Tuesday, July 21, 2009

Hail the Austrians!.............

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.” ~ Mark Twain

The current economic collapse and financial system breakdown were forecast and explained by only one “school” of economic theory: the Austrian. The irony is that the other two “major schools” – the Keynesian and Chicago (Supply Side/Monetarist) – are fixated on empirical data yet incapable of recognizing that history refutes their theories. The two mainstream schools are really very similar with only a difference of opinion on the size of government and the amount of monetary inflation. But the continual failure of the ever elusive predictive mathematical models they both seek just doesn’t provide the intellectual spark needed to look outside their statist boxes. The abandonment of logic for faith in fantastical assumptions has induced an ivory tower-delusion on a grand scale. Luckily for us the Austrian Economic Theory has survived the Dark Ages of Economics and we have the intellectual tools to be able to rebuild a healthy, productive and prosperous society...Link

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