Praxeology

The Austrian School of economics isn’t a 20th century or even 19th century creation. Instead, Austrian economics is rooted in the logical thought, as developed by Aristotle and Thomas Aquinas.

The Austrian economics framework shows that subjective valuation is not shown to be arbitrary, but rather purposeful, as people place values on things via a means-end framework.

Elon Musk recently claimed that artificial intelligence will make money itself obsolete. He needs to read the literature of Austrian economics.

Elon Musk recently claimed that artificial intelligence will make money itself obsolete. He needs to read the literature of Austrian economics.

Mainstream economics is obsessed with “maximizing” so-called utility functions and discovering the ubiquitous “social utility curve.” In this week’s Friday Philosophy, Dr. David Gordon takes apart this “utility” fixation.

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.