Thursday, March 12th, 2009
Flashback: Atlas felt a sense of dÃƒÆ’Ã‚Â©jÃƒÆ’Ã‚Â vu
George Washington’s Blog
March 12, 2009
Barron’s is finally admitting what few in the mainstream have been willing to acknowledge: the Austrian school of economics was right.
The Austrians have been saying for well over a hundred years that big bubbles lead to big crashes, and that – if you want to avoid depressions – you have to avoid the bubbles.
In today’s article, entitled “Ignoring the Austrians Got Us in This Mess”, Barron’s agrees:
The credit crisis and the ensuing global economic contraction have failed to make an impression on academe, where free-market orthodoxy still reigns supreme, the New York Times asserted in an article in arts section recently (“Ivory Tower Unswayed by Crashing Economy,” March 4.)…
What definitely is ignored in academe is the Austrian school of economics, especially for baby boomers brought up on Samuelson’s economics text, which was pure Keynesian orthodoxy. I did not learn the names von Mises and Hayek or their ideas until a decade or more after graduation (with a degree in economics, by the way.)