Thursday, October 22, 2009

 

Does Austrian Economics Just Need a Name Change?

For a while I've thought Austrian economics just needs a new name. Arnold Kling got way more thoughtful reaction to his "recalculation argument" against stimulus spending, even though (as he himself acknowledged when he first unveiled it) his story and Austrian business cycle theory are almost identical once the bust ensues. So it seemed that the very name "Austrian business cycle theory" was an albatross around the neck of the particular set of ideas. (That, and the fact that some of the Austrians pushing it are fairly annoying.)

And then Stephan Kinsella relays this anecdote about Tom Woods' debate with ING Chairman Tom McInerney (HT2 Bob Roddis):
McInerney had mentioned that Bernanke was a diligent and knowledgeable student of the Great Depression. So, when it came time for the Q&A, one audience member asked Woods to briefly explain the Austrian view of Great Depression and how it might differ from Bernanke's view. After Woods did this, McIerney took the stage, and as if he were about to unload a devastating blow against Woods, said to him, "this might seem like a bit of an attack. Don't take it too personally." And then.... he began to rant about ... the relatively small size of the country of Austria. I kid you not.

Some audience members began to laugh; others cringed, as McInerney dug his hole deeper while under the illusion that he was unleashing a deadly zinger. Woods kept trying to stage whisper that Austria had nothing to do with the school of Austrian economics, but McInerney, undeterred, plowed on. Thus, when Woods took the stage he said, "this might seem like an attack, but don't take it too personally..." And then Woods commented that we may as well say we shouldn't listen to Milton Friedman, since the GDP of Chicago is pretty low.
It's even worse than the above suggests. Someone in the comments of Stephan's post said:
I was there as well and unfortunately there was no video camera that i am aware of, so no video. But the above story is 100% true; one could feel the collective cringe when McInerney was spouting off about Austria. And it wasnt short. He spent a good 5-7minutes in his diatribe, trying to get audience participation by asking "Does anyone know the GDP of france...How about Italy....and austria...." It was very sad because people were snickering and he had no idea it was at him.
So that settles it, we need a new name. I suggest "reality-based economics." Who could possibly oppose that?*

* Yes I am kidding.



Comments:
Whenever I mention that I am a fan of Austrian economics, some dim wit usually asks, "Isn't Austria full of a bunch of socialists?"
 
Maybe that's because you surround yourself with dim wits?
 
Once I actually had someone reply, "Wasn't Hitler from Austria too?"
 
Nothing to do with economics, but when I studied in Vienna, a fellow American student admitted she had signed up for the program thinking she was going to the place with kangaroos and koalas. Yep--a college student.

There does need to be a more descriptive name that can be immediately understood. Or at least "Hayekian"? Exploit that Nobel for whatever it's worth anymore.
 
Mises didn't refer to himself as Austrian did he? He talked about Modern Subjectivist Economics, right? That sounds a bit less interesting in my opinion.
 
Extra-empirical economics? Pure synthetic economics?
 
Bob,

Reality is relative. Reality-based economics will never work, especially because it'll just be used by the rich to exploit the rest of us.

I had a debate in a friend's living room with a fan of the Chicago school. I spent about fifteen minutes explaining the fundamentals of Austrian economics (which he had never heard of) and then realized I had just completely wasted my time when he explained to me that he wasn't interested in old-school, continental European economic theory because all the good stuff was being done in America these days.

Ugh. Ugh ugh UGH!
 
Some people suggest "market process economics" don't they? I am sorry, but that sounds like some kind of processed food..."Austrian Economics" sounds sophisticated, elegant even... and I am proudly of Scots background, no Austrian blood that I know of...(and yes, yes, yes, I know that there are few if any Austrians in Austria today...)
 
And anyway, changing the name would probably be confusing for everyone. Let's face it, the school already has enough p.r. problems as it is without adding a name change to the list...
 
Let's be honest here, there are plenty of self described Rothbardians who manage to know even less than that about mainstream economics or Keynesian economics (or Austrian economics, at that).
 
I suggest Awsenomics or alternatively the ultimate power school of economics.
 
Baffle 'em with BS, I always say (it seems to work for Yglesias and Krugman -- and Tyler Cowen).

Just always translate "Austrian School of Economics" into German, never forgetting the umlaut.

Österreichische Schule der Volkswirtschaft.

Americans just love long German words. Plus, no one will ever confuse Österreich with Australia. Or will they?

Or how about "The Motor City School of Economics" with the slogan "Learn it, or we'll kick your ass".
 
Haven't Joe Salerno and Peter Klein already started calling it "causal-realist" economics?
 
"I suggest Awsenomics or alternatively the ultimate power school of economics."

Best comment of the day!!!! ROFL

I second the name change!
 
disaggregated economics?
structured capital economics?
 
Post a Comment

Subscribe to Post Comments [Atom]





<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]