Descartes’ Legacy:
Intersubjective Reality, Intrasubjective Theory Elgar Companion to
Economics and Philosophy, editors: John Davix, Alain Marciano and Jochen Runde. London:
Elgar, 2004, pp.403-422. ISBN1 84064
964 X
The origins of this banishment seem incompletely understood. Much has been written about how the desire
to model economics after classical mechanics required the assumption of
economic agents whose individual identities, like Newton’s atoms, are
unchanging and, most especially, impervious to mutual influence. [Mirowski,
1989; Fullbrook, 1996, 1997] But from
where did this unlikely idea about human beings come? And why, when it runs contrary to all known
experience, have so many intelligent and educated people found it
plausible? Does a philosophically
grounded intersubjective alternative exist?
Finding the answers to these questions is a prerequisite for advancing
economics beyond the reign of the neoclassical model of homo economicus. This essay looks for answers in the
histories of modern philosophy and social theory and their relations to
economics. What follows is divided
into three sections. The first
explores the tradition of Western intrasubjective philosophy, the second traces
the development of intersubjective philosophy and social theory, and the
third, in the light of the first two, considers the strange case of
economics. Intrasubjective Philosophy Prior to the Enlightenment, most people enjoyed religious certainty
regarding their notion of self and of their place in the world. But from the Sixteenth Century onward,
secularized conceptions undermined religious ones, depriving the latter of
their self-evident status, and so destroying the certainty regarding self that
had been a common birthright in the West for centuries. René Descartes (1696-1650) began his famous
metaphysical deliberations (Discourse on Method, 1637; Mediations,
1641) at this historical crossroads.
Plagued by existential despair – he felt that even his own existence
fell within “the sphere of the doubtful” - the French philosopher resolved to
overcome it by rediscovering – he knew not yet where – certainty.
I thought it necessary . . . to reject as if utterly false anything in
which I could discover the least grounds for doubt, so that I could find out
if I was left with anything at all which was absolutely indubitable. [Discourse
on Method, part IV]
. . . how do I know that He [an all-powerful God] has not brought it to
pass that there is no earth, no heaven, no extended body, no magnitude, no
place, and that nevertheless they seem to me to exist just exactly as I now
see them. [First Meditation, p. 18]
I shall consider myself as having no hands, no eyes, no flesh, no
blood, nor any senses, yet falsely believing myself to possess all these
things . . . [First Meditation (Haldane an d Ross, p. 19)]
In some spheres the
categorical denial of intersubjectivity continued through the Twentieth
Century. Indeed, with the advent of
the Analytical movement, Descartes’ disembodied philosopher reached new
heights of godliness. Bertrand
Russell, in The Problems of Philosophy (1912), effectively the
movement’s manifesto, first sets out the agenda, then calls for the
development of philosophers capable of realizing it. The job specifications do not fit everyone. For recruits, Russell wants only intellects
capable of “true philosophic contemplation” who will see as
God might see, without a here and now, without hopes and fears,
without the trammels of customary beliefs and traditional prejudices, calmly,
dispassionately, in the sole and exclusive desire of knowledge – knowledge as
impersonal, as purely contemplative, as it is possible for man to
attain. Hence also the free intellect
will value more the abstract and universal knowledge into which the accidents
of private history do not enter, than the knowledge brought by the senses,
and dependent, as such knowledge must be, upon an exclusive and personal
point of view and a body whose sense-organs distort as much as they
reveal. [Russell (1912) 1967, p. 93] Faith in this
atemporal, disembodied and, therefore, intrasubjective self, both as an
ultimate unit of analysis and as constituting the accredited performing
philosopher, underwrites the analytical tradition. It is especially conspicuous in the
tradition’s considerations of “rationality”, as when John Rawls reveals the
foundational presuppositions of his celebrated A Theory of Justice
(1971). The essential point is
that we need an argument showing which principles, if any, free and equal
rational persons would choose . . . My
suggestion is that we think of the original position as the point of view
from which noumenal selves see the world . . . The description of the
original position interprets the point of view of the noumenal selves, . .
. [Rawls 1971, pp. 255-6] For
philosophers, this notion that some individuals possess the means to “see as
God might see”, to attain “the original position” so that their point of view
should then outweigh and invalidate all others holds a powerful attraction,
capable of seducing the best minds, even Bertrand Russell’s. Intersubjective Philosophy and Social Theory At the beginning of
the Nineteenth Century, Georg Hegel (1770-1831) rebelled against the abstract
universalism of the Enlightenment by turning the Cartesian subjective self
inside out. He argued that history
displays a determinate direction and process of development, powered by an
evolving collective Mind of which individual minds are but the finite and
historically determined parts. Hegel’s works include brilliant analyses of
how individual consciousnesses depend on recognition from others and of how
they are socially constructed, and also of how reason is a changing structure
of consciousness rather than an eternal archetype. In the main, however, Hegel’s philosophy
dissolves subjectivity into a collective whole. Under his system, individual subjects are
not so much “inter” related as “sub” related to an historical,
all-transcending and largely determinate totality. This, as explanation, reverses the direction
of causation. Just as the atomistic
Cartesian self underpins methodological individualism, the “Hegelian self”,
and its related notion of an all-encompassing whole, provides the ontological
foundation of methodological holism.
For the realm of human affairs, Hegel, in effect, reversed the
putative direction of causality between the whole and the parts. Intersubjective
philosophy, which, in its modern from, emerged only in the last century,
occupies the ambiguous middle-ground between these Cartesian and Hegelian
extremes. It conceives of the
individual as neither wholly autonomous nor wholly dependent, as neither
wholly closed nor wholly open. This
intrinsic conceptual ambiguity of the intersubjective project accounts in
part for its failure to develop as a well-defined philosophical
movement. Unlike its atomistic and
holistic rivals, intersubjective philosophy, including its social theory
offshoots, does not have categorical certainty at its command with which to
frame pontifical pronouncements. Even
its origins, though recent, are obscure and a little confusing. Although the
phenomenological movement, as founded by the German philosopher Edmund
Husserl (1859-1938) at the beginning of the last century, is generally
recognized as the watershed in the growth of the intersubjective approach to
philosophy, the crucial philosophical moves that made it possible date from
the late 1900s. The first involved
dusting off an old idea, one common to the Scholastics of the Middle
Ages. Philosophers had not always
believed that consciousness was a container in which a person could, like
Descartes, find the their virgin self lurking in some obscure interior
corner, or, like homo economicus, observe their inner self to discover
the data needed to construct their consumer preference map. Descartes’ sharp separation of body and
mind led inevitably to the distinction between external and inner perception
(or Locke’s “sensation” and “reflection”) which, in turn, required the notion
of consciousness as a space where things exist through time and can be
inventoried and measured by some further entity that is never named. Today this seventeenth-century notion of
consciousness remains, alas, the sole version of the truth in most of the
world’s Economics departments. But in
1870s Vienna a very different notion of consciousness was advanced, one that
conceives of consciousness not as a repository but as a relation. This is Franz Brentano’s theory of
intentionality. [1874] Brentano’s theory
states that consciousness is always consciousness of something. Instead of regarding consciousness as a
kind of receptacle holding perceptions, sense data and images, Brentano
taught – and his students included Franz Kafka, Carl Stumpf, Sigmund Freud,
Alexius Meinong, Christain von Ehrenfels, Edmund Husserl, Bertrand Russell,
G. E. Moore, Max Scheler and Martin Heidegger – that consciousness is a relation
that human beings have to objects, material and immaterial, including those
real, imagined and remembered. [Honderich, 1995, p. 104] Every moment of consciousness has something
of which it is conscious.
Brentano’s conception of consciousness as a relation that a being has
to other beings and kinds of being, rather than a separate area of being,
renders nonsensical attempts to look inwards for the self or ego or, indeed,
for consumer preferences. Instead this
view implies that the self – or selves – is, like everything else known in
the world, merely an object of consciousness and thus, given the flow
of consciousness, continually open to reconstruction. Brentano’s principle
of intentionality has a further dimension disruptive of the traditional
metaphysical order. It maintains that
it is the objects themselves – the Coca Cola bottle, the bowl of chili, the
juicy red apple -- which figure in acts of consciousness. This view contravenes philosophy’s
empirical tradition, as well as the Cartesian branch of the continental
tradition, which, as in Hume’s theatre analogy, tends to regard consciousness
as an indirect and passive experience of the world. It is indirect because it holds that when
one looks at the red apple, the actual apple is not the object of
consciousness, but rather a likeness or picture of the apple which appears in
one’s consciousness. Thus, this view
regards perception as only indirectly of things in the world. The principle of intentionality changes
all that. The redness and juiciness of
the apple are no longer “sensations” but rather what is sensed; they are
properties of the apple which consciousness intends, rather than elements of
consciousness representative of those properties. Under this way of thinking, the world is
seen as something through which a consciousness moves and intervenes, and
interacts and transmutes with other consciousnesses and their creations. The other great
demolisher of the Cartesian myth of a stable, coherent, disembodied and
atomistic self, and the person whom Edmund Husserl credited as “the father of
phenomenology”, was Henri Bergson.
Whereas Brentano focused on the nature of consciousness vis-à-vis the
world, Bergson explored its and the self’s relation to time and to the
body. Today Bergson appears as a
paradoxical figure in the history of philosophy. Although little read in the last sixty
years (notwithstanding his current revival), he has had immense influence,
having been widely read, discussed and digested by other philosophers in his
own lifetime (1859 – 1941).
. . . thus
perceptions are born and actions made ready. My body is that which stands out as the
center of the perceptions; my personality is the being to which these
actions must be referred.” [(1896)
1991, p. 47] Rather than regarding
his body as something distinct from his self or “personality”, his body is
him in so far as he is an active person.
His body is the “center “ of the perceptions on the basis of which he
chooses his bodily actions which, in turn, refer back to his self. His body, far from belonging to a distinct
realm of being, is central to and inseparable from how he experiences himself
and how he chooses himself. In short,
his self is embodied. This placement
of the subject visibly and vulnerably in-the-world, when coupled with the
intentionality principle, gave rise to the notion of intersubjectivity. Edmund Husserl brought
together these advances by Brentano and Bergson and made “intersubjectivity”
part of the philosopher’s lexicon. He
recognized that for each of us the phenomenological status of the world is a
reality shared with other human subjects.
We are each integrally linked or embedded in this social reality, and
the linkage is dynamic and diverse.
Let me elaborate. The mind’s embodiment
means that the self exists “out there” as a natural and social entity,
intersubjectively permeable and therefore only partially under our
control. Daily existence brings us in
contact with the Other, both individual and collective others who apprehend
our bodies from perspectives different from our own. Thus, to comprehend one’s self as a worldly
subject/object one needs to adopt the multifarious and shifting perspectives
of others. Furthermore, all our social
acts (and very few of our acts are not social) take place in preexisting and
ever-changing fields of intersubjective meaning. Events are, wrote Husserl, “experienced by each perceiving subject in
a preconstituted intersubjective field of experience, events in which several
human subjects participate” [quoted in Petit 1999, p. 233] Our experiences, including those formative
and reformative of our individual selves, take place inside
intersubjective structures -- genders, races, languages, legends,
histories, governments, fashions, genres, games, news, professions, families,
romances, friendships, etc., etc. --
which we, as autonomous individuals, may modify but which are ontological
prior to each of our individual subjectivities, selves, preferences,
etc.. Nor do the complications of
intersubjectivity for the constitution of our selves stop here. Our social embeddedness is
kaleidoscopic. In the coming and
going of everyday life, as well as in the pursuit of ambitions, we enter and
leave, and simultaneously inhabit different intersubjective fields, micro and
macro, and with diverse and changing sets of people, which exercise their
different influences on who we are.
Finally, the view that intersubjective consciousness is built into
selfhood, that intersubjectivity is an integral aspect of the self as
subject, means that the we-dimension is ontologically fundamental to human
reality. This broadly
intersubjective conception of the human being, the intersubjective self,
that emerged in twentieth-century philosophy carries us a very long way from
Descartes’ notion of consciousness as a private and impenetrable walled-off
sphere, wherein resides a pristine self that commands the certainty of
definition and constancy through time to support the God-like vision of
Russell, the linguistic atomism of the early Wittgenstein, the noumenal self
of Rawls and the well-defined and stable preferences of the neoclassical
economist. The
intersubjective alternative to the Enlightenment’s Cartesian subject moved
philosophy out of the realm of pure logic and pure thought by linking it to
the physical, social and cultural worlds, including the general flux of
experience. As always with
revolutions, this one had unintended and unanticipated consequences, the most
important being that it provided the first adequate philosophical grounding
for social theory.
Not only did the individual inject meaning into the world, but
the world injected meaning into the individual, so that the individual was
immediately social. Defined both by
others and by himself, he was out there in the world, perceiving and being
perceived through his body.” [Poster
1975, p. 148] Of course,
all this is only commonsense. But, as
I have shown, it is a way of seeing the human world that completely
contradicts the philosophical tradition set in motion by the Enlightenment.
The intersubjective self stands far removed from the idea of the
single and unified self or subject presupposed by analytical philosophy and
neoclassical economics. Under the new
way of thinking, one’s view of oneself is neither more real than nor exempt
from the influence of the views that others hold of oneself. Rather than being a simple and given unity,
or even a unity formed on the basis of logical entailment, one’s self is a
synthesis requiring management, upkeep, investment, friends, perhaps even
therapy.
. . . a
world which yields him no true self-consciousness, but only lets him see
himself through the revelation of the other world. It is a peculiar sensation
this double consciousness, this sense of always looking at one’s self though
the eyes of others, of measuring one’s soul by the tape of a world that looks
on in amused contempt and pity. One
ever feels his twoness, -- an American, A Negro; two souls, two thoughts, two
unreconciled strivings; two warring ideals in one dark body, . . . [Du Bois
(1903) 1965, pp. 214-5) Here, in a few words,
Du Bois harnesses together a formidable and formative team of intersubjective
concepts: the self permeated by the social world, the social construction of
race, the social embeddedness of the individual self, embeddedness in
contradictory positions resulting in multiple selves or identities, the
subject-object dichotomy in social relations, embodiment and, of course, the
Other. But what
does this have to do with economics?
Well, consider Du Bois’ s next paragraph where he applies some of these concepts to understanding a situation
of “two unreconciled strivings”. The history of the
American Negro is the history of strife, ---this longing to attain
self-conscious manhood, to merge his double self into a better and true
self. In this merging he wishes
neither of the older selves to be lost.
He would not Africanize America, for America has too much to teach the
world and Africa. He would not bleach
his Negro soul in a flood of white Americanism, for he knows that Negro blood
has a message for the world. He simply
wishes to make it possible for a man to be both a Negro and an American,
without being cursed and spit upon by his fellows, without having the doors
of Opportunity closed roughly in his face. [215] But our perceptions of
economic phenomena have become so conditioned by neoclassicism that the penny
may still not have dropped. So
consider yet another passage, this one first published in 2002 and whose
author and source I will for the moment withhold. . . . dispossessed
races and classes face a Hobbesian choice.
One possibility is to choose an identity that adapts to the dominant
culture. But such an identity is adopted with the knowledge that full
acceptance by members of the dominant culture is unlikely. Such a choice is also likely to be
psychologically costly to oneself since it involves being someone
“different”; family and friends, who are also outside the dominant culture
are likely also to have negative attitudes toward a maverick who has adopted
it. Thus individuals are likely to
feel that they can never fully “pass.” In the paragraph
following this passage its author cites Du Bois’s The Souls of Black Folk,
but, unfortunately, without suggesting any direct indebtedness. The author is George Akerlof, winner in
2001 of what is popularly known as the Nobel Prize for Economics, and the
passage quoted is from the paper he delivered when accepting the prize.
[Akerlof 2002, p. 427] Economics
Akerlof has sought to
show the role that intersubjectively determined group identities play in the
distribution of income and in the shaping of economic agents. This project
deserves every possible encouragement, but it is very far from being based on
a new idea. A central thesis of Simone
de Beauvoir’s The Second Sex and of the materialist school of feminism
(Christine Delphy, Colette Guillaumin, Monique Wittig, Ann Oakley, . . .) is
that gender derives in large part from economic relations, especially
divisions of labor by sex, not only between occupations, but also between
paid and unpaid labor. This feminist
argument is an application of the older and more general hypothesis that
situations of work, including training for them, entail intersubjective effects
that radically shape and reshape individual and groups of workers. A century of neoclassical hegemony seems to
have erased from the profession’s memory the fact that this hypothesis stood
at the origins of modern economics and was fundamental to Adam Smith’s
“principle of division of labour”. It
is worth quoting Smith at length, if only to show that economists, in the
beginning, neither denied intersubjective reality nor were maliciously
disposed toward the great majority of humankind. The difference of
natural talents in different men is, in reality, much less than we are aware
of; and the very different genius which appears to distinguish men of
different professions, when grown up to maturity, is not upon many occasions
so much the cause as the effect of the division of labour. The difference between the most dissimilar
characters, between a philosopher [economist] and a common street porter, for
example, seems to arise not so much from nature as from habit, custom, and
education. When they came into the
world, and for the first six or eight years of their existence, they were
perhaps very much alike, and neither their parents nor play-fellows could
perceive any remarkable difference.
About that age, or soon after, they come to be employed in very
different occupations. The difference
of talents comes then to be taken notice of, and widens by degrees, till at
last the vanity of the philosopher is willing to acknowledge scarce any
resemblance. [Smith, 1776, Book One,
Chapter III. (Smith 1979, p. 120) ] It seems to have gone
almost unnoticed that neoclassical economics turned Smith’s principle of
division of labour upside down.
Instead of the division of labour accounting for differences between
individuals, the neoclassicists claim that the differences are already there
and account for the kinds of jobs and positions in the work hierarchy that
individuals and groups (e.g., races) occupy.
The market, so goes their account, tends toward realizing the maximum
efficient use of scarce resources, including their optimal development. Of course, it is not claimed that this
story holds true in every case, but in the vast majority. This is neoclassicism’s central message:
the “free” market system by and large deploys resources, especially human
ones, in a manner that best develops and utilizes their capacity to generate
output and then pays them the value of their marginal product. According to neoclassicism, the economic
differences between adults are not, as Smith argued, due mainly to the way
the market, for whatever reasons, discriminates between similarly endowed
individuals, but rather to “the difference of natural talents”. This fundamental
disagreement between Smith and the neoclassicists stems from the even more
fundamental one which this essay has been at pains to illuminate. In offering his principle of the division
of labour, Smith assumes, like Du Bois and Beauvoir, that individual
identities, and hence the differences between them, are primarily endogenous
to the socio-economic process, that is, they are intersubjectively determined. He is not, of course, denying the existence
of inherited differences, but rather accepting the fact that the human being
is in large part a socio-economic creature, not only in its behaviour but
also in its making and remaking. The
neoclassicists, on the other hand, have postulated their axioms in the
tradition of high Cartesianism. The
economic agent is assumed -- and the whole logical superstructure of the
neoclassical enterprise stands on this Cartesian assumption -- to enter into
economic relations with other economic agents without being changed by
them. Without this assumption, all of
neoclassical economics’ additive functions across populations of agents are
non-existent. Neoclassicism’s
hypothetical exogenizing of the economic agent resulted in changes in
economics infinitely more fundamental than its abandonment of the labour
theory of value. Firstly, it
effectively walled-off the greater part of the realm of economic phenomena
from scholarly and scientific enquiry.
In the name of axiomatic certainty, which it mistook for science, economics turned its
back on some awkward but central empirical realities. Secondly, this
cognitive disaster led to a moral one.
Its turning its back on all economics phenomena that are not intrasubjective,
that do not conform to its Cartesian metaphysic, gave rise to a spurious
naturalism and the unarticulated but culturally powerful line of racism and
sexism that it logically entails. [Fullbrook 2001] As George Akerlof gently puts it,
“Neoclassical theory suggests that poverty is the reflection of low initial
endowments of human and nonhuman capital.” [Akerlof 2002, p. 412] Poverty, as we all know, is not distributed
evenly between races and sexes. So,
when it is said that poverty reflects the “low initial endowments” of the
people suffering it, a statement is being made about natural differences
between races and sexes.
But as all the physical sciences have their basis more or less
obviously in the general principles of mechanics, so all branches and
divisions of economic science must be pervaded by certain general
principles. It is to the investigation
of such principles – to the tracing out of the mechanics of self-interest
and utility, that this essay has been devoted. The establishment of such a theory is a
necessary preliminary to any definite drafting of the superstructure of the
aggregate science. [emphasis added] [Jevons 1970, p. 50]
Similarly, . . . this pure theory of economics is a science
which resembles the physico-mathematical sciences in every respect. This assertion is new and will seem
strange; but I have just proved it to be true . . . [Walras 1984, p. 71] Walras does
not have just any mathematics in mind, but rather that of classical mechanics. In applying a mathematics to an empirical
domain, the key question for the real scientist is always whether or not the
structures described by the former are isomorphic to those found in the
latter. Today the
question might never violate the thought processes of an economist trained in
a priorism. But for Walras,
trained as a mining engineer, this question would have been at the forefont
of his mind. It is the “proof” of an
isomorphism between the differential calculus of classical mechanics and the
economic phenomena of the market place (and thus also between economic and
mechanical phenomena, i.e., Jevon’s “mechanics of self-interest and utility”)
that Walras sets out to demonstrate at the beginning of his treatise. As he well understood, everything that
follows in his book depends on this “proof”.
Of what does it consist?
Does game theory conceptualize
human agents as intersubjective? In
the main, no. It describes how in
game-like situations agents choose strategies given exogenously fixed
utility functions which represent the agents’ subjectivities. (This is true even of Lewis 1969.) But what about “evolutionary” game theory
(e.g., Samuelson, 2002)? Despite its
name, this appears to be a dead-end for intersubjective analysis. A byproduct of evolutionary biology, where
the “players” are species and genes, its novel feature is that it treats
players as hard-wired with particular strategies and therefore without the
freedom to change, not only their ends, but also their strategic means. A more promising route for
bringing game theory to bear on some subset of intersubjective economic
phenomena is Thomas Schelling’s (1960) “coordination game” approach. André Orléan (2003), seeking to understand
“the inter-subjective and self-referential dynamics” (p. 179) of stock
markets, has used it to achieve what is in effect a formalization of Keynes’s
famous beauty contest parable (1936).
Drawing on Shiller 1991, Orléan shows how a group belief can emerge
autonomously relative to the beliefs of the group’s individual members and
them become part of those individuals’ belief systems. But there is much more
to understanding the role of intersubjectivity in economic reality than
formalization, let alone game theory, can reveal. Recent years have witnessed, despite the
surge in neoclassical fundamentalism, new beginnings and growing
respectability for intersubjective economics.
And the new interest is diverse, not only
geographically but also in terms of research programmes and topics: in France
the French Intersubjectivists [Aglietta and Orléan 2002; Dupuy 1989, 1991, 2002; Levy 2002; Orléan 1989, 1990,
1992, 1998; Thévenot 2002], in the UK the Critical Realists [Fleetwood 1996;
Lawson 1997, 1999; Lewis and Runde 2002], in the U.S. hybrid offshoots of
Critical Realism [Davis 2002], in France, the U.S. and the UK Feminist
Economics [Delphy 1984; Delphy and Leonard 1992; Feiner 1994, Nelson 1995;
Barker and Feiner 2003]; in Switzerland, and elsewhere Experimental Economics
[Fehr and Falk 2002; Fehr and Schmidt 1999], in the UK and US a new wave of
Institutional Economics [Hodgson 1998, 2002; Mayhew 2002], as well as
dispersed and assorted independents [Ackerman 2002; Akerlof 2002; Dow 1990;
Fullbrook 2001, 2002, Hargreaves Heap 2002; Kaul 2002; Ormerod 2002; Rizvi
2002; Sofianou 1995; Stiglitz 2002a; Wynarczyk 2002] Will these and other developments lead to
freeing economics from Descartes’ legacy, enabling it to reconnect with Adam
Smith’s tradition?
End Note 1. There is
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