The Influence of a Brazilian UFC Star on an Austrian Economist's Legacy

Brazilian UFC fighter Renato Moicano recently won a lightweight bout after a tough start. Despite his bloody cheekbone, he took the opportunity to express his admiration for his favorite economist.

Moicano enthusiastically declared his love for private property and urged people to read Ludwig von Mises and the six lessons of the Austrian economic school if they care about their country. He made these statements while holding a mic and added a couple of profanities for emphasis.

The mixed martial artist's tribute video quickly became popular on social media, with many people in the United States commenting on the unusual nature of the scene.

However, those familiar with Latin American politics may not have been as shocked. In South and Central America, the ideas of Austrian-American laissez-faire champion Mises, who passed away in 1973, are gaining popularity.

In recent years, the ideas of the free-market economist Ludwig von Mises and the Austrian school he led have become popular among tax-wary workers, turning them into a hashtag. Various think tanks and media influencers have helped spread his ideas, increasing his influence. Presidents in El Salvador and Argentina have even started incorporating Mises' ideas into their speeches and policies.

A recent opinion piece by economist Tyler Cowen on Bloomberg declared, "Ludwig von Mises is Latin America's leading economist."

LA LIBERTAD, EL SALVADOR - NOVEMBER 20: President of El Salvador Nayib Bukele speaks during the inauguration of a new Vijosa Laboratories plant on November 20, 2023 in La Libertad, El Salvador. (Photo by Alex Peña/Getty Images)

On November 20, 2023, the President of El Salvador, Nayib Bukele, gave a speech at the opening of the new Vijosa Laboratories plant in La Libertad, El Salvador. The event was a significant moment for the country.

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Mises, who was once the main economic adviser to the Austrian government, left his country in 1934 to avoid the expanding influence of the Nazis. He eventually settled in the US and became a professor at New York University. His economic ideas, which focused on human behavior and individual choice, were seen as old-fashioned at the time due to his support for free-market policies.

But his strong opposition to socialism has gained traction in countries like Brazil. A movement called "Less Marx, More Mises" has grown in the past 15 years as a reaction to the ruling center-left party. This movement has been fueled by the rise of social media and a series of corruption scandals, as stated by Camila Rocha, a political scientist and researcher at the Brazilian Center of Analysis and Planning.

The "Less Marx, More Mises" movement has become particularly popular among young male students and low-income workers, including Uber drivers and street vendors. These individuals have started to view themselves as entrepreneurs and no longer want to pay taxes, according to Rocha. For example, Moicano, a supporter of the movement, began studying economics after being taxed on his first UFC winnings.

In 2015, protesters in Brazil’s right-wing demonstrations carried posters with the slogan “Less Marx, More Mises”. This slogan hinted at the future support for former President Jair Bolsonaro, who later aligned himself with libertarian ideals.

Argentina's President Javier Milei delivers a speech at the World Economic Forum meeting in Davos on January 17, 2024.

Argentina's President Javier Milei delivers a speech at the World Economic Forum meeting in Davos on January 17, 2024.

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From Mises to Milei

In Buenos Aires, many experts think that the Austrian school's influence is strong, especially with President Javier Milei, who is a libertarian economist. He recently shared a popular video of Moicano's passionate speech on social media.

After reading Mises for the first time, Milei was amazed by the clarity of concepts, as he mentioned in a 2017 interview. Daniel Raisbeck from the Cato Institute also praised Milei for considering Mises as one of the greatest economists in history.

Since assuming office in December, the unconventional leader has been advocating for extensive deregulation. Despite facing opposition from the country's congress, his government managed to achieve fiscal balance this year through a series of bold and controversial measures. These measures included closing down the Argentina national press agency and reducing support to soup kitchens.

Milei’s decision to remove rent controls and price controls may be seen as reflecting the beliefs of Mises, according to Raisbeck. Mises believed that prices determined freely offer essential information necessary for economic calculation.

Raisbeck also mentioned that this concept is supported by other free market economists outside the Austrian school, such as Milton Friedman. In fact, one of Milei’s dogs is even named after Friedman.

Raisbeck pointed out that Mises's influence is most evident in Milei's anti-socialist speeches, such as the one he delivered at the World Economic Forum in Davos in January. In that speech, Milei argued that the West needed to be reclaimed from leaders who were moving towards socialism, ultimately leading to poverty.

Observers of Mises also recognize similarities in the policies implemented by El Salvador's President Nayib Bukele, a prominent right-wing figure shaking up the political landscape in Latin America.

El Salvador President Nayib Bukele is seen warmly interacting with his supporters at the Conservative Political Action Conference (CPAC) annual meeting in National Harbor, Maryland, US, on February 22, 2024.

El Salvador President Nayib Bukele greets supporters at the Conservative Political Action Conference (CPAC) annual meeting in National Harbor, Maryland, US, on February 22, 2024.

According to a blog post on the Mises Institute website, President Bukele's comments at the Conservative Political Action Conference earlier this year were filled with language that Austrians would find familiar. The Mises Institute is a non-profit organization that promotes the economist's teachings.

Rocha, a researcher from Brazil, points out that local branches of the Mises Institutes and other libertarian centers in Latin America are adept at spreading their ideas to a wider audience.

One of the most notable mentions of Mises in recent years seems to be Moicano's. When a video of him went viral, interest in the economist on Google searches peaked to its highest level since 2016, according to the company.

The fighter’s gesture of respect towards Mises caught the attention of Fox Business, leading to a live TV interview. Ben Shapiro, a popular right-wing commentator known for his YouTube videos with millions of views, enthusiastically celebrated the Austrian school during a nearly nine-minute segment. "That is my jam!" he exclaimed.

This exposure has also resulted in an increase in traffic to Moicano’s YouTube channel and a newly launched podcast. This could be viewed as a positive development for a free-market capitalist like Moicano.

"If you take the time to grasp the ideas of the Austrian economic school," Moicano explained in a recent YouTube video, "you'll see that it's all about embracing the principles of a free market, individual freedoms, and building wealth, my friend. That's the essence of it all."

Editor's P/S:

The increasing popularity of Ludwig von Mises' ideas in Latin America is a testament to the enduring power of free-market principles. Mises' emphasis on individual choice, private property, and limited government intervention has resonated with tax-wary workers and entrepreneurs in the region. This has led to the emergence of think tanks, media influencers, and even politicians who embrace Mises' teachings.

However, it is important to note that Mises' ideas have also been criticized for their lack of pragmatism and for ignoring the role of government in addressing social and economic problems. Some critics argue that the implementation of Mises' policies in countries like Argentina and El Salvador has led to increased inequality and economic instability. Ultimately, the impact of Mises' ideas in Latin America will depend on how they are implemented and whether they can be adapted to address the region's unique challenges.