Peter Klein answers questions from the Austrian_Economics Reddit

Dr. Klein discusses economics PhD programs, higher education, the business cycle and entrepreneurship, limits to the size of a firm, corporate personhood, the state of Austrian Economics, Keynesianism, Hayek on money, and Lachmann.


  1. Today we drove from Iowa and went to Madison, WI to visit the farmer’s market and when driving to and from we went through the campus of the University of Wisconsin and saw numerous monumental new buildings. These are the malinvestments of statism in the capitol city. Of course these malinvestments create a pseudo economic boom in the capitol but also these malinvestments produce more structure for the dinosaur of ‘education’ where little real knowledge is discovered or shared. The entrepreneurial spirit has little need for these State monuments and ‘statues of archaic education.’

  2. The question about a PhD program is really a question about institutionalized education. The question can be restated as: When will the obsolete educational system and its badge of accomplishment be replaced with true education and its fruits, which come about as the knowledge gained is put into practice – thus generating the opportunities – instead of relying on or expecting an opportunity to appear simply because one possesses a badge of accomplishment?

    I know of a Masters Degree program and a more advanced PhD program that bypasses the fallacious empirical curriculum, and which is personal and tailor-made to each student, and which is free at the present time. Will the badge of accomplishment (the degrees) be ordained by the State or by the obsolete institutional guardians of standards? Probably not but the true knowledge gained will spark the entrepreneurial spirit to discover the best means to facilitate social cooperation in specific ways and that valuable knowledge will generate income.

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