Mainstream macroeconomics is so deeply flawed even mainstream macroeconomists are starting to admit it. It is marked by ridiculous levels of aggregation, outlandish policy proposals, and high-powered mathematical modeling that doesn’t seem to have anything to do with the way real human beings live and act. Though their science is founded on prediction, the 2007–08 financial crisis seemed to catch them all by surprise.

Austrian economists had been warning of a housing bubble for years, and it’s because they are equipped with a method of doing economics that is firmly grounded in the logical implications of real choices made by real humans.