Tag: methodological individualism

Excerpt: Joseph Vogl, The Specter of Capital

This brings us to one of the most important component of the new social law and the oikodicy, a defining feature of homo economicus and his milieu, the market. Economic beings are reliable on account of their very limitations, they are social due to their lack of sociality, and it is only through their self-interested participation in trade that they can be brought to serve a purpose extrinsic to themselves. Above all, they best exercise control over themselves and others if they are left uncontrolled. There is nothing — and this will be one of the leitmotifs of the liberalism to come — more harmful than a government that wants to do good. On the contrary, what is called for here is a Mephistophelian agenda, one that takes its cue from a power “which would do evil constantly and constantly does good,” inadvertently producing what is best for all. Civil society, which constitutes itself as the milieu of homo economicus, is governed by the principle of nontransparency or inscrutability; there is no benevolent political actor, possessed of an all-encompassing overview and piercing insight, who might be willing and able to do what is good for everyone.

Joseph Vogl, The Specter of Capital (Stanford: Stanford University Press, 2015), p.24.

Excerpt: Joseph Vogl, The Specter of Capital

Even if the concept of equilibrium has taken different theoretical and epistemological forms on its journey from classical economics, via the marginalists of the nineteenth century, to twentieth-century neoliberalism, these versions share a limited spectrum of basic assumptions. They assume that all market players are interested in maximizing profit or use-value, that a self-regulating relationship between different quantities, forces and other factors obtains, that exchange mechanisms operate most effectively when arbitrary intrusions and interventions are kept to a bare minimum, and hence that the market should be seen as an exemplary arena for the clarification of otherwise inscrutable and opaque forms of social interaction.

Joseph Vogl, The Specter of Capital (Stanford: Stanford University Press, 2015), p. 35.

Excerpt: Amartya Sen, “Rational Fools: A Critique of the Behavioral Foundations of Economic Theory”

It is possible to define the interest of a person in such away that in every single decision they make they are seen to be following their own interests.

Amartya Sen, “Rational Fools: A Critique of the Behavioral Foundations of Economic Theory,” in The Self and the Political Order, ed. Tracy B. Strong (New York, 1992), p.121.