Austrians often say that mainstream economists are systematically wrong (and corrupt, but lets leave that out of the question for now) my question to you is quite simple. Research institutes aren't profit maximisers in the narrow sense. On the other hand, firms are usually modelled as such, now, why don't firms employ Austrian economists? Presumably if Austrians have correct analysis more often than other economists firms would profit from employing them. So why don't they?
He's almost as generous in making broad, sweeping (baseless) assertions as you are. ;)
Freedom of markets is positively correlated with the degree of evolution in any society...
I'm not sure, but my guess is that a businessman's area of competence is not in evaluating economists. So he goes to people who are considered experts at evaluating economists, meaning top universities, and asks them to provide him with an economist.
So the question has changed to why do universities not recognize AE as being superior? And I think the answer is because they are paid by the govt to encourage those who believe the govt should spend spend spend and thus save the world.
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It's easy to refute an argument if you first misrepresent it. William Keizer
your confusing Austrians beef with economic theory vs the work that a economist AS A business person does!
No austrian (i think) would have problems with a econometrician using his model to try to predict demand for apples. What they have problems with is calling the prediction economic theory.
In regards to austrians predicting better. We are again talkbing about broad MACRO issues. IE an austrian might say "due to xyz i see the market crashing eventually (2,5, maybe 20 years). That is largly useless for business folks.
It is also better to be more specific...which economist in what position at which firm?
there is a long long list of "mainstream" economists with incredibly wrong predictions. the most famous I believe was Irving Fisher weeks before the crash of 1929 saying that the business cycle is a thing of the past and that there is nothing but prosperity for as long as the eye can see. let us not forget about the dozens of totally ridiculous predictions of the maestro amongst so many others
Be responsible, ease suffering; spay or neuter your pets.
We must get them to understand that government solutions are the problem!
EconomistInTraining:Presumably if Austrians have correct analysis more often than other economists firms would profit from employing them. So why don't they?
To ensure success/profit, first you must make sure you're in the minority.
Many reasons,
Read until you have something to write...Write until you have nothing to write...when you have nothing to write, read...read until you have something to write...Jeremiah
Mainstream economist = less risk of appearing wrong to the competition which also employs mainstream economists to judge market conditions. </thread>