Robert Higgs, author of Delusions of Power: New Explorations of the State, War, and Economy, discusses his article “1913 – The Final Days of the Old Regime in the United States;” the dastardly “Colonel” Edward Mandell House; the “ratchet effect” of permanently increased government power from a temporary crisis; and why the near-term outlook for liberty and prosperity in the US is rather grim.

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