John R. Commons and John Maynard Keynes: Two Philosophies of Action
A philosophy of action is a set of beliefs that motivates and justifies the decisions people make-for themselves and for the groups to which they belong.' The "economic approach" to policy analysis rests on such a philosophy, and among the beliefs composing it are these: that reason can examine the means, but not the goals of a course of action; that there is no public interest beyond the sum of the preferences of consumers as represented by market prices; and that the assumption of homo economicus is all that is needed to create rules of social organization for any time or place. Recently, some critics have questioned these beliefs [Ascher 1987; Reich 1988]. John R. Commons and John Maynard Keynes also questioned these beliefs, and they rejected all three. In the process, each built up of a personal philosophy of action. This article compares these philosphies as they grew from different roots and differed and converged in surprising ways. The philosophies and strategies differed; that of Keynes being influenced by the ideal state of Plato's Republic, that of Commons by a commitment to democratic processes. But they were alike in defending the possibility of reasonableness in the conduct of human affairs, in stressing the stubborn irrationality of a complex human history, and in seeking ways to expand the role of reason in an irrational world.