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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?
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freeborn | ἐλεύθερος | 8r0gwg 2y ago

Austrian economics does not teach that people act in ways that *will* achieve their desired end, but in ways that they *percieve* will achieve their desired ends. That leaves room for correction regarding which means are best to achieve a chosen end--but either way, people act in order to achieve some chosen end--and that is rational, even if the chosen means is irrational.

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Toshi 2y ago

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.

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freeborn | ἐλεύθερος | 8r0gwg 2y ago

If you're into Freud, have you ever read Philip Reiff's two books:

[Freud: The Mind of the Moralist](https://amzn.to/3sHdsQm)

[Triumph of the Therapeutic: Uses of Faith after Freud](https://amzn.to/3EsmF1G)

Both are extremely insightful, in my opinion.

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Toshi 2y ago

Thanks for the recommendation. Will check them out