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University M k ra ilm s International 300 N. Zeeb Road Ann Arbor, Ml 48106 8419020 Udell, Irwin Larry CAPITALISM, SOCIALISM, AND DEMOCRACY: A NEW APPRAISAL The Ohio State University Ph.D. 1984 University Microfilms International300 N. Zeeb Road, Ann Arbor, Ml 48106 Copyright 1984 by Udell, Irwin Larry All Rights Reserved CAPITALISM, SOCIALISM, AND DEMOCRACY: A NEW APPRAISAL DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Irwin Larry Udell, B.A., M.A. * * * * * The Ohio State University 1984 Reading Committee: Approved By Alan Hausman Daniel Farrell Gene Mumy Department of Philosophy Copyright by Irwin Larry Udell 1984 Dedicated to the memory of John Meysenburg, shot and killed in his flower shop during a robbery, a man dedicated to helping the poor and disadvantaged whose life was tragically extinguished by a poor person in need of money. ACKNOWLEDGEMENTS This dissertation is the product of a long process of intellec­ tual development, and it is impossible in several pages to mention all those who have assisted my education leading up to and through this project. I must therefore apologize in advance for neglecting so many important people in these acknowledgements. My reading committee deserves first mention and was most in­ fluential in the finished product presented in these pages. My advisor Alan Hausman devoted much energy to reading and criticizing several early drafts and was particularly invaluable in the development of the argument presented here as Chapter One. Without his assistance in the development of the idea for the project and the actual writing, this study would not have happened. Most of this aid was given when I was not enrolled in the university and thus when I was not a part of his regular course load, and Alan— as well as my other committee members— had to find time to read my material and meet with me in addition to his regular work. Gene Mumy taught me a great deal about economic theory, sometimes more than I cared to learn at the time. Without his assistance, Chapters Two and Three would be far inferior to whatever quality they have today, and my Bibliography would be far shorter. Dan Farrell was helpful particularly on those points where the dissertation touches upon political philosophy, and provided the inspiration for much of Chapter Four- He has also served on two reading committees for me and has read in excess of four hundred pages of my writing, and his comments have been always helpful. Finally, and certainly not least, John Champlin provided enormous assistance and support throughout this project and diligently read every draft of every chapter and provided many helpful comments and guidance when I needed it. It is with the greatest pleasure that I can say that each member of my committee was an advisor in some important way and left a mark on the finished product. I also derived enormous intellectual inspiration from other teachers and student friends throughout my graduate career. Professor James Scanlan and my classmate David Schweickart both taught me a great deal of what I know about Marxism. A reading group on Marxism that met for over two years was doubtless the best class I had the good fortune to take in graduate school, thanks to Bat-Ami Bar-on, Doug Husak, Ken Long, Heidi Malmquist, Sandy Parker, John and Sue iii Josephson, and David Schweickart. My education in political economy benefitted greatly from my many discussions with Tatsuo Hatta of the Ohio State University Department of Economics, whose course in Intermediate Micro-Economic Theory taught me the basics of the neo-classical model. There is little doubt that without the support and in many cases prodding of my friends and family, this study would never have been concluded. My parents, Norma and Arky Udell, the rest of my family, Professor Robert Turnbull, Mrs. Betty Hellinger, and Pro­ fessor Andrew Oldenquist all encouraged me to see this project through to completion. The same is true of my housemates, throughout the writing of this essay, Fred Gittes and Barb Terzian, and of Peggy Rausch and Kathy Jenson. My comrades and friends at the Columbus Tenants Union, where I worked during the entire time of writing this, put up with my ambiguous life as writer and tenant organizer, and deserve enormous thanks and credit for doing so. I often felt— correctly, I am sure— that the writing of this dissertation put an undue burden on them, and Joy Lohrer in particular is responsible for its completion. Joy also assisted in the typing of it, as did my good friend Kate Schulte. Finally, a large measure of the credit in a work such as this must go to the authors mentioned in the bibliography. I must especially credit Joseph A. Schumpeter for the title of the disser­ tation, and Oskar Lange for the title of the last section of Chapter Four. But in addition to providing me with titles, bott of these figures have been enormous intellectual influences, as have Maurice Dobb, Rosa Luxemburg, Joan Robinson, Paul Sweezy, and— a figure not mentioned in the bibliography— Eugene V. Debs of the Brotherhood of Locomotive Firemen, the American Railway Union, and the Socialist Party. Debs courage and resoluteness in the cause of socialism shows more than any written work the meaning of socialism today, no less than near the turn of the century when he said in 1897, "I am for socialism because I am for humanity." 1. Quoted on the back cover of the paperback edition of Debs, edited by Ronald Radosh. Englewood Cliffs, N.J.: Prentice-Hall, 1971. iv VITA Irwin Larry Udell 910 Franklin Avenue Columbus, Ohio 43205 614/258-1444 (home) 614/258-2915 (work) EDUCATION 1962-66 Boardman High School, Youngstown, Ohio 44512 Graduated, June, 1966 1966-71 Ohio State University, Columbus, Ohio 43210 Graduated, June, 1971, B.A., Philosophy 1971-78 Ohio State University, Columbus, Ohio 43210 M.A., Philosophy, March, 1974 Ph.D., Philosophy, June, 1984 EMPLOYMENT 1965-69 (Summers only) Camp Skymount, Green Lane, PA. (No longer in business) Summer camp counselor and supervisor 1970-71 Ohio State University, Columbus, Ohio 43210 Inventory Clerk, Inventory Department 1971-78 Ohio State University, Columbus, Ohio 43210 Graduate Teaching Associate, Philosophy 1978-84 Columbus Tenants Union, 640 South Ohio Avenue, Columbus, Ohio 43205 Coordinator, Organizer v TABLE OF CONTENTS Page DEDICATION ............................................................... ii ACKNOWLEDGEMENTS ........................................................ iii VITA ......................................................................... v INTRODUCTION ............................................................... 1 CHAPTER I. MARXISM AND SCIENTIFIC METHOD ................................. 5 Science and Social Science ................................. 6 The Question of Methodological Individualism .......... 12 Popper's Critique of Marxism .............................. 16 Kuhn and Lakatos' Attack on Falsificationism ............ 23 The Importance of Critical Experiments ................... 36 Kuhn's and Lakatos' Criticisms of Marxism .............. 42 CHAPTER ONE FOOTNOTES ..................................... 47 II. THE FIRST CRISIS OF ECONOMIC THEORY: THE THEORY .... OF V A L U E ........................................................ 53 The Historical Development of the Labor Theory of V a l u e ...................................................... 55 The Rise of Neo-Classical Economics ..................... 60 CHAPTER TWO FOOTNOTES ....................................