Austrian Economics Explained (So Simple a 6th Grader Can Understand)

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With Henry Bingaman

Austrian Economics Explained (So Simple a 6th Grader Can Understand)

John Foster joins me to talk about how he teaches Austrian Economics to middle schoolers.

Our world is run based on Keynesian Economics, where governments pump money into economies to stimulate and manipulate them at the cost of their own currency. The Austrian Economics model is a description of how the world really works and how value creation is what drives economies. 

Austrian Economic theory shows the consequences of manipulating interest rates, why trying to make a profit is not morally wrong, and how the cost of base products drives sales prices – and not the other way around (Labor Theory Value). 

That’s why John started Middle School MBA, and built the 3D models “LinKē” and “BlinKē” to make these critical life skills simple enough for 10-year-olds to understand. 

John walks through the LinKē 3D model (Linear Comprehensive Economics), showing the flow from raw materials to price formation and back again. It also shows what happens after money is taken from the public and kept in the government sector. 

Understanding how the real world really works and what money actually is are the keys to creating success in your own life. This episode is about how to keep the world free by spreading the truth of Austrian Economics. 

Check out John’s 3D models:

Articles on LInKe and Circular Flow Diagram:

Follow John Foster on Twitter

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