An imported Austrian Economic problem

In as much as an outside reference wouldn't seem to be too disruptive, follow this link :

The World's Hardest Austrian Economic Problem

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Marginalism !

"You pay $20, but it restores the entire value of a $20,000 car"

No. It restores the marginal utility of the car for the current period, far from the $20 000. Which neatly explains why some people take weeks before they finally get the car to the shop instead of taking a day off on the spot, or why rent-a-cars are priced far less than their full retail price.

I stopped caring at that point.

Illustrates the futility of Austrian economics

which is a logical construct which has no parallel in the real world. Why not? Because it assumes that people act logically, which they do not. It assumes that people have accurate information, which they do not. It assumes that people are honest, which we are not.

The goal of economists should not be devising a system for efficiency but devising a system that might be the most equitable if operated by liars and thieves for liars and thieves.

Simply not true

Austrian economics assumes people act toward their goals whatever those goals may be or however logical or illogical. It has nothing to do with accurate information or honesty. Now, neo-classical economics, maybe you have a point, I don't know. But you're simply wrong about Austrian economics.



You don't know what you are talking about. Your comment was ignorant from beginning to end.


Solution published at --


Regards, Don