Philosophers From Austria

"Mathematical and physiological researches have shown that the space of experience is simply an actual case of many conceivable cases, about whose peculiar properties experience alone can instruct us."

"Some Machians were sufficiently impressed by Einstein's interpretations of Brownian movement to accept atomism. Mach himself brushed such objections aside, and also emphatically rejected Einstein's relativity theory."

":...Vienna is the origin of so many schools of its own which were dominant in the 1920s. And one of the most fundamental and influential, in which we all were partially caught, was logical positivism. In fact, Mises’ brother, Richard von Mises, became one of the leading figures. Now he and I all grew up in this Ernst Mach philosophy that ultimately everything must be rationally justified…"

"The aim of research is the discovery of the equations which subsist between the elements of phenomena."

"The mental operation by which one achieves new concepts and which one denotes generally by the inadequate name of induction is not a simple but rather a very complicated process. Above all, it is not a logical process although such processes can be inserted as intermediary and auxiliary links. The principle effort that leads to the discovery of new knowledge is due to abstraction and imagination."

"Thought-economy is most highly developed in mathematics, that science which has reached the highest formal development, and on which natural science so frequently calls for assistance. Strange as it may seem, the strength of mathematics lies in the avoidance of all unnecessary thoughts, in the utmost economy of thought-operations. The symbols of order, which we call numbers, form already a system of wonderful simplicity and economy. When in the multiplication of a number with several digits we employ the multiplication table and thus make use of previously accomplished results rather than to repeat them each time, when by the use of tables of logarithms we avoid new numerical calculations by replacing them by others long since performed, when we employ determinants instead of carrying through from the beginning the solution of a system of equations, when we decompose new integral expressions into others that are familiar,—we see in all this but a faint reflection of the intellectual activity of a Lagrange or Cauchy, who with the keen discernment of a military commander marshalls a whole troop of completed operations in the execution of a new one."

"Nature consists of the elements given by the senses. Primitive man first takes out of them certain complexes of these elements that present themselves with a certain stability and are most important to him. The first and oldest words are names for "things". … The sensations are no "symbols of things". On the contrary the "thing" is a mental symbol for a sensation-complex of relative stability. Not the things, the bodies, but colours, sounds, pressures, times (what we usually call sensations) are the true elements of the world."

"...Intellectually, the dominating figure...was Ernst Mach, the physicist. That was the principle of thinking in which we all grew up, and at first all adopted it. But some of us—My psychological thinking begins directly with Ernst Mach. Mach in his famous book The Analysis of Sensations explains or assumes that while all our individual sensations have an original pure quality, they are constantly modified by experience. There is only an original order and then the experiential change. Which led me to the conclusion that if you can show that experience can change the thing, why need there be an original quality? The original quality may have arisen in the same fashion. So it was only a step beyond Mach, which turns against him with the result that my own psychology developed. In this sense I began from the same thing on which the logical positivist [movement]—Schlick, Neurath, Carnap, and so on—developed from Vienna; but split at the base, led us apart very much. But these two apparently absolutely contrary trends come from a common initial viewpoint."

"I see the expression of... economy clearly in the gradual reduction of the statical laws of machines to a single one, viz. , the principle of virtual work: in the replacement of Kepler's laws by Newton's single law... and in the [subsequent] reduction, simplification and clarification of the laws of dynamics. I see clearly the biological-economical adaptation of ideas, which takes place by the principles of continuity (permanence) and of adequate definition and splits the concept 'heat' into the two concepts of 'temperature' and 'quantity of heat'; and I see how the concept 'quantity of heat' leads on to 'latent heat', and to the concepts of 'energy' and 'entropy'."

"Not bodies produce sensations, but element-complexes (sensation-complexes) constitute the bodies. When the physicist considers the bodies as the permanent reality, the `elements' as the transient appearance, he does not realise that all `bodies' are only mental symbols for element-complexes (sensation-complexes)"

"The student of mathematics often finds it hard to throw off the uncomfortable feeling that his science, in the person of his pencil, surpasses him in intelligence,—an impression which the great Euler confessed he often could not get rid of. This feeling finds a sort of justification when we reflect that the majority of the ideas we deal with were conceived by others, often centuries ago. In a great measure it is really the intelligence of other people that confronts us in science.—Mach, Ernst."

"There is no problem in all mathematics that cannot be solved by direct counting. But with the present implements of mathematics many operations can be performed in a few minutes which without mathematical methods would take a lifetime."

"I know of nothing more terrible than the poor creatures who have learned too much. Instead of the sound powerful judgement which would probably have grown up if they had learned nothing, their thoughts creep timidly and hypnotically after words, principles and formulae, constantly by the same paths. What they have acquired is a spider's web of thoughts too weak to furnish sure supports, but complicated enough to provide confusion."

"Personally, people know themselves very poorly."

"Scientists believe there is a hierarchy of facts and that among them may be made a judicious choice. They are right, since otherwise there would be no science... One need only open the eyes to see that the conquests of industry which have enriched so many practical men would never have seen the light, if these practical men alone had existed and if they had not been preceded by unselfish devotees who died poor, who never thought of utility, and yet had a guide far other than caprice. As Mach says, these devotees have spared their successors the trouble of thinking."

"In reality, the law always contains less than the fact itself, because it does not reproduce the fact as a whole but only in that aspect of it which is important for us, the rest being intentionally or from necessity omitted."

"The new historiography on Logical Empiricism sets in with the rediscovery of Ernst Mach (1838-1916) as a precursor of Gestalt theory, evolutionary epistemology, (possibly radical) constructivism and the modern historically oriented philosophy of science. But already in Mach’s reception of the Vienna Circle one can see not only a certain pluralism of views but also a polarization of the various positions (Mach’s influence on Carnap’s Aufbau / Logical Construction, the critical distancing to “psychologism” in the manifesto, the alternative to the principle of economy in Karl Menger, etc.) Nevertheless, this research program, which was interpreted differently by the Vienna Circle, actually represented a sort of prototype for Logical Empiricism in the interwar years – irrespective of whether one backs the bold claim as to the existence of a “typical Austrian philosophy” (as opposed to German idealism)."

"The book, as it stands, seems to me to be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it beginning with page 45, and yet it remains a book of some interest, which is likely to leave its mark on the mind of the reader. It is an extraordinary example of how, starting with a mistake, a remorseless logician can end up in bedlam."

"If Hayek believes that the spending of newly-printed currency on employment and consumption will worsen our current terrible depression, then Hayek is a nut."

"I did not begin from Keynes: I began from Pareto, and Hayek (footnote 10: There is evidence for this, in the paper 'Equilibrium and the Cycle')"

"Hayek was making us think of the productive process as a process in time, inputs coming before outputs."

"It was from Hayek that I began."

"There were two explanations, and one is that in Hayek and Friedman you had an absolutely marvelous cast—two people, one very bouncy and saucy and cheeky and outspoken, vigorous. This is Friedman. He was always bouncing out with ideas; sometimes they were a bit farfetched. Then you had Hayek, this very correct and rather serious, portly, gracious, slow, rather ponderous-speaking, sometimes thinking what his next sentence is going to be. And they were men unruled by any ambition, not trying to create a party, to get elected, to win votes—any of that. It was an amazing success of upright men of integrity, intellectual brilliance, not flashy, but very impressive to watch them performing over a wide range of topics."

"At the time of his death, F.A. Hayek (1899–1992) was unquestionably the world’s preeminent spokesman for classical liberalism and its most important thinker. He led an immensely productive life, over the course of which he made significant contributions to a variety of disciplines, among them economics, political and social theory, psychology, and the history of ideas."

"Hayek’s Road to Serfdom (1944), also written during the war, was too pessimistic, I believe, about the capability of present-day capitalism in most Western countries to adjust to maladjustments in the structure of production without causing intolerable unemployment. Excessive pessimism also appears in Hayek’s later writings. In Full Employment at Any Price? (1975), for example, he refers to the inflationary excesses of the 1970s as “the present crisis,” I do not wish to minimize the dangers of inflation. However, the experience of the 1980s bothin the United States and Europe shows that inflation can be stopped without producing more than relatively mild recessions."

"Hayek watched the interwar collapse with horror, as Keynes did, and shared many of Keynes’s liberal values. What he failed to understand is that these values cannot be renewed by applying any formula or doctrine, or by trying to construct an ideal liberal regime in which freedom is insulated from the contingencies of politics."

"He who states that markets cannot fail, that market failure is always the result of government intervention, is a dogmatist. How the hell would he know? Overall, Hayek was not a dogmatist, although in his writings there can be found traces of such a liberal utopianism. There we encounter the motto: "What is not supposed to be, must not be! And what must not be, is not!" To me, all isms are suspicious anyway. The sceptic in me asks: why should markets be more reasonable than other human institutions? And we can see it every day: markets are also imperfect, prone to error, and in need of repair, like everything else that man has created."

"I still see Hayek as the best critic of all forms of centralized economic planning. It is to his merit to have shown scientifically that centralized planning cannot work for an economy because complete knowledge of that economy is never available centrally. As nice as it would be to have one, there is no mastermind who knows and can control everything, and there never will be. This was Hayek's scientific argument for the superiority of the market economy. A planned economy is only a viable means where there is a clear overarching goal – during wartime. A war economy is always a planned economy. Supporters of central economic dreams should therefore hear it once and for all: centralized economic planning is not suitable during peacetime."

"Conservative ideologues have used Smith's insight--that market exchange produces an order in human affairs that no one has designed--to defend their free-market policies. Chief among them was F.A. Hayek, the Nobel Prize-winning Austrian economist who became one of the gurus of the intellectual right in the '80s. Hayek argued that the market evolves as an unintended consequence of human activity, claiming that it embodies wisdom inaccessible to any single generation and insisting that it must therefore be accepted as the basis of society. In a devastating critique of Hayek's views, Rothschild dissects the multiple ambiguities of his notion of social order and shows how removed it is from anything in Smith. Hayek believed that we must submit to the unfathomable workings of the market, but this blinkered reverence for social process was unacceptable to Smith, who viewed the market as a human construction."

"No-one who knows Hayek's work can doubt that his attempt to restate liberal principles in a form appropriate to the circumstances and temper of the twentieth century has yielded a body of insights wholly comparable in profundity and power with those of his forebears in the classical liberal tradition."

"Hayek's work composes a system of ideas, fully as ambitious as the systems of Mill and Marx, but far less vulnerable to criticism than theirs because it is grounded on a philosophically defensible view of the scope and limits of human reason."

"Friedrich A. von Hayek, one of the strongest, and at times one of the few, economic voices advocating the reduction of government's role in the economy, is finally finding himself in the position of a Cassandra who suddenly that discovers people are listening."

"Hayek's theory of knowledge is his greatest achievement, and offers insights that should be utilised by both right and left, but he failed to apply them to one of the central aspects of the modern era - the way science and technology are utilised in increasingly perverse ways by a deregulated neo-liberal market economy, which if not checked will have devastating consequences for the biosphere and the survival of the human species. It is an example of how his market fundamentalism blinds him to conclusions to which his own analysis of markets should have led him. If he had followed the logic of his own argument, he might have arrived at a rather different view of the appropriate balance between the state and the market, and provided a more searching account of the nature and limits of government action, or as Keynes would have put it, between the agenda and the non-agenda of government. The resources for doing so are there within Hayek's thought, which remains a seminal contribution to modern social theory, but he chose not to develop his ideas in this direction because of his ideological commitment to market fundamentalism. That should not prevent others from doing so. It is increasingly urgent that we should."

"Hayek was an acute social theorist, but also an ideologue. He developed one of the most sophisticated theories of markets in social science, but he was also a market fundamentalist with a deep-rooted distrust of all forms of state regulation and state intervention, which tended to become more pronounced as he grew older. […] The paradox of Hayek's work however is that he stopped short of advocating either the kind of anarcho capitalism sought by some libertarians, or even the strict minimal state proposed by Robert Nozick. On the contrary he thought that the state needed to retain very strong powers to police the market order and prevent powerful interest groups such as trade unions from subverting it. But he fretted constantly about how this might be achieved, and how democratic governments could be persuaded to cease interfering with markets."

"Hayek’s lasting achievement was to focus attention on the limited and fragmented nature of knowledge in modern societies and the need for social and economic theorists to make that the cornerstone of their thinking. Yet in some ways he remained trapped in the rationalism he was so keen to reject. If our reason is so feeble, and if knowledge is necessarily imperfect and dispersed, how do we know this to be true? To make that claim Hayek has to take up the privileged status of observer that he is so critical of in constructivist rationalism. If he were not prepared to do so he could not justify his project of social and economic theory at all. Despite his denunciation of the ills of scientism and constructivism, Hayek is closer to the rationalism he criticizes than he might like to acknowledge."

"Hayek's attempt to delegitimize one side of the Western tradition is one of the most significant ideological closures in his work. It prevents him from seeing the close ties which exist between liberalism and socialism."

"Hayek's greatest failure is his neglect of the problem of private power. All his efforts go into the denunciation of state power, but he has little to say about private coercion."

"Sixty-two years ago I spent a year in what is known at Harvard as the other Cambridge. It was then in the high pulse of the Keynesian Revolution. Economic discussion was constant, intense, but London also called; once a week I came up to seminars here at the London School of Economics. A major attraction was Friedrich von Hayek, the noted conservative, author of A Road to Serfdom, his widely read analysis of the disastrous but emerging welfare state. He, however, was only slightly heard. The two hours were given over, all but exclusively, to telling him he was wrong. I found myself in support of this correction; it was education by the rebuke of error. (I trust that will not be the tendency on this pleasant and, for me, nostalgic occasion.) Over the years I’ve often presented myself to ardent conservatives as a student of von Hayek; it has added in an agreeable way to their normal confusion."

"The [seminar in economic theory conducted by Hayek at the L.S.E. in the 1930s] was attended, it came to seem, by all of the economists of my generation — Nicky [Kaldor], Thomas Balogh, L. K. Jah, Paul Rosenstein-Rodan, the list could be indefinitely extended. The urge to participate (and correct Hayek) was ruthlessly competitive."

"There is no figure who had more of an influence, no person had more of an influence on the intellectuals behind the Iron Curtain than Friedrich Hayek. His books were translated and published by the underground and black market editions, read widely, and undoubtedly influenced the climate of opinion that ultimately brought about the collapse of the Soviet Union."

"Let me emphasize. I am an enormous admirer of Hayek, but not for his economics. That, again, is subject to misunderstanding. It depends on what you mean by economics. I’m not talking about his understanding of economics, his application of economics to the real world, or anything like that, but his contributions to the science of economics, not to economic practice, not to anything else. I think Prices and Production was a very flawed book. I think his capital theory book is unreadable. I cannot say I’ve read it. [laughter] It’s very unreadable. On the other hand, The Road to Serfdom is one of the great books of our time. His writings in [political theory] are magnificent, and I have nothing but great admiration for them. I really believe that he found his right vocation—his right specialization—with The Road to Serfdom. His earlier works were intended to be part of the literature of technical economics as a science, and, indeed, it was that characteristic of them that impressed Lionel Robbins and led Lionel to bring him from Austria to London. I never could understand why they were so impressed [at the London School of Economics] with the lectures that ended up as Prices and Production, and I still can’t.... these very confused notions of periods of production, different orders of products, and so on."

"In terms of his personal characteristics, Hayek was a very complicated personality. He was by no means a simple person. He was very outgoing in one sense but at the same time very private. He did not like criticism, but he never showed that he didn’t like criticism. His attitude under criticism, as I found, was to say: "Well, that’s a very interesting thing. At the moment, I’m busy, but I’ll write to you about it more later." And then he never would! On the other hand, he wasn’t like von Mises. He wasn’t intolerant at all. You cannot conceive of Hayek doing the kind of thing that Mises did, when, for example, he wouldn’t talk to Machlup for three years because Machlup had come out for floating exchange rates at a Mont Pelerin meeting. Hayek did not do that. That was, I believe, because of the influence of the London School on him. He was very much tempered by the London School."

"Over the years, I have again and again asked fellow believers in a free society how they managed to escape the contagion of their collectivist intellectual environment. No name has been mentioned more often as the source of enlightenment and understanding than Friedrich Hayek's … I, like the others, owe him a great debt … his powerful mind … his lucid and always principled exposition have helped to broaden and deepen my understanding of the meaning and the requisites of a free society."

"Friedrich Hayek's influence has been tremendous. His work is incorporated in the body of technical economic theory; has had a major influence on economic history, political philosophy and political science; has affected students of the law, of scientific methodology, and even of psychology."

"I’ve always thought, incidentally, that many of us should welcome the fact that...a particular policy idea we hold does have this adverse effect on the opinions of other people. I think this is a very good thing, because it means that those of us who hold our views have to be better to get recognized than people who hold the other views. And in the long run, what matters is the quality of people who propose the ideas and not their number and not their position. It is because it is the quality of these ideas that matters so much that Hayek’s ideas have been so wide-spread and have had such an influence, and that you are now seeing the rise in the scientific as well as in the other parts of the world of more people of this particular kind of persuasion.... ... I am one of those who has learned a great deal from Hayek. I hope he is as effective as I think he will be in his teaching in Germany, but I also hope that we will see him back here very often indeed."

"There was someone who is clearly very important who also was not a member of the scientific commission, but whose career and trajectory was ultimately very important for the definition of contemporary neo-liberalism. This is the Austrian von Hayek. He came from Austria and from neo-liberalism; he emigrated at the time of, or just before, the Anschluss. He went to England and also to the United States. He was very clearly one of the inspirations of contemporary American liberalism, or of American anarcho-capitalism if you like, and he returned to Germany in 1962 where he was appointed professor at Freiburg, thus closing the circle."

"What of Ronald Reagan and Margaret Thatcher and their battles against government control of the economy? Here Hayek surprises. He does not disapprove of Reagan and Thatcher, but he has no high opinion of modem politicians in general. He does, however, say that Reagan's and Thatcher's policies "are as reasonable as we can expect at this time. They are modest in their ambitions." Modesty. The capacity to understand that well-meaning politicians — and their advisers, the intellectuals — will only wreak mischief if they try to guide economic development: This antipolitical concept is at the heart of Hayek's theory of economic and social development."

"Hayek was never blind to the potential difficulties inherent in this political synthesis, nor dismissive of the serious criticisms of capitalist society and liberal theory presented by thinkers of the left. He explicitly disavowed the ideal of laissez faire and distanced himself from the sort of free market utopianism common among more extreme libertarians. He thought it foolish to pretend that capitalism always rewards those who work the hardest or are otherwise deserving, advocated a minimal social safety net for those incapable of supporting themselves in the market, and had no objection to government taking on tasks far beyond those defining the "minimal state" of Nozick’s libertarianism, so long as this did not result in monopoly and private firms were allowed to compete with government for provision of the services in question. Like Marx, he believed that liberal capitalist society has a tendency to produce alienation, insofar as the impersonal rules of conduct upon which it rests necessarily eschew any reference to a common social end or purpose, and thus cannot satisfy the deepest human yearnings for solidarity. Unlike Marx, he also thought we nevertheless simply have no alternative to capitalism if we want to maintain the level of individual autonomy and material prosperity that are the most prized characteristics of modernity, and that it is naive and dangerous to pretend otherwise."

"Much as Hayek’s penchant for claiming that "bad" interventionist policy will ineluctably drive us along the road to serfdom—ultimately culminating in full-blown command planning and political tyranny— is clearly apparent in his 1940s writings, the very same sentiments pervade the third part of The Constitution of Liberty."

"Hayek frequently argued that any failure to adequately mend our ways—abandon “our” supposed infatuation with “social justice” and other “high ideals”—would inexorably put us in the hands of the devil. Arguably, “we”—Obama and company clearly included—have yet to change our ways."