Austrian Economics

[urg8rbait]

I am not an economist but I have recently gotten interested in the subject and I have found that Austrian Economics is the only one that makes logical sense.

What do you guys think about it?

[ThePlayer]

"Yah...I like things of that nature, things of that sort".
-Ahnold

[mdgator05]

A couple of reasonable ideas a long time ago (specifically Opportunity Cost). For the most part, their suppositions (which is really all they can be called) have been proven incorrect by empirical evidence, which is one of the reasons being an Austrian often involves the rejection of econometrics.

Austrian Econ is more of a philosophy than a science, like many of the outside the mainstream econ theories.

[orangeblueorangeblue]

Originally Posted by urg8rbait

I am not an economist but I have recently gotten interested in the subject and I have found that Austrian Economics is the only one that makes logical sense.

What do you guys think about it?

Having spent three years studying general macro, I can't help but find this is a pretty superficial view of things.

What do you think "Austrian" represents in a nutshell, and what would you pit it against in a battle of "logical sense."

[orangeblueorangeblue]

Originally Posted by mdgator05

Austrian Econ is more of a philosophy than a science, like many of the outside the mainstream econ theories.

This is no less true of, say, Keynesianism.

[Dreamliner]

Good point. Look at where Keynesianism got us.

[orangeblueorangeblue]

Originally Posted by Dreamliner

Good point. Look at where Keynesianism got us.

We've never seen the Keynesian model in action, though.

[gator10010]

Originally Posted by orangeblueorangeblue

We've never seen the Keynesian model in action, though.

We haven't seen the Keynesian model in action because it has been all spending, in good and bad times.

[orangeblueorangeblue]

Originally Posted by gator10010

We haven't seen the Keynesian model in action because it has been all spending, in good and bad times.

Right.

[Dreamliner]

Originally Posted by orangeblueorangeblue

We've never seen the Keynesian model in action, though.

Sure we have, at least much moreso than the Austrian model.

[orangeblueorangeblue]

Originally Posted by Dreamliner

Sure we have, at least much moreso than the Austrian model.

I'd say evenly, although it's been a long time since we've seen something that allowed more natural cycles. The Austrian model isn't exactly hands off either.

[orangeblueorangeblue]

The point is people lump constant spending with "Keynesianism" and "total free market" with the Austrian school and neither is exactly right nor fair.

[Dreamliner]

But we're much closer to the former. Borrow and spend has been the mainstay of government. Yes, government = economy.

[orangeblueorangeblue]

We're equally removed from either policy / school of thought. In fact, what we do here in the US is completely antithetical to both Austrian economics and Keynesianism.

[Spurffelbow833]

Hayek vs. Keynes round 1 and round 2

[Dreamliner]

Originally Posted by orangeblueorangeblue

We're equally removed from either policy / school of thought. In fact, what we do here in the US is completely antithetical to both Austrian economics and Keynesianism.

Sorry, borrow and spend is the order of the day. Aside: our economy is not remotely close to rough-and-tumble. Unless you're underground, you feel the warm, baited breath of government on every level.

[wgbgator]

Economics is not a hard science, its a study of human behavior, really. It's like history, but with a few more accepted assumptions and "laws" and a greater interest in macro decision making - what used to be called Political Economy.

[orangeblueorangeblue]

Originally Posted by Dreamliner

Sorry, borrow and spend is the order of the day..

And that's (mostly) antithetical to Keynesian policy. People have a really generalized, glossed-over and inaccurate view of both the Austrian school and Keynes.

[wgbgator]

It probably needs to be pointed out that "Austrian" isn't an entirely coherent school of thought. Hayek and Von Mises werent exactly in agreement on everything after all.

[Dreamliner]

Originally Posted by orangeblueorangeblue

And that's (mostly) antithetical to Keynesian policy. People have a really generalized, glossed-over and inaccurate view of both the Austrian school and Keynes.

No, we haven't. Central Bank, 'fiscal policy', 'monetary policy', borrow and spend, all are hallmarks of Keynesianism. This is what we have. Does it perfectly hew to Keynes ? Maybe not ? So ?