Wall Street Mathematics

20120414-095422.jpg

In many ways, the difference between Austrian economics, and all the other false economics schools is the “=” symbol. In Keynesianism and its derivatives, including monetarism, the use of the equals symbol is ubiquitious. However, in Austrian economics you very rarely see mathematics.

This is because Austrian economics is based on humanity and motivations, and emotions and desires. The other false schools are based on mathematics and physics, treating people like blind unknowing atoms bouncing around in a chaotic universe at worst, and human ants at best.

In this excellent article, Doug French examines how this lack of humanity keeps taking the global financial system from one crash to another, and how it will only be fixed by eliminating fiat money and state money monopolies, to allow Joseph Schumpeter’s creative destructionism to start working again, that most important of free market mechanisms.

Alas, Mr French does use the strange American spelling for ‘mathematics’ in his article title, but as he is an American (in the best Doug Casey sense of the term), let us forgive him:

Advertisements

About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
This entry was posted in Austrian Economics and tagged , , . Bookmark the permalink.

Leave a civil and intelligent reply - Comments will be moderated

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s