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The Austrian School is a
heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek language used in ancient Greece and the classical antiquity, ancient world from around 1500 BC to 300 BC. It is often roughly divided into the follow ...
school of economic thought that is based on
methodological individualism In the social sciences, methodological individualism is the principle that subjective individual motivation explains social phenomena, rather than class or group dynamics which are (according to proponents of individualistic principles) illusory ...
—the concept that social phenomena result exclusively from the motivations and actions of individuals.Ludwig von Mises.
Human Action ''Human Action: A Treatise on Economics'' is a work by the Austrian Austrian may refer to: * Austrians, someone from Austria or of Austrian descent ** Someone who is considered an Austrian citizen, see Austrian nationality law * Something associ ...
, p. 11, "Purposeful Action and Animal Reaction". Referenced 2011-11-23.
The Austrian School originated in late-19th and early-20th century
Vienna Vienna ( ; german: Wien ; bar, Wean, label= ) is the , largest city, and one of of . Vienna is Austria's , with about 2 million inhabitants (2.6 million within the , nearly one third of the country's population), and its , , and centre. It ...

Vienna
with the work of
Carl Menger Carl Menger (; ; 28 February 1840 – 26 February 1921) was an Austrian economist and the founder of the Austrian School of economics. Menger contributed to the development of the theory of marginalism (marginal utility), which rejected the cos ...
, Eugen Böhm von Bawerk,
Friedrich von Wieser Friedrich Freiherr von Wieser (; 10 July 1851 – 22 July 1926) was an early (so-called "first generation") economist of the Austrian School of economics. Born in Vienna, the son of Privy Councillor Leopold von Wieser, a high official in the war min ...
and others. It was methodologically opposed to the younger
Historical School Historiography is the study of the methods of historians in developing history as an academic discipline, and by extension is any body of historical work on a particular subject. The historiography of a specific topic covers how historians have ...
(based in Germany), in a dispute known as
Methodenstreit ''Methodenstreit'' (German for "method dispute"), in intellectual history beyond German-language discourse, was an economics controversy commenced in the 1880s and persisting for more than a decade, between that field's Austrian School and the (Germ ...
, or ''methodology struggle''. Current-day economists working in this tradition are located in many different countries, but their work is still referred to as Austrian economics. Among the theoretical contributions of the early years of the Austrian School are the
subjective theory of value Subjective may refer to: * Subjectivity, a subject's personal perspective, feelings, beliefs, desires or discovery, as opposed to those made from an independent, objective, point of view ** Subjective experience, the subjective quality of consciou ...
,
marginalism Marginalism is a theory of economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economic ...
in
price theory Microeconomics (from Greek prefix ''mikro-'' meaning "small" + ''economics'') is a branch of economics that studies the behavior of individuals and Theory of the firm, firms in making decisions regarding the allocation of scarcity, scarce reso ...
and the formulation of the
economic calculation problem The economic calculation problem is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article " Economic Calculation in the Soc ...
, each of which has become an accepted part of
mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to he ...
. Since the mid-20th century, mainstream economists have been critical of the modern day Austrian School and consider its rejection of
mathematical model A mathematical model is a description of a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environmen ...
ling,
econometrics Econometrics is the application of Statistics, statistical methods to economic data in order to give Empirical evidence, empirical content to economic relationships.M. Hashem Pesaran (1987). "Econometrics," ''The New Palgrave: A Dictionary of Econ ...

econometrics
and
macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), producti ...
analysis to be outside
mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to he ...
, or "heterodox". In the 1970s, the Austrian School attracted some renewed interest after
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
shared the 1974
Nobel Memorial Prize in Economic Sciences The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel ( sv, Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne), is an economics award administered ...
.


History


Etymology

The Austrian School owes its name to members of the German
historical school of economics The historical school of economics was an approach to academic economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distr ...
, who argued against the Austrians during the late-19th century ''
Methodenstreit ''Methodenstreit'' (German for "method dispute"), in intellectual history beyond German-language discourse, was an economics controversy commenced in the 1880s and persisting for more than a decade, between that field's Austrian School and the (Germ ...
'' ("methodology struggle"), in which the Austrians defended the role of theory in economics as distinct from the study or compilation of historical circumstance. In 1883, Menger published ''Investigations into the Method of the Social Sciences with Special Reference to Economics'', which attacked the methods of the historical school.
Gustav von Schmoller Gustav Friedrich (after 1908: von) Schmoller (; 24 June 1838 – 27 June 1917) was the leader of the "younger" German historical school of economics The historical school of economics was an approach to academic economics Economics () i ...
, a leader of the historical school, responded with an unfavorable review, coining the term "Austrian School" in an attempt to characterize the school as outcast and provincial. The label endured and was adopted by the adherents themselves.


First wave

The school originated in
Vienna Vienna ( ; german: Wien ; bar, Wean, label= ) is the , largest city, and one of of . Vienna is Austria's , with about 2 million inhabitants (2.6 million within the , nearly one third of the country's population), and its , , and centre. It ...

Vienna
in the
Austrian Empire The Austrian Empire (german: Kaiserthum Oesterreich, modern spelling ') was a Central Europe Central Europe is an area of Europe between Western Europe and Eastern Europe, based on a common History, historical, Society, social and cultural ...
.
Carl Menger Carl Menger (; ; 28 February 1840 – 26 February 1921) was an Austrian economist and the founder of the Austrian School of economics. Menger contributed to the development of the theory of marginalism (marginal utility), which rejected the cos ...
's 1871 book '' Principles of Economics'' is generally considered the founding of the Austrian School. The book was one of the first modern treatises to advance the theory of
marginal utility In economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societies. ...
. The Austrian School was one of three founding currents of the marginalist revolution of the 1870s, with its major contribution being the introduction of the subjectivist approach in economics. Despite this claim,
John Stuart Mill John Stuart Mill (20 May 1806 – 7 May 1873), also cited as J. S. Mill, was an English philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questions, such as ...
had used ''value in use'' in this sense in 1848 in ''
Principles of Political Economy ''Principles of Political Economy'' (1848) by John Stuart Mill John Stuart Mill (20 May 1806 – 7 May 1873), usually cited as J. S. Mill, was an List of British philosophers, English philosopher, Political economy, political economist, ...
'': :''Value in use, or as Mr. De Quincey calls it, '' teleologic'' value, is the extreme limit of value in exchange. The exchange value of a thing may fall short, to any amount, of its value in use; but that it can ever exceed the value in use, implies a contradiction; it supposes that persons will give, to possess a thing, more than the utmost value which they themselves put upon it as a means of gratifying their inclinations.'' While marginalism was generally influential, there was also a more specific school that began to coalesce around Menger's work, which came to be known as the "Psychological School", "Vienna School", or "Austrian School". Menger's contributions to economic theory were closely followed by those of Eugen Böhm von Bawerk and
Friedrich von Wieser Friedrich Freiherr von Wieser (; 10 July 1851 – 22 July 1926) was an early (so-called "first generation") economist of the Austrian School of economics. Born in Vienna, the son of Privy Councillor Leopold von Wieser, a high official in the war min ...
. These three economists became what is known as the "first wave" of the Austrian School. Böhm-Bawerk wrote extensive critiques of
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher A philosopher is someone who practices philosophy. The term ''philosopher'' comes from the grc, φιλόσοφος, , translit=philosophos, meaning 'lover of wis ...

Karl Marx
in the 1880s and 1890s as was part of the Austrians' participation in the late 19th-century ''
Methodenstreit ''Methodenstreit'' (German for "method dispute"), in intellectual history beyond German-language discourse, was an economics controversy commenced in the 1880s and persisting for more than a decade, between that field's Austrian School and the (Germ ...
'', during which they attacked the
Hegelian Hegelianism is the philosophy of G. W. F. Hegel in which reality has a conceptual structure. Pure Concepts are not subjectively applied to sense-impressions but rather things exist for actualizing their ''a priori'' pure concept. The concept o ...
doctrines of the
historical school Historiography is the study of the methods of historians in developing history as an academic discipline, and by extension is any body of historical work on a particular subject. The historiography of a specific topic covers how historians have ...
.


Early 20th century

Frank Albert Fetter (1863–1949) was a leader in the United States of Austrian thought. He obtained his PhD in 1894 from the
University of Halle Martin Luther University of Halle-Wittenberg (german: Martin-Luther-Universität Halle-Wittenberg), also referred to as MLU, is a public, research Research is "creativity, creative and systematic work undertaken to increase the stock of ...
and then was made Professor of Political Economy and Finance at
Cornell Cornell University ( ) is a private, statutory, Ivy League The Ivy League (also known as The Ancient Eight) is an American collegiate athletic conference comprising eight private research universities in the Northeastern United Stat ...
in 1901. Several important Austrian economists trained at the University of Vienna in the 1920s and later participated in private seminars held by
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological ...

Ludwig von Mises
. These included
Gottfried Haberler Gottfried von Haberler (; July 20, 1900 – May 6, 1995) was an Austrian-American economist. He worked in particular on international trade International trade is the exchange of capital, goods, and services across international borders o ...
,
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
,
Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austria Austria (, ; german: Österreich ), officially the Republic of Austria (german: Republik Österreich, links=no, ), is a landlocked Eastern Alps, East Alpine count ...
,
Karl Menger Karl Menger (January 13, 1902 – October 5, 1985) was an Austrian-American mathematician A mathematician is someone who uses an extensive knowledge of mathematics Mathematics (from Ancient Greek, Greek: ) includes the study of such topi ...
(son of Carl Menger),
Oskar Morgenstern Oskar Morgenstern (January 24, 1902 – July 26, 1977) was a German-American German Americans (german: Deutschamerikaner, ) are Americans Americans are the Citizenship of the United States, citizens and United States nationality law, nation ...
, Paul Rosenstein-Rodan,
Abraham Wald Abraham Wald (; hu, Wald Ábrahám, yi, אברהם וואַלד;  – ) was a Hungarian Jewish mathematician A mathematician is someone who uses an extensive knowledge of mathematics Mathematics (from Ancient Greek, Greek: ) includ ...

Abraham Wald
, and Michael A. Heilperin, among others, as well as the sociologist
Alfred Schütz Alfred Schutz (; born Alfred Schütz, ; 1899–1959) was an Austrian philosopher A philosopher is someone who practices philosophy. The term ''philosopher'' comes from the grc, φιλόσοφος, , translit=philosophos, meaning 'lover of wisdo ...
.


Later 20th century

By the mid-1930s, most economists had embraced what they considered the important contributions of the early Austrians. Fritz Machlup quoted Hayek's statement that "the greatest success of a school is that it stops existing because its fundamental teachings have become parts of the general body of commonly accepted thought". Sometime during the middle of the 20th century, Austrian economics became disregarded or derided by mainstream economists because it rejected
model In general, a model is an informative representation of an object, person or system. The term originally denoted the plans of a building in late 16th-century English, and derived via French and Italian ultimately from Latin ''modulus'', a measure. ...

model
building and mathematical and statistical methods in the study of economics. Mises' student
Israel Kirzner Israel Meir Kirzner (also Yisroel Mayer Kirzner ; born February 13, 1930) is a British-born American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develo ...

Israel Kirzner
recalled that in 1954, when Kirzner was pursuing his PhD, there was no separate Austrian School as such. When Kirzner was deciding which graduate school to attend, Mises had advised him to accept an offer of admission at Johns Hopkins because it was a prestigious university and
Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austria Austria (, ; german: Österreich ), officially the Republic of Austria (german: Republik Österreich, links=no, ), is a landlocked Eastern Alps, East Alpine count ...
taught there. After the 1940s, Austrian economics can be divided into two schools of economic thought and the school "split" to some degree in the late 20th century. One camp of Austrians, exemplified by Mises, regards
neoclassical Neoclassical or neo-classical may refer to: * Neoclassicism or New Classicism, any of a number of movements in the fine arts, literature, theatre, music, language, and architecture beginning in the 17th century ** Neoclassical architecture, an arc ...
methodology to be irredeemably flawed; the other camp, exemplified by
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
, accepts a large part of neoclassical methodology and is more accepting of government intervention in the economy.
Henry Hazlitt Henry Stuart Hazlitt (; November 28, 1894 – July 9, 1993) was an American journalist who wrote about business and economics for such publications as ''The Wall Street Journal ''The Wall Street Journal'', also known as ''The Journal'', is ...

Henry Hazlitt
wrote economics columns and editorials for a number of publications and wrote many books on the topic of Austrian economics from the 1930s to the 1980s. Hazlitt's thinking was influenced by Mises. His book '' Economics in One Lesson'' (1946) sold over a million copies and he is also known for '' The Failure of the "New Economics"'' (1959), a line-by-line critique of
John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946) was an English economist, whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ma ...

John Maynard Keynes
's '' General Theory''. The reputation of the Austrian School rose in the late 20th century due in part to the work of Israel Kirzner and
Ludwig Lachmann Ludwig Maurits Lachmann (; ; 1 February 1906 – 17 December 1990) was a German German(s) may refer to: Common uses * of or related to Germany * Germans, Germanic ethnic group, citizens of Germany or people of German ancestry * For citizens o ...
at
New York University New York University (NYU) is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nea ...
and to renewed public awareness of the work of Hayek after he won the 1974 Nobel Memorial Prize in Economic Sciences. Hayek's work was influential in the revival of ''laissez-faire'' thought in the 20th century.


Split among contemporary Austrians

Economist
Leland Yeager Leland Bennett Yeager (; October 4, 1924 – April 23, 2018) was an American economist and an expert on monetary policy and international trade International trade is the exchange of capital, goods, and services across international borde ...
discussed the late 20th-century rift and referred to a discussion written by
Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American heterodox economist Heterodox economics is any economic thought or theory that contrasts with orthodox schools of economic thought, or that may be beyond neoclas ...

Murray Rothbard
,
Hans-Hermann Hoppe Hans-Hermann Hoppe (; ; born 2 September 1949) is a German-American paleolibertarian Paleolibertarianism is a political philosophy and variety of right-libertarianism developed by American anarcho-capitalist theorists Murray Rothbard and Le ...

Hans-Hermann Hoppe
, Joseph Salerno and others in which they attack and disparage Hayek. Yeager stated: "To try to drive a wedge between Mises and Hayek on he role of knowledge in economic calculation especially to the disparagement of Hayek, is unfair to these two great men, unfaithful to the history of economic thought". He went on to call the rift subversive to economic analysis and the historical understanding of the fall of Eastern European communism. In a 1999 book published by the
Ludwig von Mises Institute The Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think-tank located in Auburn, Alabama, Auburn, Alabama, United States. It is named after Austrian School economist Ludwig von Mises (1881–1973 ...

Ludwig von Mises Institute
, Hoppe asserted that Rothbard was the leader of the "mainstream within Austrian Economics" and contrasted Rothbard with Nobel Laureate Friedrich Hayek, whom he identified as a
British empiricist In philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about reason, Metaphysics, existence, Epistemology, knowledge, Ethics, values, Philosophy of mind, mind, and Philosophy of language, ...
and an opponent of the thought of Mises and Rothbard. Hoppe acknowledged that Hayek was the most prominent Austrian economist within academia, but stated that Hayek was an opponent of the Austrian tradition which led from Carl Menger and Böhm-Bawerk through Mises to Rothbard. Austrian economist
Walter Block Walter Edward Block (born August 21, 1941) is an American Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological individualism—the con ...
says that the Austrian School can be distinguished from other schools of economic thought through two categories—economic theory and political theory. According to Block, while Hayek can be considered an Austrian economist, his views on political theory clash with the
libertarian Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy that upholds liberty as a core principle. Libertarians seek to maximize autonomy and political freedom, emphasizing Freedom of assoc ...

libertarian
political theory which Block sees as an integral part of the Austrian School. However, both criticisms from Hoppe and Block to Hayek seem to also apply to the founder of the Austrian School, Carl Menger. Hoppe emphasizes that Hayek, which for him is from the English empirical tradition, is an opponent of the supposed rationalist tradition of the Austrian School, but Menger made strong critiques to rationalism in his works in similar vein as Hayek's. He emphasized the idea that there are several institutions which were not deliberately created, have a kind of "superior wisdom" and serve important functions to society. He also talked about Burke and the English tradition to sustain these positions. When saying that the libertarian political theory is an integral part of the Austrian School and supposing Hayek is not a libertarian, Block excludes Menger from the Austrian School too since Menger seems to defend broader state activity than Hayek—for example, progressive taxation and extensive labour legislation. Economists of the Hayekian view are affiliated with the
Cato Institute The Cato Institute is an American libertarian think tank A think tank, or policy institute, is a research institute A research institute, research centre, or research center is an establishment founded for doing research. Research institute ...

Cato Institute
,
George Mason University George Mason University (Mason, GMU, George Mason) is a Public university, public research university flagshiped in Fairfax County, Virginia with four campuses throughout Northern Virginia and one campus in South Korea. Established in 1957 as the ...

George Mason University
(GMU) and New York University, among other institutions. They include Peter Boettke,
Roger Garrison Roger Wayne Garrison (born 1944) is an American professor of economics at Auburn University, and an adjunct scholar of the Ludwig von Mises Institute. He is a proponent of the Austrian School of economics and wrote the book ''Time and Money,'' wh ...
,
Steven Horwitz Steven Horwitz (born 7 February 1964) is an American economist of the Austrian School. Horwitz is currently the Distinguished Professor of Free Enterprise in the Department of Economics in the Miller College of Business at Ball State University in M ...

Steven Horwitz
,
Peter Leeson Peter T. Leeson (born July 29, 1979) is the Duncan Black Professor of Economics and Law at George Mason University George Mason University (Mason, GMU, or George Mason) is a public research university in Fairfax County, Virginia, Fairfax County ...
and
George Reisman George Gerald Reisman (; born January 13, 1937)"George Gerald Reisman" (2002), ''Contemporary Authors Online'', Gale, Retrieved on January 18, 2007. is an American American(s) may refer to: * American, something of, from, or related to the Unite ...
. Economists of the Mises–Rothbard view include
Walter Block Walter Edward Block (born August 21, 1941) is an American Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological individualism—the con ...
,
Hans-Hermann Hoppe Hans-Hermann Hoppe (; ; born 2 September 1949) is a German-American paleolibertarian Paleolibertarianism is a political philosophy and variety of right-libertarianism developed by American anarcho-capitalist theorists Murray Rothbard and Le ...

Hans-Hermann Hoppe
,
Jesús Huerta de Soto Jesús Huerta de Soto Ballester (born December 23, 1956) is a Spanish economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and conc ...
and Robert P. Murphy, each of whom is associated with the
Mises Institute The Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think-tank located in Auburn, Alabama, Auburn, Alabama, United States. It is named after Austrian School economist Ludwig von Mises (1881–1973 ...

Mises Institute
and some of them also with academic institutions. According to Murphy, a "truce between (for lack of better terms) the GMU Austro-libertarians and the Auburn Austro-libertarians" was signed around 2011.


Influence

file:Austrian-Economists-IM21.png, 360px, Some representative Austrian School theoricians such as
Carl Menger Carl Menger (; ; 28 February 1840 – 26 February 1921) was an Austrian economist and the founder of the Austrian School of economics. Menger contributed to the development of the theory of marginalism (marginal utility), which rejected the cos ...
,
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological ...

Ludwig von Mises
,
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
,
Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American heterodox economist Heterodox economics is any economic thought or theory that contrasts with orthodox schools of economic thought, or that may be beyond neoclas ...

Murray Rothbard
and
Hans-Hermann Hoppe Hans-Hermann Hoppe (; ; born 2 September 1949) is a German-American paleolibertarian Paleolibertarianism is a political philosophy and variety of right-libertarianism developed by American anarcho-capitalist theorists Murray Rothbard and Le ...

Hans-Hermann Hoppe
Many theories developed by "first wave" Austrian economists have long been absorbed into
mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to he ...
. These include Carl Menger's theories on marginal utility, Friedrich von Wieser's theories on
opportunity cost In microeconomic theory Microeconomics (from Greek prefix ''mikro-'' meaning "small" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Produc ...
and Eugen Böhm von Bawerk's theories on time preference, as well as Menger and Böhm-Bawerk's criticisms of
Marxian economics Marxian economics, or the Marxian school of economics, is a heterodox In religion, heterodoxy (from Ancient Greek Ancient Greek includes the forms of the Greek language used in ancient Greece and the classical antiquity, ancient world f ...
. Former
American Federal Reserve The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a serie ...
Chairman
Alan Greenspan Alan Greenspan (; born March 6, 1926) is an American economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economi ...

Alan Greenspan
said that the founders of the Austrian School "reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in this country". In 1987, Nobel Laureate James M. Buchanan told an interviewer: "I have no objections to being called an Austrian. Hayek and Mises might consider me an Austrian but, surely some of the others would not". Currently, universities with a significant Austrian presence are
George Mason University George Mason University (Mason, GMU, George Mason) is a Public university, public research university flagshiped in Fairfax County, Virginia with four campuses throughout Northern Virginia and one campus in South Korea. Established in 1957 as the ...

George Mason University
,
New York University New York University (NYU) is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nea ...
,
Grove City College Grove City College (GCC) is a private, Christian liberal arts college in Grove City, Pennsylvania. Founded in 1876 as a normal school, the college emphasizes a humanities core curriculum and offers 60 majors and 6 pre-professional programs with u ...
,
Loyola University New Orleans Loyola University New Orleans is a Private university, private Jesuit university in New Orleans, New Orleans, Louisiana. Originally established as Loyola College in 1904, the institution was chartered as a university in 1912. It bears the name of ...
and
Auburn University Auburn University (AU or Auburn) is a Public university, public Land-grant university, land-grant research university, research university in Auburn, Alabama. With more than 24,600 undergraduate students and a total enrollment of more than 30,000 ...
in the United States;
King Juan Carlos University Rey Juan Carlos University ( es, Universidad Rey Juan Carlos, URJC) is a Spanish public research university A public university or public college is a university A university ( la, universitas, 'a whole') is an educational institution, inst ...
in Spain; and
Universidad Francisco Marroquín Francisco Marroquín University (Spanish Spanish may refer to: * Items from or related to Spain , * gl, Reino de España, * oc, Reiaume d'Espanha, , , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado) ...
in Guatemala. Austrian economic ideas are also promoted by privately funded organizations such as the
Mises Institute The Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think-tank located in Auburn, Alabama, Auburn, Alabama, United States. It is named after Austrian School economist Ludwig von Mises (1881–1973 ...

Mises Institute
and the
Cato Institute The Cato Institute is an American libertarian think tank A think tank, or policy institute, is a research institute A research institute, research centre, or research center is an establishment founded for doing research. Research institute ...

Cato Institute
.


Methodology

The Austrian School theorizes that the subjective choices of individuals including individual knowledge, time, expectation and other subjective factors cause all economic phenomena. Austrians seek to understand the economy by examining the social ramifications of individual choice, an approach called
methodological individualism In the social sciences, methodological individualism is the principle that subjective individual motivation explains social phenomena, rather than class or group dynamics which are (according to proponents of individualistic principles) illusory ...
. It differs from other schools of economic thought, which have focused on aggregate variables, equilibrium analysis and societal groups rather than individuals. In the 20th and 21st centuries, economists with a methodological lineage to the early Austrian School developed many diverse approaches and theoretical orientations. For example,
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological ...

Ludwig von Mises
organized his version of the subjectivist approach, which he called "
praxeology In philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about Metaphysics, existence, reason, Epistemology, knowledge, Ethics, values, Philosophy of mind, mind, and Philosophy of language, language ...
", in a book published in English as ''
Human Action ''Human Action: A Treatise on Economics'' is a work by the Austrian Austrian may refer to: * Austrians, someone from Austria or of Austrian descent ** Someone who is considered an Austrian citizen, see Austrian nationality law * Something associ ...
'' in 1949.Ludwig von Mises, Nationalökonomie (Geneva: Union, 1940); Human Action (Auburn, Ala.: Ludwig von Mises Institute, 9491998) In it, Mises stated that praxeology could be used to deduce ''a priori'' theoretical economic truths and that deductive economic
thought experiment A thought experiment is a hypothetical situation in which a hypothesis A hypothesis (plural hypotheses) is a proposed explanation for a phenomenon. For a hypothesis to be a scientific hypothesis, the scientific method requires that one can t ...
s could yield conclusions which follow irrefutably from the underlying assumptions. He wrote that conclusions could not be inferred from empirical observation or statistical analysis and argued against the use of probabilities in economic models. Since Mises' time, some Austrian thinkers have accepted his praxeological approach while others have adopted alternative methodologies. For example,
Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austria Austria (, ; german: Österreich ), officially the Republic of Austria (german: Republik Österreich, links=no, ), is a landlocked Eastern Alps, East Alpine count ...
,
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
and others did not take Mises' strong ''a priori'' approach to economics.
Ludwig Lachmann Ludwig Maurits Lachmann (; ; 1 February 1906 – 17 December 1990) was a German German(s) may refer to: Common uses * of or related to Germany * Germans, Germanic ethnic group, citizens of Germany or people of German ancestry * For citizens o ...
, a radical subjectivist, also largely rejected Mises' formulation of Praxeology in favor of the ''verstehende Methode'' ("interpretive method") articulated by
Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German Sociology, sociologist, historian, jurist, and political economy, political economist regarded as among the most important theorists of the development of Modernity, modern ...

Max Weber
. In the 20th century, various Austrians incorporated models and mathematics into their analysis. Austrian economist
Steven Horwitz Steven Horwitz (born 7 February 1964) is an American economist of the Austrian School. Horwitz is currently the Distinguished Professor of Free Enterprise in the Department of Economics in the Miller College of Business at Ball State University in M ...

Steven Horwitz
argued in 2000 that Austrian methodology is consistent with
macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred ...
and that Austrian macroeconomics can be expressed in terms of
microeconomic Microeconomics is a branch of mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also ...
foundations.Horwitz, Steven: Microfoundations and Macroeconomics: An Austrian Perspective (2000), ''Routledge'' Austrian economist Roger Garrison writes that Austrian macroeconomic theory can be correctly expressed in terms of . In 1944, Austrian economist Oskar Morgenstern presented a rigorous schematization of an ordinal utility function (the
Von Neumann–Morgenstern utility theorem In decision theory, the von Neumann–Morgenstern (or VNM) utility theorem shows that, under certain axioms of rationality, rational behavior, a decision-maker faced with risky (probabilistic) outcomes of different choices will behave as if he or sh ...
) in ''
Theory of Games and Economic Behavior ''Theory of Games and Economic Behavior'', published in 1944 by Princeton University Press Princeton University Press is an independent publisher with close connections to Princeton University Princeton University is a private university, p ...
''.


Fundamental tenets

In 1981,
Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austria Austria (, ; german: Österreich ), officially the Republic of Austria (german: Republik Österreich, links=no, ), is a landlocked Eastern Alps, East Alpine count ...
listed the typical views of Austrian economic thinking as such: *
Methodological individualism In the social sciences, methodological individualism is the principle that subjective individual motivation explains social phenomena, rather than class or group dynamics which are (according to proponents of individualistic principles) illusory ...
: in the explanation of economic phenomena, we have to go back to the actions (or inaction) of individuals; groups or "collectives" cannot act except through the actions of individual members. Groups don't think; people think. * Methodological subjectivism: in the explanation of economic phenomena, we have to go back to judgments and choices made by individuals on the basis of whatever knowledge they have or believe to have and whatever expectations they entertain regarding external developments and especially the perceived consequences of their own intended actions. * Tastes and preferences: subjective valuations of goods and services determine the demand for them so that their prices are influenced by (actual and potential) consumers. *
Opportunity cost In microeconomic theory Microeconomics (from Greek prefix ''mikro-'' meaning "small" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Produ ...
s: the costs with which producers and other economic actors calculate reflect the alternative opportunities that must be foregone; as productive services are employed for one purpose, all alternative uses have to be sacrificed. *
Marginalism Marginalism is a theory of economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economic ...
: in all economic designs, the values, costs, revenues, productivity and so on are determined by the significance of the last unit added to or subtracted from the total. * Time structure of production and consumption: decisions to save reflect "time preferences" regarding consumption in the immediate, distant, or indefinite future and investments are made in view of larger outputs expected to be obtained if more time-taking production processes are undertaken. He included two additional tenets held by the Mises branch of Austrian economics: *
Consumer sovereignty Consumer sovereignty is an economic concept where the consumer has some controlling power over goods that are produced, and the idea that the consumer is the best judge of their own welfare. ''Consumer sovereignty in production'' is the controlli ...
: the influence consumers have on the effective demand for goods and services and through the prices which result in free competitive markets, on the production plans of producers and investors, is not merely a hard fact but also an important objective, attainable only by complete avoidance of governmental interference with the markets and of restrictions on the freedom of sellers and buyers to follow their own judgment regarding quantities, qualities and prices of products and services. * Political individualism: only when individuals are given full economic freedom will it be possible to secure political and moral freedom. Restrictions on economic freedom lead, sooner or later, to an extension of the coercive activities of the state into the political domain, undermining and eventually destroying the essential individual liberties which the capitalistic societies were able to attain in the 19th century.


Contributions to economic thought


Opportunity cost

The opportunity cost doctrine was first explicitly formulated by the Austrian economist
Friedrich von Wieser Friedrich Freiherr von Wieser (; 10 July 1851 – 22 July 1926) was an early (so-called "first generation") economist of the Austrian School of economics. Born in Vienna, the son of Privy Councillor Leopold von Wieser, a high official in the war min ...
in the late 19th century. Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative foregone (that is not chosen). It is the sacrifice related to the second best choice available to someone, or group, who has picked among several
mutually exclusive In logic and probability theory, two events (or propositions) are mutually exclusive or disjoint if they cannot both occur at the same time. A clear example is the set of outcomes of a single coin toss, which can result in either heads or tails, ...
choices. Opportunity cost is a key concept in mainstream
economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interact ...

economics
and has been described as expressing "the basic relationship between
scarcity Scarcity as an economic concept "refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each econo ...
and
choice A choice is the range of different things from which you can choose. The arrival at a choice may incorporate Motivation, motivators and Choice modelling, models. For example, a traveler might choose a route for a journey based on the preferenc ...

choice
". The notion of opportunity cost plays a crucial part in ensuring that resources are used efficiently.


Capital and interest

The Austrian theory of capital and interest was first developed by Eugen Böhm von Bawerk. He stated that interest rates and profits are determined by two factors, namely
supply and demand In microeconomics Microeconomics is a branch of that studies the behavior of individuals and in making decisions regarding the allocation of and the interactions among these individuals and firms. Microeconomics focuses on the study ...

supply and demand
in the market for final goods and time preference.Böhm-Bawerk, Eugen Ritter von; ''Kapital Und Kapitalizns. Zweite Abteilung: Positive Theorie des Kapitales'' (1889). Translated as ''Capital and Interest. II: Positive Theory of Capital'' with appendices rendered as ''Further Essays on Capital and Interest''. Böhm-Bawerk's theory equates
capital intensityCapital intensity is the amount of fixed or real capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase or capitals (or more formally ''majus ...
with the degree of roundaboutness of production processes. Böhm-Bawerk also argued that the law of
marginal utility In economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societies. ...
necessarily implies the classical law of costs. Some Austrian economists therefore entirely reject the notion that interest rates are affected by
liquidity preference__NOTOC__ In macroeconomic theory, liquidity preference is the demand for money In monetary economics Monetary economics is the branch of economics that studies the different competing theories of money: it provides a framework for analyzing ...
.


Inflation

In Mises's definition, inflation is an increase in the supply of money: Hayek pointed out that inflationary stimulation exploits the lag between an increase in money supply and the consequent increase in the prices of goods and services:


Economic calculation problem

The economic calculation problem refers to a criticism of
planned economies A planned economy is a type of economic system where investment To invest is to allocate money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with th ...
which was first stated by
Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German Sociology, sociologist, historian, jurist, and political economy, political economist regarded as among the most important theorists of the development of Modernity, modern ...

Max Weber
in 1920. Mises subsequently discussed Weber's idea with his student Friedrich Hayek, who developed it in various works including ''
The Road to Serfdom ''The Road to Serfdom'' ( German: ''Der Weg zur Knechtschaft'') is a book written between 1940 and 1943 by Austrian-British economist An economist is a practitioner in the social sciences, social science discipline of economics. The individu ...
''. What the calculation problem essentially states, is that without price signals, the
factors of production In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods a ...
would never be allocated in the most efficient way possible, making Socialism as a system unworkable. Austrian theory emphasizes the organizing power of markets. Hayek stated that market prices reflect information, the totality of which is not known to any single individual, which determines the allocation of resources in an economy. Because socialist systems lack the individual incentives and
price discovery The price discovery process (also called price discovery mechanism) is the process of determining the price A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for one unit o ...
processes by which individuals act on their personal information, Hayek argued that socialist economic planners lack all of the knowledge required to make optimal decisions. Those who agree with this criticism view it as a refutation of socialism, showing that socialism is not a viable or sustainable form of economic organization. The debate rose to prominence in the 1920s and 1930s and that specific period of the debate has come to be known by historians of economic thought as the socialist calculation debate. Mises argued in a 1920 essay "
Economic Calculation in the Socialist Commonwealth "Economic Calculation in the Socialist Commonwealth" is an article by Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological individualism ...
" that the pricing systems in socialist economies were necessarily deficient because if the government owned the means of production, then no prices could be obtained for capital goods as they were merely internal transfers of goods in a socialist system and not "objects of exchange", unlike final goods. Therefore, they were unpriced and hence the system would be necessarily inefficient since the central planners would not know how to allocate the available resources efficiently. This led him to write "that rational economic activity is impossible in a socialist commonwealth".


Business cycles

The Austrian theory of the business cycle (ABCT) focuses on banks' issuance of credit as the cause of economic fluctuations.''America's Great Depression'',
Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American heterodox economist Heterodox economics is any economic thought or theory that contrasts with orthodox schools of economic thought, or that may be beyond neoclas ...

Murray Rothbard
Although later elaborated by Hayek and others, the theory was first set forth by Mises, who posited that fractional reserve banks extend credit at artificially low interest rates, causing businesses to invest in relatively Roundaboutness, roundabout production processes which leads to an artificial "boom". Mises stated that this artificial "boom" then led to a misallocation of resources which he called "malinvestment" - which eventually must end in a "bust". Mises surmised how government manipulation of money and credit in the banking system throws savings and investment out of balance, resulting in misdirected investment projects that are eventually found to be unsustainable, at which point the economy has to rebalance itself through a period of corrective recession. Austrian economist Fritz Machlup summarized the Austrian view by stating, "monetary factors cause the cycle but real phenomena constitute it." For Austrians, the only prudent strategy for government is to leave money and the financial system to the free market's competitive forces to eradicate the business cycle's inflationary booms and recessionary busts, allowing markets to keep people's saving and investment decisions in place for well-coordinated economic stability and growth. A Keynesian would suggest government intervention during a recession to inject spending into the economy when people are not. However, the heart of Austrian macroeconomic theory states the government "fine tuning" through expansions and contractions in the money supply orchestrated by the government are actually the cause of business cycles because of the differing impact of the resulting interest rate changes on different stages in the structure of production. Austrian economist Thomas Woods further supports this view by arguing it is not consumption, but rather production that should be emphasized. A country cannot become rich by consuming, and therefore, by using up all their resources. Instead, production is what enables consumption as a possibility in the first place, since a producer would not be working for nothing, if not for the desire to consume.


Central banks

According to
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School The Austrian School is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that is based on methodological ...

Ludwig von Mises
, central banks enable the commercial banks to fund loans at artificially low interest rates, thereby inducing an unsustainable expansion of bank credit and impeding any subsequent contraction and argued for a gold standard to constrain growth in fiduciary media.
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist An economist is a professional and practitioner in the social science Social science is the ...
took a different perspective not focusing on gold but focusing on regulation of the banking sector via strong central banking.


Criticism


General criticism

Mainstream economists generally reject modern-day Austrian economics, and have argued that modern-day Austrian economists are excessively averse to the use of mathematics and statistics in economics. Austrian opposition to mathematization extends to economic theorizing only, as they argue that human behavior is too variable for overarching mathematical models to hold true across time and context. Austrians do, however, support analyzing revealed preference via mathematization to aid business and finance. Economist Paul Krugman has stated that they are unaware of holes in their own thinking because Austrians do not use "explicit models". Economist Benjamin Klein has criticized the economic methodological work of Austrian economist Israel M. Kirzner. While praising Kirzner for highlighting shortcomings in traditional methodology, Klein argued that Kirzner did not provide a viable alternative for economic methodology. Economist Tyler Cowen has written that Kirzner's theory of entrepreneurship can ultimately be reduced to a neoclassical search model and is thus not in the radical subjectivist tradition of Austrian praxeology. Cowen states that Kirzner's entrepreneurs can be modeled in mainstream terms of search. Economist Jeffrey Sachs argues that among developed countries those with high rates of taxation and high social welfare spending perform better on most measures of economic performance compared to countries with low rates of taxation and low social outlays. He concludes that Friedrich Hayek was wrong to argue that high levels of government spending harms an economy and "a generous social-welfare state is not a road to serfdom but rather to fairness, economic equality and international competitiveness". Austrian economist Sudha Shenoy responded by arguing that countries with large public sectors have grown more slowly. Economist Bryan Caplan has noted that Mises has been criticized for overstating the strength of his case in describing socialism as "impossible" rather than as something that would need to establish non-market institutions to deal with the inefficiency.


Methodology

Critics generally argue that Austrian economics lacks scientific rigor and rejects scientific methods and the use of empirical data in modelling economic behavior."Rules for the study of natural philosophy", from Book 3, ''The System of the World''. Some economists describe Austrian methodology as being ''A priori and a posteriori, a priori'' or empirical, non-empirical. Economist Mark Blaug has criticized over-reliance on methodological individualism, arguing it would rule out all macroeconomic propositions that cannot be reduced to microeconomic ones, and hence reject almost the whole of received macroeconomics. Economist Thomas Mayer (American economist), Thomas Mayer has stated that Austrians advocate a rejection of the scientific method which involves the development of empirically falsifiable Scientific theory#Pedagogical definition, theories. Furthermore, economists have developed numerous experiments that elicit useful information about individual preferences. Although economist Leland Yeager is sympathetic to Austrian economics, he rejects many favorite views of the Misesian group of Austrians, in particular "the specifics of their business-cycle theory, ultra-subjectivism in value theory and particularly in interest-rate theory, their insistence on unidirectional causality rather than general interdependence, and their fondness for methodological brooding, pointless profundities, and verbal gymnastics". Economist Paul A. Samuelson wrote in 1964 that most economists believe that economic conclusions reached by pure logical deduction are limited and weak. According to Samuelson and Caplan, Mises' deductive methodology also embraced by
Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American heterodox economist Heterodox economics is any economic thought or theory that contrasts with orthodox schools of economic thought, or that may be beyond neoclas ...

Murray Rothbard
and to a lesser extent by Mises' student Israel Kirzner was not sufficient in and of itself.


Business cycle theory

Mainstream economic research regarding Austrian business cycle theory finds that it is inconsistent with empirical evidence. Economists such as Gordon Tullock, Milton Friedman and Paul Krugman have said that they regard the theory as incorrect. Austrian economist Ludwig Lachmann noted that the Austrian theory was rejected during the 1930s:


Theoretical objections

Some economists argue that Austrian business cycle theory requires bankers and investors to exhibit a kind of irrationality because the Austrian theory posits that investors will be fooled repeatedly (by temporarily low interest rates) into making unprofitable investment decisions. Milton Friedman objected to the policy implications of the theory, stating the following in a 1998 interview:


Empirical objections

Milton Friedman after examining the history of business cycles in the United States wrote that there "appears to be no systematic connection between the size of an expansion and of the succeeding contraction", and that further analysis could cast doubt on business cycle theories which rely on this premise. Referring to Friedman's discussion of the business cycle, Austrian economist Roger Garrison argued that Friedman's empirical findings are "broadly consistent with both Monetarist and Austrian views" and goes on to argue that although Friedman's model "describes the economy's performance at the highest level of aggregation, Austrian theory offers an insightful account of the market process that might underlie those aggregates".


See also

* Criticism of the Federal Reserve * List of Austrian intellectual traditions * List of Austrian School economists * Perspectives on capitalism by school of thought * New institutional economics * School of Salamanca


Notes and references


Further reading

* * Campagnolo, Gilles, and Christel Vivel. "The foundations of the theory of entrepreneurship in austrian economics–Menger and Böhm-Bawerk on the entrepreneur." ''Revue de philosophie économique'' 15.1 (2014): 49–97
online in English
* Hagemann, Harald, Tamotsu Nishizawa, and Yukihiro Ikeda, eds. ''Austrian Economics in Transition: From Carl Menger to Friedrich Hayek'' (Palgrave Macmillan; 2010) 339 pp
online review
* Holcombe, Randall. ''The Great Austrian Economists'' (1999) 273pp. . * Littlechild, Stephen, ed. (1990). ''Austrian economics'', 3 v. Edward Elgar
Description
and scroll to chapter previe
links
for v. 1. * Papaioannou, Theo. ''Reading Hayek in the 21st Century: a critical inquiry into his political thought'' Springer, 2012. * * Wasserman, Janek. ''The Marginal Revolutionaries: How Austrian Economists Fought the War of Ideas'' (2019
except


External links


Understanding Austrian Economics
by
Henry Hazlitt Henry Stuart Hazlitt (; November 28, 1894 – July 9, 1993) was an American journalist who wrote about business and economics for such publications as ''The Wall Street Journal ''The Wall Street Journal'', also known as ''The Journal'', is ...

Henry Hazlitt
* {{Authority control Austrian School, Schools of economic thought Libertarian theory