4. The Basis of the Misconceptions Concerning the Logical Character of Economics
Economic theory, like every theory and every science, is rationalistic in the sense that it makes use of the methods of reason?ratio. What, indeed, could science be without reason? Nevertheless, one may seek to pit metaphysical poetry, masquerading as philosophy, against discursive reasoning. However, to do this is to reject science as such.
5. History Without Sociology
One can completely agree with Max Weber when he declares:
9. The Failure of the Prevailing Ideology
In all variations and colors the ideas of socialism and syndicalism have lost their scientific moorings. Their champions have been unable to set forth another system more compatible with their teachings and thereby refute the charge of emptiness by the theoretical economists. Therefore, they had to deny fundamentally the posibility of theoretical knowledge in the field of social science and, especially, in economics. In their denial they were content with a few critical objections to the foundation of theoretical economics.
8. Max Weber and the Socialists of the Chair
The opposition that arose in Germany against the Socialists of the Chair generally started with an awareness that theoretical investigations of economic problems are essential. As economists, Dietzel, Julius Wolf, Ehrenberg, Pohle, Adolf Weber, Passow, and others rose against the Socialists of the Chair. On the other hand, historians raised objections against the manner in which Schmoller, Knapp, and his pupils sought to solve historical tasks. Equipped with the tools of their sciences, these critics approached the doctrines of the Socialists of the Chair from the outside.
6. The Economic Doctrines of Social Liberalism
Faithful to their principle, the Socialists of the Chair did not create a system of economics, which was the endeavor of the Physiocrats and classical economists, and now the modern subjectivist economists. The socialists were not concerned with creating a system of catallactics.
7. The Concept and Crisis of Social Policy
All the economic policies of the last two generations are designed step by step to abolish private property in the means of production— if not in name, then in substance— and to replace the capitalist social order with a socialistic order.
7. The Concept and Crisis of Social Policy
All the economic policies of the last two generations are designed step by step to abolish private property in the means of production— if not in name, then in substance— and to replace the capitalist social order with a socialistic order.
6. The Economic Doctrines of Social Liberalism
Faithful to their principle, the Socialists of the Chair did not create a system of economics, which was the endeavor of the Physiocrats and classical economists, and now the modern subjectivist economists. The socialists were not concerned with creating a system of catallactics.
We have been talking about the housing bubble in Canada for some time now. When the US housing bubble burst the Canadian housing bubble continued to inflate, buoyed by high commodity prices and a better regulated banking system. With commodity prices lower and energy prices crashing the Canadian housing bubble is poised to pop with the Canadian people up to their eyeballs in debt. Only recently did the Bank of Canada admit a bubble existed, but stated that it should not be a problem.
5. The Methodenstreit
As early as the 1870s Walter Bagehot irrefutably exploded the arguments with which the followers of the Historical School rejected the dependability of “theoretical” inquiries in the field of economics. He called the two methods—the Historical School considered them the only permissible methods—the “all-case method” and the “single-case method.” The former works with induction only, and makes the erroneous assumption that this is the road that usually leads the natural sciences to their findings.
