Will economic freedom continue to triumph?

 

As I was reading The Triumph of Economic Freedom, the recently published book by Phil Gramm and Donald J. Boudreaux, I wondered whether its title might be too optimistic. The book certainly supports its conclusion that “freedom has been the key to the great progress we have made in the past, and it the key to our progress in the future” (p. 197). However, the impression I was left with is that the authors are not overly optimistic that economic freedom will continue to triumph in America.

The subtitle of the book is Debunking the Seven Great Myths of American Capitalism. In the introduction the authors suggest that current “conventional wisdom” about the desirability of “expanding the government’s role” (i.e. reducing economic freedom) is supported by those myths (pp. xii-xiii). The ongoing triumph of economic freedom will depend importantly on whether enough people understand its merits and are willing to defend it.

Phil Gramm and Donald Boudreaux have both been staunch defenders of economic freedom over a long period. Phil Gramm is an economist and former politician. He represented Texas in both chambers of the U.S. Congress and, at different times, served as both a Democrat and a Republican. Donald Boudreaux is an economics professor at George Mason University and a senior fellow at Mercatus Center. He has vigorously sought to make economic issues, particularly issues surrounding international trade, understandable to a broad audience. He has used his Café Hayek blog for that purpose for over 20 years.

My aim in this essay is to draw on The Triumph of Economic Freedom to consider where anti- market myths come from and who defends them.

Myth 1: The industrial revolution caused a great deal of misery.

This bleak assessment dominates conventional wisdom and popular literature to this day, yet the authors point out that it is refuted by “every major measure of material well-being”.

The myth seems to have its origins in the fact that poor people become much more visible when they move from the countryside in search of a better life in factory work in urban areas. Victorian literature, particularly the novels of Charles Dickens, paint a “worst of times” portrait at the end of the Industrial Revolution.

There has been debate among economic historians about the point at which average real wages actually began to rise in England during the 19th century (even some discussion on this blog) but there can be no doubt that the industrial revolution was the beginning of a golden age of material well-being.

Why does the myth persist? Those who wish to question the merits of free markets still see it as a useful narrative for their purposes (which may include encouraging opposition to imports from “sweatshops” in developing countries).

Myth 2: Progressive era regulation in the U.S. was necessary to meet the threat posed by corporate monopolies.

This myth seems to have had its origins in the inability of many small, local firms to withstand the competition of economic giants serving the national market. These corporate giants contributed to widespread growth of economic opportunity, but their competition was portrayed as harmful by interest groups and politicians seeking greater control of the economy.

This myth is still to be found in leading history textbooks. It is still a useful narrative for those who promote a new progressive vision for regulation of tech giants.

Myth 3: The great depression was a failure of capitalism.

Gramm and Boudreaux suggest: 

“When failed government policies produce a crisis, government blames capitalism and then uses the crisis to expand the very powers that initially caused the crisis” (p. 193).

Some prominent economists who prefer market failure explanations to government failure explanations certainly helped governments to do this. Advocates of market failure put forward some explanations of the depression that appeared to be plausible e.g. the idea that free market capitalism has a tendency toward under-consumption. Gramm and Boudreaux point out, however, that the long period of economic growth after the end of World War II, following restoration of “a largely free market”, testifies against theories of underconsumption (p. 80).

Myth 4: The myth of trade hollowing out American manufacturing.

This myth has its origins in the decline in employment in manufacturing as a percentage of total employment. As Gramm and Boudreaux point out, as part of the economic growth process, advances in technology eliminate jobs in manufacturing (as in agriculture beginning at an earlier point) and create jobs in the service sector. This process enables wages and other incomes to rise.

Import competition is blamed because nationalism is “always a powerful force than can be tapped to stoke support for protectionism, and significant benefits can be granted to a small number of economic interests, with the costs spread almost imperceptibly across society as a whole” (p. 193).

Myths about international trade persist because the roles of economic freedom and technological progress in the economic growth process are poorly understood by most citizens. Few economists support protectionist policies.

Myth 5: The myth that deregulation caused the financial crisis of 2008.

The central element of the myth is that financial deregulation enabled banks to “recklessly gamble depositors’ funds in securities markets”.  Gramm and Boudreaux point out that government “regulatory policy pressured banks to make bad loans”, “forced government-sponsored enterprises to purchase and securitize those loans”, and “manipulated financial institutions’ capital standards to encourage banks to hold massive quantities of mortgage-backed securities” (p. 193).

As with the great depression, this is another example of government causing a crisis and then creating a myth to suggest that the crisis occurred because of insufficient government regulation.

Myth 6: The myth that income inequality in America is high and rising on a secular basis.

Gramm and Boudreaux point out that this myth has its origins in reliance on official Census Bureau data which fails to count two-thirds of transfer payments. When appropriate adjustments are made to the official figures, the ratio of average household income in the top quintile to average household income in the bottom quintile falls from 16.7 to 1 to 4 to 1, and the appearance of growth of inequality disappears.

The idea that income inequality is high and rising in America is so ingrained in conventional wisdom that I had some difficulty accepting that it is a myth. However, the authors have presented a persuasive argument based largely on research by John Early, who was formerly assistant commissioner at the Bureau of Labor Statistics.

The Census Bureau apparently includes footnotes in its publications to acknowledge the limitations of its measures of household income, but it is difficult to understand why it has not produced more accurate measures.

Myth 7: The myth that poverty is a failure of American capitalism.

The authors argue that poverty is a failure of U.S. government rather than free markets. The growth of welfare payments has diminished labor force participation to such an extent that it has largely delinked the bottom quintile of income earners from the economy. The authors suggest that by making the poor dependent on the government the welfare system has severed their “avenue for success and personal achievement”.

The authors suggest that the current welfare system might serve “the political interests of the government” rather than the interests of poor people.

Discussion

The common element in many of these myths is a lack of understanding of the spontaneous forces of a free market, in combination with a planning mentality, and a tendency to overlook the potential for deliberate government controls to have unintended adverse consequences. Another common element is the activity of interest groups that have an incentive to create and perpetuate myths that advance their interests at the expense of others.

Lack of understanding of spontaneous forces poses a particular problem in the context of economic change. As Friedrich Hayek noted, in the context of complex spontaneous orders, it is not possible “to predict the particular changes that any event in the environment will bring about”. He suggested that this “ignorance of how the mechanism of the spontaneous order will solve such a ‘problem’ … often produces a panic-like alarm and the demand for government action for the restoration of the disturbed balance” (LLL, v1, p. 63).

Hayek went on to note that when it is possible to foresee how market forces are likely to restore the disturbed balance, the situation can become even worse:

“The necessity of adaptation to unforeseen events will always mean that someone is going to be hurt, that someone’s expectations will be disappointed or his efforts frustrated. This leads to the demand that the required adjustment be brought about by deliberate guidance, which in practice must mean that authority is to decide who is to be hurt” (LLL, v1, p. 63).

How can anti-market myths be debunked? I can’t think of a better way than via publications such as this book by Phil Gramm and Donald J. Boudreaux, who are following in the footsteps of Frédéric Bastiat. I hope that their book will be widely read in the U.S. and in other countries (including Australia) where anti-market myths seem to be even more widely accepted.

It seems appropriate to end this essay by quoting in full the paragraph by Frédéric Bastiat from which the epigraph was extracted:

“By the dissemination of knowledge, by enlightened discussion of cause and effect, to bring public opinion back to the intelligent attitude that condemns bad tendencies and resists the adoption of harmful measures, is to render a great service to one's country. When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe” (Economic Harmonies, 1850).

Why do scientists politicize science?

 

Source for graphic: Dan Kahan, 'What is the science of science communication', Journal of Science Communication, 2015 

This is a slightly edited version of an essay I published here about 10 years ago. It raises issues that are worth thinking about further at this time.

When I hear scientists engaged in policy advocacy I often cheer them on. At other times I make cynical comments questioning whether their conjectures have any substance. I notice that other people seem to have similar reactions, but some jeer when I cheer and vice versa.

In thinking about my own reactions I am able to rule out some possible reasons for negativity without much difficulty.

Expertise: My reactions are not always closely related to my own expertise. I can react positively or negatively to scientific advocacy in relation to areas of public policy in which I have no expertise as well as in aspects of economic policy where I can claim some expertise.

Conservatism: My reactions do not seem to be consistently conservative in the sense of being cautious about change. Sometimes I feel that scientists are setting out to make me worry unduly about the implications of our current lifestyles, but I am less inclined to feel that they are trying to make me feel more complacent than I should be about potential adverse effects of various innovations e.g. GM food or health effects of living close to power lines or wind farms.

Research funding: My reactions are not necessarily related to the question of how the scientists fund their research. In some instances I might suspect that they are advocating in the interests of the people who have provided funding, or slanting their presentations to further their interests in obtaining more funding, but such factors are not always relevant.

Indoctrination: My reactions are unlikely to be the result of indoctrination by particular branches of the news media. I am exposed to a range of media organisations with a range of different biases.

I had to think more carefully about whether my reactions could be related to the presentation skills of the scientists. I know I have a strong allergic reaction to being preached at or manipulated. So, I took a look at Jason Nazar’s 21 principles of persuasion and some other web sites discussing the art of persuasion. In the end I realized that I don’t have too much difficulty these days in being able to appreciate the persuasive skills of speakers while disagreeing with the messages they are presenting. I can also support the message being presented by speakers while thinking they could do with some help to improve their presentation skills.  Membership of Toastmasters encourages people to think about such matters.

It was not until I stumbled on an article by Dan Kahan on the science of science communication that I realized that the reactions that people have to advocacy by scientists might be related to Bryan Caplan’s concept of rational irrationality and Jonathan Haidt’s moral foundations theory (which have previously been discussed on this blog). Caplan suggests that people can have an almost religious attachment to irrational beliefs about economics, while Haidt suggests that identification with groups tends to blind people to the wisdom of people outside those groups.

Cutting to the chase, Kahan tests the performance of two hypotheses to explain why there is so much public dispute over science-based conjectures about the risks that humans are facing. The first thesis, the public irrationality thesis (PIT), predicts that the gap between public and expert assessments of risk narrows as members of the public become more literate about science. On that basis, people who scored highest on science comprehension could be expected to be more concerned about climate change than those with lower scores. However, this doesn’t happen - at least it doesn’t happen in studies cited by the author.

The second thesis, the cultural cognition thesis (CCT) posits that certain types of group affinities are integral to the mental processes ordinary members of the public use to assess risk. Kahan cites various studies that have tested CCT, but the results of one which tests CCT head-to-head against PIT are particularly interesting. The results show that on issues that have become politicized – such as global warming and fracking – the average divergence between risk assessments of people who identify as liberal democrats and conservative republicans is greater among those who have high levels science comprehension than among those who have low levels of science comprehension. (See chart at the top of this essay.) The results suggest that individuals who are most adept at scientific reasoning search out evidence to support their political dispositions.

The study suggests that there is little difference between risk assessment of liberals and conservatives on issues that have not become politicized e.g. artificial food colorings, exposure to radio waves from cell phones, GM food, exposure to magnetic field of high voltage power lines, use of artificial sweeteners and nanotechnology. The PIT thesis does apply to such issues. I guess the results might differ in countries where some of these issues, e.g. the risks associated with GM food, have become politicized.

So, in the light of the above, how should I react to the Earth Statement recently published by a group of eminent scientists which suggests that “2015 is a critical year for humanity” and predicts dire consequences if international forums to be held this year decide to postpone substantial reductions in greenhouse gas emissions? Let me quote a paragraph:

“We can still avert dangerous climate change. However, we are currently on a warming trajectory that will leave our world irrevocably changed, far exceeding the 2°C mark. This gamble could propel us into completely uncharted waters, with unmanageable sea-­level rise and a vastly different climate, including devastating heat waves, persistent droughts and unprecedented floods. The foundations of our societies, including food security, infrastructure, ecosystem integrity and human health, would be in jeopardy, impacting most immediately the poor and vulnerable.”

My immediate reaction was along the lines that they would say that wouldn’t they. Those who preach about the end of the world can always be expected to tell us to repent now for the end of the world is nigh. Would you expect them to say that it is now too late to do avoid catastrophe, or that there is no need to worry much for the next 20 years or so?

I claim no expertise in climate modelling, but the little I know suggests to me that current models are not reliable enough to tell us that it is critical that further action be initiated in 2015. Such claims seem to me to be more like hysteria than science.

So, why don’t scientists take more care to avoid politicizing science?

 

How can dialectics help us to defend liberty?

 

This guest essay by Dr Edward W. Younkins is a review of Chris Matthew Sciabarra’s book “Total Freedom”, which was published 25 years ago. The epigraph is from page 354 of that book.

Ed Younkins 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”. Ed has numerous other publications, including an essay reviewing books by David L. Norton, which was published here in January.    

 Ed Younkins’s review was previously published in 2001 in “Le Québécois Libre”. 

There are two reasons why it is appropriate for it to be re-published now.

First,“Total Freedom” deserves more attention, and the 25^th anniversary of its publication is a particularly appropriate time for that to occur.

Second, in the light of declining economic and personal freedom in many parts of the world, the defense of liberty has become more urgent than it was 25 years ago. Ian Vásquez and his colleagues responsible for measurement of human freedom for Cato and the Fraser Institute have noted that on a world-wide basis, and using a population weighted comparison, a high point for freedom occurred in 2005–2007, followed by a steady decline through 2019, and a precipitous descent in 2020 through 2021 associated with government responses to the Covid virus (“The Human Freedom Index 2024, pp. 21-25). The latest data suggest although some recovery has occurred since, human freedom remains lower than in the year 2000.

Younkins ended his review by noting that he was “looking forward to seeing what Sciabarra will offer us next that will contribute toward the development of a comprehensive defense of freedom.” Chris Sciabarra has continued to make important contributions in this field even though illness has somewhat constrained his efforts.

Here is Ed Younkins’s review of:

Sciabarra, Chris Matthew, Total Freedom: Toward a Dialectical Libertarianism (Pennsylvania State University Press: 2000).

In Total Freedom, Chris Matthew Sciabarra offers a provocative, scholarly, and original work in social theory for the analysis of society and human liberty. The author aims to reclaim the dialectical method, the art of context keeping, in the name of liberty and from the authoritarian left in order to make it the foundation for a radical (i.e., one that goes to the root) defense of libertarianism.

The necessity of context

Sciabarra is convinced that a successful libertarian project must stress the necessity of context – the totality of systemic and dynamic connections among social problems. More specifically, the libertarian ideal cannot be isolated from the context upon which it depends and freedom cannot be defended successfully when separated from its broader requisite conditions. The author proposes in Total Freedom a metatheoretical foundation upon which to construct a comprehensive libertarian social theory. Rather than making a convincing argument for liberty, he offers a means for structuring the methodology of social inquiry. The book is about how a context-sensitive methodology can be used to defend freedom. In order to think about freedom, people need to grasp the totality of its prerequisites and implications. Emphasizing the indivisible unity of theory and practice, Sciabarra says that any effort to understand or change society requires an analysis of its many related aspects.  

Sciabarra explains that dialectics emphasizes the centrality of context in the intertemporal analysis of systems. It is a thinking style that stresses the contextual analysis of systems across time. Dialectics may be viewed as a method of analysis, a mode of inquiry, or a type of meta-methodological orientation or set of assumptions about how we approach the object of our study. Dialectics is an approach to thinking that attempts to grasp the full context of a philosophy or social problem. Dialectical thinking endeavors to understand the whole through differential vantage points and levels of generality and by a systemic and dynamic extension of analytical units. 

The author emphasizes that dialectical thinking necessitates that we do not engage in context dropping, but instead make every possible effort to see interconnections between seemingly disparate branches of knowledge. Such an approach compels scholars to investigate empirically the potential connections between various spheres in an effort to attain integrated knowledge of the full context. Since people are not omniscient, understanding a complex world thoroughly requires an on-going investigation of its many interrelated facets from shifting vantage points. 

Down to earth dialectics

As a methodological orientation, dialectics has been employed in the analysis of systems of argumentation, philosophy, ethics, linguistics, history, culture, psychology, social theory, political economy, etc. One of Sciabarra's goals is to capture the essence of the many dialectical approaches that have appeared throughout intellectual history. He argues that in its origins dialectics is not an especially Hegelian or Marxian tradition, but rather in its inception it is firmly Aristotelian. 

Sciabarra explains that, although the pre-Socratics and Plato were the earliest practitioners of dialectics, it was Aristotle, the true father (or fountainhead) of dialectical inquiry, who first articulated its theoretical principles and techniques. Plato had connected dialectics to an idealist ontology that entailed the search for comprehensive transcendent truth. Plato's unrealistic epistemological standard was for human beings to somehow attain a synoptic perspective on the whole society. 

Aristotle brought the dialectic down to earth by severing its principles from their Platonic-idealist formulation. The Aristotelian idea of dialectics eliminates cosmology from philosophy and relies on a minimalist metaphysics that states that existence is what it is, that consciousness is our means for understanding it, and that everything that exists is part of one reality. The history of dialectics is filled with battles between the synoptic Platonic idealist conception and the contextual Aristotelian realist understanding. As a dialectical reality, Sciabarra tells us that we should rightfully criticize those who form dialectical abstractions with no regard for their relationship to the facts of reality. 

Sciabarra explains that Aristotle advocates shifting our viewpoints on any object of study in order to illuminate different aspects of it. In this way, Aristotle keeps the Platonic predilection for organic unity, but acknowledges the central importance of context. Aristotle's principles of inquiry call for us to constantly shift our perspective on any object of study. Each point of view provides a different context of meaning. It is by piecing together the various perspectives that a person can gain a comprehensive understanding of the full context of the object. 

Like Aristotle, the Medieval Scholastics applied dialectical principles to the argumentative arts. Sciabarra observes that they brought dialectics to the consideration of Biblical texts and thus began the centuries-long journey toward the secularization of the human mind because they were brave enough to subject the scriptures to analysis, something that was disapproved of for centuries before.  

Sciabarra argues that Hegel's conception of the dialectic harks back to the Ancient Greek ideal of organic unity and to the Platonic penchant for the divine. In turn, Marx anchored dialectics to investigations of the real world. However, Marx's vision presumed god-like planning and control of many nuances, tacit practices, and unintended consequences of social action. He also presumed a total grasp of history and often attempted to study the present as if from an imagined future. When Marxists suggest that history can lead to a victory over human ignorance, they are implying privileged access to total knowledge of future social conditions. This is inherently utopian and undialectical since it is unbounded by the context that exists and is based on a « synoptic delusion, » a belief that one can live in a world in which every action produces consistent and predictable outcomes.

The art of context keeping

 If dialectics is the art of context keeping, then historical materialism proposes a theory of history that places the theoretician outside the context of the human condition. The problem occurs when Marx steps into the future to evaluate the present. He assumes the information needed by future planners will be available despite the fact that these planners will have destroyed the context (i.e., the price system), which permits such information to be generated and socially traded. By holding this incorrect assumption, Marx is placing himself outside the historical process that he analyzes. Sciabarra observes that it is as though Marx is permitting himself privileged access to information about a future that is ontologically and epistemologically impossible. Such a Utopian way of viewing the world is essentially an a-contextual, a-historical search for human ideals with no understanding of the limits or nature of reason. It is as if people can step outside the bounds of culture and society to re-create the world. 

Sciabarra goes on to explore the manifestations of dialectics among those from the liberal tradition including Herbert Spencer, Carl Menger, Mises, Hayek, Rand, and especially Murray Rothbard. The author's goal here is to show how classical liberal and modern libertarian approaches embody conflicting orientations. He also describes how these thinkers have been richer, more complex, and more context-sensitive than their critics have been willing to acknowledge. Total Freedom documents how a contextual-dialectical approach informed many of the classical liberal, and libertarian thinkers of the 19th and 20th centuries. 

A large portion of the second half of Sciabarra's work involves a comprehensive case study of the writings of Murray Rothbard, one of the major libertarian thinkers of the 20th century. Sciabarra attempts to identify the dialectical and undialectical aspects of Rothbard's wide-ranging anarcho-capitalist analytical model. Rothbard's work is used to expose and analyze the dialectical strengths and nondialectical weaknesses that are typical in modern libertarian social theory. 

Sciabarra observes that Rothbard, for most of his life, believed that libertarianism did not require a theory of culture. Rothbard appeared to think that his axiom of non-aggression could resolve social and political problems by itself. Like many other libertarians, he simply dropped the larger context which freedom requires in order to flourish and stressed libertarian goals without considering the problem of meeting them. He insisted that libertarianism was a political philosophy that could accommodate any culture. For example, Rothbard believed that men could simply use their reason to develop a permanently fixed Libertarian Law Code in accordance with anarcho-capitalist principles.  

Sciabarra questions the efficacy of such an imposition because it does not take into account the philosophical, cultural, and historical context upon which libertarian principles depend. The acceptance of a Libertarian Law Code in the real world would require a deeper understanding of personal and cultural factors. Rothbard had abstracted a single principle of non-aggression and created a dualistic tension between theory and reality by declaring that state institutions are at odds with human nature. This led Rothbard to universalize the market as a means of destroying the state.  

Sciabarra points out that later Rothbard realized that proponents of a free society needed a fully articulated theory of culture, since some cultures foster, while others threaten, a free society. Rothbard's later greater dialectical sensibility is exhibited in his theory of structural crisis which was simultaneously historical, political, economic, and sociological and in the foundations of his non-Marxist theory of class struggle. 

In need of an effective strategy

Toward the end of his book, Sciabarra briefly surveys the growing dialectical trend among libertarians such as Peter Boettke, Douglas Den Uyl, Don Lavoie, Douglas Rasmussen, Mario Rizzo, and others. Sciabarra is convinced that libertarianism as a social theory is valuable and offers a valid perspective on the nature of the crisis in modern society and that voluntary social relations, with all their preconditions and effects, are morally and consequentially preferable to the status quo and to statism in all its varieties. However, he does not believe that libertarian theorists have presented the best formulations and arguments in the context of social conditions that exist. Freedom cannot be defended successfully when severed from its broader requisite conditions. Libertarians must pay greater attention to the broader context within which their goals and values can be realized.

Sciabarra's message is that libertarians need an effective strategy that recognizes the dynamic interrelationships between the personal, political, historical, psychological, ethical, cultural, economic, etc., if they are to be successful in their quest for a free society. He explains that attempts to define and defend a non-aggression axiom in the absence of a broader philosophical and cultural context are doomed to fail. Libertarians must pay greater attention to the broader context within which their goals and values can be realized. The battle against statism is simultaneously structural (political and economic), cultural (with implications for education, race, sex, language, and art) and personal (with connections to individuals' tacit moral beliefs, and psycho-epistemological processes).

The author wants people to understand both the necessity for objective conceptual foundations for a free society and the need for cultural pre-requisites in the battle for the free society. The fight for freedom is multidimensional and takes place on a variety of levels with each level influencing and having reciprocal effects on the other levels. Dialectics require that people take into account and pay attention to all the levels and structures that a politics of freedom depends upon. Sciabarra contends that it is possible to look at society from different angles and on different levels of analytical generality in order to obtain an enriched portrait of its total form. Change must occur on many different levels and cannot be dictated from the realm of politics – it must filter through all the various levels.

The goals of Total Freedom are to defend the need for a dialectical libertarianism that synthesizes multiple disciplines and to reclaim dialectics as a viable methodology for libertarian social theory. The author accomplishes this in his well-documented, innovative, and academic treatise. He offers libertarianism as a valid and valuable perspective that is preferable to the status quo and to statism in all its varieties. However, Sciabarra stops short of developing his own substantive dialectical libertarian social theory. 

His work is primarily methodological and only articulates the view that a dialectical libertarianism is essential to the future of both dialectics and libertarianism. He has taken the first step by offering a metatheoretical structure for social inquiry, rather than a comprehensive argument for liberty. Sciabarra cautions that much work needs to be done to test the validity of various libertarian theories. I am looking forward to seeing what Sciabarra will offer us next that will contribute toward the development of a comprehensive defense of freedom.

Addendum

Readers may also be interested in an essay that Chris M. Sciabarra recently published to mark the thirtieth anniversary of the first two books in his "Dialectics and Liberty Trilogy": "Marx, Hayek, and Utopia" and "Ayn Rand: The Russian Radical," and the twenty-fifth anniversary of "Total Freedom." This "Trilogy Anniversary" essay can be found on both Notablog and Medium:

https://notablog.net/2025/06/09/a-trilogy-anniversary/

https://medium.com/@cm.../a-trilogy-anniversary-6265b10c1258

What do Neo-Aristotelian Perspectives tell us about Flourishing Individualism?

 

This is a guest essay by Dr Theodore N. (Ted) Pauls.

Ted Pauls holds a Doctorate in Higher Education Administration and serves as a Professor of Business at Bethany College (Bethany, West Virginia). He has 32 years of college teaching experience including Bethany, Wheeling Jesuit University, and West Liberty University. He also currently serves as the President of the Brooke County Board of Education. Prior to entering academe, Ted served as a Marketing Director for a privately held corporation and as a stockbroker.

In my view, the topic of Ted’s essay is highly relevant to people who live in the liberal democracies. I often hear people claim that the priority given to personal freedom in those societies has caused them to become excessively individualistic. How can defenders of individual liberty respond to those who claim that excessive individualism has contributed to narcissistic behaviour, social isolation, and mental illness? We can’t deny that many individuals lack integrity in their dealings with others. We can’t deny that many individuals live lonely lives, lacking positive relationships with others. We can’t deny that many individuals seek to escape from reality and that some of them end up delusional.

However, we can explain that it is wrong to jump to the conclusion that the solution to those problems lies in further restricting opportunities for individual self-direction. We can explain that humans cannot fully flourish unless they have opportunities to exercise the practical wisdom and integrity required to direct their own lives in accordance with goals they choose and values they endorse. And we can also explain that the kind of individualism that we endorse is the flourishing individualism that Ted Pauls writes about in the following essay.

Ted writes:

 Flourishing individualism is a philosophical vision that places the rational, morally responsible individual at the center of ethics, politics, and human life. It is an ideal that affirms the dignity of the person, the objectivity of value, and the necessity of freedom—not merely as a constraint on power, but as the essential condition for human excellence. This article develops a theory of flourishing individualism by integrating key insights from three related and foundational works:

• Leonard Peikoff’s Objectivism: The Philosophy of Ayn Rand (1991),
• Edward W. Younkins’s Flourishing and Happiness in a Free Society: Toward a Synthesis of Aristotelianism, Austrian Economics, and Ayn Rand’s Objectivism (2011), and
• Douglas J. Den Uyl and Douglas B. Rasmussen’s The Perfectionist Turn: From Metanorms to Metaethics (2016).

Each of these works contributes to a shared theme: the defense of individual flourishing as the core moral aim and the view that political society exists to enable, not direct, that flourishing. Peikoff articulates Ayn Rand’s Objectivist ethics and politics as a fully integrated philosophical system grounded in reason, egoism, and laissez-faire capitalism. Younkins seeks to synthesize Aristotelian virtue ethics, Austrian economics, and Objectivist principles to argue that human happiness and social cooperation are best achieved in a free society. Den Uyl and Rasmussen develop a metanormative liberalism in which the moral diversity of flourishing individuals is protected by political principles that are themselves ethically grounded but non-perfectionist in character.

The result of their 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. This article unfolds this framework in five parts: (1) the moral foundations of individual flourishing, (2) the structure of virtue and self-perfection, (3) the social context of flourishing, (4) the political principles that protect freedom, and (5) the philosophical implications of flourishing individualism for contemporary thought.

The Moral Foundations of Flourishing

At the heart of flourishing individualism is the idea that human life has an objective standard of value and that each individual must discover and pursue their own good through rational action. This view stands in opposition to both subjectivist relativism and collectivist moralities that subordinate the individual to external purposes.

Peikoff Explains Rand on Reason and on Life as the Standard of Value

Leonard Peikoff, in Objectivism: The Philosophy of Ayn Rand presents a moral framework that begins with the facts of human nature. This book is the first comprehensive statement of Rand’s philosophy. Peikoff discusses Rand’s views on metaphysics, epistemology, ethics, politics, and aesthetics. Rand’s philosophy asserts that existence exists independently of consciousness, that reason is the primary means of understanding the world and one’s place in it, and that individuals should act in pursuit of their own self-interest. Ayn Rand’s ethics, as he explains, holds that value is that which one acts to gain or keep, and that 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—living as the kind of being one is.

This leads to a morality of rational egoism. The purpose of morality is not to sacrifice the self for others, nor others for the self, but to guide each individual in achieving their own happiness through the use of reason. Moral principles are principles of self-perfection, of the kind of character and action required to live a fully human life.

Objectivist ethics is thus neither altruistic nor hedonistic. It affirms the individual as an end in himself and views the pursuit of one’s own rational interests as both morally right and practically necessary. It calls for independence, integrity, productivity, and pride—virtues that are both personally fulfilling and socially beneficial.

Rand’s Objectivism holds that an individual’s choice to live is required for ethical obligations to exist. On the other hand, Younkins, Den Uyl, and Rasmussen all maintain that there is an ethical obligation to choose life because life is one’s natural end and good and therefore choiceworthy.

Younkins on Flourishing and Human Nature

Edward W. Younkins, in Flourishing and Happiness in a Free Society, expands on this foundation by situating it within the broader tradition of Aristotelian eudaimonism. He argues that human beings have a nature with specific potentials and that morality consists in actualizing these potentials over the course of a lifetime. Flourishing (or eudaimonia) is an activity of the soul in accordance with reason and virtue.

Younkins draws on Aristotle, Rand, contemporary neo-Aristotelian philosophers, Austrian economists, and others to argue that flourishing is not reducible to pleasure, wealth, or external success. It is a state of integrated self-realization involving rationality, moral character, purposeful work, and meaningful relationships. It requires that individuals make choices consistent with their nature and long-term well-being.

Crucially, flourishing cannot be given or imposed—it must be chosen and achieved. This emphasis on agency echoes Objectivism’s moral individualism while adding a richer account of the variety and depth of human goods. The good life is not a fixed pattern but a dynamic process of self-perfection.

He also explains that Objectivist claims of value objectivity and claims of Austrian economists are compatible because that involve different levels of analysis. Rand’s sense of value-objectivity complements the Austrian sense of value-subjectivity because personal flourishing on an objective level transcends subjective value preferences.

Younkins’s book presents the essentials of a potential paradigm or conceptual framework for individual human flourishing in a free society. It is an attempt to forge an understanding from various disciplines and to integrate them into consistent, coherent, and systematic whole. His goal is to have a paradigm in which the views of reality, human nature, knowledge, values, action, and society make up an integrated whole. He recognizes that his potential framework will grow and evolve as scholars engage and extend its ideas.

Den Uyl and Rasmussen on Individualistic Perfectionism

Douglas J. Den Uyl and Douglas B. Rasmussen, in ThePerfectionist Turn, argue that ethical theory must return to a teleological and perfectionist framework that recognizes the centrality of human flourishing. Against dominant trends in analytic philosophy that treat ethics as a matter of rules, duties, or utility, they insist that the good life is the ultimate standard of evaluation.

Their contribution lies in developing a concept of “individualistic perfectionism”: the view that the good is self-perfection, but that this perfection takes diverse forms based on individual contexts, capacities, and choices. Flourishing is not a single ideal life but a framework in which many legitimate variations of the good life are possible.

Den Uyl and Rasmussen 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.

This view preserves the objectivity of morality while respecting the uniqueness of persons. It sees ethics as aspirational, not prohibitive—as a guide to excellence rather than a list of constraints. And it affirms the value of individual agency, creativity, and responsibility in moral development.

 Den Uyl and Rasmussen defend a template of responsibility, rather than a template of respect, as a framework within which to based one’s self-perfection. This agent-centered template recognizes the existential condition that each responsible and choosing individual must make a life for himself. Under this template self-direction and integrity are central to morality because personal responsibility for one’s life is primary.

Den Uyl and Rasmussen explain that political philosophy is unavoidably tethered to deeper, more foundational. and comprehensive perspectives and frameworks regarding reality, human nature, and ethics, Championing the tethered character of political philosophy, Den Uyl  and Rasmussen advocate individualistic perfectionism and the template of responsibility for a person’s self-perfection.

The Virtues of Flourishing: Self-Perfection in Practice

Flourishing individualism depends not only on abstract principles but on the cultivation of character. Virtue is the bridge between human nature and human flourishing: it is the habitual excellence of the soul in action.

All of these thinkers agree that virtues are not mere social conventions or rules of obedience but rational habits that support an individual’s life and happiness. While they differ in terminology and emphasis, they converge on a core set of traits that enable a flourishing life.

Objectivist Virtue Theory

Peikoff identifies seven cardinal virtues in Ayn Rand’s ethics: rationality, independence, integrity, honesty, justice, productiveness, and pride. Each of these is a rational requirement of life, rooted in the objective needs of human survival and flourishing.

• Rationality is the primary virtue: it is the commitment to reason as one’s only source of knowledge and guide to action.
• Independence follows from rationality: it is the reliance on one’s own judgment rather than on the beliefs or authority of others.
• Integrity is fidelity to one’s rational principles.
• Honesty is the refusal to fake reality.
• Justice is the principle of judging others objectively and giving them what they deserve.
• Productiveness is the creation of material values.
• Pride is moral ambitiousness—a commitment to achieving one’s moral worth.

These virtues are not sacrifices but achievements. They are the means by which an individual shapes a life worth living.

Younkins on Integrated Living

Younkins expands this list by emphasizing the integration of mind, body, and character. He argues that flourishing involves not just isolated traits but the harmonious development of the whole person. This includes intellectual virtues like wisdom and understanding, moral virtues like courage and benevolence, and practical virtues like industry and perseverance.

He also stresses the importance of purposeful work and the creation of value. Echoing Rand and the Austrians, Younkins sees economic activity not as a separate sphere but as an expression of human creativity and agency. Work is not a mere means to leisure; it is part of the good life.

Den Uyl and Rasmussen on the Diversity of Excellence

Den Uyl and Rasmussen agree that virtue is central but emphasize that virtue must be contextualized. Because flourishing is individualized, the specific content of virtue can vary with personal identity, role, and situation. What prudence or courage demands may differ between a soldier, a scholar, and an entrepreneur.

They resist reducing virtue to rule-following or to a fixed ideal life. Instead, they see it as a dynamic and developmental concept: excellence in the use of practical reason to navigate the world in pursuit of self-perfection. This view aligns with Aristotle’s emphasis on phronesis (practical wisdom) as the master virtue guiding others.

Den Uyl and Rasmussen add practical wisdom (prudence) to the Objectivist list of virtues. They explain that reason is a self-directing activity and that practical wisdom is the excellent use of practical reason and the central integrating virtue of a flourishing life.

The Social Context of Flourishing

Flourishing is personal, but it is not solitary. Human beings are social by nature, and many goods—friendship, love, trade, knowledge—require the presence of others. The moral vision of flourishing individualism recognizes this fact without collapsing the individual into the collective.

The Role of Trade and Civil Society

Peikoff emphasizes that trade—both economic and spiritual—is the proper mode of human interaction. In a society of rational individuals, people deal with one another by mutual consent for mutual benefit. Force, fraud, and parasitism are morally and practically incompatible with a flourishing life.

Younkins adds that civil society—the network of voluntary institutions, markets, and communities—is the natural habitat for human flourishing. Drawing on Austrian economics, he shows how spontaneous order arises from the free choices of individuals pursuing their own goals. Markets are not chaotic or amoral but forms of cooperation that reflect human values.

Younkins explains that an entrepreneur attains wealth and his other objectives by providing people with goods and services that further flourishing on earth. He views entrepreneurs as specialists in prudence—the virtue of applying one’s talents to the goal of living well. In turn, Den Uyl and Rasmussen see a parallel between entrepreneurship and moral conduct. They discuss the creativity of human beings both in producing wealth and in building moral character, two enterprises that require alertness, insight, and evaluation and are parts of a flourishing life. They explain that both ethical wealth and economic wealth are a function of one’s actions taken to produce a good life.

Virtue and Community

While the state must not impose virtue, communities and relationships play an essential role in cultivating it. Younkins, Den Uyl, and Rasmussen all stress the importance of cultural norms, moral education, and social practices that support character development. Families, friendships, institutions of learning, and the arts all contribute to the conditions of flourishing.

But these institutions must be voluntary and diverse. The ethical pluralism of flourishing individualism requires a social order that permits experimentation, innovation, and personal growth.

Political Philosophy and the Framework for Flourishing

Ethics identifies the good life for the individual; political philosophy identifies the kind of social order that makes the pursuit of that life possible.

Peikoff, Rand, and Objectivism: Rights as Moral Principles

Peikoff and Rand emphasize that because human beings survive by reason, and because reason is a volitional faculty, freedom is the political condition required for moral agency. Rights are objective principles that protect the individual’s freedom to act.

The proper political system, therefore, is laissez-faire capitalism: a system that protects rights and bans the initiation of force. It is not morally neutral but grounded in the recognition that each individual has a moral right to live for their own sake.

Younkins: Natural Law, Natural Rights, and Civil Society

Younkins explains that the natural negative right to liberty is concerned with regulating conditions for human flourishing They are not directly concerned with promoting the attainment of flourishing. He agrees with Den Uyl and Rasmussen’s long held view that rights are metanormative principles that protect self-directedness, a universal requirement to all manifestations of human flourishing.

He also demonstrates that political freedom enables the emergence of complex, adaptive systems—markets, associations, cultural norms—that support flourishing. He draws on Austrian insights to argue that no central planner can substitute for the decentralized knowledge and creativity of individuals.

This view also entails limits on political authority. The state must be constrained by rule of law and dedicated to protecting liberty—not managing outcomes or mandating virtues.

Den Uyl and Rasmussen: The Metanormative Structure of Liberalism

Unlike Rand, Den Uyl and Rasmussen (as well as Younkins) distinguish between normative and metanormative principles. Ethics is normative: it guides individuals in living well. Politics is metanormative: it defines the conditions under which individuals can peacefully pursue diverse goods.

This leads to a perfectionist yet non-perfectionist liberalism: one that values flourishing and virtues but refrains from legislating them. The liberal order is justified not by neutrality but by its compatibility with ethical pluralism and moral agency.

Philosophical Implications and the Future of Flourishing Individualism

Flourishing individualism reconciles objectivity with freedom, pluralism with virtue, and individuality with community.

It offers:

• Objectivity without authoritarianism: Morality is real, but political authority is limited.
• Pluralism without relativism: There are many good lives, but not all lives are equally good.
• Agency in a world of systems: Individuals are not products of structures but shapers of their own destiny.
• A humanistic ideal: The individual is not a cog in the machine but a creator of values.

In a time of cultural fragmentation and political overreach, this philosophy offers a bold and humane alternative. It calls on us to build a society that respects liberty, cultivates virtue, and honors the rationality and free will of each person.

Together, these books by Peikoff, Younkins, and Den Uyl and Rasmussen provide essential  ideas for a robust framework for understanding flourishing individualism—a life of rational self-interest, virtue, and freedom.

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References

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

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

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