ŏ Ŕ ō Ŝ Š ő ŞșWhy Subjectivism?*
঺ŕœŔŠş ōŚŐ őŤōœœőŞōŠŕśŚş
Economists of the Austrian School emphasize subjectivism. Ļis article
reviews why subjectivist insights are important, but it also warns against
exaggerations. Ļe latter part, while briefer, particularly warrants atten-
tion in Austrian circles.
Various writers define subjectivism in ways that, though not necessar-
ily inconsistent, do seem quite different. Empirical concepts (as opposed
to mathematical concepts, like “triangle”) necessarily have an “open tex-
ture” (WaismannȀȈȅȄ). An open-textured concept just cannot be defined
so precisely and comprehensively as to rule out the possibility of an unfore-
seen situation or case or example that would require modifying the earlier
definition. I feel no duty, then, to start with a definition. Instead, the
meaning of subjectivism will emerge from the topics covered and from
contrasts with nonsubjectivist attitudes.
řōŠőŞŕōŘŕşř ŢőŞşšş şšŎŖőŏŠŕŢŕşř ঠŜśŘŕŏť
Subjectivist insights contribute to positive economics—to understanding
how the world works (or would work with circumstances changed in spec-
ified ways). Ļey do not bear primarily on policy. As an expository device,
however, it is convenient to begin by considering subjectivism applied—or
ignored—in policymaking.
Perhaps the broadest subjectivist insight is that economics deals with
human choices and actions, not with mechanistically dependable relations.
Ļe economy is no machine whose “structure” can be ascertained and
manipulated with warranted confidence. Economics knows nothing com-
parable to Avogadro’s number, atomic weights and numbers, the speed
of light in a vacuum, and similar constants of nature (MisesȀȈȃȈ/ȀȈȅȂ,
*FromReview of Austrian EconomicsȀ, no.Ȁ(ȀȈȇȆ):Ȅ–ȂȀ.ȀȈ