Determinism, free will, and the Austrian School of Economics

Abstract

ABSTRACT In this paper I analyse the problem of free will and determinism as it pertains to the Austrian School of Economics. I demonstrate that despite the fact they subscribe to the concept of causality, contemporary Austrians generally reject determinism at the level of human action, thus remaining proponents of what is known as metaphysical libertarianism. However, as I then show, Ludwig von Mises, the founding father of the modern Austrian School, was probably a determinist. My purpose is to test which metaphysical foundations best fit Austrian theory. I come to the conclusion that the economic theory of the Austrian School is consistent both with determinism (compatibilism) and metaphysical libertarianism (incompatibilism). In light of this, the determinist world-view widely embraced by scientists does not threaten the economic theory propounded by the Austrian School.