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Who is Eugen von Böhm-Bawerk? | by Peter G. Klein

A strong member of the "second generation of the Austrian school of economics," Eugen von Böhm-Bawerk (1851-1914) and his works are discussed by Peter Klein. Böhm-Bawerk did much to extend and further develop Menger's theories of value, price, capital, and production. Included in his work of the two volume "Capital and Interest" is a devastating critique of Marx's exploitation theory. Böhm-Bawerk explained that far from being exploited, the workers are actually accommodated, being paid in advance of the produced goods being sold.

In the second volume, Böhm-Bawerk explained the time consuming nature of production and how it relates to interest. Roundabout production methods are more productive but come at a cost of forgoing current consumption during the process of accumulating the capital. This became the basis for his time preference theory of interest as well as the foundations for the Austrian theory of the business cycle. He also presented a clear example diminishing marginal utility and explained how real prices, as opposed to hypothetical equilibrium prices, are determined.

Playlist link for complete "Who Is?" series:

Links to selected online writings on Austrian Economics:

Human Action: A Treatise on Economics

Audio version:

Man, Economy, and State: A Treatise on Economics

Audio version:

Economic Thought Before Adam Smith: An Austrian Perspective on the History of Economic Thought, Vol. I

Audio version:

Classical Economics: An Austrian Perspective on the History of Economic Thought, Vol. II

Audio version:

The Austrian School of Economics: A History of Its Ideas, Ambassadors, and Institutions

Audio version:

Theory and History: An Interpretation of Social and Economic Evolution

Audio version:

The Austrian Theory of the Trade Cycle and Other Essays

Audio version:

Mises: The Last Knight of Liberalism

Audio version:

Ludwig von Mises: Scholar, Creator, Hero

Friedrich A. Hayek: A Centenary Appreciation

Henry Hazlitt: A Man for Many Seasons

Murray Rothbard: Mises's True Heir

Frédéric Bastiat: Champion of Laissez-faire

The Genius of Carl Menger

The Life and Works of Böhm-Bawerk

Why Austrian Economics Matters

Mises and Austrian Economics: A Personal View

Ludwig von Mises and the Austrian School of Economics

Mises, Hayek, and the Market Process: An Introduction

Praxeology: The Methodology of Austrian Economics

The Ultimate Foundation of Economic Science

Interventionism: An Economic Analysis

Nation, State, and Economy

The Anti-Capitalistic Mentality

Socialism: An Economic and Sociological Analysis

Historical Setting of the Austrian School of Economics

The Philosophical Origins of Austrian Economics

Capitalism: A Treatise on Economics

The Gold Standard: Perspectives in the Austrian School

Economic Science and the Austrian Method

Austrian Macroeconomics

Philosophical and Ethical Implications of Austrian Economics

The Austrian Theory of Money

The Austrian School's Critique of Marxism

Methodology of the Austrian School Economists

Classical Liberalism and the Austrian School

The Positive Theory of Capital

Capital and Interest

Principles of Economics

The Free Market and Its Enemies

Government Against the Economy

Individualism and Economic Order

* * * * *

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Eugen von Böhm Bawerk
“Value does not come out of the workshop, but out of the wants that goods satisfy” The quote by Mr Eugen von Böhm-Bawerk is as true today as it was more than 100 years ago, even though modern pundits often ignore the simple fact. This blog is not an attempt to revive Mr Böhm-Bawerks thoughts, life and deeds, but from a sober view of the world comment on and analyze ongoing events. We aim to take the analysis a step further. We question accepted truths and always strive to answer the simple question “why?” We are opinionated.
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