In 1974, the Institute for Humane Studies organized the first Austrian School conference starring Israel Kirzner, Ludwig Lachmann, Murray Rothbard and Friedrich Hayek which became the catalyst for the revival of this school of thought. In this video, Richard Ebeling, himself part of the Austrian School Family Tree, shares the major contributions made by the leading Austrian economists and their impact in today’s conception of Economy.
The Austrian School began with Carl Menger in 1871 with his book Principles of Economics, and his concept of marginal utility. His second major was focused on spontaneous order and social evolution. He defended that society is not the creation of the state, but from the individual interaction, pursuing their own interests and as an outcome creating market rules, language, ethics and morals. He was the inspiration of Eugen von Böhm-Bawer and Friedrich von Wieser.
The Austrian School, if it was mention at all, was considered mealy a chapter in the history of economic ideas that made some interesting contributions in the past. But it was a closed chapter, because economists and the economic profession had move on.“
Hans Mayer, one of Austrian School economists that is not well-known due to his infamous behavior during WWII collaborating with the Nazi regime, developed an Austrian Theory based on the Consumption Planning and he defended that Economics is the study of human choice, when means are scarce and are allocated among competing ends, which inspired Lionel Robbins in his own economics’ concept.
The Austrian School was a wide and vibrant movement in the 1920s and 1930s.”
Ebeling proceeds to present the most prominent Austrian Economists and their contributions to the history of Economics, Ludwig von Mises and his own follower Friedrich Hayek. While Mises is famous for challenging socialism by marking out the inefficiency of government due to lack of economic calculation, Hayek is known for the Theory of Business Cycle and his book Road to Serfdom.
Ludwig Lachmann, Israel Kirzner and Murray Rothbard are also leading figures in this school that made important contributions as well and inspire Richard Ebeling himself. In conclusion, Ebeling highlights the relevance of these ideas that give an insight in society and offer freedom and prosperity.
Check out Richard’s Ebeling lecture on Austrian Economics and Public Choice Theory.
Author, economist, professor and honorary doctor of UFM
Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.
Universidad Francisco Marroquín