We live in a world dominated by Keynesian
economics. Since 1936 when John Maynard Keynes wrote his famous book, The General Theory of Employment, Interest and Money
, most all of our universities here in the United States, from Harvard on down, have become vested in this way of thinking. Consequently, our nation’s government now fully endorses and mandates, this way of governing our monetary economic system.
Since the 2008 financial crisis, an older and much more classical school of economic thinking has re-emerged and is growing in prominence. Originating as early as the 1500s in Salamanca, Spain this branch of knowledge was best articulated in book form by Austrian Carl Menger in his 1871 classic, Principles of Economics
. This discipline of study has come to be known as Austrian Economics.
Two of Menger’s star disciples, Ludwig von Mises and Friedrich A. Hayek (who won the Nobel Prize in 1974) developed the now famous Mises–Hayek Business Cycle Theory
, which best explains the causes and effects of economic booms and busts in an economy. While Wall Street, the media and Washington D.C. had no idea what happened during the financial collapse in 2008, the Austrian’s had predicted it all along.
The Austrian School is universal, but when Mises migrated to the United States in 1940, the U.S. became the school’s central headquarters and home. Today, there are many American born Austrian economists and students of this discipline, with some of the more famous being Leonard Read, Henry Hazlitt, Murray N. Rothbard and more recently, Republican presidential candidate, Ron Paul.
While Keynesian economics endorses government central planning, the Federal Reserve’s control of money and banking, deficit spending and opposition to savings in order to solve economic problems, the Austrian school advocates the direct opposite.
Espousing frugality and savings as what actually fuels capital investments; Austrian economists and students of the school preach the sanctity of private property, a market economy free from government intervention, sound money and the return of money and banking to the private sector.
The principals and associates of CCC Corporation are students and supporters of Austrian Economics. For in depth articles, teaching videos and explanations of current economic events from the Austrian school perspective visit this website often.