My name is Sam. I have beginner knowledge in economics. I took a course in microeconomics last spring and thoroughly enjoyed the course. A close friend of mine talked to me about Austrian economics and it has intrigued me.
I would like some help on several things:
Where do I go / start to get the nuts and bolts of Austrian economics?
How can I learn to put the new ideas of Austrian economics into action? Getting to know the theory and understanding is one thing; putting theory into action is where I learn the best.
If you have any tips, advice, etc for a new person please feel free to share.
I can answer as a very beginning noob. i found the book Economics in One Lesson, by Hazlitt, really opened my eyes. It’s available in online form free, maybe they have a pdf on this site or even an mp3 of the book.
I found the mp3 library they have here to be excellent. I’m the type that can absorb at most one new thing at a time, and only if stated in language a third grader can use. i also really enjoy and was enlightened by the podcasts at lewrockwell.com. They are short, about one topic at a time, and usually explain things very clearly [and passionately].
The video here about the Fed also gave me real clarity about what the fed is up to, to an extent. I didn’t grasp such details as for example how the fed buys bonds from the banks etc, but the big picture became very clear.
I’d probably suggest that investigating praxeology would be your best bet. Which is really the nuts & bolts of the Austrian School. It is the correct methodology. It is what the entire science of economics should be built on. It’s the solid foundation, whilst the mainstream is made of straw (hence it is crumbling) / it has the wrong epistemology.
Check out; Mises Media & Mises Literature. What are you interested in really? Philosophy? Economics? Political Economy? Lot of choices here. [:)]
If you have an mp3 player, best bet is down load what you’re interested in and in the car, where ever, listen to it. Works well.
I am interested in economics mainly. To be more precise I am interested in applied economics. Theory is great, but I want to learn a theory, thought process, business cycle that I can use.
I am not sure if that gives any clarification.
I learn best by this process:
learn basic theory, equations, processes, etc
Put into practice learned in 1 and see if I can apply it in numerous ways
Learn advanced subjects/ ideas/theories
Follow step 2
…and so on
Please forgive my rigid structure. I have ADD, and I have found that it helps me when I write out what I would like concisely.
Here is a possible scenario…
I get a part time job at a finance firm. I learn an aspect of a theory / process and would like to put it into use. I am assuming that since most markets are complex that applying rudimentary theory and processes may not be beneficial in the least.
Smiling Dave and Liberty Student thank you for steering me in the correct direction.
Austrian economics is mostly theory. The easiest way I found to learn it is reading the following.
Theory:
Economics in One Lesson (PDF) (234 pgs) (Henry Hazlitt, Economist)
The Austrian Theory of the Trade Cycle (PDF) (111 pgs) (Ludwig von Mises, Gottfried Haberler, Murray N. Rothbard, Friedrich A. Hayek) What Has Government Done to Our Money? (PDF) (112 pgs) (Murray N. Rothbard, Ph.D. Professor Emeritus of Economics)
Applied:
America’s Great Depression (PDF) (368 pgs) (Murray N. Rothbard, Ph.D. Professor Emeritus of Economics)
Ah, thank you for the files. I will read through them this week. I’ve heard how Austrian economics has been very accurate calling market conditions. I just wonder why people don’t put Austrian theory to work.
Does mathematics ever help when it comes to Austrian theory?
In certain circumstances, such as showing how quantity of money affects purchasing power, cerebus perebus.
But keep in mind that it doesn’t use it improperly to the extent that many economists do, such as using calculus on supply/demand graphs when there are only a finite number of points (because people don’t set prices to the infinitely divisible unit).
The first thing you can do is to be involved in a community focused on Austrian economics. (Which you have already completed). It might also be worth investigating if there any book clubs in the area that focus on Austrian economics. You never know. There might be one near you.
I would also suggest one of the books mentioned above “Economics for Real people”.
I think this is something you can only discover for yourself. But of course you could read books that apply Austrian Economics to current affairs.
i.e Meltdown
Be polite, stay on topic and have fun. And don’t be afraid to ask no matter how stupid or silly a question might seem.
A Note On Mathematical Economics (Murray N. Rothbard, Ph.D. Professor Emeritus of Economics)
Logical Economics vs. Mathematical Economics (Gene Callahan, Professor of Economics)