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100 Ways in which Republicans and Democrats Act The Same

Rufio

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Re: 100 Ways in which Republicans and Democrats Act The Same
« Reply #15 on: November 02, 2014, 02:44:58 PM »
"Democrats and Republicans overwhelmingly favor Keynesian economics, rather than other schools of thought such as Austrian economics."

 This statement is astoundingly misleading.

 1) The entire field of macro is "Keynesian" in the sense that some of Keynes' insights such as sticky wages have been overwhelmingly verified by actual experience. The entire right wing Chicago School of econ grudgingly accepts these insights and looks for feasible ways to make the economy run as close to the Austrians' recommendations as reality will allow for.

 2) Everyone accepts certain Austrian insights, like Hayek's theory of prices. The issue is that almost no one accepts the Austrian Business Cycle Theory, because it seeks to explain every single economic boom and bust, but its description doesn't fit the facts of a huge number of crises. If you call out an Austrian on a failed prediction, they claim the effect is just delayed and inevitable. In this way, the Austrian theory of the business cycle is just like the Marxist theory; it's a supposedly self evident truth that's immune from falsification. As Milton Friedman said, there is no Austrian economics. There's only good economics and bad economics.

 3) The intellectual basis of Mises' theory of human behavior, praxeology, is eerily similar to Marxist dialectical materialism in that in purports to state exactly how human beings in an economy will inevitably act, without regard to the current state of the economy or studies of how humans actually behave. It's an old fashioned philosophy, not a scientific theory, that doesn't attempt to quantify or make falsifiable its predictions.

 This is like complaining that there aren't any Marxists in congress arguing for the complete abolition of private property as a solution to all boom and bust cycles.