Austrian Welfare Economics Confused

In my critique of Austrian Business Cycle Theory, I cite some critiques of the Austrian school. Hill (2004) and Gloria-Palermo & Palermo (2005) critiques I do not cite.

Palermo and Palermo focus on how Austrian school economists reach normative conclusions. They put aside the influence of values in, for example, choosing the questions one addresses in one's positive analysis. For Austrian school economists, the idea of coordinated plans acts as a bridge from their positive theory to their normative claims. A state in which all agent's plans are coordinated is thought to be a desirable state by Austrian school economists. They claim that a market system has a tendency towards such a state without ever reaching it. Since then market systems are always in an undesirable state in which some agents' plans are mutually inconsistent and uncoordinated, why do Austrian school economists, in their nascent normative analysis, not conclude that market systems are undesirable?

• Greg Hill (2004). "From Hayek to Keynes: G.L.S. Shackle and Our Ignorance of the Future". Critical Review.
• Sandye Gloria-Palermo & Giulio Palermo (2005). "Austrian Economics and Value Judgements: A Critical Comparison with Neoclassical Economics". Review of Political Economy, V. 17, N. 1 (Jan.): pp. 63-78.