The Austrian School of Economics: A Critique
27 June 2017 | Pago Pago, American Samoa
As the author states, still and notwithstanding anything else, you can usually spot free market conclusions lurking in the background of Austrian work, and this raises important questions about how policy implications are influencing the development of theory. For example, is it possible that the need to justify free market policies distorts Austrian research? This is the argument made in a new collection of essays edited by Guinevere Nell, titled Austrian Theory & Economic Organization.
Nell claims that contemporary Austrian economists focus on doing research that they know will arrive at “mandatory free market conclusions.” Thus, according to Nell, their work is more about ideology than methodology, and any research questioning free market orthodoxy is shunned and dismissed.
According to Nell, the Austrian status quo needs give way to a more unbiased “post-Austrian” approach to economics, especially in organization theory (the focus of this collection). Most of the chapters are consistent with her goal of developing Austrian ideas without concern for making them fit free market conclusions.
This book is an insight on the struggle the Austrians should undertake to rid themselves of ideology and return to economic analysis and the mainstream. But it certainly won't happen tomorrow, if at all.