It has often been argued that John Stuart Mill's normative economics is independent both of his positive economics of production and his liberal normative political philosophy of liberty. In this chapter I seek to show why we should reject this interpretation, by calling into question both the sharp distinctions between production and distribution, and economic and civil liberty. Following Lionel Robbins I argue that Mill is firmly rooted in the classical tradition of political economy and, indeed, that (...) throughout his social thought his primary value is liberty. (shrink)

The first decades of the twentieth century saw the emergence of Calvinist economics in the Netherlands. This clearly normative approach to economics was inspired by Abraham Kuyper and was criticized by mainstream economists from the outset. It would eventually disappear under pressure of positive economics, but survived until at least the middle of the century. Calvinist economics itself was highly critical of classical economics and, unlike the neo-classical school, strove after an entire reformation of economic thought. Calvinists (...) writers like T. de Vries, P. A. Diepenhorst, J. A. Nederbragt and J. Ridder did not constitute a school of economic thought, but nevertheless shared some fundamental ideas such as the influence of world views on economics, the existence of divine ordinances for the economic domain, and the central place of man in God’s plan for the economy. In this article, I describe the rise, sources of inspiration, fundamentals, aim and methodology of Calvinist economics. Although the perspective of this article is historical, this episode from the history of economic thought may inform us about the relationship between Christianity and the science of economics as well as that between economics and the economic crisis. (shrink)

This thought-provoking book discusses the concept of progress in economics and investigates whether any advance has been made in its different spheres of research. The authors look back at the history, successes and failures of their respective fields and thoroughly examine the notion of progress from an epistemological and methodological perspective. The idea of progress is particularly significant as the authors regard it as an essentially contested concept which can be defined in many ways – theoretically or empirically; locally (...) or globally; or as encouraging or impeding the existence of other research traditions. The authors discuss the idea that for progress to make any sense there must be an accumulation of knowledge built up over time rather than the replacement of ideas by each successive generation. Accordingly, they are not concerned with estimating the price of progress, reminiscing in the past, or assessing what has been lost. Instead they apply the complex mechanisms and machinery of the discipline to sub-fields such as normative economics, monetary economics, trade and location theory, Austrian economics and classical economics to critically assess whether progress has been made in these areas of research. -/- Bringing together authoritative and wide-ranging contributions by leading scholars, this book will challenge and engage those interested in philosophy, economic methodology and the history of economic thought. It will also appeal to economists in general who are interested in the advancement of their profession. (shrink)

This essay reevaluates the work of Herbert Croly, a central figure in American progressivism. Croly contests the thesis that the liberal tradition in the United States is inhospitable to anticapitalist alternatives, drawing from the American past a history of resistance to capitalist wage relations that is fundamentally liberal. This historical reconstruction guides his departure from progressivism. Croly reclaims an idea Progressives allowed to lapse -- that working for wages is a lesser form of liberty. Increasingly sceptical of social welfare legislation (...) to remedy social ills, he argues that America's liberal promise can be redeemed only by syndicalist reforms involving workplace democracy. (shrink)

Neoclassical economic theory in its pretensions to scientific status is founded on one of the variants of a now discredited positivism. Neoclassical economic theory claims that there are two distinct areas of economic research: positive economics and normative economics. The former is assumed to deal with the cognitive as scientific content of economics while the later focuses on welfare or equity issues. I argue that the reliance of the whole theoretical structure of economics on the (...) class='Hi'>normative postulate of rationality renders neoclassical economics a normative discipline. I also argue that neoclassical economics should thus be viewed as an instance of applied ethics rather than as applied mathematics, say. Finally, it is suggested that neoclassical economics, if its scientific pretensions are to be taken seriously, should be absorbed theoretically into general anthropology. (shrink)

When President Reagan and Prime Minister Thatcher adopted the neoliberal doctrine as the paradigm of economics, there was no evidence that the move would have been successful, but thirty years on, the recurrent crises that culminated in 2008 suggest a serious mis-match between expectations and outcomes: a re-examination of the paradigm is in order. This book focuses on Milton Friedman's formulation of the neoliberal doctrine, and analyses two aspects that were essential to turning it into a fully-fledged paradigm: the attribution (...) of scientific status to positive economics, which led to informing public policies on the requirements of the market; and the characterisation of economic freedom as capable of promoting political freedom, which led to identifying free market with democracy. The book exposes Friedman's methodological argument for attributing positive economics scientific status as a failure, and his characterisation of economic freedom as a delusion; it identifies in the emergence as the mainstream in economics of the neoclassical synthesis, which borrowed from Walras' the mathematical treatment of equilibrium but not the ethical and social framework in which it was inscribed, a development that facilitated the transition from the Keynesian to the neoliberal paradigm. Dr. Mosini shows that the gigantic bail-outs carried out courtesy of the public purse, which institutionalised the practice of collectivising losses while keeping profits private, were no accident, but the consequence of the rethinking of the function of lender of last resort according to Friedman's conception of rationality in relation to risk, combined with his interpretation of the 1930s recession. The book concludes that the neoliberal paradigm has served the interests of the economically powerful social strata it was designed to benefit extremely well, but that the deep, and deepening, injustice it has brought about calls for a complete rethinking of the paradigm of economics according to ethical principles respectful of human values. This book should be of interest to students and researchers of Political Economy, Economic Methodology, History of Economic Thought and Philosophy. (shrink)

In these writings by one of our most creative legal philosophers, Meir Dan-Cohen explores the nature of the self and its response to legal commands and mounts a challenge to some prevailing tenets of legal theory and the neighboring moral, political, and economic thought. The result is an insider's critique of liberalism that extends contemporary liberalism's Kantian strand, combining it with postmodernist ideas about the contingent and socially constructed self to build a thoroughly original perspective on some of (...) the most vital concerns of legal and moral theory.Dan-Cohen looks first at the ubiquity of legal coercion and considers its decisive impact on the nature of legal discourse and communication, on law's normative aspirations and claim to obedience, and on the ideal of the rule of law. He moves on to discuss basic values, stressing the preeminence of individual identity and human dignity over the more traditional liberal preoccupations with preference-based choice and experiential harm. Dan-Cohen then focuses more directly on the normative ramifications of the socially constructed self. Fundamental concepts such as responsibility and ownership are reinterpreted to take account of the constitutive role that social practices--particularly law and morality--play in the formation of the self.Throughout, Dan-Cohen draws on a uniquely productive mix of philosophical traditions and subjects, blending the methods of analytic philosophy with the concerns of Continental philosophers to reconceive the self and its relation to ethics and the law. (shrink)

In the development of Roman Catholic social thought from the teachings of the scholastics to the modern social encyclicals, changes in normative economics reflect the transformation of an economic terrain from its feudal roots to the modern industrial economy. The preeminence accorded by the modern market to the allocative over the distributive function of price broke the convenient convergence of commutative and distributive justice in scholastic just price theory. Furthermore, the loss of custom, law, and usage in (...) defining the boundaries of economic behavior led to a depersonalization of economic relationships that had previously provided effective informal means of protecting individual well-being. Hence, recent economic ethics has had to look for nonprice, nonmarket mechanisms for distributive justice. This is reflected, for example, in the shift in attitude from the medieval antipathy toward unions to the contemporary defense of organized labor on moral grounds. (shrink)

In this essay, my point of departure is Bernard Hodgson’s analysis of neo-classical economic theory and his demonstration that neo-classical economic thought is already a branch of normative theory. I undertake to broaden the demonstration by showing that other contemporary conceptions of economics are also irreducibly normative. The essay begins with an overview of Hodgson’s argument strategy, and a discussion of his thesis that economics is a moral science. This illustrates in what way moral presuppositions (...) are at play as core principles that both positivist and normativist economics take for granted. My strategy is to show that alternative conceptions of economics, in particular Schumpeterian accounts of evolution/innovation, and orthodox versions of ecological economics, share with classical and neo-classical economics normative assumptions about the common good, extending Hodgson’s thesis to one about moral science . For then these assumptions (both moral and scientific ) commit economics to unworkable notions of social and environmental optimization that ignore the pure historical contingency of physical, economic, social and cultural conditions. It is concluded that the relationship between facts and values must be fundamentally retheorized. (shrink)

Contemporary economics is dominated by logical positivism, a methodology that emphasizes empirical validation of theories but excludes normative evaluation. Preclassical economics was premised on normative analysis. With the growing socialist movement in the USA, especially among the millennials, who are fixated on moral issues of justice and equality, positive economics is alienated from addressing the normative challenges of socialism. There are, however, basic normative principles from Preclassical thought which can be used to contest socialist moral (...) claims, particularly in economics education. (shrink)

My paper reconstructs Fichte's property theory and political economy in Foundations of Natural Right and The Closed Commercial State. Fichte's theory of property requires the rejection of the classical liberal theory of property rights. Fichte's alternative theory of property, in conjunction with his republican account of the state's role in guaranteeing individual rights, further requires the rejection of a market economy in favor of a planned economy. For Fichte's view entails the normative necessity of a political economy in which (...) the production and transfer of goods and services, across large sectors of the economy, are mandated by the state in advance in accordance with an economic plan. As a result, Fichte reconceives his contractualism as necessarily including the negotiation of a state‐enforced plan for eco- nomic activity. Thus, Fichte's new theory of property in Foundations of Natural Right has extremely wide‐ranging implications for the rest of his political and economic thought. The negotiation of fair terms of political associa- tion characteristic of classical contractualist thought becomes in Fichte's hands the negotiation of an economic plan that defines each individual's socioeconomic rights. I conclude with some brief remarks on the sense in which Fichte's theory serves as a cautionary tale for later socialists. (shrink)

The Nature and Method of Economic Sciences: Evidence, Causality, and Ends argues that economic phenomena can be examined from five analytical levels: namely, a statistical descriptive approach, a causal explanatory approach, a teleological explicative approach, a normative approach and, finally, the level of application. The above viewpoints are undertaken by different but related economic sciences, including statistics and economic history, positive economics, normative economics, and the 'art of political economy'. Typically, positive economics has analysed (...) economic phenomena using the second approach, causally explaining and often trying to predict the future evolution of the economy. It has not been concerned with the ends selected by the individual or society, taking them as given. However, various new economic currents have emerged during the last 40 years, and some of these do assign a fundamental role to ends within economics. This book argues that the field of positive economics should adapt to deal with the issues that arise from this. The text attempts to discern the nature of economic phenomena, introducing the different approaches and corresponding economic sciences. It goes on to analyse the epistemological characteristics of these in the subsequent chapters, as well as their disciplinary inter-relations. This book is a valuable resource for students and scholars of the social sciences, philosophy, and the philosophy of economics. It will also be of interest to those researching political economy, and the development of economic thought. (shrink)

Many normative nonnaturalists find normative naturalism to be completely implausible. Naturalists and nonnaturalists agree, provided they are realists, that there are normative properties, such as moral ones. Naturalists hold that these properties are similar in all metaphysically important respects to properties that all would agree to be natural ones, such as such as meteorological or economic ones. It is this view that the nonnaturalists I have in mind find to be hopeless. They hold that normative (...) properties are just too different from natural properties for it to be possible they are natural properties. I aim to defuse this intuition. “Non-analytic naturalism” has made progress in defusing the intution. According to non-analytic naturalists, normative properties can be represented in thought in two ways, by an ordinary normative concept and by a naturalistic concept, where, the non-analytic naturalist concedes, normative concepts are not, and are not analyzable in terms of, naturalistic concepts. Non-analytic naturalism seems to avoid many of the standard objections to naturalism, but the Just Too Different intuition is resilient in the face of non-analytic naturalism, for even if one thinks that normative concepts are not analyzable at all, one might think that clarity about the concepts can show that naturalism is hopeless. I therefore think it is important for naturalists to address the intuition directly. In this paper, I argue that the intuition plausibly rests on certain characteristic pre-theoretical ways of thinking of the normative properties that we acquire in the ordinary course of moral learning, together with a drive to vindicate these ways of thinking, something of which people may be unaware. This drive to vindicate our ways of thinking is pervasive, and it is characteristic of rational agents. It explains our tendency to think well of those we love, for example, and to think ill of those with whom we are angry. It also explains a strong inclination to form beliefs that, if true, would seemingly vindicate our ways of thinking of normative properties. A result of this, I contend, is the intuition that normative naturalism cannot be true. Yet, as I further argue, the vindication process does not track the truth and the drive to vindicate our states of mind cannot be relied on as a guide to the metaphysics of normativity. (shrink)

The desirability of creating norms within the framework of law has been a challenging process in a free market economy. The principles of antitrust law enunciated by courts in abuse of dominant cases has led to ‘refusal to deal’ as a contested doctrine. When dominance is treated as legitimate aspiration and free market choices are the medium to achieve the aspirations of free market enterprises, any duty or obligation cast on the firm is considered antithetical to the spirit of free (...) market unless it eclipses the anticompetitive effect. Where an economic analysis of antitrust law has non-economic impacts with ethical and moral issues, it calls for an alternative economic thought which also considers plural values of society. This also reflects a conflict arising out of lack of norms and respect for property rights. This paper attempts to analyze the cases and framework which is currently employed by the courts and the challenges it puts forth in creating a norm that is universal. The author by drawing on the principles of Gandhian economic thought and its essential features of trusteeship, non-possession and non-violence creates space for resolution of conflicts promoting ethical and moral considerations. Resolution of conflict through ethical and moral norms also assimilates the varied goals of antitrust regulation, including non-economic goals when the goals of antitrust require a broader consideration that accommodates the wider spectrum of market participants. (shrink)

A core set of assumptions in economic modeling is that rational agents, who have a defined preference set, assess their options and determine which best satisfies their preferences. The rational actor model supposes that the world provides us with a menu of options, and we simply choose what’s best for us. Agents are independent of one another, and they can rationally assess which of their options they wish to pursue. This gives special authority to the choices that people make, (...) since they are understood to be the outcomes of the agent’s considered judgments. However, we have come to see that the independence assumption does not always hold in the way that we may have initially thought. Social norms can govern our choices even when we disagree with them. Here we can begin to see how the standard model of choice and agency begins to weaken: no longer are my choices wholly mine, but instead there is a subset of choices that are governed by the broader culture that I live in. Social norms constrain my behavior with informal coercion — my desire to remain a community member in good standing requires me to behave in accordance with the community’s social norms. What I wish to challenge more substantively is the claim that the menu of choices agents “see” is in fact the objective set of options that is transparently provided by the world. Instead, I argue that the options that people perceive and the evidence they use to make choices are mediated by perspectives. Perspectives can importantly interact with social norms to make some norms more resilient to change, and others harder to adopt. This further shapes both our descriptive and normative understanding of agency. Our choices are not over all of the objectively available options, but over the options that we can see. The evidence we marshal to support our choices is not the full set of evidence, but the evidence that we recognize as salient. This is not to deny that individuals have agency, but rather we need a more nuanced understanding of the nature of this agency. (shrink)

ABSTRACT:Thomas Donaldson’s framework for dealing with value-conflicts between a manager’s home and host country distinguishes between a “conflict of relative [economic] development”—conflicting norms that arise because home and host are at two different stages of economic development—and a “conflict of culture,” which arises because the home and host’s different cultures generate conflicting norms on the issue the manager faces. My question here is a thought experiment. What different insights might emerge if we flipped Donaldson’s framework around? Specifically: (...) What if we viewed the kinds of conflicts that fall under Donaldson’s “conflicts of culture” as arising not because the home and host exhibit a “fundamental” conflict in cultural norms, but because they are at two different stages ofculturaldevelopment? And what if we viewed “conflicts of relative economic development” as conflicts that occur not because home and host are at two different stages of economic development but, simply, because their economies contemporaneously interact with each other in ways that generate normative conflict: call them “conflicts of economy”? (shrink)

Stanisław Głąbiński (1862-1941), professor of Lviv University and the author of the two-volume ‘National Economics (‘Ekonomika narodowa’), was one of the main representatives of the historical-national approach in Polish economics. The study of national economics which he created was divided into general economics, i.e. economic theory, and practical economics, referred to as economic and social policies. Głąbiński emphasizes that there is a close relationship between the latter and ethics. Before the development of economic theory, economic (...) class='Hi'>thought was normative, because of its close relationship to ethics. However, it was not the history of economic theory, but the history of the notion of economic politics and of its practical application. Due to the social nature of ethics, there are also specific relations between it and theoretical economics. In modern countries finding a solution to the so-called social question has become a common task of economics and ethics. Ethical topics are also contained in the content of the category ‘social resources’, in which the social determinants of human economic activity find their fullest reflection. This applies in particular to the category of moral resources, which illustrates the functioning of state bodies and public institutions, the state of education, the prevailing habits and the customs and the character of the nation. (shrink)

In this article, we apply deductive content analysis to the 100 most influential publications in the field of social entrepreneurship to identify the normative assumptions in SE scholarship. Using eight contemporary schools of thought in political philosophy as a template for analysis, we identify the philosophies underlying SE literature and the important consequences of their normative stances, such as: ambiguous concepts, justifications and critiques, and normative contradictions. Our study contributes to the SE literature by proposing that (...) political philosophy can help to identify what counts as the ‘social’ in SE. We are showing some of the field’s inherent normative tensions that could dampen its impact, and propose ways in which a normative awareness would help to establish a basis upon which to evaluate and demonstrate the social, economic, and cultural impact of SE. (shrink)

Perhaps the most salient feature of Rawls's theory of justice which at once attracts supporters and repels critics is its apparent egalitarian conclusion as to how economic goods are to be distributed. Indeed, many of Rawls's sympathizers may find this result intuitively appealing, and regard it as Rawls's enduring contribution to the topic of economic justice, despite technical deficiencies in Rawls's contractarian, decision-theoretic argument for it which occupy the bulk of the critical literature. Rawls himself, having proposed a (...) “coherence” theory of justification in metaethics, must regard the claim that his distributive criterion “is a strongly egalitarian conception” as independently a part of the overarching moral argument. The alleged egalitarian impact of Rawls's theory is crucial again in normative ethics where Rawls is thought to have developed a major counter-theory to utilitarianism, one of the most popular criticisms of which has been its alleged inadequacy in handling questions of distributive justice. Utilitarians can argue, however, as Brandt recently has, that the diminishing marginal utility of money, along with ignorance of income-welfare curves, would require a utility-maximizing distribution to be substantially egalitarian. The challenge is therefore for Rawls to show that his theory yields an ethically preferable degree of equality. (shrink)

This is an expanded second edition of Nicholas Mercuro and Steven Medema's influential book Economics and the Law, whose publication in 1998 marked the most comprehensive overview of the various schools of thought in the burgeoning field of Law and Economics. Each of these competing yet complementary traditions has both redefined the study of law and exposed the key economic implications of the legal environment. The book remains true to the scope and aims of the first edition, but (...) also takes account of the field's evolution. At the book's core is an expanded discussion of the Chicago school, Public Choice Theory, Institutional Law and Economics, and New Institutional Economics. A new chapter explores the Law and Economics literature on social norms, today an integral part of each of the schools of thought. The chapter on the New Haven and Modern Civic Republican approaches has likewise been expanded. These chapters are complemented by a discussion of the Austrian school of Law and Economics. Each chapter now includes an "At Work" section presenting applications of that particular school of thought. By providing readers with a concise, noncritical description of the broad contours of each school, this book illuminates the fundamental insights of a field with important implications not only for economics and the law, but also for political science, philosophy, public administration, and sociology. (shrink)

In launching modern economics, Adam Smith paved the way for laissez-faire capitalism, Marxism, and contemporary social science. This book scrutinizes Smith's disparagement of politics and religion to illuminate the subtlety of his rhetoric, the depth of his thought, and the ultimate shortcomings of his project. The author analyzes Smith's ideas on government, justice, human psychology, and international relations, stressing Smith's efforts to elevate wealth at the expense of citizenship and to replace normative political philosophy with historical theorizing and (...) empirical modeling that emphasize economic causes. The book also provides the most comprehensive interpretation available of Smith's views on religion, examining the discrepancies between The Wealth of Nations and The Theory of Moral Sentiments. The concluding chapter appraises the demise of communism in light of the Marxian emancipation of economics from politics and religion. (shrink)

This article argues that current economic upheaval should be understood as a problem of domination, in two respects: the ‘dyadic’ domination of one actor by another, and the ‘structural’ domination of individuals by a diffuse, decentralized, but nevertheless human-made system. Such domination should be contested through specifically democratic political mobilization, through institutions and practices that expand the political agency of citizens themselves. The article advances this argument by synthesizing two traditions of political thought. It reconstructs radical democratic theory (...) from the Progressive Era. These thinkers in turn help to reinforce contemporary debates in neorepublican thought, resolving disputes over the scope of domination and the relationship between domination and democracy. This synthesis offers a novel normative framework for diagnosing and responding to the current combination of economic upheaval and political dysfunction. (shrink)

Shigeto Tsuru is one of Japan's most respected senior economists. In these lectures, he provides a reappraisal of institutionalism as a school of thought and discusses its relevance for the issues which the economic profession today must tackle. Tsuru reconsiders Marxian political economy as an 'institutionalist school', which provides a context for the following discussion of J. M. Keynes, Joseph Schumpeter and Thorstein Veblen. He goes on to present the four key elements of modern institutionalism - i.e., the (...) open-system character of the economy; the problem of planning; the evolutionary process of modern economics; and the normative character of economics - by way of an examination of three present-day institutionalists, Gunnar Myrdal, John K. Galbraith, and K. William Kapp. Tsuru concludes with an evaluation of modern institutionalism and the future of institutional economics. (shrink)

This article explores how the liberal tradition of political thought has dealt with the prospect of limits to economic growth and how it should approach this issue in the future. Using Andrew Moravcsik's explanatory liberal theory, it finds that the commitment of governments to growth stems primarily from the aggregation of societal preferences for the social goods that growth produces. The arguments of liberal thinkers who have grappled with the issue of growth are then examined to gain a (...) deeper theoretical understanding of the relationship between liberal democracy and growth. These include John Stuart Mill, for whom a non-growing economy was essential for overcoming the tension between liberty and equality; Ronald Dworkin, who argues that growth is a derivative means to further more fundamental ends; and Marcel Wissenburg, who suggests that it is legitimate for liberal democracies to limit the preference for growth if it risks undermining liberal norms and institutions. Using these theoretical insights, it is argued that environmental degradation, which is partly driven by growth, now threatens the fundamental liberal commitments of many liberals, including some forms of state neutralism, utilitarianism, inalienable individual rights and above all human autonomy. Therefore, liberal democratic states not only can, but must move towards a post-growth economy to secure these objectives into the future. (shrink)

The term neoclassical economics delineates a distinct and relatively homogenous school of thought in economic theory that became prominent in the late nineteenth century and that now dominates mainstream economics. The term was originally introduced by Thorstein Veblen to describe developments in the discipline (of which Veblen did not entirely approve) associated with the work of such figures as William Jevons, Carl Menger, and Leon Walras. The ambition of these figures, the first neoclassicists, was to formalize and mathematize (...) the subject in the aftermath of the so-called marginalist revolution. Economics is, according to one definition, the science that studies human behavior as a relationship between ends and scarce means that have alternative uses. Neoclassical economics pursues this study by means of supply and demand models that determine prices based on the subjective preferences of producers and consumers. Neoclassical economics relies on subjective preferences for determining prices in order to escape from the so-called objective value theory of classical economics, according to which the value of goods could be established by reference to some basic commodity (usually corn) or the labor input required to produce a good. Neoclassicists hoped that by jettisoning objective value, economics could be placed on a more scientific basis as an essentially descriptive and predictive theory of human behavior. Political theory, by contrast, involves both positive and normative elements. It is a positive science to the extent to which it aims to describe and predict political behavior. It is a normative science to the extent to which it prescribes how agents should behave in the political arena and what the best political institutions are. Neoclassical economics is relevant to both of these elements. (shrink)

One cannot really speak of a school of personalistic economists. Moreover, there is a wide gulf between the economic philosophy of the personalists and the mathematical context of economic science. Since the thirties, philosophers such as Alexandre Marc, Jacques Maritain, Emmanuel Mounier and many others have been searching, on the basis of a personalistic view of man, for a `third way' between individualistic capitalism and statist socialism , but there was seldom interest from the side of the scientific (...) economists.Fortunately, there are some notable exceptions. François Perroux, Kenneth Boulding, Ernst Schumacher, Serge Christophe Kolm, and Amartya Sen are economists who, in various ways, have attempted to bridge the gulf between the personalistic view of man and economic rationality. By carrying out an immanent critique of some of the standard economic assumptions, they opened a path for a normative economics that was clearly distinct from a purely positive economics as well as from Pareto's welfare economics. One can affix various labels to these attempts: humanistic economics , socio-economics , moral economics . In what follows, I shall interpret these attempts as initiatives in the direction of a personalistic economics. I would also situate the current research in `economics and ethics', which is becoming part of the mainstream of economic thought, and which has received official recognition with the recent Nobel prize award to Sen, within this tendency towards a more personalistic economics.Attention to moral feelings, human rights, altruistic motives, justice and solidarity, non-profit organizations, etc., contribute to situating the economic problem in a field where economics, politics and ethics no longer function as three distinct domains but where their interaction is central.Yet does this interactive economics fit into a personalistic way of thinking? Is a generalized system theory not more attractive? System theory has a different focus than personalistic economics. System theory considers the axioms of system equilibrium and sustainable growth as the ultimate horizon, whereas a personalist sees them as merely important conditions for a good society and economy. However refined it may be, system theory views the person from an external point of view, while the personalist refers to the internal experience of human freedom and meaning as something that transcends and regulates the system's functionality.One could object that neo-classical economists do not use system theory as their point of departure. In their eyes, system equilibrium is the result of the utility-maximizing behaviour of individuals. These individuals subjectively determine what their preferences are and then act accordingly. Is this openness for a free, utility-maximizing actor — where there is room for both material and immaterial, egoistic and altruistic preferences — not sufficient to speak of a personalistic economics ? If this were true, then the discourse of personalism would be more or less superfluous.I take the term `personalistic economics' to refer to a normative economics that does not simply reconstruct the problem of efficient allocation as an individual or social problem of utility, but in the first instance as a problem of human dignity and social justice. To reduce the problem of human choice to a problem of subjective utility is in itself a far-reaching normative standpoint. As soon as one realizes this, there is no reason to exclude other normative assumptions, such as personalistic ones. (shrink)

The aim of the article is to develop the existing methodological approaches to assessing the military and economic capabilities of the country in conditions of war and peace. To achieve the purpose of the study, its decomposition was carried out and the following were investigated: existing approaches to assessing the military and economic potential of the country, the country's power and national power; the concept of critical load of the national economy is revealed; the generally accepted norms on (...) financing of defense needs are resulted; the experience of financing the needs of defense by the leading countries of the world - in the conditions of the Second World War is given; a methodical approach to assessing the military and economic capabilities of the country is proposed. The article proposes a methodical approach to assessing the military and economic capabilities of the country. According to the results of the research, the existing theory of military economy has been improved in the context of understanding the allowable burden on the country's economy in conditions of war and the development of methodological approaches to assessing the country's military and economic capabilities. The proposed methodological approach is the development of existing military-economic thought and capability-based military-economic planning. The proposed methodological approach allows to assess the ability of the national economy to meet military and economic needs in wartime by industry and type of military support, taking into account the critical load of the national economy, which will help simplify and improve the process of military policy decisions. The practical value of the study is that the proposed method of assessing the military and economic capabilities of the country allows to identify critical sectors of the economy, assess their ability to provide resources for military needs in wartime, based on which to form and make appropriate management decisions. The results of the study can be used in further studies of the development of military and economic potential of the country, balancing military and civilian economic needs in war, as well as military-economic planning based on capabilities. A limitation of the study is the use of publicly available sources. Future research is seen in the further development of methodological approaches to assessing and developing the military and economic potential of the country. (shrink)

In this paper I have two main aims. My first aim is to introduce the notion of bounded emotionality. This notion is the analogue of that of bounded rationality in behavioural economics. Bounded rationality says, roughly, that human beings are cognitively limited with respect to their processing and memory capacities. Bounded emotionality says that we are limited in our emotional capabilities, notably in the intensity, duration, and possible combinations of our emotional states. Bounded rationality is a foundational notion in behavioural (...) economics and has played an important role in various fields of philosophy as well. In particular, in epistemology bounded rationality has been thought to have implications with respect to our doxastic norms. My second aim in this paper is to suggest that bounded emotionality also has an important role to play in philosophy. As a case in point, I discuss the implications that bounded emotionality has for our doxastic norms. In particular, I argue that one is not obligated to believe something or to stop holding a belief if one could not believe/fail to believe it without having an emotional response that exceeds one's bounded emotional capacities. (shrink)

The field of environmental economics, while offering powerful tools for the diagnosis of environmental problems and the design of policy solutions to them, is unable to effectively incorporate normative concepts like justice or rights into its method of analysis, and so needs to be supplemented by a consideration of such concepts. I examine the two main schools of thought in environmental economics ? the New Resource Economics and Free Market Environmentalism ? in order to illustrate the shortcomings of (...) their methods of analysis, taken on their own, and to demonstrate how a consideration of concepts like rights or justice might usefully supplement them. (shrink)

The rise of China could be the most important political development of the twenty-first century. What will China look like in the future? What should it look like? And what will China's rise mean for the rest of world? This book, written by China's most influential foreign policy thinker, sets out a vision for the coming decades from China's point of view. In the West, Yan Xuetong is often regarded as a hawkish policy advisor and enemy of liberal internationalists. But (...) a very different picture emerges from this book, as Yan examines the lessons of ancient Chinese political thought for the future of China and the development of a "Beijing consensus" in international relations. Yan, it becomes clear, is neither a communist who believes that economic might is the key to national power, nor a neoconservative who believes that China should rely on military might to get its way. Rather, Yan argues, political leadership is the key to national power, and morality is an essential part of political leadership. Economic and military might are important components of national power, but they are secondary to political leaders who act in accordance with moral norms, and the same holds true in determining the hierarchy of the global order. Providing new insights into the thinking of one of China's leading foreign policy figures, this book will be essential reading for anyone interested in China's rise or in international relations. (shrink)

The paper discusses the disciplinary production of the normative feminine body and analyses the shift that has taken place in the rationality underpinning our current techniques of gender. I argue that Foucault’s radical intervention in feminist philosophy, and more generally in the philosophy of the body, has been the crucial claim that any analysis of embodiment must recognize how power relations are constitutive of the embodied subjects involved in them. His studies of disciplinary technologies show how bodies are constructed (...) through mundane, everyday habits and techniques as certain kinds of subjects. Similarly, feminist appropriations of Foucault’s thought have demonstrated how feminine subjects are constructed through patriarchal, disciplinary practices of beauty. My argument is that that there have been significant changes in the last decades in the rationality underpinning these techniques of gender, however, which have emerged in tandem with the rise of the neoliberal, economic subject. I will appropriate Foucault’s idea of governmentality, and particularly of neoliberal governmentality, as an alternative framework to discipline for studying the contemporary construction of the feminine body. I will show that it provides us with a more comprehensive conceptual framework for understanding the construction of the feminine body in its current form. (shrink)

This article comprises an up-to-date critical review of the field known as Economic Methodology or Philosophy of Economics (EM/PE). Two edited volumes (Kincaid and Ross 2021; Heilmann and Reiss 2021), a special issue of the Journal of Economic Methodology (2021), and a recent bibliometric analysis of the field (Claveau et al. 2021) constitute the basis of the review. Drawing on these sources, we identify a number of problematic trends in current EM/PE research. We claim that these trends could (...) be interpreted as two kinds of biases, namely a micro-level bias and a mainstream bias. We discuss the respective details of these biases and their normative implications for the discipline. (shrink)

The concept of the individual and his/her motivations is a bedrock of philosophy. All strands of thought at heart contain to a particular theory of the individual. Economics, though, is guilty of taking this hugely important concept without questioning how we theorize it. This superb book remedies this oversight. The new approach put forward by Davies is to pay more attention to what moral philosophy may offer us in the study of personal identity, self consciousness and will. This crosses (...) the traditional boundaries of economics and will shed new light on the distinction between positive and normative analysis in economics. With both heterodox and orthodox economics receiving a thorough analysis from Davies, this book is at once inclusive and revealing. (shrink)

Despite decades of empirical happiness research, there is still little evidence for the positive effect of economic growth on life satisfaction. This poses a major challenge to welfare economic theory and to normative conceptions of socio-economic development. This book endeavours to explain these findings and to make sense of their ethical implications. While most of the existing literature on empirical happiness research is ultimately interested in understanding how to improve human lives and societal development, the ethical (...) backdrop against which these findings are evaluated is rarely made explicit. In contrast to this, Professor Hirata focuses on the role happiness should play in an ethically founded conception of good development. Taking a development ethics perspective, this book proposes a nuanced conception of happiness that includes both its affective and its normative dimensions and embeds this in a comprehensive conception of good development. The argument is that happiness should not be regarded as the only thing that determines a good life and that good development cannot sensibly be thought of as a matter of maximizing happiness. Happiness should rather be seen as an important indicator for the presence or absence of those concerns that really matter to people: the reasons that give rise to happiness. This book should be of interest to students and researchers of economics, psychology and development studies. (shrink)

ArgumentThe article takes as its starting point the relationship of academic economists and the wider society. First, various bodies of literature that deal empirically with this matter are discussed: epistemologically, they range from a bold structuralism via a form of symbolic interactionism to a form of radical constructivism. A Bourdieusian approach is recommended to complement these perspectives with a comprehensive perspective that is sensible to the cultural differences between social groups. Starting from the established notions of field, capital and habitus, (...) the article then attempts to go the initial steps towards formulating a theory of the specificity of academic economics, taking Germany as its example. For that it uses and compares in-depth interviews of recognized and non-recognized German economics students. It shows the thorough interweaving of specific normative and positive dispositions into a conviction of objectivity and disinterestedness. This exploratory empirical induction furthers follow-up questions, the empirical answering of which may help to gain a more complete understanding of the actions and thoughts of economists in their specific contexts. (shrink)

In a recent examination of the origins of ordinal utility theory in neoclassical economics, Robert D. Cooter and Peter Rappoport argue that the ordinalist revolution of the 1930s, after which most economists abandoned interpersonal utility comparisons as normative and unscientific, constituted neither unambiguous progress in economic science nor the abandonment of normative theorizing, as many economists and historians of economic thought have generally believed. Rather, the widespread acceptance of ordinalism, with its focus on Pareto optimality, (...) simply represented the emergence of a new neoclassical research agenda that, on the one hand, defined economics differently than had the material welfare theorists of the cardinal utility school and, on the other, adopted a positivist methodology in contrast to the less restrictive empiricism of the cardinalists. (shrink)

Bruce Caldwell has disputed a number of points in my earlier account of the development of the Austrian school of economics from Carl Menger to Ludwig von Mises and F.A. Hayek. The issues in contention regard Friedrich von Wieser’s intellectual affiliation with Hayek and his influence on the formation of Hayek’s economic thought; Wieser’s status as a general equilibrium theorist; and the reason for Hayek’s early flirtation with general equilibrium theory. In this article I argue that Hayek was (...) a self-conscious adherent of the Wieserian tradition and remained so even after he received the Nobel Prize in 1974 and that he distinguished between this tradition and the Böhm-Bawerkian tradition followed by Ludwig von Mises. I also contend that Wieser used the construction of a general equilibrium economy subject to a single will as both a normative benchmark by which to appraise the performance of the real-world market economy and as an analytical tool to explain the formation of market prices. Finally, I argue that Hayek concerned himself with the problems of the Wieser-type general equilibrium economy beginning with his earliest writings as a professional economist, years before he began to focus on the theoretical problems of money and the business cycle.Bruce Caldwell a discuté un certain nombre de points de mon article récent sur le développement de l’école autrichienne d’économie de Carl Menger en passant par Ludwig von Mises et F.A. Hayek. Les controverses concernant l’affiliation intellectuelle de Hayek vis-à-vis de Friedrich von Wieser et l’influence de ce dernier sur la pensée économique de Hayek, le statut de Wieser en tant que théoricien de l’équilibre général, et les raisons pour lesquelles le jeune Hayek flirta avec la théorie de l’équilibre général.Dans cet article je défends la thèse selon laquelle Hayek était conscient du fait qu’il s’inscrivait dans la tradition Wieserienne et qu’il l’était toujours même après sa réception du prix Nobel en 1974 et quand il fît la distinction entre cette tradition et la tradition inaugurée par Böhm-Bawerk et poursuivie par Mises. L’article affirme aussi que Wieser utilisa la construction d’une économie en équilibre général sujette à une volonté unique à la fois comme standard normatif pour évaluer les performances des marchés dans le monde réel et comme outil analytique pour expliquer la formation des prix marchands. Enfin, l’article argumente que Hayek s’intéressa aux problèmes relevant d’une économie en équilibre général à la Wieser dans ses premiers écrits en tant qu’économiste et cela bien avant qu’il ne se concentrât sur les problèmes théoriques de la monnaie et du cycle des affaires. (shrink)

Values, Valuations, and Axiological Norms in Richard Rorty's Neopragmatism sympathetically discusses Richard Rorty's neopragmatist philosophy. This book brings together a range of interpretations and possibilities on a variety of humanistic topics, including philosophy, literature, culture, film, economics, social issues, politics, and more. Skowroński involves the work of philosophers such as Kant, Dewey, Santayana, and Kołakowski as he delves into various philosophical problems using the lens of Rorty’s neopragmatist thought.

The aim of this paper is to show the relationship between the normative outlook and political philoso- phy of traditional societies on the one hand, and the crises of governance and leadership in contemporary African Societies, particularly subSaharan states, on the other. Although there are quite some differences in the quality of leadership and governance among sub-Saharan African states because of the different political and economic circumstances, this part of the globe taken as a whole remains underdeveloped in (...) terms of having the will to institute and maintain stable polities with responsive, responsible and efficient governance. (shrink)

Prof. Miščević has long been an ardent defender of the use of thought experiments in philosophy, foremost metaphysics, epistemology and philosophy of mind. Recently he has, in his typically sophisticated manner, extended his general account of philosophical thought-experimenting to the domain of normative politics. Not only can the history of political philosophy be better understood and appreciated, according to Miščević, when seen as a more or less continuous, yet covert, practice of thought-experimenting, the very progress of (...) the discipline may crucially depend on finding the right balance between the constraints of (biological, psychological, economic, political, and so on) reality and political-moral ideals when we set to design our basic political notions and institutions. I have much less confidence in this project than prof. Miščević does. As a subspecies of moral TE, political TE share all their problems plus exhibit some of their own. In the paper, I present and discuss two types of evidence that threaten to undermine political philosophers’ trust in thought-experiments and the ethical/political intuitions elicited by them: (i) the dismal past record of thought-experimentation in moral and political philosophy; and (ii) the variety, prevalence, and stubbornness, of bias in ordinary social/political judgment. (shrink)

Over the past two decades a rich empirical literature has developed, reflecting work in economics, psychology, neurobiology, evolutionary biology and other disciplines, concerning human cooperation, and the distribution of the benefits and burdens that it generates. These issues are also a focus of a great deal of normative theorizing, much of it falling within the subject matter of theories of justice. It is a natural thought that the empirical literature must have some bearing on the normative theories, (...) but it is no easy matter to spell out what these connections might be. This paper explores this question, by focusing on empirical literature relevant to one particular notion that plays a role in many normative theories of justice —the notion of reciprocity. (shrink)

Summary This article examines the complex nature of post-war Italian political thought, stressing the importance of Italy's unusual institutional and historical political arrangements, but also the vibrancy of its political ideologies in this period. In the past it has often been argued that the dysfunctional nature of post-war Italian democracy with its rapidly changing governments, and widespread corruption—which nonetheless coexisted with the one party, the Christian Democrats, being constantly in power—led to the atrophying of political theory in general, and (...) political ideologies in particular. But this picture is strongly disputed here—on the contrary it is argued that Christian Democratic, Left and liberal political ideologies were all complex and interesting. Thus if Christian democracy should ultimately be seen as an ‘ideology of transition’ which existed to help Catholicism adapt to the parameters of modern mass democracy, and which lacked a thinker of the calibre of Jacques Maritain, it nevertheless contained within it important debates on the role of the state, between such interesting thinkers as Giuseppe Dossetti and Alcide De Gasperi. And if anything, political thinking on the Left in the post-war period was even more complex, with visceral debates within the (large) Communist Party (PCI) over whether to work within the law—between such thinkers as Palmiro Togliatti and the Il Manifesto group. Equally on the more revolutionary Left, there were important debates about how quickly capitalism could be made to collapse through revolutionary action between thinkers such as Raniero Panzieri and his more radical disciples, Mario Tronti and Antonio Negri, while later, due to the general failure of these revolutionary efforts, post-modern thinkers such as Gianni Vattimo sought to abandon grand metaphysical narratives, whilst retaining a commitment to Left of centre political commitments. Finally, although not part of a widespread mass movement, the liberal thought of Norberto Bobbio was also highly interesting and sophisticated—borrowing from Hobbes and Kelsen, he sought to advocate a modest form of liberal democracy which allowed for civilised forms of conflict, and the protection of minorities, and which rejected the contention of Marxists that civil rights could not be distinguished from economic ones. Overall, if normative aspirations in post-war Italian politics were often frustrated in practice, this was certainly not due to any lack of theoretical vibrancy. (shrink)

The rise of China could be the most important political development of the twenty-first century. What will China look like in the future? What should it look like? And what will China's rise mean for the rest of world? This book, written by China's most influential foreign policy thinker, sets out a vision for the coming decades from China's point of view. In the West, Yan Xuetong is often regarded as a hawkish policy advisor and enemy of liberal internationalists. But (...) a very different picture emerges from this book, as Yan examines the lessons of ancient Chinese political thought for the future of China and the development of a "Beijing consensus" in international relations. Yan, it becomes clear, is neither a communist who believes that economic might is the key to national power, nor a neoconservative who believes that China should rely on military might to get its way. Rather, Yan argues, political leadership is the key to national power, and morality is an essential part of political leadership. Economic and military might are important components of national power, but they are secondary to political leaders who act in accordance with moral norms, and the same holds true in determining the hierarchy of the global order. Providing new insights into the thinking of one of China's leading foreign policy figures, this book will be essential reading for anyone interested in China's rise or in international relations. (shrink)

This paper contrasts the value maximization norm of welfare economics that is central to law and economics in its prescriptive mode to the Aristotelian/Aquinian principles of Catholic social thought. The reluctance (or inability) of welfare economics and law and economics to make judgments about about utilities (or preferences) differs profoundly from the Catholic tradition (rooted in Aristotle as well as religious faith) of contemplation of the nature of the good. This paper also critiques the interesting argument by Stephen Bainbridge (...) that homo economicus bears a certain affinity to fallen man, and that law and economics thus provides appropriate rules for a fallen world. From a Catholic perspective, the social vision of neo-classical economics and its progeny (welfare economics and law and economics) rests on a concept of human autonomy and a utilitarian concept of pleasure inconsistent with the Aristotelian and Aquinean concept of virtue and the conception of civic happiness articulated by Antonio Genovesi and other Catholic economists. (shrink)

For much economics research, ethics committee approval is not required. This is seen by some as indicating that there are no ethical issues in economics research. However, ethical research requires more than simply meeting regulatory requirements. If economics research has an impact on perceptions and resulting decisions, then there may be concerns about the nature of the research and its impact. There are a number of arguments that could be raised as to why economics does not describe the real world. (...) What we see is shaped by how we see, so it is important to consider context. This paper considers the simplification that is an inevitable aspect of research. Implications for economic approaches are described, recognising that criticisms can apply to heterodox as well as mainstream approaches. Subjectivity is then discussed, questioning the traditional positive-normative distinction. An additional section relates to the application of economics. It focuses on the significance of rhetoric and the differing roles played by economists, each of which may have their own obligations and expectations. A theme throughout the paper is that of groups and group membership shaping perceptions and behaviour. The paper concludes that there are ethical issues in relation to both how and why economists undertake their work. Read the Open Peer Discussion on this paper » Read the discussion of this paper on the WEA's Ethics conference ». (shrink)

As is well understood, the values inherent in the dominant neoclassical economic paradigm are self- interest and optimisation. These are the values that guide individuals and policymakers in advanced capitalist economies in their economic decision making. As a consequence, the economics discipline, arguably, is insufficiently oriented to helping people and organisations make wise choices, choices about what is really and truly in people's best interests. In other words, there is strong reason to believe that economics has a wisdom (...) deficit. This paper draws on great philosophers such as Aristotle to explain what wisdom is and why, although economics is concerned with the normative aspect of decision making, economics has too infrequently been used to help people or their societies make wise decisions. This paper is also concerned with how a society's economic decision-making processes can be improved in order that these processes incorporate a much greater dose of wisdom. One relevant question here is: can we learn with the help of philosophers, psychologists and organisation researchers how to make economic decisions that apply the practical wisdom that Aristotle advocated? This paper's overall purpose is first to point the way toward greater decision-making wisdom, and second to propose one method for improving the wisdom of important economic-related decision making. Hopefully, this paper will serve to put the issue of decision-making wisdom higher on the agenda of economists and, as a consequence, lead to wiser decisions in the economic sphere, thereby reducing the wisdom deficit. (shrink)

Prof. Miščević has long been an ardent defender of the use of thought experiments in philosophy, foremost metaphysics, epistemology and philosophy of mind. Recently he has, in his typically sophisticated manner, extended his general account of philosophical thought-experimenting to the domain of normative politics. Not only can the history of political philosophy be better understood and appreciated, according to Miščević, when seen as a more or less continuous, yet covert, practice of thought-experimenting, the very progress of (...) the discipline may crucially depend on finding the right balance between the constraints of (biological, psychological, economic, political, and so on) reality and political-moral ideals when we set to design our basic political notions and institutions. I have much less confidence in this project than prof. Miščević does. As a subspecies of moral TEs, political TEs share all their problems plus exhibit some of their own. In the paper, I present and discuss two types of evidence that threaten to undermine political philosophers’ trust in thought experiments and the ethical/political intuitions elicited by them: (i) the dismal past record of thought-experimentation in moral and political philosophy; and (ii) the variety, prevalence, and stubbornness, of bias in social/political judgment. (shrink)

When we want to justify claims against one another, we discover that conceptual thought alone is not sufficient to legitimize property and income in the relative and proper proportions among members of a productive group. Instead, the basis for justification should also be seen in motivational states, validated less by rational thought than by an effective behaviour. To circumnavigate otherwise dangerously utopian claims to justice, the social sciences, and especially behavioural economics, are the most reliable basis for (...) class='Hi'>normative distributive justice. This article builds on recent findings of experiments, first of all in order to give proof of the extent to which a general behavioural tendency towards equality is widespread among people, and second of all in order to highlight ‘desert’ and ‘need’ as the crucial criteria of just distribution, which will then sum up to justified inequality in the economic sphere. (shrink)

In this paper I discuss the managerial template that has become the normative model for the organization of the university. In the first part of the paper I explain the corporatization of academic life in terms of the functional relationships that make up the organizational components of the commercial enterprise and their inappropriateness for the life of the academy. Although there is at present a significant body of literature devoted to this issue, the goal of this paper is to (...) explain the genesis of this phenomenon through a reference to the ideology that characterizes our modern secular age. This is the subject of the second part of the paper. Most texts seek to explain this ideological development either through the ever increasing dominance of economic rationalism, perceived conservatism of collegial forms of governance, the necessity to transfer fiscal responsibility in tight budgetary periods, the decline of the Keynesian ‘welfare consensus’, or the legacy of the power regimes that began to take shape in the liberal societies of the 19th century. I trace this development to the beginnings of Modernity and the Cartesian bifurcation that separated the material world from its spiritual and intellectual source and thereby overthrew the hierarchy of related values that informed both nature and human organization. In articulating this argument I make reference to the thought of Jacques Maritain, Charles Taylor and René Guénon. (shrink)