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Austrian Economics holds a strong preference for minimal government intervention and free markets, viewing state involvement as detrimental to economic growth. By focusing on human action, advocates examine how individuals make choices based on personal preferences, leading to complex market phenomena that cannot be adequately captured through mathematical modeling alone.
Institutional Economics
Emerging alongside other economic schools, Institutional Economics advocates for the importance of social, legal, and institutional frameworks in shaping economic behavior. This perspective gained traction through the Progressive Movement in the United States, where economists began calling for government intervention to regulate labor markets and address societal inequalities.