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Is Austrian economics simply verbal neoclassical economics?
5 Answers
- Anonymous5 years ago
There are many differences.
1. Politics
Despite the views espoused by many people, neoclassical economics tends to be rather politically silent, if not even voluntarily vaccuous. Believe it or not, but before 1945, there was a big debate in the academia about the scope of economics and how what was then the central feature of economic theory, walrasian general equilibrium theory, could apply to socialist economies. In plain English, some people looked at neoclassical general equilibrium models and thought it was a blue print for planned economies.
The Cold War basically made socialism a taboo in the West, especially in the US, thus leaving the debate without definitive answers. It ultimately made any sort of political alliegiance that was too blunt impossible. That explains in part why Austrians and Marxists became increasingly marginalized after 1945: both groups insist on having a politicized view of economic theory. It is quite curious considering how moderated was Carl Menger, founder of the Austrian school, but Austrian economists are committed libertarians.
2. Mathematics
Since its birth, Austrian economics abhored mathematics. Although Menger did contribute to the principle of indifference pertaining to choice (which involve, as you might know, equality of marginal utilities), he considered mathematics to not be applicable to economics -- he privileged introspection. With the advent of mathematical formalism in economics from the middle of last century onwards, Austrians basically lost their voice in the academia.
- SiennaLv 75 years ago
No. Austrian economics has a fundamentally different epistemology - theory of knowledge - about what economics is, and how we know economic truths, that completely rejects the neoclassical approach.
It also holds to some fundamentally different tenets.
You can find out by reading
“Man, Economy and State” by Murray Rothbard
http://mises.org/Books/mespm.PDF
“Human Action” by Ludwig von Mises
- Anonymous5 years ago
Austrian economics is simply a pro-banking, pro-corporate elite, front. It is nothing more than a theoretical justification for economic warfare waged by the elite against the rest of us.
- JohnLv 55 years ago
Most of it is verbal tripe.
There is a tendency to use verbose language to try and justify dodgy Economic theories.
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- Anonymous5 years ago
no