Thursday, December 18, 2014

Capitalism and Rationality

Four prominent concepts of Practical Reason are: 1. Aristotelian--a Mean; 2. Spinozist--Adequate Causality; 3. Kantian--Universal Law; and, 4. Humean--calculation at the service of Passion.  Plainly, the weakest of them is #4, even when qualified as the calculation of the most efficient means to passionate ends.  Now, since Smith, Capitalists have rarely seemed to define their concept of 'Rationality', but the predominant use suggests acceptance of either #4 or its qualified version.  So, the behavior represented in their models is less than optimal, no shortcoming if their aim is merely Descriptive, but a profound flaw in an even implicitly Normative or Prescriptive theory.

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