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Austrian School 1

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The Austrian School is a school of economic thought that is based on the analysis of the purposeful actions ofindividuals (see methodological individualism).[3][4][5] It originated in late-19th and early-20th century Vienna with

the work of Carl Menger, Eugen von Bhm-Bawerk, Friedrich von Wieser, and others.[6] Current-day economists

working in this tradition are located in many different countries, but their work is referred to as Austrian economics.

Among the theoretical contributions of the early years of the Austrian School are the subjective theory of value,

marginalism in price theory, and the formulation of the economic calculation problem, each of which has become an

accepted part of mainstream economics.

Many economists are critical of the current-day Austrian School and consider its rejection of econometrics, and

aggregate macroeconomic analysis to be outside of mainstream economic theory, or "heterodox." Austrians are

likewise critical of mainstream economics.

[7]

Although the Austrian School has been considered heterodox since thelate 1930s, it began to attract renewed academic and public interest starting in the 1970s.
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Austrian School 2

Methodology

Main articles: Action axiom, Catallactics and Praxeology

The Austrian School theorizes that the subjective choices of individuals underlie all economic phenomena. Austrians

seek to understand the observed economy by examining the social ramifications of such individual choice. This

approach, termed methodological individualism, differs significantly from many other schools of economic thought,

which have placed less importance on individual knowledge, time, expectation, and other subjective factors andfocused instead on aggregate variables, equilibrium analysis, and the consideration of societal groups rather than

individuals.

Ludwig von Mises

In the twentieth and twenty-first centuries, many diverse approaches and

theoretical orientations have developed among economists whose methodological

lineage can be traced back to the early Austrian School. For example, in 1949,

Ludwig von Mises codified his version of the subjectivist approach, which he

called "praxeology", in a book published in English as Human Action.[8] In it,

Mises presented an extensive statement of his method, and stated that praxeology

could be used to deduce a priori theoretical economic truths. Mises also argued

against the use of probabilities in economic models. According to Mises,

deductive economic thought experiment can yield conclusions which follow

irrefutably from the underlying assumptions and could not be inferred from

empirical observation or statistical analysis.

Since Mises time, many, but certainly not all, Austrian thinkers have accepted his

praxeological approach. Some have adopted alternative methodologies.[9] For

example, Fritz Machlup, Friedrich Hayek, and others, did not take Mises' strong a priori approach to economics.[10]

Prof. Ludwig Lachmann, a radical subjectivist, also largely rejected Mises' formulation of Praxeology in favor of the

verstehende Methode (interpretive method) articulated by Max Weber.

Economist Paul A. Samuelson has written that most economists believe that economic conclusions reached by pure

logical deduction are limited and weak. According to Samuelson and economist Bryan Caplan, Mises' deductive

methodology (also embraced by Murray Rothbard and to a lesser extent by Mises' student, Israel Kirzner) was not

sufficient in and of itself. Caplan has written that the Austrian challenge to the realism of neoclassical assumptions

has helped work towards making those assumptions more plausible.

Starting in the 20th century, various Austrians incorporated models and mathematics into their analysis of the

economy. Austrian economist Steven Horwitz argues that Austrian methodology is consistent with macroeconomics

and that Austrian macroeconomics can be expressed in terms of microeconomic foundations.[11] Austrian economist

Roger Garrison argues that Austrian macroeconomic theory can be correctly expressed in terms of diagrammatic

models.

[12]

In 1944, Austrian economist Oskar Morgenstern presented a rigorous schematization of an ordinal utilityfunction (the Von NeumannMorgenstern utility theorem) in Theory of Games and Economic Behavior.[13]
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Austrian School 3

Fundamental tenets

Fritz Machlup listed the typical views of Austrian economic thinking.

(1) Methodological Individualism: 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.

(2) 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

consequences of their own intended actions.

(3) 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.

(4) Opportunity Costs: 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.

(5) Marginalism: In all economic designs, the values, costs, revenues, productivity, etc., are determinedby the significance of the last unit added to or subtracted from the total.

(6) 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.

Two important tenets held by the Misesian branch of Austrian economics may also be added to the list:

(7) Consumer Sovereignty: 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 ofsellers and buyers to follow their own judgment regarding quantities, qualities, and prices of products

and services.

(8) 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

nineteenth century.
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Austrian School 4

Contributions to economic thought

Opportunity cost

Main article: Opportunity cost

Friedrich von Wieser

The opportunity cost doctrine was first explicitly formulated by the Austrian

economist Friedrich von Wieser in the late 19th century. Opportunity cost is thecost 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

choices. This view is currently held by contemporary economists of all

mainstream schools of thought.

Opportunity cost is a key concept in economics, and has been described as

expressing "the basic relationship between scarcity and choice". The notion of

opportunity cost plays a crucial part in ensuring that resources are used efficiently.

Capital and interest

See also: Capital and Interest, Marginalism, Neutrality of money and Time preference

Eugen von Bhm-Bawerk

The Austrian theory of capital and interest was first developed by Eugen von

Bhm-Bawerk. He stated that interest rates and profits are determined by two

factors, namely, supply and demand in the market for final goods and time

preference.[14][15]

Bhm-Bawerk's theory was a response to Marx's labor theory of value and capital.

Bhm-Bawerk's theory attacked the viability of the labor theory of value in the

light of the transformation problem. His conception of interest countered Marx'sexploitation theory. Marx famously argued that capitalists exploit workers by

paying them less than the fruits of their labor sell for. Bohm-Bawerk countered

this claim by invoking the concept of time preference to demonstrate that

everyone values present consumption more than future consumption, and

therefore that a difference between the (smaller) salary laborers are paid in the

present and the (greater) price for which the goods they produce are later sold need not be exploitative.

Bhm-Bawerk's theory equates capital intensity with the degree of roundaboutness of production processes.

Bhm-Bawerk also argued that the law of marginal utility necessarily implies the classical law of costs. Some

Austrian economists therefore entirely reject the notion that interest rates are affected by liquidity

preference.Wikipedia:Citation needed

Inflation

See also: Monetary Inflation

Mises believed that money prices and wages will inevitably rise when the supply of money and bank credit is

increased. He therefore used the term "inflation" to mean an excessive increase of the money supply and not, as is

the common usage, to refer to price inflation. In Mises' view, inflation is the result of policies of the government or

central bank which result in an increase in the circulating money supply.[16]Wikipedia:No original research#Primary,

secondary and tertiary sources Mises wrote:

In theoretical investigation there is only one meaning that can rationally be attached to the expressionInflation: an increase in the quantity of money (in the broader sense of the term, so as to include
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Austrian School 5

fiduciary media as well), that is not offset by a corresponding increase in the need for money (again in

the broader sense of the term), so that a fall in the objective exchange-value of money must occur.[17]

Economist Richard Timberlake criticized Mises' view that inflation must refer to an increase in the money supply.

Timberlake noted that economists since the time of John Stuart Mill have recognized the distinction between

increases in the money stock and increases in the general level of money prices. Timberlake stated that Mises' view

has repeatedly been proven false and that statistical measurement of the aggregate price level is necessary in ordertest the empirical validity of Mises' theory.

Economist Paul Krugman has criticized Austrians' views on inflation and the failure to test their views against

empirical evidence. In late 2011 he pointed out that the monetary base had tripled in the previous three years, but the

average annual inflation rate was only 1.5 percent. There was no "devastating inflation" as predicted by Austrians. In

late 2012 he chided those who failed to "let the evidence speak" when it disproved the Austrian theory of inflation.

Krugman wrote: "If you believe that... expanding credit will simply result in too much money chasing too few goods,

and hence a lot of inflation... [Then] the failure of high inflation to materialize amounts to a decisive rejection of [the

Austrian] model."[18]

Economic calculation problem

Main article: Economic calculation problem

Friedrich Hayek

The economic calculation problem refers to a criticism of socialism which was

first stated by 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.[19] The problem concerns the means by which resources are

allocated and distributed in an economy.

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. Becausesocialist systems lack the individual incentives and price discovery processes by

which individuals act on their personal information, Hayek argued that the

decisions of socialist economic planners lack all of the knowledge to make

optimal decisions. Those who agree with this criticism view it is a refutation of

socialism and that it shows that it 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.[20]

Mises argued in a 1920 article "Economic Calculation in the Socialist Commonwealth" that the pricing systems in

socialist economies were necessarily deficient because if 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." Economist Bryan Caplan has

written that Mises's has been criticized as overstating the strength of his case, in describing socialism as impossible,

rather than that it may need to establish non-market institutions to deal with a source of inefficiency.
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Austrian School 6

Business cycles

Main article: Austrian business cycle theory

The Austrian theory of the business cycle ("ABCT") focuses on banks' issuance of credit as the cause of economic

fluctuations. Although later elaborated by Hayek and others, the theory was first set forth by Mises, who believed

that banks extend credit at artificially low interest rates, causing businesses to invest in relatively roundabout

production processes. Mises stated that this led to a misallocation of resources which he called malinvestment.

According to the theory, malinvestment is induced by banks' excessive and unsustainable expansion of credit to

businesses.[21] Businesses borrow at unsustainably low interest rates and overinvest in capital-intensive production

processes, which in turn leads to a diversion of investment from consumer goods industries to capital goods

industries. Austrians contend that this shift is unsustainable and must eventually be reversed, and that the

re-adjustment process will be more violent and disruptive the longer the putative malinvestment in capital goods

industries continues.

According to the Austrian view, the proportion of income allocated to consumption rather than saving is determined

by the interest rate and people's time preference, which is the degree to which they prefer present to future

satisfactions. According to this view, the pure interest rate is determined by the time preferences of the individuals in

society. If the market rate of interest offered by banks is set lower than this, business borrowing will be excessive

and will be allocated to malinvestment.[22]

Newly extended credit thus malinvested will circulate from the business borrowers to the factors of production:

landowners, capital goods producers, and capital goods workers. Austrians state that, because individuals' time

preferences have not changed, the market will tend to reestablish the old proportions between current and future

production. Depositors will tend to remove cash from the banking system and spend it (not save it), banks will then

ask their borrowers for repayment, and the excessive capital goods will be liquidated at lower prices to retire the

now-unprofitable loans.Wikipedia:Citation needed

Role of government disputedAccording to 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.[23]Wikipedia:Citation needed [21][24] Friedrich Hayek disagreed. Hayek did not favor laissez-faire in

banking and said that a freely competitive banking industry tends to be endogenously destabilizing and pro-cyclical,

mimicking the effects which Rothbard attributed to central bank policy. Hayek stated that the need for central

banking control was inescapable.

Criticism

Most research regarding the theory finds that it is inconsistent with empirical evidence. Economists such as Gordon

Tullock, Bryan Caplan, 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:

The promise of an Austrian theory of the trade cycle, which might also serve to explain the severity of

the Great Depression, a feature of the early 1930s that provided the background for Hayek s successful

appearance on the London scene, soon proved deceptive. Three giants Keynes, Knight and Sraffa

turned against the hapless Austrians who, in the middle of that black decade, thus had to do battle on

three fronts. Naturally it proved a task beyond their strength.[25]

In 1969, Milton Friedman argued that the theory is not consistent with empirical evidence[26] and using newer data in

1993 reached the same conclusion.[27] In 1986, Austrian economist Roger Garrison reviewed Hayek's development

of the Austrian Business Cycle Theory and discussed the factors that have sustained interest in the theory despite its

longtime rejection by mainstream economics.
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Austrian School 7

History

Jean-Baptiste Say

Origin of the name Austrian school

The School owes its name to members of the German Historical school of

economics, who argued against the Austrians during the Methodenstreit

("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 publishedInvestigations into the Method of the Social Sciences with

Special Reference to Economics, which attacked the methods of the Historical

school. Gustav von Schmoller, 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.[28] The label endured and was

adopted by the adherents themselves.

First Wave

Carl Menger

The school originated in Vienna, in the Austrian Empire. Carl Menger'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. 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.Wikipedia:Citing sources

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.[29]

Menger's contributions to economic theory were closely followed by those of

Bhm-Bawerk and Friedrich von Wieser. These three economists became what is

known as the "first wave" of the Austrian School. Bhm-Bawerk wrote extensive

critiques of Karl Marx in the 1880s and 1890s, as was part of the Austrians'

participation in the late 19th Century Methodenstreit, during which they attacked

the Hegelian doctrines of the Historical School.
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Austrian School 8

Early Twentieth Century in Vienna

Several important Austrian economists trained at the University of Vienna in the 1920s and later participated in the

private seminar of Mises. These included Gottfried Haberler, [30] Friedrich Hayek, Fritz Machlup, Karl Menger (son

of Carl Menger),[31] Oskar Morgenstern,[32] Paul Rosenstein-Rodan[33] Abraham Wald, among others.

Later Twentieth century

Israel Kirzner

By the mid-1930s, most economists had embraced what they considered the

important contributions of the early Austrians. After World War II, Austrian

economics was disregarded or derided by most economists because it rejected

mathematical and statistical methods in the study of economics. [34] Fritz Machlup

quoted Hayek's statement, "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." [35] Mises' student, 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 taught there.

After 1940, 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 methodology to be irredeemably flawed; the other camp,

exemplified by Friedrich Hayek, accepts a large part of neoclassical methodology and is more accepting of

government intervention in the economy.[36]

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'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 at New York University, 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

According to economist Bryan Caplan, by the late twentieth century, a split had developed among those who

self-identify with the Austrian School. One group, building on the work of Hayek, follows the broad framework ofmainstream neoclassical economics, including its use of mathematical models and general equilibrium, and merely

brings a critical perspective to mainstream methodology influenced by the Austrian notions such as the economic

calculation problem and the independent role of logical reasoning in developing economic theory.
http://en.wikipedia.org/w/index.php?title=Economic_calculation_problemhttp://en.wikipedia.org/w/index.php?title=Economic_calculation_problemhttp://en.wikipedia.org/w/index.php?title=New_York_Universityhttp://en.wikipedia.org/w/index.php?title=Ludwig_Lachmannhttp://en.wikipedia.org/w/index.php?title=The_General_Theory_of_Employment%2C_Interest_and_Moneyhttp://en.wikipedia.org/w/index.php?title=John_Maynard_Keyneshttp://en.wikipedia.org/w/index.php?title=The_Failure_of_the_New_Economicshttp://en.wikipedia.org/w/index.php?title=The_Failure_of_the_New_Economicshttp://en.wikipedia.org/w/index.php?title=Economics_in_One_Lessonhttp://en.wikipedia.org/w/index.php?title=Henry_Hazlitthttp://en.wikipedia.org/w/index.php?title=Israel_Kirznerhttp://en.wikipedia.org/w/index.php?title=World_War_IIhttp://en.wikipedia.org/w/index.php?title=File%3AIsrael_Kirzner.jpghttp://en.wikipedia.org/w/index.php?title=Israel_Kirzner


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Austrian School 9

Murray Rothbard

A second group, following Mises and Rothbard, rejects the neoclassical theories

of consumer and welfare economics, dismisses empirical methods and

mathematical and statistical models as inapplicable to economic science, and

asserts that economic theory went entirely astray in the twentieth century; they

offer the Misesian view as a radical alternative paradigm to mainstream theory.

Caplan wrote that if "Mises and Rothbard are right, then [mainstream] economicsis wrong; but if Hayek is right, then mainstream economics merely needs to adjust

its focus."

Economist Leland Yeager discussed the late twentieth century rift and referred to

a discussion written by Murray Rothbard, Hans-Hermann Hoppe, Joseph Salerno,

and others in which they attack and disparage Hayek. "To try to drive a wedge

between Mises and Hayek on [the 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" and 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 (Mises Institute), Hans-Hermann Hoppe asserted that

Murray 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 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 Bhm-Bawerk through

Mises to Rothbard.

Economists of the Hayekian view are affiliated with the Cato Institute, George Mason University (GMU), and New

York University, among other institutions. They include Peter Boettke, Roger Garrison, Steven Horwitz, Peter

Leeson and George Reisman. Economists of the Mises-Rothbard view include Walter Block, Hans-Hermann Hoppe,

Jess Huerta de Soto and Robert P. Murphy, each of whom is associated with the Mises Institute and some of themalso 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.[37]

Influence

Many theories developed by "first wave" Austrian economists have been absorbed into mainstream economics. [38]

These include Carl Menger's theories on marginal utility, Friedrich von Wieser's theories on opportunity cost, and

Eugen von Bhm-Bawerk's theories on time preference, as well as Menger and Bhm-Bawerk's criticisms of

Marxian economics.Wikipedia:Citation needed

Former U.S. Federal Reserve Chairman 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."[39] 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."[40]

Chinese economist Zhang Weiying, supports some Austrian theories such as the Austrian theory of the business

cycle.[41] Currently, universities with a significant Austrian presence are George Mason University, New York

University, Loyola University New Orleans, and Auburn University in the United States and Universidad Francisco

Marroqun in Guatemala. Austrian economic ideas are also promoted by privately funded organizations such as the

Mises Institute, and the Cato Institute.
http://en.wikipedia.org/w/index.php?title=Cato_Institutehttp://en.wikipedia.org/w/index.php?title=Universidad_Francisco_Marroqu%C3%ADnhttp://en.wikipedia.org/w/index.php?title=Universidad_Francisco_Marroqu%C3%ADnhttp://en.wikipedia.org/w/index.php?title=Auburn_Universityhttp://en.wikipedia.org/w/index.php?title=Loyola_University_New_Orleanshttp://en.wikipedia.org/w/index.php?title=New_York_Universityhttp://en.wikipedia.org/w/index.php?title=New_York_Universityhttp://en.wikipedia.org/w/index.php?title=George_Mason_Universityhttp://en.wikipedia.org/w/index.php?title=Zhang_Weiyinghttp://en.wikipedia.org/w/index.php?title=James_M._Buchananhttp://en.wikipedia.org/w/index.php?title=James_M._Buchananhttp://en.wikipedia.org/w/index.php?title=Alan_Greenspanhttp://en.wikipedia.org/w/index.php?title=U.S._Federal_Reservehttp://en.wikipedia.org/wiki/Citation_neededhttp://en.wikipedia.org/w/index.php?title=Marxian_economicshttp://en.wikipedia.org/w/index.php?title=Opportunity_costhttp://en.wikipedia.org/w/index.php?title=Mainstream_economicshttp://en.wikipedia.org/w/index.php?title=Robert_P._Murphyhttp://en.wikipedia.org/w/index.php?title=Jes%C3%BAs_Huerta_de_Sotohttp://en.wikipedia.org/w/index.php?title=Hans-Hermann_Hoppehttp://en.wikipedia.org/w/index.php?title=Walter_Blockhttp://en.wikipedia.org/w/index.php?title=George_Reismanhttp://en.wikipedia.org/w/index.php?title=Peter_Leesonhttp://en.wikipedia.org/w/index.php?title=Peter_Leesonhttp://en.wikipedia.org/w/index.php?title=Steven_Horwitzhttp://en.wikipedia.org/w/index.php?title=Roger_Garrisonhttp://en.wikipedia.org/w/index.php?title=Peter_Boettkehttp://en.wikipedia.org/w/index.php?title=George_Mason_Universityhttp://en.wikipedia.org/w/index.php?title=Cato_Institutehttp://en.wikipedia.org/w/index.php?title=British_empiricismhttp://en.wikipedia.org/w/index.php?title=Ludwig_von_Mises_Institutehttp://en.wikipedia.org/w/index.php?title=Leland_Yeagerhttp://en.wikipedia.org/w/index.php?title=File%3AMurrayBW.jpghttp://en.wikipedia.org/w/index.php?title=Murray_Rothbard


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Criticisms

General criticisms

Mainstream economists have argued that Austrians are often averse to the use of mathematics and statistics in

economics.

Economist Bryan Caplan argues that many Austrians have not understood valid contributions of modern mainstreameconomics, causing them to overstate their differences with it. For example, Murray Rothbard stated that he objected

to the use of cardinal utility in microeconomic theory. Caplan says that Rothbard did not understand the position he

was attacking, because microeconomic theorists go to great pains to show that their results are derived for any

monotonic transformation of an ordinal utility function, and do not entail cardinal utility. The result is that

conclusions about utility preferences hold no matter what values are assigned to them.Wikipedia:Citation needed

Economist Paul Krugman has stated that because Austrians do not use "explicit models" they are unaware of holes in

their own thinking. In February 2013, Krugman further criticized Austrian School economists on their failure to

revise their theory of inflation in light of their incorrect prophecies of government-induced inflation following the

2008 financial crisis.

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.[42] 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 tofairness, economic equality and international competitiveness." Austrian economist Sudha Shenoy responded by

arguing that countries with large public sectors have grown more slowly.[43]

Methodology

Critics generally argue that Austrian economics lacks scientific rigor and rejects scientific methods and the use of

empirical data in modelling economic behavior.[44] Some economists describe Austrian methodology as being a

priori or 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 has stated that Austrians advocate a rejection of the scientific method which involves the

development of empirically falsifiable theories. Furthermore, many supporters of using models of market behavior to

analyze and test economic theory argue that economists have developed numerous experiments that elicit useful

information about individual preferences.

Economist Leland Yeager rejects many favorite views of the Misesian group of Austrians, in particular, "These

include 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. Provoked by mainstream abuses of

mathematics, including the frequent merely decorative and pretentious use of symbols, some Austrians have wantedto ban mathematics from economics. But is it not arrogant for someone who does not see how to use certain
http://en.wikipedia.org/w/index.php?title=Scientific_theory%23Pedagogical_definitionhttp://en.wikipedia.org/w/index.php?title=Scientific_methodhttp://en.wikipedia.org/w/index.php?title=Thomas_Mayer_%28American_economist%29http://en.wikipedia.org/w/index.php?title=Mark_Blaughttp://en.wikipedia.org/w/index.php?title=Empiricalhttp://en.wikipedia.org/w/index.php?title=A_priori_and_a_posteriorihttp://en.wikipedia.org/w/index.php?title=A_priori_and_a_posteriorihttp://en.wikipedia.org/w/index.php?title=Sudha_Shenoyhttp://en.wikipedia.org/w/index.php?title=Jeffrey_Sachshttp://en.wikipedia.org/w/index.php?title=Israel_M._Kirznerhttp://en.wikipedia.org/w/index.php?title=Israel_M._Kirznerhttp://en.wikipedia.org/w/index.php?title=Paul_Krugmanhttp://en.wikipedia.org/wiki/Citation_neededhttp://en.wikipedia.org/w/index.php?title=Ordinal_utilityhttp://en.wikipedia.org/w/index.php?title=Monotonichttp://en.wikipedia.org/w/index.php?title=Cardinal_utility


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Austrian School 11

techniques constructively to suppose that no one else will ever see how either? These Austrians should remember

how, in other contexts, they emphasize the openness of the future and scope for novelty."

Business cycle theory

Main article: Austrian business cycle theory

According to John Quiggin, most economists believe that the Austrian business cycle theory is incorrect because ofits incompleteness and other problems.Wikipedia:Please clarify Economists such as Gottfried von Haberler, Milton

Friedman, Gordon Tullock, Bryan Caplan, and Paul Krugman have argued that the theory is incorrect.

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.[45] Bryan Caplan writes: "Why does Rothbard think

businessmen are so incompetent at forecasting government policy? He credits them with entrepreneurial foresight

about all market-generated conditions, but curiously finds them unable to forecast government policy, or even to

avoid falling prey to simple accounting illusions generated by inflation and deflation... Particularly in interventionisteconomies, it would seem that natural selection would weed out businesspeople with such a gigantic blind spot."

Economist Paul Krugman has argued that the theory cannot explain changes in unemployment over the business

cycle. Austrian business cycle theory postulates that business cycles are caused by the misallocation of resources

from consumption to investment during "booms", and out of investment during "busts". Krugman argues that

because total spending is equal to total income in an economy, the theory implies that the reallocation of resources

during "busts" would increase employment in consumption industries, whereas in reality, spending declines in all

sectors of an economy during recessions. He also argues that according to the theory the initial "booms" would also

cause resource reallocation, which implies an increase in unemployment during booms as well.

In response, historian David Gordon argues that Krugman's analysis misrepresents Austrian theory. Gordon states,

"unemployment, as Austrians see matters, stems mainly from rigid wage rates. If workers accept a fall in wages,

liquidation of the boom is compatible with full employment."[46] Austrian economist Roger Garrison states that a

false boom caused by artificially low interest rates would cause a boom in consumption goods as well as investment

goods (with a decrease in "middle goods"), thus explaining the jump in unemployment at the end of a boom.

Garrison has also stated that capital allocated to investment goods cannot always be redeployed to create

consumption goods.

Economist Jeffery Hummel is critical of Hayek's explanation of labor asymmetry in booms and busts. He argues that

Hayek makes peculiar assumptions about demand curves for labor in his explanation of how a decrease in

investment spending creates unemployment. He also argues that the labor asymmetry can be explained in terms of a

change in real wages, but this explanation fails to explain the business cycle in terms of resource allocation.Milton Friedman objected to the policy implications of the theory, stating the following in a 1998 interview:

I think the Austrian business-cycle theory has done the world a great deal of harm. If you go back to the

1930s, which is a key point, here you had the Austrians sitting in London, Hayek and Lionel Robbins,

and saying you just have to let the bottom drop out of the world. You ve just got to let it cure itself. You

cant do anything about it. You will only make it worse. You have Rothbard saying it was a great

mistake not to let the whole banking system collapse. I think by encouraging that kind of do-nothing

policy both in Britain and in the United States, they did harm.[47]
http://en.wikipedia.org/w/index.php?title=David_Gordon_%28philosopher%29http://en.wikipedia.org/w/index.php?title=Paul_Krugmanhttp://en.wikipedia.org/w/index.php?title=Bryan_Caplanhttp://en.wikipedia.org/w/index.php?title=Gordon_Tullockhttp://en.wikipedia.org/w/index.php?title=Milton_Friedmanhttp://en.wikipedia.org/w/index.php?title=Milton_Friedmanhttp://en.wikipedia.org/w/index.php?title=Gottfried_von_Haberlerhttp://en.wikipedia.org/wiki/Please_clarifyhttp://en.wikipedia.org/w/index.php?title=John_Quigginhttp://en.wikipedia.org/w/index.php?title=Austrian_business_cycle_theory


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Austrian School 12

Empirical objections

Hummel argues that the Austrian explanation of the business cycle fails on empirical grounds. In particular, he notes

that investment spending remained positive in all recessions where there are data, except for the Great Depression.

He argues that this casts doubt on the notion that recessions are caused by a reallocation of resources from industrial

production to consumption, since he argues that the Austrian business cycle theory implies that net investment

should be below zero during recessions. In response, Austrian economist Walter Block argues that the misallocationduring booms does not preclude the possibility of demand increasing overall.[48]

In 1969, economist Milton Friedman, after examining the history of business cycles in the U.S., concluded that "The

Hayek-Mises explanation of the business cycle is contradicted by the evidence. It is, I believe, false." He analyzed

the issue using newer data in 1993, and again reached the same conclusion.

Referring to Friedman's discussion of the business cycle, Austrian economist Roger Garrison stated, "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."[49]

Principal works

Capital and Interest by Eugen von Bhm-Bawerk

Individualism and Economic Order by Friedrich Hayek

Principles of Economics by Carl Menger

Human Action by Ludwig von Mises

Man, Economy, and State by Murray N. Rothbard

References and notes

[1] http:/ /en. wikipedia. org/w/index.php?title=Template:Austrian_School_sidebar& action=edit

[2] http:/ /en. wikipedia. org/w/index.php?title=Template:Neoliberalism_sidebar&action=edit[3] Carl Menger, Principles of Economics, online at http://www.mises.org/etexts/menger/principles.asp

[4] Methodological Individualism at the Stanford Encyclopedia of Philosophy (http://plato.stanford. edu/entries/

methodological-individualism/)

[5] Ludwig von Mises. Human Action, p. 11, "r. Purposeful Action and Animal Reaction". Referenced 2011-11-23.

[6][6] Joseph A. Schumpeter, History of economic analysis, Oxford University Press 1996, ISBN 978-0195105599.

[7] Austrian Economics and the Mainstream: View from the Boundary (http://mises.org/journals/qjae/pdf/qjae3_2_3. pdf), Roger E.

Backhouse

[8][8] Ludwig von Mises, Nationalkonomie (Geneva: Union, 1940), p. 3; Human Action (Auburn, Ala.: Ludwig von Mises Institute, [1949] 1998),

p. 3.

[9] Bruce J. Caldwell "Praxeology and its Critics: an Appraisal" History of Political Economy Fall 1984 16(3): 363379; (http://public.econ.

duke. edu/~bjc18/docs/Praxeology and Its Critics. pdf)

[10] Richard N. Langlois, "FROM THE KNOWLEDGE OF ECONOMICS TO THE ECONOMICS OF KNOWLEDGE: FRITZ MACHLUPON METHODOLOGY AND ON THE "KNOWLEDGE SOCIETY" Research in the History of Economic Thought and Methodology,

Volume 3, pp. 225235 (http://web.uconn. edu/ciom/Machlup Knowledge (1985). pdf)

[11] Horwitz, Steven: Microfoundations and Macroeconomics: An Austrian Perspective (2000)|Routledge

[12] http://library. mises.org/books/Roger%20W%20Garrison/Austrian%20Macroeconomics%20A%20Diagrammatical%20Exposition. pdf

Garrison, Roger: Austrian Macroeconomics: A Diagrammatical Exposition (1978)|Institute for Humane Studies

[13][13] Neumann, John von and Morgenstern, Oskar Theory of Games and Economic Behavior. Princeton, NJ. Princeton University Press. 1944

[14] Bhm-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 asFurther Essays on Capital and Interest.

[15] http://www.econlib.org/library/Enc/bios/BohmBawerk. html

[16] Ludwig von Mises, The Theory of Money and Credit (http://mises.org/books/Theory_Money_Credit/Contents. aspx)", ISBN

978-0-913966-70-9

[17][17] The Theory of Money and Credit, Mises (1912, [1981], p. 272)

[18] Paul Krugman, Varieties of Error (http://krugman. blogs.nytimes.com/2012/11/29/varieties-of-error/), 2012.
http://krugman.blogs.nytimes.com/2012/11/29/varieties-of-error/http://mises.org/books/Theory_Money_Credit/Contents.aspxhttp://www.econlib.org/library/Enc/bios/BohmBawerk.htmlhttp://library.mises.org/books/Roger%20W%20Garrison/Austrian%20Macroeconomics%20A%20Diagrammatical%20Exposition.pdfhttp://web.uconn.edu/ciom/Machlup%20Knowledge%20(1985).pdfhttp://public.econ.duke.edu/~bjc18/docs/Praxeology%20and%20Its%20Critics.pdfhttp://public.econ.duke.edu/~bjc18/docs/Praxeology%20and%20Its%20Critics.pdfhttp://mises.org/journals/qjae/pdf/qjae3_2_3.pdfhttp://en.wikipedia.org/w/index.php?title=Human_Actionhttp://plato.stanford.edu/entries/methodological-individualism/http://plato.stanford.edu/entries/methodological-individualism/http://www.mises.org/etexts/menger/principles.asphttp://en.wikipedia.org/w/index.php?title=Template:Neoliberalism_sidebar&action=edithttp://en.wikipedia.org/w/index.php?title=Template:Austrian_School_sidebar&action=edithttp://en.wikipedia.org/w/index.php?title=Murray_Rothbardhttp://en.wikipedia.org/w/index.php?title=Man%2C_Economy%2C_and_Statehttp://en.wikipedia.org/w/index.php?title=Ludwig_von_Miseshttp://en.wikipedia.org/w/index.php?title=Human_Actionhttp://en.wikipedia.org/w/index.php?title=Carl_Mengerhttp://en.wikipedia.org/w/index.php?title=Principles_of_Economicshttp://en.wikipedia.org/w/index.php?title=Friedrich_Hayekhttp://en.wikipedia.org/w/index.php?title=Individualism_and_Economic_Orderhttp://en.wikipedia.org/w/index.php?title=Eugen_von_B%C3%B6hm-Bawerkhttp://en.wikipedia.org/w/index.php?title=Capital_and_Interesthttp://en.wikipedia.org/w/index.php?title=Walter_Blockhttp://en.wikipedia.org/w/index.php?title=Great_Depression


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Austrian School 13

[19] F. A. Hayek, (1935), "The Nature and History of the Problem" and "The Present State of the Debate," om in F. A. Hayek, ed. Collectivist

Economic Planning, pp. 140, 201243.

[20] The socialist calculation debate (http://cepa. newschool. edu/het/essays/paretian/social.htm)

[21] Theory of Money and Credit (http://www.econlib. org/library/Mises/msT.html), Ludwig von Mises, Part III, Part IV

[22] Theory of Money and Credit (http://www.econlib. org/library/Mises/msT.html), Ludwig von Mises, Part II

[23] The Mystery of Banking (http://www.mises.org/Books/mysteryofbanking. pdf), Murray Rothbard, 1983

[24] America's Great Depression, Murray Rothbard

[25][25] Ludwig M. Lachmann, in The Market as an Economic Process (Oxford, 1986), p. ix[26] Friedman, Milton. "The Monetary Studies of the National Bureau, 44th Annual Report". The Optimal Quantity of Money and Other Essays.

Chicago: Aldine. pp. 261284.

[27] Friedman, Milton. "The 'Plucking Model' of Business Fluctuations Revisited". Economic Inquiry: 171177.

[28] "Mengers approach haughtily dismissed by the leader of the German Historical School, Gustav Schmoller, as merely Austrian, the

origin of that label led to a renaissance of theoretical economics in Europe and, later, in the United States." Peter G. Klein, 2007; in the

Foreword toPrinciples of Economics, Carl Menger; trns. James Dingwall and Bert F. Hoselitz, 1976; Ludwig von Mises Institute, Alabama;

2007; ISBN 978-1-933550-12-1

[29] Israel M. Kirzner (1987). "Austrian School of Economics," The New Palgrave: A Dictionary of Economics, v. 1, pp. 145151.

[30] http://mises.org/page/1452/Biography-of-Gottfried-Haberler-19011995

[31] http://www.iit.edu/csl/am/about/menger/about. shtml

[32] http://library. duke.edu/rubenstein/findingaids/morgenst/

[33] http:/

/

archives.lse.

ac.

uk/

Record.

aspx?src=CalmView.

Catalog&

id=COLL+

MISC+

0324 Archive at London School of Economics[34] " Austrian economics and the mainstream: View from the boundary (http://www.springerlink. com/content/kq577622488v4447/fulltext.

pdf)" by Roger E. Backhouse, $34 to view

[35] http://mises.org/daily/1700/Ludwig-von-Mises-A-Scholar-Who-Would-Not-Compromise Homage to Mises by Fritz Machlup 1981

[36] http://mises.org/journals/qjae/pdf/qjae7_1_3. pdf

[37] Robert Murphy blog, December 31, 2011. (http://consultingbyrpm. com/blog/2011/12/in-defense-of-the-mises-institute.html)

[38][38] It has also influenced related disciplines such as Law and Economics, see. K. Grechenig, M. Litschka, Law by Human Intent or Evolution?

Some Remarks on the Austrian School of Economics' Role in the Development of Law and Economics, European Journal of Law and

Economics (EJLE) 2010, vol. 29 (1), p. 57-79.

[39][39] Greenspan, Alan. "Hearings before the U.S. House of Representatives' Committee on Financial Services." U.S. House of Representatives'

Committee on Financial Services. Washington D.C.. 25 July 2000.

[40] An Interview with Laureate James Buchanan (http://mises.org/journals/aen/aen9_1_1. asp) Austrian Economics Newsletter: Volume 9,

Number 1; Fall 1987

[41] Weiyin, Zhang, "Completely bury Keynesianism", http://finance.sina.com.cn/20090217/10345864499_3. shtml (February 17, 2009)

[42] Klein, Benjamin. "Book review: Competition and Entrepreneurship" (by Israel M. Kirzner, University of Chicago Press, 1973)Journal of

Political Economy. Vol. 83: No. 6, 13051306, December 1975.

[43] Sudha R. Shenoy,Are High Taxes the Basis of Freedom and Prosperity?, http://www.thefreemanonline. org/featured/

are-high-taxes-the-basis-of-freedom-and-prosperity/

[44] "Rules for the study of natural philosophy", , from Book 3, The System of the World.

[45] Problems with Austrian Business Cycle Theory (http://www.reasonpapers. com/pdf/05/rp_5_4. pdf)

[46] Hangover Theory: How Paul Krugman Has Misconceived Austrian Theory David Gordon Mises Daily (http://mises.org/daily/3579)

[47] Interview inBarron's Magazine, August 24, 1998 archived at Hoover Institution (http://www.hoover. org/publications/hoover-digest/

article/6459)

[48] http://www.reasonpapers.com/pdf/30/rp_30_4. pdf

[49][49] Milton Friedman, "The 'Plucking Model' of Business Fluctuations Revisited" Economic Inquiry April, 1993
http://www.reasonpapers.com/pdf/30/rp_30_4.pdfhttp://www.hoover.org/publications/hoover-digest/article/6459http://www.hoover.org/publications/hoover-digest/article/6459http://mises.org/daily/3579http://www.reasonpapers.com/pdf/05/rp_5_4.pdfhttp://en.wikipedia.org/w/index.php?title=Natural_philosophyhttp://www.thefreemanonline.org/featured/are-high-taxes-the-basis-of-freedom-and-prosperity/http://www.thefreemanonline.org/featured/are-high-taxes-the-basis-of-freedom-and-prosperity/http://en.wikipedia.org/w/index.php?title=Journal_of_Political_Economyhttp://en.wikipedia.org/w/index.php?title=Journal_of_Political_Economyhttp://en.wikipedia.org/w/index.php?title=Israel_M._Kirznerhttp://finance.sina.com.cn/20090217/10345864499_3.shtmlhttp://mises.org/journals/aen/aen9_1_1.asphttp://consultingbyrpm.com/blog/2011/12/in-defense-of-the-mises-institute.htmlhttp://mises.org/journals/qjae/pdf/qjae7_1_3.pdfhttp://mises.org/daily/1700/Ludwig-von-Mises-A-Scholar-Who-Would-Not-Compromisehttp://www.springerlink.com/content/kq577622488v4447/fulltext.pdfhttp://www.springerlink.com/content/kq577622488v4447/fulltext.pdfhttp://archives.lse.ac.uk/Record.aspx?src=CalmView.Catalog&id=COLL+MISC+0324http://library.duke.edu/rubenstein/findingaids/morgenst/http://www.iit.edu/csl/am/about/menger/about.shtmlhttp://mises.org/page/1452/Biography-of-Gottfried-Haberler-19011995http://en.wikipedia.org/w/index.php?title=The_New_Palgrave:_A_Dictionary_of_Economicshttp://en.wikipedia.org/w/index.php?title=Peter_G._Kleinhttp://en.wikipedia.org/w/index.php?title=Murray_Rothbardhttp://en.wikipedia.org/w/index.php?title=America%27s_Great_Depressionhttp://www.mises.org/Books/mysteryofbanking.pdfhttp://www.econlib.org/library/Mises/msT.htmlhttp://www.econlib.org/library/Mises/msT.htmlhttp://cepa.newschool.edu/het/essays/paretian/social.htm


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Austrian School 14

Further reading

Alejandro Agafonow (2012). The Austrian Dehomogenization Debate, or the Possibility of a Hayekian Planner,

(http://ideas.repec.org/a/taf/revpoe/v24y2012i2p273-287.html)Review of Political Economy, Vol. 24, No.

02.

Harald Hagemann, Tamotsu Nishizawa, and Yukihiro Ikeda, eds.Austrian Economics in Transition: From Carl

Menger to Friedrich Hayek (Palgrave Macmillan; 2010) 339 pages Stephen Littlechild, ed. (1990).Austrian economics, 3 v. Edward Elgar. Description (http://www.e-elgar.co.uk/

bookentry_mainUS.lasso?id=682) and scroll to chapter preview links (http://books.google.com/

books?id=XoZXUkYGj-oC&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q&

f=false) for v. 1.

External links

Wikimedia Commons has media related toAustrian School.

Austrian School (http://wiki.mises.org/wiki/Austrian_School) at Mises Wiki

Austrian School (http://www.dmoz.org/Science/Social_Sciences/Economics/Schools_of_Thought/

Austrian_School/) at DMOZ
http://en.wikipedia.org/w/index.php?title=DMOZhttp://www.dmoz.org/Science/Social_Sciences/Economics/Schools_of_Thought/Austrian_School/http://www.dmoz.org/Science/Social_Sciences/Economics/Schools_of_Thought/Austrian_School/http://wiki.mises.org/wiki/Austrian_Schoolhttp://commons.wikimedia.org/wiki/Category:Austrian_Schoolhttp://en.wikipedia.org/w/index.php?title=File:Commons-logo.svghttp://books.google.com/books?id=XoZXUkYGj-oC&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q&f=falsehttp://books.google.com/books?id=XoZXUkYGj-oC&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q&f=falsehttp://books.google.com/books?id=XoZXUkYGj-oC&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q&f=falsehttp://www.e-elgar.co.uk/bookentry_mainUS.lasso?id=682http://www.e-elgar.co.uk/bookentry_mainUS.lasso?id=682http://ideas.repec.org/a/taf/revpoe/v24y2012i2p273-287.html


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Article Sources and Contributors 15

Article Sources and ContributorsAustrian School Source: http://en.wikipedia.org/w/index.php?oldid=617627255 Contributors: "Swine"Flu=StolenFarmland, $atan's$pawn, $oul$old, 0nullbinary0, 11wikiman11,213.122.236.xxx, 62.78.132.xxx, A.R., ATD, AaronS, AbsolutDan, Addshore, Adn1990, Adriansrfr, AdultSwim, AgarwalSumeet, Agbook, Ahkeeler, Akldawgs, Al E., Albericht, Alex Bakharev,Alfy32, AlphaRed3, Amadeus226, Amanski, Amritasenray, Anawasm, Andonic, Anna Lincoln, AnnaFrance, Anon4567, Antandrus, Anthon.Eff, ArableLand, Ariel., Arjayay, Arkuat,AsianWimp, Atethnekos, Auric, AustrianButOpen-Minded, Autopilot, Averros, Awesomeeconomist, BD2412, BanksAreGods, Bastin, BellCurveBlues, Benbest, Bender235, Bengalski, BigBrother 1984, BigK HeX, Bility, Binksternet, Bkwillwm, Bluemoose, Bob A, Bobblewik, BritishZombies, Brona, Bronx Discount Liquor, Brusegadi, Bryan Derksen, Bsadowski1, Bucketsofg,Budija, BuySilverKillTheBanksters, Byelf2007, C9900, Calion, Carolmooredc, Cedders, Cenarium, CharlotteWebb, Chetrasho, Childhoodsend, Chris Capoccia, ChrisGualtieri, Christofurio,

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Polisher of Cobwebs, Politician, PonziWasNotSuperman, PraxisConsensus, Premitive1, Professor marginalia, Psyoptix, PtAuAg, PyramidsOrFood?, QE2Infinity!, QueryEverything, R'n'B,RBrancusi, RG415WBFA, RJII, Radicalsubversiv, RafaelG, RafaelMinuesa, Rainbow Shifter, Ralthor, Ramehart, Ravensfire, RayBirks, Rdfuerle, Reaper Eternal, Reign of Toads, Remember,Revcasy, Revisor2011, Rich Farmbrough, Richard Ebeling, Rjensen, Rjwilmsi, Robertvan1, Robocracy, Romandebasement, Ron Paul...Ron Paul..., Rothbardanswer, Rusirious13,Rustydangerfield, Rvissers, SPECIFICO, Salon Essahj, Sam Hocevar, Samuel Marks, Sandstein, Santiago telom, Sardanaphalus, Satori Son, Scholastic Opponent, Scshute, Sean chile, SeekFind,Sfan00 IMG, Shadowthedog, Shirahadasha, Shrikarsan, SilverLongsWillBreakTheBanksters, Sirmont, Sitush, Skipsievert, Skomorokh, SlamDiego, Smartal, Smithdanj, Solid State,Somedifferentstuff, Sonofecthelion, Spartaz, Srich32977, Steeletrap, Stelian, StillStanding-247, Stirling Newberry, SturmTiger42, TAnthony, Tacitus Prime, Taion, Taonga99, TaxPaysParasites,Tbhotch, Teeninvestor, Template namespace initialisation script, Terra Novus, ThatProLibertyGuy, The Banner, The Four Deuces, The morgawr, TheElephant'sRoom, TheFreeloader,TheSolutionIsEvenMoreDebt, Thingg, Thismightbezach, Thomasmeeks, TimothyDon-HughMak, Tom servo, Topher.sg, Torkillbruland, Tparameter, Traxinet, Trey111, Trialsanderrors,Trovatore, TruthAndZealotryDon'tMix, TruthComesFromAGunBoat, Tucci78, Tuomas Toivonen, Twas Now, Ultramarine, UnrecognizedProphetOfDoom, Urewrong, User2004,UserAccount001, VMav92, Valentimd, Velella, Versageek, VeryVerily, Vision Thing, WahnF, WarningFinancialTsunamiAhead, WatchinTheTideRollAway, We'reFreakingDoomed!,WeOweItToOurselves, Weakopedia, WhyAreLeftiesAllZealots?, WhyMeLord?, Wikibofh, William Avery, Wingspeed, Winterus, Woohookitty, Wormbread, Wragge, Wyss, Xday, Xgoni,Yworo, Zachorious, Zawersh, Zenwhat, Zhen Jin, Zoicon5, ZombieBank, ed, , 834 anonymous edits

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