ELI5: Explain Like I'm 5

Austrian economics

Austrian economics is a type of economics that looks at how economies and societies work. It was started by a group of people from Austria in the late 1800s. The main idea of Austrian economics is that people make decisions based on their own individual goals and needs, and these individual decisions affect the entire economy. People make decisions based on their own knowledge and understanding of their situation, instead of relying on government or someone else to make decisions for them. Austrian economics also looks at how government policies can either help or hurt an economy. For example, Austrian economists look at how taxes, regulations, and other government policies can influence the way people act in the economy by either encouraging investment, or making it more difficult. Austrian economists usually believe that allowing people to freely make decisions leads to a more efficient and productive economy.