I — OBJECTIVE OF DIFFERENT SCHOOLS —
The different economic schools pursue different ends:
a) Austrian: Social Science : reduction of frictions. Emphasis on institutions of cooperation. (“Paleo-Libertarianism / Natural Law”)
b) Freshwater: Rule of Law: Non-interference with planning, but insurance against informational asymmetries, at the expense of consumption. Emphasis on ‘balance’. (“Classical Liberalism / Constitutionalism”)
c) Saltwater: Discretionary Rule – favoring consumption at the expense of savings, capital, and planning. Emphasis on equality and spending. (“social democracy / leftism”)
II — TIME PREFERENCE OF DIFFERENT SCHOOLS —-
We can judge the time preference by the levers that each school advocates or shuns, from shortest to longest.
– Direct Redistribution ( not practiced ) “New” but Saltwater will jump on it.
– Fiscal Policy – Saltwater
– Social Policy – Saltwater
– Monetary Policy – Freshwater
– Tax and Trade policy – Freshwater
– Infrastructure Policy – Freshwater
– Education Policy (human capital) Immigration Policy (Austrian)
– Institutional Policy (Austrian)
