• 2010 EPJ Economist of the Year

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    by Robert Wenzel: If
    You Are In a Line, the Odds Really Are That Other Lines Do MoveFaster

     

     
     

    Murray
    Rothbard has been named, post-humously, the 2010 EPJ Economist of
    the Year, specifically for his work surrounding power elite and
    their influence on government.

    In this day
    and age of the Internet, it is relatively easy to track and report
    on the comings and goings of bankers, such as Lloyd Blankfein at
    Goldman Sachs and Jamie Dimon at JPMorgan, as they trek to the White
    House and Treasury for power influence sessions. And, it is relatively
    easy to see and understand how they operate and dole out cash to
    themselves, but anyone, who read Rothbard years ago, would have
    been aware and understood back then.

    For example,
    Murray Rothbard wrote
    in 1984 (more than 25 years ago!), my emphasis:

    Businessmen
    or manufacturers can either be genuine free enterprisers or statists;
    they can either make their way on the free market or seek special
    government favors and privileges. They choose according to their
    individual preferences and values. But bankers are inherently
    inclined toward statism.

    Commercial
    bankers, engaged as they are in unsound fractional reserve credit,
    are, in the free market, always teetering on the edge of bankruptcy.
    Hence they are always reaching for government aid and bailout.

    Investment
    bankers do much of their business underwriting government bonds,
    in the United States and abroad. Therefore, they have a vested
    interest in promoting deficits and in forcing taxpayers to redeem
    government debt. Both sets of bankers, then, tend to be tied in
    with government policy, and try to influence and control government
    actions in domestic and foreign affairs.

    In 1992, Rothbard
    wrote
    (My emphasis):

    What
    is less well-known is that this Big Business – Big Finance
    – Big Labor – Big Intellectuals and Media alliance has
    been going on for a long time: certainly since the New Deal.
    It
    is little known, for example, that such crucial New Deal statist
    "reforms" as the Social Security Act and the Wagner
    Act of the mid-1930s were put into place by a powerful and malevolent
    alliance of left-technocratic New Deal ideologues, and powerful
    Big Business leaders: notably John D. Rockefeller, Jr.’s Industrial
    Relations Counselors and its successors, and W. Averill Harriman’s
    Business Advisory Council of the Department of Commerce…

    We can
    rest assured that the power elite, the crucial special interest
    groups we have been analyzing, have no sentimental attachment
    to party labels. Republican? Democrat? Who cares, so long as they
    are under control by the "right" people.
    "What’s
    good for the ______ " is the overriding consideration, and
    you can fill in the blank with any one of these power elite groups.

    Read
    the rest of the article

    January
    3, 2011

    2011
    Economic Policy Journal

    The
    Best of Robert Wenzel

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