Murray N. Rothbard 41<strong>the</strong> disciples of F.A. Hayek at <strong>the</strong> London School of Economics.During <strong>the</strong> early 1930s, Hayek at <strong>the</strong> LSE and <strong>Keynes</strong> at Cambridgewere <strong>the</strong> polar antipodes in British economics, with Hayekconverting many of Britain’s leading young economists to Austrian(that is, <strong>Mises</strong>ian) monetary, capital, and business-cycle <strong>the</strong>ory.Additionally, Hayek, in a series of articles, had brilliantly demolished<strong>Keynes</strong>’s earlier work, his two-volume Treatise on Money,and many of <strong>the</strong> fallacies Hayek exposed applied equally well to<strong>The</strong> General <strong>The</strong>ory (see Hayek 1931a, 1931b, 1932). For Hayek’sstudents and followers, <strong>the</strong>n, it must be said that <strong>the</strong>y knew better.In <strong>the</strong> realm of <strong>the</strong>ory, <strong>the</strong>y had already been inoculated against<strong>The</strong> General <strong>The</strong>ory. And yet, by <strong>the</strong> end of <strong>the</strong> 1930s, every oneof Hayek’s followers had jumped on <strong>the</strong> <strong>Keynes</strong>ian bandwagon,including Lionel Robbins, John R. Hicks, Abba P. Lerner, NicholasKaldor, G.L.S. Shackle, and Kenneth E. Boulding.Perhaps <strong>the</strong> most astonishing conversion was that of LionelRobbins. Not only had Robbins been a convert to <strong>Mises</strong>ian methodologyas well as to monetary and business-cycle <strong>the</strong>ory, but hehad also been a diehard pro-Austrian activist. A convert since hisattendance at <strong>the</strong> <strong>Mises</strong> privatseminar in Vienna in <strong>the</strong> 1920s, Robbins,highly influential in <strong>the</strong> economics department at LSE, hadsucceeded in bringing Hayek to LSE in 1931 and in translating andpublishing Hayek’s and <strong>Mises</strong>’s works.Despite being a longtime critic of <strong>Keynes</strong>ian doctrine before<strong>The</strong> General <strong>The</strong>ory, Robbins’s conversion to <strong>Keynes</strong>ianism wasapparently solidified when he served as <strong>Keynes</strong>’s colleague in wartimeeconomic planning. <strong>The</strong>re is in Robbins’s diary a decidednote of ecstatic rapture that perhaps accounts for his astonishingabasement in repudiating his <strong>Mises</strong>ian work, <strong>The</strong> Great Depression(1934).Robbins’s repudiation was published in his 1971 Autobiography:“I shall always regard this aspect of my dispute with <strong>Keynes</strong> as <strong>the</strong>greatest mistake of my professional career, and <strong>the</strong> book, <strong>The</strong> GreatDepression, which I subsequently wrote, partly in justification of
42 <strong>Keynes</strong>, <strong>the</strong> <strong>Man</strong>this attitude, as something which I would willingly see forgotten”(Robbins 1971, p. 154). Robbins’s diary entries on <strong>Keynes</strong> duringWorld War II can only be considered an absurdly rapturous personalview. Here is Robbins at a June 1944 pre–Bretton Woodsdraft conference in Atlantic City:<strong>Keynes</strong> was in his most lucid and persuasive mood: and <strong>the</strong>effect was irresistible… . <strong>Keynes</strong> must be one of <strong>the</strong> mostremarkable men that have ever lived—<strong>the</strong> quick logic, <strong>the</strong> widevision, above all <strong>the</strong> incomparable sense of <strong>the</strong> fitness of words,all combine to make something several degrees beyond <strong>the</strong>limit of ordinary human achievement. (Ibid., p. 193)Only Churchill, Robbins goes on to say, is of comparable stature.But <strong>Keynes</strong> is greater, for heuses <strong>the</strong> classical style of our life and language, it is true, butit is shot through with something which is not traditional, aunique unearthly quality of which one can only say that it’spure genius. <strong>The</strong> Americans sat entranced as <strong>the</strong> godlike visitorsang and <strong>the</strong> golden light played all around. (Ibid., pp. 208–12 cf. Hession 1984, p. 342)This sort of fawning can only mean that <strong>Keynes</strong> possessedsome sort of strong personal magnetism to which Robbins wassusceptible. 10Central to <strong>Keynes</strong>’s strategy in putting <strong>The</strong> General <strong>The</strong>ory overwere two claims: first, that he was revolutionizing economic <strong>the</strong>ory,and second, that he was <strong>the</strong> first economist—aside from a few“underworld” characters, such as Silvio Gesell—to concentrate on<strong>the</strong> problem of unemployment. All previous economists, whom helumped toge<strong>the</strong>r as “classical,” he said, assumed full employment10Robbin’s biographer, D.P. O’Brien, labors hard to maintain that, despite what headmits is Robbins’s “elaborate” and “exaggerated contrition,” Robbins never really, deepdown, converted to <strong>Keynes</strong>ianism. But O’Brien is unconvincing, even after he tries toshow how Robbins waffled on some issues. Moreover, O’Brien admits that Robbinsdropped his <strong>Mises</strong>ian macro approach, and he fails to mention Robbins’s astonishingtreatment of <strong>Keynes</strong> as “godlike” (O’Brien 1988, pp. 14–16, 117–20).
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- Page 31 and 32: 30 Keynes, the Manhad managed to do
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- Page 50 and 51: Murray N. Rothbard 49and robotic co
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- Page 56 and 57: Summing UpWAS KEYNES, as Hayek main
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- Page 62 and 63: BibliographyBrunner, Karl. 1987.
- Page 64 and 65: Murray N. Rothbard 63______.1930a.
- Page 66: Murray N. Rothbard 65Trescott, Paul