Human Action: A Treatise on Economics

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by Ludwig VonMises


  The North American Indians lacked the ingenuity to invent the wheel. The inhabitants of the Alps were not keen enough to construct skis which would have rendered their hard life much more agreeable. Such shortcomings were not due to a mentality different from those of the races which had long since used wheels and skis; they were failures, even when judged from the point of view of the Indians and the Alpine mountaineers.

  However, these considerations refer only to the motives determining concrete actions, not to the only relevant problem of whether or not there exists between various races a difference in the logical structure of mind. It is precisely this that the racists assert.13

  We may refer to what has been said in the preceding chapters about the fundamental issues of the logical structure of mind and the categorial principles of thought and action. Some additional observations will suffice to give the finishing stroke to racial polylogism and to any other brand of polylogism.

  The categories of human thought and action are neither arbitrary products of the human mind nor conventions. They are not outside of the universe and of the course of cosmic events. They are biological facts and have a definite function in life and reality. They are instruments in man’s struggle for existence and in his endeavors to adjust himself as much as possible to the real state of the universe and to remove uneasiness as much as it is in his power to do so. They are therefore appropriate to the structure of the external world and reflect properties of the world and of reality. They work, and are in this sense true and valid.

  It is consequently incorrect to assert that aprioristic insight and pure reasoning do not convey any information about reality and the structure of the universe. The fundamental logical relations and the categories of thought and action are the ultimate source of all human knowledge. They are adequate to the structure of reality, they reveal this structure to the human mind and, in this sense, they are for man basic ontological facts.14 We do not know what a superhuman intellect may think and comprehend. For man every cognition is conditioned by the logical structure of his mind and implied in this structure. It is precisely the satisfactory results of the empirical sciences and their practical application that evidence this truth. Within the orbit in which human action is able to attain ends aimed at there is no room left for agnosticism.

  If there had been races which had developed a different logical structure of mind, they would have failed in the use of reason as an aid in the struggle for existence. The only means for survival that could have protected them against extermination would have been their instinctive reactions. Natural selection would have eliminated those specimens of such races that tried to employ their reasoning for the direction of behavior. Alone those individuals would have survived that relied upon instincts only. This means that only those would have had a chance to survive that did not rise above the mental level of animals.

  The scholars of the West have amassed an enormous amount of material concerning the high civilizations of China and India and the primitive civilizations of the Asiatic, American, Australian, and African aborigines. It is safe to say that all that is worth knowing about these races is known. But never has any supporter of polylogism tried to use these data for a description of the allegedly different logic of these peoples and civilizations.

  5. Polylogism and Understanding

  Some supporters of the tenets of Marxism and racism interpret the epistemological teachings of their parties in a peculiar way. They are ready to admit that the logical structure of mind is uniform for all races, nations, and classes. Marxism or racism, they assert, never intended to deny this undeniable fact. What they really wanted to say was that historical understanding, aesthetic empathy, and value judgments are conditioned by a man’s background. It is obvious that this interpretation cannot be supported on the basis of the writings of the champions of polylogism. However, it must be analyzed as a doctrine of its own.

  There is no need to emphasize again that a man’s value judgments and his choice of ends reflect his inborn bodily features and all the vicissitudes of his life.15 But it is a far cry from acknowledgment of this fact to the belief that racial inheritance or class affiliation ultimately determines judgments of value and the choice of ends. The fundamental discrepancies in world view and patterns of behavior do not correspond to differences in race, nationality, or class affiliation.

  There is hardly any greater divergence in value judgments than that between the ascetics and those eager to enjoy life lightheartedly. An unbridgeable gulf separates devout monks and nuns from the rest of mankind. But there have been people dedicated to the monkish ideals among all races, nations, classes, and castes. Some of them were sons and daughters of kings and wealthy noblemen, others were beggars. St. Francis, Santa Clara, and their ardent followers were natives of Italy, whose other inhabitants cannot be described as weary of temporal things. Puritanism was Anglo-Saxon, but so was the lasciviousness of the British under the Tudors, the Stuarts, and the Hanoverians. The nineteenth century’s outstanding champion of asceticism was Count Leo Tolstoy, a wealthy member of the profligate Russian aristocracy. Tolstoy saw the pith of the philosophy he attacked embodied in Beethoven’s Kreutzer Sonata, a masterpiece of the son of extremely poor parents.

  It is the same with aesthetic values. All races and nations have had both classic and romantic art. With all their ardent propaganda the Marxians have not succeeded in bringing about a specifically proletarian art or literature. The “proletarian” writers, painters, and musicians have not created new styles and have not established new aesthetic values. What characterizes them is solely their tendency to call everything they detest “bourgeois” and everything they like “proletarian.”

  Historical understanding both of the historian and of the acting man always reflects the personality of its author.16 But if the historian and the politician are imbued with the desire for truth, they will never let themselves be deluded by party bias, provided they are efficient and not inept. It is immaterial whether a historian or a politician considers the interference of a certain factor beneficial or detrimental. He cannot derive any advantage from underrating or overrating the relevance of one of the operating factors. Only clumsy would-be historians believe that they can serve their cause by distortion. The biographies of Napoleon I and III, of Bismarck, Marx, Gladstone, and Disraeli, the most disputed personalities of the past century, widely disagree with regard to value judgments; but they hardly disagree in their understanding of the role played by these men.

  This is no less true of the statesman’s understanding. What use could a champion of Protestantism derive from misunderstanding the tremendous power and prestige of Catholicism, or a liberal from misunderstanding the relevance of socialist ideas? In order to succeed a politician must see things as they are; whoever indulges in wishful thinking will certainly fail. Judgments of relevance differ from judgments of value in that they aim at the appraisal of a state of affairs not dependent on the author’s arbitrariness. They are colored by their author’s personality and can therefore never be unanimously agreed upon by all people. But here again we must raise the question: What advantage could a race or class derive from an “ideological” distortion of understanding?

  As has already been pointed out, the serious discrepancies to be found in historical studies are an outcome of differences in the field of the nonhistorical sciences and not in various modes of understanding.

  Today many historians and writers are imbued with the Marxian dogma that the realization of the socialist plans is both unavoidable and the supreme good, and that the labor movement is entrusted with the historical mission of accomplishing this task by a violent overthrow of the capitalist system. Starting from this tenet they take it as a matter of course that the parties of the “Left,” the elect, in the pursuit of their policies, should resort to acts of violence and to murder. A revolution cannot be consummated by peaceful methods. It is not worth while to dwell upon such trifles as the butchering of the four daughters o
f the last Tsar, of Leon Trotsky, of tens of thousands of Russian bourgeois and so on. “You can’t make an omelet without breaking eggs”; why explicitly mention the eggs broken? But, of course, it is different if one of those assailed ventures to defend himself or even to strike back. Few only mention the acts of sabotage, destruction, and violence committed by strikers. But all authors enlarge upon the attempts of railroad companies to protect their property and the lives of their officers and their customers against such onslaughts.

  Such discrepancies are due neither to judgments of value nor to differences in understanding. They are the outcome of antagonistic theories of economic and historical evolution. If the coming of socialism is unavoidable and can be achieved only by revolutionary methods, murders committed by the “progressives” are minor incidents of no significance. But the self-defense and counterattacks of the “reactionaries” which can possibly delay the final victory of socialism are of the greatest importance. They are remarkable events, while the revolutionary acts are simply routine.

  6. The Case for Reason

  Judicious rationalists do not pretend that human reason can ever make man omniscient. They are fully aware of the fact that, however knowledge may increase, there will always remain things ultimately given and not liable to any further elucidation. But, they say, as far as man is able to attain cognition, he must rely upon reason. The ultimate given is the irrational. The knowable is, as far it is known already, necessarily rational. There is neither an irrational mode of cognition nor a science of irrationality.

  With regard to unsolved problems, various hypotheses are permissible provided they do not contradict logic and the uncontested data of experience. But these are hypotheses only.

  We do not know what causes the inborn differences in human abilities. Science is at a loss to explain why Newton and Mozart were full of creative genius and why most people are not. But it is by all means an unsatisfactory answer to say that a genius owes his greatness to his ancestry or to his race. The question is precisely why such a man differs from his brothers and from the other members of his race.

  It is a little bit less faulty to attribute the great achievements of the white race to racial superiority. Yet this is no more than a vague hypothesis which is at variance with the fact that the foundations of modern civilization were laid by peoples of other races. We cannot know whether or not at a later date other races will supplant Western civilization.

  However, such a hypothesis must be appraised on its own merits. It must not be condemned beforehand because the racists base on it their postulate that there is an irreconcilable conflict between various racial groups and that the superior races must enslave the inferior ones. Ricardo’s law of association has long since discarded this mistaken interpretation of the inequality of men.17 It is nonsensical to fight the racial hypothesis by negating obvious facts. It is vain to denv that up to now certain races have contributed nothing or very little to the development of civilization and can, in this sense, be called inferior.

  If somebody were eager to distill at any cost a grain of truth out of the Marxian teachings, he could say that emotions influence a man’s reasoning very much. Nobody ever ventured to deny this obvious fact, and Marxism cannot be credited with its discovery. But it is without any significance for epistemology. There are many sources both of success and of error. It is the task of psychology to enumerate and to classify them.

  Envy is a widespread frailty. It is certain that many intellectuals envy the higher income of prosperous businessmen and that these feelings drive them toward socialism. They believe that the authorities of a socialist commonwealth would pay them higher salaries than those that they earn under capitalism. But to prove the existence of this envy does not relieve science of the duty of making the most careful examination of the socialist doctrines. Scientists are bound to deal with every doctrine as if its supporters were inspired by nothing else than the thirst for knowledge. The various brands of polylogism substitute for a purely theoretical examination of opposite doctrines the unmasking of the background and the motives of their authors. Such a procedure is incompatible with the first principles of ratiocination.

  It is a poor makeshift to dispose of a theory by referring to its historical background, to the “spirit” of its time, to the material conditions of the country of its origin, and to any personal qualities of its authors. A theory is subject to the tribunal of reason only. The yardstick to be applied is always the yardstick of reason. A theory is either correct or incorrect. It may happen that the present state of our knowledge does not allow a decision with regard to its correctness or incorrectness. But a theory can never be valid for a bourgeois or an American if it is invalid for a proletarian or a Chinese.

  If the Marxians and the racists were right, it would be impossible to explain why those in power are anxious to suppress dissenting theories and to persecute their supporters. The very fact that there are intolerant governments and political parties intent upon outlawing and exterminating dissenters, is a proof of the excellence of reason. It is not a proof of a doctrine’s correctness that its adversaries use the police, the hangman, and violent mobs to fight it. But it is a proof of the fact that those taking recourse to violent oppression are in their subconsciousness convinced of the untenability of their own doctrines.

  It is impossible to demonstrate the validity o£ the a priori foundations of logic and praxcology without referring to these foundations themselves. Reason is an ultimate given and cannot be analyzed or questioned by itself. The very existence of human reason is a nonrational fact. The only statement that can be predicated with regard to reason is that it is the mark that distinguishes man from animals and has brought about everything that is specifically human.

  To those pretending that man would be happier if he were to renounce the use of reason and try to let himself be guided by intuition and instincts only, no other answer can be given than an analysis of the structure of human society. In describing the genesis and working of social cooperation, economics provides all the information required for an ultimate decision between reason and unreason. If man reconsiders freeing himself from the supremacy of reason, he must know what he will have to forsake.

  _______________________________

  1. Cf., for instance, Louis Rougier, Les Paralogismes du rationalisme (Paris, 1920).

  2. Cf. Eugen Dietzgen, Briefe über Logik, speziell demokratisch-proletarische Logik (2d ed. Stuttgart, 1903), p. 112.

  3. Cf. Franz Oppenheimer, System der Soziologie (Jena, 1926), II, 559.

  4. It must be emphasized that the case for democracy is not based on the assumption that majorities are always right, still less that they are infallible. Cf. below, pp. 149–151.

  5. Cf. his speech on the Party Convention in Nuremberg, September 3, 1933 (Frankfurter Zeitung, September 4, 1933, p. 2).

  6. Cf. Lancelot Hogben, Science for the Citizen (New York, 1938), pp. 726728.

  7. Ibid., p. 726.

  8. Although the term rationalization is new, the thing itself was known long ago. Cf., for instance, the words of Benjamin Franklin: “So convenient a thing it is to be a reasonable creature, since it enables one to find or make a reason for every thing one has a mind to do.” (Autobiography, ed. New York, 1944, p. 41.)

  9. “Le moulin à bras vous donnera la société avec le souzerain; le moulin à vapeur, la société avec le capitaliste industriel.” (Marx, Misère de la philosophie (Paris and Brussels, 1847), p. 100.

  10. Marx, Das Kapital (7th ed. Hamburg, 1914), pp. 728–729.

  11. The Communist Manifesto, 1.

  12. The meaning that contemporary Marxism attaches to this phrase, viz., that the religious drug has been purposely administered to the people, may have been the meaning of Marx too. But it was not implied in the passage in which —in 1843—Marx coined this phrase. Cf. R. P. Casey, Religion in Russia (New York, 1946), pp. 67–69.

  13. Cf. L. G. Tirala, Rasse, Geist und Seele (Munich, 1935), pp. 190 ff.


  14. Cf. Morris R. Cohen, Reason and Nature (New York, 193t), pp. 202–205; A Preface to Logic (New York, 1944), pp. 42–44, 54–56, 92, 180–187.

  15. Cf. above, pp. 46–47.

  16. Cf. above, pp. 57–58.

  17. See below, pp. 158–163.

  IV. A FIRST ANALYSIS OF THE CATEGORY OF ACTION

  1. Ends and Means

  THE result sought by an action is called its end, goal, or aim. One uses these terms in ordinary speech also to signify intermediate ends, goals, or aims; these are points which acting man wants to attain only because he believes that he will reach his ultimate end, goal, or aim in passing beyond them. Strictly speaking the end, goal, or aim of any action is always the relief from a felt uneasiness.

  A means is what serves to the attainment of any end, goal, or aim. Means are not in the given universe; in this universe there exist only things. A thing becomes a means when human reason plans to employ it for the attainment of some end and human action really employs it for this purpose. Thinking man sees the serviceableness of things, i.e., their ability to minister to his ends, and acting man makes them means. It is of primary importance to realize that parts of the external world become means only through the operation of the human mind and its offshoot, human action. External objects are as such only phenomena of the physical universe and the subject matter of the natural sciences. It is human meaning and action which transform them into means. Praxeology does not deal with the external world, but with man’s conduct with regard to it. Praxeological reality is not the physical universe, but man’s conscious reaction to the given state of this universe. Economics is not about things and tangible material objects; it is about men, their meanings and actions. Goods, commodities, and wealth and all the other notions of conduct are not elements of nature; they are elements of human meaning and conduct. He who wants to deal with them must not look at the external world; he must search for them in the meaning of acting men.

 

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