However, this gives an insight into the mentality of Ludwig von Mises, and the differences between Mises’s brand of Austrian Classical liberalism and Chicago school free market economics. We might also note Friedman’s very dim view of the Austrian business cycle theory:
“... I think the Austrian business-cycle theory has done the world a great deal of harm. If you go back to the 1930s, which is a key point, here you had the Austrians sitting in London, Hayek and Lionel Robbins, and saying you just have to let the bottom drop out of the world. You’ve just got to let it cure itself. You can’t do anything about it. You will only make it worse. You have Rothbard saying it was a great mistake not to let the whole banking system collapse. I think by encouraging that kind of do-nothing policy both in Britain and the United States, they did harm.”I might also add that to the Rothbardian anarcho-capitalist, Mises’s own Classical Liberal support for a limited state and utilitarian arguments for government intervention in some cases could also be condemned as “socialism”. And if Mises was a “socialist” to the anarcho-capitalist, Hayek was a downright Commie.
“Milton Friedman on ABCT,” June 24, 2011.