response to criticisms of the austrian business cycle theory
why the theory is not held by the mainstream and why they are wrong.
P Dayton commented
Keynes and his followers have been rejecting the Austrian School of Economics since the the 1930s. At the theoretical level , one can use data to show almost anything but most students of the Austrian school see their theroies born out in everyday economic life. Look at Europe and it's failure of socialism. Look at the failed Marxest economies , Cuba, Russia and East Germany. Did central planning and government ownership bring prosperity, political and economic stability? Any time ones engages in an economic transactions either one party gains something of value and one looses, Marx, or both parties gain something of value , Von Meises. Marx felt that capitalistic transactions were inherently unfair one party always taking advantage of the other. The Austrian view is that both parties come to the table offering something of value and agree to exchange it for something of equal or better value. Both are winners! Freedom and "Human Action "( Von Meisis book title ) show the power of the market place and self interest as a driving force to economic activity and growth. Most of mainstream media are Marxist even if they don't admit it. When was the last time you saw a story of the private sector solving a major problem in America? How about a story of the need for Government to take more of your money to solve a social or economic problem?