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View Diary: Smackdown: Keynes vs. Hayek With Poll (38 comments)

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  •  This is something of a mis-conception. (0+ / 0-)

    The idea that Austrians are 100% against any government intervention in the market is one of those "nutty uncle" things I was referring too here:

    Over the last several decades, the Austrian school has become short hand for a set of fringe political policies which have little to do with actual Austrian thought.

    Hayek, for example, supported social insurance, industrial regulations and many other government programs which put him at odds with strict anarcho-capitalists.

    Rothbard, who would be the Tea Bagger's econ-hero if they knew who he was, was also very concerned about externalities like pollution.  The big difference is he considered pollution to be a violation of natural rights, not an economic by-product to be regulated.

    To Rothbard, regulation just created a protected class of government approved externalities.  He thought the right place to fight pollution was in the courts.

    I don't agree with his view.  I think they're unworkable.  But to say he (and other Austrians) ignored externalities is off-base.

    Results count for more than intentions do.

    by VA Classical Liberal on Mon Mar 01, 2010 at 06:05:48 AM PST

    [ Parent ]

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