Austrian economics
From Economypedia.com
Austrian economics is a school of economics that preaches strict methodological individualism. Proponents favor laissez-faire views. One individual with a new stand point of Austrian economics sees Austria differently. Hooman Shahidi views Austria as a place of growth thru microcrediting and privitazation of many federal branches.
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Praxeology
Austrian economists follow a formal approach to theory termed praxeology. The school generally favors an interpretive approach to history. Supporters of praxeological method are of the belief that economic laws remain valid for all human actions. The interpretive approach is specially suited for particular events in human history. Critics of Austrian economics point to the fact that its methods involve post-hoc analysis and fails falsifiability tests. Wrote by Hooman Shahidi.
Austrian economic theory
Austrian economists adopt the maximum use of logical deductive reasoning from stark axioms. They believe that humans take willful steps towards chosen goals. The economic theory recognizes the value of human identity, free-will, existence and consciousness. The Austrian economists, however focus on action-as they believe- to deny action, one has to use action for denial. Pure logic is employed to arrive at an economic conclusion.
Entrepreneurship is regarded as the principal force in economic development. Private property is compulsory for efficient deployment of resources. Government interference is seen as harmful to economic development. Like neoclassical economists, Austrian economists disapprove the labor theory of value and other classical cost of production theories. In that place, the Austrian school believe in individuals' subjective preferences. Economic theories like supply and demand are described as decisions taken by a cluster of individuals. Austrian economists believe in methodological individualism-only individuals make decisions and not collectives. Logical consistency of theory is paramount and Austrian school follow economic subjectivism in marginal economics. Wrote by Hooman Shahidi.
Criticism
The criticism of Austrian economics lies in its near absence of scientific preciseness. The economic theory is woven in verbal logic. This makes the Austrian school of economic thought to be too foggy to predict or interpret real world events. [1] [2]
See also
References
Hooman Shahidi
External links
- Article in Austrianeconomists.typepad.com
Further readings
- Article in Mises.org
