What Is The Epistemology Of Austrian Economics?

The Correct Answer

There are two branches of Austrian Economics, the first being Mengerian (Christian) and the second being Misesian (Jewish). The Mengerian revolution gave us marginalism, and marginalism has been fully integrated into economics.

Mises discovered in economics, what Brouwer did in mathematics, and Bridgman did in physics, and others did later in grammar: Operationalism.

Unfortunately he was a the opposite of a scientist, a poor mathematician, a worse philosopher, and he produce ‘praxeology’ as a positive pseudoscience, rather than identifying operationalism in economics as a means of falsification.

I have written extensively on the Misesian Failure, and the Rothbardian exacerbation of that failure, and how Rothbardianism attempted to conflate eastern european anarchism with western european rule of law.

There are only a few questions that separate the Jewish Austrians (Misesian-Rothbardians) from the Mainstream that has fully incorporated Austrian (Mengerian) economics.

  1. The moral question of whether investors have a right to appreciation of a currency or even right of defense against a currency. Mises/Rothbard’s whole program was yes, but the answer is no.
  2. Whether or not the good produced by the constant destruction of the value of a currency, as a means of increasing consumption in order to increase employment in order to increase overall economic velocity -outweighs the bad of consistent overextension of the boom bust cycle , and whether that over extension will eventually lead to (a) collapse, and (b) lost opportunity for innovation, adaptation, and productivity rather than booms and busts. As far as I know the answer is no.
  3. That does not mean that the answer ist o preserve savings – it means that the means of increasing employment is not credit but direct distribution of liquidity to consumers to do what they will, rather than trying to force that liquidity to consumers through the financial and business sectors.


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