Written by Vikas Sehgal an investor with @pinetreemacro. 1:48AM 12 March 2026
11 March 2026
Handre on X: "What Even Is Austrian Economics? And why does it feel like common sense the moment you see it?" / X he economists who run central banks have been wrong about almost everything for the past fifty years. The inflation they said wouldn't happen — happened. The recessions they said they'd prevent — happened. The stimulus that was supposed to kickstart growth produced a decade of stagnation and the biggest wealth transfer to the already-wealthy in modern history. And yet here they are. Still in charge. Still confidently explaining why the next intervention will be different.
There is another tradition in economics. One that predicted most of this. One that explained, with uncomfortable precision, exactly why central planning fails, why printing money destroys savings, and why every government attempt to fix the economy makes it worse. It came out of Vienna in the 1870s, it was systematically ignored by the academic establishment, and it is more relevant today than at any point in the last hundred years.
The Austrian School wasn't built by one person. It was built across generations — each thinker taking what came before, finding the gaps, and pushing further.
It starts with Carl Menger, a Vienna professor who in 1871 figured out where value actually comes from. Not from labour, not from production costs — from the subjective judgement of individual human beings. That single insight, quietly published in a book almost nobody read at the time, overturned two centuries of economic orthodoxy.
Eugen von Böhm-Bawerk took Menger's foundation and built a theory of capital on top of it — explaining why saving and investment are the actual engines of prosperity, why interest rates exist, and why artificially cheap credit always ends in a crash. He argued this in print with Karl Marx and won. Not that the universities noticed.
Ludwig von Mises is probably the most important economist of the twentieth century — which is exactly why most economics courses don't mention him. His 1920 paper on socialist calculation proved, mathematically, that a planned economy cannot function rationally. His magnum opus, Human Action, remains the most comprehensive defence of the free market ever written.
Friedrich Hayek was Mises' most famous student. He won a Nobel Prize in 1974 — the same year he explained in his acceptance speech why Nobel Prizes in economics probably shouldn't exist. His Road to Serfdom warned that the road to totalitarianism is paved with exactly the kind of well-intentioned central planning that Western democracies were already embracing. They called him an alarmist. They built the road anyway.
Murray Rothbard took everything Mises built and followed the logic further than Mises was willing to go — all the way to anarcho-capitalism, the complete abolition of the state, and a natural law theory of property rights that made most libertarians nervous. His Man, Economy, and State is the most rigorous deductive economic treatise written in the twentieth century. He also happened to be one of the funniest writers in the history of the discipline.
Henry Hazlitt wasn't an academic. He was a journalist — which is probably why he could explain economics more clearly than anyone with a PhD. His Economics in One Lesson has sold millions of copies and contains more practical wisdom about how government intervention destroys wealth than most university curricula cover in four years.
Israel Kirzner spent his career developing the Austrian theory of entrepreneurship — the idea that markets are not static equilibria but dynamic discovery processes, driven by alert individuals who spot opportunities everyone else has missed.
Hans-Hermann Hoppe is the most controversial living economist in the Austrian tradition. His Democracy: The God That Failed makes the case that democratic government is not the solution to the problem of state power — it is a particularly efficient mechanism for expanding it.
And Saifedean Ammous — the economist who connected the entire Austrian monetary tradition to the most significant monetary development since the gold standard. His work closes the loop on everything Menger, Mises, and Rothbard were building toward.
10 April 2025
A blogger explains how an increase in tariffs can affect economics and cause unemployment, recession, inflation, and conflict. Chandu Stun on X: "@Ronxyz00 When an entrepreneur goes bankrupt, unemployment rises. Those who lose their jobs often struggle to keep up with their mortgage payments, leading to an oversupply of homes on the market with fewer buyers. As housing prices drop, the value of properties no longer matches the" / X "matches the collateral for loans, forcing even those who aren’t yet in dire straits to sell their homes because they can’t provide sufficient guarantees to the bank. Real estate agencies collapse, leaving brokers unemployed.
Delis and diners face challenges as their regular customers - who used to grab breakfast or lunch during workdays - disappear. If these businesses don’t shut down entirely, they at least cut staff, adding to the growing number of people in debt.
Meanwhile, inflation rises as costs increase, and interest rates climb, making it even harder for those who are still managing to stay afloat. They reduce their spending, which leads to more stores and entrepreneurs going bankrupt. And in this game of Monopoly, you can go back to the starting square and start a new round."
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