Austrian economics

It is time to step up to learning more about economics. As we approach what some believe is a major economic turning point, there have been comments about the major “schools” – Keynesian and Austrian, their differences and their adherents. Those of the Austrian persuasion, including SO, think that Greenspan and his Keynesian economics will be proven to be misguided and wrong in the foreseeable future.

So with that in mind, here is my random walk through Austrian economics information. Off the top, the behavioral emphasis is interesting. Mises Institute is a major player in the teaching and learning about about Austrian economics, but its site is overwhelming. Even the wikipedia entry on the subject of Austrian economics was not a satisfactory starting point.

Austrian Economics

The major cornerstones of Austrian economics are methodological individualism, methodological subjectivism, and an emphasis on processes rather than on end states.

… The idea that an individual’s values, plans, expectations, and understanding of reality are all subjective permeates the Austrian tradition and, along with an emphasis on change or processes, is the basis for their notion of economic efficiency.

Competition to an Austrian economist is defined simply as rivalrous behavior, and to compete is to attempt to offer a better deal than one’s competitors. … As each firm attempts to do better than all other firms, the knowledge of what consumers actually want in the market is discovered.