In this module, you will learn the basics of Austrian economics, such as human action, subjective value, and spontaneous order.
What Austrian Economics is and What Austrian Economics is Not by Steve Horwitz:
The Foundational Difference Between Austrian Economics and the Mainstream by Paul Cwik:
- Only individuals choose.
- The study of the market order is fundamentally about exchange behavior and the institutions within which exchanges take place.
- The “facts” of the social sciences are what people believe and think.
- Utility and costs are subjective.
- The price system economizes on the information that people need to process in making their decisions.
- Private property in the means of production is a necessary condition for rational economic calculation.
- The competitive market is a process of entrepreneurial discovery.
- Money is nonneutral.
- The capital structure consists of heterogeneous goods that have multispecific uses that must be aligned.
- Social institutions often are the result of human action, but not of human design.