Mises and Austrian Economics : A Personal View


0016_mises[U]nder the predominance of interventionist ideas, a political career is open only to men who identify themselves with the interests of a pressure group. . . . Service to the short-run interests of a pressure group is not conducive to the development of those qualities which make a great statesman. Statesmanship is invariably long-run policy; pressure groups do not bother about the long-run.1

I decided to run for Congress because of the disaster of wage and price controls imposed by the Nixon administration in 1971. When the stock market responded euphorically to the imposition of these controls and the closing of the gold window, and the U.S. Chamber of Commerce and many other big business groups gave enthusiastic support, I decided that someone in politics had to condemn the controls, and offer the alternative that could explain the past and give hope for the future: the Austrian economists’ defense of the free market.

At the time I was convinced, like Ludwig von Mises, that no one could succeed in politics without serving the special interests of some politically powerful pressure group.

Although I was eventually elected, in terms of a conventional political career with real Washington impact, he was absolutely right. I have not developed legislative influence with the leadership of the Congress or the administration. Monies are deliberately deleted from routine water works bills for my district because I do not condone the system, nor vote for any of the appropriations.

My influence, such as it is, comes only by educating others about the rightness of the free market. The majority of the voters in my district have approved, as have those familiar with free-market economics.

And voters in other districts, encouraged by my speaking out for freedom and sound money, influence their representatives in the direction of a free market. My influence comes through education, not the usual techniques of a politician. But the more usual politicians in Congress will hardly solve our problems.

Americans need a better understanding of Austrian economics. Only then will politicians become more statesmanlike.

My introduction to Austrian economics came when I was studying medicine at Duke University and came across a copy of Hayek’s The Road to Serfdom.2 After devouring this, I was determined to read whatever I could find on what I thought was this new school of economic thought—especially the work of Mises.

Although the works were magnificent, and clarified many issues for me, it was more of a revelation to find intellectuals who could confirm what I “already knew”—that the free market is superior to a centrally planned economy.

I did not know how a free market accomplished its work, and so the study of economics showed me this, and how to build a case for it. But, like many people, I did not need to be convinced of the merits of individual freedom—for me that came naturally.

For as long as I can remember, I wanted to be free from government coercion in any form. All my natural instincts toward freedom were inevitably challenged by the established school system, the media, and the government. These systems tried to cast doubt on my conviction that only an unhampered market is consonant with individual liberty. Although reassured that intellectual giants like Mises agreed with a laissez-faire system, I was frustrated by knowing what was right, while watching a disaster developing for our economy. The better I came to understand how the market worked, the more I saw the need to implement these ideas through political action.

Political action aimed at change can, of course, take various forms. In 1776, in America, it was a war for independence from British oppression. In 1917, in Russia, violence was used to strengthen oppression.

Fortunately, it is possible to accomplish the proper sort of change through education, persuasion, and the democratic process. Our rights of free speech, assembly, religion, petition, and privacy remain essentially intact. Before our rights are lost, we must work to change the policies of 70 years of government interventionism. And the longer we wait the harder it will be.

Because of my interest in individual liberty and the free market, I became closely associated over the years with friends and students of Mises, those who knew the greatness of Mises from a long-term personal friendship with him. My contact, however, was always through his writings, except on one occasion. In 1971, during a busy day in my medical office, I took a long lunch to drive 60 miles to the University of Houston to hear one of the last formal lectures Mises gave—this one on socialism. Although 90 at the time, he was most impressive, and his presentation inspired me to more study of Austrian economics.

My subsequent meetings and friendship with the late Leonard Read and his Foundation for Economic Education also inspired me to work harder for a society unhampered by government intrusion into our personal and economic lives. My knowledge has been encouraged and bolstered through the extraordinary work of the Mises Institute, with its many publications and conferences, and its inspiring work among students choosing academic careers.

My friendships with two important students of Mises, Hans Sennholz and Murray Rothbard, were especially helpful in getting firsthand explanations of how the market functions. They helped me to refine my answers to the continual barrage of statist legislation that dominates the U.S. Congress. Their personal assistance was invaluable to me in my educational and political endeavors.

Such friendships are valuable, but the reassurance that sound thinkers were on my side was inspirational. It gave me the confidence I needed to intellectually defend my political and economic positions on the campaign trail and on the House floor.

1Ludwig von Mises, Human Action, Scholar’s Edition (Auburn, Alabama:
Mises Institute, 1998), p. 866.

2Friedrich A. Hayek, The Road to Serfdom (Chicago: University of Chicago
Press, 1944).

Mises and Austrian Economics : A Personal View .pdf file