There are two opposing views concerning intuitive cases of wage exploitation. The first denies that they are cases of exploitation at all. It is based on the nonworseness claim: there is nothing wrong with a discretionary mutually beneficial employment relationship. The second is the reasonable view: some employment relationships can be exploitative even if employers have no duty towards their employees. This article argues that the reasonable view does not completely defeat defences of wage exploitation, because these do not rely (...) solely on the nonworseness claim. They also rely on the idea, popularised by Alan Wertheimer, that exploitation is a form of disequilibrium price occurring in defective markets. The article then proceeds to criticise Wertheimer’s account through neoclassical, new institutional, and Austrian economics. It concludes that considerations for economic efficiency are irrelevant to assessing intuitions regarding exploitation. (shrink)

This article reinterprets Schumpeter’s theory of entrepreneurship in a decidedly un-“Schumpeterian” way, and argues that continued emphasis on Schumpeter’s alleged glorification of the entrepreneur constitutes a missed opportunity for democratic critics of capitalism and neoliberalism. I demonstrate that Schumpeter did not exalt the individual entrepreneur as the paradigm for economic and political leadership in capitalist societies, and I show that he offers a surprisingly robust resource for reconceptualizing entrepreneurship. Schumpeter theorized entrepreneurship: as a phenomenon that could not be exemplified by (...) either individual persons or strictly private entities; as a conceptual mechanism for analyzing change in the history of capitalism; and even as evidence that political and economic leadership should not be conflated in modern democratic societies. By contextualizing Schumpeter’s discussions of the entrepreneur, I suggest that a reconsideration of Schumpeter’s actual theory of entrepreneurship would invigorate contemporary debates about the role of leadership in capitalist economies and liberal-democratic polities. (shrink)

This paper is the first major and a thorough study on the Merger & Acquisition (M&A) activities in Vietnam’s emerging market economy, covering almost entirely the M&A history after the launch of Doi Moi. The surge in these activities since mid-2000s by no means incidentally coincides with the jump in FDI and FPI inflows into the nation. M&A industry in Vietnam has its socio-cultural traits that could help explain economic happenings, with anomalies and transitional characteristics, far better than even the (...) most complete set of empirical data. Proceeds from the sales of existing assets and firms have mainly flowed into the highly speculative industries of securities, banking, non-bank financials, portfolio investments and real estates. The impact of M&A on Vietnam’s long-term prosperity is thus highly questionable. An observable high degree of volatility in the M&A processes would likely blow out the high ex ante expectations by many speculators, when ex post realizations finally arrive. The effect of the past M&A evolution in Vietnam has been indecisively positive or negative, with significant presence of rent-seeking and likelihood of causing destructive entrepreneurship. From a socio-economic and cultural view, the degree of positive impacts may result in domestic entrepreneurship which will perhaps be the single most important indicator. (shrink)

Corporate bond appeared in 1992-1994 in Vietnamese capital markets. However, it is still not popular to both business sectors and academic circles. This paper explores different dimensions of Vietnamese corporate bond market using a unique and perhaps, most complete data set. State not only intervenes in the bond markets with its powerful budget and policies but also competes directly with enterprises. The dominance of state-owned enterprises and large corporations also prevents small and medium enterprises from this debt financing vehicle. Whenever (...) a convertible term is available, bondholders are more willing to accept lower fixed income payoff. But they would not likely stick to it. On the one hand, prospective bondholders could value the holdings of equity when realized favourably ex ante. On the other hand, the applicable coupon rate for such bonds could turn out negative inflation-adjusted payoff when tight monetary policy is exercised and the corresponding equity holding turns out valueless, ex post. Given the weak primary market and virtually non-existent secondary market, the corporate bond market in Vietnam reflects our perception of the relationship-based and rent-seeking behaviour in the financial markets. For the corporate bonds to really work, they critically need a higher level of liquidity to become truly tradeable financial assets. Updated entries in 2010 affirm the findings and conclusions. (shrink)

This paper clarifies the usage of Albert Hirschman’s categories of market behaviour as of exit and voice in debates about workplace democracy by taking seriously his critique of the neoclassical analysis of competition. Pro-market liberals are generally hostile to the idea of workplace democracy and tend to favour top-down hierarchies as a way of organising labour. This hostility is generally inspired by the neoclassical analysis of exploitation and efficiency, which leads them to defend distributions achieved through exit-based competitive equilibria. Following (...) Hirschman, I propose to consider a hypothetical alternative: a democratic equilibrium, reached through the use of voice. I show that it would present the same appealing characteristics than its competitive counterpart while also accounting for the non-ideal conditions in which markets operate. Support for free markets should entail support for workplace democracy minimally understood as a strengthening of voice. (shrink)

Nossa seleção de verbetes parte do interesse de cada pesquisador e os dispomos de maneira histórico-cronológica e, ao mesmo tempo, temática. O verbete de Melissa Lane, “Filosofia Política Antiga” vai da abrangência da política entre os gregos até a república e o império, às portas da cristianização. A “Filosofia Política Medieval”, de John Kilcullen e Jonathan Robinson, é o tópico que mais demanda espaço na nossa seleção em virtude das disputas intrínsecas ao período, da recepção de Aristóteles pelo medievo e (...) da tensão entre poder Papal e Civil. No verbete “Liberalismo”, de Gerald Gaus, Shane Courtland e David Schmidtz, vemos as fontes fundantes da Filosofia Política da modernidade. As ideias de liberdade negativa e positiva se coadunam com a Ética Liberal e sua influência sobre a abrangência do valor fundamental da liberdade individual diante das políticas públicas. O texto de Ian Carter, “Liberdade Positiva e Liberdade Negativa”, expõe o paradoxo da liberdade em suas concepções valorativas e neutra, muito úteis para compreender os problemas políticos que enfrentamos hoje. Por fim, Bas Van Der Vossen no texto “Libertarianismo” trata das noções tensas entre Estado e indivíduos. A concepção de “liberdade de si”, genuinamente negativa, ganha destaque justificatório. Jackie Scully, no verbete Bioética Feminista, exemplifica o valor da influência dessas correntes no âmago de todos os contemporâneos. Sua escrita homenageia postumamente Anne Donchin com um apanhado histórico da luta de inserção de políticas feministas na pesquisa acadêmica global. No verbete “Democracia”, os professores brasileiros Gustavo Dalaqua e Alberto Ribeiro Barros acrescentaram tópicos importantes ao tema geral, respectivamente: “Construtivismo Representativo vs. Representação Descritiva” e “Democracia Contestatória de Philip Pettit”. O texto de Thomas Christiano perpassa os principais argumentos de justificação política contra e a favor da democracia ocidental, com foco central nas concepções de liberdade e igualdade. Os verbetes dispostos nessa seleção de textos são tendenciosos na medida que expressam o interesse genuíno de cada pesquisador com os assuntos relevantes em suas pesquisas. Em virtude disso, a escolha “adota um lado” em detrimento de outros – mais especificamente: de outro que poderia ser mais “progressista”. Por si só, o livro já nasce reclamando um segundo volume, que será providenciado. Colocamos de lado qualquer exigência de “imparcialidade”, algo que não existe na Filosofia, muito menos na Filosofia Política. Sobressai, nesse aspecto, o caráter reflexivo que o assunto exige e a importância do assunto, sem o qual não teríamos a modernas concepções de representatividade, as teorias da justiça ou mesmo as ciências sociais. Um outro volume, portanto, se faz imperativo, por conta da abrangência da própria SEP e do respeito a seu projeto inicial, genuinamente um plano plural. (shrink)

The thesis provides a philosophically grounded account of a socialist planned economy. While I do not primarily consider a positive case for socialism, I address two major objections to it and thus argue that the possibility of socialism as an alternative form of economic organisation has been dismissed too quickly. Furthermore, I provide an account of the precise form a socialist economy should take, outlining general principles of planning and distribution. Based on a welfarist interpretation of Marx, I show that (...) distribution of consumer goods should be facilitated by an equal distribution of tokens. These tokens can be redeemed for consumer products or substituted for additional leisure time. The rates at which tokens can be redeemed for consumer products should correspond to market clearing prices. Welfare-oriented socialism is also defended against a deontological objection to socialism by Robert Nozick, who claims that socialism leads to injustice because it violates private property rights. The thesis also considers Ludwig von Mises’s calculation argument against socialism, which claims that socialism leads to the abolition of economic rationality. I show how this objection can be overcome by using optimal planning techniques which are responsive to consumer demand as signalled by the market clearing rates of consumer products. The resulting model of socialism is tested using a computer simulation. The simulation also demonstrates that a novel system of valuation based on opportunity cost leads to a better adaptation of production in response to environmental constraints when compared to the labour values of classical political economy. (shrink)

By synthesizing the argumentation theory of new rhetoric with research on heuristics and motivated reasoning, we develop a conceptual view of argumentation based on reasoning motivations that sheds new light on the morality of decision-making. Accordingly, we propose that reasoning in eristic argumentation is motivated by psychological (e.g., anxiety reduction) or material (e.g., vested interests) gains that do not depend on resolving the problem in question truthfully. Contrary to heuristic argumentation, in which disputants genuinely argue to reach a practically rational (...) solution, eristic argumentation aims to defeat the counterparty rather than seeking a reasonable solution. Eristic argumentation is susceptible to arbitrariness and power abuses; therefore, it is inappropriate for making moral judgments with the exception of judgments concerning moral taboos, which are closed to argumentation by their nature. Eristic argumentation is also problematic for strategic and entrepreneurial decision-making because it impedes the search for the right heuristic under uncertainty as an ecologically rational choice. However, our theoretical view emphasizes that under extreme uncertainty, where heuristic solutions are as fallible as any guesses, pretense reasoning by eristic argumentation may be instrumental for its adaptive benefits. Expanding the concept of eristic argumentation based on reasoning motivations opens a new path for studying the psychology of reasoning in connection to morality and decision-making under uncertainty. We discuss the implications of our theoretical view to relevant research streams, including ethical, strategic and entrepreneurial decision-making. (shrink)

The ontology of marketing, particularly the question of what products and brands are, is still largely unexplored. The ontological status of brands hinges on their relationship with products. Idealists about brands see perceptual or cognitive acts of consumers grouped under the heading ‘brand awareness’ or ‘brand image’ as constitutive for the existence of brands so that, in their view, tools of the marketing mix can influence relevant mental dispositions and attitudes. Brand realists, on the other hand, reject the view of (...) brands as mere marks or names and interpret them as emergent products with properties that afford branding in the sense of Gibson’s ecological psychology. Brand strength is a function of the degree to which brands occupy defensible niches in product space. Branding as a process involves changing external or internal boundaries of products. Several arguments are proposed in favor of brand realism. The fragments of an ontology of marketing are developed in a broadly Aristotelian framework. Brand realism has significant implications for a new understanding of issues ranging from the effects of advertising to financial brand valuation, the nature of trademarks, and marketing strategy in general. It permits one to treat brand equity as a real phenomenon not dependent on associations, attitudinal states such as brand loyalty, or spurious constructs such as brand character or personality. (shrink)

An overview of the ancient philosophers and their philosophical system (divided into the fields of logic, physics, and ethics) comprising the living, organic, enduring, and evolving body of interrelated ideas identifiable as the Stoic perspective.

La falsifiabilité de Popper a été critiquée à la fois pour avoir exclu la science légitime et pour avoir accordé un statut scientifique aux pseudo-sciences. Selon Larry Laudan, « cela a la conséquence fâcheuse de considérer comme « scientifique » toute demande faisant de fausses allégations de manière concluante ». Certains reprochent à Popper en disant que sa théorie ne constitue pas une alternative légitime aux propositions inductives qu’il critique. Jeffrey soutient que le bayésianisme, qui insiste sur le point de (...) savoir dans quelle mesure les preuves empiriques appuient une hypothèse, est beaucoup plus proche de la pratique scientifique que la falsifiabilité de Popper. DOI: 10.13140/RG.2.2.21235.27680. (shrink)

Malgré les critiques de la théorie de Karl Popper sur la falsifiabilité pour la démarcation entre la science et la non-science, principalement la pseudo-science, ce critère est toujours très utile et parfaitement valide après avoir été perfectionné par Popper et ses disciples. De plus, même dans sa version originale, qualifiée de « dogmatique » par Lakatos, Popper n’a pas affirmé que cette méthode constituait un critère absolu de démarcation : un seul contre-exemple ne suffit pas à falsifier une théorie ; (...) une théorie peut légitimement être sauvée de la falsification en introduisant une hypothèse auxiliaire. Comparé à la théorie des révolutions de Kuhn, de qui lui-même s'est dissocié pour la transformer en une théorie des « micro-révolutions », j'estime que la méthode de démarcation de Popper, ainsi que le développement ultérieur proposé par lui, incluant la corroboration et la vraisemblance, même imparfait, n’est pas seulement valable aujourd’hui, mais c’est la meilleure méthodologie de démarcation. -/- SOMMAIRE: -/- Abstract Introduction 1. Le problème de la démarcation 2. Pseudoscience 3. Falsifiabilité 4 Falsification et réfutation 5 Extension de la falsifiabilité 6. Critiques de la falsifiabilité 7 Support de la falsifiabilité 8 Tendance actuelle Conclusions Bibliographie Notes -/- DOI: 10.13140/RG.2.2.19124.60805 . (shrink)

This article discusses the challenges raised by the inclusion of evolutionary elements in the theories of Carl Menger, Joseph Schumpeter, and Friedrich Hayek. Each adopted an idiosyncratic position in terms of method of inquiry, focus, and general message. The breadth of the topics and phenomena they cover testifies to the great variety of interpretations and potential uses of evolutionary concepts in economics. Menger, who made no reference to Darwin’s theory, advanced an “organic” view of the emergence of social institutions. Schumpeter (...) elaborated an original theory of industrial development based on the recurrent emergence and dissemination of innovations. Hayek adopted the biological notion of group selection and made it the central element in his theory of cultural evolution and the rise of the free market. The chapter concludes with a preliminary evaluation of the possible role that evolutionary theorizing might play in the future development of Austrian economics. (shrink)

Despite the criticism of Karl Popper's falsifiability theory for the demarcation between science and non-science, mainly pseudo-science, this criterion is still very useful, and perfectly valid after it was perfected by Popper and his followers. Moreover, even in his original version, considered by Lakatos as "dogmatic", Popper did not assert that this methodology is an absolute demarcation criterion: a single counter-example is not enough to falsify a theory; a theory can legitimately be saved from falsification by introducing an auxiliary hypothesis. (...) Compared to Kuhn's theory of revolutions, which he himself later dissociated from it transforming it into a theory of "micro-revolutions," I consider that Popper's demarcation methodology, along with the subsequent development proposed by him, including the corroboration and the verisimilitude, though imperfect, is not only valid today, but it is still the best demarcation methodology. For argumentation, I used the main works of Popper dealing with this issue, and his main critics and supporters. After a brief presentation of Karl Popper, and an introduction to the demarcation problem and the falsification methodology, I review the main criticisms and the arguments of his supporters, emphasizing the idea that Popper has never put the sign of equality between falsification and rejection. Finally, I present my own conclusions on this issue. CONTENTS -/- Abstract Introduction 1 The demarcation problem 2 Pseudoscience 3 Falsifiability 4 Falsification and refutation 5 Extension of falsifiability 6 Criticism of falsifiability 7 Support of falsifiability 8 The current trend Conclusions Bibliography Notes -/- DOI: 10.58679/MM99220. (shrink)

Thomas Kuhn criticized falsifiability because it characterized "the entire scientific enterprise in terms that apply only to its occasional revolutionary parts," and it cannot be generalized. In Kuhn's view, a delimitation criterion must refer to the functioning of normal science. Kuhn objects to Popper's entire theory and excludes any possibility of rational reconstruction of the development of science. Imre Lakatos said that if a theory is scientific or non-scientific, it can be determined independently of the facts.He proposed a modification of (...) Popper's criterion, which he called "sophisticated (methodological) falsification". DOI: 10.13140/RG.2.2.30572.82568. (shrink)

This article examines Machiavelli’s image of humanity. It argues against the prevailing views that characterize it either as pessimistic or optimistic and defends the thesis that the Florentine has a realist image of humanity. Machiavelli is a psychological egoist who conceives of man as a being whose actions are motivated by his drives, appetites, and passions, which lead him often to immoral behavior. Man’s main drives are “ambition” (ambizione) and “avarice” (avarizia). This article also investigates Machiavelli’s concept of nature and (...) shows that, for him, the constancy of human nature is the central premise that makes the scientific analysis of politics possible. Despite the fact that human drives and capabilities are the same at all times, good laws, military training, and religion allow man to be changed and educated toward “virtue” (virtù). To make such changes in man, however, presupposes a good legal and political order. Machiavelli justifies the state because of its capacity to reshape human nature and to improve man. The state is not only a coercive power but a moral institution. This leads to the conclusion that Machiavelli does not separate politics from morality as most scholars claim. (shrink)

În această lucrare argumentez faptul că, în ciuda criticilor teoriei falsificabilității propuse de Karl Popper pentru demarcarea între știință și ne-știință, în principal pseudoștiință, acest criteriu este încă foarte util, și perfect valabil după perfecționarea lui de către Popper și adepții lui. Mai mult, chiar și în versiunea sa inițială, considerată de Lakatos ca ”dogmatică”, Popper nu a afirmat că această metodologie este un criteriu absolut de demarcare: un singur contra-exemplu nu este suficient pentru a falsifica o teorie; mai mult, (...) o teorie poate fi salvată în mod legitim de falsificare prin introducerea unei ipoteze auxiliare. În comparație cu teoria lui Kuhn a revoluțiilor, de care el însuși s-a dezis ulterior transformând-o într-o teorie a ”micro-revoluțiilor”, consider că metodologia de demarcare a lui Popper, împreună cu dezvoltarea ulterioară propusă de acesta, inclusiv coroborarea și verosimilitudinea, deși imperfectă, nu numai că este valabilă și azi, dar este încă cea mai bună metodologie de demarcare. Pentru argumentare, m-am folosit de principalele lucrări ale lui Popper care tratează această problemă, și a principalilor săi critici și susținători. După o scurtă prezentare a lui Karl Popper, și o introducere în problema demarcației și metodologia falsificabilității, trec în revistă principalele critici aduse și argumentele susținătorilor săi, accentuând pe ideea că Popper nu a pus niciodată semnul egalității între falsificare și respingere. În final prezint propriile concluzii în această problemă. -/- DOI: 10.58679/TW55590. (shrink)

(Expected) adverse effects of the ‘ICT Revolution’ on work and opportunities for individuals to use and develop their capacities give a new impetus to the debate on the societal implications of technology and raise questions regarding the ‘responsibility’ of research and innovation (RRI) and the possibility of achieving ‘inclusive and sustainable society’. However, missing in this debate is an examination of a possible conflict between the quest for ‘inclusive and sustainable society’ and conventional economic principles guiding capital allocation (including the (...) funding of research and innovation). We propose that such conflict can be resolved by re-examining the nature and purpose of capital, and by recognising mainstream economics’ utilitarian foundations as an unduly restrictive subset of a wider Aristotelian understanding of choice. (shrink)

This paper contributes to the (re-)conceptualisation of responsible innovation by proposing an evolutionary economic approach that focuses on the role of consumers in the innovation process. After a discussion of the philosophical foundations and ethical implications of this approach, which bears an explanatory potential that has not been adequately considered in previous discussions of responsible innovation, we present a first step towards capturing the important but often neglected role of consumers in innovation processes (including responsible innovation): We propose an agent-based (...) model that incorporates a multidimensional space of characteristics in which new products or services are represented by more than the mere aspect of price and quality. Instead, innovations are denoted by a large set of characteristics, including also negative or harmful ones. The model is used to illustrate that consumers’ heterogeneity and bounded rationality – even if considered in a simple manner – indeed play a crucial role in the creation and diffusion of responsible innovation which can and should be used for further work in this field and for possible extensions of the model. (shrink)

Today, capitalism is in question, as the 2013 Academy of Management conference theme claimed. Many view business skeptically because they see capitalism as incompatible with ethics. The same problem pervades the business ethics education classroom. Business ethics can be taught in a way that demonstrates that economics and ethics are compatible and are integrated most directly in the function of management. This essay provides an overview of Ayn Rand’s philosophy as an alternative to current conventions but largely consistent with approaches (...) such as virtue ethics and conscious capitalism. The essay concludes with challenges to teaching Objectivism in business schools. (shrink)

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)

Uncertainty is a feeling of anxiety and a part of culture since the dawn of civilization. Civilizations have invented numerous ways to cope with uncertainty, statistics is one of those technologies. The rhetoric as the discourse of investment theory uncovers that the theory of statistics applied is a blind spot in the current conversation about investment theory and practice. Probability and prediction in investment theory look like a tying sale, since investment theory is founded on stochastical predictability. The proof of (...) unpredictability, however, lies outside the paradigm of statistics, because statistics assumes that the substrate, that produces probability outcomes, is stable. The theory of objective probabilities founds the Capital Asset Pricing Model but does not stochastically predict, and neither do Markowitz’s subjective probabilities for his portfolio theory. Statistical models for investing have a function, despite that they cannot predict: in essence, the models try to quantify statistically the equity, the fairness of the distribution of risk and return between parties involved. In the dissertation, a lot of ideas to change finance have had attention: the alternative statistical theory of Mandelbrot, bubble theory, political finance, the analysis of rhetoric, the analysis of culture, innovative practices, ethics in the form of virtue and value ethics, and the history of finance. How to make the culture of finance more heterogeneous? That starts with awareness of the current problems, the introduction of multiform metaphors for investment theory, and handling the ambiguity of theory uncertainty, by presenting, explaining and elaborating the alternatives. (shrink)

The central thesis of my article is that people live a life worthy of a human being only as self-ruling members of some autarchic (or self-governing) communities. On the one hand, nobody is born as a self-ruling individual, and on the other hand, everybody can become such a person by observing progressively the non-aggression principle and, ipso facto, by behaving as a moral being. A self-ruling person has no interest in controlling her neighbors, but in mastering his own impulses, needs, (...) wishes, desires, behaviors, etc. Inasmuch as he is an imperfect being who lives in an imperfect world, he needs to share certain interests, beliefs, values, customs and other characteristics with other people, i.e. to be involved in some communities. Depending on the following four criteria – the regulatory principle, the essential resources, the specific feedback and the fundamental values –, the countless and manifold human communities can be grouped in three categories: (1) affinity communities, (2) economic communities, and (3) civic communities. In other words, every community or human behavior has an affinity, an economic, and a civic dimension. If a civic community is merely a state shaped society, it can be called a political community. All communities are intrinsically variable. Throughout time, they ceaselessly change their composition, values, interpersonal processes and relations, territory, etc. Interestingly enough, the variability is unanimously recognized and accepted in affinity and communities economic, but is denied or abusively interpreted in the case of state shaped societies. If we confuse two types of order − cosmos and taxis – and two types of rule – nomos and thesis –, as well as we exaggerate the importance of certain type of community we bring some social maladies, namely the traditionalism, the commercialism and the civism, (with the worst form of it – the politicality). Whatever the communities they are involved in, all persons relate (implicitly or explicitly) to the libertarian non-aggression principle, living their life in strict accordance with the logical implications of the position they adopt. People who respect the non-aggression axiom necessarily manifest self-control, consideration for the life and property of the others, commitment to offer value for value, love of freedom and a high level of individual responsibility. By contrast, people who violate this axiom – the villains and the statists – invariably strive to control their neighbors, behave as parasites or predators, prefer forced exchanges, reject the personal responsibility (at most accepting the idea of social responsibility), and apply double moral standards. The first category of people generates a libertarian civic discourse as a spontaneous order, and the second creates a political/ statist civic discourse as a result of the human design and will to power. As a spontaneous order, the libertarian civic discourse implies free involvement, peaceful coordination, free expression, free reproduction of ideas and the power of one. Every communication performance in the frame of the libertarian civic discourse is important and has relevant results. All participants to the libertarian civic discourse are automatically members of some self-governing communities (at least members of the general libertarian community). The most important thing for these communities is to be connected to a communicational infrastructure which would make possible free involvement, free expression and the free reproduction of ideas. Inasmuch as today democracy means the tyranny of majority and participatory democracy the tyranny of majority plus the power of vested (and illegitimate) interests, only the emergence of self-governing communities by libertarian discourse offers us a little hope. It’s high time to fall in love (again) with liberty and to embrace the non-aggression principle. We don’t have to create a perfect world, but we can strive to develop our human nature. (shrink)

The financial crisis has led to new interest in the ethics of financial markets. In this article, we further the debate on the nature of banking contracts by showing that the fundamental subjective purposes of loan and deposit contracts are irreconcilable. Any resultant mixture of the two contracts is a legal aberration. We consider a mutual fund as an important and legitimate alternative to the common demand deposit to provide high liquidity and some yield without offering full availability of a (...) nominal sum. Besides being a close substitute for how many deposit accounts function today, the mutual fund has the additional benefit of satisfying all legal and ethical requirements. Loan and investment contracts allow for the “bank” to make use of their clients’ funds while the intents of money owners are clearly classified without running into legal or ethical problems. (shrink)

The main purpose of this article is to tackle the problem of living together – as dignified human beings – in a certain territory in the field of social philosophy, on the theoretical grounding ensured by some remarkable exponents of the Austrian School − and by means of the praxeologic method. Because political tools diminish the human nature not only of those who use them, but also of those who undergo their effects, people can live a life worthy of a (...) human being only as members of some autarchic or self-governing communities. As a spontaneous order, every autarchic community is inherently democratic, inasmuch as it makes possible free involvement, peaceful coordination, free expression and the free reproduction of ideas. The members of autarchic communities are moral individuals who avoid aggression, practice self-control, seek a dynamical efficiency and establish a democratic public discourse. (shrink)

This article contributes to the debate about the political role of the business firm. The article clarifies what is meant by the “political” role of the firm and how this political role relates to its economic role. To this end, the authors present an ordonomic concept of corporate citizenship and illustrate the concept by way of comparison with the Aristotelian idea of individual citizenship for the antique polis. According to our concept, companies take a political role if they participate in (...) rule-setting processes and rule-finding discourses. Though this political role of the corporation is in principle ambivalent, the authors conclude that in such processes of “new governance” the economic and political roles of the firm need not contradict each other but can follow the same win-win logic of individual self-perfection through cooperative social interactions. (shrink)

We defend a view according to which Austrian economics rests on what can most properly be called an Aristotelian methodology. This implies a realist perspective, according to which the world exists independently of our thinking and reasoning activities; an essentialist perspective, according to which the world contains certain simple essences or natures which may come together in law-like ways to form more complex static and dynamic wholes, and an apriorist perspective, according to which given essences and essential structures are intelligible, (...) in the sense that they ca be grasped non-inductively in our thinking. We show the consequences of this view for an analysis of the thinking of Mises and Hoppe, both of which – we claim – incorporate what we believe to be foreign mixtures of Kantianism in their account of the foundations of Austrian economics. (shrink)

The purpose of this paper is to present the essence of Ayn Rand's theory of rational egoism and to indicate how it is the only ethical theory that can provide a foundation for ethics in business. Justice, however, cannot be done to the breadth and depth of Rand's theory in so short a space as this article; consequently, I have provided the reader with a large number of references for further study. At minimum, Ayn Rand's theory, because of its originality (...) and challenge to establishment theories, should be included in all business ethics courses and discussions of business ethics. (shrink)

This article explores the notion of ‘perfect’ money that Simmel introduces in The Philosophy of Money. Its aim is twofold: first, to connect this idea to his more general arguments about the nature of society and the ambivalence of modernity, and, second, to assess its relevance for contemporary debates about the future of money, especially following the global financial crisis. I argue that Simmel’s concept of perfect money can be understood as utopian in two senses, conceptual and ethical, that correspond (...) to the two interpretations he develops, in Soziologie, of the idea of a perfect society. This sheds light on an aspect of Simmel’s writings that has attracted relatively little attention, namely his views on the relationship between money and socialism. Characterizing this relationship as a ‘formal affinity’, his remarks resonate with a long tradition of thought on monetary utopias that aim not for the abolition of money but its radical transformation as a means of improving society. This tradition is coming to the fore once again today, as the financial crisis has given new impetus to constructing forms of money – for example, LETS, Time Dollars, mutual credit, peer-to-peer lending and digital currencies such as Bitcoin – that provide viable alternatives to big banks. Understood in conjunction with his account of the ‘tragedy’ of individualism in modernity, such resonances demonstrate the enduring relevance of Simmel’s work to the empirical and theoretical investigation of money. (shrink)

Ordinary Language Philosophy has largely fallen out of favour, and with it the belief in the primary importance of analyses of ordinary language for philosophical purposes. Still, in their various endeavours, philosophers not only from analytic but also from other backgrounds refer to the use and meaning of terms of interest in ordinary parlance. In doing so, they most commonly appeal to their own linguistic intuitions. Often, the appeal to individual intuitions is supplemented by reference to dictionaries. In recent times, (...) Internet search engine queries for expressions of interest have become quite popular. Apparently, philosophers attempt to surpass the limits of their own linguistic intuitions by appealing to experts or to factual uses of language. I argue that this attempt is commendable but that its execution is wanting. Instead of appealing to dictionaries or Internet queries, philosophers should employ computer-based linguistic corpora in order to confirm or falsify hypotheses about the factual use of language. This approach also has some advantages over methods employed by experimental philosophers. If the importance of ordinary language is stressed, the use of linguistic corpora is hardly avoidable. (shrink)

The Great Recession has brought with it a renewed interest in Hayek's business-cycle theory, which holds that loose monetary policy generates an unsustainable boom characterized by a lengthening of the capital structure. Hayek's theory has received robust criticism for decades, although the criticisms have varied in quality. Various empirical disconfirmations pose the most serious challenge. The small empirical literature on the subject generally confirms Hayek's predictions about variations in the capital structure, but has not persuasively linked the capital structure to (...) the business cycle. A better option, then, may be to abandon Hayek's business-cycle theory, preserve his capital theory, and graft it onto a Keynesian or monetarist understanding of the business cycle that is more consistent with modern macroeconomics. (shrink)

In the 1930s, socialist economists used the assumptions of equilibrium theory to argue that a central planner could coordinate supply and demand from above. This argument led Hayek, over the years, to try to explain the limitations of equilibrium theory and, conversely, to explain how capitalism functioned without the assumptions of equilibrium being met. In a changing world of agents who are ignorant of the future, how is a functioning market “order” possible? One answer can be found in Hayek's argument (...) that evolved rules make people's future behavior more predictable and, more to the point, that they contain previously accumulated knowledge that provides the building blocks for future economic growth. Hayek's evolutionary theory was flawed, however, in failing to explain how people can know which rules are responsible for their success or failure so that they persist in using those rules and pass them forward in time. However, markets provide immediate feedback about success and failure through profits and losses. An evolutionary explanation of the economy would have permitted Hayek to dispense with the metaphor of general equilibrium, which was increasingly irrelevant to his understanding of economic order. (shrink)

This paper defends the action-theory of the Will, according to which willing G is doing F (F≠G) in order to make G happen. In a nutshell, willing something is doing something else in order to bring about what we want. -/- I argue that only the action-theory can reconcile two essential features of the Will. (i) its EFFECTIVITY: willing is closer to acting than desiring. (ii) its FALLIBILITY: one might want something in vain. The action-theory of the will explains EFFECTIVITY (...) by claiming that each time one wants G, one accomplishes the action of doing F ( it is argued following Von Wright that every action has a result as a proper part, here F). And the action-theory explains FALLIBILITY by claiming that although willing G entails making some F happen –the result of the action of willing–, it does not entail that G –the intended consequence of our willing– will happen. -/- By contrast, behaviorist accounts of the will (which merely equate willing with an action) captures its EFFECTIVITY but loose its FALLIBILITY. And volitionist accounts (which introduce naked volitions lacking any essential results) capture the FALLIBILITY of the will, but loose its EFFECTIVITY. -/- I consider disjunctivist accounts of trying (such as O'Shaughnessy and Hornsby's ones) as an alternative way to reconcile EFFECTIVITY and FALLIBILITY. I argue that though the view manages to reconcile these two constraints, it does so only at the price of gerrymandering the concept of willing (or trying): failed tryings end up having nothing in common with successful ones. -/- I then address three objections to the action-theory of the will, to the effect (i) that not all actions have a result (ii) that total failures are possible (iii) that willing is more fundamental than acting. I argue in answer (i) that all actions have results (results which can be irrelevant to the production of the goal, or which can be merely mental images), (ii) that total failures do not correspond to acts of will, but to mere desires or wishes, and (iii) that given the possibility of basic actions, acting has to be more fundamental than willing (and trying). (shrink)

It is generally recognized that descriptive and normative individualism are logically independent theses. This paper defends the stronger view that recognition of the falsehood of descriptive individualism is crucial to understanding the evolutionary and developmental basis of normative individualism. The argument given for this is not analytic; rather, it is based on empirical generalizations about the evolution of markets with specialized labor, about the nature of information processing in large markets, and about the socialization of human children.

Abstract The market is sometimes thought to be a largely neutral means for coordinating cooperation among strangers under complex conditions because it is, as Hayek noted, a ?spontaneous order.? But in fact the market actively shapes the kinds of values it rewards, as do other spontaneous orders. Recognizing these biases allows us to see how such orders impinge on one another and on other communities basic to human life, sometimes negatively. In this way we may come to acknowledge the inevitability (...) of placing limits on spontaneous orders. (shrink)

Tyler Cowen's “New Austrian” theory of business cycles is based on risk analysis and the assumption of rational expectations. This contrasts with the Old Austrian view, which questions the feasibility of measuring economic risk. Despite Cowen's admirable eclecticism, the way he applies risk analysis to business cycles suffers from serious inconsistencies, and his use of rational expectations is mistaken in the face of economic complexity—a phenomenon that was accurately understood by the traditional Austrians.

One so-called paradox of blackmail concerns the fact that “two legal whites together make a black.” That is, it is licit to threaten to reveal a person’s secret, and it is separately lawful to ask him for money; but when both are undertaken at once, together, this act iscalled blackmail and is prohibited. A second so-called paradox is that if the blackmailer initiates the act, this is seen by jurists asblackmail and illicit, while if the blackmailee (the person blackmailed) originates (...) the contract, this is commonly interpreted as bribery and is not illicit.But these are paradoxes only for legal theorists innocent of libertarian theory. The authors use that perspective to reject the claim thatblackmail should be unlawful. If this act were legalized, then both paradoxes would disappear, precisely their contention. (shrink)

Non-consequentialist libertarianism usually revolves around the claim that there are only “negative,” not “positive,” rights. Libertarian nega- tive-rights theories are so patently problematic, though, that it seems that there is a more fundamental notion at work. Some libertarians think this basic idea is freedom or liberty; others, that it is self-ownership. Neither approach is satis- factory.

For several decades, economists have been preoccupied with an attempt to place their entire subject on the ‘sound microfoundations’ of general equilibrium theory, with its individualistic premises. However, this project has run into seemingly intractable problems. This essay examines underlying questions such as the appropriate building block of analysis and the structure of explanation in economics. The examination of biology is found to be instructive, due to debates concerning the limitations of reductionism within that discipline. The final part of the (...) paper argues for the autonomy of a non‐reductionist macroeconomics, based on the institution as the unit of analysis. (shrink)

This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business's societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale. (shrink)

JEL Classification: B41, B53, B31, B2, P48, A12 Abstract: Wittgenstein’s rule-following paradox has important implications for two aspects of Austrian theory. First, it makes it possible to reconcile the Misesian, Rothbardian, and hermeneutical approaches to methodology; second, it provides a way of defending a stateless legal order against the charge that such an order lacks, yet needs, a final arbiter.

Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. Many large capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so, thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of increasing economic profit is fully consistent with the corporation doing good for society. However, there is little (...) justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs. (shrink)

This paper reviews Aristotle’s problematic relationship with modern economic theory. It argues that in terms of value and income distribution theory, Aristotle should probably be seen as a precursor to neither classical nor neoclassical economic thought. Indeed, there are strong arguments to be made that Aristotle’s views are completely at odds with all modern economic theory, since, among other things, he was not necessarily concerned with flexible market prices, opposed the use of money to acquire more money, and did not (...) think that the unintended consequences of human activity were generally beneficial. The paper argues however, that this interpretation goes too far. The Benthamite neoclassical theory of choice can be seen as a dumbing down of Aristotle’s theory, applicable to animals, not humans. Adam Smith and Karl Marx were deeply influenced by Aristotle’s work and both started their main economic works with Aristotle: Smith ultimately rejecting, and Marx ultimately developing Aristotle’s views of the use of money to acquire more money. Possibilities for the future development of a new Aristotelian Economics are explored. (shrink)

The debate over gun control has taken place in complete isolation from geographical considerations. It focuses on, for the most part, whether legalization would bring about more or fewer accidental deaths, and murders of innocents, than prohibition, and in the USA on the precise meaning of the second amendment to the Constitution. However, these deliberations, argue the authors of the present paper, can be enriched by incorporating into them a spatial context. When this is done, and they are combined with (...) the property rights philosophy of libertarianism, some very different conclusions are drawn. (shrink)

In “Evictionism and Libertarianism,” published in this journal, Walter Block defends the view that, although the fetus is a human being with all the rights to its body, it may nonetheless be evicted from the woman’s body as a trespasser, provided the pregnancy is unwanted. We argue that this view is untenable: the statement that the unwanted fetus is a trespasser does not follow from the premises that the fetus uninvitedly resides in the woman’s body and that the woman is (...) a full self-owner. For this statement to follow, one more statement would have to be true; namely, the woman would have to hold her self-ownership rights specifically against the fetus, and for this to be the case, the fetus would have to have a correlative duty to the woman to abstain from interfering with her body. This statement, however, is false. (shrink)