Invention of academia.
Enough said...
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What's wrong with Austrian Economics???
- Thread starter jueco2005
- Start date
Invention of academia.
Enough said...
Whats wrong is that they seem to not acknowledge the existence of reflexitivty and multiple equibliria so they have advice like 'let the system fail and reset to its fundamentals', not realizing that new fundamentals are created when people are shit scared and the system will keep collapsing to new lower levels until the state does something to end the fear
This is all keynesian self-delusion and wishful thinking if not a flat out lie. Bubbles, specially housing bubbles always lead to depression, period. Historically, all attempts to avoid depressions after a bubble have failed and the cure ended up making the disease worse.Quote from Daal:
Whats wrong is that they seem to not acknowledge the existence of reflexitivty and multiple equibliria so they have advice like 'let the system fail and reset to its fundamentals', not realizing that new fundamentals are created when people are shit scared and the system will keep collapsing to new lower levels until the state does something to end the fear
Taxpayers are being robbed their hard-earned money for nothing.
Macro-level reflexivity, multiple equilibria... all non-falsifiable propositions to justify unexistent historical precedent for their theories. Then they claim Austrians are unscientific and ideologically biased, but look who's talking.
Quote from scriabinop23:
Austrian economics is not economics - it is a social-political theory. [/B]
I think you summarized better than anyone else. However I would rewrite your sentence like this.
"Austrian economics is not just economics-it is also a social-political theory."
I do believe they have a correct economic analysis. From 1 to 10 i would give them a 9. But as I said, sadly this school is also a political/societal ideal.
Quote from buzzy2:
First of all, mathematics is not science
Mainstream economists are champions at proposing non-falsifiable mathematical theories. Think about market-efficiency theory, liquidity traps, real business cycles, and the like.
Austrian Theory is a much better scientific theory because its predictions are much much better.
EDIT: sjfan a PhD. Ok that explains it all.
Mathematics is not economics. Actually the difference is enormous. Yet mainstream schools make almost no distinction from math to eco.
Austrian are usually correct on their analysis because they follow the main idea of economics. Now I am talking about qualitative vs. quantitative analysis.
I think economics is about 80%qualitative and 20% quantitative.
Quote from jueco2005:
I think you summarized better than anyone else. However I would rewrite your sentence like this.
"Austrian economics is not just economics-it is also a social-political theory."
I do believe they have a correct economic analysis. From 1 to 10 i would give them a 9. But as I said, sadly this school is also a political/societal ideal.
Don't save the banks is socialy and politicaly inspired.
Save the banks is socialy and politicaly inspired.
No difference.
Quote from sjfan:
The problem with Austrian economics is that it's not falsifiable and thus fails the criterion of being "scientific". It has the same problem as Freudian psychology - attractively intuitive, somewhat descriptive, not at all testable
You are aware that money and commerce have quite a long history that goes way beyond the current times, right?
I'm assuming you had a brain fart, cause that is one of the dumbest comments I have seen regarding economics.