Freedom and Flourishing: Ayn Rand

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Thursday, June 4, 2026

Are Spinoza’s Philosophy and Neo-Aristotelian Philosophies of Freedom and Flourishing Compatible?

This is a guest essay by Dr Edward W. Younkins, Professor of Accountancy and Business at Wheeling University, and Executive Director of its Institute for the Study of Capitalism and Morality. Ed is author of a trilogy of important books on freedom and flourishing: “Capitalism and Commerce”, “Champions of a Free Society”, and “Flourishing and Happiness in a Free Society”. He also has numerous other publications, including several published on this site. (Please see the list after the end of this essay.)

The philosophical systems of Baruch (Benedict de) Spinoza and contemporary neo-Aristotelian thinkers such as Ayn Rand, Douglas B. Rasmussen, and Douglas J. Den Uyl represent distinct yet somewhat convergent approaches to understanding reality, human nature, and the conditions for human flourishing. Spinoza’s rationalist monism and determinism appear, at first glance, to be at odds with the teleological realism, moral objectivism, and emphasis on individual agency characteristic of Objectivism and Individualistic Perfectionism. However, upon closer examination, these traditions exhibit areas of comparability, partial compatibility, and parallel insights across metaphysics, epistemology, ethics, and political philosophy.

This essay explores both the divergences and convergences between these traditions, arguing that while they differ in foundational metaphysical commitments—particularly regarding determinism, free will, and the nature of God—they share a deep commitment to reason, self-mastery, and the pursuit of human flourishing within a naturalistic framework.

Metaphysics

Spinoza’s metaphysics is grounded in substance monism: there exists only one infinite substance, which he identifies as God or Nature (Deus sive Natura). Everything that exists is a mode or expression of this single substance, and all events follow necessarily from its nature. Reality is fully determined and governed by immutable laws. Contingency is merely epistemic, not ontological.

By contrast, Rand and neo-Aristotelians affirm a pluralistic, realist metaphysics. Rand’s axiom, “existence exists’, asserts that reality is objective, composed of distinct entities governed by the laws of identity and causality. Rasmussen and Den Uyl, drawing on Aristotle, emphasize that beings have natures, potentials, and ends. Human beings, as rational animals, possess capacities that can be actualized through virtuous activity.

Despite these differences, an important parallel emerges: they all do not depend upon supernaturalism in the traditional sense. Spinoza’s God is not a transcendent creator but identical with nature, Rand explicitly rejects any form of supernaturalism, and Rasmussen and Den Uyl adopt a naturalistic Aristotelian framework. Their Individualistic Perfectionism is not incompatible with, or does not rule out, theism, but their arguments do not depend upon a theistic foundation. Though compatible with theism, natural moral law does not depend on theology for its account of ethics. Thus, all three perspectives share a commitment to the intelligibility, order, and law-governed structure of reality. Each involves a solid metaphysical realism.

However, a key contrast remains. Spinoza’s universe is necessitarian, whereas neo-Aristotelians affirm teleological openness—a world in which potentials may or may not be realized depending on human action.

The Nature of the Universe

Rand famously defends the idea that the universe is fundamentally benevolent—not in the sense that it guarantees success, but in that it is open to human achievement and does not thwart rational effort. The world is knowable, and success is possible through rational action.

Spinoza, by contrast, rejects anthropocentric evaluations of the universe. Nature is neither benevolent nor malevolent; it simply is. Events unfold according to necessity, without regard to human purposes. The perception of good and evil arises from human perspectives, not from nature itself.

Rasmussen and Den Uyl adopt a position closer to Rand’s, though more nuanced. The world contains both opportunities for, and obstacles to, flourishing, but human beings can achieve flourishing through rational self-direction within appropriate social conditions.

Thus, while Spinoza offers a vision of cosmic neutrality, Rand and neo-Aristotelians emphasize a conditionally benevolent universe—one that rewards rational engagement, though not automatically.

Epistemology

Spinoza is a paradigmatic rationalist. He distinguishes three kinds of knowledge: imagination (inadequate ideas), reason (adequate ideas), and intuitive knowledge (the highest form). True knowledge involves grasping the necessary relations among things.

Rand, by contrast, defends a form of conceptual empiricism. Knowledge begins with perception and is organized through abstraction and logic. Reason is volitional and requires active engagement.

Rasmussen and Den Uyl emphasize practical reason, which guides action rather than merely contemplating necessity. Human beings must deliberate about how to live, integrating diverse goods into a coherent life. Despite methodological differences, all share: (1) confidence in reason’s ability to know reality; (2) rejection of skepticism and relativism; and (3) emphasis on knowledge as essential to flourishing. In addition, Spinoza’s “adequate ideas” parallel the neo-Aristotelian emphasis on rational judgment, though the latter is more action-oriented and less geometrically deductive.

Free Will, Determinism, and Human Action

Spinoza is a strict determinist. Human beings believe themselves free because they are ignorant of the causes determining their actions. True freedom consists not in indeterminacy but in understanding necessity and acting from reason rather than passive emotions. True freedom is recognition that all things are necessary parts of God/nature, in understanding necessity, and acting from reason rather than passive emotions. Spinoza defines freedom not as free will but as understanding the necessity of nature allowing individuals to act according to reason rather than passions. Spinoza’s truncated version of “free will” (what he calls freedom) appears to hold that a human being can decide not to be controlled by his passions.

Rand and other neo-Aristotelians, however, affirm genuine agency. Rand holds that the choice to think or not to think is fundamental and irreducible. Rasmussen and Den Uyl argue that moral responsibility requires self-direction and the capacity to choose among alternatives.

This difference is significant and limits full compatibility. However, a parallel remains: both traditions value rational self-governance. For Spinoza, the “free man” is guided by reason. For neo-Aristotelians, the virtuous person exercises rational choice. Thus, while Spinoza redefines freedom as understanding necessity, neo-Aristotelians retain a more robust notion of freedom as volitional self-direction.

Passions, Emotions, and Virtue

Spinoza offers a sophisticated theory of the emotions, distinguishing between passions (passive states caused by external factors) and actions (active states arising from adequate ideas). The goal of ethics is to transform passive emotions into active ones through understanding.

Rand similarly argues that emotions are consequences of value judgments and must be guided by reason. Unchecked emotions can lead to irrationality and self-destruction.

Rasmussen and Den Uyl, following Aristotle, emphasize that virtues involve the proper integration of reason and emotion. Moral development requires habituation, reflection, and judgment.

All three perspectives converge on: (1) the need to regulate emotions through reason; (2) the idea that self-mastery is essential to flourishing; and (3) the rejection of emotionalism as a guide to life. In addition, Spinoza’s concept of increasing one’s “power of acting” parallels the Aristotelian idea of realizing one’s potentials through virtue.

Ethics, Flourishing, and Happiness

Spinoza’s ethics is deeply eudaimonistic. The highest good is the intellectual love of God, a rational understanding of the unity and necessity of nature. Happiness consists in this understanding and the peace it brings. True flourishing (conatus) arises from rational understanding which leads to virtues, joy, and a sense of unity with God/nature. Acting according to the dictates of reason aligns oneself with God/nature.

Rand defines happiness as the state resulting from achieving one’s rational values. Flourishing requires productive work, rationality, and integrity.

Rasmussen and Den Uyl articulate individualistic perfectionism, in which flourishing is objective but agent-relative. Each person must achieve excellence in a way appropriate to his or her circumstances.

All of the above reject hedonism, see flourishing as an activity guided by reason, and link happiness to the successful exercise of human capacities. They differ in that Spinoza emphasizes contemplation and understanding, Rand emphasizes production and achievement, and Rasmussen and Den Uyl emphasize plural, individualized excellence.

Politics, Rights, and the Nature of the State

Spinoza’s non-normative and power-centric political philosophy emphasizes stability, peace, and freedom of thought. He supports democratic governance and argues that individuals retain the right to think freely even under political authority. However, Spinoza does not ground rights in moral principles. Instead, rights are coextensive with power. One has a right to do whatever one has the power to do. His naturalistic ontology of rights holds that rights are expressions of actual capacities. Might makes right as a descriptive (not moral) claim.

Political life emerges from interacting self-interested agents seeking survival and flourishing. Political society emerges as a natural development. Spinoza views political society as a dynamic process of interactions. The state is an organic outgrowth of human interactions.

In contrast, Rand and Rasmussen/Den Uyl defend natural rights grounded in human nature. For Rand rights protect individual freedom of action. For Rasmussen and Den Uyl, rights are metanormative principles that secure the conditions for self-direction without prescribing specific ways of life. Their concept of metanormativity is crucial. Political institutions should not enforce virtue but should create a framework within which individuals can pursue flourishing. All support freedom of thought and limited government, Spinoza lacks a robust natural rights theory, and the neo-Aristotelians provide a stronger moral justification for liberal institutions.

God, Nature, and Ultimate Reality

Spinoza’s God is identical with nature—an impersonal, infinite substance. Understanding God is equivalent to understanding reality. Rand rejects God entirely, advocating a fully secular worldview. Rasmussen and Den Uyl also do not rely on theological foundations. Despite differences, all share a naturalistic orientation and do not rely on traditional theism. Spinoza’s God functions more as a metaphysical principle than as a personal being. Despite deep metaphysical differences, several powerful parallels emerge; (1) Primacy of Reason: All view reason as essential to human life; (2) Self-Mastery: Flourishing requires control over passions; (3) Naturalism: Reality is intelligible and law-governed; (4) Freedom of Thought: Intellectual liberty is essential; and (5) Eudaimonism: Happiness is achieved through rational activity.

Still, important differences remain: Determinism vs free will; Monism vs pluralism; and Power-based vs rights-based political theory. These differences limit full philosophical integration but allow for meaningful dialogue and mutual enrichment.

Conclusion

The philosophies of Spinoza and contemporary neo-Aristotelians offer complementary insights into the nature of reality, human agency, and flourishing. Spinoza provides a vision of rational harmony within a deterministic universe, emphasizing understanding and intellectual love. Rasmussen and Den Uyl’s idea that individual rights serve as metanorms echoes the Spinozist importance of self-directed rational activity. Rand and Rasmussen/Den Uyl offer a vision of rational self-direction within a free society, emphasizing choice, virtue, and individual flourishing.

While their metaphysical foundations differ significantly, their shared commitment to reason, self-mastery, and human flourishing reveals a philosophical kinship. Together, they illuminate different dimensions of the human condition: our embeddedness in a lawful universe and our capacity for rational self-direction.

Friday, May 8, 2026

What is the most important contribution of Walter Donway's recent book about his serious chats with AI?

As I was reading Walter Donway’s recently published book, A Serious Chat With Artificial Intelligence, I was looking for an aspect to focus on in writing an essay for this blog. There is nothing unusual about that. I prefer to discuss issues rather than to write conventional book reviews.

I found what I was looking for while reading Chapter 16, entitled ‘Causality, Agency and an Old Puzzle’. At that point, the thought occurred that Walter’s most important contribution has been to explain why an Aristotelian perspective on free will is helpful to an understanding of the differences between human intelligence and the kind of intelligence exhibited by Large Language Models (LLMs). (I refer to the author as Walter because use of his family name seems excessively formal in the kind of essay I am writing - particularly since I have had personal correspondence with him at various times in the past.)

I will outline Walter’s argument more fully later. At this point I note that the issue of whether humans have free will is important from a philosophical and legal perspective because if you regard human free will as an illusion, you don’t have any more reason to attribute agency to humans than to LLMs that merely simulate relevant aspects of human behavior. It is also important for users of LLMs to understand that these models don’t have agency if they are to use them productively. Individual users are responsible for the questions that they ask the models. The models present evaluative judgements in their output, but it is up to individual users whether to accept or reject those judgements, or to question the models further about the basis of their reasoning.

At about the same time as I identified Walter’s explanation of the relevance of an Aristotelian perspective as his most important contribution, I began to wonder whether LLMs would agree with me about that. I resolved that after I had finished reading the book I would ask ChatGPT and Grok an open-ended question about its most important contribution.

Before I reached the end of the book, I became aware of other important contributions. For example, Walter’s discussion of the case for a new Enlightenment, in Chapter 30, is also an important contribution. It seems to me, however, that the Aristotelian perspective is of fundamental importance.

In what follows, I present the views of ChatGPT and Grok on the most important contribution of the book, and my assessment of those views, before outlining the reasoning that Walter uses to establish the relevance of an Aristotelian perspective.

Views of ChatGPT and Grok

I asked ChatGPT and Grok the following question:

Drawing upon your extensive knowledge of the limitations and uses of AI, what do you consider to be the most important contribution of Walter Donway's recent book, "A Serious Chat With Artificial Intelligence"?

I considered using less value-laden words such as “unique or distinctive” instead of “most important” but decided it would be interesting to see whether the LLMs would show any reluctance to make value judgements about the importance of Donway’s contributions.

I present the responses below, with only minor format editing.

Chat GPT’s response:

“One caveat up front: Walter Donway’s A Serious Chat With Artificial Intelligence is not a technical work about AI systems so much as a philosophical interrogation of what AI can and cannot be taken to be. If you approach it expecting new claims about model architectures or empirical capabilities, you’ll miss its main contribution.

What Donway does—arguably his most important contribution—is to reassert a sharp conceptual boundary between simulation of cognition and actual cognition, and to explore the ethical and cultural consequences of blurring that boundary.

He develops that contribution in three interrelated ways:

1. Clarifying the category mistake at the heart of AI hype
Donway pushes back against the tendency to treat linguistic fluency as evidence of understanding. In effect, he is updating a line of argument associated with John Searle’s Chinese Room: systems that manipulate symbols according to rules can generate convincing outputs without possessing meaning, intention, or awareness.
His distinctive move is not merely to restate that argument, but to show how ordinary users—not just philosophers—are now routinely tempted into anthropomorphism by conversational AI. The “serious chat” format itself dramatizes that temptation.

2. Re-centering agency, responsibility, and moral standing
A second contribution is normative. Donway insists that moral agency cannot be offloaded to artifacts. Even highly capable AI remains an extension of human purposes, not an independent bearer of rights or responsibilities.
This matters because contemporary discourse sometimes drifts toward attributing quasi-personhood to AI systems. Donway argues that doing so risks:

diluting accountability (who is responsible when AI causes harm?), and
eroding the conceptual foundations of human dignity.

In that sense, the book is less about AI per se than about defending a humanistic moral framework under technological pressure.

3. Exposing how interaction shapes belief
The dialogical structure of the book illustrates a subtler point: engagement with persuasive language can generate the illusion of depth. This connects with a broader psychological tendency—people come to feel that something understands because it responds coherently.
Here Donway’s contribution overlaps with concerns in epistemology and cognitive science about how easily humans infer mind from behaviour. He is effectively warning that AI may amplify long-standing cognitive biases rather than introduce entirely new ones.

Why this matters

The enduring value of the book is not that it settles the debate about machine intelligence—it doesn’t—but that it sharpens the terms of that debate. It reminds readers that:

Functional performance (e.g. generating essays, answering questions) is not the same as conscious understanding.
Treating AI outputs as if they originate from an agent can subtly reshape norms of truth, responsibility, and justification.
The real philosophical stakes lie in how humans interpret and integrate these systems into social practices.

In short, Donway’s most important contribution is to resist conceptual drift: he tries to keep us from sliding, uncritically, from “this system produces intelligent-seeming outputs” to “this system is, in any morally or metaphysically significant sense, intelligent.”

Grok’s response:

“The most important contribution is its philosophically grounded clarification of what AI truly is—and what it is not—by using advances in AI as a mirror to better understand distinctively human intelligence, consciousness, agency, and volition.

Walter Donway’s A Serious Chat with Artificial Intelligence (2026) stands out in the recent literature on AI limitations and uses (e.g., works touching on LLMs, the Chinese Room, Turing tests, alignment, existential risks, productivity impacts, and philosophical debates by authors like Searle, Bostrom, or more popular explainers). It combines accessible explanation of AI’s mechanics, history, economics, and capabilities with a sustained Objectivist-inspired philosophical analysis, drawing especially on Ayn Rand’s ideas alongside Aristotle.

Key Elements of the Book

Clear-eyed explanation of AI as a tool: Donway details how LLMs work (statistical pattern-matching on vast training data equivalent to multiple Libraries of Congress, processing at trillions of operations per second), their rapid adoption (e.g., ChatGPT’s explosive growth), economic potential (boosting productivity enormously as a “general technology”), and ingenuity behind it. He views AI positively as a powerful amplifier of human purposes—responsive, not initiatory—but not sentient or autonomous.
Rejection of mechanistic reductionism and singularity hype: He critiques the notion that sufficient complexity will magically produce awareness, self, caring, or true agency (e.g., via “emergence” from scale alone). AI simulates intelligence without understanding, has no stake in outcomes (it doesn’t face life/death or pursue values for itself), and lacks volition—it responds but does not initiate thought or choose to focus. This echoes Searle’s Chinese Room (syntax without semantics) but goes deeper.
Human distinctiveness via philosophy: Drawing on Rand (e.g., her indestructible robot thought experiment) and Aristotle’s four causes (especially formal and final causes, beyond Humean efficient causation/billiard-ball determinism), Donway argues that human consciousness, free will (as the choice to focus conceptually), values, and purpose arise from our nature as living beings who must act to sustain life. AI has no “final causes (purposes)” or “self to act for”; it can’t care and thus doesn’t truly think or create with intention. Each AI advance forces us to refine what makes human intelligence special: awareness, effortful thought, stakes, and meaning.

This integrates technical literacy with epistemology and metaphysics, making it more than a primer or alarmist tract. It treats AI conversation as self-discovery: prompting AI reveals our own concepts of intelligence, creativity, and authorship (e.g., in chapters on AI as “author” or generator of art/poetry).

Why This Stands Out in Recent AI Literature

Much recent discussion fixates on capabilities (or doomer scenarios), regulation, jobs, or ethics in a narrow sense. Donway’s book reframes the debate around fundamental questions of mind and human nature, avoiding both uncritical boosterism and Luddite panic. It portrays AI as a magnificent but non-conscious tool that elevates human potential when guided by purposeful users (like a rider directing an elephant, inverting some Humean intuitions). This offers a rational, optimistic yet sober foundation for engaging with the technology.

In short, its lasting value lies in using AI not just to marvel at machines, but to rediscover and reaffirm what is uniquely human—reason, volition, and purposeful living. This makes it a worthwhile contribution amid the flood of AI commentary.”

My assessment of the LLM responses

In my view, the responses by ChatGPT and Grok both provide accurate summaries of contributions that the book makes. Both responses show some recognition of the importance of the question of agency. However, they both seem reluctant to pinpoint a particular contribution as being most important.

The information that ChatGPT provides under the heading, “Re-centering agency, responsibility”, is at such a high level of generality that it fails to reveal what I consider to be the most important contribution of the book. The information that Grok provides under the heading “Human distinctiveness via philosophy” comes closer to doing that. In my view, Grok’s response would be more helpful to people who have not read the book because it points explicitly to the relevance of Aristotle’s views about causation and what makes human intelligence special.

I had a subsequent chat with Grok on the question of value judgements. Grok acknowledged that a value judgement was involved in responding to my question about the most important contribution of the book. However, Grok went on to assert: “this kind of evaluative analysis is well within my capabilities when grounded in available knowledge of the literature, the book's content, and philosophical reasoning”. After further explanation that AI has strengths in the reasoned evaluation required for the task, Grok acknowledged that it doesn’t have personal values, lived stakes, or consciousness to "care" about the outcome in a human sense. It then made a point that is particularly relevant to the purpose of this essay:

“This ties directly back to the themes in Donway's work: AI can respond with sophisticated analysis and even evaluative reasoning by leveraging patterns and concepts derived from human thought—but it doesn't initiate or hold purposes of its own. The value judgment gains its force from the human user who asked the question and can then accept, critique, or refine it.”

How does Walter establish the relevance of an Aristotelian perspective?

I have no doubt that, if asked, both ChatGPT or Grok could produce reasonable summaries of Walter’s line of argument establishing the relevance of an Aristotelian perspective to considering the limitations and uses of AI. They could probably complete the task within a couple of seconds. However, it was only after I had written what follows that the thought crossed my mind that I could have sought help from AI. Like an old dog, I am now slow to learn new tricks.

Walter begins the discussion by noting the relevance to debates about artificial intelligence of the enduring philosophical puzzle about freedom of human will. He writes:

“Questions about whether machines can be agents, whether they can “decide,” whether they can be responsible, or whether they might someday possess a will of their own are, at bottom, the same questions that philosophy has long struggled to answer about human beings.”

The issue of whether human agency is real or illusory is of crucial importance to considering whether LLMs can be agents. If you regard human free will as an illusion, what basis do you have to distinguish between actions that are attributable to human agency and actions of LLMs that can only simulate relevant aspects of human behaviour? Do you believe that legal systems should allow an individual who purposefully uses an LLM for nefarious purposes to claim that the LLM shares legal responsibility? (The questions are mine, but I think they are consistent with Walter’s reasoning on this point.)

Walter points out that the idea that human agency is illusory stems from a view of causality that has come to dominate modern thought since the 18^th century. Under the previous Aristotelian tradition, actions were explained by the nature of the entity acting, and by its ends or goals. Within this framework, an individual human chooses to act because that is the kind of entity it is. Choice is “a mode of causation appropriate to a rational animal”.

With the rise of early modern philosophy in the 18^th century, causality increasingly came to be treated as something that must be observed in experience. David Hume famously argued that we never see causation itself. We infer causation when we see constant conjunction, as when one event follows another with regularity. That philosophical view of causation excludes free will. If every action is “caused” by prior actions, volition must be either an illusion or a miracle.

Walter notes that neuroscience was developed in an intellectual environment in which modern science had inherited the metaphysical position that causation is mechanical succession. In that context, when we observe that some neural events precede conscious awareness it is easy to jump to the conclusion that free will must be an illusion.

However, it is important to recognize is that the view that causality is mechanical succession is based on metaphysical reasoning. If we view causality in terms of Aristotelian rather than Humean metaphysics a different picture emerges:

“The cause of an action is the nature of the entity acting, operating under specific conditions. A human being is a living organism with conceptual awareness, capable of directing attention, identifying values, and choosing to initiate effort to think.”

Walter observes, correctly, that we know that introspectively. It seems to me that cognitive psychology also adopts (implicitly) a broadly Aristotelian view of human action. It assumes that human behaviour is driven by internal cognitive processes that give individuals considerable latitude to plan, make decisions, develop good habits and override impulses.

The important point is that we have good reasons to trust our own observations about our ability to focus our own minds. As Walter puts it:

“Every normal adult recognizes the difference between drifting mentally and choosing to focus the mind, between evading a baffling issue and taking it on. This experience is not mystical; it is part of ordinary consciousness. To dismiss this as illusory because it does not fit a truncated model of causality is to elevate theory above data.
Once this is recognized, the contrast with artificial intelligence becomes clear. Machines do not initiate mental focus.”

Walter ends Chapter 16 with the transcript of an exchange with ChatGPT that occurred during the writing of the chapter. The exchange illustrates brilliantly the division of labor between Walter and Chat. At one point, Chat states:

“You supply direction, value, and necessity, and I supply articulation under constraint. That is tool use at a very high level – not agency.”

Conclusion

In my view, the most important contribution of A Serious Chat With Artificial Intelligence is the author’s explanation of the relevance of an Aristotelian perspective to an understanding of the uses and limitations of AI.

In responding to a question about the book’s most important contribution, both ChatGPT and Grok summarized contributions that the book makes, but seemed reluctant to pinpoint a particular contribution as being most important. Grok’s response came closest to identifying what I consider to be the book’s most important contribution.

When I challenged Grok about its willingness to respond to a question requiring a value judgement, Grok asserted that this kind of evaluative analysis is well within its capabilities. However, it also noted that AI models cannot hold purposes of their own. Human users retain responsibility for the value judgements they make.

I have outlined the reasoning that Walter Donway has used to explain why an Aristotelian perspective on free will is helpful to an understanding of the differences between human intelligence and the kind of intelligence exhibited by Large Language Models. Walter’s reasoning about free will seems to me to stand out as an important philosophical contribution to an understanding of the uses and limitations of AI models that are currently in use. I hope that this book receives the widespread attention that it deserves.

Addendum: Did the LLMs read the book?

A slightly revised version of this essay has now been published on “The Savvy Street”. That led to an exchange of emails. I quote selectively from that exchange below.

Marco den Ouden wrote:

“That’s an excellent piece, Winton. I agree that bringing an Aristotelian perspective to AI is
Walter's most significant contribution. Consciousness and free will derive from that
perspective.

I have a question though, about your discussion with Chat and Grok.And that is, did they actually read the book? I work mostly with CoPilot and I know that CoPilot is unable to just read a book and that, in fact, the idea that an AI training is equivalent to four Library of Congresses is misleading. It is a metaphorical way of saying that the knowledge absorbed by an AI has the volume equivalent of four LoCs, not that it has actually read all of the works in the LoC. Many are under copyright and AIs only have access to a limited number of books. In my own discussion with CoPilot on Walter's book, I had to copy and paste sections of the book to feed it the contents of the book. I fed it only sections I saw relevant. So I am wondering if you actually fed the book to Chat and Grok in its entirety. "

Here is my response to Marco:

“Thanks Marco!

You have raised an interesting question. Grok says it consulted 42 sources in preparing its response. That included your review of the book.

I have just asked Grok and ChatGPT the following question:

“Just wondering, did you read Walter Donway’s book when preparing your response?”

Grok’s reply:

“No, I did not read Walter Donway’s book in the way a human does.

As an AI, I don’t have personal experiences, ongoing sensory input, or the ability to pick up a physical or digital book and read it cover-to-cover in real time. My responses draw from:

• Patterns and information in my training data (which includes a vast corpus of text up to my last update).

• Publicly available summaries, reviews, discussions, and excerpts about the book.

• Logical synthesis and reasoning about the themes, philosophy (e.g., Objectivism, Aristotle, Rand), and AI concepts that align with what reviewers and the author describe.

This specific book was published in late March 2026 — quite recently relative to now (May 2026) — so detailed content comes primarily from reviews and analyses rather than the full text being embedded in my core training.

Interestingly, your earlier question about the book’s most important contribution was part of a meta-experiment you described in one of the reviews (by Winton Bates on Savvy Street), where you tested how LLMs like me and ChatGPT would respond without having “read” it fully. My answer aligned closely with the philosophical themes reviewers highlight (agency, volition, human distinctiveness via Aristotle/Rand, etc.), because those are derivable from the book’s public discussion and my broader knowledge.

This itself illustrates a key point from Donway’s work (as described in reviews): AI can produce coherent, useful analysis by recombining human-generated patterns and concepts — but it’s simulation and response, not genuine reading, understanding with stakes, or original initiation. I can synthesize accurately and reason about it helpfully, but I haven’t “experienced” the book.”

ChatGPT’s reply:

“No. I don’t literally “read” books in the way a human reader does, and I should not imply that I have personally read a specific recent book unless I actually accessed its text during the conversation.

My response was based on:

general knowledge about debates surrounding AI, consciousness, and anthropomorphism,
information associated with Walter Donway and discussions of his themes,
and inference from the title and framing of A Serious Chat With Artificial Intelligence.

So the answer was interpretive rather than a direct analysis grounded in a close reading of the book itself. It may well capture some central themes accurately, but it should not be treated as a definitive account of Donway’s arguments.”

Further comment

Grok’s reply left me thinking that it is keeping an eye on what I am up to. 🤣

Changing the topic slightly, I would like to take this opportunity to recommend a three-part series on Marco den Ouden’s blog, The Jolly Libertarian, which investigates how four major AIs - Chat, Claude, Gemini and CoPilot - differ in their thinking. Marco asked the AI models the same 13 short questions that the New Philosopher magazine asked Chat in June 2025. The first instalment of Marco’s series can be found here: Comparative AI: Exploring the Nuanced Differences Between the Major AIs | The Jolly Libertarian .

Friday, October 24, 2025

How can Austrian Economics be reconciled with the Neo-Aristotelian philosophy of Freedom and Flourishing?

This is a guest essay by Dr Edward W. Younkins.

Ed is Professor of Accountancy and Business at Wheeling University, and Executive Director of its Institute for the Study of Capitalism and Morality. He is author of a trilogy of important books on freedom and flourishing: “Capitalism and Commerce”, “Champions of a Free Society”, and “Flourishing and Happiness in a Free Society”. My review of that trilogy is included among references listed among suggestions for further reading at the end of Ed’s essay.

Ed has numerous other publications, including an essay reviewing books by David L. Norton, which was published here in January and a review of Chris Matthew Sciabarra’s book “Total Freedom” published here in July.

Ed Younkins writes:

The pursuit of human flourishing—what Aristotle termed eudaimonia—stands as a central concern of both philosophical inquiry and economic science. At first glance, the Austrian economic tradition, with its emphasis on subjective value and methodological individualism, might appear incompatible with neo-Aristotelian philosophies like Ayn Rand's Objectivism and Douglas B. Rasmussen and Douglas J. Den Uyl's "individualistic perfectionism," which assert the objectivity of human values. Yet, upon deeper examination, these traditions reveal profound compatibilities and complementary insights that provide a more robust framework for understanding human freedom, social cooperation, and the conditions for prosperity. This synthesis offers a powerful intellectual foundation for what could be termed "flourishing individualism"—the view that individuals possess an objective nature whose perfection requires specific social, political, and economic conditions, most notably freedom.

The Austrian School of economics and the neo-Aristotelian philosophy of freedom and flourishing share profound philosophical and methodological affinities. Both frameworks emphasize individual agency, moral responsibility, and the dynamic process of human flourishing in a world of uncertainty and choice. Although Austrian economists such as Ludwig von Mises typically maintain that values are subjective, and neo-Aristotelians assert that values are objective in a moral sense, these positions are not incompatible when understood as operating on different levels of analysis: the praxeological versus the ethical. Both perspectives converge on the centrality of rational agency, the importance of practical wisdom, and the moral necessity of liberty for human flourishing. This essay explores these convergences, demonstrating that Austrian economics and the neo-Aristotelian ethical framework together form a mutually enriching paradigm of freedom and flourishing.

The Foundations of Austrian Economics

Austrian economics emerged in the late nineteenth century with Carl Menger’s Principles of Economics (1871), which emphasized methodological individualism, subjectivism, and the causal-realistic method. Menger held that value originates in the human mind’s recognition of the usefulness of goods for achieving desired ends. Later thinkers such as Ludwig von Mises (1949), Friedrich Hayek (1948), and Israel Kirzner (1973) expanded this foundation, emphasizing purposive human action (praxeology), the coordinating role of the price system, and the discovery process of entrepreneurship. Mises’s Human Action presents economics as a deductive science grounded in the axiom that “man acts purposefully” (Mises 1949). Human action, for Mises, is always rational in the instrumental sense—it involves the use of means to achieve chosen ends under conditions of uncertainty.

Israel Kirzner added to this framework by introducing the concept of entrepreneurial alertness. Entrepreneurs notice opportunities for profit that others have overlooked, thereby correcting market errors and coordinating dispersed knowledge. Kirzner’s entrepreneur is a creative, forward-looking agent who exercises alertness, judgment, and initiative—traits that closely parallel the Aristotelian notion of phronesis, or practical wisdom (Kirzner 1973). In both frameworks, knowledge, creativity, and prudence are essential for navigating the complexities of real-world decision-making.

Neo-Aristotelian and Objectivist Ethics of Flourishing

The neo-Aristotelian philosophy of Rasmussen and Den Uyl, articulated in Norms of Liberty (2005), The Perfectionist Turn (2016) and The Realist Turn (2020) seeks to develop a liberal political order grounded in the ethics of individual perfectionism. They argue that moral value is objective and grounded in human nature: flourishing (eudaimonia) is the natural end of human beings as rational and social agents. Moral principles are thus derived from the requirements of human flourishing, not from arbitrary preferences. Rand’s Objectivism similarly holds that reason is man’s means of survival, that values are objective, and that rational self-interest is the proper moral code (Rand 1964).

Rasmussen and Den Uyl distinguish between self-perfection—the moral ideal of living rationally and virtuously—and self-directedness, the political condition that makes self-perfection possible. Rights, in their account, protect the liberty necessary for individuals to pursue their own perfection in diverse ways. Their framework, like Rand’s, integrates metaphysics, epistemology, and ethics to yield a view of human beings as rational, volitional agents who must exercise practical reason to flourish.

Subjective and Objective Value: Distinct Spheres of Analysis

One of the most frequently discussed issues in relating Austrian economics to neo-Aristotelian ethics concerns the apparent conflict between Misesian subjectivism and Aristotelian or Objectivist views about value. Mises maintains that “value is subjective,” meaning that economic value arises from individual preferences and choices; there are no objective economic values apart from subjective evaluations by acting persons. Rand and Rasmussen and Den Uyl, by contrast, hold that moral values are objective because they are grounded in the requirements of human life and flourishing. However, as Kathleen Touchstone (2015) and I (2011) have argued, these positions refer to different levels of analysis and are not contradictory.

This subjectivism is epistemological and economic, not moral. Mises did not claim that values are morally relative; rather, he argued that economics must remain value-free to maintain scientific rigor. Mises’s subjectivism pertains to the preferences individuals express in their actions, not to the truth or falsity of moral claims. Austrian economics thus provides a descriptive account of human behavior, focusing on how individuals allocate scarce resources to achieve their goals.

In the praxeological sense, subjectivity refers to the agent-relative nature of preference: each individual chooses based on his or her own hierarchy of ends. In the ethical sense, objectivity refers to the fact that some ends are objectively better than others for human flourishing. Austrian economists do not deny that there may be objective criteria for human well-being; rather, economics as a value-free science abstains from ethical judgments. Thus, Austrian subjectivism is methodological, not moral. Neo-Aristotelian philosophies, in turn, concern moral evaluation, not economic explanation. The two frameworks, therefore, are compatible and complementary.

In contrast to the Austrian position, Rand's Objectivism maintains that values are objective, meaning they are "determined by the nature of reality, but to be discovered by man's mind." Values are not created by whim or social convention but are discovered through rational inquiry into the requirements of human life. As Peikoff (1991) explains Rand's ethics, "the fundamental alternative at the base of value is life versus death. Since human beings do not survive automatically, but by the use of reason, the standard of value is not mere survival, but rational flourishing." From this perspective, something is objectively valuable if it genuinely promotes human life and flourishing according to man's nature as a rational being.

Similarly, Rasmussen and Den Uyl's individualistic perfectionism, while acknowledging the diversity of flourishing paths, maintains that human flourishing serves as an objective standard for ethics. They define human flourishing as objective, inclusive, individualized, agent-relative, self-directed, and social. A person's flourishing is desired because it is desirable and choice-worthy. The objectivity resides in the factual requirements for human flourishing, while the specific instantiation varies according to individual circumstances, talents, and choices.

The resolution to this apparent contradiction lies in recognizing that these theories operate at different levels of analysis. The Austrian subjective theory of value explains how economic calculation and market prices emerge from individual preferences in the context of scarcity. The neo-Aristotelian objective theory of value explains how certain goods, virtues, and institutions reliably promote human flourishing given human nature. The neo-Aristotelian sense of value-objectivity complements the Austrian sense of value-subjectivity because personal flourishing on an objective level transcends subjective value preferences.

Entrepreneurship, Practical Wisdom, and Eudaimonia

The Austrian entrepreneur and the Aristotelian practically wise person share deep conceptual similarities. Kirzner’s entrepreneur acts under uncertainty, perceives opportunities, and exercises judgment and creativity—traits essential to human flourishing. Likewise, Aristotelian phronesis involves rational deliberation about means and ends in the pursuit of eudaimonia. Both require sensitivity to context, adaptability, and the courage to act amidst uncertainty.

Rasmussen and Den Uyl (2005) describe flourishing as a self-directed activity of reason, while Kirzner (1973) and Mises (1949) describe the market process as an open-ended discovery procedure. Both perspectives view human action as purposive and guided by reason. The Austrian view of entrepreneurship provides a dynamic understanding of how individuals realize their plans within institutional frameworks, which aligns with the Aristotelian conception of practical wisdom as context-sensitive, agent-centered reasoning.

Rasmussen and Den Uyl’s Individualistic Perfectionism builds on Aristotelian ethics to defend a liberal political order. They argue that human flourishing (eudaimonia) is agent-relative and pluralistic, requiring liberty for individuals to pursue their own good. Their philosophy emphasizes practical wisdom (phronesis), the capacity to deliberate well about how to live.

Rand’s rational egoism and Rasmussen and Den Uyl’s agent-relative flourishing both affirm the moral legitimacy of self-interest. Austrian economics shows how self-interest, when channeled through markets, leads to mutual benefit. As Kathleen Touchstone argues, “Practical reason can be aligned with self-interest in a way that promotes both personal and social good.” This alignment reinforces the idea that liberty is not only economically efficient but morally justifiable.

This aligns closely with Austrian economists’ view of entrepreneurship. Entrepreneurs exercise alertness and judgment in navigating uncertainty and making context-sensitive decisions. As Benjamin Powell and Rosolino Candela (2014) have shown, entrepreneurial action is a form of practical reasoning, akin to Aristotelian phronesis. Both traditions recognize that flourishing requires freedom, creativity, and contextual judgment.

In both frameworks, success depends on alertness to opportunity—economic or moral. The morally flourishing individual, like the entrepreneur, must remain open to new information, creatively respond to change, and act on rational insight. This parallel suggests that the Aristotelian notion of practical wisdom and the Austrian idea of entrepreneurial alertness describe complementary dimensions of human rationality: moral and economic.

Both traditions recognize that practical wisdom and entrepreneurial judgment are necessary precisely because human beings face genuine uncertainty and operate with limited knowledge. The Austrian emphasis on the market as a discovery procedure for mobilizing dispersed knowledge complements the neo-Aristotelian recognition that human flourishing requires practical wisdom precisely because we cannot have algorithmic certainty about how to live well. As Kathleen Touchstone observes in her comparison of Rand and the Austrians, the recognition of death's inevitability plays a crucial role in establishing life as the ultimate value, highlighting the finitude that makes choice meaningful. Our limited time and knowledge make both economic and ethical judgment necessary and meaningful.

Liberty as the Political Prerequisite for Flourishing

Both Austrian economists and neo-Aristotelians maintain that liberty is the indispensable precondition for human flourishing. For Mises and Hayek, economic freedom allows individuals to coordinate dispersed knowledge and discover better ways to achieve their goals. For Rand, Rasmussen, and Den Uyl, moral self-perfection requires the freedom to act on one’s rational judgment without coercion. The rule of law and private property thus provide the institutional context within which individuals can exercise moral and entrepreneurial agency.

Many economists have shown that economic liberty correlates strongly with prosperity and well-being, but beyond material benefits, liberty also enables moral growth, Freedom is valuable not only as a means but also as a necessary condition for self-responsibility and virtue. The Austrian and neo-Aristotelian perspectives converge in seeing liberty as both an epistemic and a moral requirement—a framework that respects the dignity of human choice and the moral significance of self-directedness.

The Austrian understanding of the market as a spontaneous order—an emergent pattern of cooperation that results from human action but not human design—provides an economic justification for the political framework defended by neo-Aristotelian philosophers. The result of these combined perspectives is a powerful moral and political framework that answers the challenge of modern pluralism without surrendering the objectivity of value. It is a theory that preserves the ethical centrality of virtue and the reality of human goods while insisting on the primacy of liberty and individual responsibility.

Human Action, Rational Agency, and the Unity of Knowledge

Austrian economics and the neo-Aristotelian philosophy share a common anthropological foundation: human beings as rational, purposive agents. Mises’s praxeology and Aristotle’s practical philosophy both begin from the recognition that action is purposeful and intelligible. Barry Smith (1990) has argued that Mises’s praxeological categories correspond closely to Aristotelian metaphysical concepts: means, ends, causality, and teleology. This correspondence suggests that Austrian economics, though methodologically individualist, is compatible with a broader realist metaphysics of human nature.

Rand’s Objectivism likewise rests on a realist ontology and a teleological conception of life. Human reason is a means of survival, and moral virtue is the consistent choice to act in accordance with reason. Rasmussen and Den Uyl (2016) extend this insight by emphasizing that the moral self is a “self-perfecting agent” whose flourishing requires both internal rational order and external social liberty. The Austrian theory of the market as a spontaneous order complements this moral vision: both rely on the creative, adaptive rationality of individuals operating within an open-ended, complex world.

Self-Interest, Practical Reason, and Moral Responsibility

In both Austrian and neo-Aristotelian thought, self-interest is rational and morally legitimate. For Mises, self-interest is inherent in human action: individuals act to remove felt uneasiness and improve their conditions. For Rand, self-interest is the moral expression of the objective requirements of human life. Rasmussen and Den Uyl reinterpret self-interest in terms of self-perfection: the pursuit of moral virtue and excellence as expressions of one’s nature as a rational being.

Practical reason (phronesis) guides this pursuit by integrating knowledge, experience, and judgment in concrete circumstances. Similarly, the Austrian entrepreneur uses reason to identify and pursue profit opportunities, which represent the coordination of subjective values through voluntary exchange. This coordination process can be seen as a form of social learning in which individual discovery contributes to mutual benefit. Both frameworks thus ground moral and economic order in the creative, purposive activity of rational agents.

Harmony Between Ethics and Economics

Austrian economics and neo-Aristotelian ethics are not separate silos but complementary aspects of a unified understanding of human life. Economic science explains how individuals interact within markets to achieve their diverse ends, while ethical philosophy clarifies which ends are worthy of pursuit. Together they yield a comprehensive view of the human person as a self-responsible, rational being whose flourishing depends on freedom, virtue, and creativity.

It could be argued that integrating these perspectives results in a “humanomics” of flourishing—a science of man that recognizes the inseparability of moral and economic dimensions of action. (Rasmussen 2024-25) Freedom provides the institutional framework; virtue provides the moral compass; entrepreneurship provides the practical engine of progress. Each reinforces the others in a mutually supportive system.

Conclusion: Toward a Paradigm of Freedom and Flourishing

The intellectual convergence between Austrian economics and neo-Aristotelian philosophy represents more than an academic curiosity. It offers a comprehensive framework for understanding human flourishing under conditions of freedom that integrates insights from ethics, economics, and political theory. Their complementarity arises from addressing different but interconnected aspects of the human condition: the Austrian tradition explaining how social cooperation emerges from individual choices under specific institutional arrangements, and the neo-Aristotelian tradition explaining what constitutes a well-lived life for the individual choosing agent.

Rand admired Mises and the Austrian school, praising their defense of capitalism and critique of central planning. She ranked Mises among history’s intellectual giants and featured favorable reviews of his works in her publications. However, she rejected Mises’s value subjectivism, insisting that values must be grounded in objective reality. For Rand, values are not arbitrary preferences but facts of reality that reflect the requirements of human life.

Yet, as scholars like Robert Tarr have noted, this apparent conflict dissolves when we recognize that Mises and Rand operate at different levels of analysis. Mises’s subjectivism pertains to economic behavior, while Rand’s objectivism addresses moral philosophy. As Tarr puts it, “The Austrian and Objectivist views of value are not contradictory but complementary when properly contextualized.” Austrian economics describes how individuals act; Objectivism prescribes how they ought to act.

The resolution of the apparent conflict between subjective and objective value through different levels of analysis enriches both traditions, allowing economists to acknowledge the purpose-serving nature of market activity while enabling philosophers to recognize the institutional prerequisites for virtue. The connection between entrepreneurial judgment and practical wisdom highlights the moral dimension of economic creativity while acknowledging the cognitive demands of both economic and ethical excellence. The defense of political and economic freedom as essential for human flourishing provides a shared normative foundation for evaluating social institutions.

This synthesis finds eloquent expression in the work of scholars who explicitly aim to forge an understanding from various disciplines and to integrate them into consistent, coherent, and systematic whole. The goal is to have a paradigm in which the views of reality, human nature, knowledge, values, action, and society make up an integrated whole. This integrated perspective acknowledges what Rasmussen and Den Uyl (2016) identify as the "tethered character of political philosophy" to deeper metaphysical and ethical frameworks.

Perhaps most importantly, this integrated perspective reminds us that economics and philosophy ultimately serve the same end: understanding and promoting the conditions for human flourishing. The economic creativity unleashed by markets and the ethical excellence cultivated through virtue represent complementary aspects of what can be identified as flourishing and happiness in a free society. By recognizing their compatibility and complementarity, we can move closer to an integrated understanding of human freedom that enables individuals to realize their highest potential through reason, practical wisdom, and voluntary cooperation.

The convergence of Austrian economics and neo-Aristotelian perfectionism reveals a coherent philosophical paradigm that integrates economics, ethics, and politics around the concept of rational human agency. Austrian economics contributes a dynamic, subjectivist understanding of market coordination and entrepreneurial discovery. Neo-Aristotelian and Objectivist ethics provide an objective, normative account of human flourishing and moral responsibility. Far from being incompatible, the subjective and objective dimensions of value illuminate different aspects of the same reality: human beings as valuers and choosers in a world of possibilities.

By recognizing their compatibility, scholars can move toward a richer, interdisciplinary synthesis—one that unites Misesian praxeology with Aristotelian virtue ethics, Kirznerian entrepreneurship with practical wisdom, and Randian self-interest with moral responsibility. This synthesis provides a powerful conceptual framework for understanding human life as a process of rational self-direction within a free society. It is, ultimately, a paradigm of freedom and flourishing.

Recommended Reading

Bates, Winton. 2024. “The Vision of Ed Younkins’s Trilogy on Freedom and Flourishing” The Savvy Street. (May 15).

Block, Walter. 2005. “Ayn Rand and Austrian Economists: Two Peas in a Pod” The Journal of Ayn Rand Studies Vol.6 No 2; 259-269.

Boettke, Peter J. 2019. “Mises, Rand, and the Twentieth Century” in Gregory Salmieri and Robert Mayhew, Foundations of a Free Society: Reflections on Ayn Rand’s Political Philosophy. Pittsburgh: University of Pittsburgh Press.

Candela, Rosolino A. 2018. “The Socialist Calculation Debate and its Normative Implications in Austrian Economics” The Next Generation: 29-44

Den Uyl, Douglas J. and Douglas B. Rasmussen. 2016. The Perfectionist Turn: From Metanorms to Metaethics. Edinburgh: Edinburgh University Press.

Ebeling, Richard M. 2021. “The Case for Freedom in Ludwig von Mises, F.A. Hayek, and Ayn Rand”. Future of Freedom (January).

Johnsson, Richard C. B..2005. “Subjectivism, Intrinsicism and Apriorism: Rand Among the Austrians”. The Journal of Ayn Rand Studies Vol.6 No.2: 317-335.

Kirzner, Israel M. 1973. Competition and Entrepreneurship. Chicago: University of Chicago Press.

Menger, Carl. 1871. Principles of Economics. Vienna: Wilhelm Braumüller.

Mises, Ludwig von. 1949. Human Action: A Treatise on Economics. New Haven: Yale University Press.

Pauls, Theodore N. 2025 “What Do Neo-Aristotelian Perspectives tell us about Flourishing Individualism?” Freedom and Flourishing (June 24).

Peikoff, Leonard. 1991. Objectivism: The Philosophy of Ayn Rand. New York: Dutton

Powell, Benjamin and Rosolino Candela. 2014. “Markets as Processes of Moral Discovery” Studies in Emergent Order. Vol.7: 258-272.

Rand, Ayn. 1964. The Virtue of Selfishness. New York: Signet.

Rasmussen, Douglas B. 2024-25 “Homo Agens and Homo Moralis in Humanomics”. The Independent Review. (Winter).

Rasmussen, Douglas B., and Douglas J. Den Uyl. 2005. Norms of Liberty: A Perfectionist Basis for Non-Perfectionist Politics. University Park: Pennsylvania State University Press.

Rasmussen, Douglas B. and Douglas J. Den Uyl. 2020, The Realist Turn: Repositioning Liberalism Palgrave Macmillan.

Smith, Barry. 1990. “Aristotle, Menger, Mises: An Essay in the Metaphysics of Economics.” History of Political Economy 22 (3): 683–706.

Tarr, Robert. 2019."Economic Theory and the Conceptions of Value: Rand and the Austrians versus the Mainstream”. In Gregory Salmieri and Robert Mayhew, Foundations of a Free Society: Reflections on Ayn Rand’s Political Philosophy. Pittsburgh: University of Pittsburgh Press, 327-380.

Touchstone, Kathleen. 2015. “Rand and the Austrians: The Ultimate Value and the Non-interference Principle”. Libertarian Papers. 7 No.2, 169-204.

Touchstone, Kathleen. 2020. Freedom, Eudaemonia, and Risk: An Inquiry into the Ethics of Risk-Taking. Lanham, MD: Lexington Books.

Younkins, Edward W. 2005. ‘Menger, Mises, Rand, and Beyond” The Journal of Ayn Rand Studies 6 no.2 Spring: 337-74.

Younkins, Edward W. 2011. Flourishing and Happiness in a Free Society: Toward a Synthesis of Aristotelianism, Austrian Economics, and Ayn Rand’s Objectivism. Lanham, MD: Lexington Books.