BankNotes – February 2013

A mentor of mine, Clarence Carson, published a book in the 70s titled, The War on the Poor. He took his title from Lyndon Johnson’s so called “war on poverty.” Carson noted that actual wars are waged against actual people rather than against circumstances. Thus, if the government were engaged in a war it must be against some identifiable group of people. In his book he identified the poor as that group by analyzing the economic impact of the various policies that Johnson pursued. In each new initiative of the Great Society the effect of those policies was to raise prices on various products and cause the poor in America to suffer for the sake of a few special interests.

LMR – February 2013

“All things are subject to the law of cause and effect.” This is the very first sentence of the book Principles of Economics, written by the Founder of Austrian Economics, Carl Menger. The reputation of the School and its fundamental ideas belong fully and wholly to this man. The profundity of that statement seems to make clear that the law of causality gets to the “why?” of all things.