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)

A central theme within political theory is the rational management of society based on science and technology. This idea involves several problems concerning the philosophy of technology and social engineering. Some of these difficulties, which are discussed in this essay, are (1) the scientific identification of objective needs and what we can do with it with respect to rational choice, (2) expert-management versus user-management in technical matters, (3) the nature of technology and its consequences for planning, and (4) the nature (...) of technology and its consequences for democratic social engineering. (shrink)

We identify a normative paradox of responsible management education. Business educators aim to promote social values and develop ethical habits and socially responsible mindsets through education, but they attempt to do so with theories that have normative underpinnings and create actual normative effects that counteract their intentions. We identify a limited conceptualization of freedom in economic theorizing as a cause of the paradox. Economic theory emphasizes individual freedom and understands this as the freedom to choose from available options. However, conceptualizing (...) individuals as profit-maximizing actors neglects their freedom to reflect on the purposes and goals of their actions. We build on the work of pragmatist philosopher John Dewey, who distinguishes between habitualized and creative problem-solving behaviors, conceptualizes knowledge construction as a process of interdependent scientific social inquiry, and understands actors as having the freedom to determine what kind of people they wish to be. We apply pragmatist theory to business education and suggest equipping students with a plurality of theories, supplementing neoclassical economics with other economic perspectives and views from other disciplines on economic behavior. Moreover, we suggest putting students into learning situations that require practical problem solution through interdependent social inquiry, encouraging ethical reflection. In doing so, we contribute by linking the problematic conceptions of freedom identified in economic theorizing to the debate on responsible management education. We conceptualize a pragmatist approach to management education that explicitly re-integrates the freedom to discursively reflect on the individual and societal purpose of business activity and thereby makes existing tools and pedagogies useful for bringing potential freedom back into business. (shrink)

From the perspective of a realist philosophy of social science, the recent explosion of criticisms of mainstream economics, including reinvigorated Austrian criticism, provides what seems like a rich opportunity to join what are too often disjoined disciplinary interests and inquirers, and also to extend the arguments not only as regards the realist theory of social science, but also as regards the implications of this approach for economics. I begin with a minimum sketch of key features of realist philosophy of science (...) as I understand it. The central difference turns on the role and nature of explanation and of theory, between what is frequently termed ‘deductivism’, and on an alternative in which explanation requires the articulation of a causal mechanism, for example, the mechanism provided by molecular chemistry that gives us an understanding of oxidation. I take the position that in social science, explanation requires social causal mechanisms. I consider the Austrian contribution from this point of view and conclude with some hints regarding how the foregoing bears on our understanding of capitalism and socialism. (shrink)

Liberalism and political polarization: The customary classification of the ideological doctri‑ nes in democratic systems, which expanded along a left–right axis, is nowadays obsolescent and has been deconstructed. At the same time, the close and strong connection between de‑ mocracy and liberalism, on which the primary model of liberal democracy was established, has been broken in many places of the world. The emerging of illiberal democracies has made the liberal component the main criterion for the classification of contemporary political systems, (...) instead of dividing them into democratic and nondemocratic systems as before. Numerous ideological options could also be classified as being contrary to the liberal one. Liberalism has thus become important in the typologies and analyses of contemporary political systems and ideological options as the opposite to those systems on many new axes. (shrink)

Karl Popper's methodology highlights our scientific ignorance: hence the need to institutionalize open‐mindedness through controlled experiments that may falsify our fallible theories about the world. In his endorsement of “piecemeal social engineering,” Popper assumes that the social‐democratic state and its citizens are capable of detecting social problems, and of assessing the results of policies aimed at solving them, through a process of experimentation analogous to that of natural science. But we are not only scientifically but politically ignorant: ignorant of the (...) facts that underpin political debate, which are brought to our attention by theories that, as Max Weber emphasized, can be tested only through counterfactual thought experiments. Public‐opinion and political‐psychology research suggest that human beings are far too unaware, illogical, and doctrinaire to conduct the rigorous theorizing that would be necessary to make piecemeal social engineering work. F.A. Hayek realized that the public could not engage, specifically, in piecemeal economic regulation but failed to draw the conclusion that this was due to a specific type of political ignorance: ignorance of economic theory. (shrink)

In Capitalism and the Jews, Jerry Z. Muller attempts to resolve Milton Friedman's paradox: Why is it that Jewish intellectuals have been so hostile to capitalism even though capitalism has so greatly benefited the Jews? In one chapter Muller answers, in effect, that Jewish intellectuals have not been anticapitalist. Elsewhere, however, Muller implicitly explains the leftist tendencies of most intellectuals—Jewish and gentile—by unspooling the anticapitalist thread in the main lines of Western thought, culminating in Marx but by no means ending (...) with him. Thus, Milton Friedman saw a paradox where none existed. This may have been because Friedman was an economist, and economics is the one strand of Western thought that is, by and large, procapitalist. To an economist, opposition to capitalism may be paradoxical; to noneconomists, economics is alienating in its form and in its content. There is thus no mystery as to why intellectuals, including Jewish intellectuals, tend to shun economics and therefore gravitate to the left. (shrink)

This commentary suggests that the ongoing malaise of biomedical research results from adopting a doctrine that is incompatible with the principles of creative scientific discovery and thus should be treated as a mental rather than somatic disorder. I overview the progression of the malaise, outline the doctrine and the history of its marriage to science, formulate the diagnosis, justify it by reviewing the symptoms of the malaise, and suggest how to begin to cure the disease.