Since subjectivism seems to be controversial and contentious among those who favor more of an objective approach to ethics, a precise definition of what constitutes something objective would be extremely helpful.
One of the most enlightening descriptions of how the terms “objective” and “subjective” came to mean what they do is provided by Talcott Parsons who explains Pareto’s conceptions of these terms. Reading this description, one gains important insight into how these concepts have developed. In what follows, Parsons is explaining Pareto’s concepts of “logical” and “nonlogical” action.
“In his second definition of logical action Pareto used a distinction between the objective and the subjective end, making their coincidence the criterion of logicality. It is not easy to discover what he means, but the following seems to be the most reasonable interpretation: The subjective end is quite clearly that anticipated (concrete) state of affairs which the actor himself subjectively desires and supposes to be the object of his action. In the course of action, however, he chooses and employs certain means, in Pareto’s term performs certain operations, which he thinks contribute to the realization of the subjective end. But this supposition will be correct only in so far as the actor’s judgment of the relation of the means that he proposes to employ to the end is sound. Such a judgment involves prediction, on the basis of verifiable knowledge, of the probable effects of the alterations in the initial situation and their “automatic” consequences, referred to as means. But knowing the subjective end and knowing the means it is proposed actually to employ, it is possible for an observer with a “more extended knowledge of the circumstances” to judge whether the particular operations carried out actually will contribute to the end. This predicted effect of the employment of the proposed means on the basis of the best available knowledge is apparently what Pareto means by the objective end of action.” (Talcott Parsons, The Structure of Action, Vol. 1, p.188-189)(quotation marks are by Parsons)(my underline, my bold)
Thus, what is objective in this conception, is the judgment of the observer—as opposed to the actor—as to whether the means the actor proposes to employ will bring about the actor’s intended effect. The observer’s judgment is aligned with “objective reality” while the actor’s judgment is considered a subjective anticipation. The observer’s judgment has superior ontological status.
“These considerations yield an interpretation of an important statement of Pareto, that the objective end must be “a real end, entering the domain of observation and experience, and not an imaginary end, foreign to that domain which may, however, serve as a subjective end.” The objective end is always arrived at by a process of empirically valid prediction of the probable effects of certain operations in a situation. For such a prediction to be possible and to be verified by the outcome, it must lie “within the domain of observation.” But for the actor, it would beg the question of the logicality of action to require that his subjective end should always be of this character. For the relation of means to end in his subjective belief may very well deviate from the scientifically objective standard which is the criterion. In so far as it does deviate because it has an end which falls outside the domain of observation the action is, of course, by definition nonlogical.”(p.189-190)(my underline)
An example may be helpful. A friend recently e-mailed me. He had recently moved from a large city to a small town where the cost of living is very low. By working a few part-time jobs, he was able to pay his monthly rent, and he remarked that he had been experiencing a peace of mind he hadn’t experienced in a long time. To the extent that “peace of mind” is not something observable by others, then an action with a goal of “peace of mind” is a nonlogical action by Pareto’s conception. As Parson’s writes above, such an end may be a subjective end, but it is not an objective end. So here, we have a conception where ends aren’t considered uniformly together simply as ends of the individual (as with Mises), but we have begun classifying ends, and now one class of ends depends on the observer’s judgment of the actor. The scientific character of the individual’s ends now hinges on the judgment of a person “with more extended knowledge.”
Parsons continues with Pareto’s conception of logical and nonlogical action:
“It is important to note that the differentiating criterion of logical and nonlogical action is a matter of the comparison of the results of observation from the objective and subjective points of view. The means-end relationship must be seen first as it is to the actor—what he thinks the efficacy of his means will be—and then “as it is in reality”—as the observer’s more extended knowledge leads him to believe it will, or would be.”(my underline)
Note how “the way things are in reality” in this conception is essentially identical to “the observer’s more extended knowledge.” That is, ontological reality resides with the observer, not with the actor in this conception. This means that, a priori and as a theoretical construct, whenever we refer to action, the actor’s subjective point of view is considered ontologically inferior to the objective point of view, which is that of the “observer with extended knowledge.”
This point is worth repeating: In this conception of things, the actor’s own view of things, by definition, is considered ontologically inferior to the observer’s point of view, which is conceived as representing “things as they really are.”
“Confining attention behavioristically to the observation of the external course of events is not sufficient. Then it is impossible to know the subjective end of the action at all, which is by definition in the strict sense a subjective anticipation on the part of the actor. All that it is possible to know is the objective end or the outcome of the action. But this must, in the nature of the case, always be the “logical” outcome of the operations actually performed. For in so far as a course of events is scientifically understandable in any sense its later phases must always be, in the sense in which Pareto means it, “logically united” to the earlier. Then, in terms of the objective point of view alone all action is logical.”(p.190)
“The differentiating criterion therefore involves the subjective point of view and can be stated in two ways: (a) Action is logical in so far as the operations are logically united to their end from a subjective as well as an objective point of view. That is, in so far as the relations of means and end are concerned, they must be established in the mind of the actor by a scientifically verifiable theory, or if the actor does not know the theory, the effectiveness of the combination must be verifiable in terms of it. (b) The subjective end must coincide with the objective end. Subjective end here can mean only the state of affairs that the actor desires or attempts to bring about. It can serve as an end only in so far as it anticipates the actual outcome before the “operations” in question; it is a “subjective anticipation.” To say that subjective and objective end correspond is, then, to say that the subjective end is the state of affairs which can be scientifically demonstrated actually to come about as a result of the actor’s proposed action.”(190-191)
“Action is, according to Pareto, logical in so far as it conforms with a certain type of norm…His definition covers only the norm, however…”(p.191)(my underline)
There are several interesting things that are entailed in Pareto’s conceptions as described by Parsons. What is objective resides with the person with “more extended knowledge.” And this is the person who apparently has more cause and effect theoretical knowledge.
“…Pareto immediately lays down the possibility of studying social phenomena from two different points of view which he calls the objective and the subjective, respectively. The objective is first characterized as what the phenomenon “is in reality” and opposed to the way it appears “in the mind of certain persons.” The further development of the distinction, however, especially linking the objective aspect with the way in which action appears “for those who have more extended knowledge” makes it legitimate to infer that the objective point of view is that of the scientific observer, while the subjective is that of the actor.”(p.187)
"Indeed this is explicitly included in his definition of logical action: “We designate as ‘logical actions’ those operations which are logically united to their end, not only from the point of view of the subject who performs the operations, but also for those who have a more extended knowledge.”
“…what Pareto is seeking to do is to take as his criterion of the logicality of action the demonstrable, intrinsic “appropriateness of means to end” according to the most extensive knowledge of the relations between means and the end that the given scientific observer can command.”(p.187)
What I find most important about this approach from a libertarian standpoint is how politicized this conception of action is or can be. Because, as we can clearly see today, who the scientific observers are, and which theories are considered verified scientific theories and which not, is hugely influenced by the state. The “norm” of logical action in this conception is to a large degree determined by scientific opinion. But scientific opinion is not only open to manipulation by the prevailing political system, but in and of itself, can be wrong or misguided. To give a simple example, today’s mainstream economists would be considered, in this conception, the scientific observers, and thus the ones who determine what is logical action in their realm of expertise. By contrast, in regard to economic questions, all other become “actors” with “subjective points of view.” The latter become “the certain persons” who have subjective views, as compared to “those with more extended knowledge” whose views reflect “things as they really are.”
Thus, Pareto’s conception of the objective point of view has important bearing on libertarianism and Austrian economics. In fact, Austrian economics, in so far as it deals with the individual’s subjective preferences, deals with a realm that does not lie “within the domain of observation,” and thus is not observable by “those with more extended knowledge.” In an important sense, since the individual’s subjective preferences do not lie in the domain of the observable, and since “those with more extended knowledge” judge only action that enters the domain of the observable, it follows that those who systematically study the domain of individual subjective preferences are those with less extended knowledge !!
Thus, there is possibly an unrealized problem in the theoretical attempt to align “objective reality” with the “observer” as distinct from the “actor.” This makes the question of who is to be considered the observer with more extended knowledge all important, since he represents “things as they really are” while the actor merely represents his own “subjective point of view.”