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Austrian Economists (The economics Ron Paul/Rand Paul subscribe to) have predicted every major recession/depression we've seen in our modern era whereas Keynesianists and the general advocates of big government were categorically wrong and are wrong now. Our spending is unsubstantiated, unpaid for, and out of control...yet the Krugman/Bernanke adherants recklessly suggest we "not worry" about spending and debts until Medicare is in trouble...
They Keynesian Experiment is disaster economics...It is poison and should be wiped clean from the pages of American History.
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Last edited by CaseyB; 02-19-2013 at 04:52 AM..
Reason: copy nd paste
The problem with Austrian economics is not its ability to identify problems, it is with the efficacy of its solutions. They still operate as if there were a gold standard.
The problem with Austrian economics is not its ability to identify problems, it is with the efficacy of its solutions. They still operate as if there were a gold standard.
To be blunt...It doesn't really advocate solutions...at least not in the practical sense of the word. An Austrian solution would be to weather the storm or embrace the bust, so to speak. In the "real world" as opposed to the theoretical world of complex algorithms seen in the classroom, when we are in the midst of a recession the cost of finished goods will stay static but the cost of capital goods and commodities will drop which opens up the arena for new development which in theory should pull the economy of our recession...tantamount to minor burns eating up undergrowth to mitigate the potential of a larger forest fire. As far as the gold standard goes...I personally have never advocated a commodity backed currency, but a strong argument can be made for having the consistency it brings. At least a commodity backed currency is an equal measuring stick in the world market.
What country is currently using the Austrian economic theory?
Technically no country "uses" an economics theory. Random leaders will adhere to different ones but a country devoting itself to one ideology would be fairly close to tyranical.....I suppose you could count Cuba as a country to "uses" an economics theory.
Technically no country "uses" an economics theory. Random leaders will adhere to different ones but a country devoting itself to one ideology would be fairly close to tyranical.....I suppose you could count Cuba as a country to "uses" an economics theory.
Austrian economics isn't a policy prescription. It is a way to analyze and address issues. Typically Austrians advocate classic liberalism or a laissez faire system which is currently being "tried" in Estonia, Poland, Latvia, and Lithuania, among others. They're doing quite well.
Last edited by Redstate1122; 02-18-2013 at 11:43 AM..
Austrian economics isn't a policy prescription. It is a way to analyze and address issues. Typically Austrians advocate classic liberalism or a laissez faire system which is currently being "tried" in Estonia, Poland, Latvia, and Lithuania, among others. They're doing quite well.
in other words, countries whose economies are small, who either don't control the currency or don't have a very widely used one; nothing like the United States. More like the states within the United States.
Sure , Austrians are fine at that level.
At the macro level they haven't kept up with the changes; they are an anachronism in this world where the Fed creates digital credit on-demand as banks ask for it.
As far as the gold standard goes...I personally have never advocated a commodity backed currency, but a strong argument can be made for having the consistency it brings.
I didn't ask you whether you advocated it or not. I simply said that Austrians operate as if we still had a gold standard.
Their mortal enemy is the 1970's Keynesian, who has long since given up the fight.
It's ironic that you'd go on about "The real word vs. the classroom theory", given that Austrians have no good arguments against newer, more relevant descriptions of the actual economy -- like monetary realism / modern monetary theory.
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