The ‘European project’, in so far as it ever existed outside the heads of a few idealists, had stalled by the mid-nineteen-fifties. The French Nation… - Tony Judt

To outside observers, Communism was a single political entity, shaped and run from the Moscow ‘Centre’. But from Stalin’s perspective matters were more complicated. From the late Twenties through to the outbreak of war, Moscow had indeed succeeded in imposing its control over the world Communist movement, except in China. But the war had changed everything. In its resistance against the Germans the Soviet Union had been forced to invoke patriotism, liberty, democracy and many other ‘bourgeois’ goals. Communism had lost its revolutionary edge and become, deliberately, part of a broad anti-Fascist coalition. This had been the tactic of the pre-war Popular Fronts too, of course, but in the Thirties Moscow had been able to keep tight control of its foreign parties—through financial aid, personal intervention and terror.

The past was neither as good nor as bad as we suppose: it was just different. If we tell ourselves nostalgic stories, we shall never engage the problems that face us in the present—and the same is true if we fondly suppose that our own world is better in every way. The past really is another country: we cannot go back. However, there is something worse than idealizing the past—or presenting it to ourselves and our children as a chamber of horrors: forgetting it.

The three quarters of century that followed Austria’s collapse in the 1930s can be seen as a duel between Keynes and Hayek. Keynes, as I was saying, begins with the observation that under conditions of economic uncertainty we would be imprudent to assume stable outcomes and therefore had better devise ways to intervene in order to bring these about. Hayek, writing quite consciously against Keynes and from the Austrian experience, argues in the The Road to Serfdom that intervention—planning, however benevolent or well-intentioned and whatever the political context—must end badly. His book was published in 1945 and is most remarkable for its prediction that the post–World War II British welfare state already in the making should anticipate a fate similar to that of the socialist experiment in post-1918 Vienna. Starting with socialist planning, you would end with Hitler or a comparable successor. For Hayek, in short, the lesson of Austria and indeed the disaster of interwar Europe at large boiled down to this: don’t intervene, and don’t plan. Planning hands the initiative to those who would, in the end, destroy society (and the economy) to the benefit of the state. Three quarters of a century later, this remains for many people (especially here in the U.S.) the salient moral lesson of the twentieth century.