Opinion of the Austrian School

[TheDeadFlagBlues]

The Austrian School of Economics bears no relation to academic economics or social science. It also resembles a cult more than it resembles a school of thought.

[TheDeadFlagBlues]

The Austrian School of Economics bears no relation to academic economics or social science. It also resembles a cult more than it resembles a school of thought.

>Has no idea what he/she is talking about^

I'm actually quite certain of this. I'm not a scholar of Austrian economics but it's my understanding that Austrian economics rejects empiricism and relies only theories that it derives from logical axioms. This bears no relation to academic economics or social science, both of which rely upon rigorous empirical methodologies designed to test various social scientific theories. Inductive reasoning plays an important role in academic economics and Austrian "economists" reject this approach on the grounds that data is "subjective". That isn't an assertion accepted by any social scientific scholars, who believe that rigorous methodology and natural experiments provide sufficient grounds for revising, rejecting and proposing theory.

Even in its primitive years, economics was a data driven and empirical discipline. Scholars of political economy might have used rudimentary methods but they firmly believed in relying upon observation to make assertions about economics. Rejecting empiricism is effectively rejecting economics. Austrian economics isn't economics, it's shoddy philosophy. It resembles a cult or a religion because there are no grounds for disagreement among Austrian "economists". If I say that counter-cyclical fiscal policy has a demonstrable effect on output, Austrian "economists" would say that fiscal policy creates recessions and I'd reply that there are many instances in which price fluctuations exist without the presence of any state and reference the findings of behaviorists. Austrians would have no response: I'd be wrong because I rejected the internal logic of their cult. This hypothetical is no different than a Biologist attempting to have a conservation with an Evangelical Christian.

[TheDeadFlagBlues]

HS, insofar as its adherents cling to archaic, classical liberal interpretations of individual freedom and human rights.

Austrian economics has nothing to do with either of those. It's possible to adhere to the Austrian School and support a central bank, for example. You just need to believe that boom/bust cycles are a good thing.

"Creative destruction" isn't a tenet of Austrian economic thought.

[TheDeadFlagBlues]

People who argue that the Austrian School is just sociology are all basing their remarks on the lack of econometrics in Austrian economics. Math does not accurately predict the future or provide consistent economic forecasting.

Lack of math does not make economic theory something other than economics.

Econometrics is not primarily used as a forecasting device; it's primarily used to observe the relationships between various economic variables, to verify the veracity of theory and to formulate new theories. Every economics department in country requires students to have a proficient understanding of econometric tools, methods and uses. Econometrics is nothing more than applying statistical tools to the study of economics. Without empirical methodology underpinned by data, social science ceases to a science.

[TheDeadFlagBlues]

Not sure why austrian econ is bad because of no math.

The Austrian's School rejection of empiricism and its general rejection of mathematics doesn't make it "bad". It just means it has it's not Economics, which is a social scientific discipline.