Austrian Economics is a school of economic thought that is based on methodological individualism.It originated in late-19th and early-20th century Vienna with the work of Carl Menger,Eugen von Bohm-Bawerk and others…
Some of the key principles of the Austrian school include but are not limited to:
1. Individualism. First and foremost, Austrians are believers in individualism, as opposed to forced government collectivism. The most efficient economies are free economies, because they tap into people’s unique, innate incentive structures. Government involvement in economies stifle individual incentive because they take capital from all and reallocate it to some, creating an inequality and inefficiency which undermines the natural free incentive structure. Individualism does not mean selfishness, it literally just means the freedom for individuals to choose for themselves. People are naturally motivated to provide for other people, including their families, communities, and causes they believe in. Rather than ‘donating’ their income to government, Austrians believe that under a truly free market economies prosper, and that greater wealth both improves general standard of living and allows privately funded charities to prosper as well.
Suspicions among white-collar professionals that the recovery is an illusion, or at least has left them behind, are validated by official government data buried in the monthly employment reports, based on household surveys, which few bother to actually read.
Even more worrisome is the continuation of a decade-long decline in the number of self-employed, a category which includes many of these same professionals.
While even the seasonally-adjusted employment data show an uptick in five of the six unemployment measures (Table A-15 of the January 2015 jobs report, available at http://www.bls.gov/news.release/empsit.t15.htm), the unadjusted numbers in the same table show a measurable increase in unemployment.
However, that is not news to the white-collar workforce which has not fully recovered and which may never recover. Remember that the official data, if anything, paints a rosier picture than reality, because it is based on methodologies which strain to overstate employment and understate unemployment.
I am a Lebanese-American, a conservative and a capitalist. I was born in Lebanon, and had one dream and one dream alone – to come to America, and make my fortune as a capitalist. I did just that.
I studied at The Wharton School, went to work at the most entrepreneurial firm on Wall Street, Drexel Burnham Lambert, became a global entrepreneur-financier, and made my mark dealing with some of the largest capital pools in the world, orchestrating large scale buyouts and recapitalizations.
Today, the Middle East is a very different place than the one I left 25 years ago. “This isn’t your father’s Middle East,” a good friend with whom I do business in the region loves to tell me.
And yet he is disappointed that most Americans seem stuck in the 1970s when it comes to how we think and describe the place – as if all Arabs are the same, none worthy of our trust or respect.
I have finally come to the realization; after 30 years on Wall Street and Silicon Valley, that our capital markets are simply obsolete and that it’s high time for a new technology that allocates money and other resources far more efficiently than both our actual technology and government.
The current VC/entrepreneurship worlds are in a mess, and to their credit, the players are doing some serious introspection. But mostly, it is still business as usual.
I have nothing against VCs and angels. Most are extremely smart people. But the world of problems and opportunities is now so complex and fragmented that any system that relies on “bottleneck star-spotting talent” is doomed to hit its limits in short order.