William Roscher Flashcards
What is the counter-enlightenment?
The German branch included ideas of Germanic Romanticism, rejecting the universal and abstract nature of economic and political theories. The counter-enlightenment denounced the works of classical economists and the methodologies that came from them, namely Smith and Smithanismus tradition, Ricardo, and J.S. Mill.
What is Roscher’s concept of the ‘Volk Economy’?
Roscher theorised the national economy acting as a collective, centralising the state as the key economic actor. The organism’s (state) behaviour is connected to its cultural history and requires continual care and attention to thrive.
Economy emerges with the people – not independent
Economic phenomena are interconnected and cannot be understood in an abstract context (Holism)
Use statistics to understand economic behaviour – not theory
What areas does Roscher view as defining the economic order?
Roscher identifies that the economic order emerges from formal (government policy) and informal (societal norms and traditions) channels
It is important to highlight informal influences as it informs government policies and guides national economic behaviour
Why does Roscher criticise abstract models?
The economy is a complex phenomenon with multiple moving parts, making it difficult to distinguish the causes from the effects
Therefore, it is more important to focus on issues in the economy in a holistic way, taking into account all of the possible factors
It is ineffective to take parts of the economy out of its context and place them within an abstract model – drawing possible conclusions that are wrong/irrelevant to its context
Roscher uses a metaphor of the human body to demonstrate the complexity of the economy – connected to the work of physiocrats (physicians)
Does Roscher view the economy as natural or man-made?
Roscher believes that the economy is a completely manmade phenomenon and, as such, can only be truly understood in connection to the culture that created it (the organism)
Not connected to a universal doctrine of philosophy
His philosophy is in direct contradiction to the belief of Adam Smith, who argued that human behaviours such as self-interest are the driving force of the economy
Closer aligned with Marx’s historically conditioned economic systems and List’s focuses on national context and development stages
What was Roscher’s connection to the German historical school?
Roscher, along with Karl Knies and Bruno Hildebrand, were the key founders of the early Germanic school that later became the Historical School under von Schmoller.
The school challenged the abstract nature of classical economics by claiming that each nation required a different approach depending on its circumstances.
Rocher established the historical method of economic analysis, which includes investigating a state’s historical, legal, political, and cultural aspects.
