Ludwig von Mises’s Human Action is a seminal work of Austrian economics. It sets forth Mises’s theory of the acting person and lays the groundwork for a liberal economic order. But is the “human action” which Mises describes in Human Action really human action? Mises, as well as his colleague Friedrich von Hayek, posits a liberal society in which telos and metaphysics can be elided from human interactions, but such conceptions of the human person are greatly different from the more (...) robust, and humane, anthropologies of Aristotle and St. Thomas Aquinas. In this paper, I compare and contrast the visions of the human person found in Mises, Hayek, Aristotle, and St. Thomas, arguing that the truly human vision of human action found in the latter two thinkers’ works provides a much sounder basis for human material flourishing (“capitalism”). (shrink)

In the latter half of the 19th century, economic thought in the Germanspeaking world was dominated, both intellectually and academically, by the so-called historical school, from Wilhelm Roscher to Gustav Schmoller and others. In 1871, the Austrian Carl Menger published his Grun&tze der Volkswirtschaftslehre (Menger, 1976 (1871)), customarily referred to as one of the three simultaneous discoveries of marginalist economics-the other two marginalist ‘revolutionaries’ being Jevons in England and Walras in France. Twelve years later, in 1883, Menger published a major (...) methodological treatise entitled Untersuchungen iiber die Methode der Socialwissenschaften und der Politischen Oekonomie insbesondere (Menger, 1963 (1883)). This book included criticisms of some of the historicist principles of doing economics. In the same year, Schmoller, leader of the German historicists, wrote a critical review of Menger’s book (Schmoller, 1883). Menger reacted forcefully with a more straightforwardly polemical small book, Die Irrthiimer des Historismus in der deutschen National6konomie (Menger, 1884). Commentaries by others appeared in later years, but this brief episode amounted to what has thereafter been called the Methodenstreit between Menger and Schmoller. It has been established as perhaps the most famous methodological controversy in the history of the social sciences. (shrink)

Adolf Reinach belongs to the Brentanian lineage of Austrian Aristotelianism. His theory of social acts is well known, but his account of ownership has been mostly overlooked. This paper introduces and defends Reinach’s account of ownership. Ownership, for Reinach, is not a bundle of property rights. On the contrary, he argues that ownership is a primitive and indivisible relation between a person and a thing that grounds property rights. Most importantly, Reinach asserts that the nature ownership is not determined by (...) positive law but presupposed by it. Some have objected that such realism raises insuperable difficulties as to the origin of ownership, difficulties that could only be dealt with under a more conventionalist approach. I argue that the independence of the nature ownership from positive law is, in fact, compatible with the claim that its existence is dependent on human conventions. (shrink)

In this paper, we argue that, in order to account for the apparently substantive nature of definitional disputes, a commitment to what we call ‘Socratic essentialism’ is needed. We defend Socratic essentialism against a prominent neo-Carnapian challenge according to which apparently substantive definitional disputes always in some way trace back to disagreements over how expressions belonging to a particular language or concepts belonging to a certain conceptual scheme are properly used. Socratic essentialism, we argue, is not threatened by the possibility (...) that some apparently substantive definitional disputes may turn out to be verbal or conceptual, since this pluralist strategy, in our view, requires a commitment to more, rather than fewer, essences. What is more, a deflationary, metaphysically ‘light-weight’ construal of the essence-ascriptions in question leads to a peculiar conception of the pursuit of metaphysicians as behaving like deceptive (or self-deceived) grammarians pretending to be scientists. Moreover, this deflationary attitude, we argue, spreads beyond metaphysics and philosophy more broadly to apparently substantive definitional disputes in the sciences as well as other in other disciplines, such as art criticism. (shrink)

Under one understanding of marketing, this discipline focuses on the creation of customer value. Although nobody doubts today that value is subjective and it emerges from consumer judgment, the causality is less clear. Do producers bring about value, or do consumers receive ‘raw’ products that only attain value in their estimation? Or, do producers and consumers co-create value as much of contemporary marketing theory assumes? Recent works on value creation, the building of customer relationships, and the service-dominant logic are related (...) to insights derived from both Austrian schools of value theory. The emphasis on value as a ratio between perceived benefits and perceived costs may be seen as a continuation of Menger’s and Wieser’s work. The focus on relations as a category distinct from goods goes back to Böhm-Bawerk. And the service-dominant logic reflects insights developed both by Menger and by philosophers of the Brentano School. The direct influence of Austrian economics on business studies is small and is restricted to very few scholars. But the potential is great for a fruitful development of current approaches in marketing by drawing on insights from Austrian economics and, perhaps even more so, from Austrian philosophy. This paper defines the relations between the thought from economists and philosophers and presents examples for how cutting-edge marketing thinking may profit from both Austrian schools of value. (shrink)

Dismissing criticisms that Leonard Peikoff's book, The DIM Hypothesis, is unscientific, deterministic, or rationalistic, this essay focuses on problems with the logical framework of Peikoff's study of Western culture. In particular, Peikoff has conflated two different kinds of rationalists and empiricists and has completely overlooked combinations of the Platonist and so-called “Kantian” modes. As a result, his three pure integration “modes” actually produce not just two “mixtures” but a total of six. Furthermore, without absolving Kant of very serious philosophical errors, (...) the author marshals evidence that the real culprit responsible for the culturally disastrous “Disintegration” mode was one of Kant's predecessors. (shrink)

We presuppose a position of scientific realism to the effect (i) that the world exists and (ii) that through the working out of ever more sophisticated theories our scientific picture of reality will approximate ever more closely to the world as it really is. Against this background consider, now, the following question: 1. Do the empirical theories with the help of which we seek to approximate a good or true picture of reality rest on any non-empirical presuppositions? One can answer (...) this question with either a 'yes' or a 'no'. 'No' is the preferred answer of most contemporary methodologists -- Murray Rothbard is one distinguished counterexample to this trend -- who maintain that empirical theories are completely free of non-empirical ('a priori') admixtures and who see science as a matter of the gathering of pure 'data' obtained through simple observation. From such data scientific propositions are then supposed to be somehow capable of being established. (shrink)

How, as Caldwell puts it, does one choose between rival systems all of which claim to rest on a priori foundations? On the nonfallibilistic conception it is difficult to make sense even of the possibility of rival systems of this sort. On the conception here defended, in contrast, the existence of such rival systems can be seen to be a perfectly natural and acceptable consequence of the just-mentioned difficulties we will often fact in coming to know even the intelligible traits (...) of reality: one adjudicates between such systems in the same way in which one adjudicates between all rival scientific hypotheses, namely via a complex mixture of empirical and a priori considerations. (shrink)

This paper will attempt to reposition Ludwig von Mises’s methodological Apriorism and the Austrian economic method firmly in the Aristotelian realist tradition of Apriorism, rather than the more problematic Apriorism associated with Kantian idealism. The author will argue that the Misean method whilst aesthetically Kantian, is far more nuanced than semantics suggest.

This essay is part of an attempt to reconcile two extreme views in economics: the (neglected) subjective, apriorist approach and the (standard) objective, scientific (i.e., falsifiable) approach. The Austrian subjective view of value, building on Carl Menger’s theory of value, was developed into a theory of economics as being entirely an a priori theory of action. This probably finds its most extreme statement in Ludwig von Mises’ Human Action (1949). In contrast, the standard economic view has developed into making falsifiable (...) predictions about economic phenomena whereby the truth of the assumptions, especially about economic agents, is relatively unimportant: predictive fecundity is all. This finds an extreme statement in Milton Friedman’s introductory essay in his Essays in Positive Economics (1953). However, many economists fall somewhere between the two extremes, such as McKenzie and Tullock (1978). (shrink)

The study analyzes Mises‘s approach to the question of apriorism in a broader methodological context. It shows that it is not inevitable to advocate the aprioristic character of economics (resp. science of human action), as Mises does, to maintain the subjectivist-individualist methodology and the effort to adequately grasp the general laws of human action from its perspective. The present redefinition of apriorism is developed on the basis of thoughts of Barry Smith and Alfred Schutz. It suggests abandoning the apodictic character (...) of apriori (which is untenable) and move closer to a broadly defined empiricism. The methodological insights developed in the paper are finally used to contribute to the debate between the behavioral economists and the proponents of rational choice theory. (shrink)