So I know a thing or two about mainstream economics (I have a bachelor’s degree in econ) and also Austrian economics (I’ve been learning it in bits and pieces for several years or so). I’m definately convinced that the Austrians have it correct. Of course, having neither a PhD in Keynesian-based econ nor in Austrian/Classical-based econ, I can’t weigh in with utmost certainty.
Having said all that, however, the current economic situation seems to me to be something out of some kind of horror film written by an Austrian. Every day the federal government announces some new behemoth “stimulus” policy, which of course extends the dead hand of government successively further into the economy, and yet the economy continues to sink lower and lower.
They say of Japan’s “Lost Decade” that the problem was not lack of Keynesian stimulus, but that the stimulus wasn’t enacted swiftly enough. And they are 100% certain of this conclusion. And those drawing this conclusion occupy the highest ranking economics positions in our society. How on earth can this bizarro world continue? How possibly can this be the BEST our society can muster for itself? Think of the COUNTLESS wasted intellectual resources which are continually and ceaselessly freely given over to the great Keynesian myth. It IS nothing but a tissue. It’s a vapor. Yet, practically speaking, no one recognizes it as such. We are a nation of sheep indeed. “Groupthink” is not some intellectual novelty.
I hope that someone or some group of Austrians is preparing themselves to take up the mantle when/if this economy finally does fall to pieces and people are perhaps ready to listen to something different from the upside-down and truly devastating Keynesian fallacies.
Thanks for your indulgence.