Historians often lack economics knowledge while economists lack historical context, leading to inaccurate economic theories and misunderstanding of past events, as noted by Murray Rothbard.
Austrian economists use historical examples to illustrate economic theories and provide empirical evidence, recognizing that people’s political views are shaped more by history than by philosophy or economics.
Crony capitalism, where the state allies with corporate interests, has been a long-term historical process shaping American politics since the country’s founding, with politicians benefiting special interests despite public rhetoric.
The Jeffersonian Republicans and Jacksonian Democrats maintained a strong libertarian tradition until the late 1840s, when the slavery controversy split them into pro-slavery and anti-slavery factions.
Investment bankers like J.P. Morgan and Jay Cooke often favored special interest policies and government regulations that supported their businesses, restricting market entry and enriching themselves through legislation.
In the late 19th century, businesses turned to government to create barriers to entry and restrict competition, a theme echoed today with mega corporations like Standard Oil and Google benefiting from regulation to monopolize markets.
The election of 1896 marked a turning point in U.S. politics, as the Cleveland Democrats were ousted and William Jennings Bryan took over, leading to a century of similar policies and lack of genuine opposition to cronyism.
Revisionist historians like Murray Rothbard and Patrick Newman focus on the financial interests and cronies behind policy, revealing how Wall Street and other powerful groups have shaped U.S. history through backroom deals and lobbying.
