Economics is not a natural science. Unlike physics, you cannot reliably say things like: For a fixed amount of an ideal gas kept at a fixed temperature, P [pressure] and V [volume] are inversely proportional. (That is, halve the volume and the pressure will double.) Unfortunately, many economists and other social scientists think otherwise. Some believe the individual actions of large numbers of humans can be treated mechanistically. They use terms like “aggregate demand” as if the actions and aspirations […]

Tags: Austrian School, Chicago, economics, Keynes, Marx, Mises