Austrians have answers to pro-statist anti-freedom

The growth of the Austrian school has been nothing short of phenomenal. It is EVERYWHERE on the Internet where people interested in ideas gather to exchange views. Even those who are pro-statist and anti-freedom need to deal with the Austrians now. They need to deal with the concepts of Human Action and the acute analysis that modern economies are run into the ground on a regular basis by the central banking-fueled business cycle.
These two concepts, human action and the modern business cycle, are demolishing conventional wisdom about the economy. They are unstoppable truths that undermine the foundations of elite Keynesian economics the way water undermines the foundation of even the most impressive edifice.
It is the Anglosphere power elite that has painstakingly built up modern economics – and what a meretricious construct it is. At its heart lies the enormous lie that good, gray central bankers can fix the price of money on a daily, weekly, monthly and annual basis.
Of course, every price fix is a marketplace distortion, transferring wealth from those who earned it to those who didn't and are less well equipped to utilize it productively. Over time, this wealth transfer creates market bubbles and then ruinous depressions. We're living through one now.
Austrian economics is part of an economic conversation that goes back 500 years or more (in its modern evolution anyway). It was an Austrian that conceptualized marginal utility, the idea that prices are fungible at the "margin" and only the Invisible Hand can determine them.
The concept of marginal utility is the dividing line between the static "old school" of classical economics (think Malthus and Marx) and the dynamic "new" economics of the neo-classical school.
Interestingly, almost all reputable economists claim to be neo-classical now. But it's simply a rhetorical statement. The Germans and British reclaimed the stubborn, old classical economics with their reliance on econometrics.
Econometrics is the idea that one can predict human behavior if one applies properly complex equations to an adequate amount of data. Econometrics is applied throughout the world by governments large and small to justify new laws and regulations.
But common sense tells us that econometrics cannot work any better than any other kind of forecasting device. As soon as people experience the regulatory fiat, they will react and change their behavior. In fact, they will often change their behavior even BEFORE the laws and regulations are written.
It was the Germans who, when confronted with Austrian, free-market analysis, lost their collective temper and labeled the laissez faire school "Austrian" in contempt. But the original Austrians themselves adopted the name proudly as a badge of honor.
The reason that Austrian economics has swept the blogosphere is because it is the only school that tells the truth about the world. Most people in this world are apparently damaged in childhood and grow up wanting to control other people. Going into politics and writing laws is a good way to do this.
Austrian economics confronts these damaged people – who compensate for the lacunae in their own souls by attempting to control others – with the truth about their behavior. It is hard to tolerate exposure and powerbrokers often react petulantly to economic truths by attacking the messenger. This is why Austrian economics, as it grows ever more popular, is increasingly being attacked by low-level supporters of Anglosphere elite policies.
The Anglosphere itself – the top central banking families – are obviously involved in a campaign against Austrian economics as well. They are using sub-dominant social themes – fear-based promotions – to try to cast aspersions on the school.
Conclusion: Whether or not Goldberg has actually apologized for his initial statement, what cannot be denied is that Austrian, free-market economics is "sweeping the board." It is not doing so because it is somehow a backhanded elitist plot (a part of a larger dialectic) but because it provides people with something very rare in this world: The truth.
Daily Bell excerpt