I am seeking to start a private equity fund with the intent of “betting” against the commercial real estate and retail sectors in the United States. As the basis of our business plan will be rooted in economic theory to justify why betting against these sectors through short-selling etc will be feasible, I must fully understand why these sectors are doomed to collapse. Though I am a student of current events, trends, international relations, political science, and history, economics is my weakness. I have intuitive beliefs regarding economics that I have justified to myself through many readings; however, I need some answers fast.
Ludwig Von Mises is of the Austrian School of Economics. Milton Friedman is a libertarian and a believer in laissez-faire economics. What are the differences between the two men and their respective schools of thought?
I believe that economics, as with most mathematical problems, has one correct answer and many false answers. I do not view economics as matter of different opinions, but rather as a science in which there is one correct school of economics with all others being incorrect. I am a firm believer in the power of the free, deregulated market to sustain a high standard of living and elevate societies from poverty to wealth. I blame the actions of government for the current economic crisis (manipulation of interest rates, high taxes, federal reserve system, abolition of gold standard, inflationary spending etc.).
What I am getting at here is this: I intuitively know that the answers to our current economic crisis can be found in the literature and philosophies that support free market economics. However, within free-market economics and/or libertarian economics are many different variants. In seeking to predict future trends one must adhere to the correct school of economics. Are there are free market economists or thinkers out there that can explain to me some of the different schools of economic thought within ‘free-market economics’ and give me the differences between them? Can anybody provide me with a compelling argument for a single school of economic thought within laissez-faire economics that is the most accurate school thus conceived of?
Any help would be greatly appreciated. Feel free to respond to this post of just email me.