure would be unaffected. With people striving to increase the size of their cash holdings, the money prices of goods will be bid down, and the purchasing power per unit money will rise. This results in a higher purchasing power of money and lower prices of goods.<ref name="Hoppe_holding">Hans-Hermann Hoppe. [http://mises.org/story/3449 "The Yield from Money Held" Reconsidered], ''[[Mises Institute]]'', posted 2009-05-14, referenced 2009-05-17.</ref>

Holding more money can have the very beneficial effect of increasing the degree of financial liquidity in the economic system. The higher is the degree of such financial liquidity, the less is the danger of insolvencies and bankruptcies and the greater is the security against any need for further increases in cash holdings. Therefore, increases in the demand for money for holding are self-limiting.<ref name="Reisman_deflation">George Reisman. [http://mises.org/daily/1298 "The Anatomy of Deflation"], Mises Daily, August 2003, referenced 2010-03-09.</ref>

==Transfer of wealth==
The positive effect of "having more money" benefits the producer of money and those getting it first; while the negative effects impact the latecomers. This redistribution of wealth may be limited to some degree (for example by doing business with those that get the money sooner), but cannot be avoided.<ref name="Hulsmann_money" />

(The question, whether the transfer of wealth is desirable, is ethical, not economical in nature.)

==Stability==
Stability of money appears to be a reasonable demand, In the classical meaning, it meant a stable composition of money. But to many it is the '''purchasing power''', that should be stable. Money stable in the old way tends to have a stable purchasing power as well; and the free market allows its participants to avoid rapid fluctuations in the value of money (not that there were so many - the largest upswing in precious metals in history stayed well below regular growth rates of paper currencies).

Perhaps it is "fine tuning" of the purchasing power of money, called for by many, led by the economist [[Wikipedia:Irving Fisher|Irving Fisher]], that is desirable. It failed in practice; evidenced by an unprecedented fall in value and fluctuations. If so, could it be done better some day and is it desirable?

The problem is, the "purchasing power of money" doesn't and can't have a clear and impartial definition. Any choice of goods and their relations, that should represent the it, is completely arbitrary and as an average of many values may not apply any particular person - some people may experience rising prices, others a drop. Those, that create the definition of purchasing power (and have to do so every year anew) are granted a large, arbitrary power.<ref name="Hulsmann_fiat_money" />

===Money as Measure===
[[Wikipedia:Bartholomew of Lucca|Ptolemy of Lucca]] argued that the alteration of coinage "would work to the people’s detriment, since money should be the measure of things . . . but the more the money or coinage is changed the more the value or the weight changes." The community would lose through alterations of the coinage because such alterations change a standard measure. This harm corresponds to the damage created by meddling with measures of length, temperature, etc. This applies to any alteration of money by the government.<ref name="Hulsmann_Ptolemy">[[Wikipedia:Bartholomew of Lucca|Ptolemy of Lucca]], On the Government of Rulers (Philadelphia: University of Pennsylvania Press, 1997), p. 134; referred to by Jörg Guido Hülsmann in [http://www.mises.org/books/moneyproduction.pdf "Ethics of Money Production"], online version, Chapter 3 Money within the Market Process, p.73 n.20, see also Chapter 6, p.99 n.13. Referenced 2009-05-31.</ref> [[Friedrich Hayek|Hayek]] also noted, that it upsets the reliability of accounting and will show spurious profits in excess to true gains. A wise manager could take this into account while calculating profits - but the tax authorities won't agree and will tax all the pseudo-profits. This taxation simply confiscates of some of the substance of capital, and in the case of a rapid inflation may become a very serious matter.<ref name="Hayek_accounting">[[Friedrich Hayek]]. [http://mises.org/pdf/austtrad.pdf "The Austrian Theory of the Trade Cycle and other essays"], "Can We Still Avoid Inflation?", p.84, referenced 2009-10-25.</ref>

==Debtors==
It is often asserted, that higher money prices benefit debtors, as it lowers the relative value of their debts. This may not always be the case: if the lender's estimate of the rising prices is too high, the debtor may end up paying more on account of the expected inflation.<ref name="Hulsmann_money">Jörg Guido Hülsmann. [http://www.mises.org/books/moneyproduction.pdf "Ethics of Money Production"], online version, Chapter 3 Money within the Market Process, referenced 2009-05-17.</ref>

(The question, whether the benefiting of debtors is desirable, is ethical, not economical.)

==Ethical Arguments==
While ethical considerations are not part of economical analysis, they are nonetheless relevant to the discussion. For several authors (Rothbard, Hülsmann) it is a major concern.

===Force===
No paper currency was produced in the free market, it was always forced on its users by government decree. This curtailing of civil liberties, in particular the freedom of association and freedom of contract alone makes a strong argument against fiat money.<ref name="Hulsmann_fiat_money">Jörg Guido Hülsmann. [http://www.mises.org/books/moneyproduction.pdf "Ethics of Money Production"], online version, Chapter 4 Utilitarian Considerations on the Production of Money, referenced 2009-05-17.</ref>

==Other Arguments==

===Historical impact===
Mises argues<ref name="Mises_decline">Ludwig von Mises. [http://mises.org/humanaction/chap30sec2.asp "Observations on the Causes of the Decline of Ancient Civilization"], Chapter XXX. Interference with the structure of prices, ''[[Human Action]]'', online edition, referenced 2009-05-17.</ref>, that the debasement of money was part of the reason why the ancient civilization of the Roman Empire has collapsed.

[[Nicole Oresme|Oresme]] hints at a similar conclusion.<ref name="Oresme_decline">[[Nicole Oresme]], [http://mises.org/books/oresme.pdf "The De Moneta of Nicholas Oresme and English Mint Documents"], Chapter 18, p. 29. ''"If the Italians or Romans did in the end make such alterations, as appears from bad ancient money sometimes to be found in the country, this was probably the reason why their noble empire came to nothing. It appears therefore that these changes are so bad that they are essentially impermissible."'' Referenced 2009-05-17.</ref>

===Growth of the state===
Inflation benefits the state on the expense of its population, and on the expense of lower levels of government. It is the economic driving force for the growth of the centralized state, and allows it monopolize more functions than under a natural production of money. This increases the influence on its citizens and weakens other groups.

The printing of money allows the state to act without support from the population, or against their will. To many philosophers, a government taking the property of its citizens arbitrarily is rightfully called a tyranny.<ref name="Hulsmann_ethics_inflation">Jörg Guido Hülsmann. [http://www.mises.org/books/moneyproduction.pdf "Ethics of Money Production"], online version, Chapter 13: The Cultural and Spiritual Legacy of Fiat Inflation, referenced 2009-07-15.</ref>

Inflation pushes taxpayers into higher income brackets and so leads to unlegislated tax increases. It was estimated, that in 1973 was the U.S. government's revenue from inflation more than $25 billion<ref name="Schuettinger_Price_controls">Robert L. Schuettinger and Eamonn F. Butler. "[[Forty Centuries of Wage and Price Controls]]", Chapter 1 - Ancient World, p. 9-18, referenced 2009-08-14.</ref> (compare against total receipts of that year: $359.5 billion<ref name="Budget_receipts">[http://www.whitehouse.gov/omb/budget/fy2010/assets/hist15z1.xls "Table 15.1—Total Government Receipts in Absolute Amounts and as Percentages of GDP: 1948–2008"], website of the Office of Management and Budget, referenced 2009-08-14.</ref>).

===War===
Paper money makes it possible to prolong war. People grow eventually tired of war and will try to resist further expenses of the state of it. The state can simply print the money and ignore the will of its citizens. This was reported to be the case in both World Wars, prolonged by months, if not years.

If everything is allowed in war (and e.g. the just war theory says otherwise), one should note there are others, less dangerous means to gather funds available.

Some might say, that a state is better informed about the war than the citizens. But isn't exactly that the role of political leaders, to inspire and inform the citizenry?<ref name="Hulsmann_ethics_inflation" />

===Moral Hazard===
{{Main|Moral hazard}}
Forced inflation is inherently unstable as it turns moral hazard and irresponsibility into an institution. The slow decline creates a "race to the bottom" in financial institutions and leads to repeated economic crises.<ref name="Hulsmann_ethics_inflation" />

===Moral consequences===
[[Money]] is one of the primary measures of value in any society. As such, money is a central source of stability, continuity, and coherence in any community. By making money worthless, inflation threatens to undermine and dissolve all sense of value in a society. Consider what happens to our lives when we are forced to take our money purely on faith and that faith is betrayed by the government.

From an analysis of [[hyperinflation]], several consequences are observed:<ref name="Cantor_Hyperinflation">Paul A. Cantor. [http://mises.org/journals/rae/pdf/RAE7_1_1.pdf "Hyperinflation and Hyperreality: Thomas Mann in Light of Austrian Economics"], The Review of Austrian Economics Vol.7 No.1 (1994), referenced 2010-01-25.</ref>
* people must concentrate more on the economic facts of life
* government interventions lead to others, interfering with the market, but people learn to work around them
* "[[flight into real goods]]" - the striving to quickly exchange depreciating money for real goods
* the transfer of wealth disrupts the social order, and hard-working people can easily end up in poverty
* a larger number of speculators
* future becomes uncertain and unpredictable
* authority of the older generation is discredited and power turns over to the youth
* a rising number of substitutes and products of lower quality
* while the rate of inflation differs, it affects every single country, and is the most pervasive economic fact of our time

==References==
{{Reflist}}

==Links==
* James Kimball, [http://mises.org/journals/qjae/pdf/qjae8_3_4.pdf "The Gold Standard in Contemporary Economic Principles Textbooks: A Survey]" (pdf), Quarterly Journal of Austrian Economics 8, no. 3 (2005). (An overview of the most widely accepted present-day criticisms of natural money.)
* Ludwig von Mises, [http://mises.org/books/Theory_Money_Credit/Contents.aspx "The Theory of Money and Credit]" (1912). (The fundamental issues related to sound money that are crucial for a market economy.)
* Murray N. Rothbard, [http://mises.org/money.asp "What has Government Done to Our Money?"] (1964).
* Murray N. Rothbard, [http://mises.org/books/fed.pdf "The Case Against the Fed"] (pdf) (1994).
* Mark Thornton, [http://mises.org/journals/scholar/Thornton16.pdf "Mises vs. Fisher on Money, Method, and Prediction: The Case of the Great Depression"] (pdf).
* Jörg Guido Hülsmann, [http://mises.org/books/deflationandliberty.pdf "Deflation and Liberty"] (pdf).

[[Category:Argumentation]]
[[Category:Money]]
[[Category:Banking]]
{{DEFAULTSORT:Paper money, Argumentation}}

For and against paper money

2013-04-14T07:03:41Z

John James: John James moved page For and against paper money to Argumentation:Paper money

#REDIRECT [[Argumentation:Paper money]]

Argumentation:Paper money

2013-04-14T07:03:41Z

John James: John James moved page For and against paper money to Argumentation:Paper money

Argumentation:Gold

2013-04-14T07:00:56Z

John James: DEFAULTSORT

'''[[Gold]]''' is a chemical element and precious metal used for coinage, jewelry, and other arts since the beginning of recorded history.

==Gold as Money: FAQ==

===There simply is not enough gold for it to be used as money.===

This is just like saying “we cannot possibly measure the size of microbes because inches are too large”. An excellent counterpoint to this line of thinking is to ask “what amount of gold will make it acceptable for use as money?”

Economist [[Hans-Hermann Hoppe]] writes:

<blockquote>Once a money is established, any stock of money becomes compatible with any amount of employment and real income. There is never any need for more money since any amount will perform the same maximum extent of needed money work: that is, to provide a general medium of exchange and a means of economic calculation by entrepreneurs.<ref>{{Citation
| last = Hoppe | first = Hans-Hermann | author-link = Hans-Hermann Hoppe | title = The Misesian Case Against Keynes | publisher = [[Ludwig von Mises Institute]] | series = Dissent on Keynes, A Critical Appraisal of Economics | volume = | year = 1992 | chapterurl = | pages = 199-223 | url = http://mises.org/daily/2492#i2}}</ref></blockquote>

The total amount of gold that has ever been mined is 142,000 tonnes. If half of that gold disappeared, it would still be viable to use as money, and prices of goods would simply adjust downward to fit the quantity of money.

However, one could ask the question, "Could one ounce of gold serve as the monetary base?", or "If gold became as common as aluminum, would it still be useful as money?" Certainly the effort you'd have to put into buying a car (microscopes, nanotubes in the first case, perhaps a crane in the second) would change, and whatever means you are using to store your own money would have to adjust, but clearly, the answer is yes.

Similarly, if gold, which is a useful commodity is found to cure cancer, the non-monetary value of gold would cause a shift in the desirability to use it as currency... rather than a life saving cure.

A fundamental tenet to the Austrian analysis is an understanding of the origin of money. Gold became the most useful commodity to use as currency because of its particular characteristics. No one decided to use gold, it was just the best thing available at the time, and perhaps it still is.

The suitability of gold as a monetary base is the result of a number of different market factors. One of the factors is the value per weight. If it falls to that of aluminum or lead, then storage costs alone will undercut the usefulness of this element as currency. Silver may take its place. The fundamental truth, however, is that the commodity chosen by the market should be the one in use as currency.

The market seems to choose gold, and the shifts in its supply and value over the generations have not deterred them. One thing that people trust about gold is the relatively stable supply of it. It makes the value of gold somewhat predictable. A large shift SHOULD result in a market evaluation, but historically, these shifts have been fairly stable.

However, saying that "ANY" amount of gold will be enough to act as a medium of exchange misses the point. The market is fully capable of running on gold, but it wouldn't have evolved that way if gold did not have the characteristics that make it ideal for monetary exchange. If you posit a RADICAL change to those characteristics, such as supply, you will cause the market to re-evaluate its usefulness.

If India acquired ALL of the gold, that wouldn't mean we had no alternatives for a monetary base. All land and capital can serve as money, because money is just a type of capital. Indeed, land or commodity baskets may be preferred by the market outside an environment of market interference. Gold is a fantastic currency base, but it is far from the only one.

===The price of gold is way too low for it to be viable===
:i.e. ''At current market prices, all the mined gold on earth is worth $4.5 trillion. This is much less that all the currency that has been printed in the whole world!''

The price of gold in terms of pieces of paper is irrelevant. After all, fiat currency notes can be printed with very little effort at all. As gold catches on as money again, its usefulness and therefore its value will rise. The 4.5 trillion number is now dated, and perhaps 9 trillion is more accurate, and this is because more and more people are realizing that gold makes a better currency than fiat currency.

===What’s stopping you from using gold as money now?===

[[Legal tender]] laws. Central bank money is legal tender for all debts, public and private. Your taxes are payable in central bank money. Contracts in gold coins will not be defended in the same way as contracts in dollars or euros (e.g. if somebody defaults on a gold contract, compensation may be payable in central bank money)

===The money supply must grow at the same rate as the economy.===

No it doesn’t. Prices are not independent of the money supply. The quantity of the money supply overall does not matter (See 1.). If the amount of goods and services increases, while the money supply stays fixed, prices of all goods and services will fall.

===But deflation is bad, isn’t it?===

:i.e. ''If the purchasing power of money constantly rises, doesn’t that mean an end to investment? Entrepreneurs will surely prefer to safely hide their money under the matress instead of taking the risk of investing.''

Falling prices are surely a good thing!

The answer to the second question is no. While it is certainly “risk-free” to keep your money under the bed, it comes with a very real opportunity cost. Investors have a peculiar trait: they prefer goods in the future to goods in the present.. In other words they forego consumption today and prefer a larger return later.

If in a [[deflation]]ary economy, a nominal investment (i.e., $1) becomes $1.10, when it is repaid it compounds the real return (i.e., the purchasing power of $1.10 is now $1.21)

The desire for future goods will increase the desire for investment.

===When did falling prices ever coincide with economic prosperity?===

The period between 1873 and 1896 in Germany and the United States was a time of deflation. Prices for goods fell at an annualised rate of 1.6%. Gross Domestic Product grew at an annualised rate of 3.6%.

Innovations in manufacturing, chemistry and railroads made the 1880s the most productive decade in the history of the United States - and one of the most prosperous.

Falling prices have been also recorded in the computer industry and appliances, which have gone down in price dramatically over the years even as sales have risen higher and higher. The companies have gotten better and better at doing what they do, and have been able to make profits even in the face of continual price declines.

===What is so special about gold?===

Austrian economists do not support the [[gold standard]] because it has some mystical properties. As the economy moved from barter to exchange based on money, gold came to be widely accepted as the best medium of exchange.

In his book ''[[What Has Government Done to Our Money?]]'', [[Murray Rothbard]] notes:

<blockquote>Historically, many different goods have been used as media (medium of exchange): tobacco in colonial Virginia, sugar in the West Indies, salt in Abyssinia, cattle in ancient Greece, nails in Scotland, copper in ancient Egypt, and grain, beads, tea, cowrie shells, and fishhooks. Through the centuries, two commodities, gold and silver, have emerged as money in the free competition of the market, and have displaced the other commodities.</blockquote>

It is not for any economist to decide what should be used as money. Our monetary history suggests that gold was established by the market as the best form of money. If something else becomes a better form of money, people should be free to use it.

==See also==
* ''[[The Case for a 100 Percent Gold Dollar]]''
* ''[[Deflation and Liberty]]''

==References==
* Measuringworth.com (charts and figures)

==Notes==
{{reflist}}

==Links==
* [http://www.garynorth.com/public/10027.cfm "Anti-Gold Fool"] by [[Gary North]], September 2012
* {{md|5379|The Gold Standard: Myths and Lies|[[Robert P. Murphy]]|June 2011}}
* [http://www.lewrockwell.com/north/north177.html "The Myth of the Gold Standard"] by Gary North, May 2003
* {{md|4153|The Gold Standard|[[Ludwig von Mises]]|1949}}
* {{md|3729|Gold vs Paper|Ludwig von Mises|July 1953}}

[[Category:Argumentation]]
{{DEFAULTSORT:Gold, Argumentation}}

Argumentation:Interventionism

2013-04-14T07:00:49Z

John James: DEFAULTSORT

A completely [[Free market|free]], [[Capitalism|capitalist]] economy has never existed anywhere in the world. The closest the world came to a free market was during the [[Industrial Revolution]] in Great Britain and during the late 19th century in the United States. The Industrial Revolution was a period of unprecedented economic growth and unimaginable improvements in quality of life. In less than two hundred years, the life of most people in the Western world changed from a a short life filled with poverty, plague, and near-constant war to a modern life that even the kings of medieval Europe couldn’t have imagined. This miracle was made possible by the philosophical and political ideals formed during the [[Enlightenment]], and the freedoms demanded and fought by the philosophers, statesmen, and entrepreneurs of Western civilization. Yet the Enlightenment also laid the sees for the collectivist and materialist ideology behind socialism, which struck the first major blow against capitalism with the Sherman Antitrust Act of 1890.

==The rise of interventionism==
The assault on free markets was intensified by [[Herbert Hoover]], who imposed unprecedented regulations of Wall Street to eliminate "vicious speculation", regulated labor markets, and created government works programs. [[Franklin Delano Roosevelt|Roosevelt]] inherited these programs and created numerous government agencies which made the financial industry the single most regulated industry in the economy and turned an economic recession into the [[Great Depression]]. The [[Federal Reserve]] was supposed to stabilize the currency, the [[FDIC]] was supposed to prevent bank runs, the [[SEC]] was supposed to be stop shady investments, [[Fannie May]] and [[Freddie Mac]] were supposed to make homes affordable to everyone. Yet these restrictions on capitalism had the opposite effect of their intended purpose: the dollar has lost 95% of it’s value, the SEC is the main cause of corruption in Wall Street, and housing prices are unstable and highly inflated.

==Interventionism is a cycle of wealth destruction==
Economic interventionism, also known as statism, exists in every mixed economy – a society in which the government interferes with market economy. In an interventionist economy, the state takes wealth away from from some enterprises and transfers it to other organizations or individuals. Whether it does so through [[tax]]ation, [[corporate welfare]] and [[bailout]]s, monopoly privileges, wage and [[price controls]], trade restrictions and [[tariffs]], currency [[inflation]], [[antitrust]] regulations, state-ownership of businesses, or "make work" programs, the effect is the same: to punish virtue and competence and reward vice and waste.

All the values created by a business are possible only because its customers value them sufficiently to pay for them. To the extent that any individuals voluntarily exchange value for value without harming anyone else, their actions benefit themselves and harm no one. However, in an interventionist state, the product of those individuals is seized and transferred to those who did not earn it. This is a vicious cycle, because it rewards those in the public and private sector who manipulate the state to seize unearned benefits and punishes the productive individuals who focus on creating values and create products and services that consumers want.

The more the looters seize, the fewer wealth is available to producers. The more productive businesses fail or move elsewhere, the heaver the burden is on those who remain. The more money is taken from the producers, the greater the incentive for the lazy to skim from their labor. When the burden of stealing sufficient wealth outright becomes too unpopular, politicians resort to stealing it by printing money, until the currency of the country becomes worthless, trade becomes impossible, and productive activity grounds to a halt. Inevitably, it is the executives of the productive businesses who politicians blame for the crisis their own policies created.

==Entrepreneurs and CEO’s are the unrecognized heroes of the modern world==
Capitalism cannot guarantee that all our needs will be provided for – no system can turn mere wishes into reality. But it does give entrepreneurs the incentive to compete to provide the best possible service they can. The brief flowering of freedom during the 19th century created the wealthy, industrial society in which we now live in – but it is being destroyed from within by the collectivist ideology of interventionism. When political connections rather than consumers decide who is allowed what values should be created, entrepreneurs have no incentive to improve their products or to try bold new techniques, and instead spend their resources trying to bribe politicians. Politicians can force prices to be artificially low, but they cannot lower costs or substitute for the creative risk taking that drives the economy – they can only drive the remaining wealth creators out of existence.

==Notes==
Note: this page was based on [http://oneminute.rationalmind.net/interventionism/ The One Minute Case Against Interventionism], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category: Argumentation]]
{{DEFAULTSORT:Interventionism, Argumentation}}

Argumentation:Wage and price controls

2013-04-14T07:00:41Z

John James: DEFAULTSORT

A '''job''' is a contract between two parties, in which one party agrees to provide certain services on a certain schedule in exchange for payment from the other party. By definition, an employee agrees to do job for a particular wage by his own voluntary consent.

'''[[Price controls]]''' are government attempts to fix prices for commodities and services at a height different from what the unhampered market would have determined.

==What determines wages? Can employers pay workers whatever they want?==
A wage is the [[price]] an employer pays for the services his employee. While the two may negotiate any wage they come to mutual agreement on, the mutual self-interest of both and market forces intersect at a market-set price that represents the intersection of their interests. Disregarding non-economic factors, an employer wishes to pay his employee as little as possible. The maximum amount he will pay however is the value of the marginal productivity a given worker provides. (The marginal productivity is the value per unit of time the worker provides to the employer.) If the worker refuses to work at or below his marginal productivity, then the employer will not hire him, since doing so will incur a loss. Conversely, disregarding non-economic factors, the employee wishes to be paid an infinite amount. The minimum wage he will actually accept is the marginal value of his labor. This can be measured in terms of the next-most useful value-producing activity the workers may engage in.

For example, suppose that my marginal productivity as a programmer is $30 per hour. I will accept any job paying above $30 an hour, but no job below it, since I can find an employer paying that much in another computer or tech-related industry. A fast-food worker might have a marginal productivity of say, $6 an hour – the value per hour that his labor creates for the business. From the employer’s perspective, I create $40/hour of value, and the fast food workers creates $7 of value, so he will be willing to hire us. (Assuming that no one is willing to provide the same value for a lower wage.) However, if I only provide $20 of value, the employer will not hire me, because he would incur an hourly loss of $10 in doing so. Similarly, if the fast food worker only provides $5 of value, he would not be hired either because he would cause a loss of $1 for each hour he works.

==Can the government increase wages when employers don’t pay enough?==
Suppose that the government imposed a [[minimum wage]] of $8. Would the fast food worker who provides a value of $7 per hour now be paid $8? No, he would lose his job – because keeping him would mean a $1 loss for each hour he works to his employer. All minimum wage laws have a similar effect – they cause everyone with a marginal productivity below the minimum wage to lose their jobs – most often teenagers and the very poor. Wage caps (including progressive income taxes) have a similar effect – they lead the most productive individuals of our society to retire early or forgo new opportunities — resulting in a lost opportunity for them, and for everyone who might have benefited from their ideas.

==What if the government creates a job by paying an unemployed worker to do make-work such as digging holes in the ground?==
Where would the money to pay for his wage come from? It would have to be taken by force from the remaining employed fast food workers and computer programmers. Everyone will be paid less to pay for the government workers, but has a job been created? No – now the fast-food employer has $1 less to pay to his other $8 employees, so he must fire some of them or go out of business. Each new $7 government worker costs at least one $7 privately employed worker. This is always a social loss because by definition, the government worker is less productive. If he were not, then the private business would voluntarily employ workers to perform his job. While a minimum wage causes everyone who produces less than the marginal productivity of the minimum to lose his job, each new government job causes at least one more productive worker to lose his job.

==If the government cannot raise wages, can it lower prices?==
Prices are determined by the [[marginal value]] of a given good, just as a wage is determined by the marginal productivity of an employee. Attempts to regulate the cost of goods have the same effect as wage controls: if the price is set below the cost of a good, producers will be unable to make any. Since different producers have different costs, lowering the prices of a good will decrease the percentage of producers able to supply them, until they can make none at all.

==So how can prices be lowered?==
The only way for prices to go down is to increase the productivity of workers. Productivity in the production of a good comes from the application of mental effort to the production of values. A [[profit]] (the difference between the value of a good to a consumer and the cost to produce it) is the reward of an entrepreneur for bringing about the new wealth he’s created. In the absence of government coercion, profits can exist only as long as men continue to create new values, or improving on existing ones. The only to make goods cheaper is to allow entrepreneurs the freedom to invest in improvements in the capital and labor methods used in production

==Doesn’t a more efficient product result in lost jobs for those who were replaced by automation or better processes?==
When oil lamps replaced candles, the cost of producing affordable lighting greatly decreased. In the absence of a government monopoly, competing lamp-makers quickly started making their own lamps, which brought the price decrease to the consumer. In the process of transitioning from candles to lamps, many thousands of candle-makers lost their jobs. However, oil lamps did create a new industry of their own and increased the prosperity of society as a whole, just as electric lighting did in the 20th century. Since consumers could buy cheaper lamps, they now had more money to spend on other things, creating new industries, and raising their overall standard of living.

Technological progress and capital accumulation has both created new careers that made us enormously more productive – we not only have a wider range of vocations to choose from but work far fewer hours.

==Can government "soften the blow" when all these candle-makers lose their jobs?==
In today’s world, the government would probably try to subsidize the candle or lamp-makers when their chief product became outdated. What would that subsidy accomplish? It would save the [[Candlemakers' petition|candle-makers jobs]] – but it would cost the jobs of everyone who stood to benefit from the increase wealth that came from cheaper lights. In the short term, the candle-makers might benefit – but in the long term, they would lose too, since they would lose the new, higher paying jobs the could have making electric lights and the new products the cheaper lights would allow consumers to afford. Meanwhile, the Thomas Edison’s, Graham Bells, Thomas Moore’s, and Bill Gates’ would be too busy working to pay off taxes to have the time or money for research.

Of course, we know that these inventors and entrepreneurs succeeded. But how many didn’t because they never got their first break in the field because of a minimum wage, or gave up before they tried because the red tape was too much, or the taxes too high, or they knew that the old, outdated industries would use the government to tax and regulate them out of existence? The real tragedy is that we will never know.

==References==
Note: this page was based on [http://oneminute.rationalmind.net/price-controls/ The One Minute Case Against Wage and Price Controls], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category:Argumentation]]
{{DEFAULTSORT:Wage and price controls, Argumentation}}

Argumentation:Capitalism

2013-04-14T06:58:26Z

John James: DEFAULTSORT

[[Capitalism]] is an economic system characterized by private or corporate ownership of [[capital good]]s, by [[investment]]s that are determined by private decision, and by [[price]]s, [[production]], and the distribution of goods that are determined mainly by [[competition]] in a [[free market]].

==Capitalism a social system based on the principle of individual rights==
A capitalist society is based on the recognition of individual rights, including property rights. Under capitalism, all property is privately owned, and the state is separated from economics just as it is from religion. Economically, capitalism is a system of laissez-faire, or free markets, where the government plays no part whatsoever in economic decisions.

==Capitalism is the only social system compatible with the requirements of man’s life==
To pursue the values necessary for his life a society, man requires only one thing from others: freedom of action. Freedom means the ability to act however one pleases as long as one does not infringe on the same and equal freedom of others. In a political context, freedom means solely the freedom from the initiation of force by other men. Whether it is by a theft, force, fraud, or government censorship, man’s rights can be violated only by the initiation of force. Because man’s life depends on the use of reason to achieve the values necessary for his life, the initiation of force renders his mind useless as a means of survival. To live, man must achieve the values necessary to sustain his live. To achieve values, man must be free to think and to act on his judgment. To live, man must be free to think. To be free to think, man must be free to act. In the words of Ayn Rand, "Intellectual freedom cannot exist without political freedom; political freedom cannot exist without economic freedom; a free mind and a free market are corollaries."

==Capitalism recognizes the inherent worth of the individual==
In a human society – one that recognizes the independence of each man’s mind – each individual is an end in himself. He owns his life, and no one else’s. Other men are not his slaves, and he is not theirs. They have no claim on his life or on the values he creates to maintain his life, and he has no claim on theirs. In a free society, men can gain immense values from each other by voluntarily trading the values they create to mutual gain. However, they can only create values if they are free to use their minds to exercise their creativity. A man is better living off on his own than as a slave to his brothers. Capitalism recognizes each man as an independent, thinking being.

==The individual is an end in himself==
Just as no individual has the right to initiate force against anyone, neither does any group of men, in any private or public capacity. It is immoral to initiate force against any individual for any reason. This includes the initiation of force for "the public good." The "public" is merely a collection of individuals, each possessing the same rights, and each being an end in himself. Any attempt to benefit the "public good" is an immoral attempt to provide a benefit to one group of individuals at the expense of another. In a free society, no individual benefits at the expense of another: men exchange the values they create in voluntary trade to mutual gain. The rule of law in a free society has just one purpose: to protect the rights of the individual.

==Capitalism leads to freedom and prosperity==
A free, capitalist economy has never existed anywhere in the world. The closest the world came to a free market was during the [[Industrial Revolution]] in Great Britain and during the late 19th century in the United States. The Industrial Revolution was a period of unprecedented economic growth and unimaginable improvements in quality of life. In less than two hundred years, the life of most people in the Western world changed from a a short life filled with poverty, plague, and near-constant war to a modern, comfortable existence that even the kings of medieval Europe couldn’t have imagined. Since 1820, the leading capitalist nations have increased their wealth sixteen fold, their populations more than four-fold, their productivity twenty-fold. Annual working hours went from 3,000 to less than 1,700 and life expectancy doubled from thirty to over seventy years.

Yet despite the undeniable material superiority of capitalist societies, its critics continue to attack it as inhuman and selfish. What the world lacks is not evidence of capitalism’s practical superiority, but a moral defense of a man’s right to his own life.

==Notes==
Note: this page was based on [http://oneminute.rationalmind.net/capitalism/ The One Minute Case For Capitalism], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category: Argumentation]]
{{DEFAULTSORT:Capitalism, Argumentation}}

Argumentation:Consumerism

2013-04-14T06:58:17Z

John James: DEFAULTSORT

[[Consumption]] is the enjoyment of consumers’ [[good]]s and the satisfaction of wants. '''[[Consumerism]]''' is the theory that an increasing consumption of goods is economically desirable.

==There is a tradeoff between economic growth and consumption==
Economic growth is made possible by forgoing current consumption. For example, consider the case of a teenager considering whether to [[Saving|save]] money for his future. If he spends his salary on toys and trinkets, he will never accumulate any savings. If, on the other hand, he minimizes expenses and saves money for college, he will forgo current consumption and [[Investment|invest]] in capital improvements. The same tradeoff applies to all consumers and producers: capital improvements require a sacrifice in current consumption to invest resources needed to expand future production.

==Production, not consumption drives economic growth==
The lack of a consumer culture is not an impediment to economic growth, as resources that are not consumed are invested into new markets and production [[capital]]. If a consumer forfeits a new car now to buy a better car at some point in the future, his savings are not lost. Instead of being directed into present consumption, his savings become the investment capital for new factories and R&D into cheaper and better cars. This is why such high economic growth is possible in "Asian tigers" such as [[Hong Kong]] and [[South Korea]] – high rates of savings support rapid technological progress and investment into industry at the cost of a much more frugal lifestyle than in the West.

==Capital has structure==
Politicians and the media treat [[GDP]] as a single number, but it is crucial to understand that producers face a choice between producing [[consumer good]]s and investing in [[intermediate good]]s used to create consumer goods. Those goods differ as well: a factory owner can invest in merely maintaining his factory, building a similar factory to expand production, or engaging in a long-term research and development program in a new product or production process. Thus, the goods produced by an economy can be one, two, or more level removed from consumer goods.

==Capital investments require savings and stability==
Economic and technological progress requires that entrepreneurs make long-term investments in intermediate production goods many levels removed from the consumer. In order for this to happen, two things are necessary: that consumers forgo current consumption to invest in future production, and that reliable long term predictions can be made about future savings rates and demand patterns.

==Monetary policy disrupts economic growth==
Governments control over the currency allows them to use monetary policy to achieve short-term economic goals, such as increasing GDP. But the consequences of artificially manipulating interest rates are disastrous. By expanding the money supply through manipulation of interest rates or sending money directly from the printing presses to banks and other corporations, the government is devaluing savings and redirecting them into increased consumer spending. This improves the economic statistics in the short run at the cost of wiping out the resources set aside for long-term capital improvements. Furthermore, the arbitrary nature of government intervention in the economy makes long-term predictions about future savings and demand impossible.

{{See also|Argumentation:ABCT}}

==Let the market direct savings and investment==
There is no single right answer to the tradeoff between current consumption and the savings available to invest in future production and increased economic growth. Every individual must choose for himself how to balance present spending with investments in his future. In a free market, the sum of individual savings rates becomes the real interest rate.

For the last few decades, America’s spending binge has been funded by foreign investment and rapid technological innovation, but ultimately, unless its consumption is drastically cut, and the income redirected into savings and repaying debts, its money will be increasingly worthless both at home and internationally. The dire consequences of [[hyperinflation]] can be seen in [[Zimbabwe]], where life expectancy has declined from 60 to 37/34 years, unemployment is at 80%, and as much as half the surviving population has left the country.

==References==
Note: this page was based on [http://oneminute.rationalmind.net/consumptionism/ The One Minute Case Against Consumptionism], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category:Argumentation]]
{{DEFAULTSORT:Consumerism, Argumentation}}

Argumentation:SEC

2013-04-14T06:58:11Z

John James: DEFAULTSORT

The '''[[U.S. Securities and Exchange Commission]]''' (SEC) is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the [[Security (finance)|securities]] industry, the nation's stock and options exchanges, and other electronic securities markets in the United States.

==Markets regulate themselves==
Long before the existence of the [[U.S. Securities and Exchange Commission|Securities and Exchange Commission]], medieval guilds and trading houses established common standards, accreditation agencies, and accounting rules that have evolved to the present day. The system of English common law has been evolving since the 12th century, and the accounting system used today was codified in 1495.

Numerous non-governmental bodies have continued to develop accounting rules and set auditing standards for public organizations. It is the American Institute of Certified Public Accountants, not the government, which sets ethical standards for the profession and U.S. auditing standards for audits of private companies; federal, state and local governments; and non-profit organizations.

Voluntary oversight organizations are embraced by their participants because they provide executives with a value – they allow them to discover waste and fraud and advertise honesty to partners and customers. Unlike government regulatory bodies, they are flexible, efficient, and competitive. When the compliance costs of accounting rules exceed their value, or when lax controls lead to unethical or risky behavior, the markets embrace new standards. The Securities Act of 1933 and the Securities Exchange Act of 1934 did not begin the process of regulating markets, but nationalized much of the auditing market and turned it over to politicians and bureaucrats.

==Regulations hinder competition and raise costs for investors==
The SEC subsidizes politically connected corporations at the expense of smaller firms, hindering innovation and encouraging corruption. Established corporations lobby the government to create burdensome regulations that smaller investment funds and markets cannot afford, thus creating coercive monopolies that raise profits a few firms at the expense of investors. Government bodies like the SEC, the [[MSRB]], the [[FTC]], the [[USITC]], the [[Fed]], the [[U.S. Treasury|Treasury]], the [[IRS]], the [[OTS]], and the state attorney’s offices issue hundreds of thousands of laws, rules, opinions, bulletins, comment letters and threats and require numerous reports, statements, forms, notices, and approvals that investment firms and public companies must obey. This creates an artificial scarcity of investment products that benefits large corporations and discourages savings and investment. Smaller companies cannot afford to raise money by issuing stock, and investors are forced to choose between public but expensive mutual funds and secretive and risky hedge funds with entry fees that only the rich can afford.

==The SEC creates corruption==
Rather than making Wall Street honest, regulatory agencies are the primary instruments of fraud and corruption on Wall Street. Politicians who control regulatory agencies have an incentive to use their power to extract benefits for themselves and their constituencies, rather than to keep markets honest and efficient. Power hungry politicians like Eliot Spitzer use the power of the SEC to go on crusades again innocent businessmen, and thus force regulatory bodies to hide the evidence of real corruption. By blocking outsiders from seeing its records, the agency is makes it harder for investors to discover real fraud.

The case of [[Bernie Madoff]] is a typical case study in how the SEC encourages fraud. Investors figured out that Madoff couldn’t possibly make the profits he claimed, and have been writing the SEC since 1999, urging them to put a stop to Madoff’s [[Ponzi scheme]]. However, Madoff used his close family ties to the SEC, and was instrumental in founding key regulatory bodies – and then nominated his family members to serve on their boards. When skeptical investors inquired about the irregularities in his fund, Madoff told them that the SEC had already investigated and cleared him over a period of three years.

While Madoff stole $50 billion dollars under their noses, the SEC’s budget surpassed $900 million dollars, and grew at record rates during the two Bush administrations.

==The SEC makes markets more volatile and risky==
By banning crucial market functions like short selling and "insider trading" the SEC hinders the market’s ability to react to new information, and makes markets more unpredictable and expensive.

==The SEC cannot even oversee itself==
While the SEC is charged with enforcing regulations like Sarbanes-Oxley, it consistently fails to control and report on its own processes and receives failing grades from the government’s own auditing body. This is not surprising – it has no incentive to be efficient or responsible to stockholders.

==Notes==
Note: this page was based on [http://oneminute.rationalmind.net/sec/ The One Minute Case against the SEC], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category: Argumentation]]
{{DEFAULTSORT:SEC, Argumentation}}

Argumentation:Short selling

2013-04-14T06:58:04Z

John James: DEFAULTSORT

''This page attempts to create an argumentation chain for [[short selling]]. It is not intended to cover every possible angle, merely to build up one or more ways to argue about this topic.''

'''[[Short selling]]''' is a method of profiting from a decline in a [[stock|stock’s]] price. It is the opposite of investing [[long (finance)|long]], where the investor profits from a rise in the stock’s price. "Going long" or hoping for a gain in the stock’s price is the more familiar method of investing. However, "going short" and profiting from a decline in a stock’s price is an equally valid method of investing.

==How does short selling work?==
"Shorting" a stock is a little more complicated than going long where a stock is simply bought and then sold later for either a gain or loss. Shorting stock first involves borrowing it from an existing owner. The short seller pays a fee to the owner to borrow his shares. Upon borrowing it, the stock is immediately sold and the proceeds are kept in the short seller’s brokerage account. When the short seller wants to close out his position (or the shares’ owner wants them back), he buys equivalent stock in the marketplace and returns the shares he borrowed back to the owner.

If the stock has fallen in value, he makes a profit that is the difference between the price at which he borrowed the stock and the price at which he bought it back. Conversely, if the stock has risen in value, he suffers a loss since he has to buy back the stock at a higher price than he borrowed it for.

===Short selling is challenging===
Short selling is not for everyone for the simple reason that stocks generally tend to go up. During the 20th century, stocks gained 9% a year on average, although there was significant yearly variation. Stocks do not decline in value across the board for long periods of time. Because of this, short sellers must time their moves well, and attempt to short at the top of a stock’s move and then close out the position when it has hit bottom. If the short seller mis-times his moves, he will lose money. Such precision in timing is less important for long investors because stocks generally go up.

==What is short selling good for?==
Short sellers fulfill a crucial and productive role in financial markets.

===Short sellers bring to light valuable information about poorly run companies===
Short sellers have a strong incentive to uncover poorly run companies. If a short seller successfully discovers ahead of others that a company is destroying value through incompetence, bad luck or even criminal activity, he profits by shorting the stock and publicizing the information. Short sellers are similar to good investigative journalists. They make more money if they can "scoop" others with information that will drive the stock down.

It is this aspect of short selling that many company managers, regulators and others find discomforting. Yet these same managers and regulators have no problem when an investor uncovers a successful company. Why should they be opposed to someone who does the opposite, and uncovers the overvalued, incompetent, lazy or even fraudulently managed companies?

===Short sellers help capital go to the best companies===
By taking financial capital away from poorly run companies, short sellers free up money that can go to the best-run companies. Short sellers are the other half of the value-creating process of financial markets whereby capital is continually re-directed to those who can put it to the most valuable use. The existence of short sellers means that capital will more quickly flee the poorly run companies and thereby become available that much faster for the better-run companies. The profit that a short seller makes is his reward for aggressively uncovering the poorly run companies.

==Can short sellers unfairly cause stock prices to go down?==
This is the most common misconception about short sellers. However, short selling is only likely to be successful if companies truly have problems. If a seller shorts a strong or improving company, he will lose money. It is a misconception to think that short sellers (or long investors) can cause stock prices to deviate for meaningful time periods from their true values.

The only power a short or long investor has comes from being right. When he is right, he is rewarded for helping to bring true information to the marketplace. When he is wrong, his wealth is dissipated and his ability to invest further is diminished. If he is wrong often enough, all of his wealth will be dissipated and his ability to influence stocks will be nullified.

===How does a company lose money if its stock price diminishes?===
A rising or falling stock price does not directly provide or take away money from a company. It only affects the company when it needs to raise new money from investors in a stock offering. A rising or falling stock price affects a company’s ability to finance future projects.

So, successful short selling where it is accompanied by a fall in a company’s share price, reduces the amount of money a company can raise in a future stock offering. Conversely, if a company has a rising stock price, it can raise more money in a future stock offering.

==Short selling is moral and should be permitted==
Short selling creates value by making the capital markets work more efficiently. Short sellers help bring negative information about companies to the market. By doing so, short sellers provide liquidity to the market and help capital to flow away from the worst companies and toward the best companies. Without short sellers, markets would be less liquid and more volatile. Long investors would have more difficulty selling their positions, and the lack of liquidity would make it more difficult for companies to raise funds in public offerings.

To restrict short selling not only harms the efficiency of the markets, but it violates the right of stock owners to freely dispose of their shares as they see fit. Because their shares belong to them, it is their property, they have the right to do what they want with them, including loan out their shares to short sellers. Conversely, short sellers have the right to borrow those shares.

A proper understanding of short selling demonstrates the valuable and productive role it plays in the financial markets.

==Notes==
Note: this page was based on [http://oneminute.rationalmind.net/stock-shorting/ The One Minute Case for Stock Shorting], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category: Argumentation]]
{{DEFAULTSORT:Short selling, Argumentation}}

Argumentation:Socialized healthcare

2013-04-14T06:57:57Z

John James: DEFAULTSORT

'''[[Socialized healthcare]]''' or '''socialized medicine''' are any systems to provide the entire population with complete medical care through government subsidization and regularization of medical and health services.

==There is no right to healthcare==
The United States was founded with the declaration that all men have the right to "life, liberty, and the pursuit of happiness." The Founders recognized that all men have a moral right to be free from the coercion of others, as long as they allow others the same freedom. They believed that rights do not impose a positive obligation on others, but only the negative obligation to restrain from the initiation of force.

The claim that there is a "right to healthcare" violates the principle of individual rights because it requires that the liberty of doctors and the property of taxpayers be violated to provide for others. When the [[New Deal]] and [[Great Society]] programs forced doctors and taxpayers to become sacrificial offerings to the "common good", the current "healthcare crisis" was born.

==The myth of "free" healthcare==
It is a common belief that when government provides something, it is free or cheap. But politicians cannot create wealth – they can only redistribute it. Money for all government spending comes from business – whether by entrepreneurial investment, the wages of patients, or taxes.

Whether by price controls of outright nationalization, when governments make prices artificially low, demand skyrockets, and shortages result. Politicians respond by passing ever more regulations to control costs. These regulations stifle innovation, drive up costs, and force healthcare providers out of business. The end result is to replace capitalism, the greatest wealth-generating system known to man, with an onerous system of central planning.

Capitalism cannot guarantee that all our medical needs will be provided for – no system can do that. But it does give entrepreneurs the incentive to compete to provide the best possible service they can. Centralized socialized systems have no incentive to improve service or to try bold new techniques. Politicians can force prices to be artificially low, but they cannot lower costs – they can only drive doctors, hospitals, and drug companies out of business.

==The victims of "universal" healthcare==
The waiting time for treatment in Canada varies from 14 to 30 weeks. Waiting lists for diagnostic procedures range from two to 24 weeks. Some patients die while waiting for treatment. To stop sick people from circumventing the "free" system, the government of British Columbia enacted Bill 82 in 2003, which makes it illegal to pay for private surgery. Patients waiting for critical procedures are now forced to seek procedures in the U.S. and doctors are abandoning Canada in droves. Cleveland, Ohio is now Canada’s hip-replacement center. Ontario is turning nurses into doctors to replace some of the 10,000 doctors who left Canada in the 1990’s.

What will patients do when it is illegal to seek private medical treatment in the U.S.? Politicians are already working towards that goal. State and federal regulation impose onerous regulations which forbid insurance companies from offering services such as basic coverage for emergencies by requiring coverage of many types of procedures. Medicare forces doctors to follow 130,000 pages of regulations. Critics often attack the "capitalist" nature of American health care system. The reality is that the government now pays for 50% of health care, and closely regulates the rest.

==Healthcare is only affordable under capitalism==
If a society is not wealthy enough to afford healthcare, health socialism will not make it richer. Cuba, a poster child of socialist healthcare schemes, spends $229 on healthcare per person each year, while the U.S. spends $ 6,096. Premium services are available only to paying foreigners, while natives must bribe doctors for timely treatment and bring their own towels, bed sheets, soap, food, and even sutures.

A government can decide to replace individual choice with state-mandated decisions of what goods and services are more important for the "common good." But it can only spend on one area at the expense of another. If Cubans are not totally deprived of medical treatment, it can only be at the expense of all other goods. A doctor’s salary in Cuba is 1.5 times the median at $15-20 per month. A telling sign of their deprivation is the Cuban suicide rate, which is the highest in Latin America and among the highest in world. Cubans in Miami on the other hand, kill themselves less often than other Miamians. When they risk their lives in leaky boats to escape to the U.S., the right to make their own decisions regarding their health is among the freedoms they hope to gain.

==References==
Note: this page was based on [http://oneminute.rationalmind.net/socialized-healthcare/ The One Minute Case Against Socialized Healthcare], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

[[Category:Argumentation]]
{{DEFAULTSORT:Socialized healthcare, Argumentation}}

Argumentation:Fractional reserve banking

2013-04-14T06:54:52Z

John James: DEFAULTSORT

The economic, environmental and social effects arising from money creation through [[fractional reserve banking]] have been subject to much heated political debate for well over two centuries.<ref name="twilight">[http://www.marketoracle.co.uk/Article4489.html Antal E. Fekete, The Twilight of Irredeemable Debt]</ref><ref name="The Forgotten War">[http://news.goldseek.com/GoldSeek/1192819378.php America's Forgotten War Against the Central Banks], Mike Hewitt</ref><ref>[http://www.silverbearcafe.com/private/fracbank.html Antal E. Fekete, Fractional Reserve Banking Revisited]</ref><ref>[http://news.goldseek.com/GoldSeek/1297199137.php China Inflation and Gold], Darryl Robert Schoon</ref><ref>[http://www.zerohedge.com/article/guest-post-good-bad-and-ugly-part-3 The Good, the Bad and the Ugly], James Quinn</ref>

==Arguments against the practice==
{{See also|Criticism of fractional reserve banking}}
There are ethical, legal and pragmatic economic arguments against the practice of [[fractional reserve banking]].

Some economists and ethicists have concluded that the practice is fraudulent and therefore immoral, in that a bank promises to redeem deposits on demand when it is aware that, through this practice, it will never have sufficient funds to satisfy all depositors. Some critics consider this fundamentally unethical, akin to [[counterfeiting]] and/or [[embezzlement]].<ref>[http://www.dailypaul.com/node/119914 Ron Paul video - fractional reserve banking is fraudulent]</ref><ref name="Paul_End">Ron Paul. [http://mises.org/daily/3687 ''End the Fed''], ''Mises Institute'', September 03, 2009. Chapter 2 of the book ''End the Fed''. Referenced 2011-03-16.</ref><ref>[http://www.marketoracle.co.uk/Article25212.html The Faults of FRB], Thorsten Polleit</ref> The simple reality is that no bank engaged in fractional reserve banking can pay its debts as and when they fall due, because a significant proportion of current liabilities (cash deposits) have been lent out and are no longer possessed by the bank. Many analysts (including [[Murray Rothbard]]) have concluded that ''all'' banks engaged in the practice are ''inherently insolvent''. A [[bank run]] is not an "extraordinary", "unusual", or "unexpected" event in finance, but a predictable event that merely reveals the reality of banking - that fractional reserve banking is inherently unstable and that such banks are inherently insolvent.

[[Murray Rothbard]] and others have concluded that fractional reserve banking is nothing but a monetary Ponzi-scheme, relying on new borrowers (or entrants to the scheme) to remain viable. Reformist economists such as [[Murray Rothbard]] support a "full reserve" banking system and criticize [[fractional reserve banking]] as inherently fraudulent.<ref>[http://mises.org/daily/5185/The-Need-for-100-Reserves The Need for 100% Reserves], Frank D. Graham</ref> [[Murray Rothbard]] held this view very strongly throughout his life.<ref name="Paul_End" /><ref>[http://www.marketoracle.co.uk/Article25212.html The Faults of FRB], Thorsten Polleit</ref>

Leaving aside the ethical, moral and legal criticisms against fractional reserve banking, the primary practical economic criticisms relate to [[Austrian Business Cycle Theory]] and the associated fragility of bank liquidity in a fractional reserve banking environment, the financial risk of [[bank run]]s that depositors bear when depositing [[money]] with banks, and the impact that demand deposits have on the stock of money, and on [[inflation]] (that is, the implicit expansion of the money supply and its associated impact on prices and the exchange rate). An alternative to fractional reserve banking is [[full-reserve banking]].<ref>[http://www.mises.org/Books/mysteryofbanking.pdf Murray Rothbard, ''The Mystery of Banking'']</ref>

Some [[conservationist]]s and [[environmentalist]]s believe that fractional reserve banking creates the necessity for indefinite [[economic growth]] which leads to environmental destruction and depletion of natural resources especially when coupled with population growth.<ref>''Agenda for a New Economy: From Phantom Wealth to Real Wealth'' by [[David Korten]] 2009 ISBN 1605092894</ref><ref>''The Long Emergency: Surviving the End of Oil, Climate Change, and Other Converging Catastrophes of the Twenty-First Century'' by [[James Howard Kunstler]] 2006 ISBN 0802142494</ref>

===Exacerbation of the business cycle===
Adherents of the [[Austrian School]] claim that fractional-reserve banking, by expanding the [[money supply]], will lower the interest rates compared to a hypothetical full-reserve banking system, although this idea has been criticized within mainstream economics.<ref>Sraffa P. (1932a), Dr. Hayek on Money and Capital, in "Economic Journal", n. 42, pp. 42-53</ref><ref name="Kaldor1939">{{cite journal | author=Nicholas Kaldor| title=Capital Intensity and the Trade Cycle| journal=Economica| volume=6 | issue=21 | year=1939 | pages=40–66 | doi=10.2307/2549077 }}</ref><ref name="Friedman93">{{cite journal |last=Friedman |first=Milton |title=The 'Plucking Model' of Business Fluctuations Revisited |journal=Economic Inquiry |pages=171–177}}</ref> Austrian adherents argue that this discrepancy will affect the role of the interest rate in guiding investment decisions and will therefore ''necessarily'' create [[malinvestment]]s throughout the economy. One of the proponents of aspects of the business cycle theory, Friedrich von Hayek, shared in the [[Nobel Memorial Prize in Economic Sciences]] in 1974.<ref>[http://nobelprize.org/nobel_prizes/economics/laureates/1974/press.html The Prize in Economics 1974 - Press Release]</ref>

===Effects of an increased money supply===
Fractional reserve banking involves the creation of money by the commercial bank system, increasing the money supply. According to the [[quantity theory of money]], this larger [[money supply]] leads to more money 'chasing' the same amount of goods, which leads to a higher price level.<ref>[http://mises.org/journals/scholar/hatch.pdf Charles T. Hatch, ''Inflationary Deception'']</ref> [[Austrian economist]]s state that this expansion of the broad money supply ([[Demand account|demand deposits]] and notes) caused by fractional reserve banking is a cause of [[price inflation]].<ref>Ludwig von Mises, ''The Theory of Money and Credit'', ISBN 0-913966-70-3 [http://mises.org/books/Theory_Money_Credit/Contents.aspx] See also: Jesus Huerta de Soto, ''Money, Bank Credit, and Economic Cycles'', ISBN 0-945466-39-4 [http://mises.org/books/desoto.pdf]</ref>

==Arguments for the practice==
Noted gold-standard supporter Antal E. Fekete has argued that full reserve banking is impractical and fractional reserve banking is the only viable banking system - provided it is non-inflationary and is stabilized through the re-introduction of a gold standard.<ref>[http://www.24hgold.com/english/news-gold-silver-fractional-reserve-banking-revisited.aspx?article=2242660818G10020&redirect=false&contributor=Antal+E.+Fekete Fractional Reserve Banking Revisted], Antal E. Fekete</ref>

A few Austrian School economists, such as [[Pascal Salin]] also suggest that a [[full-reserve banking]] system should not be enforced legally, and dispute [[Murray Rothbard]]'s characterization of fractional-reserve banking as a simple form of recursive [[embezzlement]], and rather advocate the abolition of central banking, and suggest that [[free banking]] replace the current system. Austrian monetary theorist [[George Selgin]] has also argued in favor of fractional reserve banking as the true free market position.<ref>{{cite web|url=http://www.richmondfed.org/publications/research/region_focus/2009/winter/full_interview.cfm |title=Interview: George Selgin |accessdate=2009-10-29 |last=Slivinski |first=Stephen |publisher=The Federal Reserve Bank of Richmond }}</ref>

F.A. Hayek accepted that bank credit and fractional reserve banking, even if they contributed to business cycles, were necessary as "the price we pay for a speed of development exceeding" that which would otherwise be possible, and that "financial institutions have never been prohibited from holding fractional reserves."<ref>http://mises.org/journals/rae/pdf/RAE9_1_3.pdf Walter Block and Kenneth A. Garschina, "Hayek, Business Cycles and Fractional Reserve Banking: Continuing the De-Homogenization Process", Review of Austrian Economics, 1996.</ref>

By increasing the capital available for investment, fractional reserve banking may speed economic development, allowing the economy to enjoy a higher level of investment than would exist in a full reserve environment.

Finally, by concentrating economic and financial power within the banking system, the economy is more amenable to control and "fine-tuning" (or manipulation) by central governments. In a full reserve banking environment, there would be no need for a central bank, as there would be no need for "monetary policy" and there would be no "multiplier effect" of liquidity injections into the banking system by the central bank. To some economists, especially those believers in Keynesianism and/or socialism, this is a significant disadvantage when compared to a fractional reserve banking system.

==Spurious Arguments==

There are a number of spurious arguments that are sometimes used in favor of fractional reserve banking and against its rival, full reserve banking.

The first spurious argument is that full reserve banking would prohibit banks from lending at all, due the fact that the savings of depositors in "at call" or "demand" deposit accounts would have to be stored at the bank awaiting possible withdrawal. This argument ignores the fact that "time" or "term" deposits could still be used for lending purposes in a full reserve banking environment and this would still allow more patient depositors to obtain interest on their savings, even if the money from demand deposits could no longer be lent out for extended periods.

The second spurious argument is that fractional reserve banking "pools" small deposits and allows small depositors to receive interest on their savings from the on-lending of this money to borrowers. Fractional reserve banking does ''not'' involve the "pooling" of deposits (sometimes called ''financial intermediation''). It involves ''maturity transformation'' - lending out money for longer periods than you received it. "Pooling" of small deposits can occur independent of the practice of fractional reserve banking.

==References==
{{reflist|2}}

[[Category:Argumentation]]
{{DEFAULTSORT:Fractional reserve banking, Argumentation}}

Argumentation:Bankruptcy

2013-04-14T06:52:54Z

John James: /* Notes */ DEFAULTSORT

''This page attempts to create an argumentation chain for [[bankruptcy]]. It is not intended to cover every possible angle, merely to build up one or more ways to argue about this topic.''

'''[[Bankruptcy]]''' is a financial state that occurs when a person or business can no longer repay its [[debt]]s. In the legal sense, bankruptcy begins when a court recognizes that the financial state of bankruptcy exists. The bankruptcy court takes charge of the bankrupt entity and disposes of its assets or reorganizes it to pay off as much of the debts as possible.

{{See also|Bankruptcy}}

==What is the purpose of bankruptcy?==

===A bankruptcy proceeding recovers money for the creditor, but both parties benefit===
The purpose of a bankruptcy proceeding is to facilitate the maximum recovery of the money owed to the creditor. But it also benefits the debtor. After the debtor pays off what he can, his remaining debt is extinguished. This is not a "get out of jail free" card; the debtor, whether a person or business, must face the damage to its reputation and a greater difficulty in obtaining credit for a long time into the future. Rather, it is an acknowledgment that the debtor simply cannot repay his debt. For both parties, bankruptcy offers timely resolution to an otherwise unsolvable dilemma. The creditor regains a portion of the money owed, and the debtor, relieved from the burden of a debt he cannot pay, can move on with his life.

===Bankruptcy is economically valuable===
In economic terms, a speedy and fair process of bankruptcy allows both [[asset]]s and people to resume being productive as quickly as possible. The creditor regains cash that it can redeploy as it sees fit. If it is a bank, it has regained funds that it can loan out again to more productive businesses or [[credit]worthy individuals. The creditor can also redeploy the assets of the bankrupt entity into the hands of a more capable manager.

Take the financial malaise of [[General Motors]] as an example. Not even $19.4 billion in federal help wasn't enough to keep the largest automaker in the US out of bankruptcy. The government would pour another $30 billion into GM to fund operations during its reorganization.<ref name="Isidore_GM_End">Chris Isidore. [http://money.cnn.com/2009/06/01/news/companies/gm_bankruptcy/ "GM bankruptcy: End of an era"], ''CNNMoney.com'', June 2, 2009. Referenced 2011-11-15.</ref> Its factories and workers continued to be tied up inefficiently making mediocre cars. General Motors became a drag on the American economy.

Bankruptcy would free General Motors’ factories and employees to be more productive. Once a court legally acknowledges General Motors’ bankruptcy, it could allow General Motors’ new owners, its creditors, to appoint a more competent manager. Or the creditors could sell the plants to a superior car manufacturer, such as Toyota. Either way, after reorganization under bankruptcy, the plants would be used to make cheaper, more attractive cars that customers want to buy.

The creditors may also choose to shut down some or all of the plants and sell them for scrap. But recycling the old plants into new steel that becomes the girders of modern, efficient factories is a better use for those plants if they are obsolete. No party is in a better position to make these judgments than General Motors’ creditors, who have their financial self-interest at stake.

While General Motors is just a single, albeit enormous, example, speedy and fair bankruptcies end the bleeding of money-losing operations across the economy, and re-direct inefficiently utilized assets and capital to more productive activities. In sum, bankruptcy facilitates economic recovery. A failure to permit bankruptcy prolongs stagnation.

==Questions and arguments==

===Bankruptcy always means shutting down a business===
This is not true. Creditors, in consultation with the bankruptcy court, decide whether to shut down and liquidate, or to operate under new management. Creditors have every incentive to make the decision that maximizes their pay-out over time, not just the amount of cash that can be had right now.

===Bankruptcy is bad for employees===
Considered in full context, bankruptcy is good for employees. An economy with speedy and fair bankruptcy procedures is one where healthy, growing companies predominate. Healthy companies can pay employees more because their labor is worth more to them. Therefore, employees benefit from bankruptcy, even if someone occasionally faces dislocation or the uncertainty of working for new management. But, even if employees dislike such occasional dislocation, there is no alternative to bankruptcy if their employer is not financially viable.

===Bankruptcy allows deadbeats to avoid meeting honest obligations===
When bankruptcy laws are properly drafted and applied, this is the exception rather than the rule. Bankruptcy laws are designed to protect the rights of all parties, not to unfairly favor debtor or creditor. Bankruptcy acknowledges a fact, that the debtor cannot repay all his debts, and it facilitates the repayment of all debts that can be repaid.

===Government should stop bankruptcies===
During [[Financial crisis|financial panics]], governments sometimes try to prevent bankruptcies by putting moratoriums on them, subsidizing bankrupt entities, or changing the laws governing bankruptcy to favor debtors. Such interventions are both unjust and impractical. They are unjust because they deny the legitimate right of the creditors to collect what they are owed. The money they are owed is their property, and they have the right to collect it, to the extent it is reasonably possible. Such interventions are unjust and impractical because they attempt to deny reality. "Stiffing" the creditors or forcing innocent third parties to bail out the bankrupt entity through subsidies does not change the fact that the bankrupt entity cannot repay its debts.

===Is bankruptcy moral?===
Bankruptcy is just, if resolved through a fair and speedy judicial process. A bankruptcy proceeding acknowledges the actual state of affairs that exists, that the bankrupt entity cannot repay its debts. It resolves this dilemma for the maximum benefit of the creditor, but in so doing allows both parties – debtors and creditors – to resolve this matter with finality, and move on with their lives. Bankruptcy only involves the parties to the debt obligation. It does not require that innocent, third parties be forced to subsidize or bail out creditors or debtors. In doing so, it respects the rights of all concerned.

A just process of bankruptcy is also economically practical. Bankruptcy removes assets from those who have mismanaged them, and puts them into the hands of those who are most capable of putting them to productive and financially responsible use. The institution of bankruptcy is an essential part of a prosperous and just capitalist society.

==Notes==
Note: this page was based on [http://oneminute.rationalmind.net/bankruptcy/ The One Minute Case for Bankruptcy], which is in the public domain and was kindly provided by David Veksler - big thanks to him!

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