*The Marginal Revolutionaries: How Austrian Economists Fought the War of Ideas*

That is the new and very interesting forthcoming book by Janek Wasserman, focusing on the history of the Austrian school of economics and due out in September.  A few comments:

1. It is the best overall history of the Austrian school.

2. It is in some early places too wordy, though perhaps that is necessary for the uninitiated.

3. I don’t think actual “Austrian school members” will learn much economics from it, though it has plenty of useful historical detail, far more than any other comparable book.  And much of it is interesting, not just: “Adolph Wagner and Albert Schaeffler taught in the Austrian capital in the 1860s and early 1870s, but quarrels with fellow incumbent Lorenz von Stein led to their departure.”

4. Even a full decade after its release in 1871, Menger’s Principles was not achieving much attention outside of Vienna.

5. The early Austrians favored progressive taxation and fairly standard Continental approaches to government spending.

6. The Austrian school of those earlier times was in danger of disappearing, as Boehm-Bawerk was working in government and the number of “Austrian students” was drying up, circa 1905.

7. The very first articles of Mises were empirical, and covered factory legislation, labor law, and welfare programs.

8. Wieser and some of the others lost status with the fall of the Dual Monarchy after WWI; Wieser for instance no longer had a House of Lords membership.  Schumpeter and Mises responded to these changes by writing more for a broader public, often through newspapers (not blogs).  Mises’s market-oriented views seemed to stem from this time.

9. Hayek in fact struggled in high school, though his grandfather had gone on Alpine hikes with Boehm-Bawerk.

10. The Lieder of the original Mises circle were patterned after the poems of Karl Kraus, and one of them mentioned spaghetti and risotto.

11. Much of this book is strong evidence for the “small group” theory of social change.

12. The patron institution for Hayek’s business cycle research of 1927 to 1931 was partly sponsored by the Rockefeller Foundation.

13. By the mid-1930s, Mises, Tinbergen, Koopmans, and Nurkse were all living in Geneva.  There was a Vienna drinking song saying farewell to Mises.

14. I wonder how these guys would have looked as Emergent Ventures applicants.  [“We’re going to run away from the Nazis and recreate anew our whole school of thought in America, with thick Austrian accents…and with a night school class at NYU to boot.”]

15. The Austrian school eventually was reborn in the United States, which accounts for many more chapters in this book, some of them concerned with the ties between the Austrian school and libertarianism.  There are some outright errors of fact in this section of the book, sometimes involving matters I was involved with personally (and which are non-controversial, not a question of “taking sides”).  I think also the latter parts of the book do not quite grasp the extensive influence of the Austrian school on America, extending up through the current day, and covering such diverse areas as regulatory policy and tech and crypto.

Nonetheless, recommended as an important contribution to the history of economic thought.


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