39 sats \ 10 replies \ @Rothbardian_fanatic 13 Nov \ parent \ on: Wanted: Critics of Austrian Economics econ
I think some of the Austrians, for instance, Robert Murphy, do use some of the same methodological tools as mainstream economists. If you read his articles and theses on time preference and the natural rate of interest, you can see the mathematical tools of mainstream economists being used. Hayek also uses mathematics to demonstrate some of his various ideas.
I think the problem may be that Austrian economics comes to vastly different conclusions on the ordering of society for the optimum results for everybody. They deny that the state has a role to play in the economy that is benevolent, decent or even useful. Mainstream economists find that anathema because they are court jesters.
I wonder if it really just boils down to what you think of the state's role in correcting so-called market failures.
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It could if you were willing to let the state interfere in the market. Austrians generally say that there are no market failures, only state-interference-in-the-market failures.
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What would Austrians call an externality if not a market failure? And how would Austrians respond to the idea that markets presuppose enforceable property rights, and that a state is needed to enforce property rights?
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They deny the state is needed to enforce property rights. They presuppose enforceable property rights but who does the enforcing may be where they differ. Externalities are not market failures according to the theory. Externalities are enforced on the market by the state’s interference. After all, a tort is a tort unless protected by the state.
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I think this is where I would differ. Historically, I just don't see much precedence for functional markets that weren't in some way backed by state enforcement of property rights. It seems like a utopian vision to think otherwise.
And I don't think I understood your point about externalities. What is the Austrian solution to a factory that dumps pollutants into a river upstream of a village?
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Iceland had no state but had property for about 1,000 years. Property rights were enforced by society in general.
Sue the bastards!!! A tort is a tort is damage done to someone else. Lawfully you can recover damages done to you.
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Doesn't a lawsuit presuppose a court of justice which presupposes a state?
Maybe we are defining state differently. "Enforced by society in general" sounds a bit like a public entity of some kind
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No it doesn’t. Common Law courts are not state driven. Courts of justice came before the state.
Enforced by society in general means enforced by the individuals in that society. No public entity needs exist.
One point here is that Austrians don't view deviations from a hypothetical equilibrium as a market failure. They would say something like "You're definition of market equilibrium was based on faulty assumptions."
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