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Thursday, 19 March 2015

Austrian v/s Mainstream Economics

Austrian Economics is a school of economic thought that is based on methodological individualism. It originated in late-19th and early-20th century Vienna with the work of Carl Menger, Eugen von Bohm-Bawerk and others…

Some of the key principles of the Austrian school include but are not limited to:

1. Individualism. First and foremost, Austrians are believers in individualism, as opposed to forced government collectivism. The most efficient economies are free economies, because they tap into people’s unique, innate incentive structures.

Government involvement in economies stifle individual incentive because they take capital from all and reallocate it to some, creating an inequality and inefficiency which undermines the natural free incentive structure. Individualism does not mean selfishness, it literally just means the freedom for individuals to choose for themselves.

For More:  Austrian v/s Mainstream Economics

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