Discuss Methodological Individualism

You Act Alone

Introduction

In the social sciences, methodological individualism is a framework that describes social phenomena as a consequence of subjective personal motivations by individual actors. Class or group dynamics, which operate on systemic explanations, are deemed illusory, and, thus, rejected or de-prioritized. With its bottom-up micro-level approach, methodological individualism is often contrasted with methodological holism,[1] a top-down macro-level approach, and methodological pluralism.[2]

Clipped from Methodological individualism - Wikipedia on 2023-12-16.

Body

If you learn nothing else about the Austrian methodology, it has as its foundation the principle of individuality. Starting with Carl Menger, thinkers applying the Austrian methodology to the understanding of economic activity have realized that only individuals can act, always and everywhere.

Most economists and commentators overlook that seemingly simple concept. After you read this article, take a moment to observe how people do not act as a collective. They act as a network of individuals who appear to have the same objective.

Please consider the following examples of individuality.

Individuals As Discrete Entities

We start our observations with the irrefutable principle of the discrete nature of all humans.

Humans have a propensity for joining groups that share interests, cultures, religions, and more, but in each of those cases, the individual voluntarily joins the group, and no such thing as a commune can exist with these individuals.

Communication

I see communication as evidence of the individual nature of humans. When a person speaks or writes, that person knows exactly what they mean, but that output consists only of information — defined simply as non-randomness. The receiver of this information must decode it and give it meaning.

People spend an incredible amount of time debating amongst themselves the meaning of communications received from elsewhere. Despite that effort, the individual members of a group must determine the meaning for themselves. Why else does Congress spend so much time debating issues that, from an individual perspective, seem obvious?

Errors of Aggregation

The study of economics — or what people frequently referred to as macroeconomics — consists of a plethora of errors of aggregation. Economists spend an incredible amount of time creating statistics that involve only slightly related data.

Take some time to consider the composition of GDP, CPI, and price inflation/deflation. Each of these examples contains data that has little or no relationship.

Conclusion

I encourage you to take considerable time to consider the activities you engage in. Do you not always act on your own volition? When you go to a grocery store, do you bring your own shopping list, or does a store employee hand you one when you arrive? If you belong to a sports team, do you decide on individual steps you take, or does a central brain run the whole team at once?

If you spend some time in a quiet space, you will come to realize that you and you alone determine what actions to take.