Ludwig Lachmann’s Kaleidic World

Lachmann was one of the most unique of the new 20th century Austrians. Although in his early days he was a thoroughgoing Misesian, he began to drift away from both Mises and Hayek in his methodology and overall outlook on economics. The influence of G. L. S. Shackle radically changed Lachmann’s view of the world. He was no longer sure if economic theory had any value in a rapidly changing world. He began to be accused of nihilism for the view, although he simply considered it an application of uncontroversial Mengerian insights. In The Legacy of Max Weber, we see Lachmann in a transition period between his radical subjectivism and standard Misesian instincts. He tries to combine the insights of Max Weber and Menger in order to explain how institutions prevent the Kaleidic society he later became worried about.