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Philosophers of Capitalism: Menger, Mises, Rand, and Beyond

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In this excellent, well-organized, and easily readable book, Younkins makes a convincing case that the Austrian value-free defense of capitalism and the moral arguments of Objectivism and the Aristotelian philosophy of human flourishing are complementary and compatible. In this thought-provoking book, Younkins presents 12 relevant essays from a variety of philosophers and economists and frames them within his own four insightful essays. His chapters alone are worth the price of the book! His first three essays clearly introduce the readers to the basic arguments of Menger, Mises, and Rand. Then, after presenting the 12 fine essays by other scholars, he provides a framework or architectonic of a potential Austrian-Objectivist paradigm for a free society. Younkins shows that no field is totally independent of all other fields and that there really no discrete branches of knowledge. He understands that any real truth is always compatible with other truths.

The two most prominent schools of thought for those committed to laissez-faire capitalism are Objectivism (the neo-Aristotelian philosophy of Ayn Rand) and the Austrian School of Economics founded by Carl Menger.

An essential difference between these two schools is that Objectivism is a full-orbed philosophy which contains an explicit political and ethical justification for capitalism. Austrian Economics, on the other hand, presents itself as an explicitly value-free system of thought. Austrians argue that while capitalist economies will increase wealth and benefit the public at large, any ethical justification for capitalism is not intrinsic to the Austrian method. For example, Ludwig von Mises considered ethics outside the domain of science and made his ethical case (to the extent one could call it that) for capitalism on utilitarian grounds. In addition, Mises was explicitly Kantian in his epistemology and considered his methodology (which he called praxeology) to be based on Kantian assumptions. And while we tend to associate Austrian Economics with laissez-faire capitalism, some Austrians have not been consistent defenders of free enterprise. One thinks of Friedrich von Hayek, whom Rand bitterly opposed.

Nonetheless, Rand praised the economic writings of Mises while noting her disagreements with the philosophical sections of her work. However, as her posthumously published Marginalia indicate, she was in fact downright hostile to his ethical and epistemological theories. Rand believed that Mises' utilitarianism and Kantianism could not provide the appropriate methodological foundation for economics or provide a philosophical foundation for a free society. In fact (if her Marginalia constitutes her reasoned evaluation of Mises) she considered him a "neo-mystic" because of his Kantian approach. One need not be an expert on Rand's thought to know that "mystic" was one of the harshest terms in the Randian lexicon. Things went from bad to worse in her eyes with Mises' American follower Murray Rothbard. Although Rothbard was an Aristotelian whose ethics shared similarities to Rand's, he helped launch the modern libertarian movement and advocated anarcho-capitalism. Rand's hostility toward libertarianism has continued in much of the Objectivist movement today, and some of it has spilled over into hostility toward Austrian Economics as such.

The Austrian attitude toward Objectivism is less uniform. Many Austrians appreciate Rand an important advocate of capitalism and are grateful for her advocacy of Mises' books, but consider her thought insufficiently rigorous to be considered philosophy. Others, such as George Reisman, have sought to combine Austrian Economics and Objectivism, as in his magisterial work Capitalism.

Professor Edward Younkins thinks its time for a détente if not a rapprochement. By looking back toward the Aristotelianism of Carl Menger and forward to a potential synthesis of Rand and Austrianism, he thinks he can break the impasse. If Austrians understand their Mengerian (and therefore Aristotelian) roots better, and if Objectivists do a better job of understanding Austrian methodology, perhaps some of the distrust that has placed these two schools at loggerheads can be broken.

This book is essential reading for anyone interested in the critical and inextricable relationships between the economics and the philosophy of the free society. Only a person like Younkins, who has a broad transciplinary understanding of the social order, could have written such an integrative work. The author expertly links the work of Aristotle, Menger, Mises, Rand, and others to argue in favor of the free society. Younkins persuasively argues that the study of human action, when properly grounded in natural law, reveals the connection between economics and morality. This book is consistent with his popular classic, Capitalism and Commerce, and offers a
powerful, emergent libertarian synthesis of tremendous promise.