Ep.75 Austrian Economics, the Cantillon Effect and Marxist Third Worldism.

The Mindcrime liberty show discusses one of the primary affinities or  darkside  of the moon agreements that the Austrian school of economics has with certain aspects of Marxism.  If one takes the Austrian business cycle theory/central banking critique as well as theory of state and combine them one can find an area where technically the Austrians agree with the Marxists in a way although the solutions are much different and it ironically depends on ones class (hint  Bernie Sanders supporters would not have as many victim points).  The Austrians consider much of inflation, economic crisis's and for that matter some of inequality to be the result of state banks policy which wouldn't exist if the market was free or "more free."  The state is also not merely a benevolent organization which makes mistakes or a "normal firm" as many of the classical liberals/Chicago type economists say it is rather the Marxists are correct in that it represents the ruling class.  The Austrians understand what power the central bank has in under-girding the states number one formal "soft" power weapon...ie its central bank.  Since in a scarce world there is no such thing as a free lunch the primary way one can make "printing money" "work" is through fraud/slavery/theft.  One can get irritated at that accusation as did the MMTer who debated Bob Murphy did; however, as the the Cantillon Effect explains this only works for the people who get the new printed money first combined with the state monopoly police force to enforce no counterfeiting laws This is except of course its own treasuries when they say so, thus, George Floyd at Cup's convenience store can't take a freshly printed note off his printer to buy scarce goods which is exactly what he did but the state can do it all the time. Money works because its an exchange good which preserves value and solves the double coincidence of wants problem.  The state hijacks  money as a means to pay for its expensive projects, maintain its power and give privileges out to its friends.   The way the state gets its monopoly on the production of money by most moral/philosophical/legal/religious analysis's  is also illegitimate.  As the new "counterfeit" money goes out further into the economy the purchasing benefits get less and less. The further away one is the greater the effect. What is interesting about the dissident Marxist doctrine of third worldism is that this is an area of total agreement yet both sides arguably are unaware of the technical arguments beneath it for various reasons.  One of the primary reasons we argue is that developed countries Marxists would be considered lower in the food chain in the cherished victim hierarchy. There are of course numerous other factors which explains the "Wealth of nations" such as competence, ingenuity, geography, luck and hard work but international Cantillon effects is one factor .