I’m going to go out on a limb here and ramble on about something I know very little about.
An intellectual used to have it easy. The axioms of geometry were considered self evident by everyone, the rules of logic Euclid employed were also considered self evident, and the results he got were unshakably true. And there was not much else that was considered significant knowledge of the real world.
Then along came challenges to the axioms, Marx challenging logic itself [though I doubt that has to be taken seriously], and a new kid on the block, scientific induction, which was coming up with spectacular real world results. So that what we thought was the best and only way to arrive at the truth [start with self evident axioms] was taking an ignoble second place to a very intellectually unsatisfying way [if it works, it must be true].
A search began for a path back to the Garden of Eden.
The first question that had to be tackled was, how can we make sure we won’t get fooled again? What criteria will make sure that any axioms we choose this time around will really be self evident? This turned out to be a very difficult task, one might say impossible, basically. And this is where where Quine fits in, showing that it’s not that easy.
The second question was, how can we give some repectability to the very fishy, logically unsatisfying methods of discovery applied scientists were using? I think it’s Hume who first showed how weak their arguments really were logically, despite their undeniable success. And I don’t think anyone has really done much in this field, despite great efforts.
Where does Mises fit into this scheme? As he writes in the intro to Human Action, economics was coming under attack in his time, for very ugly reasons. People did not like the conclusions it was arriving at. Things like: don’t steal people’s money and everyone will become wealthier automatically as time passes. Just stay out of the way. Forget socialism, interventionism, planned economies, tarrifs, unions, they all are doomed to failure.
So they attacked it from every angle. 1. Your assumptions are flawed. 2. Your logic is flawed. 3. You personally, Mr Economist, are immoral.
So the first thing Mises felt obligated to do was defend the methods economists were using. The hardest one to deal with was number 1. What with the impossibility, basically, of knowing in a rock solid fashion that our axioms are true in any field whatsoever, and the logical shakiness of inductive reasoning, where could he turn?
Now the truth is, if it were not for the fact that so much money and power were at stake, no one would doubt for a second his axioms. Of course people use means to achieve ends. Can there be any possible doubt about that? And all the arguments claiming no axiom can be known to be self evident [like Quine’s] are all highly theoretical. No one in real life uses them to doubt, say, the law of gravity, even though they could, in theory.
But Mises found an argument that did a little better than a mere appeal to the evidence staring us in the face. The old “Try to disprove me and you are just giving another instance that I am right” trick.
End of ramble. Be interesting to see what someone more well informed on these matters has to say.