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From:
[log in to unmask] (Mason Gaffney)
Date:
Tue Dec 26 17:01:43 2006
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Fred Foldvary writes:  
  
"In discussing war in Human Action, Mises states that  
war-time price controls are not necessary, as the  
state can obtain resources by taxation.  Thus, Mises  
did not absolutely oppose taxation."  
  
Thank you for clarifying. I would add that a central tenet of all  
"Austrians" has long been that "forced saving" by deposit expansion is  
harmful. If we do not finance wars by taxation we finance them by selling  
bonds, which generally leads to deposit expansion (unless you have the  
incredible luck of being able to sell them to foreigners ad infinitum, as  
Bernanke seems to think possible). Thus, for consistency, Mises would have  
to admit of some taxation, as you tell us he did.  
  
You and Medaille are right that J.B. Clark trained his guns on Henry George.  
At the same time he ignored Karl Marx and instead attacked the Austrian  
anti-Marxist Boehm-Bawerk.  Knight followed suit.  Clark and Knight both  
found the idea that capital has a period of production (i.e. turns over)  
more threatening than they found Marx. I continue to hope that historians of  
economic thought will make this point more central to their understanding of  
the origins and evolution of what today we call neo-classical economics.   
  
It also should help explain why Austrians, who equal or surpass Chicagoans  
in their apotheosis of the market mechanism, are not welcomed with open arms  
into the Chicago-dominated clerisy.  
  
Mason Gaffney  
  
  
  
  

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