Friday, February 10, 2012

Why Austrian Economics? @nullvoid9 @ctolliver

I believe Austrian economics a refinement of that discipline, because its initial premises, more closely conform to experience. Just as a scientific theory is more useful, the more closely that it actually describes an objective reality, the Austrian school of economics more closely explains human action, which is fundamental to explaining how individuals choose to economize, or make use of limited/scare resources with indefinitely large individual demand for satisfaction. The Austrian theory begins with the premise that persons *act* as a best selection of means (given limited knowledge) to achieve their own subjectively preferred end states (outcomes).

This is compared to many other theories which have presume that persons are caused to act, based on past historical events... most other economic theories do not begin with the analysis of the individual as a choosing, acting entity but rather suppose that the group or collective as a primary unit of economic analysis; which is why so much attention is placed on "aggregate supply" and "aggregate demand" and why such attention is placed on economic measurement, because they deny the intentionality of the individual's action, they believe it is possible to measure (and therefore predict) economic states.

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