@til Today I learned that the Austrian School of Economics, on which our current economic models are based, is not itself based on empiricism and in fact argues that it should not be based on empiric studies at all but on thought experiments. https://en.wikipedia.org/wiki/Praxeology#Austrian_economics
You kinda can’t fully empirically study economics. Austrian economics is still stupid.
If the Austrians were right, the USD would have collapsed due to Pandemic money printing. I was one of the people who didn’t have a degree in economics and was sure the Austrians were right. I was wrong and made a lot of investments that failed spectacularly.
Austrians are economists who 100% know the correct model. And it doesn’t matter what stupid reality does.
It might not have fully collapsed (yet), but I think all the money printing had a lot to do with the subsequent relative price boom of various assets. For instance if you had bought gold and waited a few years it would have worked out pretty well. Inflation relative to stores of wealth has been a lot higher than inflation relative to consumer goods.
Been hearing that for 20 years since the GFC
Hint: if your economic theory makes a prediction but has no time horizon, then it has NO PREDICTIVE POWER
Edit: retroactive price predictions, be they in gold bitcoin or beanie babies, also is spectacularly unimpressive for an economic theory
austrian school of economics is pseudoscience. Marxism all the way.
Right, the labour theory of value is not pseudoscience then? It’s based on empiricism? Care to substantiate that with literally anything other than “Marx said so”?
Labour theory of Value has actually been proven with empirical evidence, heres a research paper regarding that: https://www.researchgate.net/publication/2623737_The_Scientific_Status_of_the_Labour_Theory_of_Value
Show me one research paper proving other theories of value.
Current systems aren’t based on Australian but incorporate ideas that have proven useful or correct like Opportunity Cost.
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Argh!
Damn autocorrect
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I mean this could vary state by state but largely its base on kensyian or post kensyian model
Currently we use the Keynesian economics model. This is one of my favorite videos on the subject. https://youtu.be/GTQnarzmTOc
tacitly. politicians are fine doing half of it like manipulating interest rates and lowering taxes and borrowing but not so much on raising taxes or rainy day funds. Politicians treat all times as bad times and if they want to slow down growth they only raise interest rates and do austerity.
