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« Business Strategy for the Economic Recovery | Main | Green Shoots in China: Signs of a Recovery »

September 06, 2009


Laurence Hunt


I followed the link, and added this post re the discussion concerning the Austrian School. I'm fascinated that people are so fearful of the Austrian model, and so commented as follows:

I'm a psychologist. What I notice is that the Austrian School is distinguished from the mainstream by not telling listeners what they want to hear. Psychologically, that is usually a positive, if contrary indicator. In brief, the Austrians leave interest rates to the free markets and oppose all central banking. The upside, in my view: central banks consistently punish savers, and saving is the source of capital investment. So in the present environment, malinvestment continues to abound. Consider John Mauldin's recent discussion of the only booming sector in the present US economy: Federal jobs! In an Austrian world, the only booms would be in sectors favoured by the investments of savers.

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