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The Tom Woods Show.

Welcome to the Tom Woods Show, episode 419.

Today we're talking about the Austrian theory of the business cycle and common criticisms.

Criticisms you're likely to read, not, let's say, in Salon, where they don't even know the theory, but from people who may have a passing familiarity with it, but who don't quite see the full picture.

And in order to do this, we're going to revisit an article we looked at a little bit some time ago by Brian Kaplan, who's been a guest on this show, called Why I Am Not an Austrian Economist, and he has a section on the Austrian theory of the business cycle.

I had Jeff Herbiner on to talk about the microeconomics aspect of that article, and now we're

going to go through Kaplan's objections to the Austrian theory of the business cycle, why the economy

moves in this cyclical kind of pattern. Of course, most of my listeners, I would say virtually all, know what

we're talking about when we say Austrian, but we're, of course, referring to a school of thought

in economics that boasts among its names F.A. Hayek, who, as a matter of fact, won the Nobel Prize

for his insights into business cycle theory. Also, Murray Rothbard, Ludwig von Mezes,

Israel Kersner, Karl Menger, Oigin von Bombavark, these are some of the big names we associate

...