University Bureaucracy Squelching Austrian Economics!

[Kade]

Which parts? And what school of economic thought do you agree with most? Chicago?

The more I study the economy, (I am relatively new to it) the more I have taken to Reflexivity and the Behavioral Economics of Caginalp.

 

[strapko]

The more I study the economy, (I am relatively new to it) the more I have taken to Reflexivity and the Behavioral Economics of Caginalp.

Nice, A nooby in economics talking down Austrian school.

 

[Kade]

My major frustration with the Austrian School is the utter lack of Empirical methodology.

 

[nullvalu]

The more I study the economy, (I am relatively new to it) the more I have taken to Reflexivity and the Behavioral Economics of Caginalp.

Nice, an attempt to stump us, very clear thinking.

Might I point out, you still haven't answered the question?

 

[Kade]

Nice, A nooby in economics talking down Austrian school.

Can you explain to me, using Austrian School Logic, why spending in every sector falls during a recession?

 

[Kade]

Nice, an attempt to stump us, very clear thinking.

Might I point out, you still haven't answered the question?

This question?

Would you mind stepping down from your individualistic high horse for a few moments to inform the rest of us mere mortals what exactly you find so distasteful about Austrian economics?

I did answer it.

 

[strapko]

My major frustration with the Austrian School is the utter lack of Empirical methodology.

Sorry, but human action does not have Empirical methodology; the market is always different, consumerism is different, nothing is constant.

 

[strapko]

I'll be back to answer that one Kade. Have a college paper on Mccains and Obama's economic policies.

 

[Chiznaddy]

I was an economics major at UCLA. I only had one class that was remotely freemarket. It was taught by a Libertarian about the inefficiency of government.

It was a good class, but there was no philosophical discussion about free markets, just graphs that held government efficiency to be assumed with some empirical evidence.

Other than that, I was taught pure Keynsian theory as if it were gold and the word of God. There was no serious discussion, or recognition for that matter, of truely free market theories.

 

[powerofreason]

My major frustration with the Austrian School is the utter lack of Empirical methodology.

And yet their predictions still prove to be correct....

Example: When the dollar was finally cut lose from gold by Nixon in the early 70's, the Austrians were the only ones who predicted the value of gold would shoot up dramatically. The Keynesians and even the Friedmanites (Chicago school) predicted the price of gold would fall to $6 an ounce. They were proven to be absolutely, 100% wrong. It ended up going to like $140 within a relatively short period of time. The Austrians were the only ones who got it right. Data and statistics are only as good as the interpreter. I prefer sound reasoning and logic, first and foremost.

So maybe you can show us where the Austrians have been incorrect in their predictions?

 

[nullvalu]

Can you explain to me, using Austrian School Logic, why spending in every sector falls during a recession?

I would say the answer would point back to the cause of the recession. If it because of the over-availability of credit and consumers blindly spend like mad on credit...... once they've reached certain limits they must begin paying down their debts.. therefore having less money to spend in other sectors.. so i'd almost have to say spending never falls during a recession in all sectors, but is only spent differently.

 

[Kade]

And yet their predictions still prove to be correct....

Example: When the dollar was finally cut lose from gold by Nixon in the early 70's, the Austrians were the only ones who predicted the value of gold would shoot up dramatically. The Keynesians and even the Friedmanites (Chicago school) predicted the price of gold would fall to $6 an ounce. They were proven to be absolutely, 100% wrong. It ended up going to like $140 within a relatively short period of time. The Austrians were the only ones who got it right. Data and statistics are only as good as the interpreter. I prefer sound reasoning and logic, first and foremost.

So maybe you can show us where the Austrians have been incorrect in their predictions?

Only the predictions that are illustrated by the advocates for the "Great Theory".

Take for instance the idea that unemployment was merely a" frictional problem" which was simply the economy transferring workers from investment sectors to consumer production goods sectors.

Wanna talk about that?

 

[Kade]

I would say the answer would point back to the cause of the recession. If it because of the over-availability of credit and consumers blindly spend like mad on credit...... once they've reached certain limits they must begin paying down their debts.. therefore having less money to spend in other sectors.. so i'd almost have to say spending never falls during a recession in all sectors, but is only spent differently.

But the Austrian School claims differently...

 

[nullvalu]

But the Austrian School claims differently...

How so?

 

[powerofreason]

Only the predictions that are illustrated by the advocates for the "Great Theory".

Take for instance the idea that unemployment was merely a" frictional problem" which was simply the economy transferring workers from investment sectors to consumer production goods sectors.

Wanna talk about that?

Who said it? when? what book or article? Need some context here.

 

[powerofreason]

Where's Hans Hermann-Hoppe when ya need him?

sigh

 

[thechitowncubs]

But the Austrian School claims differently...

Doesn't the Austrian school believe that entire market recessions aren't normal for an economy based on capitalism?

So lets define recession: a misallocation of resources finally coming to fruition with all the malinvestments in plain sight. *laymans terms*

So during a recession wouldn't a sheep just make the choice to wait it out and not invest in anything not completely inelastic? Doesn't this explain quite simply why people don't spend as much?

 

[Kade]

Doesn't the Austrian school believe that entire market recessions aren't normal for an economy based on capitalism?

So lets define recession: a misallocation of resources finally coming to fruition with all the malinvestments in plain sight.

So during a recession wouldn't a sheep just make the choice to wait it out and not invest in anything not completely inelastic? Doesn't this explain quite simply why people don't spend as much?

The logical game continues... redefining something so that it fits into the model.

A recession is a retraction phase of a business cycle. Period.

A monopoly is a massive share of the market. Period.

Austrians and their weak definitions of shit. I swear.

 

[nullvalu]

The logical game continues... redefining something so that it fits into the model.

A recession is a retraction phase of a business cycle. Period.

A monopoly is a massive share of the market. Period.

Austrians and their weak definitions of shit. I swear.

What the hell, as you pick & chose your battles as not to venture too far from what you think you understand.

Austrians don't think monopolies are inherently evil in so long as they gained their influence through fair market practices, and providing to the public in that market share a quality product at a fair price. And not through government subsidizing, legislative lobbying, or other intrusions of government into the marketplace.

 

[thechitowncubs]

Ok so why do consumers spend less in a recession?