A Beginner’s Guide to Austrian Economics

Posted by Kittyhawk 9 years, 5 months ago to Economics
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From the article:

The “Austrian School” of economics grew out of the work of the late 19th and 20th century Vienna economists Carl Menger, Eugen von Bohm-Bawerk, Ludwig von Mises, and Friedrich Hayek (though of course Austrian School economists need not hail from Austria). Austrians focus strongly on the analysis of individual human action. This is known as praxeology, the study of the logical implications of the fact that individuals act with purpose, from which all economic theory can be deduced. Austrians also note the correlation between greater economic freedom and greater political and moral freedom. This in part explains why Austrian economics is the intellectual foundation for libertarianism. Austrians rightly attribute the repeated implosions of mainstream Keynesian economics to the latter’s focus on empirical observations, mathematical models, and statistical analysis.


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  • Posted by edweaver 9 years, 5 months ago in reply to this comment.
    I'm glad you got into this lengthy discussion. I got to learn things I have never thought about. :)
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  • Posted by 9 years, 5 months ago in reply to this comment.
    Force is appropriate in self-defense, of course. That's where the private police service or hiring bodyguards comes in - or the DIY method of learning martial arts, and/or owning guns, weapons or guard dogs.

    But your proposed scenario (which I addressed) was a property dispute between friends, not someone squatting in your house or raping and pillaging. In the type of situation you initially raised, it could be handled much more efficiently by private insurance and arbitration services, as opposed to the current monopolistic police and court system.

    When force is used against me, who exactly has the right to self defense - strangers representing the State, or me? Of course, it's me. If I own the right, shouldn't I have the right to either exercise or delegate it as I wish, rather than the State monopoly usurping my right?

    The police and courts today will not protect us from assault, rape, or real property theft; the most they will do is sometimes find the guilty party and arrange some type of compensation long afterward (and sometimes not). If you think the police exist "to protect and serve," read about Joe Lozito bring stabbed by a serial killer while the police watched from safety, and then read about the Supreme Court decision that specifically said police have no duty to protect citizens.

    A private police or security force could have all of the powers of the current State police, if we the customers wanted that. The difference would be that the private police would actually have specific contractual and moral justification as a person's chosen agent for self defense.
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  • Posted by dbhalling 9 years, 5 months ago in reply to this comment.
    Right. Robbie you are not interested in logic Kinsella is an anarchist. His idea of property rights is based on the flawed idea of scarcity. I know more about Kinsella's positions that you will know in a lifetime
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  • Posted by Robbie53024 9 years, 5 months ago in reply to this comment.
    If you're really interested in learning about this, you might spend and hour or so reading this paper - http://www.stephankinsella.com/wp-conten...

    Some here are going to rail against it (particularly those who derive their livelihood from the current system), but it presents some interesting arguments.
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  • Posted by dbhalling 9 years, 5 months ago in reply to this comment.
    No laws are not about consensus, they are about logic. All valid property rights are the result of the fact that you own yourself and therefore own those things you create.

    Absolutely, Patents are part of natural rights. Natural Rights start with the fact that you own yourself and therefore you own those things you create. John Locke. Locke's ideas of Natural Rights were incorporated into US common law by Sir William Blackstones Commentaries on the Law. Blackstone is clear that both patents and copyrights are founded on this basis.
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    I am simply responding to your statements. The number of years is procedural. I am in agreement it doesn 't make sense. I said the number is more in line with other countries. This is for copyrights which are treated differently than patents whose time period is significantly shorter. All property rights have a moral basis, including IP rights.
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  • Posted by plusaf 9 years, 5 months ago in reply to this comment.
    and, db... one point of view (mine) is that pretty much ALL of what we consider our Body of Laws has its roots in Consensus among members of the society or culture by enough of them getting together to agree to state the laws, abide by them and create legal and police frameworks in order to Enforce Them!!

    Government can't 'stop' someone from stealing my corn or my invention, but the Legal System can, out of consensus, create process and mechanism to punish someone (or some organization/corporation) who/which has been proven in a court of law to have broken Those Rules (established by Consensus)!

    Are you hinting that copyright and patent laws spring from some sort of Natural Law?!

    Interesting....
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  • Posted by plusaf 9 years, 5 months ago in reply to this comment.
    Thanks, Robbie... I didn't know that. That explains a lot. I'm trained as an engineer... whole different thought process... :)
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  • Posted by plusaf 9 years, 5 months ago in reply to this comment.
    Thank you for assuming that I know nothing about IP rights. I'm not a patent or copyright attorney, but I've looked into and thought about some of the issues. Do I need a Degree in the subject or some other letters after my name in order to comment?

    And as for your 'legal procedural' comment, do you recognize that most 'legal' decisions are rooted in 'moral arguments' on the self-same subjects?

    As I've noted in my Laws and mentioned here many times, 'you can tell when someone has run out of logical arguments for their side of the discussion when they flip the issue into a "Moral" one.'

    Same thing, if you can see it... And your point on corporate rights bears the same burden of proof... where is the "logic" of choosing '100 years' as the sunset time for corporate copyright? That's often called 'favorite number' effect. It is an arbitrary choice, though usually 'founded' on some kind of Consensus, which, in addition, is not == Truth.

    And Happy New Year to All!
    :)
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  • -1
    Posted by Robbie53024 9 years, 5 months ago in reply to this comment.
    So, you agree that being called a lawyer is a slight?

    Happy, healthy and prosperous New Year to you and db in any case.
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    this is for lesser remedies. If I come squat in your house while you are away and you come back to find me in your home-what is your remedy? That is force and your remedy is weak. What about assault? seriously-I show up and rape and pillage and take off. You shuffle insurance papers. this is fiefdom 101 stuff
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  • Posted by 9 years, 5 months ago in reply to this comment.
    If one party refused to abide by an arbitrator's decision, there are consequences short of force which can be applied. For instance, that person may find himself or herself dropped from arbitration insurance coverage, while the damages are paid by that individual's insurance company as a cost of doing business. The lack of insurance would then hurt the person in business and personal dealings.

    If you wish to call privately paid arbiters and police "government," you are free to do so -- but there is a big difference. If you don't believe you have received valuable service from your private service provider, you can cancel your contract and choose another provider. You can't do that with government, and that monopoly leads to abuses of power, lack of accountability or innovation, and inefficiency. Hiring any type of private service is voluntary and respects the individual's rights, while funding the government is done by force.
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    This is an important point in defining the Role of the State. Whether you agree to privately contract security, mediation, courts, etc. the end result is always that there is the threat of force behind your rules. Two people , who are otherwise good friends, can disagree about property (any property). But if the mutually agreed upon arbiter sides with one person and the other refuses to acknowledge the decision-where are you? Even if the arbiters or police are privately paid for the threat of force if someone violates property rights (enforcement) is present. The society sanctions it and therefore, it acts as a government. Anarcho libertarians want to ignore this point, but it is pertinent to any discussion of intellectual property rights and capitalism.
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    you are anti-patent. It is not an Objectivist position and it's frustrating when we agree on much else. Your statement above about Disney is emoting and also incorrect. Copyrights do not go on forever. For an individual it is life plus 70 years I think. For a corporation it is 100 years. I would disagree with copyright law, because property rights should be constrained by one's life. Dead people can't own stuff. and Corporate assets change hands along the way as well. This is legal procedural stuff though, not a moral argument for intellectual property rights which is what you bound together in your statement above.
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    actually I wasn't even thinking about shipping. I was thinking about dissemination of technology. Societies generally don't prosper from trade secret. We went almost 2000 years to "re-discover" cement. I am also thinking about chinese inventions that the western world had to "re-discover." Re-inventing the wheel. In our modern world, those countries with the strongest patent systems have the most dissemination of technology. and the reverse is also true. Your first comment strikes me as odd. Most in here know I am a strong supporter of entrepreneurs.
    To your last statement. copyrights vs patents. They are completely different standards. While I disagree how we changed our copyright laws, they were done in such a way to "harmonize" with the rest of the world. This is a concept I disagree with.
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  • Posted by 9 years, 5 months ago in reply to this comment.
    You said, "Today, communication and the ability to copy are so ubiquitous that IP protection is moot." I think you may be right, it's nearly an honor system today to buy the CD or DVD instead of getting it free online. I hadn't delved into the issue of IP in many years, but there are a lot of interesting ideas here for compensation without the need for government: http://wiki.mises.org/wiki/Without_Intel...
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  • Posted by plusaf 9 years, 5 months ago in reply to this comment.
    Well, that felt kind of rude...

    But thanks for your constructive criticism, knowledge and information-sharing and willingness to help educate me...

    (---not)
    Oh, wait... your comment was an abject ad hominum, wasn't it?
    Thanks, and Happy New Year to you, too.
    :)
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  • Posted by dbhalling 9 years, 5 months ago in reply to this comment.
    Which means he did not understand property rights The US and the industrial revolution were not built on Mises ideas but Locke's and Natural Rights
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  • Posted by khalling 9 years, 5 months ago in reply to this comment.
    give two groups of engineers the same problem they come up with different solutions. second, your points have nothing to do with moral basis in intellectual property rights-it's a utilitarian argument. smells of anarcho here
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  • Posted by Herb7734 9 years, 5 months ago in reply to this comment.
    That's true. All the more reason to learn a capitalism style free market economics system. I cannot imagine a socialistic economy coupled to the Constitution.
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