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Applying Ethics to Human Action

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This article explores the foundational concepts of Human Action Theory (HAT) as proposed by Ludwig von Mises, examining the interplay between Marxism and capitalism. It delves into the nature of human action, emphasizing purposeful behavior and the inevitability of action driven by individual needs and rational choices. Additionally, it discusses key Marxist theories such as historical materialism and alienation, contrasting them with the principles of capitalism, including the invisible hand and the significance of social action. The implications of these theories for economics and societal behavior are also analyzed.

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Applying Ethics to Human Action

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  1. Applying Ethics to Human Action An overview of HAT, Marxism and Capitalism

  2. Human Action Theory [Ludwig von Mises] • Human action is purposeful behviour • Actions- Unconscious, sub-conscious or conscious • Action as preferring or choosing • Action: employment of labour to meet ends

  3. Human Action Theory • Praxeology: happiness as outcome of actions • Man’s state of life demands change, thus action is inevitable • Means and ends as cause and effect • There is no absolute end, there are ends

  4. HAT and Social Action • Idea of social action: Human behavior in group, axiomatic to various schools of thought in economics • HAT, Smith: Man’s rational choices applied to economics • HAT states that human mind has logical structure, thus economic calculation is same for all

  5. Concepts Regarding Social Action • Laissez faire: freedom from state inervention • Positivism: • Comte- 3 stages: theological, metaphysical and positive • Durkheim: Main goal of human behavoir is rationality; social anomie • Antipositivism: Predicts social engineering; disregarding sociology as a science

  6. Theory of Marxism Historical Materialism • Man and forces of production, corresponding changes in the two • Infrastructure and superstructure • Contradiction between forces of production and relationships in production factors give new forces of production • Concept of class consciousness and class solidarity

  7. Theory of Marxism Dialectical Materialism • Building on Hegel: thesis-antithesis-synthesis; workers in production, conflict between workers and capitalists, workers overthrowing capitalists • Ideas and ideals aren’t important, material world keeps impressions of a society • Idea of material productive forces [handmill runs a society]

  8. Theory of Marxism Theory of Alienation • Entfremdung[estrangement]: means of production separating producer form the produce • Product of labour is alienation • Capitalistic society doesn’t allow man to reach his full potential

  9. Capitalism A Free Market • Natural forces of demand and supply • Equilibrium prices • Spontaneous order and Invisible hand • Economic liberalism

  10. Capitalism Max Weber • ‘The Protestant Ethic and Spirit of Capitalism’: realtion between development of religion and rise in capitalism • Hinduism, Taoism, Roman Catholicism impede development • Protestantism- emphasis on hard work, religion as ethical system, accumulate capital for social investment

  11. Conflict Theory • Game Theory: set of players, their set of strategies and payoffs • Normal Game- Players act simultaneously without knowledge of others’ actions • Cooperative game: Players enforce cooperative behavior; players form coalitions • Nash Equilibrium: Each player knows equilibrium strategy of other players; take best decisions taking into account other’s decisions

  12. Conflict Theory • Prisoner’s Dilemma: Two men arrested-both need to testify for police to have enough evidence- • One betrays other- Betrayer free, other gets 1 year sentence • Both confess- Both get 3 months sentence • Both silent- Both get 1 month sentence • The two prisoners unaware of all this

  13. Conflict Theory • Prisoner’s Dilemma in Real life • Countries curbing CO2 emissions • Addiction- relapse today and tomorrow is worst outcome, no relapse ideal but relapse today constitutes an addiction free tomorrow. • Prisoner’s dilemma occurs due to lack of Social capital i.e. trust

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