How do you explain Austrian Economics? (1 Viewer)

bclemms

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I think it is wrong because it eliminates government and I need government to dictate how I live my life.
 

blackadder

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I think it is wrong because it eliminates government and I need government to dictate how I live my life.


Well, how would you know how to live "right" otherwise?

And how would the rest of the world find out how to live right?
 

mg450

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I'm of the opinion that we too often get stuck on the idea that there is one best and only way to approach things. I disagree, in economics, public policy and life in general. As for economics, and laissez-faire style economics in general ... I'm of the opinion it is as good as any other. Of course, the idea that we can completely eliminate government is quaint, but altogether unrealistic. Capitalism, for instance, is a great economic system - it has done our nation quite well. That said, capitalism unchecked by government, cannibalizes itself. Follow: competition leads to innovation and ultimate efficiency on the supply-demand curve -- but then unchecked competition leads to monopoly -- monopoly kills innovation and kills the efficient nature of the supply-demand system. Herein lies the problem, for a large scale economy to function, significant government oversight is necessary (in any form of economic structure). So the real question is not getting rid of government, it is when do we want it and how do we want it? Clearly we want some form of anti-trust legislation (anti-monopoly), but that could likely effectively take many forms. It is clear that industries such as telephone and airlines need some form of regulation, but the degree and form is the real question. Any concept of unadulterated, unchecked laissez-faire (or anything else) just does not work in the real world.
 

SaintJ

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First, I declare a need for and a manifest right to lebensraum.

Then I declare my hatred for Communism and proceed accordingly.
 

birdog

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Follow: competition leads to innovation and ultimate efficiency on the supply-demand curve -- but then unchecked competition leads to monopoly -- monopoly kills innovation and kills the efficient nature of the supply-demand system. Herein lies the problem, for a large scale economy to function, significant government oversight is necessary (in any form of economic structure).

Unchecked competition leads to monopoly?......I thought no competition leads to monopoly.....and excessive gov. intervention is the real problem in the supply-demand style market capitalism....
 

mg450

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Unchecked competition leads to monopoly?......I thought no competition leads to monopoly.....and excessive gov. intervention is the real problem in the supply-demand style market capitalism....

Why do you think we have the anti-trust acts of the early part of the 1900's? That is the very rationale behind them. (note: with unchecked competition, one or a few emerge victorious either through beating the competition into an unprofitible state, merging, or buying out. Once you are down to one or a few, the incentives as related to supply demand curve change, in part because where one company controls the supply, they can skew the supply - be it in quantity, quality or charged cost - and skew where the demand curve meets the supply curve to an "unnatural" junction.)
 
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