Tuesday, August 28, 2012

John Aziz provides an Austrian "Critique of the Methodology Of Mises & Rothbard"

Praxeology is leading Austrian economics down a dead end.
Austrianism would do well to return to its root — Menger, not Mises.
Zero Hedge
Guest Post: A Critique of the Methodology Of Mises & Rothbard
John Aziz | Azizonomics

Looks like it is not just Keynesians. Some Austrians, too, are dismissive.

1 comment:

Ralph Musgrave said...

John Aziz claims he is “to some extent Austrian, on three counts.”

No.1 is that he thinks “value is subjective”.

No. 2 is that for free markets to work well, the price of individual goods and services must be sensitive to changes in supply and demand.

Well neither of those two ideas are specifically Austrian!!!! I’d guess about 95% of the economics profession would agree with the above two ideas, while not claiming to be particularly Austrian.

And the final nail in the Austrian coffin is that they like to claim that full reserve banking (i.e. the idea that private banks should not be able to create money out of thin air) is THEIR IDEA. That is also nonsense.

Abraham Lincoln opposed fractional reserve banking, as did Thomas Jefferson and John Adams: a century before Austrians were born or thought of.