Is the free market just a Big Myth?

Is the free market just a myth dreamed up and propagandized by big business and libertarian economists?

The Big Myth Is Full of Recycled Anti-Capitalist Cheap Shots | Reason - Phillip W. Magness:

February 25, 2023 - "New academic 'histories' now appear on a near-monthly basis, each blaming a variety of social ills on the conspiratorial machinations around a single idea: the free market. Almost everything in this genre follows the same formula. When the American electorate fails to embrace the political priorities of an Ivy League humanities department, these disheartened authors cast about for a blameworthy culprit. They settle on 'market fundamentalism' or 'neoliberalism.' The explanation then takes a paranoid turn, declaring the targeted theories a 'manufactured myth' arising from the 'inventions' of 20th century business interests.... All eventually settle on a mundane conspiracy of business interests and libertarian economists, who allegedly derailed America from its progressive path by convincing people that markets work better than government at solving problems.

"At some 550 pages, The Big Myth: How American Business Taught Us To Loathe Government and Love the Free Market is among the most loquacious entrants into this crowded literature. Harvard University's Naomi Oreskes and California Institute of Technology historian Erik Conway lay out their conspiracy theory with formulaic precision, but their book is atypical in one significant way. While most of the other works in the anti-neoliberalism genre manage at least to excavate some interesting archival findings about libertarian economists (before badly misinterpreting them), this book is remarkably light on original content.... A reader ... will be left wondering why this same story needed yet another repackaged recitation....

"The Big Myth is structured in sequential vignettes about various themes and figures such as Ludwig von Mises, Leonard Read, Friedrich Hayek, Rose Wilder Lane, and Milton Friedman, all of whom are portrayed as either willing propagandists for big business or hapless dupes of the same. The authors expend almost no effort on understanding the arguments of the thinkers they set out to debunk.

"A revealing example appears in the book's treatment of Leonard Read's 1958 essay "I, Pencil." Read's story is a fairly straightforward allegory for Adam Smith's famous concept of the "invisible hand," showing how complex social coordination arises from routine economic exchanges and signals in the absence of a centralized design. To Oreskes and Conway, however, the metaphor is literally the hand of God working from above to ensure the market system provides. As they put it, 'God made the marketplace and the marketplace made the pencil; ergo God made the pencil'....

"Interpretive peculiarities continue in their treatment of Ludwig von Mises' Socialism. After initially acknowledging that the book was written in German in 1922, Oreskes and Conway soon drift into anachronism by insinuating that it was intended as a critique of President Franklin Roosevelt. ("Mises's use of the term socialism was misleading," they contend, "because no credible American political leader in 1944 was advocating central planning.") They augment this ascription of prophecy with a sleight of hand, replacing the revolutionary Marxists of Mises' original commentaries with the comparatively benign Norman Thomas as their own preferred avatar of socialism. Like other texts in the anti-neoliberalism genre, The Big Myth removes 20th century free market authors from their historical context by hand-waving the Soviet Union out of existence and proceeding as if socialism means nothing more than a narrow swath of modern Scandinavian social democracies.

"Such errors are frequently paired with another recurring theme: the authors' fundamental inability to approach their opponents with anything remotely resembling intellectual charity. The book is filled with gratuitous swipes, many of them comically ahistorical. This usually means either a false accusation of racism or a disparaging attack on a target's qualifications. Mises receives both types of abuse. After dubbing him an 'absolutist who sympathized with fascism,' Oreskes and Conway launch into an extended attack on the Austrian economist's migration to the United States in 1940. In their telling, Mises ... struggled to find a respectable academic job until 'dark money' funders created a succession of positions for him at New York University..... Meanwhile, Mises' academic work in the United States gained higher honors than either Oreskes or Conway has ever achieved.... 

"They casually brand Milton Friedman a 'racist extremist' and defender of segregation, but not for any actual defense of segregation. The authors simply disagree with his argument that markets were more effective tools for bringing about integration than government edicts.....

"They accuse Friedrich Hayek of eschewing 'the essence of scholarship,' which 'is to look past the immediacies of time and place,' while themselves constantly processing history through their modern partisan commitments. They accuse free market economists of venturing outside their scientific expertise while offering their own decidedly nonexpert opinions on everything from economic inequality to COVID-19.

"The authors' discussion of the latter subject, which closes the book, is unintentionally comedic. Oreskes and Conway use the pandemic to contrast U.S. 'market failure' with the alleged success of 'countries that mounted a strong, coordinated response,' China foremost among them. As their book went to press, China's centralized 'zero-COVID' regime was collapsing into the same unfettered disease spread that Oreskes and Conway ascribe to free markets. But readers should not expect any self-interrogation from this pair."

Read more: https://reason.com/2023/02/25/the-big-myth-is-full-of-recycled-anti-capitalist-cheap-shots/

Reed retires after 10 years as FEE president

Giving Thanks for Ten Years of Growth and Progress at FEE - Foundation for Economic Education - Lawrence W. Reed:

November 21, 2018 - "The holidays and final weeks of the year are upon us. It’s a time to count blessings.... I’m thankful for more than anybody has time to read about, but right now I am spending a lot of time appreciating the wonderful opportunity I’ve had to lead FEE for more than ten years as its president. Last June, I announced that when our board of trustees chooses a successor, I will step into an active president emeritus role. That will hopefully allow me more time to write and lecture. The search process is on track and will likely culminate with the announcement of a new president sometime in the first half of 2019....

"My 10+ years represent by far the longest and most consequential of any FEE presidency since that of our founder, Leonard Read. For the benefit of our readers and especially our thousands of financial supporters, I’d like to recap some of our accomplishments since 2008.

"Big and tough decisions were made. One was to move from ... Irvington, New York to Atlanta, Georgia. Many of us felt a deep and long-held attachment to the old mansion on the Hudson.... But the numbers made the case for moving. We chose Atlanta, cut our operating costs in half, avoided a small fortune in future upkeep of a 140-year-old building, and now have an office that fits our needs and mission perfectly. Good stewardship of donor dollars demands their most efficient and effective use in everything an organization does....

"Another big, tough decision was to re-focus and re-staff the editorial/content team. The wisdom of that decision was proven quickly. Our readership had been flat or declining for 15 years but it’s risen dramatically every year since that decision.

"Reflecting where our targeted audience goes to read content, we ended the costly print edition of our venerable monthly magazine, The Freeman. We now publish online every three days the equivalent of an entire issue of The Freeman. And instead of a readership in the thousands, we approach a million unique visitors to FEE.org most months of the year.

"We also do a lot less preaching to the choir these days.... FEE is now focused, laser-like, on young newcomers to liberty of high school and college age....

"Overall revenues, at $6 million last year, are three times what they were in 2008. Moreover, the million-dollar deficit we faced at that time was erased within two years. Every year for the past eight, our bottom line has been in the black and big. We’ve rebuilt our reserves and put FEE on its soundest financial footing in decades. Our auditors give us the highest marks and Charity Navigator ranks us in its top category for nonprofit soundness and management....

"FEE’s many accomplishments would not be possible without our generous supporters. As we continue to advance the ideas and principles of free markets and individual liberty among the rising generation, I ask that you please consider supporting FEE in this endeavor.... Thank you, FEE supporters, for all that you’ve done for us to make FEE the vibrant and productive organization it is today!"

Read more: https://fee.org/resources/giving-thanks-for-ten-years-of-growth-and-progress-at-fee/

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Bettina Bien Greaves dead at 100

Bettina Bien Greaves, R.I.P. | Liberty Unbound - Mark Skousen:

January 28, 2018 - "All scholars dream of having one or more disciples who will make sure their legacy is kept alive and their works and theories prominently trumpeted before the public eye.

"For the great Austrian economist Ludwig von Mises, there was quite a following, including two couples, Hans and Mary Sennholz, and Percy and Bettina Greaves. On January 22 the last of the four, Bettina Bien Greaves, died at the astounding age of 100. (Mary Sennholz also lived to be 100)....

"Bettina Greaves deserves to be honored as Mises’ most devoted student, and in July a room will be dedicated to her at the annual FreedomFest conference in Las Vegas.

"From the time she first heard Mises speak in 1951 at a Freeman seminar in Washington Square in New York City, Bettina was smitten. With a background in shorthand and secretarial work during the war years, she attended Mises’ famous New York University graduate seminar, taking copious notes on every lecture from 1951 until 1969. Although she had no formal training in economics, Greaves was the queen of the Austrian school and never deviated from it. She joined the Foundation [for] Economic Education (FEE) staff in 1953 and worked at the FEE mansion for the rest of her career. She survived everyone, including founder Leonard Read. After retiring, she stayed on as a board member and even donated her home in New York to FEE....

"She focused her career on advancing the works and ideas of the Austrian school, including the contributions by Henry Hazlitt and Hans Sennholz. She wrote many articles for The Freeman, gave lectures, and compiled anthologies about Austrian economics. She spearheaded FEE’s program to provide libertarian material for high school debaters with packets on foreign aid, government regulations, medical care, and other issues. She compiled and edited Free Market Economics: A Syllabus and Free Market Economics: A Basic Reader, a two-volume set that was distributed to thousands of students and teachers....

"But her main interest was always in her mentor, Ludwig von Mises.... She compiled, edited, and translated many of his books after his death in 1973. She also worked with her husband Percy [on a book] ... published in 1974, called Mises Made Easier (but never easy!). With the help of Robert W. McGee, she published an exhaustive Mises: An Annotated Bibliography (FEE, 1993, 1995). When the Liberty Fund decided to publish the complete works of Mises, Bettina was asked to be the editor, writing introductions for each volume."

Read more: http://www.libertyunbound.com/node/1808
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Antony Fisher, libertarian think-tank pioneer

Sphere of Influence: How American Libertarians Are Remaking Latin American Politics - Lee Fang, The Intercept:

August 9, 2017 - "Antony Fisher, a British entrepreneur and the founder of the Atlas Network, pioneered the sale of libertarian economics to the broader public.... Fisher made it his mission to, in the words of an associate, 'litter the world with free-market think tanks.'

"The basis for Fisher’s ideals came from Friedrich Hayek, a forbearer of modern thought on limited government. In 1946, after reading the Reader’s Digest version of Hayek’s seminal book, The Road to Serfdom, Fisher sought a meeting with the Austrian economist in London....

"Fisher was propelled forward by a fateful visit to [Leonard] Read’s newly formed nonprofit, the Foundation for Economic Education [FEE], in New York, which was founded to help sponsor and promote the ideas of free-market intellectuals. There, libertarian economist F.A. Harper, at the time working at FEE, advised Fisher on methods for creating his own nonprofit in the U.K....

"In 1955, Fisher founded the Institute of Economic Affairs [IEA].... The institute was a place to showcase opposition to British society’s growing welfare state, connecting journalists to free-market academics and disseminating critiques on a regular basis through opinion columns, radio interviews, and conferences. Businesses provided the bulk of funding to IEA, as leading British industrial and banking giants — from Barclays to BP — pitched in with annual contributions....

"As the economic slowdown and rising inflation of the 1970s shook the foundations of British society, Tory politicians gravitated more and more to the IEA to provide an alternative vision — and IEA obliged with accessible issue briefs and talking points politicians could use to bring free-market concepts to the public. The Atlas Network proudly proclaims that the IEA 'laid the intellectual groundwork for what later became the Thatcher Revolution of the 1980s.' IEA staff provided speechwriting for Margaret Thatcher; supplemented her campaign with policy papers on topics as varied as labor unions and price controls; and provided a response to her critics in the mass media. In a letter to Fisher after her 1979 victory, Thatcher wrote that the IEA created 'the climate of opinion which made our victory possible'....

"Hayek [had] set up an invitation-only group of free-market economists called the Mont Pelerin Society. One of its members, Ed Feulner, helped found the conservative Washington think tank the Heritage Foundation, drawing on IEA’s work for inspiration. Another Mont Pelerin member, Ed Crane, founded the Cato Institute, the most prominent libertarian think tank....

"In 1981, Fisher, who had settled in San Francisco, set out to develop the Atlas Economic Research Foundation at the urging of Hayek. Fisher had used his success with IEA to court corporate donors to help establish a string of smaller, sometimes regional think tanks in New York, Canada, California, and Texas, among other places. With Atlas, though, the scale for Fisher’s free-market think tank project would now be global: a nonprofit dedicated to continuing his work of establishing libertarian beachheads in every country of the world. 'The more institutes established throughout the world,' Fisher declared, 'the more opportunity to tackle diverse problems begging for resolution.'"

Read more: https://theintercept.com/2017/08/09/atlas-network-alejandro-chafuen-libertarian-think-tank-latin-america-brazil/
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Essentials of Economics back in 'print'

Essentials of Economics | Foundation for Economic Education - from the foreword by Jeffrey Tucker:

"The enduring power of this book is due to the enduring power of economic logic. If it is done well, it applies in all times and places. And this book does economics extremely well. In times when economics is subject to vast political manipulation, when people have abused the science to push political agendas contrary to everything economics stands for, this book stands out as a clear, objective, and rational statement of the core of what economics teaches....

"Ballvé was teaching in Mexico when he heard Mises speak. They struck up a correspondence. After Ballvé felt that he had most of his questions answered, he sat down to write this short book. It was published in Mexico in 1956. It sold very well and went into several editions.

"Two additional names deserve special mention in the tale of how it came to the English-speaking world. The William Volker Fund, administered by its founder’s nephew Harold W. Luhnow, funded a translation. This was one of thousands of incredible projects pushed by the Volker Fund in those years. Without this act of benevolence, this book would have likely been forgotten....

"But there is another important act of entrepreneurship behind this work. Leonard Read (1898–1983) was head of the Foundation for Economic Education. His passion was finding literature that propagated economics to the intelligent layman. He had a remarkably independent mind and a good eye for literary value. He read through Ballvé’s work and decided that he would use the extremely scarce resources of the foundation to promote and distribute the book as widely as possible.

"This was a risky decision. Ballvé was an unknown in the United States. He had no academic position in the United States. He had no champions, money, or connections. There was no quid pro quo at work. Read would not be able to sponsor lecture tours by the author or otherwise turn him into a big star....

"It was an excellent decision. FEE distributed many thousands of copies, perhaps even many tens of thousands of copies....

"What Read had seen in this book others saw as well. The book does not require a great deal of time, but it covers a vast scope of topics. It is, in many ways, the perfect tutorial in what economics is and what it implies about our world. It is completely free of the tendency toward political posturing. Its lessons are broad enough to apply in all times and all places. For this beleaguered generation of freedom-minded individuals assaulted on every side by trends toward centralization, this tutorial is truly the light."

Read more: https://fee.org/resources/essentials-of-economics/
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Leonard Read's collected works online at FEE

The Digitization of Leonard Read : Blog : Foundation for Economic Education - Jeffrey A. Tucker:

March 2, 2015 - "The collected works of FEE’s founder are now on FEE.org! We are super excited about this development because it gives new and permanent life to some of the wisest writings on freedom you will ever read....

"At the height of the New Deal, and four years before US entry into World War II, a new intellectual voice appeared on the national scene. His name was Leonard E. Read, head of the Los Angeles Chamber of Commerce. His book was Romance of Reality. It was a large book on economics published by Dodd, Mead, & Co., a prestigious publishing house, and it came out in 1937, just as hope that government planning would end the Depression was waning.

"Read’s approach to economics was different from almost anything else you could get your hands on at the time. It completely dismissed FDR’s New Deal in all its forms, but it went much further. It rejected all forms of control of people’s right to peacefully create, bargain, and associate. It saw government intervention, which he saw as the policy application of the principle of violence, as contributing nothing positive but only draining human energy from the project of creating prosperity.

"It was a defense of free enterprise on different grounds than most people would expect. It sounded different, and it felt different. There was nothing 'reactionary' about it. His prose was humane, with an emphasis on the future. His focus was on ethics. It traced the roots of the national problem to a failure of imagination. His proposed reform was not a political program but an intellectual and spiritual enlightenment....

"Romance of Reality appeared nearly a decade before that great moment in 1946 when Leonard Read would take the dramatic step of founding the Foundation for Economic Education. This was the realization of the dream he mapped out in this marvelous 1937 book. FEE was the nation’s first market-oriented think tank. In the postwar environment, FEE became a sanctuary for dissident European intellectuals like Ludwig von Mises, a platform for journalists like Henry Hazlitt, and a publishing venue for emergent geniuses like Milton Friedman....

"Throughout all his years at FEE, Leonard remained an active writer and intellectual force. His most famous essay on the division of labor, 'I, Pencil,' is a timeless classic, but his writings include so much more, on every topic you can imagine. His works were pored over by a generation of businesspeople and professionals who so badly needed inspiration in dark times. He provided it with his continuing themes: celebrating human creativity, warning against all forms of control, calling for individual improvement as a path toward freedom, eschewing politics as a workable solution, and pursuing the path of peace in all aspects of life."

Read more: http://fee.org/blog/detail/the-digitization-of-leonard-read
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Read's books can be accessed from the Libertarianism wiki - GD

Remembering Leonard P. Liggio (1933–2014)

RIP: Leonard P. Liggio (1933–2014) « Antiwar.com Blog - Sheldon Richman:

October 18, 2014 - "I lost one of my favorite teachers this week, as did so many other libertarians, not to mention the freedom movement as a whole. Leonard P. Liggio, 81, died after a period of declining health....

"Since the early 1950s, before he had reached the age of 20, Leonard was a scholar and activist for individual liberty, the free-market order, and the voluntary network of social cooperation we call civil society. He was in Youth for Taft in 1952, when the noninterventionist Sen. Robert Taft unsuccessfully sought the Republican presidential nomination....

"In his long career, Leonard was associated with the Volker Fund (a pioneering classical-liberal organization), the Institute for Humane Studies, Liberty Fund, the Cato Institute, and finally, the Atlas Network. He was also on the faculty of several universities, including George Mason Law School, after doing graduate work in law and history at various institutions.

"Leonard studied with Ludwig von Mises and a long list of eminent historians. He knew the founders of the modern libertarian movement: F.A. Harper, Leonard Read, Pierre Goodrich, Ayn Rand, and more. He was an early member of the Mont Pelerin Society, founded by F.A. Hayek, and eventually president of the organization. As a young man he became close friends with Murray Rothbard, Ralph Raico, George Reisman, Ronald Hamowy, Robert Hessen, and others who comprised their Circle Bastiat. He literally was present at the creation of the movement and helped to make it what it would become."

Read more: http://antiwar.com/blog/2014/10/18/rip-leonard-p-liggio-1933-2014/
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Libertarian classic 'I, Pencil' now available as video

Libertarian classic 'I, Pencil' gets modern makeover - Garry Reed:

November 16, 2012 - "The Competitive Enterprise Institute has remade Leonard E. Read's I, Pencil as an animated film, released on their website Thursday....

"I, Pencil was first published as an essay that appeared in the December 1958 issue of The Freeman, generally regarded as one of the oldest and most respected libertarian journals in the US, a publication of the Foundation for Economic Education (FEE) which was founded by Leonard E. Read in 1946.

The essay, under its full title, I, Pencil: My Family Tree as Told to Leonard E. Read, had a simple goal: 'to show that economics cannot be "planned" since no one, no matter how smart, can create something as incredibly ordinary as a pencil.' Instead, its creation requires a highly complex global industrial network organized not by a master planner but by the spontaneous supply-and-demand workings of the 'invisible hand' in the peaceful, voluntary, libertarian, laissez-faire free market.

"The goal of the project, CEI announced in a news release, 'was to translate Leonard Read’s story into an exciting and accessible film for the Internet age.'"

Read more: http://www.examiner.com/article/libertarian-classic-i-pencil-gets-modern-makeover
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