8. Subjective value theory: The #value of a good or service is not inherent in the good or service itself, but is determined by the subjective valuations of the individuals involved in a transaction.
9. Methodological #individualism: Social phenomena can be explained by analysing the actions and interactions of individuals.
10. Spontaneous order: Social institutions and #market phenomena arise from the actions of individuals, without any centralised planning or direction.
11. The role of #entrepreneurship: Entrepreneurs play a crucial role in the market process by identifying and exploiting opportunities for #profit, and by coordinating the activities of factors of production.
12. The importance of property rights: Clearly defined and enforced property rights are essential for a functioning market economy, as they provide individuals with the ability to #control and benefit from the resources they own.
13. The #business cycle: The boom-bust cycle is caused by government intervention in the monetary system, which leads to artificially low interest rates and an unsustainable expansion of credit.
14. The role of #government: The proper role of government in a market economy is to protect property rights, enforce contracts, and provide a legal framework for voluntary exchange. Any further intervention in the market process is likely to be counterproductive and result in unintended consequences.
15. The importance of #time: Time is a scarce resource, and individuals must make decisions about how to allocate their time in order to achieve their goals. The Austrian school emphasises the importance of time preference, or the degree to which individuals value the present versus the future, in economic decision-making.
16. The #knowledge problem: Economic decision-makers operate in a world of uncertainty and imperfect knowledge. Central planners can never have enough information to effectively plan and coordinate economic activity; markets are better able to handle the #complexity and unpredictability of the economy.
17. The role of incentives: Incentives shape economic behaviour. Individuals respond to #incentives, and economic policies that create perverse incentives are likely to lead to unintended consequences. For example, policies that subsidise certain behaviours or industries can lead to overinvestment and inefficiency, while policies that impose costs or regulations on certain activities can discourage #innovation and entrepreneurship.
18. The importance of competition: Competition is a dynamic process that drives innovation, efficiency, and progress in the market. #Competition is not just about price, but also about quality, variety, and other factors that affect consumer satisfaction.
19. The role of prices: Prices serve as signals that convey information about supply and demand, and they help to coordinate the activities of buyers and sellers in the market. The Austrian school emphasises the importance of flexible prices in allowing markets to adjust to changing conditions and allocate resources efficiently.
20. The limitations of mathematical models: Economic systems are complex and dynamic, and they cannot be fully captured by mathematical equations. Economic theory should be based on a careful study of human action and the institutions that emerge from it, rather than on abstract mathematical models.
21. The importance of economic #freedom: Economic freedom is a fundamental value, and it argues that free markets are the best way to promote prosperity and well-being. Economic freedom allows individuals to make choices and pursue their own goals, and it encourages innovation, entrepreneurship, and #progress. Government intervention in the economy often restricts economic freedom and undermines the ability of markets to function effectively.
