In the pages of this journal, a fruitful debate has evolved on the ethical legitimacy of fractional-reserve banking. In this article, we respond to the new arguments raised by Evans as we clarify our position on the unethical and illegitimate nature of fractional-reserve banking. Fractional-reserve banking is not a recent financial innovation but represents a long-standing legal aberration. The co-mingling of two mutually exclusive financial contracts, deposit and loan, confounds the contracting parties’ purposes, intents, rights, and obligations. As a result, (...) it creates unsolvable legal difficulties and ethical dilemmas. While these problems are most evident in the case of a bank run, they also arise when trying to answer the simple question of “who owns a deposit?”. (shrink)

Although Schütz’s relationship with the Austrian school of economics was an intimate one, Lavoie and other Austrian scholars have challenged (a) Schütz’s characterization of praxeology as an objective science of subjective phenomena and (b) the ability of Schütz’s phenomenology, which emphasizes the subjective meanings of actors, to really make sense of spontaneous social orders. It is my contention, however, that Schütz can be adequately defended against both these charges. First, for Schütz, the claim that social science is an objective science (...) of subjective phenomena need not imply apodictic apriorism nor solipsism. Second, in spite of his emphasis on subjective meanings, the study of spontaneous social orders need not be difficult to justify. (shrink)

Although Schütz’s relationship with the Austrian school of economics was an intimate one, Lavoie and other Austrian scholars have challenged (a) Schütz’s characterization of praxeology as an objective science of subjective phenomena and (b) the ability of Schütz’s phenomenology, which emphasizes the subjective meanings of actors, to really make sense of spontaneous social orders. It is my contention, however, that Schütz can be adequately defended against both these charges. First, for Schütz, the claim that social science is an objective science (...) of subjective phenomena need not imply apodictic apriorism nor solipsism. Second, in spite of his emphasis on subjective meanings, the study of spontaneous social orders need not be difficult to justify. (shrink)

This article theorises the contemporary convergence of neoliberal and fascist principles by examining the thought of political actors in the 1930s and 1940s who were active in both neoliberal and fascist organisations. I suggest that a sympathy for fascism formed a minor but significant strand of early neoliberal thought, and that unpacking the logics that led particular thinkers and political actors to believe that fascism was compatible with neoliberalism can shed light on the contemporary political moment. Based on my reading (...) of early ‘neoliberal fascists’, I theorise three points of convergence. The first was a belief that socialism had to be opposed by all possible means, including violence and the repression of popular democracy. The second was a racialized understanding of the underpinnings of the market economy, leading to an acceptance of the necessity of racial exclusion. Thirdly, both fascist and neoliberal thinkers believed that patriarchy was a necessary feature for the reproduction of capitalism, and hence that traditional gender roles had to be preserved against pressures for social change. In theorising this convergence, I also gesture to how the overlap of neoliberalism and fascism can be witnessed in the contemporary milieu, with a focus on the libertarian Mises Institute. (shrink)

Logical empiricism and the Austrian School of economics are two of the internationally most influential intellectual movements with Viennese roots. By and large independently of each other, both have been subject to detailed historical and philosophical investigations for the last two dec-ades. However, in spite of numerous connections and interactions be-tween the two groups, their relationship has captured surprisingly sparse attention. My dissertation focuses on the many-faceted juxtaposition of two supposedly antagonistic championsof Viennese Late Enlightenment: logical empiricist Otto Neurath and (...) Austrian economist Ludwig Mises. I rationally reconstruct and critically compare their epistemological, meth-odological, and economic positions and demonstrate that a closer look reveals more compatibilities and similarities than acknowledged by the received view and by the protagonists themselves. Over and above the historiographic task of challenging and amending this received view, the analytic components of my thesis inform contemporary debates in phi-losophy, politics, economics, and other sciences. (shrink)

An economic man, i.e., the leading role in economic ethics, has been deeply investigated in our study considering a human being’s economic behavior and the hypotheses for an economic man in traditional economics based on M. Weber’s and S. N. Bulgakov’s Christian economic man. Among various channels to study business ethics and economic ethics, we chose the definition of an economic man given by Weber and Bulgakov to review a hypothesis about a rational economic man in economics and discussed L. (...) von Mises’s and A. Sen’s contentions for an economic man’s substantive freedom and innermost being. The issue deserved to be further investigated by scholars who concern business ethics and economic ethics consists in reconciling egotism and altruism commonly embedded in an economic man’s heart and boosting more altruistic economic men. (shrink)

Les représentants de l'École autrichienne sont ici mis sous la même bannière pour autant seulement qu'ils ont été unanimes à revendiquer pour les postulats de l'économie pure, les «lois exactes» de la théorie économique, c'est-à-dire de la théorie marginale de l'utilité, un statut particulier en ce sens qu'ils tenaient pour impossible, voire absurde ou simplement inutile de soumettre les postulats en cause à des tests empiriques. L'apriorisme dont ils se réclament, fait à juste titre la marque de commerce de l'École (...) marginaliste autrichienne; Menger en a fourni les principes, von Mises la justification, et Rothbard s'est occupé de propager la doctrine de l'autre côté de l'Atlantique. (shrink)

This paper aims to show errors in common methodology of reasoning about macroeconomic theory. The error comes from confusion about descriptive and scientific methods of inquiry being used as a means of justifying conclusions with a normative basis. I will argue that many tools used in theorizing about the political economy that are thought of as able to express an isolated variable proving a normative point, actually contain normative assumptions which impact the soundness of the conclusion. The hidden values generally (...) serve to justify the status quo. Looking at my argument from a metaperspective, I argue that some popular methodology winds up in the general state of circular reasoning. I will try to weave two arguments together, the first is showing how economic concepts are value-laden, and also that they are implicit values of ideology, and operate as a powerful tool for the status quo. The ideology learns that things must be what they are, because the rest of the ideology seeks to justify it. There is both a factual and a value-driven thesis to this paper. Using examples I show how economic concepts that are thought of as being value neutral, are actually implicitly holding values that uphold the status quo and the growing tides of income inequality. I also wish to demonstrate how ideology constructs the common understanding, and how this effort keeps the populace from seeking emancipatory economic ideals and tax reform. (shrink)

The disagreement about intertemporal coordination between Austrians and Keynesians is explained pointing out to differences both in the way expectations and motivations are treated and the methodological principles assumed by each view. Austrians believe that research should proceed showing first what guarantees a successful coordination in individualsŠ plans, and only latter showing which could hinder the “natural” course. Keynes, on the contrary, do not start with any ideal state of affairs, but allows economies to work either “good” or “bad” according (...) to the prevailing expectations among entrepreneurs. In this way uncertainty and expectations are fully incorporated into economic theory. A link between Austrian approach and popperian situational analysis is suggested. (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)

Associate Professor | Director and President Department of Philosophy | Molinari Institute 6080 Haley Center, Auburn University Auburn AL 36849 USA email: [email protected] URL: praxeology.net..