“Austrian” Business Cycle Theory – an “Easy” Explanation
By Duncan Whitmore
Compared to the simple and straightforward siren songs of “underconsumptionist” and “underspending” theories of boom and bust, “Austrian” business cycle theory (ABCT) can seem unduly complex. The former types of theory, associated with “mainstream” schools of economics, at least have the advantage of the veneer of plausibility, in spite of their falsehood. A glut of business confidence and spending will, it seems, naturally lead to an economic boom, a boom that can only come crashing down if these aspects were to disappear. For what could be worse for economic progress if people just don’t have the nerve do anything? Add in all of the usual traits of “greed” and “selfishness” with which people take pride in ascribing to bankers and businessmen (again, with demonstrable plausibility) and you have a pretty convincing cover story for why we routinely suffer from the business cycle. ABCT, on the other hand, with its long chains of deductive logic, can seem more impenetrable and confusing. Is there a way in which Austro-libertarians can overcome this problem? Read more
Immigration – An Austro-Libertarian Analysis
By Duncan Whitmore
Both the referendum on Britain’s membership of the European Union and the election of Donald Trump as the US President have elevated the topic of immigration to the top of the political agenda. Leftist, liberal elites – previously so sure they would arrive easily at their vision of an open, borderless world – have been scalded now that the lid has been lifted from the bubbling cauldron of the needs of ordinary, everyday citizens seeking to preserve their jobs and the culture of their homelands.
It is high time that this vitriolic, divisive and – frankly – often quite tiresome issue is put to rest. That, alas, is unlikely to happen, particularly as the political globalists seem content to plough on with their vision of open borders through the looming UN Global Compact for Migration. Listening to the mainstream arguments (or at least to how the leftist/liberal media chooses to portray them), one would be forgiven for thinking that the immigration question needs to be met by an all or nothing answer – i.e. that it is either an unqualified good or an unqualified bad. We are led to believe that it is a contest between liberals, or self-styled “progressives”, clamouring for fully porous borders on the one hand, versus elderly, conservative, racist bigots who supposedly want to keep everyone out and preserve England’s green and pleasant land for white faces.
The falsehood of this dichotomy is obvious to almost anyone who is not of the liberal-left, and, in fact, a “sensible” view on immigration is quite prevalent – that it is possible to be in favour of permitted, but regulated immigration, allowing some people to cross the border as immigrants to come and live and work in the territory of the state while denying that privilege to others. It is also recognised that immigration is economically beneficial in some situations, but not in others – i.e. when immigrants are highly skilled and productive instead of welfare consumers.
The task of this essay is to sharpen this “sensible” view with Austro-libertarian theory. We will begin by outlining the core libertarian theory concerning immigration before examining a key area for contention among libertarians – whether, in a world populated by states, any particular state should restrict or otherwise control movements across the border by persons who are not considered to be citizens of that particular state and whether this is in accordance with libertarian theory. We will then move on to exploring the economic and cultural implications of immigration policies. Read more