Review of Austrian Economics - The Ludwig von Mises Institute

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Review Essay 113 But, perhaps ironically, Traders Versus the State also shows that the state may, and has, been dominated by a very different group. This group despises trading not for pragmatic but for ideological reasons, viz., because of its commitment to socialism or communism. Traders are seen as useless intermediaries and trade as exploitation which must be stamped out. The extent to which the war against trading will be taken by its ideological enemies—including the demolition of markets and the beating and even killing of the traders—is graphically documented in the articles by Donna Kerner on Tanzania and Gracia Clark on Ghana. Conclusion Two things come through crystal clear in Traders Versus the State. The first is that regardless of whether the state is controlled by the wealthy capitalists or the ideological socialists, the result of government economic intervention is the same: massive shortages, extensive black-market activities and social conflict. As Clark says of the situation in Ghana, "price controls brought chaos" (p. 63). The second is that when the controls are lifted all three of the problems are reduced in intensity or even relieved altogether. As Babb has observed, with "the elimination of many price controls" in Tanzania, "goods now flood the government shops" (p. 51). These are certainly astonishing conclusions for a book written largely from a Marxist perspective. In the final analysis, the authors' candid acknowledgement of the indispensable role of the free market says far more about the intellectual bankruptcy of Marxian economics than a dozen books on that topic. References Calhoun, John C. [1851] 1953. A Disquisition on Government. Indianapolis: Bobbs-Merrill. Dorfman, Joseph. 1946. The Economic Mind in American Civilization, 1606-1865. Vol 2. New York: Viking Press. Hofstadter, Richard. 1948. The American Political Tradition. New York: Vintage. Leggett, William. 1984. Democratic Editorials, Essays in Jacksonian Political Economy. Indianapolis: Liberty Press. Liggio, Leonard. 1977. "Charles Donoyer and French Classical Liberalism." Journal of Libertarian Studies (Summer): 153-78.
114 The Review of Austrian Economics, Vol. 5, No. 1 Mises, Ludwig von. 1978. The Clash of Group Interests and Other Essays. New York: Center for Libertarian Studies. Read, Donald. 1968. Cobden and Bright. New York: St. Martin's Press. Rothbard, Murray N. 1970. Power and Market: Government and the Economy. Menlo Park, Calif.: Institute for Humane Studies. Schenk, Robert. 1986. "Communication: Keith Griffin and John Gurley, 'Radical Analyses of Imperialism, the Third World, and the Transition to Socialism: A Survey Article'." Journal of Economic Literature (June): 676. Smith, Adam. [1776] 1937. The Wealth of Nations. Edwin Cannan, ed. New York: Modern Library. Trenchard, John, and Gordon, Thomas. [1755] 1965. The English Libertarian Heritage. Indianapolis: Bobbs-Merrill. Weinberg, Mark. 1978. "The Social Analysis of Three Early 19th Century French Liberals: Say, Comte, and Donoyer." Journal of Libertarian Studies (Winter): 45-63.
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