Understanding Human Action—Praxeology

The Fundament of Actual Empathy

“Compassionate” fellows like to talk about empathy but often focus on a single aspect of a situation and rarely make an effort to fully comprehend the behavior of the people investigated. Have you ever wondered why people really do the things they do? Or why you make the choices you make? Praxeology, the science of human action, holds the key to unlocking these mysteries. This fascinating field of study can provide you with a deeper understanding of your own decisions and the behavior of those around you.

Human Behavior

Praxeology is the study of human action, which is defined as purposeful behavior. It's a branch of philosophy that seeks to understand the underlying reasons behind the choices of people. The basis of praxeology is the idea that humans are rational beings who make decisions based on their own subjective values and goals. They follow their own interests.

There are two kinds of human behavior: rational behavior, aiming at achieving a goal, and reflexive behavior, reacting unconsciously to stimuli. Irrational behavior does not exist. According to praxeology, even if I try to convince you that irrational behavior does exist (e. g., by burning money), I do not act irrationally. In this case, my goal is to convince you of my irrationality and I am using rational behavior to work towards that. This whole understanding of praxeology fits very well to the idea of not listening to somebody’s words but looking at their actions. Your actions express your belief systems.

The Basis of Proper Economics

The term "praxeology" existed before, but in the early 20th century, it was Ludwig von Mises who used it extensively. His masterpiece Human Action: A Treatise on Economics describes all the aspects of praxeology extensively and, like all his works, emphasizes the importance of individual decision-making in the market. His work is a central part of the Austrian School of Economics, which continues to influence economic thought today.

Austrian Economic deliberations generally use the axiom of purposeful human behavior, from which preferences can be deducted, as a starting point. With that, Austrian Economic considerations are based on the philosophy that rational, non-reflexive human action is always purposeful, aiming at a goal. In contrast, modern economists base their reasoning on “the greater good” or “society.” Drawing and moving lines on some charts—empirical studies, the craft of modern economists—is rejected in Austrian Economics.

A Praxeology-Based Society

Modern economics has many political objectives: “We need to reduce alcohol consumption.”, “We cannot continue emitting so much CO2.”, or “We need to incentivize responsible investment.” Whereas Austrian Economics focuses on describing, modern economics focuses on influencing. Hence, there are way more jobs for modern economists, finding ways of how to “properly” infringe on everybody’s natural rights, than for Austrian Economists, describing human behavior. With modern economists’ approach, we have gotten to the current web of taxes that is so complex that there are many professionals whose main job is properly understanding and interpreting it. Further, this approach has brought us dreadful boom-and-bust cycles.

If considerations based on praxeology, such as time-preference, were more prevalent, individuals, influenced by current topics and discussions, would have very different perspectives. For instance, nowadays many express their thoughts that items X, Y, and Z should be cheaper to acquire, but they won’t stop buying these goods. Their actions speak louder than their words. Their behavior shows us that they might want the supplier to lower prices, but aren’t ready to stop consuming the product or service if they don’t.

With praxeological knowledge, we would also look at means and ends differently, as these are a central aspect of praxeology. For instance, we would ask the question if printing money will cause negative downstream effects in the long run. Furthermore, we would derive the insight that something is fundamentally wrong with our money from the fact that people are frantically searching for alternatives. We would recognize that free-market competition is the proper way to prosperity.

The Benefits of Understanding Praxeology

Understanding praxeology can have a profound impact on our lives. By recognizing that people make decisions based on their own subjective values and goals we can better understand their actions and motivations. Recognizing this can help us to be more empathetic and understanding in our relationships. We realize that others may have different values and goals than we do. Therefore, we can avoid unnecessary conflicts and build stronger connections. This is real empathy.

In matters of making decisions, we take responsibility for our actions. We consider our own values and goals when making choices. By understanding what's most important to us, we can make decisions that align with our personal attitude, decisions that lead to greater happiness and fulfillment. With a deeper understanding of means and ends, we always ask ourselves: What are our end goals and are these proper means to achieve them?

A Powerful Perspective

Praxeology, the science of human action, offers a powerful framework for understanding human behavior and making decisions. Humans always act rational, aiming at achieving a goal. By applying the principles of praxeology to your everyday life, you can improve your relationships and make better decisions. Next time you're faced with a difficult decision or a challenging relationship, remember the power of praxeology and the importance of understanding human action. Consider the actions of involved fellows and what you can derive from them. This is the proper way to understand others. How will you be able to benefit from knowing praxeological principles?

Think for yourself and question everything, my fellow liberty people!