Learning the Key Concepts of Thomas DiLorenzo
Thomas DiLorenzo is an economist also known for his political ideas. He is a well known supporter of Austrian economics which is also the basis for his political beliefs. Like most supporter for Austrian economics, DiLorenzo is a libertarian. Because of his political positions, he is often invited as a lecturer for Ludwig von Mises Institute. His propositions and ideals are often taken from his speeches on the said academic organization. He is also an accomplished author of various books that deals on the subjects of economics and politics. DiLorenzo obtained his doctorate degree from Virginia Tech.
As indicated, DiLorenzo’s economic views are can be easily identified as part of the Austrian economics. However, his views on economics as part of history are unique and often considered as controversial as he offered a very different view on civil war especially on Abraham Lincoln. By fusing economics and history, he was able to provide a different perspective of history that has become part of various economic discussions.
Influence of Austrian Economics
To better understand the position of Thomas DiLorenzo, it is important to learn more about Austrian Economics. In gist, this type of economics is related to laissez-faire type of economics but it pushes the envelope on how economics work. In this school of thought, devising a methodology in predicting the future is impossible. They believe that economics is driven by individuals – persons who have varying views, emotions and interpretations on the external factors. This means they have to consider data in relation to personal characteristics and situations.
Thomas DiLorenzo has applied this type of analysis in economics and politics. This is the reason why he offered something entirely different and interesting for those who are studying economics and intently follows politics. His libertarian views complement Austrian economics in explaining his positions.
Secession
DiLorenzo supports secession from the federal government. He believes that each state should be given the ultimate decision whether they have to stay or separate the current government setup. The basis for his support for secession is partly due to the concept of freedom. By giving each state the capability to choose, they are actually given full freedom on how they can develop or improve their state.
He also based his support for secession on a historical perspective. He has continuously written about the difference made by Abraham Lincoln in the current government setup. According to DiLorenzo, Lincoln aggressively pushed for unifying the states to the point that he threatened those against his decisions. He also believes that he has made some economic decisions that forced the states to be part of the central government. The support for these claims is detailed in his two books: Lincoln Unmasked: What You're Not Supposed To Know about Dishonest Abe and The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War.
His idea of secession is directly related to his belief on Austrian economics. With the laissez-faire economics, government intrusion should be limited so that free market would grow and help everyone in the process. His analysis of history indicated that Abraham Lincoln has directly influenced the economy so that political decisions will be made in his favor. Aside from historical perspective, he supports secession so that local businesses would develop without intrusion and too much taxation from the national or even state government.
Thomas DiLorenzo on US Economy
DiLorenzo believes that the US economy is practicing what he calls the “economic fascism.” This term refers to what he believes is economic set-up based to the economic setting of Mussolini. He specifically referred to history as the basis of the influence and appeal of fascist economy to the world leaders of the west. Specifically, DiLorenzo sited support for Mussolini’s idea before World War II. Naturally, their support for the ideals was withdrawn as soon as 2nd World War started. However, DiLorenzo believes that the idea of “economic fascism” is already embedded in world leaders.
The idea of Mussolini’s economy is based on corporatism. This economic policy is very government friendly because it encourages increased government influence. Corporatism even pushes for partnership between businesses and the government. Through corporatism, the individual is eventually diminished into a working individual without any personal value for the system except that it’s just part of a whole. Ignoring individuals for the sake of society doesn’t go well with Austrian economics. For this reason, DiLorenzo is against corporatism.
But aside from pointing out the appeal of corporatism to intellectuals in the past, he also shows the relation of corporatism to today’s structure of US economy. He believes that US is practicing the same structure and everyone should be warned about it. Politicians have enacted laws and restrictions that would not only limit businesses but eventually hamper the growth of the economy.
Relation of Politics and Economy
Thomas DiLorenzo based his economic views on history as well as politics. He believes that history is not just shaped on the political views of the individuals but also on the economic decisions of the leaders. By focusing on the leaders and their economic decision, he was able to make some conclusions on their personality and its implications on the national economy. It’s a very unique point of view but a very effective standpoint in explaining the economy. He even warns the general public so that they will not be deceived by the terms and think clearly on what those terms mean and imply.