Abstract deduction of Austrian school: opposing the historical school, opposing the abstract deduction and historical induction of the historical school, and trying to update the theoretical system of bourgeois economics with thorough subjectivism. The research object of economics is only regarded as studying the relationship between people and things. The characteristics of Austrian school's abstract deduction method are as follows: first, individuals are abstracted from society and history, individual economy is primary and primitive, and society is secondary and derived. Second, the psychological analysis of idealism. Economics studies the relationship between happiness and pain. They completely subordinate political economy to psychology, and even publicly declare that political economy is practical psychology. Evaluation: Abstract social relations of production, denying the historicity of economic categories and economic laws. Production not only provides materials to meet demand, but also creates demand.