Hayek: A Collaborative Biography: Part XIII: 'Fascism' and Liberalism in the (Austrian) Classical Tradition (Archival Insights into the Evolution of Economics)

Hayek claimed that he always made it his rule ‘not to be concerned with current politics, but to try to operate on public opinion.’ However, evidence suggests that he was a party political operative with ‘free’ market scholarship being the vehicle through which he sought – and achieved – party political influence. The ‘main purpose’ of his Mont Pelerin Society had ‘been wholly achieved’. Mises promoted ‘Fascists’ including Ludendorff and Hitler, and Hayekians promoted the Operation Condor military dictatorships and continue to maintain a ‘united front’ with ‘neo-Nazis.’ Hayek, who supported Pinochet’s torture-based regime and played a promotional role in ‘Dirty War’ Argentina, is presented as a saintly figure. These chapters place ‘free’ market promotion in the context of the post-1965 neo-Fascist ‘Strategy of Tension’, and examine Hayek’s role in the promotion of deflation that facilitated Hitler’s rise to power; his proposal to relocate Gibraltarians across the frontier into ‘Fascist’ Spain; the Austrian revival of the 1970s; the role of (what was presented as) ‘neutral academic data’ on behalf of the ‘International Right’ and their efforts to promote Franz Josef Strauss and Ronald Reagan and defend apartheid and the Shah of Iran/div Contents 6 Contributors 8 Chronology 9 Part I Origins 16 1 Introduction: ‘How We Developed a Consistent Doctrine and Some International Circles of Communication’ 17 The ‘Thing Taking Over’: Climate Change 17 The ‘Thing Taking Over’: ‘Spontaneous’ Order, Civilization and the Constitution of the United States 24 The ‘Thing Taking Over’: ’Fascism’ and the Austrian School ‘United Front’ with ‘Neo-Nazis’ 43 ‘Consistent Doctrine’ 52 ‘Secondhand Dealers in Opinion’ 54 ‘International Circles of Communication’ 70 Volume Overview 72 Origins 72 Part 2: Revival 77 Archival Insights into the Evolution of Economics (and Related Projects) 82 2 The German Historical School of Economics and the Foundations and Development of the Austrian School of Economics 93 Introduction 93 GHSE: A Brief History 95 The GHSE and the Debate Between the Historical and Philosophical Schools 102 ASE: Origins 104 GHSE and ASE: Main Points of Contentions 112 Methodological Collectivism vs. Methodological Individualism 116 The Deductive Method vs. The Inductive Method 122 Ethical Values and State Intervention 127 The Nature of Human Knowledge 132 Conclusion 137 Bibliography 139 3 Before Hitler: The Expansionary Programme of the Brauns Commission 143 Introduction 143 Business Cycle and Great Depression: Brüning’s Austerity Policy 145 The Brauns Commission: Hayek’s Criticism and Röpke’s Defence 154 Assessing the Alternative Proposals and Continuing the Austerity Policy 162 Conclusions 167 References 171 4 Hayek, Deflation, Gold, and Nihilism 174 Hayek’s Lament for the Gold Standard 183 Humean Misunderstandings of the Gold Standard 185 Hayekian Fallacies About the Interwar Gold Standard 190 Hayek and the Bank of France 194 Hayek on Primary and Secondary Deflation 196 Deflation and Nihilism 200 Conclusion 202 References 203 5 On the Rock: Hayek’s 1944 Proposals for the Gibraltar Economy 206 Introduction: A Rare Piece of Consultancy 206 Background: The Evacuation of Gibraltar 207 Preliminary Reports: Cost of Living Index; Wages and Salary Report; and a Proposal for a Statistical Survey 210 Some Economic Problems of Gibraltar 213 The Reaction to Hayek’s Proposals 216 The Broader Political Economy 217 Epilogue: Unintended Consequences 220 Conclusion 222 Bibliography 222 Part II Revival 224 6 The Austrian Revival 225 The Austrian Economics Newsletter 225 Who Was Involved? 228 Exchanges of Ideas: Conferences, Symposium and Sessions on Austrian Economics 229 Succession of the Tradition: The ‘New’ Austrian Economics Seminar 233 Institutional Supports for the Austrian Revival 236 Alternative Teachings: The Austrian Economics Programme at Various Universities 239 Intellectual Developments: Interviews and Essays 240 Evaluation and Criticism: Book Reviews 245 Austrian Economics in the 1970s 246 Appendix A 247 Appendix B 248 Appendix C 252 Appendix D 254 7 ‘Neutral Academic Data’ and the International Right 257 The Cold War and the International Right 257 The Bonnemaison Forum and Interdoc 266 IRD, the American ‘Military-Industrial Complex’ and the ISC 269 The Cercle Pinay and the AESP 278 The Strategy of Tension in Italy 294 Great Britain 297 The Monday Club and SIF 297 Unison, NAFF, Shield and FARI 302 The Madrid Meeting 316 The 6I, the Heritage Foundation and the Fight Against Unilateralism 318 Bibliography 330 8 Private Club and Secret Service Armageddon 333 The Left Is Coming! 333 Portugal and Spain 335 South Africa and the Cercle Pinay 342 The 6I, Freedom Blue Cross and the Shah of Iran 349 The Langemann Papers 355 Victory for Strauss 362 Reagan and Cercle’s American Friends 364 The International Freedom Foundation 368 Bibliography 370 9 The Pinochet Regime and the Trans-nationalization of Italian Neo-fascism 373 Introduction: Italian Neo-fascism, the Cold War and the ‘Strategy of Tension’ 373 The Transnational Fascist Network 380 The Italian Neo-fascists and Operation Condor: The Attempted Murder of Bernardo Leighton 387 The Italian Neo-fascists and the Chilean sanctuary 395 Conclusion 400 Bibliography 402 10 Hayek on Limited Democracy, Dictatorships, and the ‘Free’ Market: An Interview in Argentina, 1977 406 Introduction 406 Hayek’s Visit to Dirty War Argentina 407 Who Was Alsogaray? 411 Hayek and Alsogaray on Unlimited Democracy 414 Hayek on the Defects of Democracy 419 Hayek’s Many Contradictions 424 Conclusion 429 Bibliography 430 11 Friedrich Hayek and His Visits to Chile: Some Austrian Misrepresentations 433 Introduction 433 Why Did Hayek Visit Chile? 434 Hayek’s Views on Human Rights Violations 437 Were There Valid Reasons for Hayek to Refuse to Visit Chile at that Time? 442 Hayek’s Influence on the 1980 Chilean Constitution 445 The Choice of Viña Del Mar as the Venue for a 1981 Mont Pèlerin Society Meeting 450 Differences Between the English and Spanish Versions 451 The Political and Economic Situation Under Allende’s Socialist Government 452 Hayek’s Biography 458 El Mercurio Interview: Hayek’s Views on Dictatorships 460 Friedman’s Involvement in Pinochet’s Chile 462 Castro’s Visit to Chile During Allende’s Presidency 467 El Mercurio’s Relationship with the CIA and Pinochet’s Dictatorship 468 Conclusion 470 Bibliography 470 Index 473 Front Matter ....Pages i-xv Front Matter ....Pages 1-1 Introduction: ‘How We Developed a Consistent Doctrine and Some International Circles of Communication’ (Robert Leeson)....Pages 3-78 The German Historical School of Economics and the Foundations and Development of the Austrian School of Economics (Birsen Filip)....Pages 79-128 Before Hitler: The Expansionary Programme of the Brauns Commission (Antonio Magliulo)....Pages 129-159 Hayek, Deflation, Gold, and Nihilism (David Glasner)....Pages 161-192 On the Rock: Hayek’s 1944 Proposals for the Gibraltar Economy (Chris Grocott)....Pages 193-210 Front Matter ....Pages 211-211 The Austrian Revival (Hiroyuki Okon)....Pages 213-244 ‘Neutral Academic Data’ and the International Right (David Teacher)....Pages 245-320 Private Club and Secret Service Armageddon (David Teacher)....Pages 321-360 The Pinochet Regime and the Trans-nationalization of Italian Neo-fascism (Galadriel Ravelli, Anna Cento Bull)....Pages 361-393 Hayek on Limited Democracy, Dictatorships, and the ‘Free’ Market: An Interview in Argentina, 1977 (Birsen Filip)....Pages 395-421 Friedrich Hayek and His Visits to Chile: Some Austrian Misrepresentations (Birsen Filip)....Pages 423-462 Back Matter ....Pages 463-497 F.A. von Hayek (1899-1992) was a Nobel Prize winning economist, famous for promoting an Austrian version of classical liberalism. The multi-volume Hayek: A Collaborative Biography examines the evolution of his life and influence. Two concepts of civilization revolve around power - should it be separated or concentrated? Liberalism in the non-Austrian classical tradition remains fearful of power concentrated in the hands of government, labour unions or corporations; Red Terrorists sought to monopolize power to liquidate enemies and competitors as a prelude to utopia (the 'withering away of the State'); and behind the 'slogan of liberty, ' White Terror promoters (Mises and Hayek) sought to concentrate power in the hands of a 'dictatorial democracy' where henchmen would liquidate enemies, and - 'guided' by 'utopia' (the 'spontaneous' order) - follow orders from their social superiors. This volume, Part XII, examines the 'free' market Use of Knowledge in Society; examines the foundations of 'free' market educational credentials; and asks whether those funded by the tobacco industry and the carbon lobby should be accorded 'independent policy expert' status "Fifteen scholars have collaborated to provide a comprehensive analysis of the life and work of one of the most influential economists of all time. The authors include the Official Historian of the Reserve Bank of Australia (Selwyn Cornish), the Director of the von Mises Institute (Douglas French), Hayek's second General Editor (Stephen Kresge), the founder of est (Werner Erhard), plus seven Professors - of Economics (David Laidler, Viktor Vanberg and Robert Leeson), Economic History (Avner Offer and Jan-Otmar Hesse), Politics (Melissa Lane) and Social Policy (Nils Goldschmidt). The Universities represented include Stanford, Princeton, Oxford, Bielefeld, Western Ontario, Uppsala and Freiburg. This is the first time that such a distinguished collection of scholars--from a variety of perspectives--have attempted to integrate Hayek's life, work and influence on world history with the archival evidence."-- Provided by publisher