The Hayek–Sraffa controversy in 1932 – a philosophy of science perspective

Abstract

Analysing the intense controversy between Hayek and Sraffa in 1932, this article throws light on the logical consistency of their arguments and the philosophy of science axioms concerning knowledge, society, and human beings upon which these were based. The purpose is to use the controversy as an example to clarify the elemental preconditions of economic science to validly reach the core of economic theories and thus throw light on their historical and ideological conditions and range and the validity of the knowledge produced. The article uses Imre Lakatos' thoughts on research programmes and formal logic as an analytical tool.

Keywords:

• Hayek
• Sraffa
• philosophy of science
• formal logic

Notes

¹ This quote is from the German edition of Prices and Production, p. 94 (cf. Kurz 2003, p. 425).

² The quote is from “Scientism and the Study of Society” from 1942 to 1944.

³ One could argue here that Hayek thereby makes himself a spokesperson for conceptualism, which means that the general concepts only exist in consciousness, where they are formed by abstraction. Hayek thus seeks to allow room for individuality. This does not contradict, however, his axiomatic assumptions about humanity, market forces, and society, since these are immediately assumed qua the Verstehen doctrine.