00 - Introduction to Human Action
Ludwig von Mises’ Human Action is a monumental work in economic thought, but its insights go far beyond traditional economics. In this introduction, Mises lays the groundwork for his exploration of praxeology, the science of human action, and challenges the prevailing misconceptions about economics.
This summary distills the key ideas from the introduction, making them accessible to readers unfamiliar with the book.
Economics as a Unique Science
Mises begins by emphasizing that economics is the youngest of all sciences. Unlike other fields that evolved from older disciplines, economics discovered an entirely new domain of study: the interdependence of market phenomena.
For centuries, philosophers and thinkers attempted to understand society using holistic concepts like nation, race, or class. They sought divine or natural laws that dictated humanity’s destiny, often resorting to mystical ideas like the “world soul” or “cunning of nature.”
However, economics shattered these views by demonstrating that human action follows identifiable patterns and regularities, much like natural sciences. This was a radical shift—economics moved from being a normative discipline (telling people what they should do) to a descriptive science that explains how human action operates.
The Birth of Praxeology: A Science of Human Action
For many years, classical economists focused only on market exchanges and material wealth. They treated economics as the study of self-interest and profit motives.
Mises argues that this was too narrow. The real breakthrough came with the subjective theory of value, which recognizes that all human decisions—not just economic ones—are based on individual preferences. This realization led to praxeology, the general science of human choice.
Praxeology expands economics beyond wealth and trade to include all purposeful human actions. Every decision we make—whether about consumption, politics, ethics, or even love—follows the same logical structure. Thus, economics is just one branch of a broader study of human behavior.
The Challenge of Understanding Economics
Despite its scientific nature, economics has faced fierce opposition. The main challenge is epistemology—the question of how we know what we know.
The Methodenstreit: Battle Over Economic Methods
Mises discusses the Methodenstreit, a historic debate between the Austrian School (which he belongs to) and the German Historical School. The latter rejected general economic laws, insisting that each historical period was unique. Similarly, positivists tried to apply the methods of physics to economics, ignoring that human action involves choice and subjective values.
Marxism and Polylogism: Attacks on Economic Knowledge
Marxists argued that every class has its own way of thinking, making economic laws mere “bourgeois ideology.” Other forms of polylogism (such as racial or historicist polylogism) claimed that logic itself differs across cultures and time periods.
Mises refutes these ideas, pointing out that even socialist and nationalist governments rely on the “bourgeois” sciences of physics and engineering. If the laws of physics apply universally, why should economic laws be any different?
The Role of Economics in Society
Critics often claim that economics is “backward” because it hasn’t eliminated poverty, crises, or war. But Mises argues this criticism is misplaced.
The Industrial Revolution and Economic Freedom
Many people mistakenly believe that technological progress happened independently of economic ideas. In reality, capitalism and free markets—inspired by classical economics—allowed for innovation, mass production, and rising living standards. Without the ideological shift towards economic freedom, the industrial revolution would have been impossible.
The Revolt Against Economics
Despite its success, economics has been widely attacked. Figures like Thomas Carlyle dismissed it as a “dismal science,” and Karl Marx saw it as a tool for capitalist exploitation. Today, many politicians and intellectuals continue to ignore economic realities in favor of utopian visions.
Mises warns that civilization itself is at stake. If societies continue rejecting economic reasoning in favor of interventionist policies, they will face decline.
Why Economics Matters
Mises concludes by stressing that economics does not tell people what goals to pursue—it merely explains how different choices lead to different outcomes.
- If we want prosperity, we must understand market principles.
- If we want stability, we must respect economic laws.
- If we ignore economics, we risk social and economic collapse.
For Mises, the fate of modern civilization is tied to economic understanding. This is why Human Action places economic theory within the broader study of praxeology, providing a foundation for understanding all human decision-making.
Final Thoughts
The introduction to Human Action is more than just an entry point to a book—it’s a call to take economics seriously. Mises challenges readers to move beyond ideological biases and recognize the universal laws of human action. Whether you agree or disagree with his conclusions, his insights remain as relevant today as when they were written.