The Viennese students of Civilization: Humility, Culture and Economics in Interwar Vienna and Beyond

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2 The Viennese students of Civilization: Humility, Culture and Economics in Interwar Vienna and Beyond De Weense studenten van de beschaving: bescheidenheid, cultuur en economie in Wenen en daarbuiten Thesis to obtain the degree of Doctor from the Erasmus University Rotterdam by command of the rector magnificus Prof.dr. H.A.P. Pols and in accordance with the decision of the Doctorate Board The public defence shall be held on Thursday the 9 th of January 201 at hrs by Erwin Dekker born in Hoorn

3 Doctoral Committee Promoter: Other members: Prof.dr. A. Klamer Prof.dr. R.J. Leonard Prof.dr. J.J. Vromen Prof.dr. S.J. Magala

4 We felt that the civilization in which we had grown up had collapsed. We were determined to build a better world. Hayek, Foreword to Mises, Socialism Humans are at best in the process of becoming civilized Norbert Elias

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6 Contents Chapter1 Introduction 11 Chapter2 TrappedbetweenIgnorance,CustomsandSocialForces51 Chapter3 TheMarket:CivilizingorDisciplinaryForce? 83 Chapter4 Instincts,CivilizationandCommunities 117 Chapter5TherapeuticNihilismortheHumilityofthestudent145

7 Chapter6ThestudentasDefenderofCivilization 177 Chapter7ThestudentofCivilizationandhisCulture 207 Chapter8CultivatingEconomicKnowledge 229 Chapter9 Whatitmeanstobeastudentofcivilization 263 Bibliography 289 DutchSummary/NederlandseSamenvatting 307 CurriculumVitae 315

8 Acknowledgments

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12 Chapter1Introduction 1. LatevisitorstoPompeii

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14 their

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17 the students 3.

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19 2. Civilization?

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23 individual

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25 3. Whycivilization?

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27 and shoulddo doshould

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31 4. InterpretingtheVienneseortheAustrians

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35 raison d être

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37 Empire

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40 5. TheconversationsaboutHayek

41 traditions

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44 scientificproblems methodological principles

45 6. Economicknowledgeandknowledgeabout civilization

46 theauthor

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48 valuable

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52 Chapter2 TrappedbetweenIgnorance,Customs andsocialforces TheindividualintheinthetraditionoftheViennesestudentsof civilization Wer seine Schranken kennt, der ist der Freie, wer frei sich wähnt, ist seines Wahnes Knecht Who knows his limits, he is free who believes he is free, is a slave to delusion From the play Libussa, by Grillparzer

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55 1. Emancipatingtheindividual

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58 not

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60 2. Liberalhopes

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67 3. Liberalfrustrations

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73 4. Socialforcesandelites

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79 5. Civilizationandrestraint

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84 Chapter3 TheMarket:CivilizingorDisciplinary Force? Ontheroleofmarketsinthecivilizingprocess Man is not born free. He is born to a new freedom which he can only achieve by taking up the chains of tradition and using them, for paradoxically, these very chains are the instruments of freedom Bronislaw Malinowski, Freedom and Civilization, 1947

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86 1. Socialismandthesocialengineers

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88 notnot

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91 2. Thereturnofnaturalinstincts

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97 3. Marketsandthecivilizingprocess

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108 4. ThePriceofthecivilizingprocess

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114 5. Conclusion disciplineandcivilization

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118 Chapter4 Instincts,Civilizationand Communities Theconversationabouttheindividualandcivilization continued

119 1. Tamingtheinstincts?

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123 homoeconomicus

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126 parexcellence

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128 without

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130 2. Sourcesofcivilization

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137 3. Asharedculture

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141 homoeconomicus

142 theirchild soldiercountry, scientist.

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146 Chapter5TherapeuticNihilismortheHumility ofthestudent Onthelimitationsofthestudentofthecivilization No person can escape death; yet the recognition of this necessity certainly does not force us to bring about death as quickly as possible Ludwig von Mises, 1919 Though we cannot see in the dark, we must be able to trace the limits of the dark areas Hayek, 1960

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150 1. Therapeuticnihilisminmedicine 77

151 78 understanding

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153 laissezfaire unscientific

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155 2. Therapeuticnihilismasaculturalphenomenon 84

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157 the

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161 3. TherapeuticnihilismamongtheViennesestudentsof civilization

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168 fruit ; 4. Thelimitsofeconomicknowledge

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173 5. Conclusion acceptanceandcourage

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178 Chapter6ThestudentasDefenderofCivilization OrScipio stearsandthefateofacivilization Nichts bringt das Verlorne zurück - Rudolf Sieghart, 1932 Human reason needs only to will more strongly than fate, and it is fate - Settembrini in Thomas Mann s Magic Mountain,1924

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182 1. BrochandthePowerofLiterature

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186 2. Defeatism?

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189 3. Theflawsofhistoricism

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193 4. Theneedforadefense

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196 Thefuturedepends uponourselves.

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198 5. Renewedideals?

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201 what

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204 6. Conclusionfateandcivilization

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208 Chapter7ThestudentofCivilizationandhis Culture Ontherelationshipbetweenthescholarandhisobjectofstudy He saw the world going under, and it was his world Joseph Roth The Radetzky March,1932

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210 1. Therapeuticandedifyingknowledge

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213 God,grantmetheserenity ToacceptthethingsIcannotchange, CouragetochangethethingsIcan, Andwisdomtoknowthedifference 117

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216 2. Theresponsibilityofthesocialscientist

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224 3. OnthehumilityoftheViennesestudentsof civilization defineandinstitute

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228 liberalerradikalismus,

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230 Chapter8CultivatingEconomicKnowledge ThestudentofcivilizationinParadies Manchmal denkt man sich, hat denn einen Sinn Diese ganze Problemspalterei? Draußen fließt derweil froh das Leben hin Und selbst ist man so wenig dabei. Wars nicht kliiger, im Strom zu schwimmen, Als die Wasserkraft zu bestimmen? Ließ man nicht besser alles Denken sein, Lebte einfach froh in den Tag hinein Und genosse des Augenblicks Rausch? Doch man weiß ja, hier gibts keinen Tausch. Oh the time, it comes, when we must question why, Is such questioning really that smart? Life goes on and on, it just keeps flowing by, And we all play a very small part. We could swim along, take no notice Of the tide's direction, the world s focus. Should we not, perhaps, keep these thoughts at bay, Push our cares aside, and relish what's today. And yet there's no tradeoff at hand, Somehow we must take a stand. Final verse from the Mises-Kreis Song

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235 1. WienerKreise,inplural

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242 2. Betweencoffeehouseanduniversity

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252 CongrèsInternationald'ArchitectureModerne

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254 4. TheimportanceoftheconversationintheViennese tradition

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260 facetoface, 5. Conversationasscholarlypractice practice lectures wrote

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264 Chapter9 Whatitmeanstobeastudentof civilization Onmoderneconomicsandthestudyofcivilization When we look for examples of man s control over culture we begin first to wonder, then to doubt. Leslie A. White, Whatitmeanstobeastudentofcivilization

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266 1. Thescholarisalwaysstudentandneverthemasterofhissubject

267 2. Thereisadifferencebetweenknowledgefromandknowledge aboutcivilization

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270 3. Marketsareculturalinstitutionswithculturalandmoraleffects

271 4. Thereisatherapeuticortragicelementtotheworkofstudentsof civilization show

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274 Thestudyofcivilizationisasocialprocessbetweenvarious studentsandtheirculture

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276 2. Whencivilizationbreaksdown

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280 3. Thescholarlyheritageandtraditions

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282 and

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284 sensus communis

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307 TheWorldofYesterday

308 DutchSummary/NederlandseSamenvatting

309

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311 Marktentussennatuurenconstructie

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313 Hetbelangvaninteractieindewetenschappelijkepraktijk

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316 CurriculumVitae

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