HAYEK AND THE EVOLUTIONARY TRADITION AGAINST THE HOMO OECONOMICUS Lorenzo Infantino ABSTRACT Purpose — To show the existance of mo dirt lines of hohe ix ‘commis th Homo esconomics adn and volt tation, Metiodologyjappeoach ~ Following Hayek, the autor adopt the Indidulsie methodology. Ths allows wo separate the Homo oon ‘ih aprsach which ire per rma entation concerned with {he sna eal of non action, fom the evoton) approach hihi concmed wk th intended cnseguancer 0 aman cnc! ‘mistake of paycoloien. a theory of human nature and 2 hanan ‘Pevcology as they ext pro to scat. And yet he nat of dra! an selma be placed tha Social omer and be expla A the ‘oltonry adn and Hayek segs. the formation of the Eo and ‘he desclogment of he haan ind moves ova range of erative elon Reseach limitaondimplictions — Homo ccconomious iret 10 imavirce the reall of hnan conduc. However, the concept of Imavimtaton nels te Jt thatthe exchange ocews soon a3 snr aioyacie tsb eos goMo LORENZO INFANTINO esis ame ssn: tis veryeferet fom maximization, which des or take i eccout the Compensation” thatthe be am ‘cheney mean: of he other dimen of aman axon Orignaiyale of paper To speck of ‘laa economist placing ‘woionary scholart and sirlly wearin ones ander the same ‘teromination ist as misleading at wing the expresion revels conomis refering tothe eolutonary Menger ond ultra ron (ont Waa. ‘THE SENSORY ORDER IS THE PRODUCT OF AN UNCONSCIOUS PROCESS The inlets activity of Fidrich A. Haye was extraordinarily long Tee, almost 60 years claps’ between the pubheston sf hs ft book, cldihcrie wad Kanpintrhcre (1929), a is ast Work, The Fete Cont (888). During ths tne, sing fv nial sui economics, Hayek covered all af the svat since. never sabordnaing the methodologial aspects and sigicant ies of thtorstcal pyeboey "Mating fo the formation the Ego ad the Jeveepm=n of he humen minh. The question therefore ates I thte a logs head that runs rough Hayek's ovr reach? The fact that, whatever ates he eplored Hayek constant etected on the conditions that make indole Bosule (or tapowsitie) And the sume sane of theoretical poychology !dresed in The Seuory Order are am tagral pat ramework that sinaye aimed at dana the conctions that low for freedom of chlce ‘Asis common knowlege, The Somtory Onder repress the flint of ‘projet that Hayek ad began o work on more than 25 years ago (eek 1994, pp. 125-6) Mis research on the methodology of socal sens he Speed him wo complete that prj An, through th, Be gave to his fenive thors design » psychology ferent fom the secant ‘ne, on the basis of which economies bad motly operate and len Tn order © grasp the problem dec, it x wif to begin with some statements thal sumone Hape’s ho He wie, The pe of epee) dn ag ith mono ein, bat ‘ty pes oes oyoh on te Brlonry Trabion pia te oma cesonasics 6h int ato ayant valle eat loch peas ieee. ‘aff marty sneyepernc bt ete spl he wes ea ‘Sion ahh hs er Wp resem taape that ‘Spe nena ue sa ft el bed he at oe crmcrey err it nach rep i ey ot nee 'n epistemological terms, itis tantamount to saying tha the el of scence as merely a complete desvition of phenomens, which the Prsitist consion devel fom the phenomenaic approach [prove to be impossible (Is, p17). In eter words, “very seman, even the ‘pare mat therfore be repel sea interpretation of am event nthe light of the pas experience of the individual oF the speci’ (id. 166) Hence te consequen that "lo Locke's fama fnamentl maxi of epics tat ne nme gud not ate ur om] Sort i mean to rfer fo consiove sate exec’ (td p.167 TMs lade tothe peeral concloson tat i is feces to sub to sien serutiny al the thereof knowlege Gling how in the Kaan {eatin} that est om the notin oa preormedE pri fo experience ‘or fee from (tbe contamination oD experience (Popper, 1977, p. tI). Teen, such theorie all incr 8 methodological mistake wich gos bythe ‘ame of prcholorim,unerstond ete a a ther) that operates according {o "the ies of human nature a human peychology a they exsted ‘tor to society (Popper, 946, p93). And et, at Popper undenorod Sea rt ele oe Ss Selec salle nas ave et poet atom po ‘soul nt, a nae el) [As we shal se, Hayes opposition to axsosiationtpeychology and to behanoursn isan extension of is enti of the Wes that social Sneitaone can be comeioly crete tnd shaped at wil? Drawing al te posible comsecueexs rom his evolutionary approach, Hayek ans that {he Ego foe trough the rlaonship with he Other and by means of a resensory experience, hich the inital wil eer be avare of What i Perfetly im Keping with Frou, whose folowing words Hayek Bisel1, LORENZO INFANTINO quotes: ‘mental proces in and of themes ase unconscious and the ‘Sonscious ate merely solted acta pases inte tai ofthe mind (aye, 1952, p25, note 1. AGAINST ASSOCIATIONIST PSYCHOLOGY ‘The mos widespread notion of polities! economy ie a product of sstocationist poycholog. John Stuart Mil catbuted most to shaping Sch a notion Even afte the Mant success of the eohtoaaty sor, he ‘remained ft othe ok poycologcal theory, or edi ot enous poll and curl premises” Iisunportant however fo undestand hat ‘tons shakes the ery foundations of associations. tino aden {hat procelyrepading Mil, Bertrand Russel wrote 1 ate ping a SA wile sn’ by Dai ae nyo ‘ol hte no cara my ane eet Spe ec ‘pen th emus ty beret es cpt ne de Schaap at of tts ently Da tom ne aes ta cea pee ‘sein te cos nn Bers onthe On Se ‘Ron tobe ani ar etre et io tO, i ‘aie tet ecb as il ive that human bing in ssicty have no popes but those which are derived from, and may resoive sto, the ws of the nature of invidul an’ (Mil, 1892, p. $31). Therefore, nothing i generated by Duman interaction and represents soil pod. Mil ansposd th ea to political sconomy, saying simply that be only wanted o ads one aspect of hua conduc eonomics“dcs wot eat the whole of a's lure as modi by the Socal stats, nor ofthe whol conduct of man in Soy. Is eoocered with him sally as teng who ders to posts wealth (J. 1Cpedcts only soe ofthe phenomena ofthe socal ates “hey take place i consequence ofthe pars of welt (Mil, 207, p IIT, Mil, 1892, p_ S46) Consauenty, pole economy isthe sence thet ‘moves fra "the sipposiion that an isa being who i etemiae, by ees of his ature, to prefers geste portion of wealth to smal a Mass (Mi 2007, p11, Mi 1592, p40) Hay and the Erlinary Trad oot Hem censor 18 All hits the esl ofthe asoitionst premises which Mis nays reeds rom. In other words, since associations pachology operates on fe bass of 2 prefonmed Eg tee is nothing that enact traced "tbe nature of adalat this docs not Pip us to cary te ers ofthe sus fact the autre of iid an ill mst be placed within soil context und be expand Tis therefore meses tofu 00 tome inconsistencies pneated by Nils approach |. Boonies an desi of wel According to Mihi the indivi hee Sa dese of wealth. Ad ye, placing sch a desire the origi the ate ange of economic phenomena woul bean ing the popes (and consequently frag) foundations, Tie Hke sayin tha if the he Dutt of wel ful the economic dneson of action fs One can {erfore understand why in his Prinipes of Political Esoomy Nall ‘ejeted Richard Whatsy’sSugetion to attbue fo economi they ‘he name tat in the Sense of science of exchange and went 50 {ar aso coneive of dsonbuonacleved witha exchange (Mil 963, sol 3, book 3 chapter B. Closed stem. By pacing Mis ‘deste of wen ‘sonomi phenomena, one apport the Kea that the eronomi pals theultimate end of some humae actions, What leads tothe Gtntion| tetwcen economic actions apd nowecanome stone and tothe ith ofthe ome economia is the sojet a a theory tha aks the orm of loed ysem: becase the actor is sommes from all socal Sinensions the base of (Gscouning al ether ape rearing erste Fetish andthe preferences and expecta that such econ ships generate), the Homo oeconomius testo maximise the fst af his conduct. Ad yet ifthe reat objetie of each actor consist in ‘masumization, the pase of exchanbes cond i eduoel ssi 235 postivesum game sts in (namin, 1988, pp. 3430) thi vey dierent from maximization, Mich docs not fae info account the ‘compensations that the sojet eam achieve by means of the other dimensions of human aon 1. Geometry nd socal siencs. I is Sytem of Laps Mil polemiind zat the reprsetates of wt be alld the Seto! ofgeometeal Polilns’ Gobhes and Bentham above all) (Mil, IND P40),Inasmuch as it was unable ose the complexity of sil phenomena oF {o rein ofthat thee isnot Juste socal phenomenon on which “numerabie forest do not este lnfuene, which dows nt depend upon a conjuction of causes bid, p 7). Mil alo stated hat some schol, fom an insueient conseaton ofthe spe natre of the Sbjct mater and often boca (Ui own dation having stopped Short in too arya sage) geomety state in their minds ata tye of ll dedactve sciences i to geometry, rather than fo arn) sind ‘tural philosophy, that they unconouly assimilate the deductive ‘ince of society (i, p36). Parca with reference to Bentham, Mil alo cited tha “general ‘hor’ tased ‘upon one compechensive premise, namely ha ss stons ae alnaya deerminnd by thei inter” because if such an expression [sto sugest that "me's action are always dtermioed by tet wisest ‘woukt not bear out any of the conaguriee which Bentham end thet llosopbers ‘ew fom it (Ml 1692p 538). Despite his clear distancing from the “School of geomet polan’ {inthe Definition of Petal Economy Mill (2007, 116) dno estate to ite that econo theory “is bull upon hypotisessrely anlopoie {0 thos which, under the name of definitions, ae the foundation ofthe ‘the abstract scenes. Geometry presipposs an arbary definition ‘ofa ine, that whch has length but oot breadth Js inthe ste tanner oes Pata! Economy presuppose an atbicay deition of mat, at 4 ting who invarably does that by which he nny obtain the peat mount of ascasaries. . The consasons of Puliial Economy ike those ‘of geometry are only tue, the common phrase tthe aac. ‘As one cae, te probems that Mis approach ef fr te sclars of social scenes are muperous Obvious, one not rghene by the fat {athe resorted to an abit dfn oma Every dition bs ts ‘ws, alough Mil believed that his hypothas was the nearest tothe ‘out (Mi, 2007p. 112, The pin that his mode fan ators unble to capture Something that is ptclely signicant with rend tthe uons of the el wor, ‘THE SCOTTISH TRADITION {nan attempt to sustain his noon of pote! economy, Mil id to fd suppor inthe encher’ ofthe dicpine (Mil, 2007, p11), The nares ‘tention (and that are of particular inteet)are Adam Sit nd Duel Stewart But the approach ofthese autor in blatant contrast nth Mil [tus del epecy on Smith's postions [A The forming ofthe Ego In The Theory of Moral Semin, Sith wrote Eee ete rien pvt ech “This means that i Smith (1976) the Epp is formed in the mit of oer people and through pee-sensoy experience 1B, Prefrnces and expeteoe. Ht follow tat ou pelerences and our expectations are om a range of incrbjetve ato Mra fvnaiton of isolition, the human mind ar no way of developing it takes no sense Lo speak of iniidalpeterenes fone dead the indvidas soci relations, This was amply expsial by Smith who also showed, by means ah theory of sympathy’ tat sc fe takes ‘ice within 4 weave of expectant (ofan, 198, pp. 940), . Beary and apes of knoldge. The vl does tat dives by ‘ede of wea What moves hint acton sary Stith, 197 Pp. 395-337; Hume, 1930, vol 2, pp. 199-208) Socal ston, that 5 copra wth others pneraed by manent ection, which ‘sme of wary suficeney. And the death we sf sho spl to Knowag, which highly dered in society, That why Seth wrote ‘ i ety pu wy very action therefore has an economic dimension, broly speaking involving the procurement of tears whereby the india i to tchiee his inate goals And thee ne not etaenc- Only the means6 LORENZO INFANTINO 1. Against the maxima of muon. I follows that ation cannot be Sima at maiz means, or tas may jeopardae the tamment of ‘nes ultimate goals that thee mode vesone tre ull Sith ad vel om this se, And he ha sted Pecunary mages and ott inden are eer-were in Europe exten difleent szording fo the diferent employment of labour and stock Bat thi ference ties pry fom etalnexcumstanes in the employments there, ‘thc cite aly or the leat inthe agian fey nae yp fo “al pecuniary pun n some, end couse alan «pret omen eter {bid p. 16) And one ofthe exeamstances ta, csr f Sth, ‘am ciferenate wages is honour "Honour makes pent fat ofthe reward ofall hopoutable profesion. In point of pecuniay pat ll things considered, they are genely underrecompense, aT sl ‘rdzavour to show blow: Disgrace had the conty ect Te ade of| Suthers a Brtl and odioas busines; bat fm most lace ore Prottabe tha te greater pata common tage. The most detestable Bt all employments hat of public executioner, in proportion 1 the fuinuly of work done, titer paid than say common whatever: (Td 117) Therefore, the maximisation of pocnary gains ca coat with the pursuit of ultimate ends. Nils postions cannot be asiniated wth Simith's Nor they can be assim wth those of Dapald Stewart, whose Elmets f the Philsophy {9f Hanan Mind Melero (Mil 207, p 10), re Swart had ‘item the might be ponte, by devising set of arrrydeitons {o form a sence which although conversant about moral, poi, ‘hyscal ideas shoul yet be a5 certain av geometry (Stewart, 1877p 46. But this was sid with reference exclusively tothe consseny that had to ‘exist, abo im economic theory, beween premises and onshons Inde, ied at escape Stewart ttn social scence here is more of 'conmeion beeen certain sappstons and cei consequence Ii, that our reasoning] inmathematis are ected to an objet esetally diferent Hom what ve have in vew in any other eployment ‘of ur intelectual facies 1b) Adam Sth was amare ofthis (Smith, 1976, gp 33-4. [And so was Burke Togsther with the ler, Stewart repeat tha Mefniton may be very exact, and yt go hata very litle wy towards informing us of the mai ofthe thing dei’ (Stewar, 1877. ps). ‘And he added, stl following Burke, that a debniton “vai rather alow ‘han fo presle our inquiies, af which Ht ouph tbe considered a the rest (bs) ‘The point i that M's atempt to Bind with Stewart and Smith ae no json tease we ae fied with two completly ierest approaches, Mats moves within 2 hypersationistic traditon, while the Sooty ioral gave eto evolonary thor This means tat when we speak of "lassi economies” (and. we shall as, als when we speak of ‘neoclassical economics), we make 2 serious methodologies! mistake In fac, we call bythe sume name to diferent ways of deslng with econo fed sacl phenomena, The tran tadkion sc ealng ays ‘teaton to Single a And, at Stewart wrote, th frequen appt uy Asthe standard of ection tds fo sdduce an estat) with respec 10 ‘he conduct of ther men (Stewart, IRS, p84, since a actin to ich ‘one atbuts ee immedate wl costamy replaced by others To Stich greater advantage i ansigned. And ths overums the sysem of fpecttions, undermiaes the very proces of soci interaction, which ‘becomes unpredictable" The wy of actions allows for exceptions to the ‘most important rule tacos fo0 Find, when the end i sxehow Steve the eof dottel mean and makes oom to eeat ate for discretion ad poly” Tid. 188) Poca! power thera to the ‘rank of independent variable a social orders conceived a an imtentona {sme of that power Cnfantin, 1998) In the approach adopted by Sth and by the Scottish morals the ues ‘of morality and jrtce are asthe doineyordsine, nora nepal part ‘rginal human nate nor revealed by paterson. They aan outcome of the practical experience of mankind, andthe soe consraton inthe slow tent of tne the aty each le can demonstrate towarde promoting aman wef” (Bay, 1958p. 3), The evoltonay tradition pales he UUltyof these ras andres om the vot! pocsr. The oder achieved i ot the result ofa speci wll ate, ce the outome of lage cooper tion among social actors, which ot planed and cannot be planed by ‘ny indvdual sta the individual cannot plan the deepest of IS here peneral theory of the unintentional consequences of intentions thuman ation. And Suh’ owa ave hands merely am appheation of Sch theory. Human actions divdd int on parts: what we do to alll four projets and what we do to oan the sooperation of he. Each Indiidal i driven by the ned o pursue his goals. And Ye, since every ‘cor ness the cooperation of ote, be mast provide them with the Serves they request i exchange for Each india sea intersted ‘nhs om end im order t0 achieve them, he mot howsver cooperate Wik the counterparts. The welng of oer i tho Fosters, bet‘iotestonay. Public prospety is therefore the unpasne cof the actions each individual performs to each gle by means Of fee ‘cooperation TE what soci is not the intenonal product of a preformed ego ‘but rather the ontome of a process of interaction, the fas of So ‘ceases mast necesariy be the unintentional consequences of neni human scone MENGER AND HAYEK: THE REBIRTH OF METHODOLOGICAL INDIVIDUALISM The work of Carl Menger, founder of the Austin schoo! of eoeomis, follows the evolutionary Walton, And yet although his tsar fines rina on the sty of the urntentonsl outcomes of human sons he made the misake of incading Smith among “mesic raionatoe Inde he wrote ha what eharactenies the theories of Adan Sah d bis follower the onesided rationalist bran, the not Ilya ‘mpetwos effort to do away with what exits and nt always suey Understood with he ast as impetus ung to create somthing ew nthe ‘sal of potticalimsttusone often enough witout sulfone Loowledge and experience” (Menger, 1986 . 138) Howevcr, sic en the se page “Menger goes ono pre mand Puke for secngin stations that bane one into being untentionaly asa vas eam of rut ati”) bis judgement tacts awareness ofthe infence wield by Hue nd Sith on Burke's work Hayek, 199, p 68; Infantino, 200, p. 173, ote), an infuace also proven by the achat Harke was often dred by Seto “te only person he Knew, whose thinking om econo ubte wes exes the same at hi own, even witostaty previous agieemett (Dunn, It Pe. 30026). More importantly for the queton at hand, what mates is that in Menger the actor, tr from beng Sighting calralatoe’ i's butting, {sing informed creature, plagied wih wnertany, forever hovering ‘even allring hopes and ating fers sad! songcitally capable af ‘akin fy calirated decison i purest of ssfctions’ lle, 1996. 521) Sine he ives ia condition of scarcy, Menge’ utterly an economing bring. bat the potion of maxinvation i foreign to hm ‘ura ite ia proces (Menger, 1994, p. 158) in which ta ach with 4 high degre a ignorance This prevents hi from erescg al he ‘Sontequenees of his own actions. Ad oot oly tha: o putas is oats yeh ante Every Tato ops om csonomicas 19 ‘go mast obtain the colahortion of Alter, in other wor, 0 some eteat ‘st place is at service of Air. The spetepton of actions isan Incthausble source of unttentonl coscquences whih olen bec ‘ls and nsatons. is therefore not suprising that Menge, after attempting “every ffct to win Walas overt hs side described the relaiomip wees thet respective theorteal stands as follows 'A conformity’ doc ot {xi between us. Tere it an analogy of concepts ina few pot bt not fa the doce questons (Kander 1965, p. O00 abo Antonll 1933, Pp. 26-287) "Therefore, to speak of “awl economist placing {volutionary scholars and ry waliarian oer unde the sane dom ions just as misleading as ung the exprenon “ascnssal sonora ‘fering to the eoltionary Menger and utltarianJevons and Walt? nthe ight o al this one can understand why Hayes bjtion to Mills Homa ceconomicas is strong than the few revinces te Wate would stem to suggst. In Economics an Koedg, when focusing Ni itis on the theory of general econo alibi, Hayek states The ‘ssumption ofa perfect market [| means nothing les hall embes of the commsnty, eve if they are not supposed to Be omnis, ae at ast supposed to Know automatically all tat m evant fr the dnssons, [sens tat seeton i ia out capboad, the "sonemi aa’, whom me fave ckrcsd with prayer and fasting, has rete through the back dot ‘the fom ofa qusiornsceatnddua (Haye, 198, pp. 4540), The, ina page of The Coston of Liberty Hayek ade: "The home cccnamicas was exp sntrodce, ith muck ee that beast the ‘atonal eater tothe evolutionary tradition, only bythe yourset Mil Gayek 1960, p61. ‘And yet sch jdgements are but the ip ofthe bere of # methodor legal diference that i present tgoushout Hayek's work. Its well to dil on some theoreti "matrals’ Hayek disposed of when he completed his wo onthe formation of he sensory onder, [A The prs of knowledge His the ide hain ts ost vigorous form vas expresed by Smith on the ste page wheve he speake of the invaible hand’. fp Heononacr and Knowledge, considered by Hayek hit ‘mos orignal contribution [.-] to the they of ssinoms Faye 1996, . 8), he writes ‘Cleary thete |] probe of the dvsion oF Innosoige hich te analog, Sadat ata important ie problem ofthe division of labour But wile the later hs een one themain subjects of vesipition eve sine the eganing of eur sense,i the former has been as completly nla, although it sees tome te the really central problem of esoomacs se socal soem’ (Hayek 196, p. SD). And we now tht staring om such a natement he Aspe ofkoowladge became a comerstone af Hayes work 1B, Sonal scence nt pare loi eh In this card. Hayek ates ‘eine rr sarin nae hp eh “The social proves is very diferent from situations where dhe pure logic of choice i appli In social sence ite mecsery 10 Intodce normative ckments, which re the iatuonal conditions| im which the actor operate And thee are the aspects that Hayek ‘creasingly deal wih “igen mavinicaion. Since 1 wat sear to Hayek that action is Economic excels mith reference to mena Haye, 1944 pp 91-92), he understood wll thatthe purpose of human acon if iferent ature, and cannot const inthe maximization of exis,” D. Unintentional cnseuencer an indviduaite mete. In it 0% highly methodolopal woth, The Cauter Reet of Scene, Hayek sates: "For he socal sence the ypes of eomscour ations ae dat and al they have to do with mga to thea dala is 10 arange i Such otdel fashion that they cam effecely be used for ther tsk ‘because the problems which they try to anwer aie oly isa the conscious action of many men prodicendesgned ret insofar a2 gules ae observed which ae nt the rect of anybody» desis (Gayek, 1979 pp. 669) nother words only iar a some sort ‘foe arses aa raat nial axon bat who beg designed by any individual that a problem i raed hich destnde there lanai’ Ib. Soci sionces must teefre study the arintentonal consgucges of Intentional umn ston. Th Fic, if socal phenomena showed noord cept insofar a they were consis designed. thre woul ined be ‘no room for theoretical sciences of sexe” (Tb). That why Hayek onside the Keynes's statement that he ong erm we wl al be des ‘ol only snow and dangerous intllual er at alo ‘a betrayal of the main duty ofthe economi’ (Hayek, 194, p. 40). In other words, Keynes refused to consider unintentional consguencs, An, according to Hayek, those woets by Keyacs have an depth. They over up de ater to ‘eeape problems. Keynes’ alle to comsider median and lone em futcomes accounts for his host towards savings and capital. In othr Words the future denied insta asthe functions of eins a capital ene, Resoring toa coup dette, be easly Yepresentad coe where inthe long tem, we ae all dead” And yeti we sep ot of ape pactence ‘hestantion rey ferent este oly some willbe dead and the others il ave to dal withthe wore outcomes of sinplstic pbs tat vate 1 peacipes of respon Ti addition to what was poited out inthe above paragraph, Hayek seeded one last atgament fo complete methodological his clique of the rationale hars His work onthe formation ofthe semory eter i rcs what was ising. His analysis highly sgicamt because sed pit on the theoretal elaments which Hayek bad already put up for sivcusion. No doubt, ithe redeclons onthe formation ofthe Ee ae placed tthe Rass of Hayek's work, theater seqier restr raspaency {larly shows the lopial thread that keeps together. ‘We now that Schumer dened “methodological individualism’ as ‘he method that departs iom the asons of men to spl, by means ‘of enintesonalconsoucne, socal prosenes (Schumpeter, 1908p 8, This is the approach that, in a hand-wten note ‘Carl Menge bad sire named the ‘composive method" (Hayek, 199, , 67 ote A. Bearing in mind eveeynng that Hayek says about the senor) ode, i Ss pecectly understandable that atthe ha ofmethodoogeal individu 5 the idea thatthe human mind cannot plas its growth As Hayek hinselh ‘eee nn as wg ema sn ewe of {Sia othe nm wl be acted an p39" “This shows once apin how great i the distance hetween prycholoie snd the individualist methedslon, "The conclusions achieved by Rebbns (1932), n his Essay onthe Nature and Signioance of Ezonomse Sense, are very fr rom Hae. As Rizr(0982p. 126 comedy stats, depit [| a its rodents the subjetvn ‘which Robbie troupht from Vienna was only te state eet ofthe theory And not only thatthe sobsequeat development of Absit economics ‘could hardly have foreseen by an Asta economs or any ‘other ecouomist .) during the 1920s, and was not at all an Obvout Inpication ofthe arcuate perspectne shared by Avstan economists of the period (Kier, 1995, vl 2. X) ‘THE PRIMACY OF THEORY IN THE ‘CONSTRUCTION OF SCIENCE ‘One of the “angle by Job Stuart Mi isthe fc that in ha work there ‘cous the permanent Bit to asocationstprycholory ad the Adoption, in soil siencs, of the hypahica-deustive method, In bis “Aucbogaphy, Mill wrote that his Sst of Logic provides what wes ‘uch waned textbook [J which derives ll now ge ron expert, ‘nd all mocal and itlltua! qualties fom the diction sve to the ‘ssacations sine “the aoton that truths extra to the mind may be known by inution of consciousness, independently of observation and experienc i [--] i thexe tines the rea tleal support of fae Scenes ant ba ition (Mil, 197), p13, ye in fhe Seton of ‘ogi, Mili nt bestate ost that he scene of sity na edie sence’ (Mill 1892, p53, Itis therefore neesary to add tat nthe Definition of Poca Econ, politcal econ is consered asa sence ‘hat ‘reasons, and] must essary reason, om stsmptons, no om fact (Mit 307, 10 ‘What isthe point? There contraction in Mis texts But there san ven deeper eanadition a the theoretical eel. indeed session i taken as an assumption, one aleady (or one most e) indica, omer ithe hypotedea-delutve mtd adept, iti meee) to ahandoo asociatonstpsyeboogy ‘What Hayek says abot the formation ofthe sensory order bape ws to understand that our observations contain element tal we are act aware of. Imentreme tems, we en aty tht when thar no et bocome a mind, he ‘an can make no observation: and when ie ha become a mind ite ‘observation are never devoid of assumptions. In sch away he Baconinn ‘oyth of pure observation’ fail and cannot underpin inductive, ‘Adam Sith, whe had worked on «highly commendable theory ofthe formation ofthe Eg, was epi owarde statistic, econom at pacar. Asis comma Lnowiadg, inthe Wealth of Nain he had sated ‘hat he had no great faith in poltalarthmetck (Smith, 1976, ol I, 534). His theory of knowledge eguivacly avers the pricy of {heory inthe construction of ence In the ay on the Try of Asironomy, sone emphasis pced on the role payed by iaginaton In this reparg, Sith zt: “The suppention of chain of intermediate ‘hough nvnle events, wich sacred ath other [] and which bak together those disjointed appearance, ithe only cans by which the |maginon can up this interes the only bridge which fone may a) £9, can sooth is passage Tom the ene objet to the ote (Sth 13764, 2), Quoting Tyeho-Brahe, Saath thon sat that Copeniat had “Tmoved the Earth om ss foundations (Ibid, p75) And he aed thatthe Copernican endeavour bot prover "how easly the hacned give wp the tvidene of their senses to reserve the coherence of the dens of er ‘mapinton the most voles paradox in ll phsophy was adopted by many teniour astronomers, notwithstanding is inconssensy oth er) system of phys then Known in the work (bi, 9. 77). As for Newtons work, Sith underted the oe pay by imagination ad hy the ypotese adopted, pp 100-105) ‘Coramentng on the eevations' expressed by Smith towards ‘poe sitimetik Dugas Stewart wrote ‘cane nec a an far Fen ating err ‘ea etn alco eon 5 be my who rs Sovart ure stated" thse observations e ast insted of appeling to politcal aritumetc asa check om the conlsion of poll economy. it ould often bemore reasonable to have eco to pol economy a ‘heck on the extavapancc of pola! arithmetic’ (Ih). Stewart edited a chap of is Eloments of Phlesophy of Haran Mind 10 imagination, which he considered bee. pincpal sure a human isproverent (Ib, p29) He ed ot heise taunt tithout theory [expense ina hind and uses pide (I. $21) He ‘fenton toy thatthe darn 2a again hypotese o tally ‘owed at peat by the profned folkwers of Rikon, bas esa much tncourage bythe strong and decided tem in ich, on alow tons,‘hey ate eprtted by Newton’ (Ii, p 98); ae yet the language of his [gest man, when he happens o toch upon lope question, mast ot always Fe too ltrally ater. It ast be qualied and ted, ato acon wih te vcmplicatons ch be hima! bas pen of is general rl Uhh) ene the quasion: "And dst-not even the great doctrine of aviation ke it fit rm a formate comectie (ad, 2457 ‘Stent therfore uphols the primey of the mebod of hypotheses or of theory in the comiraction 'fscigce And ths alowed han €0 derstand that Smiths eesearch is pecsoly heretic oF cnjetral taster” (Stewart, 1798, 9.293. ‘Avon cans the theoreti! postions of Sith and Stewart, fered 10 inthe above paragrari, apy corroborate the work songs by Hayek. ‘Beneath he surface of the at wideypred textbook concep, tere = ‘ee it that Less Mision and evoltionary tradition distant fom ach other, Even when they seem to converge, they are kept apart by a deep “Shun ho bm diy, om 9 doe eo languages say the sae thing hey are no the sume ig). With is work, Hayek achieved relevant thoes inthe say of tan and sity” Hy ising om the erence teten thos radions of esac, be was abl to reach one os most Flights, which makes it poable to emerge rom the hosed Sse | fowrated by witness Meakin abd to udestand what the {Est ond what aethe vols cfsocl ences! And hina we sated the ‘econing ofthis ape, el us to inti the condone which make feed of etic possible (or possible) NOTES ‘“EAmoutniom and beanioerim are outcomes of the pheyomenaltic ppm The are curated by the toe wich] all al he Ben ote sets agponc ote say ofan ky apc, 9, 17 Tt oe on per rey eae se vue item ‘ave ie sor ‘ear of ci ay ‘isd mend ne en en as vn ey mete ‘'dasaeation which we know ony from our personal expenense of and wich = ‘sa’ Say sees sti ht te a Stave at ‘San to exc the ds 3. pn otc en ned te St ade Saf ne ‘tenga po ene wit Mi toy seated sets sues “idsy fae Sr ek np oe Sah eee et sg yan sso pay a es a eee Sa wha ni ay ten ese al at geri ia Seas aa poaching erat SRR SG Moen Cnn Nee er, ga a os ery ot ogi ee ee eer ec ae Sepa tiirae a ars cer ene ees “Eamets een So Scope res ees Sr oe Riis TAGS (ph ca an men, nec a fil ER 8 ec a re Scie teas ean area a SSerne war eva ie dewiomment sal sar sad Semraoe ie pea Soci Sickest pte le ety eae my TSS eres Soe LEE LUE IES MoT a ane ins SSE Sioktimermasmse gear ancicete ees Dts cme ects i Ato en Shicmshansccarei ee 6 {LORENZO INFANTINO REFERENCES Ac (95, tae Wan Cat Mee te ovens ol ptgae 2 ‘ty {8 i ef edn Seer Slo Unie es ‘ioe ents ames Bongo open ein 9) ene bir: Ps A pee Frc ne ry pa Lt Rv id Kn Pa pt tbo, mi ca onc Ls Rot Kg Pa Fo F 4 (88 These war Che he Ue Car Pe at 4. Pe cnetnf tr’ Chap Te Uy ha roe ooh FAs, Te eameraa fm pe they Pn Pe ‘age ton fv ln ty Co Rac, Mook FAs Ainge A Woe EH Hope: asp ‘Ae Lento Ree ne D8 sf ann na Ld Dn Ini, (938 non mm ng Fs ay Sm aya, od ite Inn, aan ry, Lind Rone Isai to mn, marca cares Sera Rabe. ‘ate W 0) tee Don td Wa Senge na any Kin (hy ofan ary en, Nb Peon aay ra ‘ite Mth 'e seminal Ron ‘ete: (sos nM Kc 8, Claus tn i ‘don ae Mace) SW) ee and mr ape cig eens I Ke EEE hone sO 8S Mager nt Preps mans Ge Cy, PA Ube Fe, My to my te Ge Pe 150 yom fea al dc Lodo: Rowe Bam (85 rap of pele Cle wets of Sl Set NB “erm The Use Tras Fea an 1's Ion toga Od Ov Urey Pen DLS two, Gee ano pen ayn me td pens fet anany p90 Catan ese as hr mee Sets lun Un an ton a Soap Ney Fd bs it mat on Roo: Yor vei in 00, heat et mms Ana, AL La ta FS (fed sn hy London Mao. Pepe KR 0) Dh ew nay cea, Res ed Kg Pe yeh and he Brainy Trad phe Hom seimomis AT ot, KR OS, Te and ie KA. Papper Tend “ron tr peg oe sos ar mor ete fm we an ee B95) Pr rom mynd thee Ln Ge ead ei Sore i in en hr ne ‘sca 'A tT fl es. The Ol on of be wk od orapndne tam Sm Oars Cen eee sme getgi race Tan won tsomcna eee ee oeeeeaeeenaeets LS RTE arrose tense meen tees garmengn arate SEEDS risgreet neta nae Sepa aerimesr oer anereiat