Objectives and Time Preferences of Different Schools of Economic Thought

I — OBJECTIVE OF DIFFERENT SCHOOLS —

The different economic schools pursue different ends:

a) Austrian: Social Science : reduction of frictions. Emphasis on institutions of cooperation. (“Paleo-Libertarianism / Natural Law”)

b) Freshwater: Rule of Law: Non-interference with planning, but insurance against informational asymmetries, at the expense of consumption. Emphasis on ‘balance’. (“Classical Liberalism / Constitutionalism”)

c) Saltwater: Discretionary Rule – favoring consumption at the expense of savings, capital, and planning. Emphasis on equality and spending. (“social democracy / leftism”)

II — TIME PREFERENCE OF DIFFERENT SCHOOLS —-

We can judge the time preference by the levers that each school advocates or shuns, from shortest to longest.

– Direct Redistribution ( not practiced ) “New” but Saltwater will jump on it.

– Fiscal Policy  – Saltwater

– Social Policy – Saltwater

– Monetary Policy – Freshwater

– Tax and Trade policy – Freshwater

– Infrastructure Policy – Freshwater

– Education Policy (human capital) Immigration Policy (Austrian)

– Institutional Policy  (Austrian)