ECON103: Principles of Austrian Economics I

People worldwide seek to engage in the actions discussed in the previous unit of this course because it makes life better. In fact, modern life and all the wonderful things it provides us are only possible because of large numbers of people trading with one another peacefully and respecting each other's sovereignty. Modern economics have attempted to quantify economic progress with measurements of economic growth. But these are highly flawed measures, and fixating around them is very different from economic progress driven by human action. Fixating on numerical measures can lead to compromising the ability of individuals to improve their own life. As you watch the lecture, pay attention to examples of how the fixation on growth can actually detract from economic progress.

KEY POINTS

While numerical indicators can be useful indicators, using them as measures in economics is not valid.