Friday, March 28, 2014
On Austrian Economists; von Mises, Hayek, Hazlitt, Rothbard, Etc.
I am not, nor will I ever be, a strict adherent to any school of political and/or economic thought (in the words of Nietzsche, "I mistrust all systematizers and I avoid them, a will to a system is a lack of integrity"), but I will gladly put forth the Austrian school and its predictions against the Keynesians and theirs any day and twice on Sunday. I mean, just take a gander at what these Keynesians have said over the years; a) that high inflation and high unemployment could never happen simultaneously, b) that there was going to be yet another massive depression after WW2 and that in order to avoid it we'd have to launch a second new deal (Truman, to his credit, ultimately decided against it and in retrospect his Presidency looks good), that the multiple stimulus packages in Japan in the 1990s were going to resurrect that country, that the earthquake in Haiti was going to be a boom to their economy, etc., etc.. That, and at least there's a semblance of logic to the Austrian model in terms of free markets, free trade, a sound money supply etc.. Keynesian lunacy - not so much (overspending and over-leveraging being the cure for overspending and over-leveraging, trillion dollar platinum coins, bogus alien invasions, etc.).