Are Business Schools to Blame? | Peter G. Klein

Presented by Peter G. Klein at the Mises Circle in Newport Beach, California; 14 November 2009. Sponsored by Louis E. Carabini. Includes an introduction by Douglas E. French.

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[JessicaBelle81]

What are you talking about? They have proven it time and time again. Mises predicted the collapse of 1929 and the ultimate collapse of the Soviet Union.

Plus we have multiple Austrian economist who predicted the current crisis ie: Peter Schiff (just search "Peter Schiff was right) and Ron Paul and every other Austrian.

I find it to be common sense.

[mythrail]

The Austrian school teaches that fractional reserve banking is a fraudulent form of banking. Modern banks are fractional reserve banks. The Austrian school teaches that they employ fraudulent practices.

[weho1]

@JessicaBelle81 Was the complete failure and violent collapse of Pinochet's facist Gov't which relied and followed the Austrian School of Economics and Milton Friedman's policies also predicted by the Mises? If not, why not?

[weho1]

Is there more greed now than b4 Klein asks in a idiotic condescending tone? Did greed cause sub-prime mortgage Wall St. melt down? Well Peter since you're not capable of figuring out the obvious get a clue from bank robber Willie Sutton, why? "Because that's where the money is". There's no more greed now than b4 but if U R a shark swiming in the ocean and find an opportunity to feed on a walrus or a whale which one R U going to choose? Dirivitives = a 500+ Trillion $ Whale. Understand now Peter?

[lavedon]

@whoo689 Respectuflly, I'm not sure this is true. In many ways things have gotten worse. Computers allow much more sophisticated models to be built with lots of variables---and many more ways to miss calibrate the model. I thought Nassim Taleb's books explained these problems well to the laymen. Certainly in a way more articulate then I can.

[lavedon]

@whoo689 Good point. Keep in mind the rate of monetary expansion is quite high but the velocity of money is low. This can be even more dangerous because risk will build up in the system and when the velocity of money picks up again. BAM. There are of course other effects besides inflation risk that can be harmful.

[Darwinist]

@whoo689

Agricultural economics are important because agriculture is the foundation of human life. Only 2% of Americans may be farmers, but 100% of Americans eat food....EVERY DAY!

It is only because of the vast amount of capital accumulation through saving and investment over the last 200 years that 98% of the population can do something that's NOT farming ;)

[whoo689]

How complex can something based off of crop trading and selling really be?? Agricultural econ. can't possibly be worth writing an entire textbook or teaching courses. I'm sure you could sum it up in 10 pages or less.

[whoo689]

Peter Klein sounds like a bright guy, and it's great that he speaks at Mises, but why does he waste his time here at Mizzou (where I attend) teaching something like Agricultural Economics?? Who cares??? Only 2% of America is even farmers! It's not really much of an economy. Why waste time studying it? Wouldn't his efforts be better focused teaching Austrian economics here at Mizzou too?

Does he honestly think Agricultural Econ. is somehow interesting? Ooh, corn prices. fun

[LordVigeous666999]

I liked, Socially Responsible Statistics

[iferraro]

well, they weren't funny.

[surgednb]

to answer your question: Are business schools to blame?

1. Long answer: Yes

2. Short answer: no with a but...