The philosopher Karl Popper was a strong critic of Marx, his system, and especially his reliance on historicism. Unfortunately, as David Gordon points out, Popper supported economic interventionism as a viable “third way” for social organization.
Economic development cannot ever be seen as an end in itself. People are complex, social beings who may well forgo some of the advantages of economic growth for social stability, something Ludwig von Mises and Murray Rothbard understood.
Mainstream economists claim that in order to “do economics,” they must collect data and then see where it leads them. However, data by itself is economically useless without a guiding theory to explain what is happening.
J.B. Say deserves to be remembered, especially by Austrian economists, as a pivotal figure in the history of economic thought. Yet, one finds him discussed very briefly, if at all.
The Austrian school recognizes that economic analysis is timeless and the ancient story of “The Poor Man of Nippur” provides an excellent example. From time preference to the structure of production, many of the lessons are contained in this story.
Imagination is a key aspect of abstract thinking and economics. However, many fallaciously assume that one‘s failure to imagine how something would work on a free market necessitates state provision. This is an unjustified leap in logic.
How should we approach the study of history? An unfortunate trend has been to implement “history by theory” in which practitioners take theories and present them as facts. An honest approach is to take the historical facts and interpret them through coherent theories.
Why do we study history? Some study it as a way to confirm their own political ideologies, something that often happens when historians look at the US Civil War and its Reconstruction aftermath. According to Ludwig von Mises, one cannot bring an ideological lens and honestly approach history.
Modern academics are relentless in trying to find any nuances they can from the works of Karl Marx, but they miss the larger issues with his work. Marx was alive and active when the marginalists logically took apart his value theory, but hope springs eternal for Marx‘s supporters.
The Austrian School of economics traces its roots to the School of Salamanca in medieval times. The scholastics of Salamanca, in turn, were influenced by the canon jurists from the University of Bologna, demonstrating the rich and historic roots of Austrian economics.
