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Methodological Individualism in Historical Analysis

by Wanjiru Njoya
July 1, 2025
in Finance
Reading Time: 6 mins read
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Methodological individualism is greatest recognized for its functions in economics, and its significance for historic evaluation is usually ignored. The principle significance for historic inquiry lies in rejecting the dominant discourse which explains historic occasions purely by reference to collective group id reminiscent of race or class. In response to activist historians, the heritage of a folks is ascertained not from the way it was understood by people, or by the households, neighborhoods, counties, or states with whom such people joined explanation for their very own volition, however is to be selected everybody’s behalf by Marxist-adjacent “consultants” who designate collective group heritage based mostly on folks’s race, class, or nationwide id. For instance, SPLC declares that the cultural heritage of the American South is based on “white supremacy” and that any dissenting views from particular person Southerners on this matter are irrelevant:

The Confederacy was based on the very thought of white supremacy. Whatever the particular person motives of any single historic determine, every Accomplice was concerned in an express mission to protect the indefensible establishment of chattel slavery.

They attribute this view to all Confederates as a collective group, together with those that didn’t personal any slaves and even those that declared slavery to be an ethical and political evil. SPLC explains that the particular circumstances of particular person Confederates are irrelevant, and it is usually irrelevant if they don’t personally uphold the ideas of “white supremacy”:

Our private beliefs can’t change the historical past of the Confederacy, which was based upon a perception in white supremacy—nor can they modify the impact a logo has on others… This concern isn’t in regards to the private motivations of 1 soldier. It’s clear that as a authorities the Confederacy endorsed slavery and white supremacy.

They don’t deny that particular person Southerners might have had a unique view, however they take into account views that dissent from their historic narrative to be irrelevant. They equally aver that every one black folks—being in a situation of oppression and exploitation—can’t be mentioned to have executed something voluntarily no matter whether or not they had been slaves or free. As soon as once more, they don’t declare that there are not any exceptions to this ideological doctrine—their view is that the exceptions are irrelevant. The collective “endorsement of slavery and white supremacy” within the South is derived by SPLC from the speech of 1 man—Accomplice Vice President Alexander Stephens. Considerably, no try is made to grasp the context of his speech, or why he mentioned what he did, as a result of that’s after all deemed to be irrelevant. The query might then be requested why Abraham Lincoln’s endorsement of slavery and white supremacy—expressed in phrases similar to these expressed by Alexander Stephens—just isn’t equally attributed to the American North. The reply stays the identical: it’s not due to something Lincoln mentioned to excuse his personal white supremacist views however reasonably by reference to the collective function already pre-assigned to the Union. SPLC explains: “The distinction is that, in contrast to the Confederacy, these historic figures [in the North] should not usually being honored due to legacies so carefully related to white supremacism and violent race-based oppression.” This self-referential collectivist historic technique attributes “white supremacy” to the American South however not the American North, then depends by itself assertion to assert that the rationale why Alexander Stephens’s phrases regarding racial inequality are vital, whereas the identical phrases uttered by Lincoln should not vital, is as a result of the South is related to white supremacy however the North just isn’t.

That is no solution to perceive historical past. In his article “Methods to Use Methodological Individualism,” Jörg Guido Hülsmann observes that methodological individualism is a crucial technique of historic inquiry. He distinguishes between the function performed by methodological individualism in financial idea and historic inquiry, clarifying the sense through which “methodological individualism is a treasured device for historic evaluation.” Though Hülsmann’s most important purpose is to elucidate the methodology of economics, his feedback on historic evaluation are however very useful in understanding a number of the issues of latest discourse on historical past. A lot will also be realized from the response of Ludwig von Mises to the “varied metaphysical faculties” who criticize Austrian economists for his or her precept that the science of human motion “offers with the actions of particular person males.” These critics insist that society can solely be understood as a collective complete, and that we must always concentrate on “social motion” not “particular person motion.” They argue that, as Mises places it, “man as man is the product of a social evolution.”

One necessary aim in historic inquiry is to determine the “concepts and worth judgments” that influenced particular person motion, to grasp why they took the motion they did, a particularly historic inquiry that goals to determine what Hülsmann calls “contingent causes” of human motion:

. . . the causal chains by which concepts and worth judgments are linked with human motion are contingent. In response to Mises, the elucidation of those contingent causal chains is the particular process of historic analysis.

As Mises explains, “. . . it’s the that means which the appearing people and all those that are touched by their motion attribute to an motion, that determines its character.” Historic inquiry into why folks made the alternatives they did will reveal the affect of many various elements, a few of which can shock us. The historic fact of human decisions and selections can’t be put aside by arguing that no person of that race or class can be anticipated to behave as they did. Additional, historic evaluation can’t set up immutable or invariant legal guidelines by which individuals should essentially act, however can solely verify why explicit people in actual fact acted as they did. We can’t clarify Alexander Stephens’s feedback on racial inequality by saying “he was a slave-owner from Georgia” whereas explaining Abraham Lincoln’s fully comparable feedback on racial inequality by saying “he was married to a lady who inherited slaves from her father, however he was from Illinois so completely different ethical requirements apply.” In that method modern historians try to determine the that means of historic occasions by reference to pre-determined ethical indictments that apply to all members of an outlined group however to no members of different teams.

Whereas Karl Marx presupposed to have recognized historic legal guidelines in response to which historical past inexorably evolves, and noticed particular person motion as being materially decided by their historic situations, Murray Rothbard is correct to level out that Marxist legal guidelines of historic determinism are at greatest fuzzy and at worst meaningless. Thus, we see the significance of methodological individualism in ascertaining the reality about historical past. As Hülsmann explains, within the context of financial historical past:

Historic evaluation, if it simply sticks to the recognized info, should clarify all social phenomena as ensuing from particular person motion, and the causal chain of occasions should begin and finish with the concepts and worth judgments of people. Historical past describes looking back how the appearing individual perceived the state of affairs through which he needed to act, what he aimed toward, what he believed to be the means at his disposition. And it makes use of the legal guidelines offered by economics and the pure sciences to explain the target impression that the appearing individual had by his conduct. Thus the mission of historical past is to explain the drama of social and financial evolution from the viewpoint of its protagonists. Its personal particular device on this process is “psychology” or—Mises’s favourite expression—“thymology.”

Hayek’s concern in “Individualism: True and False” additionally factors to the significance of specializing in particular person motion. Hayek noticed “true individualism” as “primarily a idea of society, an try to grasp the forces which decide the social lifetime of man.” As a result of society is fashioned by interplay between people, it follows that we should look to people to grasp historic occasions. As Hayek explains,

. . . there isn’t any different method towards an understanding of social phenomena however by our understanding of particular person actions directed towards different folks and guided by their anticipated conduct.

These observations should not solely related for understanding financial or social interactions, however for understanding human motion in a broader sense. In understanding historic occasions, this concentrate on the person signifies that values and preferences should not collectively decided by reference to group standing. Mises doesn’t deny that a person’s decisions are influenced by his materials situations, nor does he deny the significance of social context in understanding human motion:

No one ventures to disclaim that nations, states, municipalities, events, spiritual communities, are actual elements figuring out the course of human occasions. Methodological individualism, removed from contesting the importance of such collective wholes, considers it as one in every of its most important duties to explain and to investigate their turning into and their disappearing, their altering constructions, and their operation. And it chooses the one technique fitted to resolve this downside satisfactorily…the way in which to a cognition of collective wholes is thru an evaluation of the people’ actions.

The purpose is that within the context of historic evaluation, any individual’s understanding of his personal tradition can’t be “debunked” by reference to the perceived discrepancy between the views he expresses and his race, class, or time through which they lived. We should subsequently reject the arguments of historians who insist that the person opinions or actions of anybody within the American South are irrelevant, and reject their preposterous assertion that the one legitimate clarification for something pertaining to the American South is “white supremacy.”



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