2 - Capitalism as economic equality and freedom
Summary
Four main themes inform this chapter. First is the particular context of the turn of the twentieth century in Vienna that included what was termed the “methodological war” or “struggle” (methodenstreit), which would reaffirm some of the issues already discussed in Chapter 1 concerning the underlying methodological issues in the study of all the sciences. The second theme is the confusion that marks any attempt to demarcate between politics and economics, especially as it relates to the concepts of equality and freedom (with the classical tension that alleges that the more the one, the less the other). The third is the specific concerns voiced by Popper in relation to economic theory, both in terms of its methodology as a unique area of research among the social sciences; and fourth, some of the contemporary uses and misuses of Popper's own views on economic theory and its scientific status.
Historical context
Anyone consulting contemporary textbooks in economics will notice the extent to which many economic assumptions rely heavily on psychological principles and theories, regardless of their validity in their own field of research. To some extent, the so-called Austrian School of Economics of the beginning of the twentieth century exemplifies this reliance as against the German Historical School. Although some historians, like Hacohen (2000: 462ff.) suggest that the contention was between Gustav Schmoller of the German Historical School and Carl Menger of the Austrian School of Economics, I suggest looking historically at an earlier period.
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- Information
- Popper's LegacyRethinking Politics, Economics and Science, pp. 51 - 86Publisher: Acumen PublishingPrint publication year: 2006