The Financial and Economic Crisis and the Aberrance of Economics

Positivism-empiricism-falsificationism has become the ‘state-of-the-art’ methodology of economics. In this article it will be argued that this approach (1) suffers from (logical) deficiencies when applied to the science of human action and (2) has helped legitimizing, and putting into practice, policies that have actually contributed greatly to bringing about the latest financial and economic crisis. The ‘Austrian’, or to be more precise: the ‘Misesian’, method (praxeology) will be outlined as the proper methodology in the field of social science.