War Collectivism: Power, Business, and the Intellectual Class in World War I

by Murray N. Rothbard

More than any other single period, World War I was the critical watershed for the American business system. It was a "war collectivism," a totally planned economy run largely by big-business interest through the instrumentality of the central government, which served as the model, the precedent, and the inspiration for state corporate capitalism for the remainder of the century.

Genres: Politics, Economics, History, Political Science

134 pages, Paperback

First published January 1, 2012

About the author

Murray Newton Rothbard was an influential American historian, natural law theorist and economist of the Austrian School who helped define modern libertarianism. Rothbard took the Austrian School's emphasis on spontaneous order and condemnation of central planning to an individualist anarchist conclusion, which he termed "anarcho-capitalism".

In the 1970s, he assisted Charles Koch and Ed Crane to found the Cato Institute as libertarian think tank.

Reviews

[Geir · Rating 5 out of 5]

A scary account of a scary breed of people who use wars and economic depressions to take control of the society. Even scarier: This breed is very much with us, still.

The only fault in my mind is that the book leaves you wanting more.

[Joshua · Rating 4 out of 5]

This book, available for free in PDF form on the Mises Institute's website, collects two complementary works by Rothbard: 1) War Collectivism in WWI and 2) WWI as Fulfillment. Rothbard discusses the idea, becoming popular with the intellectual elite in the early 1900s, that an economy should be totally planned via collaboration between big business interests and central government agencies. WWI provided the first excuse for this endeavor and is largely the genesis of the state corporate capitalism we have today. This book is an excellent supplement to the outstanding work Dr. Robert Higgs completed in Crisis in Leviathan and provides convincing evidence for Dr. Higgs' "ratchet effect" theory whereby big business interests and powerful government agencies take advantages of crises to permanently secure more power and create economic advantages for themselves at great cost to the public at large. Of course, this costly phenomenon is applauded and spurred on by central planners and corporate interests alike. I cannot do justice to Rothbard's well-researched and persuasive work with a summary here, so if this sounds interesting at all, I recommend picking it up for free from mises.org.

[Julien Comardelle · Rating 3 out of 5]

Rothbard provides a detailed and useful review of the role of WW1 and the Progressive Era in developing scientific management and furthering corporate monopoly through govt connections. Additionally, Rothbard cites sources speaking of how the growth of economic planning and industry control was an experiment in socialist economic planning.

He gives quite an assessment of Herbert Hoover that strikes hard against the narrative that he was a laissez-faire person and president. Rothbard does this by pointing to Hoover's connections with rationing boards and other planning agencies.

Rothbard ends the book by encouraging the reader to consider the role of govt statistics and the constant gathering economic and personal data.

The book is somewhat repetitive- going over the same argument several times in different areas of the book. The book could stand to be about 10-15 pages shorter.

[Paul · Rating 4 out of 5]

Basically covering the socialist policies enacted during WW1 and the 1920's. I have always considered this period as the testing grounds for FDR's new deal and all the subsequent socialism we have experienced in the USA. A good introduction plus it is a quick read.