The
novel metabolic framework of social
analysis that we are outlining here allows the assessment of the capitalist
mode of production not from the theoretically meaningless viewpoint of
“economic science” – which, as we have demonstrated, is an absurdity – but from
a materialist and immanentist
standpoint which is conscious of its political foundations without, in its
turn, reducing the Political to its humanist and phenomenological – that is to
say, to its transcendentalist
distortion. Because Schumpeter shares the atomicism or methodological individualism of Neoclassical Political Economy
which seeks to determine “welfare” purely in terms of “individual
contributions”, then it is obvious that he must cling desperately to the
equilibrium model to maintain theoretical – what he calls “scientific” –
consistency for his “economic analysis”. Schumpeter fails to see, however, that
the very fact that we have an “option” as to whether we choose the atomistic or the organicist framework of politico-economic analysis can mean only
one thing: - and that is that the “choice” of theoretical frame-work can only
be ethico-political and never
“scientific” in an absolute or “objective” sense!
This is a point that Max Weber perceived and examined far more
acutely and assiduously than Schumpeter ever did. But Weber committed the
mistake of believing that once a “goal” (Zweck)
was selected according to a “value” (Wert),
then the “means” of achieving that goal (Zweck-rationalitat)
could be prescribed and determined “scientifically”. This then became the basis
of “the science of choice” that Hayek and Robbins theorized for Political
Economy. What none of these theoreticians perceived is that the very selection of the “means for achieving a
goal” is also an ethico-political question – and this is a realization that
quite clearly undermines the entire notion of “scientific rationality”. The end does not justify the means. (Cf. Leo Strauss’s biting
critique of Weber in Natural Right and
History.)
The
aim of the above elucidation is simply to illustrate the absurdity on the part
of Schumpeter of adopting the “methodological individualism” of the Austrian
School – that is, the approach whereby all social concepts must be derived from
individual actions in pursuit of subjective individual interests – in the
context of his proposed dynamisch
analysis of capitalist economic Entwicklung.
The untenability – the absurdity – of this theoretical position becomes starkly
evident once Schumpeter endeavours to shift (and this is a mark of his
intellectual honesty) his analytical frame-work from the Statik to the Dynamik. Let
us see how.
In the previous sections we
established what is the main thrust of our thesis to this point, namely, that
Schumpeter is quite aware of the conceptual inconsistency of the “distinct
processes” of Statik and Dynamik, but he must continue with his
theory of Entwicklung as if they
could be combined, as if they were “distinct processes” of a single “mechanism or process of economic change”(Veranderungsmechanismus) – because
otherwise, without the assistance of Statik
analysis, he could not present the Dynamik
as a “pure economic theory of economic
change” as a consequence of the “indeterminateness
of pricing”. As the following extract shows, despite being aware that the
logico-mathematical framework of equilibrium analysis is wholly inapplicable to
his Dynamik, from beginning to end Schumpeter
always held fast to the “centrality of
the problem of equilibrium…. as the foundation to the claim of economics to be
a science”, for the almost exclusive reason that it is the only means of
lending “exactitude” to economic analysis:
Fast
möchte ich sagen, dass die konkreten Resultate für meinen Zweck von nur
sekundärer Bedeutung sind. Jedenfalls strebe ich, wie gesagt, nicht
systematische Vollständigkeit an. Kur eine verhältnismäßig kleine Zahl von
grundlegenden Sätzen soll vorgeführt werden. Im Zentrum steht das Gleichgewichtsproblem,
dessen Bedeutung vom Standpunkte praktischer Anwendungen der Theorie nur
gering, das aber fundamental für die
Wissenschaft ist. In Deutschland ist ihm nicht hinlängliche Beachtung
geschenkt worden und es ist von Wichtigkeit hervorzuheben, daß es die
Basis unseres exakten Systemes ist.
Die Tausch-, Preis-und Geldtheorie und deren wichtigste Anwendung, die exakte Verteilungstheorie, basieren
darauf und ihnen ist der größte Teil der folgenden Ausführungen gewidmet. Diese
Dinge bilden jenen Teil der Nationalökonomie, der für exakte Behandlung reif und dem eine solche bisher zuteil geworden
ist.
Meine
Darstellung beruht auf der fundamentalen Scheidung zwischen „Statik" und
„Dynamik" der Volkswirtschaft, ein Punkt, dessen Bedeutung nicht genug
betont werden kann. Die Methoden der
reinen Ökonomie reichen vorläufig nur für die erstere aus, und nur für die
erstere gelten ihre wichtigsten Resultate. Die „Dynamik" ist in jeder Beziehung etwas von der „Statik"
völlig verschiedenes, methodisch ebenso wie inhaltlich. Gewiß ist jene
Scheidung nicht neu. (Das Wesen,
Vorwort.)
The methods of pure economics,
claims Schumpeter, apply most fully and yield their best and most important
results only for Statik analysis;
they are separate in “nature and content” from those of Dynamik analysis. Nevertheless, he does not see the necessity of discarding
the “pure laws of economics” on what would be the very valid and
incontrovertible ground that if such “laws” are in conflict with the
theoretical necessity for any valid economic theory to be able to comprehend
“economic change”, then those “pure laws of economics” must be completely
spurious! Instead, Schumpeter is quite happy to go along with the pretence that
Statik and Dynamik can co-exist.
We will examine closely the
methodological and ultimately political reasons – or prejudices, if you like –
behind Schumpeter’s atavistic attachment to Walrasian equilibrium in a later
section. Yet we may claim to have demonstrated already why in reality economics
can be said to be “scientific” only to
the extent that it acknowledges its ethico-political
origins – because otherwise it degenerates into the logico-mathematical
tautology of Walrasian equilibrium or else, in the case in which the ethico-political element becomes
absolute and millenarian, into a prophetic teleology or, to be more precise,
either into a conceptual hypostasis or else into an eschatology. To repeat:
despite the fact that Schumpeter clearly perceives by this stage of his
analysis the untenable status of the conceptual elements he has adopted – most
importantly, the conceptual inconsistency of Statik and Dynamik -, he
is nevertheless unwilling to jettison the deterministic framework of
neoclassical equilibrium theory. Conversely put,
despite his staunch reluctance to acknowledge his departure from the “scientific” logico-mathematical mechanical
paradigm of Neoclassical and Walrasian equilibrium analysis, what Schumpeter
has clearly introduced with his Dynamik
is precisely this ethico-political
dimension in economic theory that effectively transforms (to invert Lenin’s
most incorrect dictum) economics into
a specific concentrate of politics. But we ought to point out at
this juncture that by “politics” we do not mean a wholly “ideological” or
purely “ethical” sphere. Economics is a concentrate of politics only if by
“economics” we mean “the theory” of social relations of production. But the
actual real relations of production are “political” also in a “physio-logical”,
and not just an ideo-logical, sense.
The crucial point that was
absolutely essential to Schumpeter’s reasoning behind the need for a Dynamik to correct the unreality of the Statik was that the latter artificially
separated “the economic system” as a collection of atomistic individuals
co-ordinated externally like inert bodies under the laws of mechanics from
other spheres of social life. Therefore, the Statik treated the economic system as an independent “totality”, as
a “closed system”, with its own mechanical or “scientific” logico-mathematical
operation. Paradoxically, by seeking to demonstrate that the sphere of “pure economic
theory” can also produce endogenously “innovations” that have far-reaching
consequences for other spheres of social life – principally science and
technology -, Schumpeter was already pointing to the fact that this
“separation” of “the social process” was entirely artificial and that, as he
himself comprehensively put it, “the
social process is really one indivisible whole”.
Yet in this formulation lay
hidden a fallacy that Schumpeter most certainly committed. What Schumpeter
meant to do with the Dynamik was to
theorize an “economic system” that could mutate “from within”, through the “innovative” decisions and actions of
true “economic agents”. Yet we have shown that his theory of economic
development refers to economic agents as atomistic individuals operating within
an “economic system” that is seen as a “totality”, that is, without reference
to the physical environment with which this presumed “system” or “totality”
must metabolize and therefore cannot remain as a “closed system” or “totality”! Quite evidently, Schumpeter neglected
this essential fact – though admittedly a difficult one to theorize - in his
transition from Statik to Dynamik: to the extent that the members
of a living organic community can
influence or mutate its metabolic interaction with its physical environment, to
that extent the decisions and actions of the members of such a living organism
cannot be theorized as “individual decisions and actions” that can be
“measured” by any “scientific” or “objective” absolute standard as if such a
living organism could be analyzed or theorized as a “closed system” or in its
“totality”.
Schumpeter’s Dynamik, as we have shown, can be theorised only in an organicist framework and not in an atomistic one – because there can be no
“Dynamik”, no mutation or evolution,
no meta-morphosis, in an economic
system whose “science” can determine only “relative values” between its
“individual” components. Evolution in
the Schumpeterian sense of Entwicklung
can be understood and have meaning only from the standpoint of a living organic community for the simple
reason that the mutation of the
economic system can be judged as such – as a “mutation”, as a “meta-morphosis”
– only with regard to a pro-ductive
frame of reference – only as “meta-bolism”
– and not as a “system” or a “totality” whose internal values and prices can be
determined objectively (in an absolute “scientific” sense) - not as “stasis”, as is the case for equilibrium
theory and indeed also for Classical Political Economy. The organic community
can be trans-formed “from within” by
its economic agents, but this trans-formation
can be com-prehended only with regard
to pro-duction, that is, only with
regard to how this living organism metabolizes
with its physical environment of which it is an unseverable and indissoluble part.
This
is a realisation of the highest importance for social theory and for our
critique of bourgeois economic theory, - and the reason why we are insisting on
this point to lengths that may seem extreme to some. In the specific case
concerning Schumpeter’s Theory of
Economic Development, this point is absolutely vital because it constitutes
the central and fatal plank of our critique of his entire theoretical
framework. What we are saying here is that economic relations cannot be
regarded as pure relations of “exchange between individuals” – whether this be
exchange of goods, of plans, or of ideas -, but are and must be theorised as social relations of pro-duction. They must include the
immanently physio-logical reality of human living activity.
What
this means is that what is most important in social life is not so much how
“the product” is distributed between
individuals and classes. By far more important instead is precisely what is produced and how it is produced! Human reality must
be theorised by taking into account not merely the “inter-personal” or
psychological relations between individuals or classes, but above all by
considering how human beings satisfy and produce their needs by interacting
metabolically with their environment. The question of “physis”, (what Heidegger called “the question of the thing” – die Frage nach dem Ding) is vital to a
truly revolutionary praxis because the critique of capitalism must invest more
than just the “unequal distribution of the product”: it must be concerned above all with what the product is and how it is
produced!
Once
again, this is so because human being
taken phylogenetically cannot be “separated” from its physical environment.
Human praxis must not be “reified” into “subjective” concepts that hypostatise
it into hieroglyphic “values”: it must be regarded as “living activity”. Without
the essential “metabolic interaction” of human beings not just with one another
but with their physical environment economic relations would boil down to mere
exchange, to mere inter-personal relations that concern psychology and ethics
rather than the production and satisfaction of human needs. We would be bound
to the sphere of the Kantian Sollen (‘Ought’)
which is antinomically separated from the sphere of the Sein (‘Is’) precisely because human being is regarded
contemplatively, philosophisch -
transcendentally rather than immanently. This is the interpretative key to our
immanentist approach to social theory and praxis as against the transcendentalism
of bourgeois economic theory.
(Lucio Colletti, in Ideologia e
Societa’ at p.17, remarks on how Marx’s ability to combine economic facts and theory
in one indissolubly unified inquiry – something that attracted Schumpeter’s
greatest admiration – was due precisely to this strict connection in Marxian
economic theory between the interpersonal human side and the relation of human
beings as a species to their physical environment, in such a way that economics
is never seen as a question of mere “exchange” but is indeed treated as a
theorisation of the satisfaction of physiological human needs in which “pro-duction”
– not “exchange”! – is the most important aspect. Bourgeois economic theory, Classical
and Neoclassical, must do away with the sphere of production for the simple
reason that “economics” is seen as a “neutral science”, one in which the only
possible “facts” that can interfere with its “laws” are “political” and can
affect only the “distribution of goods”, not “the making of pro-ducts”. And
that is why, as Schumpeter genially observes [in Capitalism, Socialism and
Democracy] orthodox economic theory can abstract from “economic facts” and
concentrate on “pure economic laws”! The process of production, therefore, is
seen as “technology” – that is, as a “neutral scientific process”, and not as
the very embodiment of political antagonism over the production and
satisfaction of human needs. Our next section will be devoted entirely to these
theoretical matters that arise from this realisation – the endogeneity of the
methods of production to “the capitalist
economic system” – that provoked Schumpeter’s shift from Statik to Dynamik.)
As we are about to demonstrate,
Schumpeter’s conception of the Innovationsprozess
as the “transformation mechanism” of the capitalist economy is entirely
one-sided because, for one, it attributes the transformation of the capitalist
economy to the “innovative” or “creatively destructive” initiative and Individualitat – the “Spirit”! – of the
Enterpreneur and leaves to one side the political antagonism that induces capitalist innovation and is contained by and in it! And for
another because once we accept that capitalism amounts to a process of
“creative destruction” due to the “innovative or creative individuality” of
entrepreneurs, then there is simply no way how this oppressive economic system
can ever be destroyed - “creatively” or not! – and be replaced with a superior
system of production and satisfaction of human needs.
Within these premises, because
Schumpeter treats the organic community as a totality that can evolve endogenously but then fails to consider
its metabolic change, he ends up with a framework of economic analysis in which
there is conflict between the individual components of the economic system but
there can be no “resolution” or “supersession” of this conflict. There is a pendulum in and out of equilibrium, but
no dialectical spiral! In
Schumpeter’s Entwurf, there is
conflict and opposition between the individual members of the organic community
– and this conflict “drives” the economic system out of its “stasis” and on to
a new equilibrium. But there is no supersession of this pendular movement
between the “static poles” of equilibrium and evolution, competition and
adaptation, Statik and Dynamik, innovation and conservation,
entrepreneur and capitalist, profit and interest. The conflict is never capable
of resolution, it can never be overcome
because “economic activity” is defined as an ineluctable “psychological”
conflict pitting atomistic individual against atomistic individual and
oscillating between the polar opposites. Clearly, here it is not “the facts”
that inform the theory but the theory that jams the facts into the
straitjackets of antithetical concepts. And therefore Schumpeter’s “economic
system” or “social process” can never be examined as a living organic community; it can never escape the “gravitational
centre” of static equilibrium which then sets the “asymptotic limits” of the
theoretical analysis. Equilibrium becomes a negative utopia that can never be
allowed to be reached on pain of bringing society to a complete standstill, to total
paralysis, to stasis; and yet it is a necessary
“tool of analysis” for the ideological transfiguration of the bestial reality
of capitalist exploitation into an “empyrean” of “pure competition” and
“welfare maximisation” or “Pareto optimality”.
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