Economics Without Equations: The Austrian School

In Round 2 of Wrestling with Economics, Matt Kibbe and Knox County Mayor — and former WWE legend — Glenn Jacobs explore the origins of the Austrian School and the groundbreaking work of its founder, Carl Menger. Menger cracked a puzzle that had stumped thinkers from Adam Smith to Karl Marx: value isn’t intrinsic to objects, but subjective — shaped by individual perception. This insight explained why diamonds cost more than water, even though one is a frivolous luxury and the other a necessity to life. By understanding subjective value, the Austrian School places people and their choices as the primary drivers of any economy.