6. Ludwig M. Lachmann
That the Austrian School’s subjectivism bears a resemblance to Max Weber’s sociological-historical method of Verstehen (understanding) has been emphasized by economist Ludwig M. Lachmann, a contemporary of Hayek who has developed subjectivist themes in his own personal way.
3. Böhm-Bawerk and Wieser
The considered rejection of the mathematical method as sterile, i.e., as incapable of shedding light on the vital questions of economic processes, has been one of the continuing themes of the Austrian School.
4. Ludwig von Mises
Perhaps the most noteworthy thing about Böhm-Bawerk’s statement is that its methodological prescription was repudiated in almost every point by his intellectual heir, Ludwig von Mises. Following his teacher on many facets of theory, Mises nonetheless developed an entirely different epistemological defense for his views.
The political class breathed a sigh of relief Saturday when the US Senate averted a government shutdown by passing the $1.1 trillion omnibus spending bill. This year’s omnibus resembles omnibuses of Christmas past in that it was drafted in secret, was full of special interest deals and disguised spending increases, and was voted on before most members could read it.
The Methodology of the Austrian School Economists
1. Introduction
Until recently the Austrian School of Economics was a topic studied almost solely by historians of economic thought interested in the development of marginal utility theory in the late nineteenth century. Not only has the life span of the school been longer than those few decades, however, but marginalism as such has never been its real focus. Today the tradition of Austrian economics, never completely dormant, is enjoying a resurgence. Austrian economists are engaged in theoretical and applied research on a wide array of topics.
2. Carl Menger
The foundations of the Austrian School of Economics were laid, and the blueprint for its future development drawn, with the publication in 1871 of Menger’s Grundsätze der Volkswirthschaftslehre (English translation, Principles of Economics).4 In that book Menger offers a gold mine of original and fruitful ideas, a
6. War Socialism and True Socialism
The question whether so-called war socialism is true socialism has been discussed repeatedly and with great passion. Some have answered yes just as firmly as others have answered no. In that connection the striking phenomenon could be observed that as the war continued and as it became even more obvious that it would end with failure of the German cause, the tendency to characterize war socialism as true socialism diminished also.
Concluding Observations
Rationalist utilitarianism rules out neither socialism nor imperialism on principle. Accepting it provides only a standpoint from which one can compare and evaluate the advantages and disadvantages of the various possibilities of social order; one could conceivably become a socialist or even an imperialist from the utilitarian standpoint. But whoever has once adopted this standpoint is compelled to present his program rationally.
