Looking at the law and economics of the family through the eyes of the Austrian school helps us to see two key points of analysis that other approaches might overlook. First, Austrians understand the role played by the law as a node of social coordination in a world of uncertainty. Second, the Austrian understanding of capital, including human capital, sheds light on what makes for a sustainable marital partnership and provides a way of describing in more detail the nature of the coordination problem marriage involves. To the degree that the law facilitates rather than complicates the creation of complementary human capital structures between marital partners, it will contribute to better marriages and fewer divorces.
Before the advent of Keynesianism, most recessions were short-lived as producers were left free to shuffle the jigsaw pieces into better combinations. It is the very lack of trust in markets, and the misguided trust in the political process, that Keynesianism produced as a result of its theoretical errors with respect to capital that now leads us to think stimulus spending is necessary and effective. The approach of Hayek and the Austrians give us good reasons to think otherwise. The evidence would seem to be in their favor.