Praxeology and Reactive Actions

Hello everybody,

I’m an undergraduate student of philosophy, economics and sociology at the University of Zurich. Moreover, I’m an associate fellow at the Liberales Institut in Zurich. You can read more about me here.

I handed in a paper last week where I criticize the philosophical basis of praxeology from the perspective of contemporary philosophy of action. I blogged about it here.

In a nutshell: I criticize praxeology’s failure to take so called reactive actions into account. Reactive actions is a concept used by Frederick Stoutland to criticize Donald Davidson’s and Michael Smith’s philosophies of action. Reactive actions do not necessitate the agent having a certain belief towards the action in question but can rather only be understood with the help of a Wittgensteinian rule-following model. Because praxeology bears many similarities to Davidson’s and Smith’s belief/desire model and because of Mises’s and Rothbard’s strictness in only allowing two categories of behavior, namely (purposeful) action and involuntary reflexes, praxeology fails to take many of our daily actions into account or, even worse, interprets them in a wrong way. I suspect that the possible validity of my/Stoutland’s critique would have quite devastating effects on praxeologist value theory because reactive actions would not reveal any of the agent’s preferences if they do not necessitate the agent having certain beliefs.

Anyway, to make a long story short, I’d like to know if there’s any known criticism of praxeology that goes along similar lines as the one outlined above.

Thanks for the help in advance!

Best wishes,

Matt

I’m currently going through Wittgenstein at university (painfully - we’re assigned a lot of reading on him; I’ve just finished his writings on rule-following.) I’ve noticed a lot of parallels between his linguistic approach and the traditional Austrian epistemological approach (that is to say the Kantian one). At any rate, given this critique (I’ve not gone through it yet), what would you propose as a solution?

As an aside, have you read Roderick Long’s works on Wittgenstein and Hoppe’s paper on hermeneutics?

Thank you for your reply, Inquisitor!

I did read Long’s “Anti-Psychologism in Economics: Wittgenstein and Mises” but I haven’t yet read any of Hoppe’s (and Rothbard’s) papers on hermeneutics. However, as it seems to me, these works only investigate the epistemological (Kantian and neo-Aristotelian) foundations of praxeology – namely its rationalist foundation. But I am actually convinced by Long that praxeology’s claims about purposeful action is of apodistic and universal validity. What I’d dispute is that all action is purposeful in the sense that it necessitates the agent having certain beliefs towards the action in question.

As to what I would propose as a solution, I have no idea. But my hunch is that the praxeologist and the hermeneutical approach to economic analysis would have to complement each other and that empirical, historical and psychological data and findings would have to be taken into consideration to a larger degree.

It doesn’t relate directly, but I think it might help to also consider the Aristotelean position on methodology and its implications for praxeology:

On Praxeology and the Question of Aristotelean Apriorism

I’ll read your critique later on and see if there’s anything I can comment on.

Thanks, I’ll take a look at it!

You might also take a look at Roderick’s book draft Wittgenstein, Austrian Economics, and the Logic of Action.

I would deny that a neo-Aristotelian foundation for praxeology is rationalist.

I think it is a mistake to view reactive actions as not being purposeful, i.e., being oriented toward and done for some end. ‘Purposeful’ here doesn’t have to be based on some explicitly theoretical belief. It might help though, if you clarify what exactly you mean by ‘reactive action’.

If you’re read Roderick Long’s antipsychologism paper then you know that he in fact advocates this. Indeed, he argues that praxeology and thymology are analytically distinct but inseparable. His book is a longer, more detailed, and in-depth exploration of these issues.

Am I missing something here? Do economist use a non-philsophical definition of a priori? It seems a priori logic is as much of a construct as any epistemological system. Has any philospher, much less economist, been able to propose a satisfactory system of thought that satisfies the constraints of Sextus Empiricus’ Agrippan Trilemma? I have purveyed many texts from various schools of thought and have never seen a satisfactory proof for any a priori logic, other than those based on strict biological sciences (such as base instincts to breath). Besides, did not Godel’s proof settle the debate over aximoatic reasoning at the universal mathematical level. It pointed out mathematically what arguably Sextus Empiricus pointed out before 500 A.D. that once logic crosses over into the realm of universal knowledge it becomes inherently self-refrencing. Although Godel’s proof only dealt with mathematical axioms the Agrippan Trilemma denies the possibility of Truth in knowledge, which seems a more fundamanetal challenge. The Agrippan trilemma states, as best as I can simplfy it;

Knowledge claims 1. use assumptive reasoning (i know this becuase some undemonstrable arguement makes it so; god, a priori knowledge, axiomatic reasoning)

  1. infinite regress

  2. circular reasoning

For more info see:

Ernst Nagler’s book on Godel’s Proof (for non mathematicians)

Sextus Empiricus own works translated by a variety of folks

I recall Hoppe’s brief remark on Gödel:

Matthias,

Like many (most?) disagreements in philosophy, I believe this one is semantical in nature. The important thing to remember about Misean praxeology is that the ends of an action can be anything. You say,

Under praxeology, the act of stopping a car signifies that the actor prefers the car to be stopped than for it to keep moving. This does not mean the actor’s desired ends are a stopped car. Her desired ends might be to follow traffic rules, and cares nothing for stoping at stop signs. Or, her ends might be to avoid getting into an accident and being harmed. If she were on Sigmund Freud’s couch, he might say her ends have something to do with sex. It really doesn’t matter to praxeology; the causal chain of mean-1 → mean-2 → … → mean-n → end could be any length.

History,

As I’m sure you know, Gödel’s theorems do not apply to all formal systems, but only ones which include the set of natural numbers and are self-referencing. Praxeology does not, as far as I can tell, try to prove its own validity. I also don’t think its a formal system, although its really hard to tell given that its done in natural language.

As for praxeology requiring infinite regress, I believe most Miseans would say that its axiom of action is self-evident. That is, it cannot be denied without affirming that it is true (you cannot deny that humans act without acting yourself). I’m sure people have thought up (deterministic?) arguments against this, but I don’t think many people would find them terribly convincing.

Thanks for your replies, Geoffrey!

I’m aware that Long advocates a rapproachment of praxeology and hermeneutics. However, I think I would give praxeology less weight than Long does. To elaborate on this point, though, I’m afraid I need to better explain what I mean by the concept of reactive action.

I borrow the concept from Frederick Stoutlands paper “Reaktives Handeln und das Überzeugung/Wunsch-Modell“, which unfortunately is only available in German. I’ll try to summarize the arguments of his paper which are most important for my critique of praxeology.

Stoutland distinguishes between teleological reasons and “in reaction to something” reasons [“In-Reaktion-auf-etwas”-Gründe] (and a few more non-teleological reasons) for actions.

Teleological reasons necessitate the agent having certain beliefs and desires concerning the action in question. For example, if my eating an apple is caused by a teleological reason than this requires me, for example, having the desire to satisfy my hunger and the belief that eating an apple will to a certain degree satisfy my hunger. [The belief/desire model as advocated by Donald Davidson in “Actions, Reasons, and Causes” and by Michael Smith in “The Possibility of Philosophy of Action“ and my reading of Nationalökonomie, Human Action and Man, Economy, and State leads me to the conclusion also by Mises and Rothbard argues that such desires and beliefs actually constitute the teleological reasons. This is, according to Stoutland and for reasons that I can summarize later if you wish me to, wrong. Desires and beliefs are merely necessary conditions for something to be a teleological reason.]

“In reaction to something” reasons, on the other hand, do not necessitate the agent having any beliefs and desires concerning the action in question. Furthermore, says Stoutland, such reasons are more basic than teleological reasons. To prove the latter claim Stoutland borrows Wittgenstein’s example of the sign which reads “←” and on which Wittgenstein elaborates in §201 (and in other paragraphs) of Philosophical Investigations. Stoutland’s reading of Wittgenstein is that we don’t turn left when we see that sign because we interpret [deuten] the symbol as telling us to turn left. If that were the case we would have to ask ourselves if “turn left” also needs to be interpreted. And if it does, the question arises as to how we interpret our interpretation of “turn left”. This would lead to an infinite regress. Thus, we turn left when we see the sign because we’ve learned, in our social context, to turn left when we see a sign which reads “←”. Now, Stoutland takes this example to the level of philosophy of action and says that, when we turn left, we don’t need to have the belief that the sign means “turn left” because that would lead to the same infinite regress.

To make his point about the existence of actions which are caused by reactive reasons, Stoutland names a similar example. He asks what our reasons are for stopping our car when we see a stop sign. He admits that there are cases where we have, for example, the desire to follow traffic rules or to arrive at our destination unharmed and the belief that stopping at a given stop sign will help achieve that desire. In these cases, the reason for us to stop would be the existence of the stop sign but it is only a reason because we have said desires and beliefs. However, by appealing to our intuitions, he claims that most of the time we simply stop because there is a stop sign – that is, because we grew up in a certain social context where a stop sign indicates a certain rule.

I agree that many times when I stop my car I don’t have a belief that my stopping it is a certain means to one of my ends. I simply stop reactively.

Now, because our stopping our car, can hardly be classified as a reflex, praxeology would classify it as the only other type of behavior it allows: (purposeful) action. Thus, from a praxeological standpoint we would have to say that every time someone stops her cars at a stop sign she reveal a certain preference. However, this cannot be the case if reactive actions actually exist and if she stops her car reactively. She does not have a belief concerning that action (she still might have the desire of following traffic rules and/or arriving at her goal unharmed) and as such can’t be said to have any preference towards stopping the car.

Stoutland furthermore claims, and I agree, that many of our daily actions are reactive. I think it’s even possible for trade to be reactive. This would imply that not every “voluntary” trade is, ex ante, beneficial to all parties involved. It also wouldn’t mean, of course, that such trade is harmful to one of the parties. (I am putting “voluntary” between quotation marks because I also think that it would follow that the concept of voluntarism would become more complicated if reactive actions actually existed.)

Thanks for your reply, Grant!

However, as you might be able to tell from my last post, the fact that many ends are actually means to other, higher ends is not disputed by my critique. I am rather talking about our beliefs concerning means.

She reveals a preference for the car to be stoped, but that says nothing about her ends. Her preference could easily be to follow the rules of the road or some social norms, as Stoutland indicates. Revealed preferences say nothing about ends, which to praxeology are unmeasurable.

I for one believe that Mises’s assertion that praxeology only applies to conscious humans to be incomplete. I don’t see any reason it doesn’t apply to anything which acts with purpose; even purpose which might not be consciously known to the actor at the time of acting (although I don’t think Mises would dispute this). If we stop and think why we obey certain social norms, we find we almost always find its for a good reason (usually social acceptance).

Its true we could go through the entire thought process of: “I see a stop sign”, “I want to stop so I don’t get a traffic ticket”, “I don’t want a ticket because I’d prefer to keep my money”, “I like money because it buys me food, which keeps me alive” every time we react to something. But that would just be an extremely inefficient decision-making process, even if it might be more exact. The fact that this chain of reasoning isn’t traversed in real-time every time a stop sign is encountered is perfectly consistent with praxeology, which does not comment on the chances of a person’s means actually fulfilling their ends or how often people stop to reflect on the desirability of their actions. All that matters is that the driver stops for a reason. The time at which the driver concluded that she should start stopping at stop signs to fulfill some end isn’t relevant; it could have been today in real-time, or ten years ago when she was learning to drive and decided that she didn’t like getting traffic tickets.

So would you even assert that reflexes reveal preferences? When you hit me with a hammer right below my kneecap and I move my shin as a consequence, does that mean that I prefer my shin to move? That doesn’t intuitively strike me as a very good solution.

But I think the problem is, that you think reactive actions are purposeful. I don’t think they can be. If they do not necessitate the agent having certain beliefs concerning the action in question, how could the action be purposeful? This strikes me as coincidental.

I think it obvious that this is not the same thing as stopping one’s car by pressing down on the brake pedal. The example you give here is an unconscious, involuntary bodily movement in response to a physical stimulus against a nerve. I’m not sure one could even call it a reflex. Stopping one’s car, on the other hand, is always or nearly always a conscious (if only subconscious or habitualized) response to certain events. In the latter case, I don’t see how you could make sense of the action without imputing some sort of reason to it. It need not be a reason that the driver thought out during or immediately prior to the action. The subconscious mind contains all sorts of habitualized responses. Pressing down on the brake, even only as a reaction to a sudden emergency alarm of “STOP!” in one’s mind as a response to perceived danger, is a means (pressing down the brake) to and end (stopping), which end itself can only be understood as a means to an ultimate end: preserving and furthering one’s life.

Regarding another comment you made in a previous post, I don’t think Roderick over-emphasizes praxeology. Indeed, he criticizes Hoppe and other formalists for doing so. On the other hand, he also criticizes Lavoie and other hermeneuticists of over-emphasizing thymology. I think Roderick maintains a happy and correct mean between both faulty extremes. Following his line of criticism, it seems to me that you are erring on the Lavoie/hermeneuticist extreme. You are mistaking thymological applications or mis-applications of praxeology for problems inherent in praxeology itself.

Of course there is a reason that caused the action. The stop sign is the reason! If you ask yourself: “Why did I stop my car?” Very often the only reason you can give is: “Because there was a stop sign.” As Stoutland writes in his paper, quite often the existence of the sign is the only reason why you stop your car.

I’m afraid, though, that you’ll say that you have a subconscious desire to follow traffic rules and the belief that stopping your car at the stop sign will satisfy that desire. You indicate as much with the following sentence:

I’m afraid Mises would dispute that. In Human Action he writes the following:

This together with Mises’s claim that human action is “is a person’s conscious adjustment to the state of the universe that determines his life” (emphasis mine) doesn’t leave much space for such a concept as subconscious beliefs or subconscious means/ends considerations.

Of course my argument only works if reactive actions (which are caused by non-teleological reasons) actually exist. I think Stoutland’s Wittgensteinian argument for the primacy of reactive actions at least strongly indicates that they do. But maybe I wasn’t too clear in recounting of his line of argument. If you wish, I could try again.

That passage you cite from Mises doesn’t contradict what my claim. What I meant by “thought out” was an explicit conceptual chain of reasoning. To my knowledge, neither Mises nor Rothbard require that.

I don’t agree that there is any such thing as non-teleological action. All action is purposive.

Wouldn’t the choice of a certain means to achieve a certain end be called “an explicit conceptual chain of reasoning”? And isn’t the former the basis of all action, according to Mises and Rothbard?

I think there’s a difference between non-teleological action and action which is caused by non-teleological reasons. Reactive action could, in a way, be called purposive in the sense that it is it’s own end. But the important point is that non-teleological reasons do not need the agent having any beliefs to cause a reactive action.

One need not think out clearly, completely and explicitly the reasoning for why one ought to slam on the breaks when one notices that the brake lights of the car in front suddenly came on and one is too close. It is not necessay to clearly and explicitly think through, right at the moment of action, a complete line of reasoning such that “Oh, that car’s break lights just came on. On crap, if I don’t slam on my breaks right this instant I might hit it. I don’t want to hit it because that could cause serious bodily injury to myself and others, or even death, and serious damage to our vehicles. And I ought not to allow that to happen if I can help it, because…” Etc.

I don’t see the distinction you are trying to make between “non-teleological action” and “action which is caused by non-teleological reasons” as being a valid one. Indeed, what is a non-teleological action but an action which is caused by non-teleological reasons? But I don’t think there is any such thing as non-teleological actions or non-teleological reasons. To have a reason for doing something is precisely to have a reason to achieve some end by some means.

This may be true, but, again, the passage from Human Action which I quoted above seems to me to exclude this. The “expectation that purposeful behavior has the power to remove or at least to alleviate the felt uneasiness” seems to me to be something which can only be had consciously.

Okay, I think I was mistaken to say that “non-teleological action” and “action which is caused by non-teleological reasons” aren’t the same thing. They are the same thing and I think they do exist. However, reasons for such actions aren’t “had”. If a stop sign is the reason for me to stop my car then I don’t stop my car because I have this reason but because the stop sign is this reason.

I’m afraid, though, that I’ll have to explain a bit further why Stoutland thinks that beliefs and desires don’t constitute teleological reasons to make this point a bit clearer.