The Competitiveness of Nations in a Global Knowledge-Based Economy
F.
A. von Hayek
Economics and Knowledge
1
Scientism and the Study of
Society
Economica, New Series,
9 (35
Aug. 1942, 267-291.
Systems which have universally owed their origin to the lucubrations of those who were acquainted with one art,
but ignorant of the other; who therefore explained to themselves the phenomena, in that which was strange to them,
by those in that which was familiar; and with whom, upon that account, the analogy, which in other writers gives
occasion to a
few ingenious similitudes, became the great hinge on which every thing
turned.
ADAM SMITH (Essay on the History
of Astronomy).
IN the course of its slow
development in the eighteenth and early nineteenth centuries the study of
economic and social phenomena was guided in the choice of its methods in the
main by the nature of the problems it had to face. [1] It gradually developed a technique appropriate to these
problems without much reflection on the character of the methods or on their
relation to that of other disciplines of knowledge. Students of political economy could
describe it alternatively as a branch of science or of moral or social
philosophy without the least qualms whether their subject was scientific or
philosophical. The term
“science” had not yet assumed the special narrow meaning it has
to-day, [2] nor was
there any distinction made which singled out the physical or natural sciences
and attributed to them a special dignity. Those who devoted themselves to those
fields indeed readily chose the designation of philosophy when they were
concerned with the more general aspects of their problems. [3]
1. This is, however, not universally
true. The attempts to treat social
phenomena “scientistically,” which became so influential in the 19th
century, were not completely absent in the 18th. There is at least a strong element of it
in the work of Vico, of Montesquieu and of the Physiocrats. But the great achievements of the century
in the theory of the social sciences, the works of Cantillon and Hume, of Turgot
and Adam Smith, were on the whole free from it.
2. The earliest example of the modern
narrow use of the term “science’ given in
3. E.g. J. Dalton’s New
System of Chemical Philosophy, 1808 Lamarck’s Philosophie Zoologique,
1809, or Fourcroy’s Philosophie chimiqne. 1806.
267
During the first half of the
nineteenth century a new attitude made its appearance. The term science came more and more to be
confined to the physical and biological disciplines which at the same time began
to claim for themselves a special rigourousness and certainty which
distinguished them from all others. Their success was such that they soon
began to exercise an extraordinary fascination on those working in other fields,
and who soon began to imitate their teaching and vocabulary. Thus the tyranny commenced which the
methods and technique of the Sciences [1] in the narrow sense of the term have
ever since exercised over the other subjects. These became increasingly concerned to
vindicate their equal status by showing that their methods were the same as
those of their brilliantly successful sisters rather than by adapting their
methods more and more to their own particular problems. And although in the hundred and twenty
years or so, during which this ambition to imitate Science in its methods rather
than its spirit has now dominated social studies, it has contributed scarcely
anything to our understanding of social phenomena, not only does it continue to
confuse and discredit the work of the social disciplines, but demands for
further attempts in this direction are still presented to us as the latest
revolutionary innovations which, if adopted, will secure rapid undreamed of
progress.
Let it be said at once, however,
that those who were loudest in these demands were rarely themselves men who had
noticeably enriched our knowledge of the Sciences. From Francis Bacon, the Lord Chancellor,
who will for ever remain the prototype of this attitude, to Auguste Comte and
the “physicalists” of our own day, the claims for the exclusive virtues of the
methods employed by the natural sciences were mostly advanced by men whose right
to speak on behalf of the scientists were not above suspicion and who indeed in
many cases had shown in the Sciences themselves as much bigoted prejudice as in
their attitude to other subjects. Just as Francis Bacon opposed Copernican
Astronomy [2], and as Comte taught that any too minute investigation
of the phenomena by such instruments as the microscope was harmful and should be
suppressed by the spiritual power of the positive society because it tended to
upset the laws of positive science, so this dogmatic attitude has so often
misled men of this type in their own field that there should have been little
reason to attach too much importance to their views about problems still more
distant from the fields from which they derived their
inspiration.
The history of this influence, the
channels through which it operated, and the direction in which it affected
social developments, will occupy us throughout the series of historical studies
to which the present essay is designed to serve as an introduction.
[3]
Before we trace the historical
1. We shall use the term Science in
capital letters when we wish to emphasise that we use it in the modern narrow
meaning.
2. See M. R. Cohen, “The Myths about
Bacon and the Inductive Method” Scientific Monthly, vol. XXIII, 1926, p.
505.
3. The first of this series, entitled
“The Counter-Revolution of Science,” appeared in Economica, February to
August, 1941.
268
course of this influence and its
effects, we shall here attempt to describe its general characteristics and the
nature of the problems to which the unwarranted and unfortunate extensions of
the habits of thought of the physical and biological sciences have given rise.
There are certain typical elements
of this attitude which we shall meet again and again and whose prima facie
plausibility makes it necessary to examine them with some care. While in the particular historical
instances it is not always possible to show how these characteristic views are
connected with or derived from the habits of thought of the scientists, this is
easier in a systematic survey.
It need scarcely be emphasised that
nothing we shall have to say is aimed against the methods of Science in their
proper sphere or is intended to throw the slightest doubt on their value. But to preclude any misunderstanding on
this point we shall, wherever we are concerned, not with the general spirit of
disinterested inquiry but with that slavish imitation of the method and language
of Science, speak of “scientism” or the “scientistic” prejudice. Although these terms are not completely
unknown in English, [1] they are actually borrowed from the French, where in
recent years they have come to be generally used in very much the same sense in
which they will be used here. [2]
It should be noted that, in the sense in which we shall
use these terms, they describe, of course, an attitude which is decidedly
unscientific in the true sense of the word, since it involves a mechanical and
uncritical application of habits of thought to fields different from those in
which they have been formed. The
scientistic as distinguished from the scientific view is not an unprejudiced but
a very prejudiced approach which, before it has considered its subject, claims
to know what is the most appropriate way of investigating it. [3]
It would be convenient if a similar
term were available to describe the characteristic mental attitude of the
engineer which, although in many respects closely related to scientism, is yet
distinct from it but which we intend to consider here in connection with the
latter. No single word of equal
expressiveness suggests itself, however, and we shall have to be content to
describe this second element so characteristic of 19th and 20th century thought as the “engineering type of
mind”.
1. Murray’s New English
Dictionary knows both “ scientism “ and “scientistic “, the former as the
“habit and mode of expression of a man of science,” the latter as
“characteristic of or having the attributes of, a scientist (used
depreciatively).” The terms
“naturalistic” and “mechanistic”, which have often been used in a similar sense,
are less appropriate because they tend to suggest a wrong kind of
contrast.
2. See e.g. J. Fiolle, Scientisme
ci Science,
3. Perhaps the following passage by a
distinguished physicist may help to show how much the scientists themselves
suffer from the same attitude which has given their influence on other
disciplines such a baneful character: “It is difficult to conceive of anything
more scientifically bigoted than to postulate that all possible experience
conforms to the same type as that with which we are already familiar, and
therefore to demand that explanation use only elements familiar in everyday
experience. Such an attitude
bespeaks an unimaginativeness, a mental obtuseness and obstinacy, which might be
expected to have exhausted their pragmatic justification at a lower plane of
mental activity.” (P. W. Bridgman, The Logic of Modern Physics, 1928,
p.46.)
269
Before we can understand the reasons
for the trespasses of scientism we must try to understand the struggle which
Science itself had to fight against concepts and ideas which were as injurious
to its progress as the scientistic prejudice now threatens to become to the
progress of the social studies. Although we live now in an atmosphere
where the concepts and habits of thoughts of every-day life are to a high degree
influenced by the ways of thinking of Science, we must not forget that the
Sciences had in their beginning to fight their way in a world where most
concepts had been formed from our relations to other men and in interpreting
their actions. It is only natural
that the momentum gained in that struggle should carry Science beyond the mark
and create a situation where the danger is now the opposite one of the
predominance of scientism impeding the progress of the understanding of society.
[1]
But even if the pendulum has now definitely swung in the
opposite direction, only confusion could result if we failed to recognise the
factors which have created this attitude and which justify it in its proper
sphere.
There were three main obstacles to
the advance of modern Science against which it has struggled ever since its
birth in the Renaissance period; and much of the history of its progress could
be written in terms of its gradual overcoming of these difficulties. The first, although not the most
important, was that for various reasons scholars had grown used to devoting most
of their effort to analysing other people’s opinions this was so not only
because in the then most developed disciplines, like theology and law, this was
the actual object, but even more because, during the decline of Science in the
Middle Ages, there seemed to be no better way of arriving at the truth about
nature than the study of the work of the great men of the past. More important was the second fact, the
belief that the “ideas” of the things possessed some transcendental reality, and
that by analysing ideas we could learn something or everything about the
attributes of the real things. The
third and perhaps most important fact was that man had begun everywhere to
interpret the events in the external world after his own image, as animated by a
mind like his own, and that the natural sciences therefore met everywhere
explanations by analogy with the working of the human mind, with
“anthropomorphic” or “animistic” theories which searched for a purposive design
and were satisfied if they had found in it the proof of the operation of a
designing mind.
1. On the significance of this “law
of inertia “in the scientific sphere and its effects on the social disciplines
see H. Munsterberg, Grundzuge der Psychologie, 1909, vol. I, p. 137
E. Bernheim, Lehrbuch der historeschen Methode und
Geschichts-philosophie, 5th ed., 1908, p. 144., and L. v. Mises,
Naiionalôkononie, 1940, p. 24. The phenomenon that we tend to
overstrain a new principle of explanation is, perhaps, more familiar with
respect to particular scientific doctrines than with respect to Science as such.
Gravitation and evolution,
relativity and psycho-analysis all have for certain periods been strained far
beyond their capacity. That for
Science as a whole the phenomenon has lasted even longer and had still more
far-reaching effects is not surprising in the light of this
experience.
Against all this the persistent
effort of modern Science has been to get down to “objective facts”, to cease
studying what men thought about nature or to regard the given concepts as true
images of the real world, and, above all, to discard all theories which
pretended to explain phenomena by imputing to them a directing mind like our
own. Instead, its main task became
to revise and reconstruct the concepts formed from ordinary experience on the
basis of a systematic testing of the phenomena, so as to be better able to
recognise the particular as an instance of a general rule. In the course of this process not only
the provisional classification which the commonly used concepts provided, but
also the first distinctions between the different perceptions which our senses
convey to us, had to give way to a completely new and different way in which we
learned to order or classify the events of the external
world.
The tendency to abandon all
anthropomorphic elements in the discussion of the external world has in its most
extreme development even led to the belief that the demand for “explanation”
itself is based on an anthropomorphic interpretation of events and that all
Science ought to aim at is a complete description of nature. [1]
There is, as we shall see,
that element of truth in the first part of this contention that we can
understand and explain human action in a way we cannot with physical phenomena,
and that consequently the term “explain” tends to remain charged with a meaning
not applicable to physical phenomena. [2]
The actions of other men were probably the first
experiences which made man ask the question “why ?”, and it took him a long time
to learn, and he has not yet fully learned, [3] that with events other than human actions he could not
expect the same kind of “explanation” as he can hope to obtain in the case of
human behaviour.
That the ordinary concepts of the
kind of things that surround us do not provide an adequate classification which
enables us to state general rules about their behaviour in different
circumstances, and that in order to do so we have to replace them by a different
classification of events is familiar. It may, however, still sound surprising
that what is true of these provisional abstractions should also be true of the
very sense qualities which most of us are inclined to regard as the ultimate
reality. But although the idea that
science breaks up and replaces the system of classification which our sense
qualities represent is less familiar, yet this is precisely what Science does.
It
1. This view was, I believe, first
explicitly formulated by the German physicist G. Kirchhofl and later made widely
known through the philosophy of Ernst Mach.
2. The word “explain” is only one of
many important instances where the natural sciences were forced to use concepts
originally formed to describe human phenomena. “Law” and “cause”, “function” and
“order”, “organism” and “organisation” are others of similar importance where
Science has more or less succeeded in freeing them from their anthropomorphic
connotations, while in other instances, particularly, as we shall see, in the
case of “purpose”, though it cannot entirely dispense with them, it has not yet
succeeded in doing so and is therefore with some justification afraid of using
these terms.
3. Cf. T. Percy Nunn,
Anthropomorphism and Physics (Proceedings of the
271
begins with the realisation that
things which appear to us the same do not always behave in the same manner, and
that things which appear different to us sometimes prove in all other respects
to behave in the same way; and it proceeds from this experience to
substitute for the classification of events which our senses provide a new one
which groups together not what appears alike but what proves to behave in the
same manner in similar circumstances.
While the naive mind tends to assume
that external events which our senses register in the same or in a different
manner must be similar or different in more respects than merely in the way in
which they affect our senses, the systematic testing of Science shows that this
is frequently not true. It
constantly shows that the “facts” are different from “appearances”.. We
learn to regard as alike or unlike not simply what by itself looks, feels,
smells, etc., alike or unlike, but what regularly appears in the same spatial
and temporal context. And we learn
that the same constellation of simultaneous sense perceptions may prove to
proceed from different “facts”, or that different combinations of sense
qualities may stand for the same “fact”. A white powder with a certain weight and
“feel” and without taste or smell may prove to be any one of a number of
different things according as it appears in different circumstances or after
different combinations of other phenomena, or as it produces different results
if combined in certain ways with other things. The systematic testing of behaviour in
different circumstances will thus often show that things which to our senses
appear different behave in the same or at least a very similar manner. We may not only find that, e.g., a blue
thing which we see in a certain light or after eating a certain drug is the same
thing as the green thing which we see in different circumstances, or that what
appears to have an elliptical shape may prove to be identical with what at a
different angle appears to be circular, but we may also find that phenomena
which appear as different as ice and water are “really” the same
“thing”..
This process of re-classifying
“objects” which our senses have already classified in one way, of substituting
for the “secondary” qualities in which our senses arrange external stimuli a new
classification based on consciously established relations between classes of
events is, perhaps, the most characteristic aspect of the procedure of the
natural sciences. The whole history
of modern Science proves to be a process of progressive emancipation from the
innate classification of the external stimuli till in the end they completely
disappear and “physical science has now reached a stage of development that
renders it impossible to express observable occurrences in language appropriate
to what is perceived by our senses. The only appropriate language is that of
mathematics”, [1] i.e. the discipline developed to describe complexes of
relationships between elements which have no
1. L.S. Stebbing, Thinking to Some Purpose, (“Pelican”
Books), 1939, p.107. Cf. also B.
Russell, The Scientific Outlook,
1935, p.85.
272
attributes except these relations.
While at first the new elements
into which the physical world was “analysed” were still endowed with “qualities”, i.e. conceived as in principle visible or touchable, neither electrons nor
waves, neither the atomic structure nor electromagnetic fields can be adequately
represented by mechanical models.
The new world which man thus creates
in his mind, and which consists altogether of entities which cannot be perceived
by our senses, is yet in a definite way related to the world of our senses.
It serves, indeed, to explain the
world of our senses. The world of
Science might in fact be described as no more than a set of rules which enables
us to trace the connections between different complexes of sense perceptions.
But the point is that the attempts
to establish such uniform rules which the perceptible phenomena obey have been
unsuccessful so long as we accepted as natural units, given entities, such
constant complexes of sense qualities as we can simultaneously perceive. In their place new entities,
“constructs”, are created which can be defined only in terms of sense
perceptions obtained of the “same” thing in different circumstances and at
different times - a procedure which implies the postulate that the thing has in
some sense remained the same although all its perceptible attributes may have
changed.
In other words, although the
theories of physical science at the stage which has now been reached can no
longer be stated in terms of sense qualities, their significance is due to the
fact that we possess rules, a “key”, which enables us to translate them into
statements about perceptible phenomena. One could compare the relation of modern
physical theory to the world of our senses to that between the different ways in
which one might “know” a dead language existing only in inscriptions in peculiar
characters. The combinations of
different characters of which these inscriptions are composed and which are the
only form in which the language occurs correspond to the different combinations
of sense qualities. As we come to
know the language we gradually learn that different combinations of these
characters may mean the same thing and that in different contexts the same group
of characters may mean different things. [1] As we learn to recognise these new entities we penetrate
into a new world where the units are different from the letters and obey in
their relations definite laws not recognisable in the sequence of the individual
letters. We can describe the laws
of these new units, the laws of grammar, and all that can be expressed by
combining the words according to these laws, without ever referring to the
individual letters or the principle on which they are combined to make up the
signs for whole words. It would be
possible, e.g., to know all
1. The comparison becomes more
adequate if we conceive only small groups of characters, say words, to appear to
us simultaneously, while the groups as such appear to us only in a definite time sequence, as the words (or
phrases) actually do when we read.
273
about the grammar of Chinese or
Greek and the meaning of all the words in these languages without knowing
Chinese or Greek characters (or the sounds of the Chinese or Greek words). Yet if Chinese or Greek occurred only
written in their respective characters all this knowledge would be of as little
use as knowledge of the laws of nature in terms of abstract entities or
constructs without knowledge of the rules by which these can be translated into
statements about phenomena perceptible by our senses.
As in our description of the
structure of the language there is no need for a description of the way in which
the different units are made up from various combinations of letters (or
sounds), so in our theoretical description of nature the different sense
qualities through which we perceive nature disappear. They are no longer treated as part of the
object and come to be regarded merely as ways in which we spontaneously perceive
or classify external stimuli. [1]
The problem how man has come to
classify external stimuli in the particular way which we know as sense qualities
does not concern us here. [2] There are only two connected points which
must be briefly mentioned here and to which we must come back later. One is that, once we have learnt that the
things in the external world show uniformity in their behaviour towards each
other only if we group them in a way different from that in which they appear to
our senses, the question why they appear to us in that particular way, and
especially why they appear in the same [3] way to different people becomes a
genuine problem calling for an answer. The second is that the fact that
different men do perceive different things in a similar manner which does not
correspond to any known relation between these things in the external world,
must be regarded as a significant datum of experience which must form the
starting point in any discussion of human behaviour.
We are not interested here in the
methods of the Sciences for their own sake and we cannot follow up this topic
further. The point
we
1. The old puzzle over the miracle
that qualities which are supposed to attach to the things are transmitted to the
brain in the form of indistinguishable nervous processes differing only in the
organ which they affect, and then in the brain re-translated into the original
qualities, ceases to exist. We have
no evidence for the assumption that the things in the external world in their
relations to each other differ or are similar in the way our senses suggest to
us. In fact we have in many
instances evidence to the contrary.
2. It may just be mentioned that this
classification is probably based on a pre-conscious learning of those
relationships in the external world which are of special relevance for the
existence of the human organism in the kind of environment in which it developed, and that it is closely
connected with the infinite number of “conditioned reflexes” which the human
species had to acquire in the course of its evolution. The classification of the stimuli in our
central nervous system is probably highly “pragmatic” in the sense that it is
not based on all observable relations between the external things, but stresses
those relations between the external world (in the narrower sense) and our body
which in the course of evolution have proved significant for the survival of the
species. The human brain will e.g.
classify external stimuli largely by their association with stimuli emanating
from the reflex action of parts of the human body caused by the same external
stimulus without the intervention of the brain.
3. That different people classify
external stimuli in the “same” way does not mean that individual sense qualities
are the same for different people (which would be a meaningless statement) but
that the systems of sense qualities of different people have a common structure
(are homeomorphic systems of relations).
274
mainly wanted to stress was that
what men know or think about the external world or about themselves, their
concepts and even the subjective qualities of their sense perceptions are to
Science never ultimate reality, data to be accepted. Its concern is not what men think about
the world and how they consequently behave, but what they ought to think. The concepts which men actually employ,
the way in which they see nature, is to the scientist necessarily a provisional
affair and his task is to change this picture, to change the concepts in use so
as to make more definite and certain our statements about the new classes of
events.
There is one consequence of all this
which in view of what follows requires a few more words. It is the special significance which
numerical statements and quantitative measurements have in the natural sciences.
There is a widespread impression
that the main importance of this quantitative nature of most natural sciences is
their greater precision. This is
not so. It is not merely adding
precision to a procedure which would be possible also without the mathematical
form of expression - it is of the essence of this process of breaking up our
immediate sense data and of substituting for a description in terms of sense
qualities one in terms of elements which possess no attributes but these
relations to each other. It is a
necessary part of the general effort of getting away from the picture of nature
which man has now, of substituting for the classification of events which our
senses provide another based on the relations established by systematic testing
and experiment.
To return to our more general
conclusion: the world in which Science is interested is not that of our given
concepts or even sensations. Its
aim is to produce a new organisation of all our experience of the external world
and in doing so it has not only to remodel our concepts but also to get away
from the secondary sense qualities and to replace them by a different
classification of events. The
picture which man has actually formed of the world and which guides him well
enough in his daily life, his perceptions and concepts, are for Science not an
object of study but an imperfect instrument to be improved. Nor is Science as such interested in the
relation of man to things, in the way in which man’s existing view of the world
leads him to act. It is
rather such a relation, or better a continuous process of changing these
relationships. When the scientist
stresses that he studies objective facts he means that he tries to study things
independently of what men think or do about them. The views people hold about the external
world is to him always a stage to be overcome.
But what are the results of people
perceiving the world and each other in a certain manner, as sensations and
concepts which for different people are organised in a similar structure? What can we say about the whole network
of activities in which men are guided by the kind of knowledge they have and a
great part of which at any time is
275
common to most of them? While Science is all the time busy
revising the picture of the external world that man-possesses, and while to it
this picture is always provisional, the fact that man has a definite picture,
and that the picture of all beings whom we recognise as thinking men and whom we
can understand is to some extent alike, is no less a reality of great
consequence and the cause of certain events. Till Science has literally completed its
work and not left the slightest unexplained residue in man’s intellectual
processes, the facts of our mind remain not only data to be explained but also
data on which the explanation of human action guided by those mental phenomena
must be based. Here a new set of
problems arises with which the scientist does not directly deal. Nor is it obvious that the particular
methods to which he has become used would be appropriate to these problems.
The question is here not how far
man’s picture of the external world fits the facts, but how by his actions,
determined by the views and concepts he possesses, man builds up another world
of which the individual becomes a part. And by “the views and concepts people
hold” we do not mean merely their knowledge of external nature. We mean all they know and believe about
themselves, other people, and the external world, in short everything which
determines their actions, including science itself.
This is the field to which the
social studies or the “moral sciences” address themselves.
Before we proceed further to
consider the effect of scientism on the study of society it will be expedient briefly to
survey the peculiar object and the methods of the social studies. They deal, not with the relations between
things, but with the relations between men and things or the relations between
man and man. They are concerned
with man’s actions and their aim is to explain the unintended or undesigned
results of the actions of many men.
Not all the disciplines of knowledge
which are concerned with the life of men in groups, however, raise problems
which differ in any important respect from those of the natural sciences. The spread of contagious diseases is
evidently a problem closely connected with the life of man in society and yet
its study has none of the special characteristics of the social sciences in the
narrower sense of the term. Similarly the study of heredity, or the
study of nutrition, or the investigation of changes in the number or age
composition of populations, do not differ significantly from similar studies of
animals. [1] And the
same applies to certain branches of anthropology, or ethnology, in so far as
they are concerned with racial characteristics or other physical attributes of
men. There are, in other words,
natural sciences of man which do not necessarily raise problems with which we
cannot cope with the methods of the natural sciences. Wherever we are
1. Most of the problems of this
latter group will, however, raise problems of the kind characteristic of the
social sciences proper when we attempt to explain them.
concerned with unconscious reflexes
or processes in the human body there is no obstacle to treating and
investigating them “mechanically” as caused by objectively observable external
events. They take place without the
knowledge of the person concerned and without his having power to modify them;
and the conditions under which they are produced can be established by external
observation without recourse to the assumption that the person observed
classifies the external stimuli in any way differently from that in which they
can be defined in purely physical terms.
The social sciences in the narrower
sense, i.e. those which used to be described as the moral sciences,
[1] are concerned with man’s conscious or reflected action,
actions where a person can be said to choose between various courses open to
him, and here the situation is essentially different. The external stimulus which may be said
to cause or occasion such actions can of course also be defined in purely
physical terms. But if we tried to
do so for the purposes of explaining human action, we would confine ourselves to
less than we know about the situation. It is not because we have found two
things to behave alike in relation to other things, but because they appear
alike to us, that we expect them to appear alike to other people. We know that people will react in the
same way to external stimuli which according to all objective tests are
different, and perhaps also that they will react in a completely different
manner to a physically identical stimulus if it affects their body in different
circumstances or at a different point. We know, in other words, that in his
conscious decisions man classifies external stimuli in a way which we know
solely from our own subjective experience of this kind of classification. We take it for granted that other men
treat various things as alike or unlike as we do, although no objective test, no
knowledge of the relations of these things to other parts of the external world
justifies this. Our procedure is
based on the experience that other people as a rule (though not always - e.g.
not if they are colourblind or mad) classify their sense impressions as we
do.
But we not only know this. It would be impossible to explain or
understand human action without making use of this knowledge. People do behave in the same manner
towards things, not because these things are identical in a physical sense, but
because they have learnt to classify them as belonging to the same group,
because they can put them to the same use or expect from them what to the people
concerned is an equivalent effect. In fact, most of the objects of social or
human action are not “objective facts” in the special narrow sense in which this
term is used by the Sciences and contrasted to “opinions”, and cannot at all be
defined in physical terms. So
far
1 Sometimes the German term
Geisteswissenschaften is now used in English to describe the social
sciences in the specific narrow sense with which we are here concerned. But considering that this German term was
introduced by the translator of J. S. Mill’s Logic to render the latter’s
“moral sciences”, there seems to be little case for using this translation
instead of the original English term.
277
as human actions are concerned the
things are what the people acting think they are.
This is best shown by an example for which we can choose
almost any object of human action.
Take the concept of a “tool” or “instrument”, or of any particular
tool such as a hammer or a barometer. It is easily seen that these concepts
cannot be interpreted to refer to
“objective facts”, i.e. to things irrespective of what people think about them. Careful logical analysis of these
concepts will show that they all express relationships between several (at least
three) terms, of which one is the acting or thinking person, the other some
desired or imagined effect, and the third a thing in the ordinary sense. If the reader will attempt a definition
he will soon find that he cannot give one without using some terms such as
“suitable for” or “ intended for” or some other expression referring to the use
for which it is designed by somebody. [1] And a definition which is to comprise all
instances of the class will not contain any reference to its substance, or
shape, or other physical attribute. An ordinary hammer and a steam-hammer, or an aneroid barometer
and a mercury barometer, have
nothing in common except the purpose for which men think they can be
used.
It must not be objected that these
are merely instances of abstractions to
arrive at generic terms just as those used in the physical sciences. The point is that they are abstractions from all the
physical attributes of the things in question and that their definitions must
run entirely in terms of mental attitudes of men towards the things. The significant difference between the
two views of the things stands out clearly if we think e.g. of the problem of
the archaeologist trying to determine
whether what looks like a stone implement is in truth an “artifact”, made
by man, or merely a chance product of nature. There is no way of deciding this but by
trying to understand the working of the mind of prehistoric man, of attempting
to understand how he would have made such an implement. If we are not more aware that this is
what we actually do in such cases and that we necessarily rely on our own
knowledge of the working of a human mind, this is so mainly because of the
difficulty (or impossibility) of conceiving of an observer who does not possess
a human mind and interprets what he sees in terms of the working of his own
mind.
1.
It has often been suggested that for this
reason economics and the other theoretical sciences of society should be
described as “teleological” sciences. This term is, however, misleading as it
is apt to suggest that not only the actions of individual men but also the
social structures which they produce are deliberately designed by somebody for a
purpose. It leads thus either to an
“explanation” of social phenomena in terms of ends fixed by some superior power
or to the opposite and no less fatal mistake of regarding all social phenomena
as the product of conscious human design, to a “ pragmatic” interpretation which
is a bar to all real understanding of these phenomena. Some authors, particularly 0. Spann, have used the term
“teleological” to justify the most abstruse metaphysical speculations. Others, like K. Englis, have used it in
an unobjectionable manner and sharply distinguished between “teleological” and
“normative” sciences. (See
particularly the illuminating discussions of the problem in K. Englis, Teleologische Theorie der Wirischaft,
Brünn, 1930.) But the term remains nevertheless
misleading. If a name is needed the
term “praxeological” sciences, deriving from A. Espinas, adopted by T. Kotarbinsky
and E. Slutsky, and now clearly defined and extensively used by L. v. Mises
(Nationalökonomie, Geneva, 1940)
would appear to be the most appropriate.
There are no better terms available
to describe this difference between the approach of the natural and the social
sciences than to call the former objective and the latter subjective. Yet these terms are ambiguous and without
further explanation their use might prove misleading. While for the natural scientist the
contrast between objective facts and subjective opinions is a simple one, the
distinction cannot as readily be applied to the object of the social
sciences. The reason for this is
that the object, the “facts” of the social sciences are also opinions - not
opinions of the student of the social phenomena, of course, but opinions of
those whose actions produce his object. In one sense his facts are thus as little
“subjective” as those of the natural sciences, because they are independent of
the particular observer; what he studies is not determined by his fancy or
imagination but is equally given to the observation by different people. But in another sense in which we
distinguish facts from opinions the facts of the social sciences are merely
opinions, views held by the people whose actions we study. They differ from the facts of the
physical sciences in being beliefs or opinions held by particular people,
beliefs which as such are our data, irrespective of whether they are true or
false, and which, moreover, we cannot directly observe in the minds of the
people but recognise from what they do and say merely because we have ourselves a
mind similar to theirs.
In the sense in which we here use
the contrast between the subjectivist approach of the social sciences and the
objectivist approach of the natural sciences it says little more than what is
commonly expressed by saying that the former deal in the first instance with the
phenomena of individual minds, or mental phenomena, and not directly with
material phenomena. They deal with
phenomena which can be understood only because the object of our study has a
mind of a structure similar to our own. That this is so is no less an empirical
fact than our knowledge of the external world. It is shown not merely by the possibility of
communicating with other people - we act on this knowledge every
time we speak or write; it is confirmed by the very results of our study of the
external world. So long as it was
naďvely assumed that all the sense qualities (or their relations) which
different men had in common were properties of the external world it could be
argued that our knowledge of other minds is no more than our common knowledge of
the external world. But once we
have learnt that our senses make things appear to us alike or different which
prove to be alike or different in none of their relations between themselves,
but only in the way in which they affect our minds, this fact that men classify
external stimuli in a particular way becomes a significant fact of experience.
While qualities disappear from our
scientific picture of the external world they must remain part of our scientific
picture of the human mind. In fact
the elimination of qualities from our picture of the external world does not
mean that these qualities do not “exist”, but that when we study qualities we
study not the physical world but the mind of man.
279
The reason why it is expedient to retain the terms “subjective” and “objective” for
the contrast with which we are concerned, although they inevitably carry with
them some misleading associations, is
not only that the terms “mental”
and “material” carry with them an even worse burden
of metaphysical associations and that at least in economics [1]
the term “subjective” has long come to be used precisely
in the sense in which we use it here. What is more important is that the term
“subjective” stresses another important fact to which we shall yet have to
refer: that the knowledge and beliefs of different people, while possessing that
common structure which makes communication possible, will yet be different and
often conflicting in many respects. If we could assume that all the knowledge
and beliefs of different people were identical, or if we were concerned with a
single mind, it would not matter whether we described it as an “objective” fact
or as a subjective phenomenon. But
the concrete knowledge which guides the action of any group of people never
exists as a consistent and coherent body. It only exists in the dispersed,
incomplete, and inconsistent form in which it appears in many individual minds
and this dispersion and imperfection of all knowledge is one of the basic facts
from which the social sciences have to start. What philosophers and logicians often
contemptuously dismiss as “mere” imperfections of the human mind becomes in the
social sciences a basic fact of crucial importance. We shall later see how the opposite
“absolutist” view, as if knowledge, and particularly the concrete knowledge of
particular circumstances, were given “objectively”, i.e. as if it were the same
for all people, is a source of constant errors in the social sciences.
The “tool” or “instrument” which we
have before used as an illustration of the objects of human action can be
matched by similar instances from any other branch of social study. A “word” or a “sentence”, a “crime” or a
“punishment”, [2] are of course not objective facts in the sense that
they can be defined without referring to our knowledge of people’s conscious
intentions with regard to them. And
the same is true quite generally wherever we have to explain human behaviour towards things;
these things must then not be defined in terms of what we might find out about
these things by the objective methods of science, but in terms of what the
person acting thinks about them. A
medicine or a cosmetic, e.g., for the purposes of social study, are not what
cures an ailment or improves a person’s looks, but what people think will have
that effect. Any knowledge which we
may happen to possess about the true nature of the material thing, but which the
people whose action we want
1. I believe also in the discussions on psychological
methods.
2. It is sheer illusion when some sociologists believe
that they can make “crime” an objective fact by defining it as those acts for
which a person is punished. This
only pushes the subjective element a step further back, but does not eliminate
it. “Punishment” is still a
subjective thing which cannot be defined in objective terms. If, e.g., we see that every time a person
commits a certain act he is made to wear a chain round his neck, this does not
tell us whether it is a reward or a punishment.
to explain do not possess, is as
little relevant to the explanation of their actions as our private disbelief in
the efficiency of a magic charm will help us to understand the behaviour of the
savage who believes in it. If in
investigating our contemporary society the “laws of nature” which we have to use
as a datum because they affect people’s actions are approximately the same as
those which figure in the works of the natural scientists, this is for our
purposes an accident which must not deceive us about the different character of
these laws in the two fields. What
is relevant in the study of society is not whether these laws of nature are true
in any objective sense, but solely whether they are believed and acted upon by
the people. If the current
“scientific” knowledge of the society we study included the belief that the soil
will bear no fruit till certain rites or incantations are performed, this would
be quite as important for us as any law of nature which we now believe to be
correct. And all the “physical laws
of production” which we meet, e.g., in economics, are not physical laws in the
sense of the physical sciences but people’s beliefs about what they can
do.
What is true about the relations of
men to things is, of course, even more true of the relations between men, which
for the purposes of social study cannot be defined in the objective terms of the
physical sciences but only in terms of human beliefs. Even such a seemingly purely biological
relationship as that between parent and child is in social study not defined in
physical terms and cannot be so defined for their purposes: it makes no
difference as regards people’s actions whether their belief that a particular
child is their natural offspring is mistaken or not.
All this stands out most clearly in
that among the social sciences whose theory has been most highly developed,
economics. And it is probably no
exaggeration to say that every important advance in economic theory during the
last hundred years was a further step in the consistent application of
subjectivism. [1] That the
objects of economic activity cannot be defined in objective terms but only with
reference to a human purpose goes without saying. Neither a “commodity” or an “economic
good”, nor “food” or “money”, can be defined in physical terms but only in terms
of views people hold about things. Economic theory has nothing to say about
the little round disks of metal as which an objective or materialist view might
try to define money. It has nothing
to say about iron or steel, timber or oil, or wheat or eggs as such. The history of any
particular
1.
This is a development which has probably
been carried out most consistently by L. v. Mises and I believe that most
peculiarities of his views which at first strike many readers as strange and
unacceptable are due to the fact that in that consistent development of the
subjectivist approach he has for a long time moved ahead of his contemporaries.
Probably all the characteristic
features of his theories, from his theory of money (so much ahead of his time in
1912!) to what he calls his
a priorism, his views
about mathematical economics in general and the measurement of economic
phenomena in particular, and his criticism of planning all follow directly
(although, perhaps, not all with the same necessity) from this central position.
See particularly his
Grundprobleme der Nationalokonomie (
281
commodity indeed shows that as human
knowledge changes the same material
thing may
represent quite
different economic categories.
Nor could we distinguish in physical
terms whether two men barter or exchange or whether they are playing some game
or performing some religious ritual.
Unless we can understand
what the acting people mean by
their actions any attempt to explain them, i.e., to subsume them under rules
which connect similar situations with similar actions, are bound to
fail.
This essentially subjective
character of all economic theory, which it has developed much more clearly than
any other branch of the social sciences, but which I believe it has in common
with all the social sciences in the narrower sense, is best shown by a closer
consideration of one of its simplest theorems, e.g., the “law of rent”. In its original form this was a
proposition about changes in the value of a thing defined in physical terms,
namely land. It stated, in effect,
[1]
that changes in the value of the commodities in the production of which land was
required would cause much greater changes in the value of land than in the value
of the other factors whose co-operation was required. In this form it is an empirical
generalisation which tells us neither why nor under what conditions it will be
true. In modern economics its place
is taken by two distinct propositions of different character which combined lead
to the same conclusion. One is part
of pure economic theory and asserts that whenever in the production of one
commodity different (scarce) factors are required in proportions which can be
varied, and of which one can be used only for this (or only for comparatively
few) purposes while the others are of a more general usefulness, a change in the
value of the product will affect the value of the former more than that of the
latter. The second proposition is
the empirical statement that land is as a rule in the position of the first kind
of factor, i.e. that people know of many more uses for their labour than they
will know for a particular piece of land. The first of these propositions, like all
propositions of pure economic theory, is a statement about the implications of
certain human attitudes towards things and as such necessarily true irrespective
of time and place. The second is an
assertion that the conditions postulated in the first exist at a given time and
with respect to a particular piece of land because the people dealing with it
hold certain beliefs about its usefulness and the usefulness of other things
required in order to cultivate it. As an empirical generalisation it can of
course be disproved and frequently will be disproved. If, e.g., a piece of land is used to
produce some special fruit the cultivation of which requires a certain rare
skill, the effect of a fall in the demand for the fruit may fall exclusively on
the wages.
1. In the extreme Ricardian form the
statement is, of course, that a change in the value of the product will affect
only the value of the land and leave the value of the co-operating labour
altogether unaffected. In this form
(connected with Ricardo’s “objective” theory of value) the proposition can be
regarded as a limiting case of the more general proposition given in the
text
of the men with the special skill,
while the value of the land may remain practically unaffected. In such a situation it would be labour to
which the “law of rent” applies. But when we ask “why?” or: “how can I
find out whether the law of rent will apply in any particular case?”, no
information about the physical attributes of the land, the labour, or the
product can give us the answer. It
depends on the subjective
factors stated in the theoretical law of rent; and only in so far as we can find
out what the knowledge and beliefs of the people concerned are in the relevant
respects shall we be in a position to predict in what manner a change in the
price of the product will affect the prices of the factors. What is true of the theory of rent is
true of the theory of price generally: it has nothing to say about the behaviour
of the price of iron or wool, of things of such and such physical properties,
but only about things about which people have certain beliefs and which they
want to use in a certain manner. And our explanation of a particular price
phenomenon can therefore also never be affected by any additional knowledge
which we (the observers) acquire about the good concerned, but only by
additional knowledge about what the people dealing with it think about it.
We cannot here enter into a similar
discussion of the more complex phenomena with which economic theory is concerned
and where in recent years progress has been particularly closely connected with
the advance of subjectivism. We can
only point to the new problems which these developments make appear more and
more central, such as the problem of the compatibility of intentions and
expectations of different people, of the division of knowledge between them, and
the process by which the relevant knowledge is acquired and expectations formed.
[1] We are not here concerned, however, with the specific
problems of economics, but with the common character of all disciplines which
deal with the results of conscious human action. The points which we want to stress are
that in all such attempts we must start from what men think and mean to do, from
the fact that the individuals which compose society are guided in their actions
by a classification of things or events in a system of sense qualities and
concepts which has a common structure and which we know because we, too, are
men, and that the concrete knowledge which different individuals possess will
differ in important respects. Not
only man’s action towards external objects but also all the relations between
men and all the social institutions can be understood only in terms of what men
think about them. Society as we
know it is, as it were, built up from the concepts and ideas held by the people;
and social phenomena can be recognised by us and have meaning to us only as they
are reflected in the minds of men.
The structure of men’s mind, the
common principle on which they
1. For some discussion of these
problems see the author’s article “Economics and Knowledge”, Economica, February
1937.
283
classify external events, provide us
with the knowledge of the recurrent elements of which different social
structures are built up and in terms of which we can alone describe and explain
them. While concepts or ideas can,
of course, exist only in individual minds, and while, in particular, it is only
in individual minds that different ideas can act upon another, it is not the
whole of the individual minds in all their complexity, but the individual
concepts, the views people have formed of each other and the things, which form
the true elements of the social structure. If the social structure can remain the
same although different individuals succeed each other at particular points,
this is not because the individuals which succeed each other are
completely identical, but because they succeed each other in
particular relations, in particular attitudes they take towards other people and
as the objects of particular views held by other people about them. The individuals are merely the foci
in the network of relationships and it is the various attitudes of the
individuals towards each other (or their similar or different attitudes towards
physical objects) which form the recurrent, recognisable and familiar elements
of the structure. If one policeman
succeeds another at a particular post, this does not mean that the new man will
in all respects be identical with his predecessor, but merely that he succeeds
him in certain attitudes towards his fellow man and as object of certain
attitudes of his fellow men which are relevant to his function as policeman.
But this is sufficient to preserve
a constant structural element which can be separated and studied in
isolation.
While we can recognise these
elements of human relationships only because they are known to us from the
working of our own minds, this does not mean that the significance of their
combination in a particular pattern relating different individuals must be
immediately obvious to us. It is
only by the systematic and patient following up of the implications of many
people holding certain views that we can understand, and often even only learn
to see, the unintended and often uncomprehended results of the separate and yet
interrelated actions of men in society. That in this effort to reconstruct these
different patterns of social relations we must relate the individual’s action
not to the objective qualities of the persons and things towards which he acts,
but that our data must be man and the physical world as they appear to the men
whose actions we try to explain, follows from the fact that only what people
know or believe can enter as a motive into their conscious
action.
At this point it becomes necessary
to interrupt the main argument for a little in order to safeguard ourselves
against a misconception which might arise from what has just been said. The stress which we have laid on the fact
that in the social sciences our data or “facts” are themselves ideas or concepts
must, of course, not be understood
284
to mean that all the concepts with
which we have to deal in the social sciences are of this character. There would be no room for any scientific
work if this were so; and the social sciences no less than the natural
sciences aim at revising the popular concepts which men have formed about the
objects of their study, and at replacing them by more appropriate ones. The special difficulties of the social
sciences and much confusion about their character derive precisely from the fact
that in them ideas appear in two capacities, as it were, as part of their object
and as ideas about the object. While in the natural sciences the
contrast between the object of our study and our explanation of it coincides
with the distinction between ideas and objective facts, in the social sciences
it is necessary to draw a distinction between those ideas which are
constitutive of the phenomena we want to explain and the ideas which
either we ourselves or the very people whose actions we have to explain may have
formed about these phenomena and which are not the cause of, but theories
about, the social structures.
This special difficulty of the
social sciences is a result not merely of the fact that we have to distinguish
between the views held by the people which are the object of our study and our
views about them, but also from the fact that the people who are our object
themselves not only are motivated by ideas but also form ideas about the
undesigned results of their actions - popular theories about the various social
structures or formations which we share with them and which our study has to
revise and improve. The danger of substituting
“concepts” (or “theories”) for the “facts” is by no means absent in the social
sciences and failure to avoid it has exercised as detrimental an effect here as
in the natural sciences [1] ; but it appears on a different plane
and is very inadequately expressed by the contrast between “ideas” and “facts”.
The real contrast is between ideas
which by being held by the people become the causes of a social phenomenon and
the ideas which people form about that phenomenon. That these two classes of ideas are
distinct (although in different contexts the distinction may have to be drawn
differently [2] can easily be shown. The changes in the opinions which people
hold about a particular commodity and which we recognise as the cause of a
change in the price of that commodity stand clearly in a different class from
the ideas which the same people may have formed about the causes of the change
in price or about
1 Cf. the excellent discussions of the
effects of Begriffsrealismus on economics in W. Eucken, Die Grundlagen
der Nasionalôkononiie,
2. In some contexts concepts which by
another social science are treated as mere theories to be revised and improved
upon may have to be treated as data. One could, e.g., conceive of a “science
of politics” showing what kind of political action follows from the people
holding certain views on the nature of society and for which these views would
have to be treated as data. But
while in man’s actions towards social phenomena, i.e. in explaining his
political actions, we have to take his views about the constitution of society
as given, we can on a different level of analysis investigate their truth or
untruth. The fact that a particular
society may believe that its institutions have been created by divine
intervention we would have to accept as a fact in explaining the politics of
that society but it need not prevent us from showing that this view is probably
false.
285
the “nature of value” in general.
Similarly, the beliefs and opinions
which lead a number of people regularly to repeat certain acts, e.g. to produce,
sell, or buy certain quantities of commodities, are entirely different from the
ideas they may have formed about the whole of the “society”, or the “economic
system”, to which they belong and which the aggregate of all their actions
constitutes. The first kind of
opinions and beliefs are a condition of the existence of the “wholes” which
would not exist without them; they are, as we have said, “constitutive”,
essential for the existence of the phenomenon which the people refer to as
“society” or the “economic system”, but which will exist irrespectively of the
concepts which the people have formed about these wholes.
It is very important that we should
carefully distinguish between the motivating or constitutive opinions on the one
hand and the speculative or explanatory views which people have formed about the
wholes; confusion between the two is a source of constant danger. It is the ideas which the popular mind
has formed about such collectives as “society” or the “economic system”,
“capitalism” or “imperialism”, and other such collective entities, which the
social scientist must regard as no more than provisional theories, popular
abstractions, and which he must not mistake for facts. That he consistently refrains from
treating these pseudo-entities as “facts”, and that he systematically starts
from the concepts which guide individuals in their actions and not from the
results of their theorising about their actions, is the characteristic feature
of that methodological individualism which is closely connected with the
subjectivism of the social sciences. The scientistic approach, on the other
hand, because it is afraid of starting from the subjective concepts determining
individual actions, is, as we shall presently see, regularly led into the very
mistake it attempts to avoid, that of treating as facts those collectives which
are no more than popular generalisations. Trying to avoid using as data the
concepts held by individuals where they are clearly recognisable and explicitly
introduced as what they are, people brought up in scientistic views frequently
and naďvely accept the speculative concepts of popular usage as definite facts
of the kind they are familiar with.
We shall have to discuss the nature
of this collectivist prejudice inherent in the scientistic approach more fully
in a later section.
A few more remarks must be added
about the specific theoretical method which corresponds to the systematic
subjectivism and individualism of the social sciences. From the fact that it is the concepts and
views held by individuals which are directly known to us and which form the
elements from which we must build up, as it were, the more complex phenomena
follows another important difference between the method of the social
disciplines and the natural sciences. While in the former it is the attitudes
of individuals which are the familiar elements and by the
combination
of which we try to reproduce the
complex phenomena, the results of individual actions, which are much less known
- a procedure which often leads to the discovery of principles of
structural coherence of the complex phenomena which had not (and perhaps could
not) be established by direct observation - the physical sciences must needs
commence with the complex phenomena of nature and work backwards to infer the
elements from which they are composed. The place where the human individual
stands in the order of things brings it about that in one direction what he
perceives are the comparatively complex phenomena which he analyses, while in
the other direction what is given to him are elements from which more complex
phenomena are composed which he cannot observe as wholes. [1] While the method of the natural sciences
is in this sense analytic, the method of the social sciences is better described
as compositive [2] or
synthetic. It is the so-called
wholes, the groups of elements which are structurally connected, which we learn
to single out from the totality of observed phenomena only as a result of our
systematic fitting together of the elements with familiar properties, and which
we build up or reconstruct from the known properties of the
elements.
It is important to observe that in
all this the various types of individual beliefs or attitudes are not themselves
the object of our explanation,
1.
Cf. Robbins, An Essay on the Nature
and Significance of Economic Science, and ed., 1935, p.105: “In Economics… the
ultimate constituents of our fundamental generalisations are known to us by
immediate acquaintance. In the
natural sciences they arc known only inferentially.” Perhaps the following quotation from an
earlier essay of my own (Collective Economic Planning, 1935, p.ii) may help further to explain
the statement in the text: “The position of man, midway between natural and
social phenomena - of the one of which he is an effect and of the other a cause
- brings it about that the essential basic facts which we need for the
explanation are part of common experience, part of the stuff of our thinking.
In the social sciences it is the
elements of the complex phenomena which are known to us beyond the possibility
of dispute. In the natural sciences
they can be at best surmised.” Cf.
also C. Menger, Unsersuchungen uber die Methoden der Socialwissenschaften,
1883, p.157,
note : [HHC: long
German footnote not reproduce here.]
2.
I borrow the term “ compositive” from a
manuscript note of Carl Menger who in his personal annotated copy of Schmoller’s
review of his Methoden der Socialwissenschaften (Jahrbuch für Gesezgebung.
etc., N.F., 7, 1883, p. 42) wrote it above the word “deductive”
used by Schmoller.
287
but merely the elements from which
we build up the structure of possible relationships between individuals. In so far as we analyse individual
thought in the social sciences the purpose is not to explain that thought but
merely to distinguish the possible types of elements with which we shall have to
reckon in the construction of different patterns of social relationships. It is a mistake, to which careless
expressions by social scientists often give countenance, to believe that their
aim is to explain conscious action. This, if it can be done at all, is a
different task, the task of psychology. For the social sciences the types of
conscious action are data [1] and all they
have to do with regard to these data is to arrange them in such orderly fashion
that they can be effectively used for their task. [2] The problems which they try to answer arise only in so
far as the conscious action of many men produce undesigned results, in so far as
regularities are observed which are not the result of anybody’s design. If social phenomena showed no order
except in so far as they were consciously designed, there would indeed be no
room for theoretical sciences of society and there would be, as is often argued,
only problems of psychology. It is
only in so far as some sort of order arises as a result of individual action but
without being designed by any individual that a problem is raised which demands
a theoretical explanation. But
although people dominated by the scientistic prejudice are often inclined to
deny the existence of any such order (and thereby the existence of an object for
theoretical sciences of society), few if any would be prepared to do so
consistently that at least language shows a definite order which is not the
result of any conscious design can scarcely be questioned.
The reason of the difficulty which
the natural scientist experiences in admitting the existence of such an order in
social phenomena is that these orders cannot be stated in physical terms, that
if we define the elements in physical terms no such order is visible, and that
the units which show an orderly arrangement do not (or at least need not) have
any physical properties in common (except that men react to them in the
“same” way - although the sameness” of different people’s
reaction will again, as a rule, not be definable in physical terms). It is an order in which things behave in
the same way because they mean the same thing to man. If, instead of regarding as alike and
unlike what appears so to the acting man, we were to take for our units only
what Science shows to be alike or unlike, we should probably find no
recognisable order whatever in social phenomena –
1. As Robbins (i.e., p. 6) rightly
says, economists in particular regard “the things which psychology studies as
the data of their own deductions.”
2. That this task absorbs a great
part of the economist’s energies should not deceive us on the fact that by
itself this “pure logic of choice” (or “economic calculus”) does not explain any
facts. For the precise relationship
between the pure theory of the economic calculus and its use in the explanation
of social phenomena I must once more refer to my article “Economics and
Knowledge” (Economica, February,
1937). It should perhaps be added
that while economic theory might be very useful to the director of a completely
planned system in helping him to see what he ought to do to achieve his ends, it
would not help us to explain his actions - except in so far as he was actually
guided by it.
at least not till the natural
sciences had completed their task of analysing all natural phenomena into their
ultimate constituents and psychology had also fully achieved the reverse task of
explaining in all detail how the ultimate units of physical science come to
appear to man just as they do, i.e. how that apparatus of classification
operates which our senses constitute.
It is only in the very simplest
instances that it can be shown briefly and without any technical apparatus how
the independent actions of individuals will produce an order which is no part of
their intentions; and in those instances the explanation is usually so obvious
that we never stop to examine the type of argument which leads us to it. The way in which tracks are formed in a
wild broken country is such an instance. At first everyone will seek for himself
what seems to him the best path. But the fact that such a path has been
used once is likely to make it easier to traverse and therefore more likely to
be used again ; and thus gradually more and more clearly defined tracks arise
and come to be used to the exclusion of other possible ways. Human movements through the district come
to conform to a definite pattern which, although the result of deliberate
decisions of many people, has yet not been consciously designed by anyone. This explanation of how this happens is
an elementary “theory” applicable to hundreds of particular historical
instances; and it is not the observation of the actual growth of any particular
track, and still less of many, from which this explanation derives its cogency,
but from our general knowledge of how we and other people behave in the kind of
situation in which the successive people find themselves who have to seek their
way and who by the cumulative effect of their action create the path. It is the elements of the complex of
events which are familiar to us from everyday experience, but it is only by a
deliberate effort of directed thought that we come to see the necessary effects
of the combination of such actions by many people. We “understand” the way in which the
result we observe can be produced, although we may never be in a position to
watch the whole process or to predict its precise course and result.
[1]
The physicist who wishes to
understand the problems of the social sciences with the help of an analogy from
his own field would have
1. It makes no difference for our
present purpose whether the process extends over a long period of time as it
does in such cases as the evolution of money or the formation of language, or
whether it is a process which is constantly repeated anew as in the case of the
formation of prices or the direction of production under competition. The former instances raise theoretical
(i.e. generic) problems (as distinguished from the specifically historical
problems in the precise sense which we shall have to define later) which are
fundamentally similar to the problems raised by such recurring phenomena as
the determination of prices. Although in the study of any particular
instance of the evolution of an “institution” like money or the language the
theoretical problem will frequently be so overlaid by the consideration of the
particular circumstances involved (the properly historical task), this does not
alter the fact that any explanation of a historical process involves assumptions
about the kind of circumstances that can produce certain kinds of effects -
assumptions which, where we have to deal with results which were not directly
willed by somebody, can only be stated in the form of a generic scheme, in other
words a theory.
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to imagine a world in which he knew
by direct observation the inside of the atoms and had neither the possibility of
making experiments with lumps of matter nor opportunity to observe more than the
interactions of a comparatively few atoms during a limited period. From his knowledge of the different kinds
of atoms he could build up models of all the various ways in which they could
combine into larger units and make these models more and more closely reproduce
all the features of the few instances in which he was able to observe more
complex phenomena. But the laws of
the macrocosm which he could derive from his knowledge of the microcosm would
always remain “deductive”; they would, because of his
limited knowledge of the data of the complex situation, scarcely ever enable him
to predict the precise outcome of a particular situation; and he could never
verify them by controlled experiment - although they might be disproved by the
observation of events which according to his theory are
impossible.
In a sense some problems of
theoretical astronomy are more similar to those of the social sciences than
those of any of the experimental sciences. Yet there remain important differences.
While the astronomer aims at
knowing all the elements of which his universe is composed, the student of
social phenomena cannot hope to know more than the types of elements from which
his universe is made up. He will
scarcely ever even know of all the elements of which it consists and he will
certainly never know all the relevant properties of each of them. The inevitable imperfection of the human
mind becomes here not only a basic datum about the object of explanation but,
since it applies no less to the observer, also a limitation on what he can hope
to accomplish in his attempt to explain the observed facts. The number of separate variables which in
any particular social phenomenon will determine the result of a given change
will as a rule be far too large for any human mind to master and manipulate them
effectively. 1 In
consequence our knowledge of the principle by which these phenomena are produced
will rarely if ever enable us to predict the precise result of any concrete
situation. While we can explain the
principle on which certain phenomena are produced and can from this knowledge
exclude the possibility of certain results, e.g. of certain events occurring
together, our knowledge will in a sense be only negative, i.e. it will merely
enable us to preclude certain results but not enable us to narrow the range of
possibilities sufficiently so that only one remains.
The distinction between an
explanation merely of the principle on which a phenomenon is produced and an
explanation which enables us to predict the precise result is of great
importance for the under-
1. Cf. M. R. Cohen, Reason and
Nature, p. 356 “If, then, social phenomena depend upon more factors than we
can readily manipulate, even the doctrine of universal determinism will not
guarantee an attainable expression of laws governing the specific phenomena of
social life. Social phenomena,
though determined, might not to a finite mind in limited time display any laws
at all.”
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standing of the theoretical methods
of the social sciences. It arises,
I believe, also elsewhere, e.g. in biology, and certainly in psychology. It is, however, somewhat unfamiliar and I
know no place where it is adequately explained. The best illustration in the field of the
social sciences is probably the general theory of prices as represented, e.g.,
by the Walrasian or Paretian systems of equations. These systems show merely the principle
of coherence between the prices of the various types of commodities of which the
system is composed, but without knowledge of the numerical values of all the
constants which occur in it and which we never do know, this does not enable us
to predict the precise results which any particular change will have.
[1] Quite
apart from this particular case, a set of equations which shows merely the form
of a system of relationships but does not give the values of the constants
contained in it, is perhaps the best general illustration of an explanation
merely of the principle on which any phenomenon is
produced.
This must suffice as a positive
description of the characteristic problems of the social sciences. It will become clearer as we contrast in
the following sections the specific procedure of the social sciences with the
most characteristic aspects of the attempts to treat their object after the
fashion of the natural sciences.
(To be
continued.)
1. Pareto himself has clearly seen
this. After stating the nature of
the factors determining the prices in his system of equations, he adds
(Manuel d’écoomie politique, 2nd ed., pp. 233-4): “It may be
mentioned here that this determination has by no means the purpose of arriving
at a numerical calculation of prices. Let us make the most favourable
assumptions for such a calculation; let us assume that we have triumphed over
all the difficulties: of finding the data of the problem and that we know the
ophélimités of all the different commodities for each individual, and all
the conditions of production of all the commodities, etc. This in already an absurd hypothesis to
make. Yet it is not sufficient to
make the solution of the problem possible. We have seen that in the case of 1oo
persons and 700 commodities there will be 70,699 conditions (actually a great
number of circumstances which we have so far neglected will still increase that
number) we shall, therefore, have to solve a system of 70,699 equations. This exceeds practically the power of
algebraic analysis, and this is even more true if one contemplates the fabulous
number of equations which one obtains for a population of forty millions and
several thousand commodities. In
this case the roles would be changed: it would not be mathematics which would
assist political economy, but political economy which would assist mathematics.
In other words, if one really could
know all these equations, the only means to solve them which is available to
human powers is to observe the practical solution given by the market.” Compare also A. Cournot, Researches
into the Mathematical Principles ef the Theory of Wealth (1938), trs. by N.
T. Bacon, New York, 1927, p. 127,
where he says that if in our equations we took the entire economic
system into consideration “this would surpass the powers of mathematical
analysis and of our practical methods of calculation. even if the values of all
the constants could be assigned to the numerically.”
291