Author Archive for Daniel J. Sanchez

Limited time offer! 3 courses for the price of 1

SPECIAL LIMITED TIME OFFER: Enroll in “Basics of Economics: Government Intervention” (formerly titled “How Government Wrecks the Economy”), which is the third and final course in Robert Murphy’s Basics of Economics series, before the first lecture (April 24, 5:30 pm Eastern) and also receive free enrollment in the archived versions of the preceding two courses in the series: Action and Exchange and Introduction to the Free Market. That’s 3 courses for the price of 1, and a complete series of 20 lectures covering all the basics of sound economics from the ground up! And you’ll have permanent access, so you can go through the lectures, readings, and quizzes at your leisure. No need to do anything other than sign up for the upcoming course, and we’ll enroll you in the other two courses.

A Father’s Care Package for Warren Buffett: Finally Delivered After 51 Years

Warren Buffett’s father Howard (an anti-New Deal and anti-interventionist Congressman) wrote to Murray Rothbard in 1962 about sending some of Murray’s books to his son. Judging from Warren’s recent comments, it seems the books were lost in the mail. So Mark Thornton has sent this care package to the billionaire investor.



David Gordon’s Slides for Human Action: Austrian Sociology, Lecture 1

If you find these slides intriguing, sign up for the course, which starts tonight!

There Are No Demand or Expenditure Problems. There are Only Pricing Problems

This is according to Austrian economist G.P. Manish, paraphrasing the great economist W.H. Hutt, as he explains Keynesianism and Austrian Business Cycle Theory in an excellent interview with Tom Woods.

A Salerno Screening

Click the image for the event page.

Screen Shot 2013-03-06 at 10.22.16 AM

Warren Buffett: Keynesian

Briggs Armstrong emails:

Buffet says “Keynes would be proud”

Then he goes on to heap praise on Helicopter Ben, saying he saved the global financial system and is “absolutely terrific as Chairman.”

The Rothbard Birthday Sale: Save 25%

Save 25% Offer expires 3/04/13 at 11:59 p.m. Central Time Enter Coupon Code: Murray87

The $59 Recession Solution

George at “Barbarous Relic”, writes:

Joseph Salerno, professor of economics at Pace University and author of Money, Sound and Unsound, recently taught a course in Austrian Macroeconomics at the Mises Academy.  For a $59 registration fee that included all the reading material, anyone with access to the internet could sign up. As with all Academy courses, the lectures were recorded and are made available to students indefinitely.

In his final lecture Salerno presented the Austrian Business Cycle Theory and showed how, during a recession, the policy prescriptions of the Austrians differs from those of the Keynesians.  The chart below summarizes and contrasts the policies.

What follows is my understanding of the chart, and any errors of interpretation are mine alone.  In English, the chart reads as follows:

Fiscal policy, Austrians
: Lower Taxes (down-arrow T), reduce government spending (down-arrow G), and balance the budget (Taxes minus government spending equals zero).  Note: Paul Krugman would likely condemn this policy as “fiscal austerity,” and it is – for the government.  But obviously not for the taxpayers.

Fiscal policy, Keynesians: Lower taxes, increase government spending, and run deficits (government should spend more than it collects in taxes).  Note: Lowering taxes in a recession is the one area where Austrians and Keynesians agree, though President Obama, who in other ways follows the Keynesian playbook, has raised taxes.

Monetary policy, Austrians: Freeze the money supply M (delta M equals zero), let the interest rate adjust according to the time preference of market participants.

Monetary policy, Keynesians: Goose the money supply (up-arrow M), annihilate the interest rate (down-arrow i).

Microeconomic policy, Austrians: Repeal all laws keeping the market from clearing, including policies that prevent wages W and prices P from adjusting to supply and demand.

Microeconomic policy, Keynesians: Use the power of government to keep wages and prices from adjusting to market conditions.

Regulatory policy, Austrians: Remove government regulations and allow the market to perform its regulatory function instead.

Regulatory policy, Keynesians: More government regulations, especially in the financial sector.

No one in the seats of power saw the financial crisis coming because, we’re told, financial crises are a lot like “earthquakes and flu pandemics,” difficult to predict.  Not coincidentally, none of those in power are Austrians.  After five years of Keynesian and other anti-market “remedies,” Europe overall is in recession, while U.S. growth in the last quarter of 2012 declined by $4.9 billion even with a $165 billion “stimulus” behind it.  Before the Fed and the government decided to “do something” about a floundering economy, crises lasted on average 18 months to two years.  Although this last one was officially over in 2009 – see Robert Murphy’s take on what this means – unemployment is still high, while optimism among consumers and small business owners remains very low.

I don’t recall reading any restrictions that would’ve prevented central bankers and senior government officials from registering for Salerno’s course.  It’s too bad for them but especially for us, because given their track record we can expect even bigger calamities down the road.  If they found the registration fee too pricy but would otherwise be willing to take the course, I would be glad to empty my piggy bank on their behalf the next time it’s offered.

We need to let the market breathe before the Keynesian maestros put us out of business.

Mark Thornton Explains the Real Meaning of Austerity

Ryan McMaken writes:

In the February The Free Market, Mark Thornton notes that in the current media narrative, “austerity” means raising taxes to pay wealthy bankers.

Authentic austerity -the good kind-forces the government to actually get smaller:

Real austerity is not adding more difficulties on the productive sector of the economy in the form of higher taxes. The private sector produces, the public sector consumes. The IMF’s idea of raising taxes on individuals to pay off international banksters is bad economics and is not real austerity.

Read more here (PDF).

A Satisfied Student

A Mises Academy student emails Joseph Salerno:


I just wanted to tell you how much I enjoyed this course! It was my first offering from the LvMI and I look forward to many more. I also liked the title you chose….very clever….it peaked my curiosity!

I feel much better armed to define/defend Austrian concepts as I deal with the statists around me. You have helped to “deprogram” me from some of the undergraduate econ courses I have taken. Thanks again for such a wonderful learning experience. I look forward to future offerings. Well done.

Ron Paul on the Libertarian Future, at the recent Mises Circle in Houston

“Murray’s Dream Come True”

That is what the great Ralph Raico called the Mises Institute, as he was interviewed by David Gordon for our Oral History Project.


Two Amazingly Interesting New Courses Starting in March

From the Mises Academy, our online learning platform:

Human Action: Part II with David Gordon, covering Mises’ most profound insights into the nature of society.

American Bankster: Money, Banking, and the Power Elite in US History with Thomas DiLorenzo, covering Rothbard’s groundbreaking analysis of the American oligarchy.

Sign up and get ready to have your mental horizons enjoyably expanded!

Mark Thornton Discusses Spielberg’s Lincoln Movie and the Civil War

Mark Thornton was interviewed yesterday by Gary Franchi on Next News Network’s WHDT World News Program, which has a potential TV and internet audience of over 8 million viewers.

The Bankster-Warmonger Axis

Joseph Salerno and Lew Rockwell in a fascinating conversation, back in October. Play the streaming audio below, or go here to download.

Read About the University of Texas Mises Circle

…and its recent session with Austrian economist and past Mises Summer Fellow, Per Bylund, on the economy of Sweden.

Help Us Make “The Free Market” Even Better

Now in its 31st year, the Mises Institute’s monthly newsletter, The Free Market, is expanding into a longer, more diverse publication with more articles and interviews, plus Institute Alumni news, and the latest news from our Donors, Members, and Faculty.

We’re now seeking submissions of various sorts including featured articles, movie reviews, book reviews, and one-to-four-panel comics.

Over the past three decades, authors like Ron Paul, Walter Block, Tom Woods and Robert Higgs have written for the pages of The Free Market.  Through the 1980s and until his death, The Free Market was home to some of Murray Rothbard’s most entertaining and informative new articles, and many of them now appear in the compilation Making Economic Sense. You can be part of this tradition.

Please send submissions to editor Ryan McMaken at Articles should contain fewer than 1,000 words and should not have footnotes or endnotes. Short book and film reviews under 750 words are very welcome.

We’re also interested in finding out more about what our Donors, Members, and Alumni are doing. Donors, Members, Alumni, and Faculty are invited to write us with your news, successes, photos, and (scholarly and non-scholarly) publications at If you’ve been part of Mises University, our Fellowship Program, a Rothbard Graduate Seminar, or one of our High-School Seminars, brag to us about your many successes at Please include what program you attended, and when.

Trillion Dollar Coins and Alien Invasions

Professor Salerno, the great thing about Paul Krugman is that he’s a walking reductio ad absurdum.  Critics of Keynesianism don’t even need to point out, “Well Dr. Krugman, by the same logic, you could also say…”  He saves critics the trouble, because he’s already there. He performs the logical reductio himself, and promulgates the resulting absurdities as pearls of Keynesian wisdom.

The Austrian School Referenced in The Simpsons

That Pinker Quote

A new pro-state canard that has been trotted out lately has been to contrast levels of violence in pre-state versus state societies. It is pointed out that even the bloodiest of “state society” centuries (the twentieth) was an improvement on tribal society. Steven Pinker is often enlisted in this cause, particularly this passage from his “A History of Violence“:

If the wars of the twentieth century had killed the same proportion of the population that die in the wars of a typical tribal society, there would have been two billion deaths, not 100 million.

To draw an endorsement of the state from such statistics is entirely vacuous.

Primitive (“tribal”) societies are primitive not because they don’t have states, but because they don’t have a developed tradition of private property. This necessarily results in economic autarky and extreme poverty. Autarky and poverty in turn result in both inter-tribal biological competition (constant warfare) and the fact that there is not enough wealth to support a parasitic state. It is private property and the division of labor that led both to a decline in inter-tribal warfare and enough wealth in societies for parasitic states to feed off.

The state owes its existence to civilization, not vice versa.  And the wars that interrupt the process of civilization have been made more frequent and more bloody by the encroachment of the state on market-and-civil society.