Recently Stan Grant wrote to tell us that F.A. Hayek — of all people — not only founded the global order we have today, but gave us a set of ideas that lead directly to ball tampering in cricket! It was another one of those cliched “other people consider mere economics but ‘I’ consider higher ideals” articles. The bogeyman of “Neoliberalism” strikes again, we are told.
The message of Grant’s article is that economics is pretty much the science of greed. He complains of the “reduction of all human motivation to the one-dimensional rational self-interest of Homo-economicus”. The concept of homo-economicus was constructed by the early classical economists because homo-real-life didn’t fit their mathematical models. But anybody familiar with economic history would know that Hayek was from the Austrian school, which robustly rejected this approach.
The Austrian method starts with humans as they actually are – purposeful, choosing, acting beings, … Read the restRead More >>