Pure theory and progressive liberalism: Frank Fetter and the Austrian economists

Abstract

Frank A. Fetter is often classified as an American representative of the Austrian school, yet surprisingly, there is practically no published record of his views of the Austrians or theirs of him, and there is no indication that he ever seriously interacted with them after the First World War. However, Fetter enjoyed many personal and professional relationships with the Austrians, and they shared a reciprocal influence on each other's ideas that deeply influenced their respective research programs. This paper draws on unpublished archival records to explore Fetter's unique place in the history of economics, in particular, his positive and negative interactions with the leading individuals and institutions of the Austrian school. Their half-century of influence sheds light on Fetter and his role in American economics, but also brings to light a wide range of information about the lives, works, and personal relations of the Austrians that have not been included in their biographies or institutional histories.

W.H. Hutt and the conceptualization of consumers’ sovereignty

“…16 Fetter to Hutt, 12 June 1937, Frank A. Fetter Manuscripts, Lilly Library, Indiana University Bloomington, Box 2, Folder: Correspondence 1937, July-Sept. Fetter was influenced by Carl Menger, and he even entertained personal relationships with many Austrian economists, but these contacts were posterior to the publication of his Principles (1905). See McCaffrey (2019). 17 Hutt Papers, 'History of Economic Thought -Austrian School', Box 15.…”

Theory in closer contact with industrial life: American institutional economists on competition theory and policy

“… 14 For example, see the exchange between Hamilton and former AEA President Frank A. Fetter, in which Fetter argues that Hamilton goes too far in this ‘reforming zeal’ for antitrust policy, and also maintains that the competitive benchmark is the right one, that competitive principles apply to modern industry just as much as they did to petty trade, that disruption in industries is a result of the under-enforcement of antitrust, and that the current depression was primarily the results of merger waves and under-enforcement of antitrust (Hamilton 1932c). See McCaffrey (2018) for more on Fetter's views on antitrust and monopoly.…”