Management Theory and the Current Crisis

19 March 2009 at 10:08 am Peter G. Klein 4 comments

| Peter Klein |

unequalshovels Here is a short piece by Nicolai and me written for a general audience, “Management Theory Is Not to Blame.” We discuss the role of resource heterogeneity in management theory and critique the vulgar Keynesianism that dominates mainstream commentary on the crisis. The graphic with the shovel alone is worth the click. Comments welcome here or at the Mises blog.

Entry filed under: - Klein -, Austrian Economics, Bailout / Financial Crisis, Management Theory, Strategic Management, Teaching.

Austrian Economics and Strategic Management Thoughts on AIG

4 Comments Add your own

1. REW | 19 March 2009 at 1:48 pm

After reading the Higgs piece, I find that I cannot perceive with confidence which meaning of vulgar he uses (and, by extension, you use). Is it “common”, “banal”, “crude/unrefined”, “unsophisticated”, “current/popular”, “colloquial”, or “lewd”? Inquiring minds want to know…
2. Peter Klein | 19 March 2009 at 2:17 pm

I had in mind crude, unrefined, unsophisticated, but let your imagination run wild. :-)
3. stevphel | 19 March 2009 at 4:15 pm

I liked your piece, guys, well done!
4. Alexander Schniertshauer | 28 March 2009 at 2:00 pm

Thanks for the well written post! You are pefectly right: it is not “management thinking” or “economic thinking” per se that led to the crisis – but a certain way of thinking. It will be interesting to see which economies and companies learn that lesson, appreciate heterogenity, and see the need to strengthen mechanisms – like the market – that drive discovery.