Methodological individualism
Methodological individualism is the theory that social and economic phenomenon can be explained by reference to the actions of individuals rather than groups or collectives. Based on this theory groups and collectives are not entities in and of themselves and therefore cannot act except through the actions of the individual members who compose them. Methodological individualism is one of the core concepts of the Austrian School of Economics, and while the term was coined by the Viennese economist Joseph Schumpeter,[1] the idea was earlier developed by the founder of the school Carl Menger. Menger's formulation of this position is revealed by a quote of his published in 1889: "There is no economic phenomenon that does not ultimately find its origin and measure in the economically acting human and his economic deliberations".[2] The development of this idea by Menger, in the late 19th century, was in direct contrast to the dominant theories of the German economists of the day, who at the time considered institutions such as "the people", "the economy", and "the nation" to be entities in their own right.[3]
References
- ↑ Schulak EM and Unterkofler H. "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions", 2011, page 15.
- ↑ Menger Carl, "Nationalökonomische Literaturin Österreich", 1889, page 2-4
- ↑ Schulak EM and Unterkofler H. "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions", 2011, page 15.