The American Economy and the End of Laissez-Faire: 1870 to World War II

American Economy Rothbard

1. The Civil War and Its Legacy

U.S. HistoryWar and Foreign Policy

01/15/2010Mises Media
How does government intervene in the economy? What are the consequences? What are the motivations behind passing these interventions? The lives of the people involved explain why they do these things.
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American Economy Rothbard

2. The Railroading of the American People

U.S. HistoryPolitical Theory

01/15/2010Mises Media
The railroads experienced both enormous growth and enormous government intervention. Land was closed off from settlement, causing farmers to oppose the privileged railroads. Markets were skewed. Waste and inefficiencies were high.
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American Economy Rothbard

3. The Decline of Laissez-Faire

Global EconomyInterventionism

01/16/2010Mises Media
Economics is a constant fight between the market and the government. The railroad cartel did not work against the free market even with ideal conditions. Airlines were tightly regulated until the small airlines began to compete in quality. Deregulation followed.
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American Economy Rothbard

4. The Rise and Fall of Monopolies

U.S. EconomyMonopoly and CompetitionPolitical Theory

01/16/2010Mises Media
Rockefeller's Standard Oil created a monopoly in kerosene refining by buying others out. A huge drop in the price of fuel followed, benefiting consumers, due to production efficiencies. Rothbard then discusses pietists, prohibitionists and the big political shift of 1896.
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American Economy Rothbard

5. Pietism and the Power Brokers

Financial MarketsU.S. Economy

01/16/2010Mises Media
When pietists shift to the Republican party, they form the progressive movement of 1900-1920. Rockefeller- McKinley forms alliances with power brokers like Kuhn, Loeb & Co., and Harriman (versus the Morgans).
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American Economy Rothbard

6. Tariffs, Inflation, Anti-Trust and Cartels

Money and BanksU.S. EconomyInterventionism

01/16/2010Mises Media
The Sherman Act outlawed restraint of trade . The Clayton Act added to that. Anti-Trust hysteria came in the 1940-50s. Whatever you did would be considered monopolistic. The charges didn't come from consumers, they came from whining competitors.
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American Economy Rothbard

7. Theodore Roosevelt: Master Reformer

Big GovernmentU.S. Economy

01/16/2010Mises Media
The progressive period saw a re-alliance of church and state - secularized extreme Pietism (Protestant sects) with government as savior by intervening in markets. The Pure Food and Drug Act was a prototype for the whole progressive movement toward purity of body, mind and soul.
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American Economy Rothbard

8. Regulation and Public Utilities

Big GovernmentInterventionismMonopoly and Competition

01/18/2010Mises Media
State dominated cartels used intellectuals as apologists for the government. Big unionism was to transmit orders to the working class. Public utilities were government monopolies for fifty year terms, run without any checks by the public. It is the function of government to run everything.
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American Economy Rothbard

9. The Progressive Era?

U.S. HistoryPolitical Theory

01/19/2010Mises Media
Progressive movement came in in 1900 to eliminate political parties. Technocrats and bureaucrats take over political power. Rural versus urban. Eliminate mayors, eliminate voting altogether, have appointed bureaucrats only. The Progressive party was created by JP Morgan interests.
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American Economy Rothbard

10. Cartelization of Banking: The Fed

The FedMoney and BanksU.S. EconomyMoney and Banking

01/19/2010Mises Media
The Federal Reserve was created in 1913 by Morgan men to cartelize the banking system and limit competition. This is fractional reserve banking rather than 100% reserves. Rothbard thinks it is fraud. It increases the money supply in an inflationary manner by creating money out of thin air.
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