PIRENNE AND ECONOMIC AND SOCIAL THEORY
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positivist German historiography, and in fact his ideas and methods formed a
bridge which helped create a new economic and social history in France, the
Anglo-Saxon world and the rest of Europe.
Economic history emerged not from history, but from the field of
economics, which had changed greatly in the second half of the 19th century
and increased in significance. A major question is why Germany 'modernised'
later than other countries such as England. German social scientists reacted
strongly against classical economics, which had its roots in the Anglo-Saxon
world with Adam Smith, David Ricardo, and John Stuart Mill as its most
prominent representatives. This (Anglo-Saxon) classical economy evolved
into neo-classical economics in the second half of the 19th century. By the
time that Henri Pirenne was a student, this school had evolved into a group of
researchers who sought to identify economic patterns which could be
explained by mathematical models. These neo-classical views had many
adherents in Germany and Austria, including the Austrian Carl Menger, best
known for his debate with Schmoller. However, in Germany many econo-
mists rejected this neo-classical mathematical-model approach. In many
cases, these sceptics believed that economies should be centrally guided and
based on social principles, but they also used more 'historical' or source-based
and comparative methodological approaches to explain economic phenom-
ena. They avoided formulating overly general 'theoretical' economic laws,
preferring to contextualise economic patterns with attention to the differences
among areas and periods. In other words, they thought one should work
'historically' to explain economics. This new group was later called the
'German historical school'.
In contrast to the neo-classical school, this new economic school was
profoundly influenced by sociology and even more by psychology. Scholars
in the younger school examined the psychological motives for human
behaviour, looking for something much more complex than Adam Smith and
his colleagues had assumed. Not all Humans were identical 'homines
economici'
, or as Pirenne – influenced to a large extent by this school – wrote
himself in 1917:
"The economic man is a joke. Man is always the same, with the same passions, but
with different methods of assuaging them because of the difference in
environments" (Pirenne, 1917, 223).
5
5.
In this article most quotes originally written in French by Pirenne, are translated in English
by the authors.
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E. THOEN / E. VANHAUTE
Economics is history. Therefore, many economists conducted historical
studies that went back to the Middle Ages. At the same time, this school
allowed some outside influence and adopted methods from other fields. They
engaged in a true methodological conflict with the followers of the neo-
classical school, their major foes. However, these new economists were
otherwise quite diverse. Some, such as Werner Sombart and to some extent
Karl Bücher, were close to Marxism, while others remained closer to the neo-
classical school even as they rejected 'patterns' in history. A third group,
which included Max Weber, attributed more importance to mentality. Still
others focused on racial differences. These diverse beliefs caused huge con-
troversies amongst economists, but their collective aversion to 'unchangeable'
rules and patterns unified them into a school. Pirenne shared the same
opinion well before World War I. As early as 1901 he wrote:
"It should be mentioned that, during the 50 years which have followed the
appearance of the Wealth of Nations, we have lived with the conviction that the
political economy is a scientific fact, a system of absolute and immutable laws, true
always and everywhere, which apply equally to the nomadic hunter or fisher in
primitive times and to the entrepreneur or large industrialist in modern times. While
it allows differences of intensity in economic activity over time, it does not allow
difference in nature. It operates in rigid categories, it follows a rigid formalism, and
it therefore can only consider the study of economic data over passing time periods
as an antiquarian pastime, without usefulness or impact" (Pirenne, 1901, V).
Pirenne clearly adopted the objectives of the 'German historical school' in
economics. But by whom was he influenced? The same text
6
(Ibid., VI)
makes clear that he agreed with the most important economists of this school
since he wrote that people such as Roscher, Hildebrand, Knies, Nitzsch,
Schmoller, Inama-Sternegg, Lamprecht, Gothein, and many others had
demonstrated earlier that
"to whatever school one belongs, in our time, one can no longer be considered as an
economist if one claims to confine this science to the narrow limits of the present".
Clearly his German connections and his studies there had convinced Pirenne.
His writings show clearly – and this is up to now largely neglected by
biographers – that two economists had an especially significant impact on his
thinking. He was the student and personal friend of two extremely influential
economists of the late 19th century, Karl Bücher and especially Gustav Von
6.
This text is not well known, but it is an important source for understanding the influences
on Pirenne. It is not published in the 'Digithèque' of the ULB.