Ludwig Von Mises - The Ultimate Foundation of Economic Science - An Essay on Method

8/14/2019 Ludwig Von Mises - The Ultimate Foundation of Economic Science - An Essay on Method

1/158


2/158


3/158


4/158


5/158


6/158


7/158


8/158


9/158


10/158


11/158


12/158


13/158


14/158


15/158


16/158


17/158


18/158


19/158


20/158


21/158


22/158


23/158


24/158


25/158


26/158


27/158


28/158


29/158


30/158


31/158


32/158


33/158


34/158


35/158


36/158


37/158


38/158


39/158


40/158


41/158


42/158


43/158


44/158


45/158


46/158


47/158


48/158


49/158


50/158


51/158


52/158


53/158


54/158


55/158


56/158


57/158


58/158


59/158


60/158


61/158


62/158


63/158


64/158


65/158


66/158


67/158


68/158


69/158


70/158


71/158


72/158


73/158


74/158


75/158


76/158


77/158


78/158


79/158


80/158


81/158


82/158


83/158


84/158


85/158


86/158


87/158


88/158


89/158


90/158


91/158


92/158


93/158


94/158


95/158


96/158


97/158


98/158


99/158


100/158


101/158


102/158


103/158


104/158


105/158


106/158


107/158


108/158


109/158


110/158


111/158


112/158


113/158


114/158


115/158


116/158


117/158


118/158


119/158


120/158


121/158


122/158


123/158


124/158


125/158


126/158


127/158


128/158


129/158


130/158


131/158


132/158


133/158


134/158


135/158


136/158


137/158


138/158


139/158


140/158


141/158


142/158


143/158


144/158


145/158


146/158


147/158


148/158


149/158


150/158


151/158

Index 141Co-operation

individualism, 79peaceful, 92, 97principle, 88production, 126social, 88, 108society, 61, 76, 78, 87, 91, 105

Copernicus, N icolaus, 119Correlations and functions, 63Creation, 52

Darwin, Charles, 15Decision-making, 69;see also Choos-

ing

Deductive theories, 12, 21, 44, 64Definiteness, quantitative, 62-63Descartes, Rene*, 29Despotism, 92Determinism, 28, 53, 61, 115Dilthey, W., 135(9)Distribution, national income, 85Divine right, 107, 117Dualism, 40, 115Du Bois-Raymond, P. D., 117

Econometrics, 63Economicsapproach, 108-109behavioral sciences, 39, 101-103business, 7capitalism, 122climate of opinion, 90-91collectives, 108confirmation and refutability, 69-70consumer sovereignty, 112-14epistemological neglect, 3errors concerning scope and

method, 73-103government, perfect system, 94-101history, 66, 73hypostatization, pitfalls, 78-80identified, 73individualism, methodological, 80-

83legal terminology, 109-12macroeconomics, 83-87marginal utility, 76measurement, 66motives, 74-77omnipotence of thought, 91-94praxeology, 3-4, 101; see also

Praxeology

prediction, 59, 60, 66, 67-69quantification, 63reality and play, 87-90research fable, 73-74theory and practice, 77-78thinking, 91, 104-14trend doctrine, 67-69uncertainty of the future, 64-66understanding, 66

Economists, classical, 74, 106Eddington, Arthur Stanley, 136(3)Emerson, R. W., 134(1)Empedocles, 42Empiricism

apriorism, reaction, 12experience, 27explained, 21knowledge of universe, 63natural sciences, 115probability, 23, 27-28pure, 117

Ends and m eans.See Means and endsEngels, Friedrich, 129England, 110, 137(6)Enlightenment, 106Entrepreneurs

ownership, 111savings, 86see also Market economy

Environmentmeasurement, 62praxeological reasoning, 44shaped, 46study, 36understanding, 48valuation, 37see also Universe

Epistemology

action, schemes, 120-21characteristic trait, 3defined, 1economics, 3human mind, 17individualism, 82, 108monism, 115-24natural science, case, 119-20permanent substratum, 1-2positivism, 118-19, 122-24, 129-33praxeological theorems, 70, 111property, 111rationalism, 2, 12, 76, 90socialistic lesson, 32thinking, 2


152/158

142 Indextotalitarianism, 129-33ultimate given, 54see also Knowledge

Equalization, income, 87Eternity, 36, 52Etymology, 137(3)Euclidian geometry, 5, 12Exchange, 89, 108Experience

a priori, 15, 18, 70capitalistic, 132empiricism, 27historical, 42, 45, 74hum an action, 15, 18, 69interpretation, 43knowledge, 12, 20natural science, 53, 102, 115, 119positivist doctrine, 53, 71regularity, 20, 22research, 102restricted, 69totality, 45, 52

External worldhuman action, 6, 36monism, 116mutual constant relations, 40reality, 6, 36, 42regularity, 21see also Universe

Feuerbach, L. A., 116Finality, 15, 29, 36-37, 43Forecasting, 59, 60, 64, 66-69France, 107Free will, 57-59Freud, Sigmund, 91Future, 46, 64-66

Galilei, Galileo, 119Gambling, 69Games, 89, 135(6), 137(7)Geisteswissenschaften, 9Genius, 61Geometry, 12, 17Gestalt psychology, 71Glorious Revolution, 137(6)Government

anarchist, 98, 99authoritarian, 107British system, 110, 137(6)

collectivistic, 79, 81, 106, 108communist, 137(3)contract society, 109

despo tic, 92French, 107income, 85

inflation, 85liberal, 92, 138(4)majority and minority rule, 92, 107nationalized, 80one-party system, 137(3)perfect system, 94, 101popular rule, 137(6)representative, 92, 107, 122research, 74socialistic. See Socialismtotalitarian, 99, 128, 129-33

Greeks, 138(2)Group relations, 81Haeckel, Ernst Heinrich, 116, 119Heisenberg principle, 62Henle, Paul, editor, 136(10)Heraclitus, 1Historicism, 68History

cosmic, 1, 39, 60defined, 45economics, 66, 73experience, 42, 45, 74hum an action, 43, 45inevitability, 59logical character, 45-46Marxism, 32philosophy, 7political thought, 96positivism, 118-19quantification and understanding,

66research, 55, 73, 101science, 45, 102, 118, 129

statistics, 55theory, 16thymology, 47ultimate given, 45

Holistic system, 84Homo sapiens, 2, 15, 17, 64, 98;see

also Man; Action, humanHuman action. See Action, humanHuman mind

apriorism, 14, 17, 19body, problem, 116causality, 20

comprehension, 35concept, 11-33epistemology, 17


153/158

Index 143induction, 21infinite, 52legal terminology, 108-109

logical structure, 11-14, 16materialism, absurdity, 30natural science, 55positivism, 126probability empiricism, 23, 27problems, 104-105"social sciences," 105-108theories developed, 14, 64, 104understanding, 48

Human problems, zoological ap-proach, 104-105

see also Action, humanHumanities, 9Hume, David, 12, 92Hypostatization, pitfalls, 78-80Hypotheses, 14-17, 70

Ideas, 57, 91Ideoolgy, 81Imaginary construction, 42Income, national, 85, 87Individualism

achievements, 129climate, 128collectivism, 82, 108cooperation, 79free will, 58human action, 80market economy, 108methodological, 80-83ultimate given, 45Western, 107

Induction theory, 21-27Inequality, income, 85Inevitability, 59-61

Infinite, necessity and volition, 52-53Inflation, 85Innovation, 130Institutionalism, 68Irregularity, 37Italian Risorgimento, 80

Kant, Imm anuel, 12, 42Keynes, John N eville, 136(1)Knowledge

activistic basis, 34-51apriorism, 4causality and teleology, 7certainty and uncertainty, 63-64empiricism, 63

function, 35genius, 61logical character, 45man and action, 34mysticism, 2praxeology, 64regularity, 21source, 27theory, 16thymological method, 46valuation, 37-38

Kotarbinski, Tadeusz, 42, 135(6)

Labor, division, 97, 126Lalande, 135(2)La M ettrie, Julien O ffray de, 116Language, construction, 21Law

civil, 110cosmic, 104Euclidian, 14macroscopic physics, 23man-made, 100microscopic, 84molar, 84probability, 23, 27public, 109regularity, 56statistics, 23, 26, 56tax, 85terminology, 109

Legal institutions, 110Leibniz, Gottfried, W., 12Lenin, V ladimir Ilyich, 131, 138(7)Liberalism, 92, 138(4)Lilienfeld, Paul de, 4Lobachevsky, N ikolai Ivanovich, 5Locke, John, 12

Logichistory, 45-46human mind, 11-14, 16positivism, 5, 23, 70praxeology, 44-45regularity, 23

Luce, R. Duncan, 136(5)

Mach, Ernst, 131Macroeconomics, 83-87Maine, Henry Sumner, 109Majority rule, 91, 107Man

action, 2, 4, 7, 34-36free will, 57


154/158


155/158

Index 145technology, 65theology, 36, 118valuation, 37

N atural selection, Darwinism, 15N aturalism, 104N ecessity

free will, 57-59inevitability, 59-61infinite, 52-53statistics, 55-57ultimate given, 53-55volition, 52-61

N egation, defined, 52N eoauthoritarianism, 107N eoempiricism, 27

N eologism, decision-making, 69N eopositivism, 131N eum ann, John , 136(5)N eurath , O tto, 121, 131, 135(3-4)N ewton, Isaac, 129N ietzsche, Friedrich W ilhelm, 2N umerical expression, 55

O mniscience, 35, 91O ne-party system, 137(30)O wnership, 110

Panempiricists, 14Panphysicalism, 22Parkinson, N . C , 137(11-14)Party, derivation of term, 137(3)Peace, attaining, 137(9)Phenomena

external, 62observable, 54psychological, 47, 71, 135(9)research, 7, 55, 60, 73, 101valuation, 37, 48, 65, 75, 83, 112

Physicalism, 39Physicians, 6Physics, 23, 38Pythagoras, 17Planning, 66, 129; see also Govern-

mentPlato, 95, 99, 132Play and reality, 87-90Pneumatology, 9Poincare", Henri, 138(1)Political science, 17, 95, 99, 109Politics, 87, 91, 94, 96Polylogism, Marxian, 131Popper, Karl, 69, 70, 120Popular rule, 137(6)

Positivismaim, 38consequences, 132-33

cult of science, 128-29doctrine, 119experimental methods, 53, 71fallacies, 122-24finalism rejected, 36historical setting, 118-19human condition, 126-28justified, 116logical, 5, 23, 70Marxian, 119, 131measurement, 63metaphysical doctrine, 54, 116, 120monism, 118-19, 122-24panphysicalism, 22pitfalls, 119science, 63, 128-29theology, 120totalitarianism, 129-33understanding, 49universe, misinterpretation, 125-26Western civilization, crisis, 125-33

Practice and theory, 77-78Pragmatism, 13Praxeology

action, hum an, 2-3, 7, 9, 41aprioristic doctrine, 4, 42, 44behavioral sciences, 101causality and teleology, 6certainty and uncertainty, 70-72choosing, 69constant relations, 40, 56, 62deductive reason ing, 12, 21, 44, 64economics, 3-4, 101environment, 44epistemology, 70, 111

examination of theorems, 70-72finality, 43human action, 2-3, 7, 9, 41knowledge, certain, 64logical character, 44-45observations, 1-9predictions, 59, 64reality of external world, 6reasoning, 44sciences of human action, 9social conditions, 111thinking, starting point, 4-6unscientific theories, 70see also Sciences

Precapitalistic age, 111, 112


156/158

146 Index

Prediction, 59, 60, 64, 66-69Prices, market, 75, 84Probability theory, 23, 27-28

Productionco-operation, 126factors, 111goods, 110labor, division, 97, 126materialism, 31nationalized, 80see also Consumers

Profits and loss, 84, 85, 89, 111;seealso Capitalism

Progress, 53, 65, 126Property, 110

Propositions, synthetic, 5Psychology, 47, 71, 135(9)Public opinion, 74, 137(10)Purchasing power of money, 85Pythagoras, 17

Quantification and understanding inacting and in history, 6 1, 62-63

Racine, Jean B., 29Raiffa, H., 136(5)Railroads, 25Rationalism, 2, 12, 76, 90Reality

a priori representation, 19-21classical view, 75cognition, 41evaluation, 66external world, 6, 36, 42interpretation, 30, 64observation, 18play, 87-90purposeful striving, 36

Reasoningacting m an, 2attributes, 11certainty, 44deductive, 12, 21, 44, 64human. See Human mind

Refutability and confirmation, 69-70Regressus in infinitum,115Regularity

anticipation of events, 49concatenation, 24, 27

experience, 20, 22external world, 21human action, 49

knowledge, 21law, 56logical positivism, 23

natural sciences, 27, 39physics, 23statistics, 55

Reichenbach, Hans, 14, 28,134(3, 8,11-12)

Relevance principle, 102Religion. See TheologyResearch

causality, 7experimental, 102fable, 73-74government, 74historical, 55, 73, 101scientific, 53

Revolutions, 60, 97, 137(6)Ricardo, David, 78Risorgimento, 80Rougier, Louis, 134(1-2), 137(2)Russian communism, 137(3);see also

Marx, KarlRussell, Bertrand, 25, 26

Saint-Simon, Claude Henri, 129Savings, 86Schriftgiesser, Karl, 137(18)Schumpeter, Joseph, 136(1)Science

aprioristic, 68behavioral, 39, 101-103branches, 41-44, 77defined, 135(2)Greek, 138(2)historical, 45, 102, 118, 129human action. See Action, humanmental, 136(9)metaphysics, 7, 39, 54, 116, 118, 120moral, 9, 30, 105natural. See N atural sciencesphysics, 23, 38political, 17, 95, 99, 109positivism, 63, 128-29progress, 53research, 53social, 79theology, 37ultimate given, 23unified, 38-41, 121, 124, 129, 131

Seligman, E. R. A., 37(5)Semantics, 21, 38, 80, 108Sense data, 16, 20, 71


157/158

Index 147

Slang, 135(2)Social engineers, 40, 94, 121Social sciences, 79, 105-108Socialism

anticapitalistic device, 130attraction, 123characteristics, 99decisions, 69Lenin's views, 131lesson, 31, 32market economy, 108promoted, 94

Societyaggressive, 99agricultural, 113

class, 130collectivistic, 79, 81, 106, 108contract, 109co-operation, 61, 76, 78, 87, 91, 105industrial, 113misinterpretation, 78semantics, 80, 108

Sociology, 30, 101, 131Sodium, 40Somatology, 9Speculation, 50, 66, 67Standard of living, 127, 128Static equilibruim, 42Statistics

defined, 55historical research, 55human, 26, 55laws, 23, 26, 56national income, 85necessary and volition, 55-57regularity, 55

Succession of events, 63Superstitions, 119Survival, 34Syndicalism, 130

Taine, Hippolyte, 135(9)Tautology, 17Tax laws, 85Technology, 62, 65, 127Teleology, 6-8Tennyson, Alfred, 137(1)Theology

Christian, 105methods, 117

morality, 9, 30, 105natural science, 36, 118philosophy, 106, 117

positivism, 120teachings, 2

Thinking

achievement, 20consumer sovereignty, 112-14economics, implication and neg-

lect, 104-14enemy, 78epistemological, 2generated, 64, 96legal terminology, 109-12om nipo tent, economics, 91-94praxeological, starting point, 4-6"social sciences," 105-108zoological approach, 104-105

Thymology, 46-51Totalitarianism, 99, 128, 129-33Totality, 45, 52Trade, advantages, 89, 108Trend doctrine, 67-69Truth, 33, 35; see also Knowledge

Ultimate givendeterminism, 53epistemology, 54individuality, 45necessity and volition, 53-55science, 23, 117truth, 35

Uncertainty. See Certainty and uncer-tainty

Understandingenvironment, 48historians, 27measurement, 66positivism, 49quantification in acting and in

history, 66valuation, 48, 50

Unified science, 38-41, 121, 124, 129,131

Universeanalysis, 32, 53conscious conduct, 11divine intervention, 117empirical knowledge, 63external world, 6, 21, 36, 40, 42,

116free will, 57positivism, 125-26

totality, 45, 52Utilitarianism, 105Utopianism, 97, 99


158/158

148 IndexV aluation

action, 83classical economics, 74, 106

consumer, 75, 84, 89, 111environment, 37knowledge, 37-38market economy, 75, 112natural sciences, 37prediction, 59, 60, 64, 66, 67understanding, 48, 50

V ienna Circle, 13V iolence, 60, 97, 137(6)V ogt, Karl, 135(13)V olition

free will, 57-59

inevitability, 59-61infinite, 52-53necessity, 52-61statistics, 55-57ultimate given, 53-55

Western civilization and positivism,98, 125-33

Wicksteed, Philip, 78Wittgenstein, Ludwig, 55, 136(1)World view, 115; see also External

world

Zhukov, 107Zoology, 104-105

Ludwig Von Mises - The Ultimate Foundation of Economic Science - An Essay on Method

Documents

Transcript of Ludwig Von Mises - The Ultimate Foundation of Economic Science - An Essay on Method