by Sylvia Nasar
46. Joseph Schumpeter, “Review of Joan Robinson’s Theory of Imperfect Competition,” Journal of Political Economy, 1934.
47. Dorothy Garratt to Joan Robinson, May 25, 1934.
48. Joan Robinson to Richard Kahn, September 5, 1934.
49. John Maynard Keynes to Richard Kahn, February 19, 1938.
50. Andrew Boyle, Climate of Treason (London: Hutchinson, 1979), 63, 453 (note 4).
51. Geoffrey Harcourt, “Joan Robinson,” Economic Journal.
52. Joan Robinson, “Review of The Nature of the Capitalist Crisis by John Strachey,” Economic Journal 46, no. 182 (June 1936): 298–302.
53. Joan Robinson, “Review of Britain Without Capitalists,” Economic Journal (December 1936).
54. Taqui Altounyan, Chimes from a Wooden Bell (London: I. B. Taurus and Co., 1990) and In Aleppo Once (London: John Murray, 1969).
55. Ernest Altounyan to Joan Robinson, May 30, 1936.
56. Agatha Christie, Murder on the Orient Express (New York: Collins, 1934), 17.
57. Quoted in Altounyan, Chimes from a Wooden Bell.
58. Interview with Frank Hahn, Churchill College, University of Cambridge, 2000.
XII: THE ECONOMISTS’ WAR: KEYNES AND FRIEDMAN AT THE TREASURY
1. John Maynard Keynes, How to Pay for the War (London: Macmillan, 1940), 17.
2. Friederich von Hayek to Fritz Machlup, October 1940.
3. Robert Skidelsky, John Maynard Keynes, vol. 3, Fighting for Freedom, 1937–1946 (New York: Viking, 2001), 51.
4. Friedrich Hayek to Fritz Machlup, March 19, 1934 (Machlup Papers, box 43, folder 15).
5. John Maynard Keynes, “Paying for the War I: The Control of Consumption,” Times (London), November 14, 1939, 9, and “Paying for the War II: Compulsory Savings,” Times (London), November 15, 1939, 9.
6. Skidelsky, Keynes, vol. 3, Fighting for Freedom, 142.
7. John Maynard Keynes to F. A. Hayek, guoted in Skidelsky, ibid., 56.
8. John Maynard Keynes to J. T. Sheppard, August 14, 1940.
9. Skidelsky, Keynes, vol. 3, 179.
10. Winston Churchill to Clementine Churchill, July 18, 1914, in Mary Soames, Winston and Clementine: The Personal Letters of the Churchills (New York: Houghton Mifflin Harcourt, 2001), 96.
11. John Maynard Keynes to Russell Leffingwell, July 1, 1942.
12. John Maynard Keynes to P. A. S. Hadley, September 10, 1941.
13. “Wheeler Doubts President Will Order Convoys,” Chicago Daily Tribune, May 10, 1941.
14. Sir John Wheeler Bennet, New York Times, November 24, 1940, 7.
15. Alan Milward, War, Economy and Society, 1939–1945 (Berkeley: University of California Press, 1979), 49.
16. Gerhard L. Weinberg, A World at Arms: A Global History of World War II (Cambridge: Cambridge University Press, 2005); David Kennedy, Freedom from Fear: The American People in Depression and War (Oxford: Oxford University Press, 1999), 446.
17. Winston Churchill to Franklin D. Roosevelt, December 7, 1940, Great Britain Diplomatic Files.
18. Franklin D. Roosevelt, press conference, White House, December 17, 1940, http://docs.fdrlibrary.marist.edu/ODLLPc2.html.
19. Ibid.
20. Franklin Roosevelt, “Fireside Chat” radio address, White House, December 29, 1940, http://docs.fdrlibrary.marist.edu/122940.html.
21. Winston S. Churchill to Franklin D. Roosevelt, December 31, 1940, in Martin Gilbert, ed., The Churchill War Papers (New York: W. W. Norton and Co., 2000), 3:11.
22. Winston S. Churchill to Sir Kingsley Wood, March 20, 1941, in Gilbert, The Churchill War Papers, 3:372.
23. Franklin D. Roosevelt, campaign address, Boston, October 30, 1940, www.presidency.ucsb.edu.
24. Franklin D. Roosevelt, conversation in the Oval Office with unidentified aides, October 4, 1940, White House Office Transcripts, 48–61:1, Franklin D. Roosevelt Presidential Library and Museum, Hyde Park, New York, http://docs.fdrlibrary.marist.edu:8000/transcr7.html.
25. Weinberg, A World at Arms, 240.
26. John Maynard Keynes, quoted in Skidelsky, Keynes, vol. 3, Fighting for Freedom, 102.
27. Paul A. Samuelson in The Coming of Keynesianism, 170.
28. Ibid.
29. Quoted in Skidelsky, Keynes, vol. 3, Fighting for Freedom, 116.
30. John Kenneth Galbraith, A Life in Our Times,
31. F. Scott Fitzgerald, This Side of Paradise (New York, 1920).
32. Milton Friedman and Rose Friedman, Two Lucky People (Chicago: University of Chicago Press, 1998).
33. Ibid.
34. Ibid.
35. Ibid.
36. Herbert Stein, Presidential Economics: The Making of Economic Policy from Roosevelt to Clinton (Washington, D.C.: American Enterprise Institute, 1994).
37. Friedman and Friedman, Two Lucky People.
38. Ibid., 107
39. Galbraith, A Life in Our Times, 163.
40. Ibid. Galbraith was assistant, then deputy, chief of the Price Division. Richard Gilbert, George Stigler, Walter Salant, and Herbert Stein belonged to OPA’s economics staff.
41. Quoted in ibid., 133. The General Maximum Price Regulation of 1942 went into effect on April 28.
42. Friedman and Friedman, Two Lucky People, 113. See also Milton Friedman and Walter Salant, American Economic Review 32 (June 1942); 308–20; Milton Friedman, “The Spendings Tax as a Wartime Fiscal Measure,” American Economic Review (March 1943); 50–62.
43. Friedman and Friedman, Two Lucky People.
44. Ibid., 113
45. Ibid.
46. Withholding was first imposed on 1943 income, but the Ruml Plan, the subject of the 1942 debate, called for it to be imposed on 1942 income. The Revenue Act of 1942 passed on October 21, 1942; the Current Tax Payment Act of 1943, on June 9, 1943.
47. Friedman and Friedman, Two Lucky People.
48. Ibid., 116.
49. Isaiah Berlin, March 3, 1942, Washington Dispatches, 25.
50. Ibid.
51. Herbert Stein, Presidential Economics, 68.
XIII: EXILE: SCHUMPETER AND HAYEK IN WORLD WAR II
1. Friedrich Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1944).
2. Joseph Schumpeter, Capitalism, Socialism and Democracy (New York: Harper and Co., 1942).
3. Ibid.
4. Joseph Schumpeter to Irving Fisher, February 18, 1946.
5. Joseph Schumpeter, Diary, October 30, 1942.
6. John Hicks, “The Hayek Story,” in Critical Essays in Monetary Theory (Oxford, UK: Oxford University Press, 1967).
7. Friedrich Hayek to Fritz Machlup, January 1935.
8. Friedrich Hayek to Fritz Machlup, May 1, 1936.
9. Friedrich Hayek to Fritz Machlup.
10. Friedrich Hayek to Lord Macmillan, September 9, 1939.
11. Friedrich Hayek to Fritz Machlup, December 14, 1940.
12. Friedrich Hayek to Fritz Machlup, June 21, 1940.
13. Friedrich Hayek to Alvin Johnson, August 8, 1940.
14. Friedrich Hayek to Alfred Schutz, September 26, 1943.
15. Friedrich Hayek to Fritz Machlup.
16. Friedrich Hayek to Fritz Machlup, June 21, 1940.
17. Friedrich Hayek to Herbert Furth, January 27, 1941.
18. Friedrich Hayek to Fritz Machlup, January 2, 1941.
19. Friedrich Hayek to Fritz Machlup.
20. Friedrich Hayek to Fritz Machlup, July 31, 1941.
21. Friedrich Hayek, The Road to Serfdom.
22. Ibid.
23. Ibid., 135.
24. Friedrich Hayek, “The Road to Serfdom: Address Before the Economic Club of Detroit, April 23, 1945,” typescript, Hoover Institution.
25. Quoted in Fritz Machlup to Friedrich Hayek, January 21, 1943.
26. Ordway Tead to Fritz Machlup, September 25, 1943.
ACT III: PROLOGUE: NOTHING TO FEAR
1. James MacGregor Burns, Roosevelt: The Soldier of Freedom, 1940–1945 (New York: Harcourt Brace Jovanovich, 1970), 424.
&
nbsp; 2. Franklin Delano Roosevelt, “Economic Bill of Rights,” State of the Union Address, January 11, 1944, transcript, Franklin D. Roosevelt Presidential Library and Museum, Hyde Park, New York, http://www.fdrlibrary.marist.edu/archives/stateoftheunion.html.
3. Ibid.
4. James McGregor Burns, Roosevelt: The Soldier of Freedom, vol. 2 (New York: Harcourt Brace Jovanovich, 1970), 426.
5. John Maynard Keynes to Sir J. Anderson, August 10, 1944, quoted in Robert Jacob Alexander Sidelsky, John Maynard Keynes, vol. 3, Fighting for Freedom (New York: Viking Press, 2001), 360.
6. Gunnar Myrdal, “Is American Business Deluding Itself?,” Atlantic Monthly (November 1944), 51–58.
7. Roosevelt, State of the Union Address, January 11, 1944.
8. Ibid.
9. Alvin H. Hansen, “The Postwar Economy,” in Seymour E. Harris, ed., Postwar Economic Problems (New York: McGraw-Hill Book Company, 1943), 12.
10. Paul A. Samuelson, “Full Employment After the War, in Harris, Postwar Economic Problems, 27, 52.
11. Joseph A. Schumpeter, “Capitalism in the Postwar World,” in Harris, Postwar Economic Problems, 120–21.
12. Ibid.
13. Roosevelt, State of the Union Address, January 11, 1944.
14. Myrdal, “Is American Business Deluding Itself?”
15. George Orwell, Nineteen Eighty-Four (London: Penguin Classics, 2009), 231.
16. Roosevelt, State of the Union Address, January 11, 1944.
17. John Lewis Gaddis, The Cold War: A New History (New York: Penguin, 2006), 14.
18. John Maynard Keynes, The General Theory (1936; repr. London: MacMillan & Co., 1954), 383–84.
XIV: PAST AND FUTURE: KEYNES AT BRETTON WOODS
1. FDR, Message to Delegates at Bretton Woods, July 1944.
2. John Maynard Keynes to Florence Keynes, June 28, 1944.
3. Robert Skidelsky, John Maynard Keynes, vol. 3, Fighting for Freedom 1937–1946 (New York: Viking, 2000), 343.
4. John Maynard Keynes to Friedrich Hayek, July 1944.
5. John Maynard Keynes, “My Early Beliefs,” in Essays in Biography.
6. Lionel Robbins, Autobiography of an Economist (London: Macmillan, 1976).
7. John Maynard Keynes to Friedrich Hayek, July 1944.
8. Lydia Keynes quoted in Liaquat Ahmed, Lords of Finance: The Bankers Who Broke the World (New York: Penguin, 2009).
9. Cordell Hull, The Memoirs of Cordell Hull (New York: Macmillan, 1948), 1:81.
10. Papers of Harry Dexter White, Princeton University Archive.
11. Skidelsky, Keynes, vol. 3, Fighting for Freedom, 348.
12. Ibid.
13. Ibid.
XV: THE ROAD FROM SERFDOM: HAYEK AND THE GERMAN MIRACLE
1. George Orwell, review of The Road to Serfdom (1944).
2. Isaiah Berlin, March 31, 1945, Washington Despatches, 1941–1945: Weekly Political Reports from the British Embassy (Chicago: University of Chicago Press, 1981).
3. Berlin, Despatches, May 6, 1945.
4. Berlin, Despatches, June 10, 1945.
5. Friedrich Hayek to Fritz Machlup, and Message to Congress on the Concentration of Economic Power, April 29, 1938.
6. Marquis Childs. “Washington Calling: Hayek’s ‘Free Trade,’” Washington Post, June 6, 1945, http://www.proquest.com.ezproxy.cul.columbia.edu/(accessed February 10, 2011).
7. George Kennan, Memoirs 1925–1950 (New York: Atlantic Monthly Press, 1967), 292.
8. Friedrich Hayek to Lydia Keynes, April 21, 1946.
9. Harry S. Truman, March 12, 1947, transcript of the Truman Doctrine (1947), http://www.ourdocuments.gov/; Robert A. Pollard, Economic Security and the Origins of the Cold War, 1945–1950 (New York: Columbia University Press, 1985), 123, http://questia.com.
10. Friedrich Hayek, “Opening address to a conference at Mont Pelerin,” 1947, P. G. Klein, ed., The Collected Works of F. A. Hayek, Volume IV: The Fortunes of Liberalism, (Chicago, Ill.: University of Chicago Press, 1992), 238.
11. Friedrich A. Hayek, Nobel Prize Winning Economist Friedrich A. von Hayek (Los Angeles: University of California at Los Angeles Oral History Program, 1983), http://www.archive.org/stream/nobelprizewinnin00haye#page/n11/mode/2up.
12. Statement of Aims, Mont Pelerin Society, https://www.montpelerin.org/montpelerin/mpsGoals.html.
13. Orson Welles’s contribution to The Third Man, 1949 in Robert Andrews, The Columbia Dictionary of Quotations, (New York: Columbia University Press, 1993), 888.
14. Quoted in Kurt R. Leube, “Hayek in War and Peace,” Hoover Digest, no. 1, 2006.
15. Ray Monk, Wittgenstein: The Duty of Genius (New York: Penguin Books), 518.
16. Friedrich Hayek, Hayek on Hayek: An Autobiographical Dialog, Stephen Kresge, ed. (Chicago: University of Chicago Press, 1994), 105–6.
17. Austin Robinson, First Sight of Postwar Germany, May–June, 1945 (Cambridge: The Canteloupe Press, 1986).
18. Ibid.
19. John Maynard Keynes to Austin Robinson, June, 1945.
20. Ludwig Erhard, Germany’s Comeback in the World Market (New York: Macmillan, 1954).
XVI: INSTRUMENTS OF MASTERY: SAMUELSON GOES TO WASHINGTON
1. Quoted in Philip Saunders and William Walstead, The Principles of Economics Course (New York: McGraw-Hill, 1990), ix.
2. Paul A. Samuelson, The Samuelson Sampler (Glen Ridge, N.J.: Thomas Horton & Co., 1973), vii.
3. Paul A. Samuelson with Everett Hagen, “Studies in Wartime Planning for Continuing Full Employment” (Washington, D.C.: National Resources Planning Board, 1944); Paul A. Samuelson et al., After the War 1918–1920 (Washington, D.C.: National Resources Planning Board, 1943); and Paul A. Samuelson et al, (Washington, D.C.: National Resources Planning Board, 1942).
4. Paul Samuelson, Godkin Lecture I.
5. Alan Millward, War, Economy and Society, 1939–1945 (Berkeley: University of California Press, 1980).
6. Will Lissner, New York Times, September 3, 1944, 23.
7. Paul Samuelson, “Unemployment Ahead and the Coming Economic Crisis,” New Republic, September, 1944.
8. Quoted in Polenberg, 94.
9. Interview, Paul Samuelson.
10. Paul A. Samuelson and William Nordhaus, Economics: The Original 1948 Edition, 573.
11. Robert Summers, father of Lawrence Summers. He and Harold Samuelson, Paul Samuelson’s older brother, changed their names to “Summers” in an attempt to avoid anti-Semitism.
12. Florence Wieman, South Chicago, The Scroll, May, 1930.
13. Paul A. Samuelson, “Reflections on the Great Depression,” typescript.
14. Ibid., p. 58.
15. Paul A. Samuelson, “How Foundations Came To Be,” Journal of Economic Literature (1998), 1376.
16. Tsuru Shigeto, “Reminiscences of Our ‘Sacred Decade of Twenties,’” The American Economist (Fall 2007).
17. Samuelson, “Reflections on the Great Depression.”
18. Herbert Stein, Presidential Economics.
19. Paul A. Samuelson, interview.
20. Joseph Schumpeter to Paul A. Samuelson, November 3, 1947.
21. Robert Maynard Hutchins, quoted in David Kennedy, Freedom from Fear: The American People in Depression and War (Oxford, UK: Oxford University Press, 2001).
22. Paul A. Samuelson to F. Wheeler Loomis, director, M.I.T. Radiation Laboratory, April 26, 1945.
23. Kenneth Elzinga, “The Eleven Principles of Economics,” Southern Economic Review (April 1992).
24. Stanley Fisher, interview with Paul A. Samuelson, typescript transcript.
25. William F. Buckley, God and Man at Yale (Washington, D.C.: Regnery Gateway, 1951).
26. Ibid., 49.
27. Ibid., 60.
28. Ibid., 81.
29. Paul A. Samuelson, Economics (New York: McGraw-Hill, 1948), 412.
30. Ibid., 434.
31. Ibid., 152.
32. Ibid., 380.
33. Ibid., 433.
34. Ibid., 3.
35. Ibid., 584.
36. Paul A. Samuelson, Economics, 4th ed. (New York: McGraw-Hill), 209–210.
37. Samuelson, Economics, 1st ed., 607.
38. Ibid., 271.
39. Ibid.
XVII: GRAND ILLUSION: ROBINSON IN MOSCOW AND BEIJING
1. Joan Robinson, lecture, Cambridge University, quoted in Harry G. Johnson, On Economics and Society (Chicago: University of Chicago Press, 1975), 110.
2. Joan Robinson, Conference Sketch Book, Moscow, April 1952 (Cambridge: W. Heffer and Sons, 1952), 19.
3. Ibid., 6, 21, 23–24.
4. Alec Cairncross, “The Moscow Economic Conference,” Soviet Studies 4, no. 2 (October 1952), 114.
5. Robinson, Conference Sketch Book, 5.
6. Robinson, Conference Sketch Book, 7–8; Cairncross, “The Moscow Economic Conference,” 119.
7. Robinson, Conference Sketch Book, 23.
8. “Russia: Two Faces West,” Time, April 14, 1952.
9. Robinson, Conference Sketch Book, 11.
10. Committee for the Promotion of International Trade, International Economic Conference in Moscow April 3–12, 1952 (Moscow, 1952); Oleg Hoeffding, “East-West Trade Possibilities: An Appraisal of the Moscow Economic Conference,” American Slavic and East European Review, 1953; Richard B. Day, Cold War Capitalism: The View from Moscow, 1945–1975 (Armonk, NY: M. E. Sharpe, 1995), 79.
11. Committee for the Promotion of International Trade, International Economic Conference, 85.
12. Robinson, Conference Sketch Book, 28.
13. Ibid.
14. Ibid., 3, 5.
15. Joan Robinson to Richard Kahn, April 4, 1952, Papers of Richard Ferdinand Kahn, RFK/13/90/5, King’s College, University of Cambridge.
16. Paul Samuelson, “Remembering Joan,” in G. R. Feiwell, ed., Joan Robinson and Modern Economic Theory (London: Macmillan, 1989), 135.
17. Paul Preston, Michael Partridge, and Piers Ludlow, “British Documents on Foreign Affairs: Reports and Papers from the Foreign Office Confidential Print” (Lexis Nexis, 2006).
18. Cairncross, “The Moscow Economic Conference,” 113, 118.
19. Economic Problems of Socialism in the U.S.S.R. (New York: International Publishers, 1952), 26, 30. Stalin’s “Remarks on Economic Questions in Connection with Discussion of November 1951” were distributed around February 7, 1952, to Central Committee members working on Stalin’s textbook on Soviet economic theory. “Remarks” was published later that year as Economic Problems.