It’s the Economy
Prime Time for Paul Ryan’s Guru (the One Who’s Not Ayn Rand
"... Hayek’s ideas aren’t completely new to American politics. Some mainstream Republicans, including Ronald Reagan, have name-checked him since at least the 1980s as a shorthand way of signaling their unfettered faith in the free market and objection to big government. But few actually engaged with Hayek’s many contentious (and outré) views, particularly his suspicion of all politicians, including Republicans, who claim to know something about how to make an economy function better. For these reasons, and others, Hayek has become fashionable of late among antigovernment protesters, and if Ryan brings even a watered-down version of his ideas into the Republican mainstream, the country’s biggest battles about the economy won’t be between right and left, but within the Republican Party itself — between Tea Party radicals who may feel legitimized and the establishment politicians they believe stand in their way.
For the past century, nearly every economic theory in the world has emerged from a broad tradition known as neoclassical economics. (Even communism can be seen as a neoclassical critique.) Neoclassicists can be left-wing or right-wing, but they share a set of crucial core beliefs, namely that it is useful to look for government policies that can improve the economy. Hayek and the rest of his ilk — known as the Austrian School — reject this. To an Austrian, the economy is incomprehensibly complex and constantly changing; and technocrats and politicians who claim to have figured out how to use government are deluded or self-interested or worse. According to Hayek, government intervention in the free market, like targeted tax cuts, can only make things worse...."
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