The Political Economy of Foreign Intervention
eds. Boettke, Peter J. and Christopher J. Coyne, Oxford Handbook of Austrian Economics, Forthcoming.
33 Pages Posted: 12 Jan 2015 Last revised: 18 Mar 2015
Date Written: January 10, 2015
This chapter highlights the insights that the Austrian tradition brings to the analysis of foreign intervention. Foreign intervention is the use of the discretionary power of a government in one society to address the perceived problems in foreign societies. As such, the attempt to exercise top-down government authority, even with the most noble of intentions, will ultimately face problems similar to those faced in all types of central planning. The limits of human reason and the planner’s ability to engage in rational constructivism apply as strongly abroad as they do domestically. This chapter lays out those limitations and encourages a note of caution in attempts to intervene abroad.
Keywords: central planning, foreign intervention, human reason, rational constructivism, top-down authority
JEL Classification: B53, H56, O2, P50
Suggested Citation: Suggested Citation