Murray N. Rothbard

Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian movement and a founder and leading theoretician of anarcho-capitalism. He wrote over twenty books on political theory, history, economics, and other subjects.

Rothbard argued that all services provided by the "monopoly system of the corporate state" could be provided more efficiently by the private sector and wrote that the state is "the organization of robbery systematized and writ large". He called fractional-reserve banking a form of fraud and opposed central banking. He categorically opposed all military, political, and economic interventionism in the affairs of other nations. According to his protégé Hans-Hermann Hoppe, " ere would be no anarcho-capitalist movement to speak of without Rothbard".

Libertarian economist Jeffrey Herbener, who calls Rothbard his friend and "intellectual mentor", wrote that Rothbard received "only ostracism" from mainstream academia. Rothbard rejected mainstream economic methodologies and instead embraced the praxeology of his most important intellectual precursor, Ludwig von Mises. To promote his economic and political ideas, Rothbard joined Lew Rockwell and Burton Blumert in 1982 to establish the Mises Institute in Alabama.

Later in his career Rothbard advocated a libertarian alliance with Paleoconservatism (which he called Paleolibertarianism) and praised David Duke. In the 2010s he received renewed attention from critics who saw him as an influence on the alt right.

Life and work

Education

Rothbard's parents were David and Rae Rothbard, Jewish immigrants to the United States from Poland and Russia, respectively. David was a chemist. Murray attended Birch Wathen Lenox School, a private school in New York City. He later said he much preferred Birch Wathen to the "debasing and egalitarian public school system" he had attended in the Bronx.

Rothbard wrote of having grown up as a "right-winger" (adherent of the " Old Right") among friends and neighbors who were "communists or fellow-travelers". He was a member of The New York Young Republican Club in his youth. Rothbard characterized his immigrant father as an individualist who embraced the American values of minimal government, free enterprise, private property and "a determination to rise by one's own merits… " l socialism seemed to me monstrously coercive and abhorrent".

Rothbard attended Columbia University, where he received a Bachelor of Arts degree in mathematics in 1945 and a PhD in economics in 1956. The delay in receiving his PhD was due in part to conflict with his advisor, Joseph Dorfman, and in part to Arthur Burns’s rejecting his dissertation. Burns was a longtime friend of the Rothbards and their neighbor at their Manhattan apartment building. It was only after Burns went on leave from the Columbia faculty to head President Eisenhower's Council of Economic Advisers that Rothbard's thesis was accepted and he received his doctorate.French, Doug (December 27, 2010
Burns Diary Exposes the Myth of Fed Independence
, Ludwig von Mises Institute Rothbard later said that all his fellow students were extreme leftists and that he was one of only two Republicans at Columbia at the time.

During the 1940s, Rothbard became acquainted with Frank Chodorov and read widely in libertarian-oriented works by Albert Jay Nock, Garet Garrett, Isabel Paterson, H. L. Mencken, and Austrian economist Ludwig von Mises. In the early 1950s, when Mises was teaching in the Wall Street division of the New York University Stern School of Business, Rothbard attended his unofficial seminar. Rothbard was greatly influenced by Mises's book ''Human Action''. He attracted the attention of the William Volker Fund, a group that provided financial backing to promote right-wing ideologies in the 1950s and early 1960s. The Volker Fund paid Rothbard to write a textbook to explain ''Human Action'' in a form that could be used to introduce college undergraduates to Mises's views; a sample chapter he wrote on money and credit won Mises's approval. For ten years, the Volker Fund paid him a retainer as a "senior analyst". As Rothbard continued his work, he enlarged the project. The result was his book '' Man, Economy, and State'', published in 1962. Upon its publication, Mises praised Rothbard's work effusively.

Marriage, employment, and activism

In 1953, Rothbard married JoAnn Beatrice Schumacher (September 17, 1928 – October 29, 1999), whom he called Joey, in New York City. JoAnn was a historian, Rothbard's personal editor and a close adviser as well as hostess of his Rothbard Salon. They enjoyed a loving marriage and Rothbard often called her "the indispensable framework" of his life and achievements. According to Joey, the Volker Fund's patronage allowed Rothbard to work from home as a freelance theorist and pundit for the first 15 years of their marriage. The Volker Fund collapsed in 1962, leading Rothbard to seek employment from various New York academic institutions. He was offered a part-time position teaching economics to engineering students at Brooklyn Polytechnic Institute in 1966 at age 40. The institution had no economics department or economics majors and Rothbard derided its social science department as " Marxist", but Justin Raimondo writes that Rothbard liked teaching at Brooklyn Polytechnic because working only two days a week gave him freedom to contribute to developments in libertarian politics.

Rothbard continued in this role until 1986.Peter G. Klein, ed., F. A. Hayek, ''The Fortunes of Liberalism: Essays on Austrian Economics and the Ideal of Freedom'', University of Chicago Press, 2012
p. 54
, Then 60 years old, Rothbard left Brooklyn Polytechnic Institute for the Lee Business School at the University of Nevada, Las Vegas (UNLV), where he held the title of S.J. Hall Distinguished Professor of Economics, a chair endowed by a libertarian businessman. According to Rothbard's friend, colleague and fellow Misesian economist Hans-Hermann Hoppe, Rothbard led a "fringe existence" in academia, but he was able to attract a large number of "students and disciples" through his writings, thereby becoming "the creator and one of the principal agents of the contemporary libertarian movement". He kept his position at UNLV from 1986 until his death. Rothbard founded the Center for Libertarian Studies in 1976 and the '' Journal of Libertarian Studies'' in 1977. In 1982, he co-founded the Ludwig von Mises Institute in Auburn, Alabama, and was vice president of academic affairs until 1995. Rothbard also founded the institute's '' Review of Austrian Economics'', a heterodox economics journal later renamed the ''Quarterly Journal of Austrian Economics'', in 1987.

After Rothbard's death, Joey reflected on his happiness and bright spirit, saying, "he managed to make a living for 40 years without having to get up before noon. This was important to him." Rothbard was known to be a " night owl". She recalled how Rothbard would begin every day with a phone conversation with his colleague Lew Rockwell: "Gales of laughter would shake the house or apartment, as they checked in with each other. Murray thought it was the best possible way to start a day". Rothbard was irreligious and agnostic about God, describing himself as a "mixture of an agnostic and a Reform Jew". Despite identifying as an agnostic and an atheist, he was critical of the "left-libertarian hostility to religion". In Rothbard's later years, many of his friends anticipated that he would convert to Catholicism, but he never did. ''The New York Times'' obituary called Rothbard "an economist and social philosopher who fiercely defended individual freedom against government intervention".David Stout
Obituary: Murray N. Rothbard, Economist And Free-Market Exponent, 68
, ''The New York Times'', January 11, 1995.

Creation of the Mises Institute

As a result of the economic works of Murray Rothbard, Hans-Hermann Hoppe, Ludwig von Mises, and other Austrian economists, the Mises Institute was founded in 1982 by Lew Rockwell, Burton Blumert, and Murray Rothbard, following a split between the Cato Institute and Rothbard, who had been one of the founders of the Cato Institute.

Conflict with Ayn Rand

In 1954, Rothbard, along with several other attendees of Mises's seminar, joined the circle of novelist Ayn Rand, the founder of Objectivism. He soon parted from her, writing among other things that her ideas were not as original as she proclaimed, but similar to those of Aristotle, Thomas Aquinas and Herbert Spencer. In 1958, after the publication of Rand's novel ''Atlas Shrugged'', Rothbard wrote her a "fan letter", calling the book "an infinite treasure house" and "not merely the greatest novel ever written, utone of the very greatest books ever written, fiction or nonfiction". He also wrote: " u introduced me to the whole field of natural rights and natural law philosophy", prompting him to learn "the glorious natural rights tradition". Rothbard rejoined Rand's circle for a few months, but soon broke with Rand again over various differences, including his defense of his interpretation of anarchism.

Rothbard later satirized Rand's acolytes in his unpublished one-act farce ''Mozart Was a Red'' and his essay "The Sociology of the Ayn Rand Cult". He characterized Rand's circle as a "dogmatic, personality cult". His play parodies Rand (through the character Carson Sand) and her friends and is set during a visit from Keith Hackley, a fan of Sand's novel ''The Brow of Zeus'' (a play on ''Atlas Shrugged'').''Mozart Was a Red: A Morality Play in One Act''
, Lew Rockwell, by Murray N. Rothbard, early 1960s, with an introduction by Justin Raimondo

Death

Rothbard died of a heart attack on January 7, 1995 in St. Luke's-Roosevelt Hospital Center in Manhattan, at the age of 68.

Ethical and philosophical views

Austrian economics

Rothbard was an advocate and practitioner of the Austrian School tradition of his teacher Ludwig von Mises. Like Mises, Rothbard rejected the application of the scientific method to economics and dismissed econometrics, empirical and statistical analysis and other tools of mainstream social science as outside the field (economic history might use those tools, but not Economics proper).Rothbard, Murray (1976)
''Praxeology: The Methodology of Austrian Economics''
. Mises.org He instead embraced praxeology, the strictly ''a priori'' methodology of Mises. Praxeology conceives of economic laws as akin to geometric or mathematical axioms: fixed, unchanging, objective and discernible through logical reasoning.

According to Misesian economist Hans-Hermann Hoppe, eschewing the scientific method and empiricism distinguishes the Misesian approach "from all other current economic schools", which dismiss the Misesian approach as "dogmatic and unscientific." Mark Skousen of Chapman University and the Foundation for Economic Education, a critic of mainstream economics, praises Rothbard as brilliant, his writing style persuasive, his economic arguments nuanced and logically rigorous and his Misesian methodology sound.Mark Skousen.
The Making of Modern Economics
'' (M. E. Sharpe, 2009, p. 390). Skousen writes that Rothbard "refused to write for the academic journals." But Skousen concedes that Rothbard was effectively "outside the discipline" of mainstream economics and that his work "fell on deaf ears" outside his ideological circles.

Rothbard wrote extensively on Austrian business cycle theory and as part of this approach strongly opposed central banking, fiat money and fractional-reserve banking, advocating a gold standard and a 100% reserve requirement for banks.

Polemics against mainstream economics

Rothbard wrote a series of polemics in which he deprecated a number of leading modern economists. He vilified Adam Smith, calling him a "shameless plagiarist" who set economics off track, ultimately leading to the rise of Marxism. Rothbard praised Smith's contemporaries, including Richard Cantillon, Anne Robert Jacques Turgot and Étienne Bonnot de Condillac, for developing the subjective theory of value. In response to Rothbard's charge that Smith's ''The Wealth of Nations'' was largely plagiarized, David D. Friedman castigated Rothbard's scholarship and character, saying that he "was itherdeliberately dishonest or never really read the book he was criticizing". Tony Endres called Rothbard's treatment of Smith a "travesty".

Rothbard was equally scathing in his criticism of John Maynard Keynes, calling him weak on economic theory and a shallow political opportunist. Rothbard also wrote more generally that Keynesian-style governmental regulation of money and credit created a "dismal monetary and banking situation". He called John Stuart Mill a "wooly man of mush" and speculated that Mill's "soft" personality led his economic thought astray.

Rothbard was critical of monetarist economist Milton Friedman. In his polemic "Milton Friedman Unraveled", he called Friedman a "statist", a "favorite of the establishment", a friend of and "apologist" for Richard Nixon and a "pernicious influence" on public policy. Rothbard said that libertarians should scorn rather than celebrate Friedman's academic prestige and political influence. Noting that Rothbard has "been nasty to me and my work", Friedman responded to Rothbard's criticism by calling him a "cult builder and a dogmatist".

In a memorial volume published by the Mises Institute, Rothbard's protégé and libertarian theorist Hans-Hermann Hoppe wrote that '' Man, Economy, and State'' "presented a blistering refutation of all variants of mathematical economics" and included it among Rothbard's "almost mind-boggling achievements". Hoppe lamented that, like Mises, Rothbard died without winning the Nobel Prize that Hoppe says Rothbard deserved "twice over". Although Hoppe acknowledged that Rothbard and his work were largely ignored by academia, he called Rothbard an "intellectual giant" comparable to Aristotle, John Locke, and Immanuel Kant.

Disputes with other Austrian economists

Although he self-identified as an Austrian economist, Rothbard's methodology was at odds with that of many other Austrians. In 1956, Rothbard deprecated the views of Austrian economist Fritz Machlup, stating that Machlup was no praxeologist and calling him instead a "positivist" who failed to represent the views of Ludwig von Mises. Rothbard stated that in fact Machlup shared the opposing positivist view associated with economist Milton Friedman. Mises and Machlup had been colleagues in 1920s Vienna before each relocated to the United States and Mises later urged his American protege Israel Kirzner to pursue his PhD studies with Machlup at Johns Hopkins University.

According to libertarian economists Tyler Cowen and Richard Fink, Rothbard wrote that the term evenly rotating economy (ERE) can be used to analyze complexity in a world of change. The words ERE had been introduced by Mises as an alternative nomenclature for the mainstream economic method of static equilibrium and general equilibrium analysis. Cowen and Fink found "serious inconsistencies in both the nature of the ERE and its suggested uses". With the sole exception of Rothbard, no other economist adopted Mises' term and the concept continued to be called "equilibrium analysis".

In a 2011 article critical of Rothbard's "reflexive opposition" to inflation, ''The Economist'' noted that his views are increasingly gaining influence among politicians and laypeople on the right. The article contrasted Rothbard's categorical rejection of inflationary policies with the monetary views of "sophisticated Austrian-school monetary economists such as George Selgin and Larry White", hofollow Hayek in treating stability of nominal spending as a monetary ideal—a position "not all that different from Mr cottSumner's".

According to economist Peter Boettke, Rothbard is better described as a property rights economist than as an Austrian economist. In 1988, Boettke noted that Rothbard "vehemently attacked all of the books of the younger Austrians".

Ethics

Although Rothbard adopted Ludwig von Mises' deductive methodology for his social theory and economics, he parted with Mises on the question of ethics. Specifically, he rejected Mises' conviction that ethical values remain subjective and opposed utilitarianism in favor of principle-based, natural law reasoning. In defense of his free market views, Mises employed utilitarian economic arguments aimed at demonstrating that interventionist policies made all of society worse off. On the other hand, Rothbard concluded that interventionist policies do in fact benefit some people, including certain government employees and beneficiaries of social programs. Therefore, unlike Mises, Rothbard argued for an objective, natural-law basis for the free market. He called this principle "self-ownership", loosely basing the idea on the writings of John Locke and also borrowing concepts from classical liberalism and the anti-imperialism of the Old Right.

Rothbard accepted the labor theory of property, but rejected the Lockean proviso, arguing that if an individual mixes his labor with unowned land then he becomes the proper owner eternally and that after that time it is private property which may change hands only by trade or gift.

Rothbard was a strong critic of egalitarianism. The title essay of Rothbard's 1974 book '' Egalitarianism as a Revolt Against Nature and Other Essays'' held: "Equality is not in the natural order of things, and the crusade to make everyone equal in every respect (except before the law) is certain to have disastrous consequences". In it, Rothbard wrote: "At the heart of the egalitarian left is the pathological belief that there is no structure of reality; that all the world is a tabula rasa that can be changed at any moment in any desired direction by the mere exercise of human will".

Noam Chomsky critiqued Rothbard's ideal society as "a world so full of hate that no human being would want to live in it... First of all, it couldn't function for a second—and if it could, all you'd want to do is get out, or commit suicide or something."

Anarcho-capitalism

According to anarcho-capitalists, various theorists have espoused legal philosophies similar to anarcho-capitalism. However, Rothbard was the first person to use the term as in the mid-20th century he synthesized elements from the Austrian School of economics, classical liberalism and 19th-century American individualist anarchists. According to Lew Rockwell, Rothbard was the "conscience" of all the various strains of what he described as "libertarian anarchism", because their advocates (described as Rothbard's former "colleagues"), had often been personally inspired by his example.

During his years at graduate school in the late 1940s, Rothbard considered whether a strict adherence to libertarian and ''laissez-faire'' principles required the abolition of the state altogether. He visited Baldy Harper, a founder of the Foundation for Economic Education, who doubted the need for any government whatsoever. Rothbard said that during this period, he was influenced by 19th-century American individualist anarchists like Lysander Spooner and Benjamin Tucker and the Belgian economist Gustave de Molinari who wrote about how such a system could work. Thus, he "combined the ''laissez-faire'' economics of Mises with the absolutist views of human rights and rejection of the state" from individualist anarchists.

Rothbard began to consider himself a "private property anarchist" in 1950 and later began to use "anarcho-capitalist" to describe his political ideology.Roberta Modugno Crocetta
Murray Rothbard's anarcho-capitalism in the contemporary debate. A critical defense
, Ludwig Von Mises Institute. In his anarcho-capitalist model, the system of private property is upheld by private firms, such as hypothesized protection agencies, which compete in a free market and are voluntarily supported by consumers who choose to use their protective and judicial services. Anarcho-capitalists describe this as "the end of the state monopoly on force". He later came to terms that anarchists identified mostly with socialism, and in an unpublished article wrote that individualist anarchism is different from anarcho-capitalism and other capitalist theories due to the individualist anarchists retaining the labor theory of value and socialist doctrines, suggesting a new term to identify himself: ''nonarchist''. In an unpublished article, Rothbard concludes his position not only by affirming that he is not nanarchist, but that those who ''"call us anarchists are not on firm etymological ground, and are being completely unhistorical''", while also arguing that anarchism ''"in practice"'' leads to something that "is not really anarchism at all. It is either Communism or chaos."Rothbard, Murray (1950s)
"Are Libertarians 'Anarchists'?"
Lew Rockwell.com. Retrieved September 4, 2020.

In ''Man, Economy, and State'', Rothbard divides the various kinds of state intervention in three categories: "autistic intervention", which is interference with private non-economic activities; "binary intervention", which is forced exchange between individuals and the state; and "triangular intervention", which is state-mandated exchange between individuals. According to Sanford Ikeda, Rothbard's typology "eliminates the gaps and inconsistencies that appear in Mises's original formulation". Rothbard writes in '' Power and Market'' that the role of the economist in a free market is limited, but it is much larger in a government that solicits economic policy recommendations. Rothbard argues that self-interest therefore prejudices the views of many economists in favor of increased government intervention.

Race, gender, and civil rights

Michael O'Malley, associate professor of history at George Mason University, characterizes Rothbard's "overall tone regard ng the civil rights movement and the women's suffrage movement to be "contemptuous and hostile".O'Malley, Michael (2012). ''Face Value: The Entwined Histories of Money and Race in America.'' Chicago, Illinois: University of Chicago Press. pp. 205–07 Rothbard criticized women's rights activists, attributing the growth of the welfare state to politically active spinsters "whose busybody inclinations were not fettered by the responsibilities of health and heart". Rothbard argued that the progressive movement, which he regarded as a noxious influence on the United States, was spearheaded by a coalition of Yankee Protestants (people from the six New England states and upstate New York who were Protestants of English descent), Jewish women and "lesbian spinsters".

Rothbard called for the elimination of "the entire 'civil rights' structure" stating that it "tramples on the property rights of every American". He consistently favored repeal of the 1964 Civil Rights Act, including Title VII regarding employment discrimination, and called for overturning the ''Brown v. Board of Education'' decision on the grounds that state-mandated integration of schools violated libertarian principles. In an essay called "Right-wing Populism", Rothbard proposed a set of measures to "reach out" to the "middle and working classes", which included urging the police to crack down on "street criminals", writing that "cops must be unleashed" and "allowed to administer instant punishment, subject of course to liability when they are in error". He also advocated that the police "clear the streets of bums and vagrants."

Rothbard held strong opinions about many leaders of the civil rights movement. He considered black separatist Malcolm X to be a "great black leader" and integrationist Martin Luther King Jr. to be favored by whites because he "was the major restraining force on the developing Negro revolution". In 1993 he rejected the vision of a "separate black nation", asking "does anyone really believe that ... New Africa would be content to strike out on its own, with no massive "foreign aid" from the U.S.A.?". Rothbard also suggested that opposition to Martin Luther King Jr., whom he demeaned as a "coercive integrationist", should be a litmus test for members of his "paleolibertarian" political movement.

One former student described Rothbard as privately referring to Jews as "kikes".

Opposition to war

Like Randolph Bourne, Rothbard believed that "war is the health of the state". According to David Gordon, this was the reason for Rothbard's opposition to aggressive foreign policy. Rothbard believed that stopping new wars was necessary and that knowledge of how government had led citizens into earlier wars was important. Two essays expanded on these views "War, Peace, and the State" and "Anatomy of the State". Rothbard used insights of Vilfredo Pareto, Gaetano Mosca and Robert Michels to build a model of state personnel, goals and ideology. In an obituary for his friend, the Holocaust denier Harry Elmer Barnes, Rothbard wrote:

Rothbard's colleague Joseph Stromberg notes that Rothbard made two exceptions to his general condemnation of war: "the American Revolution and the War for Southern Independence, as viewed from the Confederate side". Rothbard condemned the " Northern war against slavery", saying it was inspired by "fanatical" religious faith and characterized by "a cheerful willingness to uproot institutions, to commit mayhem and mass murder, to plunder and loot and destroy, all in the name of high moral principle". He celebrated Jefferson Davis, Robert E. Lee and other prominent Confederates as heroes while denouncing Abraham Lincoln, Ulysses S. Grant and other Union leaders for "open ngthe Pandora's Box of genocide and the extermination of civilians" in their war against the South.

Middle East conflict

Rothbard's '' The Libertarian Forum'' blamed the Middle East conflict on Israeli aggression "fueled by American arms and money". Rothbard warned that the Middle East conflict would draw the United States into a world war. He was anti-Zionist and opposed United States involvement in the Middle East. Rothbard criticized the Camp David Accords for having betrayed Palestinian aspirations and opposed Israel's 1982 invasion of Lebanon. In his essay, "War Guilt in the Middle East", Rothbard states that Israel refused "to let these refugees return and reclaim the property taken from them". He took negative views of the two state solution for the Israeli–Palestinian conflict, saying:

On the one hand there are the Palestinian Arabs, who have tilled the soil or otherwise used the land of Palestine for centuries; and on the other, there are a group of external fanatics, who come from all over the world, and who claim the entire land area as "given" to them as a collective religion or tribe at some remote or legendary time in the past. There is no way the two claims can be resolved to the satisfaction of both parties. There can be no genuine settlement, no "peace" in the face of this irrepressible conflict; there can only be either a war to the death, or an uneasy practical compromise which can satisfy no one. That is the harsh reality of the Middle East.

Historical revisionism

Rothbard embraced "historical revisionism" as an antidote to what he perceived to be the dominant influence exerted by corrupt "court intellectuals" over mainstream historical narratives.Rothbard, Murray (February 1976)
"The Case for Revisionism."
Mises.org Rothbard wrote that these mainstream intellectuals distorted the historical record in favor of "the state" in exchange for "wealth, power, and prestige" from the state. Rothbard characterized the revisionist task as "penetrating the fog of lies and deception of the State and its Court Intellectuals, and to present to the public the true history". He was influenced by and called a champion of the historian and Holocaust denier Harry Elmer Barnes. Rothbard endorsed Barnes's revisionism on World War II, favorably citing his view that "the murder of Germans and Japanese was the overriding aim of World War II". In addition to broadly supporting his historical views, Rothbard promoted Barnes as an influence for future revisionists.Rothbard, Murray (1968)
"Harry Elmer Barnes as Revisionist of the Cold War."

Rothbard's endorsing of World War II revisionism and his association with Barnes and other Holocaust deniers have drawn criticism. Kevin D. Williamson wrote an opinion piece published by ''National Review'' which condemned Rothbard for "making common cause with the 'revisionist' historians of the Third Reich", a term he used to describe American Holocaust deniers associated with Rothbard, such as James J. Martin of the Institute for Historical Review. The piece also characterized "Rothbard and his faction" as being "culpably indulgent" of Holocaust denial, the view which "specifically denies that the Holocaust actually happened or holds that it was in some way exaggerated".

In an article for Rothbard's 50th birthday, Rothbard's friend and Buffalo State College historian Ralph Raico

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