The Only Correct Economic Model

In this third and final installment of our three-part trilogy on the importance of seeing the world clearly in order to solve the vexing challenges of a depressed economy, we offer a brief summary of the main tenets of the Austrian school of economics.  Two weeks ago we critiqued the problems that can arise from the neoclassical paradigm in economic theory "“ this is the theoretical framework for "mainstream economics"? prevalent since Alfred Marshall developed it after 1870.  The Keynesian framework grew out of Marshall (directly so, as Keynes was a student of Marshall's at Cambridge), and last week we illustrated how theorizing via Keynesian analysis can miss critical truths about a real world affected by an infinite number of variables.  Today we correct the errors inherent in the limiting vantage of both Keynes and Marshall.