Introduction Clipped from Methodological individualism - Wikipedia on 2023-12-16. In the social sciences, methodological individualism is a framework that describes social phenomena as a consequence of subjective personal motivations by individual actors. Class or group dynamics, which operate on systemic explanations, are deemed illusory, and, thus, rejected or de-prioritized. With its bottom-up micro-level approach, methodological … Continue reading Discuss Methodological Individualism

About a year and a half ago, I published the text of this article as an introduction to the Austrian school's characteristics. I am reintroducing these characteristics of the Austrian school, first in this article, which lists them, followed by a series of articles, published over time, that give more detail on each characteristic. The … Continue reading Re-Introducing Characteristics of the Austrian School

We can understand the performance of systems at three basic levels. The three levels at which we can understand the performance of systems consist of Events, Patterns of Behavior, and Systemic Structure. Working from the bottom up, each level provides more knowledge about what influences the system's behavior. This diagram shows the direction of influence—most … Continue reading Levels of Understanding Systems

Introduction I’ll dial the phone. I’ll hang-up the phone. Let’s watch the sun rise. Let’s watch the moon set. I’m going to deposit my money [cash, check, or debit card transaction] into the bank. Most people know that a person does not dial or hang up a modern phone (which is actually a radio). Watching … Continue reading People do not deposit “Money”

Introduction Read an online post or watch an online video, and you may find yourself asking, "How can they be so certain about the claims they make?" and "Where's the empirical evidence that supports that argument?" I argue that "facts" and "empirical data" do not provide the best place to start. If you apply sound … Continue reading Tools for Thinking

Introduction From the network of actors we refer to as a “market,” how do people know who should do which activities? Many projects require numerous steps for completion. To complete those steps in a timely manner requres the employment of several workers. Simply dividing a project into different parts, however, does not resolve the problem … Continue reading Introduction to Comparative Advantage

Introduction Ever since President Trump announced his tariff policy, I have wondered why he keeps insisting that other countries are "ripping us off." I knew that nothing harmed American consumers when they bought more from overseas than they did from the United States. I just couldn't understand why President Trump thought otherwise. Recently, I saw … Continue reading GDP Leads to Stupid Policy

To eat, you must first work. Introduction The noise about tariffs has become nearly deafening. Some people think the US should impose tariffs. Others think the US should reduce or eliminate tariffs. A lot of this debate surrounds the question of whether trade deficits harm the US economy or not. So, what’s the truth? With … Continue reading Market Purpose: Consumption

The theories espoused by the Austrian School of Economics are complex. Fritz Machalup, however, has made a list of the primary characteristics of the Austrian School. The following excerpt from “The Austrian School of Economics.”[1] provides a good description of the distinguishing characteristics of the Austrian School. I have made a few editorial changes, but … Continue reading Introducing Characteristics of the Austrian School