Saturday, June 25, 2011

Sandeep Jaitly on the Austrian School of Economics

Here's a fascinating Max Keiser interview of Sandeep Jaitly. Jaitly clearly gets that the equations used by mainstream economics are a fraud. One note, Keiser tries to tie Austrian economics in a bit with Freud. This is inaccurate in that Austrian economics starts with the idea that man acts and has goals, but does not delve into the question of why man has goals. You can understand the full theory of economics without requiring an understanding of psychology. In fact, as far as economics as a science goes, psychology has no role. Psychology is an entirely different subject. Economics and psychology have a very distinct boundary.

As far as behavioral economics, that is more psychology than economics and is thus misnamed.


  1. Max Kaiser drinks from the Global Warming punch bowl.

  2. Hmmm, having discovered that I share much with Austrian economics at heart (as any anti-fascist, anti-imperialist economist would), your seemingly blanket rejection of human motivation and desire from the field is puzzling.

    It would be interesting to hear more on this subject, or perhaps you could point me to other sources to explore the Austrian school's rejection/exclusion of these elements from their thinking.


  3. Anon @ 9:47

    Please see Appendix A of Man, Economy, State by Rothbard.