Author Topic: Austrian economics explained by Senior Fellow (Mises Institute) Robert Murphy  (Read 220 times)

PipMeHappy

  • Sr. Member
  • ****
  • Posts: 327
  • Likes: 128
Watch from 9' to 19'



I have been a follower of Austrian economics for a few years and
like to let others know what it is all about :)


Caesar

  • Administrator
  • Hero Member
  • *****
  • Posts: 630
  • Likes: 142
  • Gender: Male
  • Admin
    • NotTheNoobs
Mmmmm. So, they think markets should set their own price based on supply and demand and government policy should never interfere. What happens when a company has a monopoly position, for example on a covid vaccine?  Can they set their own price, as high as they wish even if that effectively locks people out of affording it?  Do Austrians not consider the societal impact of their policies? Do they allow for higher taxation of things like cigarettes to discourage people from smoking?
Hail Caesar.
No, just a bit of rain

PipMeHappy

  • Sr. Member
  • ****
  • Posts: 327
  • Likes: 128
Hi @Caesar  thanks for that...Maybe you could ask Murphy himself.

The issue you raise would indeed be with the government, which sets fiscal policy and taxation: Austrians object to the Fed's current monetary policy, so we should maybe differentiate between government (= Congress) legislation on the economic wheels of a nation state and a central bank's mandate which should not be to artificially coherce the economy through issuing unlimited liquidity.

Austrians are particularly concerned with central banks' money essentially being accessed first and foremost by speculators of the higest order who use it as a safety net to increase their capital exposure to further gains while the second-tier beneficiaries (i.e. the public at large) do not really see the benefit from that injection into the credit system.

I hope I explained it in plain English...

PipMe
« Last Edit: October 08, 2020, 10:49:02 PM by PipMeHappy »

Caesar

  • Administrator
  • Hero Member
  • *****
  • Posts: 630
  • Likes: 142
  • Gender: Male
  • Admin
    • NotTheNoobs
Thanks PipMeHappy.
 I have to admit, I only watched the portion of the video that you suggested so may not have grasped the whole concept.
Thanks for your explanation.
Hail Caesar.
No, just a bit of rain



Caesar

  • Administrator
  • Hero Member
  • *****
  • Posts: 630
  • Likes: 142
  • Gender: Male
  • Admin
    • NotTheNoobs
I tend to agree.
Stockmarkets reflect the fortunes of a number of large companies rather than the economy as a whole.
Sure, when the economy is struggling as it is, some of these will see revenues fall but often this is offset by overseas revenues (global pandemic is an exception) or by currency fluctuations in their favour, not to mention stimulus packages which usually take the form of lower interest rates, corporation tax cuts, etc.
Then, of course, there companies whose business benefits in these times such as the online retailers are doing now
Hail Caesar.
No, just a bit of rain

PipMeHappy

  • Sr. Member
  • ****
  • Posts: 327
  • Likes: 128
Agree with you 1 zillion %