Robert Higgs, senior fellow at the Independent Institute and author of Crisis and Leviathan, discusses his cherished yet under-appreciated chapter 3 in Crisis and Leviathan, about the rational ideological motivation of collective action; beating back the pervasive myth that war stimulates and improves the economy; how the increase in US GDP following massive post-WWII cuts in government spending undermines Keynesian economic theory; and why there is no such thing as free money: government spending is either derived from direct taxation or by debasing the dollar.

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