Rothbard and the Libertarian Populists

Rothbard and the Libertarian Populists—Mises Daily

David S. D'Amato

Recent weeks have seen much speculation by pundits about the nature of “libertarian populism.” For those who regard all of libertarianism as an ideological whitewash for plutocracy, libertarian populism is clearly a matter of pulling the wool over the eyes of the common man. To those on the other side of the debate, who are no less chronically obsessed with electoral politics, libertarian populism is the GOP’s pathway back to relevance and viability. Here, however, I would like to offer a compendious introduction to a libertarian populism very different from both of these variants, and one informed instead by the insights of Austrian School libertarians such as Murray Rothbard.

The pivot point of libertarian populism is its hostility toward the cronyism that presently characterizes the political economy of the United States. Relationships between powerful elites in government and industry have, libertarian populists argue, cemented into an immovable and perennial force that creates privilege for the few at the expense of the many — hence, libertarianpopulism. This populism addresses itself to everything from lobbyists to bailouts and to the Federal Reserve System. In point of fact, the “End the Fed” movement, the germ of which was Ron Paul’s stout emphasis on the issue, was arguably among the prime movers and mainsprings of the particular moment of libertarian populism that we’re witnessing right now. Those influenced by the Austrian School and Rothbardian libertarians, contrary to the empty jeremiads of our critics, have always called attention to the often-incestuous relationships between all things big, irrespective of whether they are found in the “public” or the “private” sector. We have been on the forefront of demonstrating the causal link that connects misallocation to corporate welfare in all of its myriad embodiments that show why government intervention in the economic sphere is profoundly harmful, particularly for ordinary working people. The seeming fixation on the Federal Reserve then, is not a randomly chosen fetish of libertarians, but a recognition of the sweeping, harmful implications of Fed policy. Were more Americans to understand the Fed’s role in, for instance, American wars and economic instability, they might see that real libertarian populism is anything but a calculated political rebranding. Rather, libertarian populism simply is genuine, radical libertarianism, the kind that takes the state for what it is — a small criminal class that has successfully institutionalized economic spoliation.

Read the rest of of the article