Austrian Economics is Reality Economics - Part 1
by Michael McKay sub-topic» Austrian School
We are not taught logic in grade school. All of us were taught in grade School that the only valid method of how we know things is called the scientific method – which is great for the physical sciences. But it’s not so great for the social sciences. Why? Because it is impossible to replicate in any controlled experiment the trillions of choices that multitudes of people make the sum total of which are the outcomes that result. In short: Because people are constantly changing their minds and they are executing those changing decisions based on constantly changing conditions … since the world is constantly changing.
And to make it even more interesting people are evaluating and acting in this constantly changing world with constantly changing information, calculations, choices and degrees of competence. Think of a football game. This is why we don’t know at the beginning of the game who will win – Green Bay or the Steelers.