In this paper I investigate two denials in Milton Friedman's Nobel Lecture (1976). The first is [i] the denial that 'Economics and its fellow social sciences' ought to be 'regarded more nearly as branches of philosophy.' The second is [ii] the denial that economics is 'enmeshed with values at the outset because they deal with human behaviour' (267). I show that Friedman's appeal to his methodology in the Nobel lecture fails on conceptual grounds internal to Friedman's methodology. Moreover, I show (...) that the failure is related to a broader systematic problem: when properly understood, Friedman's methodology shows that positive economics is (in a non-trivial sense) enmeshed in values. In order to account for Friedman's overreaching, I turn to the charged social context regarding Friedman's purported involvement with the Chicago Boys, who were then serving Chilean Dictator Pinochet. I conclude by explaining why I re-open the old chestnut of values in positive science. The episode allows me to raise a question of fundamental import about the relationship between expertise and society. (shrink)

Chapter one is an introduction. In chapter two, I argue that, due to a lack of knowledge of Newton, Hume is unable to use the "Science of Man" to provide a foundation for the other sciences. Hume's account of causality and the missing shade of blue receive special attention. Hume tries, without paying attention to scientific practice, to constrain what science can be about. ;In chapter three, I reconstruct Adam Smith's epistemology. The major theoretical concept of Smith's moral psychology, the (...) "Impartial Spectator," illuminates his views on the articulation and reception of scientific theories; it brings out the open-ended, social and norm-governed nature of science. Sentiments motivate inquiry, but adopting its results can still be reasonable. After Newton, Smith is not a skeptic, but a realist. ;In chapter four, I explain Smith's methodology in Wealth of Nations . Smith employs a model to enable observed deviations from expected regularities to uncover genuine social causes and aid in improving theory in a potentially open-ended process of successive approximation. I draw on The History of Astronomy where Smith attacks Descartes for trying to explain away deviations from general rules. ;In Chapter five, I explain the political aims of Smith's WN. Smith is an Incremental Redistributionist . Smith's reform proposals and the values that guide his theorizing are in aid of the working poor. I attack a possible political counter-argument against this by attending to Smith's historical understanding of property; Smith's defense of property rights, following Hume's critique of Locke, is by no means absolute. Yet, Smith's appeals to "humanity" appear without justification in WN. ;In chapter six, I investigate the purpose of philosophy in commercial society. In the debate between Rousseau and Hume on philosophic self-understanding, between self-sufficiency and independence, Smith sides with the latter. Smith emphasizes, however, that once basic needs are met, friendship among equals is a more valuable than wealth; it provides happiness and is within every one's reach. Philosophers can enjoy immortality after death if they attempt to be benefactors to humanity, but Smith believes that philosophic friendship is its own and highest reward. (shrink)

In this paper I call attention to Adam Smith’s 'Considerations Concerning the First Formation of Languages' in order to facilitate understanding Adam Smith from a Darwinian perspective. By ‘Darwinian’ I mean a position that explains differential selection over time through natural mechanisms. First, I argue that right near the start of Wealth of Nations Smith signals that human nature has probably evolved over a very long amount of time. Second, I connect this evidence with an infamous passage on infanticide in (...) The Theory of Moral Sentiments in order to argue that Smith is committed to group selection. Third, I argue that in Dissertation on Languages one can find building blocks for the claim that mind and language co-develop over time. More controversially I claim that in TMS there is a distinction between natural sentiments and moral sentiments. Natural sentiments are evolved (presumably through cultural selection) and moral sentiments are developed (through acculturation within society). Along the way, I argue that this distinction would have improved Darwin’s Descent of Man by blocking a move toward eugenics. (shrink)

In this essay, I use a general argument about the evidential role of data in ongoing inquiry to show that it is fruitful for economic historians and historians of economics to collaborate more frequently. The shared aim of this collaboration should be to learn from past economic experience in order to improve the cutting edge of economic theory. Along the way, I attack a too rigorous distinction between the history of economics and economic history. By drawing on the history of (...) physics, I argue that the history of a discipline can be a source of important evidence in ongoing inquiry. My argument relies on the claim that it is a constitutive element of science that evidence is never discarded forever and is thus historical in nature. In the final section, I offer a case study by explaining a research proposal that turns on a long-running data-set Babylonian whole-sale prices of six commodities noted in pre-Hellenistic and Hellenistic times. To motivate my reading of this data-set, I critically discuss Aristotle's successful attempt to distinguish between astrology and political economy. (shrink)