Caught Out There

Lew Rockwell passes along David Gordon's pointing out a mistake by economist Brad DeLong, who then went into defense mode:

Writes David:

Did you see Brad DeLong's attack on Mises? He wrongly said that Mises cited two authors in a misleading way. When I pointed out that he himself failed to note that his citations to Theory of Money and Credit were to the 1944 appendix, not the original text, he almost immediately shut off comments. See the bottom of comments on the Mises entry .
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All of the quotations from Mises are from the Appendix, "Planned Chaos", written in 1944. This isn't in the original edition.

Posted by: David Gordon | December 03, 2008 at 06:23 PM

OK. Time to cut this off and prune it down to something useful...

Posted by: Brad DeLong | December 03, 2008 at 06:34 PM

Mickslam, are you $%#$ kidding me? Taxes don't create demand, they substitute it. The money that was in the hand of the citizen was to be directed in a manner as he demanded, the government takes the money, and substitutes the demand for a government one, less, of course, the administrative costs of taking and spending it.

This is why the price level is not stable in a Keynesian system, but are in a long term trend increasing with periodic deflationary crashes.

Posted by: Mick | December 03, 2008 at 06:37 PM

could be a lot of pruning.

Posted by: Colin Danby | December 03, 2008 at 06:41 PM