Posted on | February 15, 2014 | 13 Comments
Last week, E.J. Dionne Jr. penned a column in the Washington Post that blamed adherence to the tenets of the Austrian school of economics for gridlock in Washington. Well, sort of. He seemed to say that Austrian economics simultaneously was an obscure set of ideas of which no one has heard (except Ron Paul) and is yet powerful enough to provide the rallying cry for the Republican Party in Washington. More important, he says that Austrian economics is troublesome as a practical matter by blocking activist-government Keynesian-style interventions and deficit spending that would spur the economy and bring about greater wealth redistribution, but [also that] Austrian economics is wrong as a theoretical and historical matter.
Volokh observes that Dionne presumes to attack Hayek’s 1944 book The Road to Serfdom, although “it isn’t evident from the column that Dionne has actually read The Road to Serfdom itself, as opposed to just reading commentators on the book who have also fundamentally misunderstood the book.” Margaret Thatcher famously remarked that the problem with socialism is that, “sooner or later, you run out of other people’s money”. However, we might add, liberals never run out of bad arguments for failed policies.