Division of labor and society: the social rationalism of Mises and Destutt de Tracy.
Dorobat, Carmen Elena
I. INTRODUCTION
Social theory, which includes sociology, economics, and political
theory, among others, has had a long and complicated development,
emerging as a distinct field of science only in the 20th century. From
the pre-Enlightenment era to modern and post-modern developments, the
evolution of these disciplines has consistently moved in one particular
direction: from putting forth a worldview and creating overarching
paradigms, towards developing only particular theories that explain only
particular circumstances (Baert and da Silva, 2010). As one consequence
of this trend, economics has gradually diverged from social theory:
economists began using the tools of physical sciences, while other
social theorists had little use for economic theory. Notwithstanding, a
handful of economists have continued to consider economics and social
theory as inseparable. One such case was Ludwig von Mises, perhaps best
known for his comprehensive work on praxeology, i.e. the science of
human action.
Only in the last decade of the 20th century has Mises's social
theory been brought to the attention of modern scholars. In his seminal
1990 article, "Ludwig von Mises as Social Rationalist," Joseph
Salerno argues that Mises elaborated "his own uniquely rationalist
position" (1990, p. 26) on social evolution, different from the
meliorism of liberal Enlightenment and the Hayekian spontaneous order
approach. Salerno expounds a brief and clear summation of Mises's
views, which he calls 'social rationalism': "all social
interactions and relationships are thought out in advance and therefore,
society originates and evolves as a product of reason and teleological
striving ... society is a consciously-devised "strategy,"
"a man-made mode of acting" in the war against scarcity"
(1990, pp. 26-28). In Mises's own words, social evolution
represents "the development of the division of labor" and one
can "trace the origin of everything concerned with society in the
development of the division of labor" (Mises, 1962, pp. 301, 303).
Mises's unique social theory does not appear to have had any
precursors. However, in a lecture delivered in 2005, Salerno briefly
hinted at an early member of the French Liberal School, Destutt de
Tracy, as one author who preceded and shared Mises's rationalist
and catallactic views on society.
Antoine Louis Claude Destutt, Comte de Tracy (1754-1836) was a
French aristocrat of Scottish descent, philosopher and economist, who is
best known for having coined the term ideologic for the science of ideas
(Chisholm, 1911, p. 126). De Tracy belongs to the tradition of the
French Liberal School, whose influence on the development of economics
in France began with the publication of Jean-Baptiste Say's
treatise in 1803, and extended over an entire century, roughly until the
death of Gustave de Molinari in 1912 (Salerno, 1978, p. 65). The
paradigm in which De Tracy and other French liberals operated diverged
significantly from the British Classical School, (1) springing from the
contributions of French physiocrats and having been "nourished by a
long and glorious tradition which reached back through Condillac,
Turgot, Quesnay and Cantillon to the Scholastics" (Salerno, 1978,
p. 66). To this tradition belong also Frederic Bastiat (2007) Michel
Chevalier (1842), Jean-Gustave Courcelle-Seneuil (1858), Ambroise
Clement (1867) and Paul Leroy-Beaulieu (1914).
Scholars have scrutinized in detail De Tracy's philosophical
work on ideology and secularism (Kennedy, 1978; Head, 1985; Byrnes,
1991; Dekens, 2003), and his subjectivist approach and deductive
methodology (Klein, 1985; Salerno, 1988; Patalano, 2015). Further
attention was given to his views on entrepreneurship (Hebert and Link,
2006) or money and banking (Terrell, 2009), his liberal stance on
government policy (Rothbard, 2006; Nemo, 2006; Faccarello, 2010), and
even the impact of his philosophical system on Stendhal's novels
(Alciatore, 1950; Smith, 1956) and J.-B. Say's social analysis
(Forget, 2001).
Yet so far, no historians of thought have been spared to attend to
De Tracy's views on social theory. His ideas on how society evolves
and develops and how this process both originates from and reflects upon
the human condition have suffered a similar fate to Mises's work on
the topic. The purpose of this paper is to address this neglect, and to
connect the contributions of Mises and Destutt de Tracy on social
theory. I use the textual evidence found in the two authors' major
works to flesh out Salerno's insight that De Tracy was a precursor
of Mises's social rationalism.
A close scrutiny of De Tracy's Treatise on Political Economy
and Mises's works, particularly Human Action, highlights striking
similarities between De Tracy's and Mises's contributions,
written more than 130 years apart, although no direct intellectual
lineage connecting the two authors has been documented so far. Joseph
Salerno (1988; 2001) shows that 19th century French liberals influenced
prestigious economists such Carl Menger, Eugen von Bohm-Bawerk, or Knut
Wicksell, and thus De Tracy's ideas could have reached Mises
indirectly. (2) But Mises himself did not cite any precursors of his
thoughts on the matter. The similarities between Mises and de
Tracy's works raise thus some interesting questions: if there is
indeed a filiation of ideas between the two authors, why has it not been
acknowledged by Mises, or discovered later by scholars? Alternatively,
if no such historical connection exists, why have the two authors
developed congruent social theories? Although I do not attempt to answer
either of these questions in the remainder of this paper, mapping the
similarities between Mises and De Tracy's works can constitute a
preliminary note on the subject, to be used as a basis for future
research in answering those questions.
In my analysis, I follow three basic elements of both social
theories, which the authors deal with explicitly: the paradigmatic
foundation, the factors that bring about human association and
cooperation, and the global consequences of these social phenomena. To
this end, the remainder of this paper is structured as follows: I begin
in section II with their views on human will, human action, and
acquiring economic means, and highlight the praxeological foundation the
two authors shared--which could explain many of the similarities between
their theories. Section III delves into the rationalist and catallactic
explanations of the evolution of society, where I argue that for both
Mises and De Tracy, society is a gradual, reinforced development of
economic exchange and division of labor. Section IV discusses the
natural extension of society to a global phenomenon, exploring the
analogous views of Mises and De Tracy on international trade, war, and
peaceful cooperation. Throughout the paper, De Tracy's views are
compared with those of Mises in a systematic, step-bystep exposition. As
I rely extensively on the textual evidence found in the two treatises,
critical analysis is limited to those cases where it facilitates a
better presentation of the arguments.
II. A PRAXEOLOGICAL FOUNDATION
Destutt de Tracy's four-volume treatise Elements of Ideology
was conceived as an exposition of the "complete knowledge of our
intellectual faculties," from which we deduce the only solid
"first principles of all the other branches of our knowledge"
(De Tracy, 2009, p. xx). Understanding what these faculties are is
fundamental, in De Tracy's view, to understanding how social
relations and economic phenomena are established.
De Tracy begins the fourth volume, Treatise on Political Economy
(also called Treatise on Will), by arguing that "we form judgments
of that which we experience, of that which we feel, of that which we
see, in a word of all which affects us; we distinguish the parts,
circumstances, causes and consequences thereof; and this is to judge of
it" (De Tracy, 2009, p. 60). The fundamental difference between
humans and all other merely "sentient" beings De Tracy
identifies as the former's capacity to act, motivated by a rational
will, where intellectual faculties form our knowledge of the world and
inform human judgment. He writes: "man ... is a being willing in
consequence of his impressions and of his knowledge, and acting in
consequence of his will" (De Tracy, 2009, p. 23). Equally, Mises
argues in Human Action that reason is a man's "particular and
characteristic feature," and that "man alone has the faculty
of transforming sensuous stimuli into observation and experience. [and]
alone can arrange his various observations and experiences into a
coherent system" (Mises, 1998, p. 177).
In De Tracy's view, therefore, human volition is one of the
primary intellectual faculties and the fundamental mover of all action.
He further defines human will as "the general and universal faculty
of finding one thing preferable to another, that of being so affected as
to love better such an impression, such a sentiment, such an action,
such a possession, such an object, than such another" (De Tracy,
2009, p. 24). (3) Furthermore, he argues, this "faculty of willing
produces in us the ideas of wants and means, of riches and deprivation,
of rights and duties, of justice and injustice" (De Tracy, 2009, p.
xxv). As a result, De Tracy's investigation of all subsequent
social and economic phenomena--which are the result of human action
directed by volition--begins from the choices of human beings.
Mises also positions human wants as the alpha and omega of any
economic and social system. First, in the very beginning of his magnum
opus, Mises gives a definition of human will similar to De Tracy's:
"Will means nothing else than man's faculty to choose between
different states of affairs, to prefer one, to set aside the other, and
to behave according to the decision made in aiming at the chosen state
and forsaking the other" (Mises, 1998, p. 13). On this precise
definition, which underpins the more universal science of praxeology,
Mises establishes his economic analysis: "Choosing determines all
human decisions.... All ends and all means, both material and ideal
issues, the sublime and the base, the noble and the ignoble, are ranged
in a single row and subjected to a decision which picks out one thing
and sets aside another.... No treatment of economic problems proper can
avoid starting from acts of choice" (Mises, 1998, p. 3).
Human action is for both Mises and De Tracy the meaningful
manifestation of reason and will, the judgment of observations and
experiences thus materialized. De Tracy argues that "in the
employment of our faculties, in our voluntary actions, consists all the
power we have; ...the acts of our will which direct these actions are
the source of all our means" (De Tracy, 2009, p. 38; emphasis
added).
Hence, human beings are not only sentient and willing, but also
able to act in a rational and conscious way. Mises concurs with this
view in his own analysis: human action "is will put into operation
and transformed into an agency, is aiming at ends and goals, is the
ego's meaningful response to stimuli and to the conditions of its
environment, is a person's conscious adjustment to the state of the
universe that determines his life" (Mises, 1998, p. 11).
Both authors also find that what informs human will and thus
motivates human action is the perpetual state of uneasiness in which all
individuals find themselves at any point in time. De Tracy explains that
we always have "the desire of being delivered from that state,
whatsoever it is, in which we actually are; which consequently appears
actually as a state of uneasiness, more or less displeasing. [...] While
it exists it is a manner of being felt and incommodious, and from which
we have consequently a want of being delivered" (De Tracy, 2009, p.
35; emphasis added). (4) Without this uneasiness, and without the
conscious and rational desire to substitute the current state of affairs
for another, human action would not be possible. Mises uses the same
concept in his explanation: "acting man is eager to substitute a
more satisfactory state of affairs for a less satisfactory. His mind
imagines conditions which suit him better, and his action aims at
bringing about this desired state. The incentive that impels a man to
act is always some uneasiness" (Mises, 1998, p. 13; emphasis
added).
Our actions can transform external resources into actual means for
the attainment of ends because we can judge our observations and
experiences, and organize them in a coherent system. This allows us to
understand causal relations between elements of the natural world and
their potential serviceableness to our satisfaction. In thus entering
the sphere of economic science, both Mises and De Tracy emphasize this
causal recognition, through action, as an essential step for material
things to become economic goods--subject to the teleological, rational
plans of men. The French philosopher explains this process as follows:
We do not possess a good field or a good utensil, but because we
have well recognized the properties of the first material, and rendered
easy the manner of making it useful.... It is then always from the
employment of our faculties that all these goods arise. [...] We could
not appropriate one of those beings, nor convert the smallest parcel of
them to our use, but by our action on them and by the employment of our
faculties to this effect (De Tracy, 2009, pp. 38-40; emphasis added).
In a consonant explanation, Mises shows that "a thing becomes
a means when human reason plans to employ it for the attainment of some
end and human action really employs it for this purpose." He
continues: "parts of the external world become means only through
the operation of the human mind and its offshoot, human action"
(Mises, 1998, p. 92).
In brief, human will, the intellectual faculty of choosing between
different states of affairs, motivates human action; and action, in
turn, transforms external things into economic means. In consequence,
economic and social phenomena are the result of this conscious,
rational, and purposeful behavior, where human beings interfere in the
causal relations of the external world to create means for the
satisfaction of their subjective goals.
We can thus argue that both De Tracy and Mises consider human
action as the foundation of economic and social theory proper, (5) and
in this regard we can identify De Tracy as a proto-praxeologist. Let us
now analyze in detail the arguments put forth by Mises and De Tracy for
a rationalist and catallactic view of society.
III. TWO RATIONALIST AND CATALLACTIC VIEWS ON SOCIETY
According to Mises, the fundamental task of any science endeavoring
to determine the origins of society "can only consist in the
demonstration of those factors which can and must result in [human]
association and its progressive intensification" (Mises, 1998, p.
160). Both De Tracy and Mises have in fact been faithful to this
principle in the construction of their theories. They began by
delineating the object of their investigation and their approach, and
continued by explaining the primary factors determining social
evolution. Proceeding from these factors and from the social processes
they engender, they reached a definition of society. Let us now discuss
these steps in turn, and compare Mises and De Tracy's positions
through the available textual evidence.
As we have seen above, human reason allows us to perceive causality
in nature and adjust it for the production of means to achieve our ends.
But man does not--and cannot--survive isolated, simply in relation with
nature. Thus, any social theory must focus on man seen originally as a
social being. De Tracy argues that it would be "superfluous, having
the human species principally in view, to occupy ourselves longer with
beings that should be sentient and willing, but living insulated. Man
cannot exist thus. [...] Man can exist only in society. It is then the
social state, which is our natural state, that with which we ought alone
to occupy ourselves" (De Tracy, 2009, pp. 59-60; xxx).
Correspondingly, Mises argues that "man appeared on the scene of
earthly events as a social being. The isolated asocial man is a
fictitious construction" (Mises, 1998, p. 164).
How should this social state be studied first and foremost? Destutt
de Tracy begins his scrutiny of society "under its economical
condition, that is to say relatively to our most direct wants, and to
the means we have of satisfying them" (De Tracy, 2009, p. 60). Such
an investigation, De Tracy argues, will "lead us surely to estimate
the value and utility of all our actions, to judge of their merits by
their consequences, and consequently of the merit of those sentiments
which determine us to one action rather than another" (De Tracy,
2009, p. 61). Mises too gives primacy to economic considerations in his
analysis of social development, arguing that "man becomes a social
being ... in aiming at an improvement in his own welfare" (Mises,
1998, p. 160). For both Mises and De Tracy, the ultimate reasons for
social evolution are to be found in the economic sphere and thus the
analysis of society must proceed from an economic point of view.
What are then the factors that determine people's decisions to
associate? First, Mises and De Tracy both refer to the rational ability
of human beings to perceive the benefits of their association and
cooperation. De Tracy writes: "It is then impossible that we should
not soon be aware of the utility we may derive from the succour of our
fellow beings; from their assistance in our wants, from the concurrence
of their will, and of their force with ours... always, and every where
[sic]" (2009, p. 60; emphasis added). Or, in Mises's words,
"every step by which an individual substitutes concerted action for
isolated action results in an immediate and recognizable improvement in
his conditions" (Mises, 1998, p. 146; emphasis added).
If men can rationally and consciously choose between two states of
affairs, they are then able to understand the benefits of cooperation in
relation to those of isolated production. In consequence, the
recognition of the benefits of living in a society does not have
anything to do with instincts or happenstance. (6) Man, De Tracy writes,
"has the intellectual means ... to make conventions with his fellow
beings. [and] he alone has a real society" (2009, p. 66). For Mises
as well, "society is the product of thought and will. It does not
exist outside thought and will" (Mises, 1962, p. 291).
Whence do the benefits of cooperation arise? The answer to this is
detailed in Mises's exposition of the Law of Association, which
according to its author "makes us comprehend the tendencies which
resulted in the progressive intensification of human cooperation"
(Mises, 1998, p. 159). Mises argues that cooperation is more productive
than isolated labor for two reasons: "First: the innate inequality
of men with regard to their ability to perform various kinds of labor.
Second: the unequal distribution of the nature-given, nonhuman
opportunities of production on the surface of the earth" (Mises,
1998, p. 157). He further shows that "if and as far as labor under
the division of labor is more productive than isolated labor, and if and
as far as man is able to realize this fact, human action itself tends
toward cooperation and association; man becomes a social being"
(Mises, 1998, p. 160).
De Tracy agrees with Mises with regards to the factors that
determine the superior productivity of labor under cooperation. The
French philosopher writes: "When several men labour reciprocally
for one another, every one [sic] can devote himself exclusively to the
occupation for which he is fittest, whether from his natural
dispositions or from fortuitous circumstances; and thus he will succeed
better" (De Tracy, 2009, p. 67). (7) This social cooperation can
also be understood, as Destutt de Tracy defines it, as an exchange of
occupations: "[a man] exchanges one manner of occupying himself
against another, which becomes more advantageous to him than the other
would have been. [...] By the effect of social combinations, and by the
separation of the different kinds of occupation, which is its
consequence, every one devotes himself to a particular kind of
industry" (De Tracy, 2009, pp. 61, 79). This exchange of
occupations, always beneficial for both parties and undertaken precisely
because men perceive and understand these benefits, brings about
specialization or "what is called the division of labour, which in
civilised society is sometimes carried to an inconceivable point, and
always with advantage" (De Tracy, 2009, p. 67).
Under these circumstances, what is society? Both authors'
definitions are worth quoting at length:
I do not fear to announce it. Society is purely and solely a
continual series of exchanges. It is never any thing [sic] else, in any
epoch of its duration, from its commencement the most unformed, to its
greatest perfection. And this is the greatest eulogy we can give to it,
for exchange is an admirable transaction, in which the two contracting
parties always both gain (De Tracy, 2009, p. 61).
Equally for Mises (1998, p. 143), society is "division of
labor and combination of labor,"
an outcome of human action ... the outcome of a purposeful
utilization of a universal law determining cosmic becoming, viz., the
higher productivity of the division of labor. As with every instance of
action, the recognition of the laws of nature is put into the service of
man's efforts to improve his conditions (Mises, 1998, p. 145).
[...] seen from the point of view of the individual, society is the
great means for the attainment of all his ends ... [where] each
participant sees the other partner's success as a means for the
attainment of his own (Mises, 1998, pp. 164, 168).
The two authors also show that division of labor and specialization
go, in time, through a process of intensification. According to De
Tracy, the great benefits of society "augment in an incalculable
ratio, in proportion as they are perfected, and every degree of
amelioration, in the social order, adds still to the possibility of
increasing and better using them" (De Tracy, 2009, pp. 67-68). Or,
in Mises's words, division of labor "is itself a factor
bringing about differentiation. [which] intensifies the innate
inequality of men. [...] Vocational types emerge, people become
specialists" (Mises, 1998, p. 164).
Last but not least, there is also a remarkable similarity between
the two authors' critiques of alternative social theories. Destutt
de Tracy comments in passing on Smith's concept of "propensity
to exchange," drawing attention to the importance of understanding
cooperation as rational and purposeful, and not spontaneous or
accidental. He writes: "Smith. is the first who has remarked that
man alone makes exchanges, properly speaking. [...] I regret that in
remarking this fact he has not sought its cause with more curiosity. It
was not for the author of the theory of moral sentiments to regard as
useless a scrutiny of the operations of our understanding" (De
Tracy, 2009, p. 66). De Tracy also charitably interprets Rousseau's
social contract theory, elegantly reconciling it with his own view of
society as a catallactic process: "It is evident [people] could not
live together, if by a convention formal or tacit they did not promise
each other, reciprocally, surety. Well! this convention is a real
exchange; every one renounces a certain manner of employing his force,
and receives in return the same sacrifice on the part of all the
others" (De Tracy, 2009, p. 61).
Both remarks are echoed by Mises, who is, however, more dismissive
of Rousseau's theory. Mises's critical views are contained in
the chapter on society and the law of association in Human Action, where
he argues,
In order to comprehend why man did not remain solitary... we do not
need to have recourse to... the empty hypostasis of an innate urge
toward association. Neither are we forced to assume that the isolated
individuals or primitive hordes one day pledged themselves by a contract
to establish social bonds. The factor that brought about primitive
society and daily works toward its progressive intensification is human
action that is animated by the insight into the higher productivity of
labor achieved under the division of labor (Mises, 1998, pp. 159-160).
IV. THE INTERNATIONAL DIVISION OF LABOR
The previous two sections have shown that according to Destutt de
Tracy and Ludwig von Mises, society evolves through voluntary economic
interactions between individuals, in which everybody rationally and
purposefully strives for their own rightly understood interest. The two
rationalist and catallactic theories of social evolution, written 130
years apart, can thus be briefly summarized in one central definition:
society represents the complex inter-human relationships which result
from the purposeful recognition of the mutual benefits of economic
cooperation. In this view, division of labor and society are equivalent.
"Commerce is the whole of society," writes Destutt de Tracy,
because "society from its origin is essentially nothing but a
continual commerce, a perpetual series of exchanges of every kind"
(De Tracy, 2009, pp. 66, 98).
Let us now discuss the global consequences of social cooperation
and of the progressive intensification of social and economic bonds
identified by the two authors.
Destutt de Tracy and Mises trace in their writings the gradual
development of society from the smallest areas to a global dimension.
According to De Tracy, division of labor and commerce unite "in the
first place inhabitants of the same canton. Then the different cantons
of the same country, and finally different nations" (De Tracy,
2009, p. xxxiii). In the same way, Mises argues that society develops
"subjectively by enlarging its membership.... Originally confined
to the narrowest circles of people, to immediate neighbors, the division
of labour gradually becomes more general until it eventually includes
all mankind" (Mises, 1962, p. 314).
As a logical consequence of this reasoning, international trade is
to be simply understood as the international division of labor. De Tracy
writes that "the greatest advantage of external commerce, the only
one meriting attention, is its giving a greater development to that
which is internal" (De Tracy, 2009, p. xxxiii). The purpose of
international trade, De Tracy continues, is "to establish between
different nations the same relations which interior commerce establishes
between different parts of the same nation, to constitute them, if we
may thus speak, in a state of society with one another; to enlarge thus
the extent of market for all, and by this mean increase likewise the
advantages of the interior commerce of every one" (De Tracy, 2009,
p. 101; emphasis added). By the same token, Mises makes a more general,
theoretical point about the separation between theories of domestic and
foreign trade. Mises writes: "there is no basis for seeking a
fundamental difference between the effects of freedom in domestic trade
and in foreign trade. If the mobility of capital and labor internally
differs only in degree from their mobility between countries, then
economic theory can also make no fundamental distinction between the
two" (Mises, 1983, p. 92). (8)
The logical conclusion which follows from the fact that
international exchange is the natural extension of local cooperation is
that international trade is necessarily beneficial to all parties
involved in transactions across national borders. Mises puts it briefly
and clearly: "The international division of labor is a more
efficient system of production than is the economic autarky of every
nation. The same amount of labor and of material factors of production
yields a higher output. This surplus production benefits everyone
concerned" (Mises, 2010, p. 73). De Tracy also describes the
benefits of international commerce as "owing to the better
employment of every local advantage and of the faculties of every
individual, without a necessity for [any] nation to have made the
smallest profit at the expense of any other nation" (De Tracy,
2009, p. 100).
Notwithstanding these benefits of social cooperation, both De Tracy
and Mises acknowledge with regret that men have many times in history
tried to hamper its development through numerous economic and military
conflicts. These conflicts undermine the basic premise of social
cooperation, i.e. its peaceful, voluntary character. Destutt de Tracy
laments the fact that amongst "the efforts of men, for the
amelioration of their lot ... always a great portion of the human power
has been employed in hindering the progress of the other ... [and] many
times perhaps all has been lost and destroyed, even the knowledge
acquired, even the capacity of re-commencing that which had been already
done" (De Tracy, 2009, p. 65). Mises also asserts that "when
men fight against men... there is, between the fighting parties,
reciprocal effect and mutual relation, but no society" (Mises,
1998, p. 168).
At the same time, both Mises and De Tracy reveal that the
progressive intensification of division of labor and international
cooperation remain the surest ways to offset these anti-social
initiatives. Mises, for example, explains that "all waging of war
is dependent on the state of the division of labor reached at the time.
Autarkic economies can go to war against each other; the individual
parts of a labor and trade community can do so, however only insofar as
they are in a position to go back to autarky. For that reason, with the
progress of the division of labor we see the number of wars and battles
diminishing ever more and more" (Mises, 1983, p. 182). It is likely
De Tracy has similar arguments in mind when, continuing his discussion
on the effects of war, he optimistically comforts his readers that there
are "many reasons we ought to be assured against the fear of such
misfortunes in future" (De Tracy, 2009, p. 65).
Government intervention remains, however, the one danger against
which human society must fight from within, and to the effects of which
it is nowadays more exposed than ever. As laissezfaire political
economists, both De Tracy and Mises repeatedly caution readers against
the perils of partial or total state control over market prices. Through
either conspicuous or subtle means-- such as price controls or
alterations in the purchasing power of money respectively--governments
make economic organization based on the division of labor more and more
impracticable.
Destutt de Tracy described the ultimate consequences of these
actions as a world in which "society ceases and universal
brigandage begins.... All trades are abandoned. There is no longer
possibility of living on the produce of regular industry: every one
subsists on what he can conceal, or on what he can lay his hands, as in
an enemy's country.... We may say in the strictest sense, that
society is dissolved; for there is [sic] no longer any free
exchanges" (De Tracy, 2009, p. 113). Mises also believed that
sustained government intervention in the structure of money prices could
not be accomplished "without overthrowing the system of social
division of labor" (Mises, 1953, p. 247). He argued that "it
is the social spirit, the spirit of social co-operation, which forms,
develops, and upholds societies. Once it is lost, the society falls
apart again. The death of a nation is social retrogression, the decline
from the division of labour to self-sufficiency. The social organism
disintegrates into the cells from which it began. Man remains, but
society dies" (Mises, 1962, p. 309). (9)
V. CONCLUSION
The purpose of this paper was to offer a preliminary note on some
important similarities between Destutt de Tracy and Mises's
theories on social evolution. As we have seen, the two authors share a
praxeological foundation for their theories, i.e. they understand human
action, informed by human reason, as the prime mover of all economic and
social phenomena. Consequently, both Mises and Destutt de Tracy advanced
a catallactic and rationalist view of social evolution, in which society
is the outcome of purposeful human behavior, of the rational discovery
of the benefits of association and cooperation. For both authors,
society was synonymous with division of labor and free economic
exchange.
It remains a task for future research in the history of thought to
establish whether Destutt de Tracy's Treatise on Political Economy
should be considered the 'locus classicus' of the social
rationalism which found its fullest expression in Mises's Human
Action. This investigation should also be extended to reveal the yet
undocumented influence of Destutt de Tracy on Misesian thought, as well
as to assess the importance of social rationalism relative to other
social theories. Yet even without a documented historical and
intellectual link between the works of Mises and Destutt de Tracy, the
contributions of both authors retain their originality and uniqueness in
a panoply of social theories that originate outside the teleological
realm of human rationality and economic cooperation.
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(1) By the 20th century, French economists had been exiled in a
dark corner of the history of economic thought, wrongly dismissed as
pamphleteers and popularizers of British classical economics. However,
Rothbard (2006) has extensively shown that French liberal thought had
not been an uninformed apology for British laissez-faire, but had
important contributions to economic theory. Salerno (2001) also
established that institutional factors--such as an unfavorable change in
educational policies in France--had led the School into disrepute.
Subsequent research (Hulsmann, 2001; Thornton, 2001) added evidence to
Salerno and Rothbard's original claims, praising the contributions
of French liberals on topics such as methodology, theory of value,
entrepreneurship, and capital theory.
(2) Hulsmann (2007, p. 112) shows that Condillac's treatise,
Commerce and Government, has been one of the main sources of inspiration
for Carl Menger's works, who was fluent in French. He also argues
that Mises "continued the tradition of the British classical
economists and of the great eighteenth- and nineteenth-century French
economistes" (Hulsmann, 2007, p. 87).
(3) De Tracy's definition of human will also indicates that
his subsequent theory of exchange in the division of labor, discussed
below, was underpinned by elements of a subjective value theory. For a
brief explanation of De Tracy's views on subjective value--which he
had acquired from J.-B. Say--see Terrell (2009, pp. ii-iv).
(4) In the French edition of his treatise, published originally in
1823, Destutt de Tracy describes "uneasiness" using the French
term "malaise," which can be defined as a feeling of general
discomfort or unease. This is also the term used in the French
translations of Mises's Human Action. Cf. De Tracy (2011 [1823]).
(5) Rothbard (2006, I: 4; p. 7) explains that "for de Tracy,
this 'science of human understanding' is the basic foundation
for all the human sciences... the discipline studying all forms of human
action, a study meant to be a respecter of individuals and their
interaction."
(6) Forget (2001) argues that De Tracy's ideologie--which
influenced J.-B. Say to reject Smith's spontaneous order social
analysis--"emphatically reject[ed] the idea that social
institutions evolve and develop as an unplanned response to the
uncoordinated behavior of many discrete and self-interested agents"
(Forget, 2001, p. 194; emphasis added). However, Forget seems to
misconstrue De Tracy's doubts about the spontaneous order of
society as a call for social planning by a legislator or an educator
(cf. Forget, 2001, 207-208). The more plausible interpretation, given
the evidence in this paper as well as De Tracy's skepticism of
government action throughout his body of work, is that his social
analysis fits squarely with Mises's social rationalism, in which
society is neither centrally planned, nor accidental, but the purposeful
outcome of many discrete rational decisions to associate and cooperate.
(7) De Tracy argues in terms of Smith's absolute advantage,
likely due to the fact that David Ricardo's treatise was published
in 1817, the same year as De Tracy's Treatise. Nevertheless, De
Tracy's view is not as problematic as Smith's, for he writes:
"we are all producers or manufacturers,--because there is no person
so unfortunate as never to do any thing [sic] useful" (De Tracy,
2009, p. 79). We can then charitably reconcile De Tracy's position,
from this point of view, with the comparative advantage approach that
Mises held.
(8) Mises's analysis is more sophisticated than De
Tracy's on this matter, as Mises also challenges the restrictive
assumptions of the Ricardian comparative cost principle. For instance,
Mises argues that
the tendency inheres in free trade to draw labor forces and capital
to the locations of the most favorable natural conditions of production
without regard to political and national boundaries... therefore,
unrestricted free trade must lead to a change in the conditions of
settlement on the entire surface of the earth; from the countries with
less favorable conditions of production capital and labor flow to the
countries with more favorable conditions of production (Mises, 1983, p.
92).
(9) For these ideas, Mises acknowledged an intellectual debt not to
Destutt de Tracy, but to the French sociologist Jean Izoulet (1895),
from whom both Mises and Herbert Spencer (1860) borrowed the imperfect
analogy between human societies and the 'division of labour'
among cells of biological organisms. Mises, however, qualified this
analogy: "The process that differentiates and integrates
homogeneous cells is completely different from that which led to the
growth of human society out of self-sufficient individuals. In the
second process, reason and will play their part in the coalescence, by
which the previously independent units form a larger unit and become
parts of a whole, whereas the intervention of such forces in the first
process is inconceivable" (Mises 1962, 291).
Carmen Elena Dorobaj:, Ph.D. (carmen.dorobat@coventry.ac.uk) is
Assistant Professor (Lecturer) in International Business at the Coventry
University Business School, U.K.
I wish to thank Joseph Salerno and the participants at the Mises
Institute Summer Fellowship program in 2013 for their insightful
comments on an earlier draft of this paper, as well two anonymous
referees for their helpful suggestions. Any remaining errors are
entirely my own.