Ludwig von Mises’s Views on Ayn Rand and the Intersection of Philosophy and Economics

While Ludwig von Mises and Ayn Rand are both prominent figures in the libertarian and classical liberal movements, their views on economics and philosophy were often at odds. Despite his respect for Rand’s critique of bureaucrats, Mises had several critical views of her philosophical approach. This piece explores the philosophical differences, critiques of methodology, and personal relations that contributed to their lack of mutual respect.

Philosophical Differences

At the core of their differing views was the philosophical foundation upon which they built their theories. Mises was a proponent of praxeology, the study of human action, and emphasized a scientific approach to economics. On the other hand, Rand developed a philosophy called Objectivism, which included metaphysical and ethical dimensions. Mises found Rand's emphasis on her philosophical system to be overly dogmatic and lacking in the flexibility he valued in economic theory.

Critique of Rand's Methodology

Mises criticized Rand's method of integrating her philosophical views with economics, arguing that her approach lacked the rigorous analytical framework he championed. He believed that her insistence on a singular philosophical viewpoint could limit the broader acceptance of libertarian ideas. In his work, Human Action, Mises founded his economic theories on a neo-Kantian conception of Categories, asserting that human preference is entirely subjective. Rand, however, disagreed with this method and the tone of the conclusion about preferences. She argued for a moral defense of human freedom and for objective knowledge and values, a stance Mises rejected.

Personal Relations

Their personal relationship was also marked by strain. Mises and Rand had a falling out over their differing views. Mises did not endorse her work or philosophy, particularly as it related to his own economic theories. This lack of endorsement further fueled the distance between them. Despite this, Mises was still very much impressed by Rand’s critique of bureaucrats and even wrote her a letter expressing his admiration for her work, as recorded in Atlas Shrugged.

The Intersection of Philosophy and Economics

It is worth noting that while Rand categorically rejected libertarianism on philosophical grounds, many libertarians express admiration for her ideas. In contrast, most Objectivists have little patience for libertarians. This reflects the deep philosophical divide between Rand's Objectivism and the broader libertarian tradition, much of which is influenced by Mises' praxeology.

Overall, while both Mises and Rand contributed significantly to libertarian thought, their differences in methodology and philosophy led to a lack of mutual respect. The intersection of philosophy and economics is complex and their contrasting approaches highlight the diversity of thought within the libertarian movement.