Comments Elsewhere

Kevin Carson:

Similarly, the labor theory of value is based, not on an inductive generalization from the observed movement of prices, but on an a priori assumption about why price approximates cost, except to the extent to which some natural or artificial scarcity causes deviations from this relationship. (Kevin Carson, Studies in Mutualist Political Economy, pp. 70-73)

J. Neil:

Translation: Kevin Carson has some blue-sky theory out of his ass — without looking at what happens in the real world

Now we have J. Neil Schulman, who claims to be an admirer of Ludwig von Mises, objecting to the use of aprioristic economic theory as “blue sky-theory out of his ass without looking at what happens in the real world.” Awesome.

Ludwig von Mises:

Consequently, a proposition of an aprioristic theory can never be refuted by experience. Human action always confronts experience as a complex phenomenon that first must be analyzed and interpreted by a theory before it can even be set in the context of an hypothesis that could be proved or disproved; hence the vexatious impasse created when supporters of conflicting doctrines point to the same historical data as evidence of their correctness. … Disagreements concerning the probative power of concrete historical experience can be resolved only by reverting to the doctrines of the universally valid theory, which are independent of all experience. Every theoretical argument that is supposedly drawn from history necessarily becomes a logical argument about pure theory apart from all history.

(Ludwig von Mises, “Epistemologial Problems of Economics”, Ch. 1, s. II.2)

J. Neil:

If Kevin’s theory could accurately describe price fluctuations in a free market, Kevin wouldn’t be making his living emptying bedpans for a living. He’d be a filthy rich Wall-Street broker.

1. Again. We don’t live in a free market.

2. And, now we have J. Neil Schulman, who claims to be an admirer of Ludwig von Mises, apparently objecting not only to the use of aprioristic theory in economics, but also believing that an accurate economic theory ought to produce quantitative predictions. Really, dude?

Do you know anything in particular about Ludwig von Mises’s economics? You just angrily dismissed to two of the three central ideas that von Mises is known for. (At least you didn’t bring up Kevin’s work on calculation problems in big corporations, which would have given you an opportunity to angrily dismiss the third.) All of which indicates to me that you are either ranting in utter ignorance, or else you just don’t give much of a damn about what’s true and what’s false, as long as you get to slam Kevin Carson in the process.

In either case, you ought to be embarrassed.