Nostr Web Client

I am reading #[0] s book Principles of Economics right now. And I have a thought that seems to contradict the view of Austrian Economics. I don’t know what to make of it and I would be glad if someone could confirm or negate my thought. I'm open to discussion.

So, the Austrian school is based on the premise that individuals "act" and therefore it is impossible to put whole economies into equations. And obviously there is some truth in that.

BUT we know since Sigmund Freud that masses do NOT act as individuals when their primitive senses are triggered. That's why propaganda works. It worked in the Third Reich and it worked 3 years ago. We saw it first hand. So there is also clearly something that could measured.

Can you see my dilemma?

Josiah Garber 2y ago 💬 2

I can see your point. However even in those examples each person was acting as an individual. If a majority make a certain choice it doesn't mean each person is not acting as an individual.

I think the main point is that economics cannot be based on equations like other sciences because of the complexity of individual action.

If you think about when masses of people made similar decisions, you can also trace back individual decisions that led to the masses making those decisions. One leader could make an individual decision that many people follow that completely flips a silly economic equation on its head.

Not sure if that helps or not. Just what came to mind thinking about it.

Reply to this note

Please Login to reply.

Discussion

Toshi 2y ago

Copy/paste answer:

I suppose when Hitler manipulated the masses to participate in the horrific actions of the Nazis, the individual was also acting rationally in his own mind. And yet my point is that since Sigmund Freud we know what the result will be when governments or media decide to manipulate the masses. So from that perspective it is measurable, even if on an individual level the action was rational.

Josiah Garber 2y ago

How do we know what the result will be? I certainly don't.