Schools of Economic Thought Part 2: The Austrian Economists

As humans, we all have different needs, and our actions are always influenced by those needs. This idea lies at the heart of what we’d come to know as the Austrian school of economics. 

Unlike the classical economists from last week’s episode, Austrian economists like Carl Menger believed that value is completely subjective; that a product's value is based on its ability to satisfy human wants; and that if a product exists in abundance, it will be used in less-important ways.

In the second part of this three-part series, we take a look at the Austrian school of economics, the historical conditions in which it arose, its key ideas, and more.

Show Highlights

• [04:13] Recap of classical economics

• [07:02] The context in which Austrian economist Carl Menger found himself in

• [09:43] The first foundational idea of the Austrian school of economics

• [11:21] The second foundational idea of the Austrian school of economics

• [16:36] The third foundational idea of the Austrian school of economics

• [24:17] The fourth foundational idea of the Austrian school of economics

• [25:29] The fifth foundational idea of the Austrian school of economics

• [30:23] Praxeology: the methodology of Austrian economics

• [35:39] Criticisms of the Austrian school of economics

• [44:38] The relevance of the Austrian school of economics today

Links and Resources

🟢 Schools of Economic Thought Part 1: The Classical Economists → tinyurl.com/s01ep66

🟢 Vikings and Muses Podcast → tinyurl.com/vikingsandmusespodcast

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