Wednesday 4 April 2012

Methodological Individualism

From http://en.wikipedia.org/wiki/Methodological_individualism
Methodological individualism is the theory that social phenomena can only be accurately explained by showing how they result from the intentional states that motivate the individual actors.[1] The idea has been used to criticize historicism, structural functionalism, and the roles of social class, gender roles, or ethnicity as determinants of individual behavior.[citation needed] It is promoted by the Austrian School of economics in interpreting economic developments.

Mark Blaug, known for his work on the history of economic thought, has criticized over-reliance on methodological individualism, "it is helpful to note what methodological individualism strictly interpreted ... would imply for economics. In effect, it would rule out all macroeconomic propositions that cannot be reduced to microeconomic ones, ... this amounts to saying goodbye to almost the whole of received macroeconomics. There must be something wrong with a methodological principle that has such devastating implications."[2]

OH THE HORROR! I cannot imagine how unsettling Mr Blaug must find such a dangerous notion.
I do feel sorry for such academic statist macro economists. Pity them as they whinge that the logical result of methodological individualism is the complete negation of any and all macro economic tampering. As if it were a bad thing! The presumption being that macro economic thought and state manipulation exist and therefore must be unquestionably both necessary and desirable. His other implication being that both him and the rest of em would be out of a job and out of their comfy world of power, influence and privilege. mind boggling.

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