Ludwig von Mises’s mission of creating a foundation for economic science that recognises the central role of human agency in the social sciences while also creating general laws has often been misinterpreted. Here, I attempt to clarify and refine some elements of praxeology… 🧵 First, we need to understand what praxeology is. Praxeology is the science of human action, which from the starting action axiom can deduce universal economic laws. Humans act purposefully, and for anything to occur at all a few conditions must be met…

In the modern era, our generations have been plagued with a groaning instability. Every few years there is a new boom, a new inflation that eventually reduces our living standards and our policymakers are helpless to stop it. Here is why, and how we can stop it: 🧵 The Austrian Business Cycle Theory (or the ABCT) is a theory that explains why we have business cycles. These are distinct from economic progress, or recessions. Rather, business cycles are intrinsically related to unsustainable booms where the price quickly comes calling…