Austrian Business Cycle Theory

Everyone should read Tom DiLorenzo ( and Tom Woods ( on Austrian Business Cycle Theory and the Fed, entries on today’s

Please allow me to add what I regard as a footnote to both of their articles (blame me, not them, however, if you don’t like what I now say): The Association of Private Enterprise Education (APEE) has had as past presidents and plenary speakers at its annual meetings several members of the Federal Reserve. And, APEE has given several awards to members of this central planning organization. I wouldn’t mind it, so much, if any other organization were to extol the virtues of the Fed in this or in any other way. But, it really sticks in my craw when an organization such as APEE does so, since it supposed to stand for, and promote, PRIVATE ENTERPRISE. Well, I’ve got news for APEE. The Fed is not exactly a private enterprise organization.May a libertarian work for the Fed and still be considered a libertarian? Murray Rothbard said no; unlike the post office, the public library, the courts, the police, or universities, the Fed is not an institution that could exist in the free society. Therefore, Murray said it would be impermissible for a libertarian to work for them.

I’d like to add a footnote to that (I’m in a footnote adding mood, today), hopefully adding something that Murray would consider as a friendly amendment to his view. And that is this: it IS permissible for a libertarian to work for the Fed, but, ONLY, if his goal and purpose is to bring an end to that vicious monetary central planning institution. When I heard that Alan Greenspan would head up the Fed, silly me, I thought he would do whatever was in his legal power to undermine, betray, and ultimately end that organization. How else could he be true to his past history and connection with Ayn Rand? I expected, any day, that Greenspan would use his new found power to this end. My excuse? I was a young man, in those days. Now, I’m an older, wiser coot.


5:58 pm on May 8, 2009