Radio Rothbard Taxes, War, and the State are Freedom's Biggest Enemies
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Oct 10, 2025 In a compelling discussion, political scientist Joseph Solis-Mullen sheds light on how taxes, war, and state power have historically impoverished the productive class. He explains Schumpeter's bleak prediction for capitalism, illustrating how it fuels state expansion. Joseph also defines the tax state and discusses inflation’s role as a hidden tax, enhanced by central banks. The conversation delves into the historical shift from decentralized governance to centralized authority, rooted in Machiavellian ideologies during the Renaissance.
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Schumpeter’s Pessimism About Capitalism
- Schumpeter predicted capitalism would decay because success breeds complacency and a stronger state that undermines entrepreneurial spirit.
- He believed that wealth and a powerful state make socialism more likely, and that socialism could function though it reduces freedom and prosperity.
Fiscal Capacity Defines The Modern State
- The modern tax state depends on its uninterrupted ability to extract revenue through taxation, borrowing, and inflation.
- Fiscal capacity becomes political power that erodes economic and political freedom.
War Created The Fiscal State
- War drove the transition from feudal, decentralized military organization to centralized fiscal states that taxed to hire and supply armies.
- Once centralized fiscal systems arose, they reinforced state capacity and expanded state power further.
