After more than 11 years of being in my watch later, I finally am watching this and taking notes. Never too late. Encouraging all of you who stumbled on this now or before to watch this in its entirety and take notes. It's amazing learning.
Political economists going back to Turgot and Smith taught that the rent of nature has nothing to do with individual production or even investment in capital goods. Rent arises out of the advantage experienced when the best locations (whether in farmland, in urban locations, in the broadcast spectrum or even takeoff and landing slots) are all taken and producers are left with locations with less natural advantage. Rent, they argued, is therefore that portion of wealth that belongs to all.
When economic theory fails to distinguish between nature and actual capital goods, forecasts of what is erroneously called the "business cycle" will be flawed. A few economists who embrace the Austrian theory of capital goods formation have learned this lesson. Fred Foldvary comes to mind. The key observation is that price is an ineffective market clearing signal for nature. Rising prices yield hoarding and speculation (and in the worst-case a leftward leaning supply curve). (continued)
Even though Austrianism is the most sensible school of economic thought, don't let yourselves become ideologically brainwashed. There are more to economics than just Mises, Menger, Hayek and Rothbard :P Or you might become a pariah among your classmates and tutors if you are studying mainstream economics that is
Oh, I bet there is so much more, but after reading Menger's book, I feel like I grasped a lot of understanding on the basics of how economies work, and I look at other books with a little more distrust. I think his work has so much room for expansion, and Mises only tapped into it.
The takeaway of Austrian economics is that humans can cooperate under a condition of freedom... the takeaway of mainstream economics is that humans are beasts that need to be directed by government.
After more than 11 years of being in my watch later, I finally am watching this and taking notes. Never too late. Encouraging all of you who stumbled on this now or before to watch this in its entirety and take notes. It's amazing learning.
This is by far the best explanation of the Hayekian triangle and Austrian Business Cycle theory I've seen.
I feel ten times better after watching any of these videos and reading the Mises daily.
Those slides are phenomenal!
I like this lecture better when he has the Model T Fords come popping out of the Hayekian Triangle.
Love Kevin MacLeod's score.
Political economists going back to Turgot and Smith taught that the rent of nature has nothing to do with individual production or even investment in capital goods. Rent arises out of the advantage experienced when the best locations (whether in farmland, in urban locations, in the broadcast spectrum or even takeoff and landing slots) are all taken and producers are left with locations with less natural advantage. Rent, they argued, is therefore that portion of wealth that belongs to all.
If all the explicit and implicit premises of the theory are empirically true, then a logical theory such as this is also empirically sound
So with our current monetary policy we are most likely headed for another collapse in the "near" future, given how low interest rates have been held?
knpstrr yes
yes pretty much
Smart Mise
When economic theory fails to distinguish between nature and actual capital goods, forecasts of what is erroneously called the "business cycle" will be flawed. A few economists who embrace the Austrian theory of capital goods formation have learned this lesson. Fred Foldvary comes to mind. The key observation is that price is an ineffective market clearing signal for nature. Rising prices yield hoarding and speculation (and in the worst-case a leftward leaning supply curve). (continued)
Even though Austrianism is the most sensible school of economic thought, don't let yourselves become ideologically brainwashed. There are more to economics than just Mises, Menger, Hayek and Rothbard :P Or you might become a pariah among your classmates and tutors if you are studying mainstream economics that is
Oh, I bet there is so much more, but after reading Menger's book, I feel like I grasped a lot of understanding on the basics of how economies work, and I look at other books with a little more distrust. I think his work has so much room for expansion, and Mises only tapped into it.
The takeaway of Austrian economics is that humans can cooperate under a condition of freedom... the takeaway of mainstream economics is that humans are beasts that need to be directed by government.
lol