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The Mythology of Methodological Collectivism

by Wanjiru Njoya
July 9, 2025
in Finance
Reading Time: 7 mins read
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In his guide, The Final Basis of Financial Science, Ludwig von Mises rejects the “mythology of methodological collectivism.” Collectivist mythology supposes that as a result of people are members of teams and type themselves into societies, human motion is finest understood as “social motion.” Collectivists clarify particular person decisions—or the historic occasions wherein people had been concerned—totally by reference to their group. 

Mises offers the examples of “teams of individuals descended from the identical ancestry or these of individuals dwelling in the identical geographical space.” Historical past is then defined as the result of the collective will, collective choice, and collective motion within the related time and place. Thus, for instance, collectivists depict an individual’s worldview as a mirrored image of his ethnicity, nationality, social standing, financial class, and related group traits. For a similar cause it has turn into customary to accord authorized rights primarily based on group identification, on the idea that folks’s expertise of life is primarily decided by their membership of the group to which such particular rights are accorded.

Mises rejects that view. He explains,

The collectivistic technique is anthropomorphic, because it merely takes it without any consideration that every one ideas of the motion of people could be utilized to these of the collectives. It doesn’t see that every one collectives are the product of a particular manner wherein people act; they’re an offshoot of concepts figuring out the conduct of people.

People might certainly typically act by reference to what different folks of their group are doing, exercising no impartial judgement of their very own, in what is often known as “herd” conduct, however this doesn’t imply human conduct is set by the herd. The herd is constituted by people, every of whom acts in accordance with the conduct noticed. It nonetheless stays the selection, or choice, or conduct, of the person who acts in conformity with the views of others and matches his conduct to that of others as depicted in social norms or group tendencies. Mises explains:

In finding out the actions of people, we study additionally all the things in regards to the collectives and society. For the collective has no existence and actuality however within the actions of people. It comes into existence by concepts that transfer people to behave as members of a particular group and goes out of existence when the persuasive energy of those concepts subsides. The one approach to a cognition of collectives is the evaluation of the conduct of its members.

Collectivists are additionally mistaken to view human motion as merely an instinctive or pure response to the prevailing atmosphere, within the reflexive manner that crops reply to the atmosphere wherein they’re rooted. Human beings are definitely influenced by their social, political, or financial atmosphere, however this doesn’t imply that their actions are decided or dictated by that atmosphere. It follows that the alternatives or actions of people who dissent from the bulk aren’t someway invalid, nor do they name for an evidence, merely as a result of they don’t conform to the group. Collectivists view such dissenting conduct as inexplicable, typically claiming that the dissenter “will need to have been paid” or should be affected by “self-hate” or “false consciousness.” However it isn’t inexplicable for a person to disagree with the remainder of his “group” or to reply to his materials situations in a fashion that differs from how most different folks of his group reply. As Mises explains, we might observe that most individuals typically do fall in with their group, nevertheless it doesn’t comply with that man is inevitably pushed to fall in along with his group with out the train of any will on his half. To carry that view could be to erase a vital attribute of human nature.

An instance could also be taken from the racial identification debates. In an article titled “Are Black voters deserting Biden?” we study that almost all black individuals are loyal to the Democratic Occasion:

Throughout this month’s dialogue of younger Black voters hosted by Brookings as a part of their Race, Prosperity and Inclusion Initiative, Howard College political science professor Marcus Board, Jr. stated that the conventional Republican Black vote in presidential contests ranges from eight p.c to fifteen%… these numbers replicate a degree of loyalty to the Democratic Occasion that has existed because the late Sixties and continues to at the present time.

The loyalty of black voters to the Democratic Occasion at present follows the identical sample because the earlier loyalty of black voters to the Republican Occasion, which prevailed from 1865 till the late Sixties when the “black vote” swung to the Democratic Occasion. The sample of black folks voting as a bloc is corroborated by “historic survey knowledge that exhibits someplace between 83% and 86% of all Black voters have recognized with the Democratic celebration since 1994.” Dissenting black voters—the 8 to fifteen p.c—are seen by collectivists as some type of mysterious discrepancy that requires a sociological rationalization. Why are they not voting with their race? Did somebody pay them to dissent from their racial hive thoughts? Maybe, as former President Joe Biden advised, they “ain’t black”?

These questions befuddle collectivists who can not conceive of a person making his personal resolution about tips on how to vote. Wanting additional again into one other historic instance, it’s typically assumed that opinions of slaves had been inherently decided by whether or not they had been “area slaves” or “home slaves.” In keeping with this view, area slaves desired freedom whereas home slaves had been content material. The merest acquaintance with the historic details exhibits that this rationalization bears little relation to the details. Harsh situations typically pertain indoors, whereas bucolic situations typically pertain within the fields. The slave narratives reveal many cases testifying {that a} brutal slave proprietor would normally not have slaves expressing contentment, not like a benevolent slave proprietor who impressed devotion. Nor does the will for liberty rely totally on one’s materials situations. In essentially the most restrictive of situations there could also be some who relaxation content material, whereas in essentially the most comfy of situations there could also be some who yearn for escape.

Mises clarifies that the significance of methodological individualism doesn’t merely entail rejecting all notions of “we” that folks might use to explain their group identification. He doesn’t deny the significance of group identification, observing in Human Motion that “there are nations, states, and church buildings” however, nonetheless, “no person ever perceived a nation with out perceiving its members.” As a result of “particular actions of people represent the collective,” we perceive the collective by way of a research of particular person motion. He distinguishes completely different makes use of of the idea of “we,” as a result of his concern is with epistemology relatively than with political discourse. He offers the instance of a Canadian who doesn’t personally skate saying, “We’re world’s foremost ice hockey gamers.” On this instance it’s clear what is supposed, and no person would suppose the time period “we” to imply that the speaker personally, plus each single Canadian, is essentially a world class hockey participant. However this conversational use of “we” is just not an acceptable basis for understanding or fixing political or financial issues, nor a justification for guidelines and edicts that prohibit particular person liberty.

Issues come up when neighborhood leaders say what “we” need in an effort to justify harmful coverage prescriptions. For instance, these intent on destroying Accomplice monuments start with the “I” when describing the “hurt” they undergo from the existence of historic monuments:

I obtained my first style of the racist which means behind the Accomplice image after I was simply 5 years previous… Watching movies of Accomplice statues be taken down in locations across the nation, particularly in Richmond, has been an emotional second that provides me chills and holds a private which means.

That could be a clear assertion of non-public expertise. However then comes the coverage prescription that every one the statues should be destroyed, and the narrative of “private which means” surreptitiously shifts to the “we,” to embody the collective expertise of whole generations of black folks:

The emotional ache brought on by Accomplice symbols and imagery is an extension of centuries-worth of trauma from slavery that has been handed down from era to era and exacerbated by police killings of Black folks. The removing of those statues and symbols are reflective of a altering of the guard of who tells America’s historical past that has been festering for a while. It’s no coincidence that Virginia is as soon as once more on the coronary heart of the dialogue because it’s one of many starting chapters in America’s darkish historical past.

On this manner the collective basis of historic group expertise is handled as the muse for coverage interventions. In rejecting methodological collectivism, Mises exposes the defective premise underlying such arguments. In such political debates, folks body their private preferences as a collective demand for “social justice” by depicting the said hurt as one which impacts society as an entire. The usage of “we,” and the declare to talk on behalf of generations of struggling folks, is used as a political fig leaf to masks the absence of any causes for destruction: the one cause given is that it’s going to mollify the offended group.

Mises exhorts us to look deeper than these kinds of political debates in understanding the competition between individualism and collectivism. Rejecting methodological collectivism is just not merely about debating whose pursuits in society ought to prevail in instances the place the pursuits of a person are pitted towards the pursuits of the bulk, however raises a extra elementary query of tips on how to perceive human motion. The basic level is that in all instances, it’s all the time the person who feels, thinks, decides, and acts, not the group. Which means that it’s to particular person views that we glance to determine whether or not the said social “hurt” is actual in any goal sense. The problem right here is just not merely which facet ought to “win” a political contest. At stake is a extra necessary problem regarding how we confirm the reality about historical past and the fact of human expertise. As Mises explains,

The which means of philosophical individualism has been lamentably misinterpreted by the harbingers of collectivism. As they see it, the dilemma is whether or not the considerations—pursuits—of the people ought to rank earlier than these of one of many—arbitrarily chosen—collectives. Nevertheless, the epistemological controversy between individualism and collectivism has no direct reference to this purely political problem. Individualism as a precept of the philosophical, praxeological, and historic evaluation of human motion means the institution of the details that every one actions could be traced again to people and that no scientific technique can achieve figuring out how particular exterior occasions, liable to an outline by the strategies of the pure sciences, produce throughout the human thoughts particular concepts, worth judgments, and volitions. On this sense the person who can’t be dissolved into parts is each the place to begin and the last word given of all endeavors to take care of human motion. (emphasis added)



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