New Technology In Economic Science.

Those familiar with Austrian economics know that Austrian economics is part of the tradition of classical liberalism. One of the most distinguishing features of Austrian economics is the use of the methodology of subjectivism.

In Man, Economy, and State Murray Rothbard pioneered the use of diagrams built upon subjectivism, done in contrast to the empirical diagrams that were and are used in economics by the empirically-minded. There were other attempts within the Austrian economics tradition to convey economic concepts using diagrams as a supplement, for example the Hayekian triangle. The detailed exploration of the use of diagrams to build a bridge between the Austrian business cycle theory and the empirically-oriented alternative (yet mainstream) theories that was done by Roger Garrison, is another example of pioneering work in this regard.

These and all of the too-many-to-mention other examples were and are great pedagogical steps offering alternative ways to understand the commonly recognized economic concepts and laws. But these disconnected diagrammatical examples of the power and use of the methodology of subjectiveness that supplemented and supported the causal-realistic logic did not coagulate into a technology.

Between 2005 and 2012 a new economic model – built using the methodology of subjectivism – provided a broad platform that included macroeconomics, microeconomics, ethical economics and economic justice. It is because it is so broad yet wholly integrated and deductively sound that it can be regarded as a new technology.

The series of models built using the methodology of subjectivism that constitute this new technology include:

  • Divine Economy Model
  • Divine Microeconomy Model
  • Model of the Ethics of the Divine Economy
  • Model of the Justice of the Divine Economy

This new technology is comparable to the technological advance made when the lens was first introduced. Things are clearer, and it amplifies the ability to focus, and new things not seen before are noticed. No one would deny that the lens was a welcome and useful technology. As an Austrian economist myself, I can testify that this new technology is timely and important.

 

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