The Three Axioms
The logical chain from the economizing principle to monetary theory — the distinctive foundation of New Austrian Economics.
Bischoff / SF School of Economics
The San Francisco School of Economics, founded in 2006 by Ingo Bischoff, distilled Austrian economic reasoning into three axioms. The first two are shared with mainstream Austrian thought. The third is the distinctive contribution — and the logical bridge to Fekete's entire monetary framework.
Axiom 1: The Economizing Principle
Man seeks to gratify his desires with the least amount of exertion.
Efficiency as a premise — the foundation of rational economic action.
Axiom 2: The Scarcity Premise
Man's desires are unlimited.
The foundation of all economic reasoning — unlimited wants, limited means.
Axiom 3: The Hoarding Axiom
Man hoards consciously and systematically.
This does not appear in Mises or Rothbard. If man hoards consciously, the commodity most suitable for hoarding — the one with the slowest-declining marginal utility — becomes money. That commodity is gold. This single axiom is the logical foundation of the gold basis, permanent backwardation, and the entire Toolkit layer.