The ideologies of positive economics: Technocracy, laissez-faire, and the tensions of Friedman’s methodological claims

Abstract

The purpose of this paper is to address some connections between Milton Friedman’s classic essay on methodology and the rise of neoliberal thinking. In order to do so, it briefly reconstructs Friedman’s methodological claims and reinterprets the debate about them. Emphasis is put on the tensions between instrumentalism and realism or pragmatism, and between empiricism and the defense of Chicago price theory. Then, these tensions are related to a tension that is arguably inherent in neoliberalism, between technocracy and laissez-faire. The argument presented aims to contribute to bridging the gap between the recent literature on neoliberalism and the older one on Friedman’s methodological essay.