"Mathematics in the field of economics is always statistics, and statistics are always history. Mathematics cannot and does not enter into measuring the ideas or values that determine human action. There are no constants in these. There is no equality in market transactions. Therefore, mathematics does not apply. The use of mathematics requires constants. Mathematics cannot be used in economic theory."
It seems to me that this statement pretty much sums up the Austrians view on statistics. I saw hints at this within the first few articles I read at mises.org and this just completely blew me away.
You have people like Thomas Sowell and the now gone Milton Friedman who advocated the same policies as the Austrian school of thought. Studying neo-conservative economists I never hear these Austrians the way that Austrians slam them. I find it completely ridiculous. Milton Friedman said time and again that you can serve only one master, and his ultimate master was freedom/liberty. He said over and over that he is against the existence of a federal reserve. He was the biggest critic of its policies. When I first studied the economics from Mises I found it to be enlightening and I found the theory to be sensible. I wish I could say as much for the people.
Thursday, February 11, 2010
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