Ken Schoolland recently appeared on Mongolian National Broadcasting to speak about economics, and why the Austrian school is so important.
Host: Please tell us about the, since we talk about the Austrian school of economics, and the certain direction of economic teaching.  What kind of major branch of economics teachings exist, and what makes the Austrian school so specific? 2015-09-09 00-06-25
Ken: Well, I usually display four categories.  The Marxian is that the government should own all the resources and make all the decisions for society.  What is to be produced, how, and so on.
The Keynesian school of thought is focused in on government intervention in the economy through fiscal policy, spending taxation, debt, and regulatory controls over every aspect directing the economy as officials in government see fit.  
A 3rd school of thought is the monetarist school that argues that monetary policy through banking regulation, interest rates, money supply, is the way to control and manipulate the economy utilizing the banking system.  
And the Austrian school argues that they’re all the cause of the problem, not the solution.  It’s sort of like a disease masquerading as it’s own cure.  The government creates problems and then creates more agencies and officials to try and solve these problems it created in the first place.
The Austrians are the ones who believe that it is better to trust individuals with their own decision making, not only to own yourself, but to own the product of your wealth.  The government shouldn’t intervene by trying to manipulate your behavior with taxation incentives and punishments.  Because government officials aren’t any smarter than the rest of us — as a matter of fact, they’re much less smart.  It’s just that when they spend other people’s money, they spend it rather grandly on their friends and on the things that they like, and in monetary policy it’s the most perverse, because people don’t know the impact that inflation has by destroying savings and banking and creating boom and bust cycles.
To watch the rest of the interview, click here:

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