https://medium.com/p/56de17a921b1 ( https://medium.com/p/56de17a921b1 )

Debates over positivism in twentieth‑century social theory are commonly framed 
as struggles between defenders of scientific rationality and critics of it. 
This framing is misleading. In the central disputes linking Friedrich Hayek, 
Otto Neurath, and later the Frankfurt School, the real point of contention was 
not whether reason and science have limits, but what follows from those limits. 
All of the principal figures involved rejected Cartesian rationalism — the idea 
that social order could be deduced from self‑evident foundations or governed by 
complete, transparent knowledge. As Hayek later put it, the error he opposed 
was the belief that social problems admit of solutions “as if all the relevant 
facts were known to some single mind” (Hayek 1996, 20). Rather, their 
disagreements arose from the sharply different political conclusions they drew 
from this shared anti‑Cartesian insight.

For Hayek, the critique of positivism emerged from his opposition to socialist 
economic planning. Reacting in part to the work of Otto Neurath — a socialist 
economist and a founding member of the Vienna Circle of logical positivists— 
Hayek argued that logical positivism encouraged a “scientistic” 
misunderstanding of the social sciences. By modeling social inquiry too closely 
on the natural sciences, positivism appeared to legitimate the belief that all 
relevant social knowledge could be made explicit, formalized, and centrally 
coordinated. Hayek warned against this tendency to “imitate the procedure of 
the physical sciences” in domains where the subject matter consists of complex, 
meaning‑laden human actions rather than law‑governed physical objects (Hayek 
1996, 15). He rejected the assumption that social knowledge could be fully 
articulated and centrally aggregated, insisting instead that “the knowledge of 
the circumstances of which we must make use never exists in concentrated or 
integrated form” (Hayek 1945, 519). The price system, on his account, is 
indispensable precisely because it enables coordination without requiring that 
knowledge be unified in any single place (Hayek 1945; Hayek 1973, 59).

Neurath, however, rejected Cartesian rationalism and technocratic planning no 
less firmly than Hayek did, though he drew nearly opposite conclusions. His 
physicalism and advocacy of in‑kind calculation ( Naturalrechnung ) were not 
based on a belief in uniquely optimal, technically computable solutions to 
social problems. On the contrary, Neurath explicitly denied that social 
decision‑making could be reduced to any single algorithm or maximization 
principle. As he wrote, “There is no way of calculating a total pleasure or a 
total utility for society,” since neither cardinal utility measurement nor 
interpersonal comparison is possible (Neurath 1920, 417). Accordingly, Hayek’s 
portrayal of Neurath as a proponent of Cartesian rationalism or technocratic 
optimization rests on a misreading, since Neurath explicitly rejected both 
epistemic omniscience and uniquely determined “optimal” social outcomes 
(Neurath 1935, 121–31).

For Neurath, monetary calculations falsely impose a spurious unity on 
inherently plural and incommensurable social values. He contended that economic 
life involves “a plurality of life‑conditions which cannot be reduced to a 
common denominator,” and that reliance on money disguises rather than resolves 
this plurality (Neurath 1930, 102). Conscious economic planning, in his view, 
did not and cannot promise perfect rational control; instead, it made value 
conflicts explicit and open to political judgment. As he emphasized, social 
decisions necessarily involve choosing “between different ways of living,” not 
computing an objectively optimal outcome (Neurath 1935, 125).

A similar anti‑positivist impulse animated the Frankfurt School, though it was 
directed against capitalism rather than socialism. Frankfurt theorists argued 
that positivism reified existing social relations by treating them as neutral 
facts governed by technical necessity, thereby obscuring their historical and 
ideological character. Horkheimer criticized positivism for reducing reason to 
“the mere ordering of facts,” thereby evacuating its critical and emancipatory 
dimensions (Horkheimer 1982, 244). Where Hayek saw positivism as enabling 
socialist planning through an overconfidence in scientific reason, the 
Frankfurt School saw it as legitimating capitalist domination through 
technocratic rationality (Adorno 1976, 34–35).

Seen in this light, positivism did not function as a straightforward ally of 
either capitalism or socialism. Instead, it served as a contested 
methodological orientation whose political implications depended on how one 
interpreted the limits of knowledge, rationality, and social prediction. Hayek, 
Neurath, and the Frankfurt School all rejected Cartesian rationalism; they 
parted ways over whether those limits pointed toward markets, planning, or 
critical emancipation as the appropriate response. In recent years, Neurath’s 
work — especially his notion of “calculation in kind” (Naturalrechnung) and his 
holistic attention to life‑conditions and use‑values — has experienced a modest 
revival of interest among scholars in ecological economics and ecosocialist 
circles. Contemporary commentators have begun to explore Neurath as a precursor 
of ecological planning and as a historical resource for envisioning just 
ecological transitions that engage with environmental limits outside 
conventional monetary calculation. (Colamban, 2025)

----------
References
----------

------------------
Friedrich A. Hayek
------------------

* *Hayek, Friedrich A.* The Counter‑Revolution of Science: Studies on the Abuse 
of Reason. Indianapolis: Liberty Fund, 1996. ( 
https://archive.org/details/counterrevolutio030197mbp/page/n5/mode/2up )
* *Hayek, Friedrich A.* “The Use of Knowledge in Society.” American Economic 
Review 35, no. 4 (1945): 519–30. ( 
https://www.econlib.org/library/Essays/hykKnw.html ( 
https://www.econlib.org/library/Essays/hykKnw.html?utm_source=chatgpt.com ) )
* *Hayek, Friedrich A.* Law, Legislation and Liberty , vol. 1: Rules and Order. 
Chicago: University of Chicago Press, 1973.

------------
Otto Neurath
------------

* *Neurath, Otto.* “Economic Calculation in Kind.” Economic Journal 30, no. 120 
(1920): 417–32.
* *Neurath, Otto.* Through War Economy to Economy in Kind. Vienna: 
International Encyclopedia of Unified Science, 1930.
* *Neurath, Otto.* “Pseudorationalism of Falsification.” Erkenntnis 5, no. 1 
(1935): 353–65. Reprinted in Otto Neurath: Philosophical Papers 1913–1946 , 
edited and translated by Robert S. Cohen and Marie Neurath, 121–31. Dordrecht: 
D. Reidel, 1983.
* *Neurath, Otto.* Otto Neurath: Philosophical Papers 1913–1946 , edited and 
translated by Robert S. Cohen and Marie Neurath. Dordrecht: D. Reidel, 1983.
* *Colomban, Jean‑François.* “Otto Neurath, a Pioneer of Ecological Economics? 
The Strange Relevance of Otto Neurath’s Thought [Otto Neurath, précurseur de 
l’économie écologique ? L’étrange actualité de la pensée d’Otto Neurath].” 
Revue de Philosophie Économique / Review of Economic Philosophy, 2025. 
Post‑print available via HAL / RePEc:hal:journl:hal‑05248560.

------------------------------
Frankfurt School (for context)
------------------------------

* *Horkheimer, Max.* “Traditional and Critical Theory.” In Critical Theory: 
Selected Essays , translated by Matthew J. O’Connell, 193–246. New York: 
Continuum, 1982.
* *Adorno, Theodor W.* The Positivist Dispute in German Sociology. London: 
Heinemann, 1976.


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