Austrian Economics Overview

The Austrian School of Economics represents a heterodox methodological approach to economics that significantly differs from the orthodox teachings

Originally published in the Mises Institute’s Studies in Classical Liberalism series in 1999.

Contrary to anti-freedom myths, "greedy" business owners don't decide what prices will be for goods and services. 

Bob reacts to Bryan Caplan's current views, arguing that the history of economic thought is indeed important, and the Misesian approach to praxeology is crucial.

The iconic Hermès Birkin bag helps illustrate Carl Menger’s “Theory of the Good,” and Ludwig von Mises’s explanation of human action.

There are numerous critics of the Austrian School of economics, but when their disparagements are closely examined, the so-called experts themselves are wrong. Austrians can do a better job of setting the record straight.

Modern academic economics is based upon the methodologies used to study the natural sciences. However, such methodologies are inappropriate to study economics, which must be based upon causal-realism.

Austrian economics today needs critics. It doesn‘t need the critics (like Paul Krugman) who cannot give valid and accurate criticisms, but rather people who actually understand the concepts upon which Austrian thinking is built provide a real challenge.

Mainstream economists often base their analysis upon assumptions that do not square with reality. Austrian economics, on the other hand, is built upon realistic assumptions and the acknowledgement that good economics must reflect human action.

Jonathan Newman is interviewed by Kerry Lutz on the Financial Survival Network.