Grundzüge der Volkswohlstandslehre I

[Title Page and Publication Details]: Title page and publication information for Alfred Amonn's 'Grundzüge der Volkswohlstandslehre', published in 1926. [Preface]: Amonn outlines the didactic purpose of the work, emphasizing a systematic reordering of existing economic doctrines rather than a new theory. He argues that the fundamental nature of the science is social rather than purely economic and explains his holistic approach to the national economy. [Table of Contents]: Detailed table of contents covering the introduction, the process of wealth formation, individualistic exchange, economic dynamics, and the history of economic schools. [Introduction: The Subject and Task of Economic Theory]: Amonn defines 'welfare' (Wohlfahrt) and 'wealth' (Wohlstand), distinguishing between internal and external conditions. He introduces the concept of the national economy (Volkswirtschaft) as a mechanism for wealth creation and highlights the modern interdependence of individuals within a global world economy. [The Emergence of Economic Science]: This section traces the history of economic thought from Mercantilism (focus on precious metals) and Physiocracy (focus on land) to Adam Smith's Classical School. Amonn critiques his predecessors for raw empiricism or pure speculation, praising Smith for combining observation with logical analysis. [The Essence and Conditions of National Wealth]: Amonn refines Adam Smith's definition of wealth, arguing that it depends on three factors: land, labor, and capital. He emphasizes that national wealth is not just about production but also the distribution of goods, which is determined by social organization. [Nature and Origin of the National Economy]: Amonn explores the concept of the national economy as a unit of mutual interdependence. He reviews various 'stage theories' of economic development from thinkers like Friedrich List, Hildebrand, Bücher, and Schmoller, ultimately defining the national economy as a material and formal social unity. [National Wealth and Economy as Objects of Science]: Amonn distinguishes between 'pure' and 'applied' economic theory (economic policy). He argues that economics is a teleological science because it studies facts ordered toward the purpose of national wealth. He critiques modern 'economic theories' and compares his views with those of Othmar Spann and Franz Oppenheimer. [The Overall Picture of the National Economy]: Amonn describes the national economy as a continuous cycle of production and distribution. He defines key terms like National Product, National Income, and National Wealth, and distinguishes between fixed and circulating capital within the social production process. [Plant and Enterprise]: Amonn distinguishes between the 'Plant' (Betrieb), a technical unit for producing goods, and the 'Enterprise' (Unternehmung), an economic unit focused on yield and income. He discusses how these units overlap or diverge and critiques existing definitions of the entrepreneur. [Types of Plants: Large vs. Small Scale]: Amonn analyzes the organizational differences between large and small-scale plants, focusing on the separation of management and execution. He discusses the concept of 'optimal plant size' and the distinction between intensive and extensive production methods. [Forms of Enterprise]: Amonn examines four main forms of enterprise: private individual, private collective (corporations), cooperative, and public. He evaluates each based on capital mobilization, management initiative, risk-taking, and the distribution of yields. [Concentrations and Associations of Enterprises]: Amonn discusses horizontal and vertical integration, cartels, and trusts. He explains the economic significance of these associations for production stability, rationalization, and market control, noting their impact on the overall structure of the national economy. [Economic Professions and Classes]: Amonn analyzes the social stratification of the economy into professions and classes (entrepreneurs, workers, capitalists, landowners). He details the specific functions and risks associated with each class and how these roles determine their share of national income. [The Means of Production]: Amonn defines the three primary factors of production: land, labor, and capital. He argues that while labor is often seen as the most important from a practical standpoint, all three are equally essential for the social production process. [Land as a Factor of Production]: Amonn examines land's role as both a location (Standort) and a source of materials/forces. He discusses Thünen's law of location and the law of diminishing returns, exploring their implications for population capacity and economic progress. [Capital as a Factor of Production]: Amonn defines capital as 'produced means of production'. He explains how capital increases productivity, distinguishes between fixed and circulating capital, and discusses the process of capital formation through saving and its role in the 'capitalist' economy. [Labor as a Factor of Production]: Amonn analyzes labor as a personal production factor. He discusses the determinants of labor supply, the impact of the division of labor and machinery on labor intensity, and the distinction between skilled and unskilled labor. [Products and Goods]: Amonn defines products and goods within the economic cycle. He categorizes goods by order (first order for consumption, higher orders for production), durability, and mobility, incorporating Othmar Spann's insights on goods as 'means for ends'. [Needs and Demand]: Amonn explores the subjective basis of the economy: human needs. He discusses the hierarchy of needs (existence vs. culture), Gossen's law of diminishing marginal utility, and the distinction between individual and collective needs. [Utility, Value, and Costs]: Amonn details the subjective theory of value, focusing on marginal utility (Grenznutzen). He explains how value is imputed from consumer goods to production factors and discusses the relationship between value and costs as two sides of the same utility-based phenomenon. [The Organization of the National Economy]: Amonn discusses the legal and social frameworks of the economy, contrasting individualistic (market-based) and collectivistic organizations. He covers private property, freedom of contract, market formation, competition, and the role of public services. [The Individualistic Exchange Process]: Amonn analyzes the mechanics of the individualistic exchange economy. He defines money, credit, markets, and the resulting phenomena of prices, wages, interest, and rent, setting the stage for a deeper theoretical analysis of price formation. [Analysis of the Price Formation Process]: Amonn provides a step-by-step analysis of how prices reach an equilibrium (Ruhelage) through the interaction of supply and demand. He emphasizes the mutual dependence of prices and quantities and the role of production costs in regulating supply. [The Laws of Price: Cassel's Equations]: Amonn presents Gustav Cassel's mathematical formulation of price laws. He shows how prices for products and production factors are simultaneously determined in a system of equations, integrating the law of supply and demand with the law of costs. [Price and Labor: The Labor Theory of Value]: Amonn critiques the Labor Theory of Value (Ricardo, Marx), arguing that labor is not a uniform substance and that prices cannot be reduced solely to labor time or effort. He acknowledges labor's role in regulating supply but rejects it as the sole determinant of value. [Price and Marginal Utility: Utility Value Theory]: Amonn explains how subjective marginal utility determines demand and, consequently, prices. He discusses the 'marginal pair' concept and the law of equalizing marginal utility across different goods, referencing Wicksell and Böhm-Bawerk. [Competitive and Monopoly Prices]: Amonn compares price formation under competition versus monopoly. He explains how monopolists seek to maximize total value (quantity x price) and discusses price discrimination, the impact of substitutes, and the potential welfare effects of monopolies. [Price Changes]: Amonn analyzes the causes and effects of price changes, introducing the concept of 'elasticity of demand'. He argues that general price levels are less important for national welfare than the ratio between consumer prices and wages (productivity). [Money: Functions and Definitions]: Amonn defines money as a general medium of exchange and discusses its secondary functions (unit of account, store of value). He critiques Knapp's state theory of money, arguing that money's essence lies in its social use as an exchange medium rather than legal decree. [The Value of Money]: Amonn explains the determinants of money's value (purchasing power), including money supply, velocity of circulation, and credit expansion. He also discusses international exchange rates based on purchasing power parity and the balance of payments. [Changes in Money Value: Inflation and Restriction]: Amonn analyzes inflation and restriction (deflation), their causes (e.g., war, credit expansion), and their profound social and economic consequences. He explains why price changes are not uniform and how they redistribute wealth between debtors and creditors. [The Monetary System (Currency)]: Amonn discusses the organization of the monetary system (Währung). He compares metal standards (gold, silver) with paper standards and argues that while gold provided stability in the 19th century, a 'manipulated' currency can theoretically offer better stability if managed correctly. [Credit, Capital Markets, and Banking]: Amonn defines credit and its role in mobilizing capital. He describes the various types of banks (savings, commercial, central, mortgage) and their operations (deposits, discounting, emissions), and explains the function of the stock exchange as a central capital market. [Credit and the Supply of Payment Media: Central Bank Functions]: Amonn explains how credit creates payment media (e.g., banknotes, checks). He details the role of central banks in regulating this supply through discount policy to maintain monetary stability and adapt to the economy's needs. [Income and Distribution]: Amonn introduces the theory of income distribution. He defines national income and explains how it is divided among the factors of production as wages (labor), interest (capital), rent (land), and profit (entrepreneurship). [Wages]: Amonn critiques historical wage theories (Iron Law, Wage Fund) and discusses modern views like marginal productivity. He analyzes how labor supply and demand determine wages and the impact of unions and unemployment on the labor market. [Interest]: Amonn explores the nature of interest as the price for capital use. He discusses the 'agio' of present goods over future goods, the productivity of capital, and the role of saving and life expectancy in determining the interest rate. [Ground Rent]: Amonn analyzes ground rent as the price for land use. He explains differential rent based on fertility and location, arguing that rent is a result of price formation rather than its cause. [Profit]: Amonn distinguishes between various types of profit: windfall (conjunctural), monopoly, and true entrepreneurial profit. Following Schumpeter, he defines entrepreneurial profit as a temporary surplus resulting from the introduction of new production methods. [Statics and Dynamics in Economic Life]: Amonn introduces the distinction between economic statics (equilibrium states) and dynamics (processes of change). He argues that while statics is a necessary starting point for theory, dynamics explains the actual progress and fluctuations of the economy. [The State of Equilibrium]: Amonn describes the theoretical state of economic equilibrium where all variables remain constant. He notes that while this state is rarely achieved in reality, it serves as a vital model for understanding economic forces. [Disturbances of Equilibrium]: Amonn discusses various factors that disturb economic equilibrium, such as weather-related harvest changes, monetary inflation/restriction, war, and government interventions like taxes or tariffs. [Economic Development]: Amonn defines economic development as progress driven by entrepreneurial innovation. He explains how new methods, markets, or goods disrupt the static state, create temporary profits, and eventually lead to a new equilibrium with higher welfare. [Business Cycles (Konjunkturen)]: Amonn analyzes the cyclical nature of economic development, characterized by alternating periods of upswing (boom) and depression. He focuses on the role of capital goods production and credit expansion in driving these cycles. [Economic Crises]: Amonn examines the nature of economic crises as violent interruptions of continuity. He identifies overproduction of capital goods and credit overextension as primary causes, often exacerbated by speculation. [Economic Development in the 19th Century]: Amonn provides a historical overview of the 19th-century industrial revolution, highlighting the roles of steam power, machinery, coal, iron, and improved transportation (railways, steamships) in creating a global world economy. [General Tendency of Individualistic Economic Development]: Amonn critiques the Marxist 'immiseration theory' (Verelendungstheorie). He argues that while the early industrial period was harsh, the late 19th century saw a significant rise in the standard of living for the masses, contrary to socialist predictions. [Changes in Value and Income Ratios during Development]: Amonn analyzes how economic development affects the relative shares of labor, capital, and land. He critiques Ricardo's views and explores how technological progress and capital accumulation can lead to rising real wages despite population growth. [Economic Development and Population]: Amonn evaluates Malthus's population law. He argues that while the physiological tendency to multiply is strong, technological progress and 'preventive' checks (birth control) have allowed welfare to increase alongside population in modern times. [The Classical School and Scientific Socialism]: Amonn reviews the development of economic science from Adam Smith to Karl Marx. He highlights the shift from practical-political concerns to pure theory (Ricardo) and the eventual culmination of the labor theory of value in Marxism. [The Historical School]: Amonn describes the rise of the Historical School in Germany (Roscher, Hildebrand, Knies, Schmoller). He explains their critique of classical 'abstraction' and their emphasis on history, social context, and ethics in economic research. [The Austrian School and the Methodenstreit]: Amonn details the 'Methodenstreit' (clash over methods) between Carl Menger (Austrian School) and Gustav Schmoller ( jünger Historical School). He defends the necessity of abstract-deductive theory while acknowledging the value of historical research. [Resolution of the Methodological Conflict]: Amonn proposes a resolution to the Methodenstreit by distinguishing between different types of economic problems: abstract-theoretical, historical-concrete, and practical-political. He argues that each requires its own specific method and that they are complementary. [The Theoretical Consideration of the National Economy]: Amonn defines the scope of economic theory as the study of social relations in the production process. He critiques Othmar Spann's 'universalist' approach, arguing that while Spann's normative theory is valid, it does not replace the causal-theoretical economics established by Smith and Ricardo. [The Concept of Value and the Value Problem]: Amonn concludes with a discussion on the concept of value. He critiques the idea that exchange value requires an underlying 'substance' (like labor) and argues instead for a functional understanding of value as a social ratio determined by supply and demand. [Subject Index]: Alphabetical subject index for the volume.