Philosophy of Economics

Modern Western Philosophical and Economic Concepts

(R. Aron, W. Rostow, D. Bell, J. Galbraith, A. Toffler, J. Fourastié) and the Phenomenon of the Ukrainian Scientific School of Physical Economy (S. A. Podolynsky, M. D. Rudenko)

At the dawn of the 20th century, Western European social philosophy began to gradually form a fundamental understanding that the world of economics is not confined merely to economic activities. Thinkers and sociologists such as R. Aron (1905-1983), W. Rostow (1916-2003), and D. Bell (1919-2011) emphasized that the sweeping historical transformations linked to the transition from traditional "agrarian" societies to industrial ones were made possible through advancements in technology and the expansion of knowledge. These advancements, in turn, could only occur under conditions of an enriched spiritual sphere—characterized by the growth of personal maturity, heightened responsibility, social activity, equal opportunities, and the development of democracy. A deficit or uneven development of these traits gives rise to complex problems within the cultural and ethical domains. The threats are varied, ranging from intensified mechanisms of manipulation over human consciousness and behavior to the risks of depleting the biosphere and jeopardizing the fundamental principles of Earth’s existence.

Throughout the 20th century, Western philosophers and sociologists like J. Galbraith (1908-2006), D. Bell (1919-2011), E. Toffler (1928-2016), and J. Fourastié (1907-1990) actively explored concepts of "post-industrial society" (synonymous with "information society," "electronic society," "civilization of the third wave," and "postmodern society"). Such "society of the future," these thinkers characterize as a transition from a commodity-based economy to a service-oriented one, accompanied by a transformation of class divisions into professional categories; human knowledge and information emerge as the primary resources, while educational institutions become the foremost social entities.

What, then, are the defining characteristics of the "information era"?

Firstly, there is freedom. Information is now the principal product of the immaterial economy. For the effective and continuous functioning of a post-industrial economy, information requires unrestricted dissemination without barriers. Free and equal access to information constitutes the essential condition for individuals to realize their right to self-determination, thus serving as both a criterion of democracy and personal freedom.

Secondly, cooperation. In a context of equal and instantaneous access to information, competition unfolds primarily in the intellectual domain. The companies that will thrive are those capable of concentrating intellectual resources and fostering independent decision-making. In a post-industrial economy, the traditional "superior-subordinate" model of leadership is doomed to fail. Intellectual competition merges the mentor with the "young intellect." Methodologies based on interaction and trust in complex environments prove significantly more effective than coercion and control.

Thirdly, motivation. In this technological age, amid informational freedom, products often bypass the commercial "counter," becoming accessible to all instantly. Consequently, post-industrial products frequently embody the author’s aspiration for self-fulfillment; profit becomes a secondary concern. The primary motivation here is human recognition, as opposed to the material production sphere, where products are primarily imbued with commodity properties. Moreover, unlike in the material realm, where increasing production and consumption leads to a decline in consumer value, the consumer value of informational products only increases, as the rise in users affirms their worth.

Fourthly, cosmopolitanism. The informational flow intended for universal use gradually diminishes boundaries among races and nationalities, social classes, and religious preferences. This represents a new form of multiculturalism that encourages individuals to identify with universal values and engage with the international community.

Fifthly, globalization. The global information flow offers vast opportunities, creating global markets, necessitating a globally calibrated approach to its management. Today, there are apprehensions and warnings regarding the specter of global conflict, not without justification. Nevertheless, rational thinkers remain hopeful, assuring others that global projects, such as space exploration, the search for alternative energy sources, and the restoration of the natural environment, have the potential to unify all of humanity.

Special attention deserves the Ukrainian philosophical and economic thought of the late 19th to early 20th centuries, represented by figures such as S. A. Podolynsky (1850-1891) and M. D. Rudenko (1920-2004).

The original ideas outlined in S. A. Podolynsky's work, Human Labor and Its Relation to the Distribution of Energy (1880), illustrate a novel approach to methodology in research, which he later termed a systemic approach.

The components of the system that the scholar constructs consist of the subject, the object, and the Universe as a whole. These elements are closely interconnected. The key element of the system is energy as an object. In his examination of this concept, S. A. Podolynsky posits that the sum of universal (cosmic) energy remains a constant quantity. At the same time, energy is unevenly distributed across the various parts of the Universe, resulting in a tendency toward its equilibrium and gradual dissipation. The subject—be it an individual endowed with intellect or humanity as a whole—has the capacity to influence the movement and accumulation of energy. Human influence over energetic flows (the interaction of subject and object) occurs indirectly through labor and, according to the philosopher, manifests in two forms: — beneficial, wherein labor serves as a source of individual and societal enrichment and economic growth; — detrimental, which the scholar interprets as an act of energy theft.

1. A. Podolynsky demonstrates that the accumulation of energy at the Earth’s surface and the increase of the planet's energy budget are achievable through conscious and beneficial labor. He distinguishes between two types of useful labor: one that directly facilitates energy accumulation and another that indirectly supports this process by conserving energy from dissipation. Individual and societal enrichment, in Podolynsky's view, is attained through the accumulation of solar energy, its "binding." He convincingly argues that proper agriculture is the most effective form of useful labor, enhancing the preservation of solar energy on the Earth’s surface. Thus, true enrichment of humanity as a cosmic entity can be, and indeed is, measured by the amount of solar energy that it can accumulate, preserve, and utilize to satisfy both material and spiritual needs. Human activities involving the exploitation of natural energy already stored on Earth in the form of living matter, energy resources, and other valuable minerals represent an opposite phenomenon—namely, the impoverishment or even plundering of future generations, a form of self-robbery by humanity. Consequently, according to S. A. Podolynsky, human endeavors related to the extraction of natural resources may only be justified from an economic and ecological perspective if such resources are used to accumulate energy at the Earth's surface and prevent its entropy (dissipation). "The main goal of humanity in labor," the thinker notes, "should be the absolute increase of the energy budget."

At the same time, the scholar affirms that through their labor, humans neither create matter nor energy.

As a philosopher-economist, S. A. Podolynskyi offers a contemporary interpretation of human essence, viewing humanity as a cosmic entity endowed with intellect, capable of augmenting the energy available on the surface of the Earth. His perspective on Earth as an integral component of the Solar System allows him to conceptualize the process of management on our planet essentially as the economy of the Cosmos. He presents a fundamentally new approach to the theory of economic growth, proposing the idea of anti-entropy functions of individuals and social institutions, whose labor, on one hand, facilitates the accumulation of energy, and on the other, protects energy from dispersion. In doing so, S. A. Podolynskyi contributes to the theoretical foundations of socio-economic progress and the understanding of the civilizational challenges of development. By laying the groundwork for a modern paradigm of energy management processes, he offers a novel interpretation of the guiding goals and constraining parameters that humanity must consider when forecasting and planning its actions. The Ukrainian scholar becomes a harbinger of the idea of utilizing solar energy within economic systems, promoting the rational use of natural resources, and more broadly, the concepts of resource conservation and ecological sustainability in economic practices. By introducing the concept of "humanity's energy budget" into the scientific discourse, S. A. Podolynskyi expands the methodology of economic research, establishing the principles for analyzing global economic systems. He is rightly regarded as the founder of the national scientific school of physical economy.

Further contributions to the development of Ukrainian philosophical-economic thought come from M. D. Rudenko (1920-2004). Considering both Stalinist-Leninist doctrine and the teachings of Adam Smith to be dogmatic and conceptually flawed, M. D. Rudenko sets forth the task of uncovering the "natural laws of economic life" through a critical analysis of these doctrines. As evident in his works "Gnosis and Modernity (The Architecture of the Universe)" and "The Energy of Progress," the Ukrainian thinker bases his inquiries on the ideas of physical economy while synthesizing knowledge from economics, philosophy, cosmology, physics, mathematics, and other sciences.

1. D. Rudenko is particularly interested in the question of what serves as the driving force behind civilizational development, the source of progress. Central to his worldview is the concept of the energy of progress, which he defines as absolute surplus value, derived from cosmic radiation, made accessible through the process of photosynthesis. The unity of the physical and the spiritual forms the "foundation" upon which he constructs a coherent architecture of the universe, skillfully "integrating" humanity within it.

Adopting S. A. Podolynskyi's idea of the interaction between the subject (humanity in general) and the object (energy), M. D. Rudenko views energy as an expression of the subject's influence on humanity. In this framework, the subject emerges as Spirit-Matter or the First Creator (God). M. D. Rudenko delineates a clear system of interaction within the universe. Spirit-Matter (the subject), through energy, influences humanity (the object), either facilitating or obstructing its existence. Thus, humanity remains under the direct influence of the energy of the Cosmos, whose source is God (the First Creator), being a product of divine action. Simultaneously, through economic activity, humanity is capable of exerting its own influence on the energetic flows within the Cosmos.

Rooted in the idea of pantheism, M. D. Rudenko speaks of the necessity for humanity to hold a respectful attitude towards nature as a part of the universe, which he believes could even secure humanity's immortality. The thinker asserts, "There is no threat that the process of photosynthesis will ever be interrupted... thus nothing hinders the affirmation of our immortality, except our ignorance."

In this way, the thinker presents a fundamentally new approach for his time in addressing the civilizational challenges of development, positing that the dominant focus of human advancement should be environmental conservation based on scientific achievements. In examining the origins of societal development, he consciously arrives at the idea of God as the original source and driving force of progress, for it is God (or Spirit-Matter, or the World Monad) who serves as the energy source facilitating the process of photosynthesis and, consequently, both earthly and cosmic life.

1. D. Rudenko posits that agriculture is the foundation of societal economic development, as it possesses the capacity to accumulate energy flows. He articulates a clear formula for organizing the economic life of society, the violation of which, in his view, will inevitably lead to regression and the decline of society and humanity at large. His formula states that three-fifths of agricultural production should remain within that sector, forming the basis for socio-economic progress (specifically, two-fifths in the form of straw and grass used for feeding livestock and fertilizing the land with organic matter, and one-fifth in the form of grain retained by the peasantry); the remaining two-fifths, in the form of grain, may be consumed by workers, soldiers, and civil servants, who act solely as "entropy organs of society."

Thus, the proportions established in this formula become a unique scientific instrument for M. D. Rudenko, enabling him to comprehend the essence of favorable, unfavorable, and destructive trends in the development of national and global economies. The philosophical-economic works of M. D. Rudenko constitute a significant contribution to the treasury of physical economy and the evolution of domestic economic thought.