No evangelistic erroneous network of ideas can guarantee the satisfaction of these two demands : (1) propagate the network without revision and (2) completely insulate itself against losses in credibility and adherents through criticism. If a network of ideas is false, or inconsistent or fails to solve its intended problem, or unfeasible, or is too costly in terms of necessarily forsaken goals, its acceptability may be undermined given only true assumptions and valid arguments. People prefer to adopt ideologies that (i) (...) are logically consistent, (ii) are more truth-like and of higher information content than their rivals, (iii) are systematically organised, (iv) solve their problems better than their rivals, (v) do not contain unfeasible demands, and (vi) do not contain uneconomic demands. Truth and validity therefore act as Darwinian-like filters on ideologies. Using Popper's notion of situational analysis and with reference to Darwinian evolution, considered as a special case of the former, and Bartley's theory of comprehensively critical rationalism I argue that a propagandist cannot guarantee his message or his movement from sound criticism. All positions are in a methodological sense open to argument. Moreover, the logic of a propagandist's situation constrains him into making his message and himself open to criticism in order to maximize its chances of being propagated through the population. But he then loses control of the message in two respects. Firstly, his audience are disposed to select from the competing ideas they encounter those that satisfy (i) to (vi) because of man's evolutionary history. Secondly, he cannot guarantee protection from criticism even a privileged section of his message because he cannot predict in a systematic way what logical repercussions each protective reformulation of the ideology will have on other sections of the ideology and what criticism the ideology will encounter. He cannot do the latter because of certain logical properties of theories that endow them with unfathomable depths. Marxism and Freudianism serve as case studies, especially for the analysis of Popper's notion of the immunizing stratagem, a methodological/logical device that is supposed to save theories from criticism. "Immunizing stratagems" either abandon the ideology they are meant to protect or seriously lower its chances of being reproduced. (shrink)

This article explores parallels between Marx's and Schumpeter's theories of capitalist development, and discusses the relationship of these classical approaches to later constructivist theories of technological and organizational changes. It is suggested that Marxian and Schumpeterian ideas could be combined in a way which remedies the weaknesses of both sides, and provides a better understanding of the innovative dynamics of capitalism; such a synthesis could then be linked to a constructivist model of the rise and fall of economic `myths'.

How valuable is the market mechanism for practical morality? What is its moral standing? We can scarcely doubt that as individuals we do value tremendously the opportunity of using markets. Indeed, without access to markets most of us would perish, since we don't typically produce the things that we need to survive. If we could somehow survive without using markets at all, our quality of life would be rather abysmal. It is natural to feel that an institution that is so (...) crucial to our well-being must be valuable. And since moral evaluation can hardly be indifferent to our interests and their fulfillment, it might appear that there is nothing much to discuss here. The market's moral standing “has to be” high. (shrink)

The paper examines the ramifications of naturalism with regard to the question of individuality in economics and biology. Economic theory has to deal with whether households, firms, and states are individuals or are mere entities such as clubs, networks, and coalitions. Biological theory has to deal with the same question with regard to cells, organisms, family packs, and colonies. To wit, the question of individuality in both disciplines involves three separate problems: the metaphysical, phenomenist, and ontological. The metaphysical problem is (...) concerned with purposeful action: Is the firm or organism exclusively the product of efficient causality (optimization) or is it motivated by final causality (purposefulness)? The phenomenist problem is interested in the substantiality of essences: Is the firm''s or organism''s scheme of institutions/traits deep or is it extraneous to identity? The ontological problem is related to the issue of reductionism: Is the behavior of lower-level organization governed by a pre-constituted entities or is it context-sensitive? The paper finds that theoretical differences run along the naturalist/anti-naturalist divide rather than along disciplinary specialization. Also, the paper finds that it is not inconsistent for the same theorist to be naturalist with regard to one problem and anti-naturalist with respect to the other two problems. (shrink)

Marx believed that what most clearly distinguished him and Engels from the nineteenth-century French socialists was that their version of socialism was “scientific” while the latters' was Utopian. What he intended by this contrast is roughly the following: French socialists such as Proudhon and Fourier constructed elaborate visions of a future socialist society without an adequate understanding of existing capitalist society. For Marx, on the other hand, socialism was not an idea or an ideal to be realized, but a natural (...) outgrowth of the existing capitalist order. Marx's historical materialism is a systematic attempt to discover the laws governing the inner dynamics of capitalism and class societies generally. Although this theory issues in a prediction of the ultimate triumph of socialism, it is a commonplace that Marx had little to say about the details of post-capitalist society. Nevertheless, some of its features can be discerned from his critical analysis of capitalism and what its replacement entails. (shrink)

:This paper explores the foundations of the theory of exploitation as the unequal exchange of labour. The key intuitions behind all of the main approaches to UEL exploitation are explicitly analysed as a series of formal axioms in a general economic environment. Then, a single domain condition calledLabour Exploitationis formulated, which summarizes the foundations of UEL exploitation theory, defines the basic domain of all UEL exploitation forms, and identifies the formal and theoretical framework for the analysis of the appropriate definition (...) of exploitation. (shrink)

The financial crash of 2008 following the selling of fictitious derivatives was a crisis of both rationality and values whose aftermath has thrown the legitimation of deregulated markets, and governments, into question. This paper critiques the Becker metaphor of human capital and submits that human value is central to and the fulcrum of both economic and social values. It illustrates that Hume and Adam Smith directly countered the Hobbesian hypothesis that human nature is based only on self-interest, distinguishes market values (...) from social values, explicit from implicit values and parallels Sen in adopting an ordinal ranking of what people value rather than a search for cardinality. It draws on cognitive psychology, neural research, revealed preference theory and a principle of implicit verification. It also outlines implications for what Adam Smith centrally valued as concern for the welfare of the whole of society. (shrink)

Gerald A. Cohen, in ?The Labor Theory of Value and the Concept of Exploitation?, argues that, contrary to the traditional assumption, Marx's charge of exploitation against capitalism does not require the labor theory of value. However, there is a related but simpler basis for the charge. Hence Marx's criticism can stand even if the labor theory of value falls. Furthermore, he argues that the labor theory of value is false. It is argued here that Cohen is mistaken; the charge Marx (...) makes against capitalism does require the labor theory of value. Cohen's conception of exploitation is weaker than Marx's both theoretically and morally. It is also argued that Cohen's criticisms of the labor theory of value rest on misunderstandings of the theory and Marx's methodology. (shrink)

Marx develops his economic theory in Capital in a rather peculiar way. This paper focuses on some of these peculiarities, especially his attempt to base his account of prices and derivative entities (profit, rate of profit, etc.) on the labour theory of value. Although he may be said to have failed in this, there is still some kind of Marxist theory of prices possible. This is due to both, the so-called fundamental theorem (linking profit and surplus-value) and the possibility, shown (...) by Sraffa and others, to determine prices from the physical parameters of production. By adding on an earlier paper of mine, in which the surplus-value theory has been reconstructed within the structuralistic framework, this paper sketches such a reconstruction for the basic parts of a full-blown Marxist economic theory of capitalistic production. (shrink)

In Sarsi I seem to discern the firm belief that in philosophising one must support oneself on the opinion of some celebrated author, as if our minds ought to remain completely sterile and barren unless wedded to the reasoning of someone else…that is not how things are. Philosophy is written in this grand book, the universe, which stands continually open to our gaze.