Human Action, Chapters 4–7
-
Writer
Liberalism Reading Group for Beg
-
Date and Time: August 19, 2026, 21:00
Location: Online
Participants: kdg, mori, Jayu, Venti, Bench Press
Book Title: Human Action
Author: Ludwig von Mises
Year Published: 1949
Assigned Reading: 4–7
1. The Methodology of Praxeology and A Priori Axioms
A priori deduction of economic laws: Whereas conventional economics treated marginal utility, the law of returns, and the disutility of labor as psychological phenomena or technical observations, Mises redefined them by bringing them into the realm of a priori “axioms”—accepted as true without proof.
Clarification of terminology: It was noted during the meeting that the “axiom” mentioned here does not refer to the utility of utilitarianism, but rather to an axiom in mathematics/logic—a starting point that prevents infinite logical regress.
Subjective value and criticism of central control: Value cannot be objectively quantified and exists only as a subjective order of priorities (ranking). Action is an exchange in which one gives up a less satisfactory state in order to attain a more satisfactory one. From this perspective, modern states’ central planning efforts to quantify and control value can be criticized.
2. Human Action Under Uncertainty and Life as “Speculation”
Uncertainty and speculation: If the future were perfectly predictable, there would be no reason to act, so “uncertainty” is an essential precondition for action. To commit oneself to action in a state where outcomes cannot be guaranteed is essentially akin to “speculation,” while definite exchanges such as labor contracts are merely special cases.
Korea’s economic growth and case probability: Korea’s rapid economic growth was also not the result of simply copying advanced-country models, but of macro-level “speculation” (case-probability betting) decided flexibly according to circumstances, with “luck” also playing a major role.
3. The Expansion of Economics and Comparison with Other Works
Questions about extending to macroeconomics: The group shared anticipation about how Mises, having built his logic entirely on ordinal preferences while thoroughly excluding quantification, would later explain macroeconomic phenomena such as interest rates and the value of money.
Comparison with Rothbard’s Man, Economy, and State: Mises’s conceptual and densely reasoned bottom-up logical development may feel unfamiliar. By contrast, it was observed that the first half of Rothbard’s Man, Economy, and State, from the same Austrian School tradition, felt somewhat more intuitive and easier to read.
4. Discussion of Real-World Economic Issues and the Direction of the Group
Publishing a liberal newsletter: To relieve fatigue with the blindly left-wing tendencies of other groups (for example, boycotting Starbucks) and to promote a liberal perspective, the idea emerged of consistently publishing a newsletter based on current issues.
Autonomous driving and rising market expectations: As Tesla FSD advances rapidly and raises consumers’ expectations across the board, the domestically supplier-centered direction of technology development may also have no choice but to become more market-friendly.
Chinese electric vehicles/solar power and protectionism:
Optimistic view: China’s low-price offensive is the result of state subsidies, so it will face limits in a fully competitive market. Measures such as abolishing EV subsidies could instead strengthen the competitiveness of Korean firms.
Cautious view: The goal is not merely low-price competition, but preempting the market and dominating supply chains (including rare earths), so there is reason to worry about the collapse of the industrial ecosystem.
Free trade and U.S. politics: The discussion analyzed the U.S. political landscape, in which the development of free trade and the division of labor inevitably creates job insecurity for blue-collar workers, and politicians like Trump are actively exploiting such discontent.
*
The “Liberalism Reading Group” Kakao Open Chat or Band group is a communication space run by reading group members.
Please note that this is not a channel operated by the Center for Free Enterprise (CFE), and keep this in mind when joining or participating.
▶ Join the Liberalism Reading Group:
https://open.kakao.com/o/g4Nn1uud
Original title: <인간행동> 4~7장
Author: Jayujuui ipmun dokseotoronmoim
Date: 2026-08-24
Source: https://www.cfe.org/bbs/bbsDetail.php?cid=reading01&pn=1&idx=29410