Ralph Raico, the Bolsheviks and the MMTers

Ralph Raico is a great libertarian writer whom I have been reading for almost 40 years. I just rediscovered an old piece he wrote in 1979 about Trotsky and the Bolsheviks, but it could apply today to the Keynesians and the MMTers just as well:

"One slight obstacle was encountered, however, on the road to the abolition of the price system and the market: "Reality," as Trotsky noted, "came into increasing conflict" with the economic "system" that the Bolshevik rulers had fastened on Russia. After a few years of misery and famine for the Russian masses — there is no record of any Bolshevik leader having died of starvation in this period — the rulers thought again, and a New Economic Policy (NEP) — including elements of private ownership and allowing for market transactions — was decreed.

The significance of all this cannot be exaggerated. What we have with Trotsky and his comrades in the Great October Revolution is the spectacle of a few literary-philosophical intellectuals seizing power in a great country with the aim of overturning the whole economic system — but without the slightest idea of how an economic system works. In “State and Revolution”, written just before he took power, Lenin wrote,

“The accounting and control necessary [for the operation of a national economy] have been simplified by capitalism to the utmost, till they have become the extraordinarily simple operations of watching, recording and issuing receipts, within the reach of anybody who can read and write and knows the first four rules of arithmetic.”

With this piece of cretinism Trotsky doubtless agreed. And why wouldn't he? Lenin, Trotsky, and the rest had all their lives been professional revolutionaries, with no connection at all to the process of production and, except for Bukharin, little interest in the real workings of an economic system. Their concerns had been the strategy and tactics of revolution and the perpetual, monkish exegesis of the holy books of Marxism.

The nitty-gritty of how an economic system functions — how, in our world, men and women work, produce, exchange, and survive — was something from which they prudishly averted their eyes, as pertaining to the nether-regions. These "materialists" and "scientific socialists" lived in a mental world where understanding Hegel, Feuerbach, and the hideousness of Eugen Duehring's philosophical errors* was infinitely more important than understanding what might be the meaning of a price."[emphasis added]

*or Wynne Godley's sectoral balances?