Praxeology

Much of mainstream economics holds to the Efficient Market Hypothesis (EMH), which is built on highly unrealistic foundations. The Austrian causal-realist approach has more explanatory power.

When studying praxeology, something as trivial as the recipe for chocolate cake can become a way to better teach us Austrian economics.

When studying praxeology, something as trivial as the recipe for chocolate cake can become a way to better teach us Austrian economics.

When economists try to analyze the economy, one procedure is to remove the “seasonal” component from the data in order to account for trends and fluctuations. That collides with the thinking behind praxeology in which human beings engage in purposeful behavior.

While it is true that one cannot create entrepreneurs in a classroom setting, it still is important that people how entrepreneurship works. No one explains entrepreneurship better than Austrian economists.

Human Action by Ludwig von Mises is not just another book on economics, although its economic content is excellent and timeless. It is a passage through one truth after another, built upon logic and reason.

Reality cannot be transformed by mere decrees that take issue with the conditions of the world. Removing these distortionary hurdles is necessary for economic prosperity.

Ludwig von Mises was born 144 years ago today. His economic masterpieces are as relevant and powerful today as when they were written. Mises still is the most eloquent voice against socialism.

No matter how “inelastic” the demand, excessively high prices cannot persist indefinitely without human action.

Mainstream economists claim that they can use econometric models to emulate human action and, thus, create an economic laboratory. These models, however, cannot tell us about cause-and-effect, which is vital to understanding praxeology and economic behavior.