Is the Austrian School Value-Free? On the Dependence of Austrian Economics on Political Philosophy

Abstract

Austrian economists tend to declare that their economics is value-free. The present article argues that it is not. As we show, the basic conceptual framework employed by Austrian economists in their putatively value-free studies is actually embedded in libertarian political philosophy. Specifically, a major notion of Austrian economic analysis—that is, the notion of free (voluntary) exchange—presupposes Lockean property rights. Accordingly, Austrians define all concepts derivative of free exchange (e.g., free market, socialism, interventionism, calculational chaos, monopoly, social welfare) in terms of just distributions of ownership titles. However, instead of eschewing the value-laden component of their economics, Austrians may openly embrace it, for their theory is naturally predisposed to axiological nonneutrality.