dimpy.handa
Dimpy Handa
It is a common misconception that the workability of a totally free market economy assumes that human beings are for the most part rational. This assumption has been advocated by the mainstream economic schools, and therefore is assumed by many to be the premise from which free market advocates procede.
It is fairly easy to see that the actions of individuals appear to be sometimes irrational. In fact the argument can be easilly made, that actions are often irrational. We can easilly point to acts of irrationality on the part of individuals acting alone or in cooperation with others. The assertian that human beings are rational seems to go against what we observe with our own eyes.
The premise from which the Austrian School procedes towards a laissez faire, or even an anarcho-capitalist economic system, is not that Man is rational and each can be counted on to act in their own best interest. It is based on the premise that Man acts in an attempt to remove his own sense of uneasiness.
It is fairly easy to see that the actions of individuals appear to be sometimes irrational. In fact the argument can be easilly made, that actions are often irrational. We can easilly point to acts of irrationality on the part of individuals acting alone or in cooperation with others. The assertian that human beings are rational seems to go against what we observe with our own eyes.
The premise from which the Austrian School procedes towards a laissez faire, or even an anarcho-capitalist economic system, is not that Man is rational and each can be counted on to act in their own best interest. It is based on the premise that Man acts in an attempt to remove his own sense of uneasiness.