The Austrian School economists were essentially correct in their long-run diagnosis (high credit growth is unsustainable), but fail in short-run timing because their recommended solutions (complete credit destruction) are politically and socially impossible for democratic governments to implement.

causalpending

Speaker

Luke Gromen

Evidence Quote

The Austrian Austrian economists I've tend to find are you know they are they are very very right in the ultimate long run. They're almost always right in the long run. Uh the challenge is is this that it's you know economics is not a science no matter what the economists want to tell you. It's a branch of moral philosophy, right?

Source

The Economy is About to Collapse | Luke GromenThe Peter McCormack Show
Created: 8/12/2026, 10:18:48 PM

My Notes

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