Austrian Economics vs. Keynesian Thought: A Historical Perspective

Austrian economics is presented as a continuation of a long-established tradition rooted in historical philosophical thought, tracing back to figures such as Plato and Aristotle. It emphasizes the understanding of human decision-making within the constraints of scarcity. Contrastingly, Keynesian economics is depicted as a distortion of true economic principles, perceived as a justification for government interventions and inflationary policies. The critique highlights that Keynesianism serves the interests of those in power, enabling economic theft through inflation. It argues that inflating the money supply does not add value but redistributes purchasing power, often benefiting those who receive new money first at the expense of others. This approach is characterized as unscientific and pseudoscientific, suggesting that Keynesian arguments are constructed to support predetermined conclusions rather than derive insights from sound economic reasoning.