Wednesday, February 20, 2013

The cult of Austrian economics

Fine Austrian Whines

Paul Krugman's blog, NYT

Andrew Leonard:
There's a lockdown on the Wikipedia page for Austrian economics and wouldn't you know it, one or way or another, it all seems to be Paul Krugman's fault.
For more detail, you can go, of course, to the Wikipedia page for Austrian economics. But until at least Feb. 28, if you do so, you will find that the page "is currently protected from editing." An "edit war" has been raging behind the scenes. Two factions were repeatedly deleting and replacing a section of text that had to do with a description of a critique of Austrian economics made by economist Paul Krugman.
Substance aside -- not that substance isn't important -- Austrian economics very much has the psychology of a cult. Its devotees believe that they have access to a truth that generations of mainstream economists have somehow failed to discern; they go wild at any suggestion that maybe they're the ones who have an intellectual blind spot. And as with all cults, the failure of prophecy -- in this case, the prophecy of soaring inflation from deficits and monetary expansion -- only strengthens the determination of the faithful to uphold the faith.

It would be sort of funny if it weren't for the fact that this cult has large influence within the GOP.


Blogger Tom Koch said...

Cult is a harsh word and I would hope for better from those who seem to praise diversity at every opportunity. I suppose this is another example of why people from teh left side of the aisle are considered to be from the "Think like me and I'll let you be." tribe. Inflation will come despite the governments best efforts to mask it through changing the CPI formula. In the meantime, our government will avoid the tough decisions and continue the massive infusion of fiat money, thus allowing the wheel to go a few more turns before it falls off.

5:34 PM  

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