Characteristics of neo-Austrian economics

The neo-Austrian school's theory and policy proposition are extreme in the neo-liberal camp. Neo-Austrian School is the most important branch of bourgeois marginal utility school. It came into being in the 80s of 19, and got its name because its main representatives, Meng Le, Vizer and Pombavik, were all Austrian. They all use psychoanalysis to establish their own theoretical system, so they are also called "psychological school". /kloc-in the second half of the 0/9th century, the German-Austrian economy developed rapidly. In order to adapt to the development of capitalist economy, Austrian school attributed human social and economic life to the satisfaction of desire with subjective idealism, and regarded the whole society as the synthesis of individual activity machinery. Meng Le, the founder of this school, proposed that economics should study the conditions for human beings to carry out pre-financing activities in order to satisfy their desires, and pay special attention to the research on the causal relationship of economic phenomena "about products and their production factors". He subjectively evaluated the value from the intensity of people's desire to satisfy wealth, and put forward the "decreasing rate of desire satisfaction". After him, Vizer put forward the word "marginal utility". It is subjective to emphasize the essence and scale of wealth value. So as to oppose the view that the labor consumed in production determines the value of goods. Then Pombavik put forward the "time difference interest theory", which attributed all kinds of exploitation income in capitalist society to the difference of people's subjective evaluation of the utility of goods at present and in the future. The viewpoints of "marginal utility", "jet lag interest" and "psychoanalysis" advocated by Austrian school were later accepted by various bourgeois economic schools and became an important part of contemporary bourgeois economics. In 1930s, economists of Austrian school, represented by Mises and Hayek, inherited the traditional theory of Austrian school. They oppose state intervention in the economy, advocate liberalism and attack the socialist planned economy, and are often called neo-Austrian.

The neo-Austrian school, represented by Mises and Hayek, adopted a new method and analyzed the industrial organization from a new angle. To sum up, the main points are as follows:

1. The market is a dynamic and continuous process, and the essence of this process cannot be expressed by the market structure. Competition is based on incomplete information in an uncertain environment, and the dynamic process of the market must be analyzed.

2. The government restricts the entry of industries in the name of economies of scale, which is the cause of monopoly. The size of the enterprise is not important. What matters is whether the enterprise has the right to dominate the market and whether it has the right to dominate potential entrants.

3. It's not big enterprises that disrupt the market order, but trade groups and associations in the market. The reason why large enterprises get excess profits is because entrepreneurs find market opportunities, and entrepreneurs are the makers of dynamic changes.