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The Violence of Central Planning

by Llewellyn H. Rockwell, Jr.
August 2, 2003

For today's generation, Hitler is the most hated man in history, and his regime the archetype of political evil. This view does not extend to his economic policies, however. Far from it. They are embraced by governments all around the world. The Glenview State Bank of Chicago, for example, recently praised Hitler's economics in its monthly newsletter. In doing so, the bank discovered the hazards of praising Keynesian policies in the wrong context.

The issue of the newsletter (July 2003) is not online, but the content can be discerned via the letter of protest from the Anti-Defamation League. "Regardless of the economic arguments" the letter said, "Hitler's economic policies cannot be divorced from his great policies of virulent anti-Semitism, racism and genocide…. Analyzing his actions through any other lens severely misses the point."

The same could be said about all forms of central planning. It is wrong to attempt to examine the economic policies of any leviathan state apart from the political violence that characterizes all central planning, whether in Germany, the Soviet Union, or the United States. The controversy highlights the ways in which the connection between violence and central planning is still not understood, not even by the ADL. The tendency of economists to admire Hitler's economic program is a case in point.

In the 1930s, Hitler was widely viewed as just another protectionist central planner who recognized the supposed failure of the free market and the need for nationally guided economic development. Proto-Keynesian socialist economist Joan Robinson wrote that "Hitler found a cure against unemployment before Keynes was finished explaining it."

What were those economic policies?

  • He suspended the gold standard,
  • embarked on huge public works programs like Autobahns
  • protected industry from foreign competition,
  • expanded credit,
  • instituted jobs programs,
  • bullied the private sector on prices and production decisions,
  • vastly expanded the military,
  • enforced capital controls,
  • instituted family planning,
  • penalized smoking,
  • brought about national health care and unemployment insurance,
  • imposed education standards,
  • and eventually ran huge deficits.
  • The Nazi interventionist program was essential to the regime's rejection of the market economy and its embrace of socialism in one country.

    Continued here

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    fireant's picture

    Good read...

    Thanks for posting.

    Undo what Wilson did

    My pleasure Isn't it odd that

    My pleasure

    Isn't it odd that if you wrap those "economic policies" above in a red,white,and blue flag,you call it America(20th century & today).

    13 No servant can serve two masters; for either he shall hate the one, and love the other, or else he shall lean to the one, and despise the other. Ye cannot serve God and riches. - Luke 16