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Marx’s Socialism, Mises’s Liberalism and Their Problematic Theories of Needs and Preferences

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Liberalism and Socialism since the Nineteenth Century

Abstract

Marx’s defense of socialism and Mises’s defense of liberalism are among the most prominent attempts by modern economists to defend specific models of social organization. This chapter examines how Marx and Mises theorize needs and/or preferences and the significant influence of these theories on their defenses of socialism and liberalism. First, it shows that Marx theorizes needs formally, leading him to argue that basic needs cannot be distinguished from other needs. The chapter argues that his formal theories of needs weaken his arguments in favor of socialism. It moreover lays bare the deleterious influence of Marx’s formal theories of needs on his analysis of labor and its economic value. The chapter then argues that due to Mises’s merely formal theory of needs and preferences, the arguments he offers to defend liberalism are not convincing. It also shows that Mises’s formal theory of needs and preferences prevents him from explaining cooperation as a voluntary and spontaneous social phenomenon. In conclusion, the chapter maintains that less formal approaches to needs and preferences are imperative in light of the climate and ecological crises and allow us to examine the pros and cons of socialism and liberalism on a more rational basis.

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Notes

  1. 1.

    The distinction between ‘basic needs’—such as such as food, shelter, security, health, and sustainable environment—and ‘other needs’ or ‘preferences’ in ecological economics is very close to the one between ‘natural needs’ and ‘historical needs’ in Marx and the one between ‘physiological needs’ and ‘higher needs’ in Mises. In this chapter, ‘preferences’ and ‘non-basic needs’ have the same meaning.

  2. 2.

    This problem is exacerbated, as I have explained elsewhere (Badiei 2021, 83–99; Badiei 2022), by Marx’s failed attempts to explain the criteria he relies upon to distinguish productive from unproductive labor.

  3. 3.

    For Mises, the ends pursued by individuals or public institutions correspond to the needs or preferences that they prioritize and choose to satisfy.

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Authors and Affiliations

  1. Centre Walras–Pareto, Université de Lausanne, Lausanne, Switzerland

    Sina Badiei

  2. Collège International de Philosophie, Université Paris Lumières, Paris, France

    Sina Badiei

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  1. Sina Badiei
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Correspondence to Sina Badiei .

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Editors and Affiliations

  1. Campus Lettres et Sciences Humaines, University of Lorraine, Nancy, France

    Stéphane Guy

  2. Campus Lettres et Sciences Humaines, University of Lorraine, Nancy, France

    Ecem Okan

  3. Campus Lettres et Sciences Humaines, University of Lorraine, Nancy, France

    Vanessa Boullet

  4. Campus Lettres et Sciences Humaines, University of Lorraine, Nancy, France

    Jeremy Tranmer

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Badiei, S. (2023). Marx’s Socialism, Mises’s Liberalism and Their Problematic Theories of Needs and Preferences. In: Guy, S., Okan, E., Boullet, V., Tranmer, J. (eds) Liberalism and Socialism since the Nineteenth Century. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-41233-2_7

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  • DOI: https://doi.org/10.1007/978-3-031-41233-2_7

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  • Publisher Name: Palgrave Macmillan, Cham

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