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August 15, 2011 49145 $4.99 JOHN J. MILLER ON MOURDOCK VS. LUGAR
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0 74820 08155 6 www.nationalreview.com base_milliken-mar 22.qxd 7/26/2011 12:41 PM Page 1 CLASH OF THE TITANS
“You’re all a bunch of socialists!” — Ludwig von Mises (Vienna) “We are friends and foes!” — Milton Friedman (Chicago)
Austrian and Chicago economists have battled Keynesians, Marxists and socialists alike, but they often fight each other as well. What are the differences between the Austrian and Chicago schools, and why do free-market economists disagree so much?
After years of research and interviews in both camps, Professor Mark Skousen has uncovered the strengths and weaknesses of each, and determines who’s right and who’s wrong at the end of each chapter by declaring either “Advantage, Vienna” or “Advantage, Chicago.” He ends with a chapter on how they could reconcile on major issues.
Chapters from Highlights….. Vienna and Chicago, Friends or Foes? • Whose methodology is more controversial—Mises or Friedman? 1. Introduction: A Tale of Two Schools • A debate that the Austrians have clearly won. 2. Old and New Vienna: The Rise, Fall, and Rebirth of the Austrian School • Why Chicago economists have won more Nobel Prizes than the Austrians. 3. The Imperialist Chicago School • Why did Israel Kirzner call George Stigler’s essay on politics “bizarre, 4. Methodenstreit: Should a Theory be Empirically Tested? disturbing, unfortunate, and an affront to common sense”? 5. Gold vs. Fiat Money: What is the Ideal Monetary Standard? • Emotional fights at the Mont Pelerin Society, Foundation for 6. Macroeconomics, the Great Depression, and the Business Cycle Economic Education, and other freedom organizations. 7. Antitrust, Public Choice and Political Economy: • Why Friedman and Mises admire Adam Smith, What is the Proper Role of Government? and Murray Rothbard despises him. 8. Who Are the Great Economists? • Why some Austrians call Friedman a “Keynesian” and “a statist” 9. Faith and Reason in Capitalism while Friedman calls Mises and Ayn Rand “intolerant” and “extremist.” 10. The Future of Free-Market Economics: • Major differences between Mises and Hayek….. How Far is Vienna from Chicago? and between Stigler and Friedman. • The “fortress” mentality: Why the Mises Institute doesn’t advertise, or appear on TV. • Amazing similarities between Austrians and Marxists, How to Order this Book and between Chicagoans and Keynesians. • Why Mises refused to use graphs and charts in his books. Call 1-800-211-7661 • How Friedman shocked the audience when asked Vienna and Chicago, Friends or Foes? is a 320-page “Who is the better economist, Keynes or Mises?” quality paperback available at a special discount price • Why Austrians are usually pessimists and Chicagoans optimists. from Capital Press/Regnery. The book normally sells • Powerful contributions by the “new” generation of for $24.95, but you pay only $19.95, plus $5 postage Austrian and Chicago economists….. & handling. Mention code "Vienna" for the book. FOR CREDIT CARD ORDERS, PLEASE CALL EAGLE PUBLISHING AT 1-800-211-7661. From the Chicago school: “This tale is thorough, thoughtful, even- One Massachusetts Ave. NW handed, and highly readable. All economists, of whatever school, will find it both instructive and entertaining.” —Milton Friedman Washington, DC 20001 From the Austrian school: “In his upbeat tale of two schools, Skousen gives us a delightful blend of theory, history, and political science, and shows that there is much common ground and scope TWO BONUSES! for development.” —Roger W. Garrison Order Today and Receive a FREE COPY of "I don’t know whether I should love you or hate you. Your book Mark Skousen's controversial essays, was so good I spent half a day plus avoiding what I was supposed "My Friendly Fights with Milton Friedman" to do in order to read your book. The book is great!" —Art Laffer and “Mark Skousen is America's finest economist. I've read 'Vienna and "Austrian vs. Chicago Economics: Chicago' numerous times and given dozens away to friends. Like Henry Hazlitt, he has a genius for explaining complex issues in a Response to the Financial Crisis clear way." —Steve Mariotti, President, NFTE of 2008 and Beyond." "Mark Skousen deserves the Nobel Prize in Economics." —Steve Forbes toc_QXP-1127940144.qxp 7/27/2011 2:06 PM Page 2 Contents
AUGUST 15, 2011 | VOLUME LXIII, NO. 15 | www.nationalreview.com
ON THE COVER Page 12
Debt Burdens Ramesh Ponnuru on If Republicans want to return the federal a balanced-budget amendment p. 16 government to its proper constitutional dimensions, the legislation they advance BOOKS, ARTS now must do as much good as & MANNERS possible while also laying the 40 LOVE IN THE LAND groundwork for the election of OF THE FREE conservatives, and the defeat of Mary Eberstadt reviews Extravagant Expectations: New Ways to liberals, in 15 months. The Editors Find Romantic Love in America, by Paul Hollander.
COVER: SIPA USA/SIPA 41 APOCALYPTIC ARTICLES WITNESS AND WIT M. D. Aeschliman reviews Time and 16 CREDIBILITY DEFICIT by Ramesh Ponnuru Eternity: Uncollected Writings, A balanced-budget amendment would not be enforced. by Malcolm Muggeridge, edited by Nicholas Flynn. 20 DOWNGRADED PRESIDENT by Kevin D. Williamson Mr. Obama has been judged, and found wanting. 43 FARAWAY, SO CLOSE Duncan Currie reviews Mañana 21 HOUSE OF DOUBT by Christopher Papagianis Forever?: Mexico and the The case for providing clear mortgage rules now, not later. Mexicans, by Jorge G. Castañeda.
24 UNITED STATES OF GOOGLE by Reihan Salam 45 TELEVISION: SONGS Social-networking sites may eventually undermine the primacy of the nation-state. AND TANKS Jay Nordlinger on The Singing 26 THE FAILING OF THE FISHWRAP by John Derbyshire Revolution, a PBS documentary Will your breakfast newspaper meet the News of the World in oblivion? about Estonia’s freedom struggle.
28 AN END TO BORDERS by Jay Nordlinger 47 CITY DESK: AVEC MOI In which the topic is, not national frontiers, but book and music shops. LE DÉLUGE Richard Brookhiser gets caught in a downpour. FEATURES 30 OBAMA’S NEMESIS by Robert Costa A visit with Rep. Eric Cantor. SECTIONS 34 THE LAST OF LUGAR? by John J. Miller 2 Letters to the Editor A conservative Indianan prepares to take on the president’s 4 The Week favorite Republican senator. 38 The Long View ...... Rob Long 39 Athwart ...... James Lileks 36 TO REFORM IMMIGRATION, LEGAL AND ILLEGAL by Mark Krikorian 45 Poetry ...... Daniel Mark Epstein Three policy packages for presidential aspirants. 48 Happy Warrior ...... Mark Steyn
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