Principles of Economics, Lecture 8 with Robert Murphy - Mises Academy
The Ludwig von Mises Institute Mises Academy. The Interwar Years A H ISTORY B ETWEEN THE W ARS A...
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Transcript of The Ludwig von Mises Institute Mises Academy. The Interwar Years A H ISTORY B ETWEEN THE W ARS A...
The Ludwig von Mises Institute
Mises Academy
The Interwar The Interwar YearsYears
A A HHISTORY ISTORY BBETWEEN THE ETWEEN THE
WWARSARS
A Mises Academy CourseA Mises Academy Course
Jan./Feb. 2014.
RoadmapRoadmap
Roadmap
• Hitler’s Germany• Architecture, Propaganda, Statism• the Spanish Civil War• Mises and the Austrians After Vienna• The European Allies• The Far East• Europe and the Outbreak of War• The Americans and the War
Charles G. Dawes--not just a an international banker and VP to Silent Cal, but a composer!
Melody in A major, 1912, words added by Carl Sigman in 1951: “It’s All in the Game”
Owen Young, Time man of the year,1930
In negotiating the Young Plan in 1929, Young was accompanied by J. P. Morgan, Jr., and Morgan partner Thomas Lamont
Fun Facts Page!
HitlerHitler’’s s
GermanyGermany
The National Socialist “Renewal”• Against DecadenceAgainst Decadence
• For a High-Tech FutureFor a High-Tech Future
• Jeffrey Herff: “Reactionary Jeffrey Herff: “Reactionary Modernism”Modernism”
• But But notnot conservative values conservative values
Against the TreatyAgainst the Treaty
• Germay withdraws from the League, 1935
• Rearmament 1934• Saarland Plebiscite 1935• Franco-Soviet Pact, 1935• Remilitarization of the
Rhineland 1936• Anschluss: Germany
incorporates Austria• Munich: Sudetenland ceded
to Germany 1938• Invasion of Czechoslovakia,
1939
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“Freeing” Saarbrücken, 1935
Celebrating Anschluss, Ringstrasse, Vienna
HitlerHitler’’s Planss PlansLebensraum idea (“space for living”)?
From 1924 onward, talk about complex plans for living space in the East.
• Four Year Plan, 1936 Germany must be ready for war in four years.
• A. J. P. Taylor, The Origins of the Second World War (1961)Hitler was a normal opportunist. He had no real longrange plans; the war
was a mistake on everyone’s part.
• Burton H. Klein, Germany’s Economic Preparations for War (1959)
Germany was not in any sense economically mobilized for a long war in 1939. Only in 1942 did a “Total War” economy take shape.
• Edward N. Peterson. The Limits of Hitler’s Power (1969)Hitler was a “weak” dictator who encouraged a kind of bureaucratic
and policy survival of the fittest.
• Sebastian Haffner, The Meaning of Hitler (1978)Hitler was “good against weak teams” but not against strong ones.
Against the Jews
Architecture, Architecture, Propaganda, Propaganda,
StatismStatism
and from his recommendations on the topic of comparative statism in the thirties, especially John T. Flynn, The Road Ahead
and Wolfgang Schivelbusch, Three New Deals: Reflections on Roosevelt's America, Mussolini's Italy, and Hitler's Germany
Important: David Gordon, “What You Must Read About the Great Depression”http://mises.org/daily/3349/What-You-Must-Read-About-the-Great-Depression
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The Spanish Civil War
notes on the pre-history to the Spanish Civil War
1923--With support of Alfonso XIII, General Primo de Rivera staged a coup and became dictator
Primo was a statist who built highways, dams, and other public works projects.
In many ways, he nationalized the economy and instituted wide-ranging protection.
Huge public loans and currency expansion financed all kinds of “internal improvements.”
The system looked much like Mussolini’s corporatism.Primo died in 1930, depression, inflation, dissatisfaction,
and some revolt led to Alfonso suspending monarchy in 1931.
From 31 to 36, the “Spanish Republic” swung from right to left governments, all statist. The left eventually focused on limiting the power of the Church.
The Civil War, 36 to 39• Popular Front government, 1936• The generals revolt, with support of Church• Franco directs the Nationalists against the
government, the Republicans, or “Loyalists”
• Brutal fighting and outrages on both sides.• Internationalization of the war:--Entry of the Soviets on the PF side--Entry of Germans (planes) and Italians (men) on the Nationalist side.--“International Brigades” (actually volunteers on both sides)--Mexico also supported the Loyalists, Portugal the Nationalists. France was pro-Republic, but officially neutral.
Condor Legion
CostsCosts• About 500,000 dead• About 450,000 fled the country• About 150,000 civilians executed during war and aftermath by the Nationalists
• Between 38 and 50 thousand civilians excecuted during the war by the Loyalists.
Mises and the Austrians After Vienna
• Hayek to London School of Economics in 1931.• To avoid the Nazi influence in his Austrian homeland, in
1934 Mises left for Geneva, where he was a professor at the Graduate Institute of International Studies. 1940 to US.
• Wilhelm Röpke left Marburg for Istanbul in 1933.• Gottfried Haberler moved to the US in 1936, Harvard U.• Fritz Machlup to US permanently by 1934.• Eric Voegelin fled Vienna in 1938, to LSU eventually.• Oskar Morgenstern left Vienna in 1938.
And many others... an intellectual emigration.
The European
Allies• Controlled Markets and a Zero-Sum
Game
• Appeasement: Chamberlain, Daladier, etc.
• Depression, Debts, Empire
The Far East
World War II Starts Early for Japan and China
1937--Marco Polo Bridge Incident leads to Japanese invasion of China.Dec. 1937--"Rape of Nanjing"--350,009 Chinese killed, 100,000 women raped.Dec. 1937--Japan sinks the USS Panay and three Standard Oil Tankers off of Nanjing.Nov 1938--Japan captures Canton.
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Japan Japan in in
China, China, 19411941
Soviet-Japanese Border conflict, 1939
• from the Nomonhan Incident, May 39
• to Khalkhin Gol, Aug. 39
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Europe Europe
and the Outbreak of and the Outbreak of WarWar
prelude to war• Second Czech Crisis, March 1939.
• Polish Crisis over Corridor and Danzig heats up.
• Allies finally turn to Stalin, but...
• August 1939, Molotov-Ribbentrop Nonaggression Pact
the Radio Tower at Gleiwitz
or
How to start a war
FDR--Naval and Economic FDR--Naval and Economic Pressure on JapanPressure on Japan
• 1935 on the eve of the naval disarmament conference
• 1937 FDR contemplates a blockade of Japan in light of renewed Japanese hostilities with China
• 1938 New joint Army-Navy plan adopted in the case Japan should attack without warning
• Multiple movements of fleet elements to Far East 1939. Whole fleet base moved to Pearl Harbor, October 1939(British are urging that the Fleet base itself in Singapore)
• The War Plans Division: Victory Plan... for Europe
• Eventually, the US sends missions to tempt the Japanese, freezes Japanese assets, etc.
• “I will never, never, never...”
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