Thursday, 29 November 2012

Austrian Economics' 10 Main Propositions by Peter J. Boettke

Here are Peter J. Boettke's, a professor at George Mason University, 10 main propositions about economics, which he divides into three categories, that so-called Austrians believe in:


The Science of Economics

Proposition 1: Only individuals choose

Proposition 2: The study of the market order is fundamentally about exchange behavior and the institutions within which exchanges take place

Proposition 3: The “facts” of the social sciences are what people believe and think

Microeconomics

Proposition 4: Utility and costs are subjective

Proposition 5: The price system economizes on the information that people need to process in making their decisions

Proposition 6: Private property in the means of production is a necessary condition for rational economic calculation

Proposition 7: The competitive market is a process of entrepreneurial discovery

Macroeconomics

Proposition 8: Money is nonneutral

Proposition 9: The capital structure consists of heterogeneous goods that have multispecific uses that must be aligned

Proposition 10: Social institutions often are the result of human action, but not of human design


For a description of each proposition read his article here.

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