by Weber
[Front Matter and Table of Contents]: The front matter of the Festschrift for Alexander Mahr, including the title page, copyright information, and a comprehensive table of contents listing contributions from various international economists and sociologists. [Table of Contents (Continued) and Introduction]: Conclusion of the table of contents followed by an introductory address by Wilhelm Weber. Weber discusses his personal and professional relationship with Alexander Mahr, their shared roots in the Austrian School of Economics, and the preparation of the Festschrift. [Alexander Mahr — Portrait of an Economist: Life]: A biographical sketch of Alexander Mahr, detailing his education in philology and later transition to economics. It covers his academic struggles during the interwar period, his relationship with the Austrian School, and his eventual appointment as a professor in Vienna after 1950. [Alexander Mahr — Portrait of an Economist: Scientific Work]: A detailed analysis of Mahr's economic theories. It explores his contributions to the Austrian School's methodology, his critique of indifference curves, his refinements of Böhm-Bawerk's interest theory, and his engagement with Keynesian macroeconomics. The section also covers his views on monetary stability, exchange rates, and protectionism. [Meta-Economics and Bibliography]: Discussion of Mahr's later social-philosophical work regarding the challenges of the modern 'affluent society' and the need for a new lifestyle. This is followed by a comprehensive bibliography of Mahr's books and contributions to collective works. [Bibliography of Alexander Mahr: Journal Articles and Editorial Work]: A comprehensive list of Alexander Mahr's journal publications spanning 1927 to 1964, covering topics such as exchange rate theory, monetary stability, marginal utility, and economic integration. It also lists his editorial roles for the Zeitschrift für Nationalökonomie and other international economic journals. [Operative Begriffsbildung in der Wirtschaft]: Adolf Adam explores the application of semiotics, cybernetics, and information theory to economic methodology. Starting with a critique of Alexander Mahr's views on the limits of quantification, Adam argues for an operationalist approach where economic structures are mapped onto symbolic systems. He discusses the classification of scales (nominal, ordinal, cardinal), the role of statistical 'Alpha-Information' in handling incomplete data, and the importance of functional means. The essay concludes with a cybernetic analysis of production functions and the trade-off between optimality and stability in economic planning. [Di alcune inezie d’importanza fondamentale nel ragionamento economico]: Tullio Bagiotti reflects on the evolution of economic theory, contrasting the 'exact' methods of the Austrian School with modern modeling. He re-examines 'trifles' like consumer surplus, utility, and the distinction between subjective and objective evidence. Bagiotti analyzes the debates between Böhm-Bawerk and Wieser on imputation and distribution, the limitations of indifference curves, and the role of 'force' versus 'economic law' in wage determination and market forms. He argues that neglecting the semantic foundations of subjective and objective evidence leads to an 'escape' from the discipline into pure modeling or sociology. [Die Voraussetzungen der Handelsbilanzsanierung durch Inlandserzeugung]: Dimitrios Delivanis analyzes why domestic production of previously imported goods often fails to improve the trade balance in developing countries. He identifies factors such as increased demand for foreign raw materials and machinery, the inflationary pressure of development, and the 'demonstration effect' that shifts consumer preferences toward foreign goods as incomes rise. He concludes that trade balance improvement only occurs if production increases faster than nominal income and if specific conditions regarding consumption and investment are met. [Säkulare Verschiebungen im internationalen Preissystem]: Léon Dupriez examines long-term (secular) shifts in international price structures, moving beyond short-term monetary explanations. Through historical cases (Prussia-UK, US-Europe, Congo-Belgium), he demonstrates how technical progress and industrialization lead to a convergence of price systems. He argues that as countries develop, their internal price structures (wages and non-traded goods) shift upward relative to internationally traded commodities. This 'real' analysis suggests that economic integration, like the Common Market, inevitably leads to an 'Americanization' of European price relations as technical levels align. [A Note on Unemployment in Underdeveloped Countries]: Howard Ellis addresses the controversy surrounding 'disguised unemployment' and 'surplus labor' in underdeveloped economies. He clarifies that while orthodox theorists like Viner doubt the existence of zero marginal productivity, the concept remains valid in the context of peasant family farming. In these non-commercial settings, labor is applied based on average product rather than marginal product, leading to a surplus where marginal productivity is below subsistence. Ellis argues that transferring this labor to industry remains a viable strategy for capital formation and growth. [Marxian Economics in Retrospect and Prospect]: The beginning of Gottfried Haberler's retrospective on Marxian economics. (Note: This segment only contains the title and initial metadata as per the chunk boundary). [Marxian Economics in Retrospect and Prospect: The Theory of Value and Price]: Gottfried Haberler evaluates Marx as an economist, focusing on the internal contradictions of the labor theory of value and the 'transformation problem' between Volume I and Volume III of Das Kapital. He highlights Eugen von Böhm-Bawerk’s critique as the most definitive analysis of these flaws, further supported by Paul Samuelson’s modern linear theoretical analysis. Haberler argues that Marxian economics has proven operationally sterile for both capitalist and socialist economies, noting that Soviet planners have been forced to adopt 'bourgeois' economic concepts like interest rates to achieve efficient resource allocation. [Marx' Economic Prophecies and Their Historical Failure]: Haberler examines two central Marxian prophecies: the theory of the increasing misery of the working class and the increasing severity of economic depressions. He demonstrates that real wages have risen significantly in industrial nations, contradicting the absolute immiserisation thesis, and that the theory of imperialism failed to account for the post-colonial prosperity of Western powers. He also critiques the 'terms of trade' argument used by Myrdal and UN economists as a non-Marxist derivative of exploitation theory. Finally, he argues that the Great Depression was a result of specific policy failures rather than an inherent capitalist trend toward collapse, a view reinforced by the post-WWII era of stability. [Concluding Remarks on the Close of the Marxian System]: Haberler concludes by affirming Böhm-Bawerk's 1896 prediction that the Marxian economic system would lose its scientific influence despite its political survival. He notes that even the Soviet Union and the German Social Democratic Party have moved away from strict Marxian dogmas. Ironically, Haberler points out that the Communist Manifesto contains some of the most glowing descriptions of the productive power of the bourgeoisie and capitalism, which modern 'Marxist' dictators in developing nations would likely find unpalatable. He maintains that while socialism survives, Marxian economics is a 'closed' system of historical interest only. [Zur Diskussion über die Rolle der Konkurrenz in der modernen Wirtschaft: Der Doktrinwandel]: Walter Adolf Jöhr traces the evolution of competition theory in the 20th century, moving from the abstract model of 'perfect competition' to more realistic frameworks. He discusses the pivotal contributions of Joan Robinson and Edward Chamberlin regarding imperfect and monopolistic competition, and Joseph Schumpeter's defense of 'big business' as an engine of progress through 'creative destruction.' The segment also introduces J.M. Clark's concept of 'workable competition' and Lawrence Abbott's focus on quality competition. Jöhr highlights how the experience of totalitarianism led to a 'renaissance' of the competition idea among Neo-liberal and Ordo-liberal thinkers. [Stellungnahme: Die Begriffe der Konkurrenz und des Konkurrenzsystems]: Jöhr provides a critical assessment of competition terminology and the utility of the 'perfect competition' model. He defines competition broadly as the endeavor of subjects to measure themselves against others in a specific performance area, distinguishing between the act of competing and the 'competition system' as a coordination mechanism. He defends the model of perfect competition against critics like Hayek and Heuss, arguing that while it is an abstraction, it remains a vital heuristic tool for identifying deviations in the real world, such as excess profits or unequal income distribution. He concludes by critiquing Erich Schneider's behavioral approach for overemphasizing subjective behavior over market structure. [The Model of Perfect Competition as an Ideal or Goal of Economic Policy]: This section examines the model of perfect competition as a normative ideal for economic policy. The author critiques the assumption that perfect competition always maximizes welfare, citing Chamberlin and Abbott to argue that product differentiation and spatial monopolies (like retail locations) often better serve consumer preferences. It discusses how quality competition and creative destruction (Schumpeter) can lead to greater welfare gains than a rigid adherence to homogeneous competition, while acknowledging that perfect competition remains a useful benchmark for promoting rationality and transparency in certain sectors. [Imperfect, Monopolistic, and Quality Competition]: The author clarifies the terminology surrounding imperfect competition, distinguishing between monopolistic competition (heterogeneous goods) and oligopolies (homogeneous goods). He proposes using the term 'heterogeneous competition' to avoid the pejorative connotations of 'monopoly'. The section introduces a taxonomy of competition types, including price competition, quality competition (material, service, snob appeal), and 'creative competition' (product innovation), and provides a systematic overview of how these relate to the model of perfect competition. [Profit Maximization as a Corporate Objective]: This section debates the validity of profit maximization as the primary goal of the firm. It contrasts Fritz Machlup's defense of the principle—arguing that its abandonment destroys the predictive power of economic theory—with the views of Gutenberg and Hill, who suggest that firms pursue multiple goals such as liquidity, market share, and social security. The author argues for a more realistic theory that acknowledges profit orientation without strictly requiring maximization, noting that factors like time horizons, uncertainty, and personal management styles create deviations from the rational ideal. [Consequences for Business Cycle and Growth Theory]: The author explores the implications of uncertainty and non-maximizing behavior for broader economic theories. By relaxing the rigid curves of supply and demand into 'blurred strips', the theory allows for the influence of power and social psychology. This supports a socio-psychological theory of the business cycle. Furthermore, the section links these microeconomic behaviors to long-term growth, suggesting that the 'industrial climate' and 'capitalist spirit' (referencing Weber and Sombart) should be incorporated into modern growth models. [Criteria of Economic Growth: Introduction and Theoretical Foundations]: Reinhard Kamitz introduces the criteria for economic growth, contrasting the post-WWII focus on growth with the interwar focus on unemployment. He defends the continued relevance of classical theory and full-employment assumptions as necessary abstractions, while acknowledging Keynes's contribution in analyzing underemployment. Kamitz argues that growth policy is not a new science but a continuation of the classical inquiry into the 'wealth of nations', now complicated by the massive expansion of the public sector and its impact on central bank efficacy. [Economic Equilibrium and Growth Policy]: Kamitz discusses the necessity of maintaining economic equilibrium to ensure successful growth. He argues that growth policy must prevent restrictive deflationary shocks and secondary deflation caused by misinvestments. Drawing on Haberler and Harrod, he emphasizes that while creating conditions for growth is essential, the more difficult task is preventing the release of productive factors (unemployment/idle capacity) that occurs when equilibrium is disturbed. Economic policy should focus on creating the framework for maximum productivity rather than direct dirigisme. [Forms of Equilibrium: Price, Firm Size, and Production Structure]: This section details three forms of economic equilibrium critical for growth: 1) The equilibrium price and the marginal productivity theory of the Austrian School, which ensures optimal factor allocation. 2) The optimal firm size, where competition drives firms toward the point of lowest unit costs. 3) The production structure, specifically the balance between capital goods and consumer goods. Kamitz notes that while interest rates (Wicksell) influence this balance, entrepreneurial expectations (Keynes/Knight) are equally decisive. Imbalances here lead to structural crises and growth-inhibiting deflationary effects. [III. Mittel und Methoden einer wirtschaftlichen Wachstumspolitik]: Weber discusses the instruments of growth-oriented economic policy, emphasizing the maintenance of equilibrium between production and consumption sectors to avoid restrictive effects. He analyzes the role of fiscal policy, infrastructure projects, and tax incentives (like Austria's 'Bewertungsfreiheit') in stimulating investment. The section also addresses the psychological 'climate of trust' necessary for entrepreneurial activity and the limitations of using tax increases to curb overheating if the revenue is immediately spent by the state. [Consumption Stimulation and Economic Integration]: This segment explores how consumption can be stimulated through income policy and the redistribution of the social product, provided it aligns with productivity gains. It also details the policy of economic integration, arguing that reducing trade barriers and specializing through the international division of labor enhances overall productivity, despite the resistance from uncompetitive sectors. [National Credit Policy and International Monetary Order]: Weber critiques the belief that low interest rates alone drive growth, citing the Great Depression and post-war reconstruction as counter-examples. He advocates for a credit policy that supports rather than disrupts broader growth strategies. Furthermore, he defends the Bretton Woods system and the IMF for allowing evolutionary adjustments to balance of payments issues without the deflationary shocks inherent in the gold standard, while warning against creeping currency devaluation. [Defoe als Künstler, Owen als Vollender]: Richard Kerschagl presents a comparative analysis of Daniel Defoe and Robert Owen, viewing Owen as the fulfiller of ideas Defoe proposed a century earlier. He contrasts Defoe's mercantilist, state-interventionist approach with Owen's focus on self-help, cooperatives, and experimental communities like New Lanark. The essay also incorporates John Law into the comparison, examining how their different social backgrounds (artisan, banker, industrialist) shaped their views on social justice, money, and the role of the state in economic life. [Zur Problematik empirischer Grundlagen der Investitionspolitik]: Stephan Koren examines the shift in economic policy from full employment to growth, noting that growth policy often lacks a solid theoretical and empirical foundation. He critiques the reliance on the capital-output ratio and the difficulty of measuring capital stock. Koren argues that the relationship between investment rates and growth is not as direct as often assumed, citing Aukrust's findings and the significant time lags involved in infrastructure investments. [Strukturänderungen der Kapitalintensität in Österreich]: This section analyzes the structural changes in capital intensity within the Austrian industry during the 1950s and 1960s. It highlights the lack of reliable empirical data on capital stock and discusses the surprising divergence since 1962, where industrial production continued to rise while gross investments declined. The author examines potential explanations such as capacity utilization and shifts between capital-intensive and capital-extensive sectors, concluding that these factors do not fully explain the discrepancy and suggesting that changes in investment structure or scrap rates might be responsible. [Problematik der Fülle: Wirtschaftswachstum und Überflussgesellschaft]: Michael Kröll examines the long-term implications of continuous economic growth in industrial societies, referencing Schumpeter's predictions and Jöhr's extrapolations. He discusses the tension between investment-driven growth and consumption capacity, contrasting the 'future science' view of population explosion with Galbraith's concept of the 'Affluent Society.' The segment critiques the imbalance between private abundance and public sector neglect, exploring how marketing maintains demand in a state of goods surplus and the potential for a transition from traditional economic concepts to a more socially balanced distribution. [Kritik der Überflußgesellschaft: Packard, Riesman und Mahr]: This segment examines the critiques of the affluent society by Vance Packard, David Riesman, and Alexander Mahr. Packard highlights systematic waste and psychological obsolescence in the US economy, while Riesman distinguishes between inner-directed and other-directed consumption. Mahr applies these concepts to Europe, arguing that growing prosperity leads to denaturalization and urbanization, proposing a 'garden home' lifestyle and a new intellectual elite to restore social values. [Die Grenzen der materiellen Bedürfnisse: Ethische und ökonomische Perspektiven]: The author explores the limits of material needs from ethical, classical, and marginal utility perspectives. While Gossen's Law suggests individual needs are satiable, the segment distinguishes between natural needs (physical and cultural) and 'suggested' or 'imaginary' needs driven by social imitation and marketing. It concludes that while natural needs have objective limits in time and space, suggested needs are pushed outward by social pressure and advertising, though they eventually face diminishing returns. [Öffentliche Bedürfnisse und das Problem des sozialen Gleichgewichts]: This section addresses the imbalance between private affluence and public poverty, echoing Galbraith's call for 'social balance'. The author argues that while private natural needs are limited, public needs (infrastructure, education, environmental protection) are nearly limitless. However, democratic societies face significant tax resistance, viewing public spending as 'wasted money'. The author suggests a reallocation of resources from artificial private consumption to essential public services and environmental preservation, guided by a natural elite. [Die geistesgeschichtliche Bedeutung der österreichischen Schule]: Ludwig Lachmann defends the Austrian School's unique methodological approach, characterizing it as a 'Geisteswissenschaft' (human science) focused on 'Verstehen' (understanding). He contrasts this with the 'positivist monism' of the Lausanne School (Walras/Pareto) and the substance-based theories of the Classicals (Ricardo). Lachmann argues that the Austrian focus on individual plans, subjective valuation, and the logic of choice provides a superior framework for interpreting economic reality compared to timeless equilibrium models. [Le marché des eurocrédits: Origines et fonctionnement]: Jean Marchal analyzes the emergence and mechanics of the Eurocredit market (specifically Eurodollars). He defines Eurocurrencies as deposits held in banks outside their country of origin. The segment details the sources of these funds (central banks, commercial banks, and large corporations) and their uses (financing international trade and domestic transactions). Marchal highlights how this market increases international liquidity by activating idle cash and bypassing domestic interest rate regulations like Regulation Q. [Les conséquences du marché des eurodevises]: This section analyzes the consequences of the eurocurrency market, viewing it as an embryonic international monetary market. It discusses risks associated with credit chains, the movement of speculative 'hot money', and the potential for these markets to undermine national monetary policies and anti-inflationary efforts. The author argues for the coordination of national monetary policies and the establishment of common surveillance bodies within the European Economic Community. [Eigentumspolitik und Eigentumsethik]: Johannes Messner explores the ethical and political dimensions of private property, emphasizing its role in securing individual freedom and decentralizing economic power. He critiques Marxist and collective fund approaches to property, arguing instead for a wide distribution of productive property and the importance of individual responsibility. The essay links successful property policy to monetary stability, productivity-based wages, and workplace partnership (Leistungspartnerschaft) as alternatives to state-driven or collective ownership models. [The Compressibility of Economic Systems and the Problem of Economic Constants: Part I]: Oskar Morgenstern introduces the concept of 'compressibility' in organizations and economic systems, distinguishing between essential 'kernels' and inessential 'outer layers'. He explores how systems can be reduced to their core functions under stress (like war or resource scarcity) without total collapse. The text contrasts totally connected systems with redundant ones and discusses the role of technology and substitution in determining a system's resilience and breaking points. [Part II: Are there Constants in Economics?]: Morgenstern explores the existence of economic constants, distinguishing them from physical constants by identifying them as bounds or constraints derived from physiological and technological facts. He argues that the economy has a rigid sub-structure or infra-structure determined by human biology and technological necessity, which limits the range of possible economic outcomes. Using a thought experiment involving population and car ownership, he demonstrates how a significant amount of economic structure can be inferred from minimal data, contrasting this structural approach with standard Walras-Pareto models and price-based input-output analysis. [Einige neuere Probleme und Aspekte der Fiskalpolitik]: Fritz Neumark analyzes modern developments in fiscal policy, focusing on the reception of Keynesian theories and the evolution of tax policy. He categorizes four types of tax reductions: classical-liberal, inflation-adjustment, long-term growth-oriented, and short-term anti-cyclical (citing the 1964/65 US tax cuts as a primary example). The essay introduces the concept of the 'full-employment budget' as a tool for assessing whether fiscal policy is overly restrictive. Neumark also discusses the political challenges of 'timing' fiscal interventions, comparing the US 'standby authority' proposals with the British system of discretionary tax variations, and suggests that executive flexibility is essential for managing both inflationary and deflationary pressures. [Erscheinungsformen und Gleichgewichtsfunktionen des Zinses]: Opening title and author attribution for a section regarding the forms and equilibrium functions of interest rates. [I. Die verschiedenen Fragestellungen und Modellvarianten in der Zinstheorie]: Nußbaumer explores the diverse conceptualizations of interest in economic literature, contrasting Alexander Mahr's focus on real capital productivity with Kenneth Boulding's view of interest as a psychological growth rate of monetary capital. The section reviews four variants: real vs. money interest, and interest as a factor of production in stationary models vs. a reward for innovation in growth models. It further examines Keynes's liquidity preference theory and its macroeconomic implications, alongside Erich Schneider's formal model of equilibrium where interest links saving, investment, and employment. The author concludes that interest is a multifaceted phenomenon requiring different theoretical treatments depending on whether the context is microeconomic, macroeconomic, stationary, or dynamic. [II. Zinssatz und Ertragssatz in neoklassischer Betrachtung]: This section provides a microeconomic analysis of the relationship between interest rates and the marginal rate of return on capital within a neoclassical framework. Nußbaumer argues that while firms strive for an internal financial equilibrium where marginal returns across all capital forms (real and monetary) are equal, this identity with the market interest rate only occurs in a stationary end-state. He discusses how discrepancies between interest and return rates lead to capital gains or losses, influencing investment. Furthermore, he posits that a single interest rate is insufficient for general equilibrium; instead, a structure of interest rates across differentiated markets (real vs. money capital) is necessary to prevent inflation or contractionary stagnation. [Mathematical Divergence of Interest and Return Rates]: A brief mathematical demonstration showing that in dynamic models, the interest rate (i) and the rate of return (e) diverge if their capitalization or reinvestment periods do not coincide. Using examples of monthly vs. annual compounding, the author illustrates that the gap between these rates increases with the length of the period discrepancy and the absolute height of the interest rate. [III. Zinsbildung, Wirtschaftswachstum und makroökonomische Einkommensverteilung]: Nußbaumer applies a modified Keynesian growth model to examine the relationship between the real rate of return and the lending rate. He demonstrates that in a growing economy, the rate at which households provide capital (deposit rate) and the rate at which firms invest (investment rate) are determined by macroeconomic equilibrium conditions, including the capital coefficient and growth targets. A key finding is that the interest spread of credit institutions is not merely a result of market power but a structural necessity of balanced economic growth, as the deposit rate and the real return rate rarely coincide in equilibrium. [Some Problems of Aid to Developing Countries: Monetary Policy]: Giuseppe Ugo Papi discusses the limitations of monetary policy in less developed countries (LDCs). Drawing on Sidney Caine's observations, he notes that LDCs often lack the sophisticated money markets required for traditional central bank techniques like open-market operations or interest rate manipulation. Because large portions of these economies rely on subsistence agriculture and exports are driven by international demand rather than domestic credit, monetary stimulus is often ineffective. The section highlights the 'disproportion' of production factors (surplus labor vs. lack of capital) as a primary barrier to growth that monetary policy alone cannot resolve. [Some Problems of Aid to Developing Countries: Trade Policy]: Papi analyzes the structural challenges in trade relations between developing and industrialized nations. He identifies three main factors slowing LDC exports: the low income-elasticity of demand for agricultural products, technological progress leading to synthetic substitutes (e.g., synthetic rubber/fibers), and agricultural protectionism in developed countries (subsidies, quotas, and internal taxes). He clarifies a common misunderstanding: while temperate-zone products face high barriers, tropical products and minerals (the bulk of LDC exports) are less affected by traditional trade restrictions, meaning LDCs have less to gain from standard multilateral tariff negotiations like GATT. [Factors of the Slower Rate of Exports Concerning the Characteristics of the Supply]: This section examines why exports from developing countries have slowed, citing high production costs due to a lack of modern technical processes and structural overproduction of tropical goods. It highlights the risks of limited diversification and the lack of international consultation among exporting nations, suggesting that regional integration and revised trade controls are necessary to address economic imbalances. [Total Aid to Less Developed Countries]: An analysis of the total financial aid provided to developing countries, distinguishing between bilateral public sector contributions, private capital, and multilateral organizations. It includes a detailed statistical table (Table I) comparing aid supplied by DAC member countries versus aid actually received by less developed countries between 1960 and 1963, noting a significant increase in 1963. [Trade Liberalization and Industrial Evolution in Advanced Countries]: The author discusses the proposal for industrialized nations to unilaterally reduce trade obstacles and cede light industry production to developing nations. However, the text argues that such liberalization would only slightly increase exchanges, as many tropical products already face low tariffs, and the real barriers often involve complex internal fiscal regimes or protectionism for temperate-zone agricultural products. [United Nations Conference on Trade and Development and Industrial Transformation]: A review of the 1964 Geneva Conference (UNCTAD), noting that trade barrier elimination is insufficient without addressing structural problems in developing nations. It also discusses the long-term necessity for advanced countries to transition away from light industries like textiles toward more specialized sectors, requiring government assistance for worker requalification and industry modernization. [Stabilization Policy and the Development Insurance Fund]: This section explores measures to mitigate violent fluctuations in export prices and earnings. It critiques the Development Insurance Fund (DIF) and the Organization of American States (OAS) project, arguing that these schemes often function as one-way gifts rather than true insurance and fail to address the underlying structural issues of the developing economies. [Marketing Boards and Caisses de Stabilisation]: An evaluation of national-level stabilization tools such as Marketing Boards and 'Caisses de stabilisation'. While Marketing Boards can protect producers and manage surpluses, the author warns against using them as revenue sources for the state. The 'Caisses' are noted for their dependence on external (French) government support and their potential to distort international markets. [Structure Policy: The Food Gap and Phases of Development]: The author argues that the trade deficit is a structural 'food gap' caused by low productivity. Using 1970 projections, the text details nutritional deficits across Asia, Africa, and Latin America. It outlines a sequence for development: first improving human capital and infrastructure, then rationalizing agriculture, and finally transitioning excess labor into industrial and tertiary sectors. [Emergency Policy: The World Food Program]: This section describes the World Food Program (WFP) established by the FAO to address urgent nutritional needs and support social development. It explains how food aid can prevent inflationary pressure and create local 'counterpart funds' for investment, while providing a table of approved projects by category and region as of July 1964. [Coordination Policy and Conclusions]: The final section of Papi's essay calls for an 'organic conception' of aid, where trade, stabilization, and structural problems are addressed together. It advocates for a single international organization (like FAO) to coordinate the multiple disconnected aid agencies to eliminate overlap and maximize efficiency through a pragmatic, data-driven approach to development planning. [Das „Gemeinwohl“ als Begriff der theoretischen Wirtschaftspolitik]: Theodor Pütz examines the concept of the 'Common Good' (Gemeinwohl) in economic policy, referencing Alexander Mahr's work. He explores whether the term can have operational meaning in economic theory to distinguish between group interests and collective interests. Pütz critiques normative social-philosophical definitions and the limitations of modern welfare economics in defining a social welfare function. [The Role of Science in Defining the Common Good]: Pütz concludes his investigation into the common good by arguing that while objective definitions are difficult in pluralistic democracies, science can help by clarifying the consequences of specific policies. By making the effects of interest-group actions transparent, science can reduce the influence of special interests and support the government's role in pursuing a rational economic policy. [Vorgeschichte und Entwicklung der Soziologie in Österreich bis 1933]: Leopold Rosenmayr provides an overview of the origins and development of sociology in Austria. He identifies diverse roots including cameralism, legal sociology (Renner, Ehrlich), and philosophical schools (Gomperz, Jerusalem). He notes the tension between speculative social theory (Spann) and the eventual emergence of empirical social research around 1930, particularly through the work of Paul Lazarsfeld. [Frühe Beschreibungen der österreichischen und der Wiener Gesellschaft]: This section explores the precursors of sociology in Austria, beginning with the 17th-century Cameralist literature, specifically the works of Philipp Wilhelm von Hoernigk, who linked economic planning with social and educational structures. It discusses the 18th-century 'Topographers' who collected demographic and economic data for administrative purposes. The text highlights Ignaz Beidtel as an 'Austrian de Tocqueville' for his analysis of the Metternich era's social effects and the 'democratization of manners,' and examines Karl Postl (Charles Sealsfield), who critiqued the lack of an independent middle class and the state's educational failures from an Anglo-American perspective. [Die erste Blütezeit der österreichischen Soziologie um 1900]: This segment details the first international peak of Austrian sociology around 1900, led by figures like Ludwig Gumplowicz and Gustav Ratzenhofer, who followed the traditions of Comte and Spencer. It discusses Wilhelm Jerusalem’s introduction of the 'Sociology of Knowledge' (Soziologie des Erkennens) and his concept of 'social condensation' (soziale Verdichtung), which explores how individual experiences become objective realities through social interaction. The section also notes the reception of these ideas by Emile Durkheim and the founding of the Sociological Society in Vienna, while explaining why this academic tradition faltered due to the socio-economic upheavals following World War I. [Various Theoretical and Methodological Approaches in Austrian Sociology (1900–1930)]: This section explores the diverse roots of sociology in Austria between 1900 and 1930. It traces the development from early social statistics (Sedlacek, Philippovich) and empirical religious studies (Swoboda) to the political social theories of Austro-Marxists like Karl Renner and Max Adler. It also details the emergence of a critical Catholic sociology led by Ernst Karl Winter and August M. Knoll, who challenged traditional scholastic views and analyzed the church as a conservative institution. Finally, it mentions the ideological criticism of Ernst Topitsch and his concept of 'empty formulas' (Leerformeln). [Othmar Spann's Universalism and Friedrich von Wieser's Power Theory]: This segment discusses the 'universalist' social system of Othmar Spann, a neo-Hegelian thinker who opposed individualistic and Marxist approaches. Spann emphasized spiritual community over individual action and proposed a hierarchical 'estate state' (Ständestaat). The section also briefly introduces Friedrich von Wieser's sociological work, which focused on the relationship between the masses and leadership, identifying power as the decisive factor in social action. [The Beginnings of Empirical Social Research: Paul F. Lazarsfeld and Marienthal]: This section chronicles the rise of modern empirical social research in Austria around 1930, centered on Paul F. Lazarsfeld. It highlights his innovations in youth research and the landmark 'Marienthal' study on the psychological and social effects of long-term unemployment. The text explains how these Austrian developments were later institutionalized in the United States (Columbia University) after Lazarsfeld and his colleagues were forced to emigrate, noting that empirical research was an Austrian innovation rather than a purely American invention. [Economic Theory and Economic Forecasting: Methodological Foundations]: Kurt W. Rothschild examines the relationship between economic theory and the practice of forecasting. He argues that while the 'historical school' rejects general laws, modern theoretical models provide the necessary tools for prediction if they remain grounded in empirical reality. The section addresses the legitimacy of the theorist engaging in forecasting, the technical difficulties posed by complex variables, and the specific social science problem of 'self-fulfilling' or 'self-defeating' prophecies where the publication of a forecast alters the behavior of economic actors. [Analysis of the Increase in Domestic Student Enrollments in Austria (1953–1980)]: Slawtscho Sagoroff presents a statistical model to analyze and project the number of first-semester students at Austrian universities. He distinguishes between a 'natural component' (demographic trends like birth rates and survival rates) and a 'social component' (the increasing propensity to study). Using data from 1953–1963, he provides detailed tables and extrapolations up to 1980, concluding that the social drive toward higher education is a much stronger factor in enrollment growth than demographic shifts alone. [Remarks on Marginal Productivity Theory]: Heinz Schleicher introduces a discussion on marginal productivity theory as a theory of income distribution. He outlines the classical requirements—linear homogeneous production functions, perfect competition, and profit maximization—and notes that while the 'heroic' form of the theory is rarely accepted today as a general theory, various modifications exist which he intends to explore. [Classical and Leontief Production Functions]: This section examines the microeconomic foundations of distribution theory by contrasting classical production functions (perfect substitutability) with Leontief production functions (fixed coefficients). It explores how different entrepreneurial objectives, such as profit maximization versus sales maximization with a minimum profit constraint, affect factor demand and the resulting income distribution. The author argues that in modern industrial contexts, factor demand often remains rigid or price-independent within certain intervals, challenging the traditional marginal productivity postulates. [Market Forms and Distribution Theory]: The author modifies the marginal productivity theory to account for non-competitive market structures, including monopoly, monopsony, bilateral monopoly, and oligopoly. Using the Amoroso-Robinson relation, the text demonstrates how market power leads to a divergence between marginal products and factor prices. In cases of bilateral monopoly and oligopoly (illustrated by the Sweezy kinked demand curve), the theory fails to determine a unique price, resulting instead in equilibrium ranges where factor demand may be price-inelastic, necessitating the use of bargaining theories. [Increasing Returns and Macroeconomic Feedback Effects]: This final section addresses two major critiques of marginal productivity theory: the existence of increasing returns to scale (due to technical progress or agglomeration) and the macroeconomic feedback of factor incomes on product demand. The author notes that increasing returns can lead to a 'profit-wage gap' and that the theory's implicit reliance on Say's Law incorrectly assumes automatic full employment. Consequently, the macroeconomic version of the theory is only valid for determining absolute distribution under specific full-employment conditions. [V. Grenzproduktivitätstheorie und „Konstanz“ der Lohnquote]: This section examines the relationship between marginal productivity theory and the long-term constancy or increase of the wage share. It introduces Hicksian substitution elasticity as a measure for changes in relative factor shares, discussing empirical studies by Minhas and Ferguson that challenge the Cobb-Douglas assumption of unitary elasticity. The author analyzes how different types of technical progress (neutral, labor-saving, capital-saving) and increasing capital intensity influence distribution, concluding that a substitution elasticity greater than one explains the rising wage share in modern economies. The segment concludes with a critique of neoclassical growth models and their restrictive assumptions regarding competition and factor substitution. [Das Konsumentenverhalten als Inflationsursache]: Erich Streissler presents a demand-structure theory of inflation, rooted in the Austrian School's focus on individual behavior. He argues that economic growth leads to a continuous decline in price demand elasticities due to the law of diminishing marginal utility (satiation) and a decrease in consumer information/rationality as goods become more complex. Using the Amoroso-Robinson relation, he demonstrates that profit-maximizing firms must raise prices as elasticities fall. The essay explores how inflation becomes self-reinforcing at low levels (the 'Backhendl-Effect') but remains relatively stable because consumers do not flee into real assets until a high inflation threshold is reached. He contrasts this structural view with traditional monetary, demand-pull, and cost-push theories, providing empirical correlations between growth and inflation rates. [Zur Sozialphilosophie der Ostwirtschaft]: Opening of a new section regarding the social philosophy of Eastern (socialist/communist) economies. [Zur Sozialphilosophie der Ostwirtschaft: I. Die Lenin-Stalin-Ära]: This section examines the evolution of Soviet social philosophy from the era of Lenin to Stalin. It discusses the tension between Marxist utopian goals and the pragmatic necessities of the Soviet state, noting how economic and technical requirements eventually forced shifts in ideological positioning. The text highlights the transition from the early revolutionary ideals to the centralized control of the Stalinist era, where the party claimed a monopoly on scientific truth and historical necessity. [Vom Kriegskommunismus zur NEP und zum Sozialismus in einem Lande]: An analysis of the shift from the immediate post-revolutionary 'War Communism' to the 'New Economic Policy' (NEP), which introduced partial market liberalization. It follows the subsequent rise of Stalin's doctrine of 'Socialism in one country' after Lenin's death, detailing the internal party struggles against 'Right' and 'Left' deviations (Mechanizists vs. Deborinists). The segment concludes with Trotsky's critique of Stalinist bureaucratization and the prediction of a totalizing state apparatus. [Stalin's Late Theories and Reform Ideas]: This section covers Stalin's 1936 constitutional claims regarding the completion of socialist construction and his final theoretical work from 1952. It explores the paradoxical doctrine of intensifying class struggle within a supposedly harmonized society and the introduction of 'Soviet Patriotism' as a substitute for internationalism. It also details Stalin's vision for the transition to communism, involving the elimination of market relations and the merging of state and collective property. [Die jüngste Entwicklung: Nachstalinistische Wendungen]: The text analyzes the post-Stalinist era, beginning with the Yugoslavian challenge to Soviet 'state socialism' and Tito's alternative model of worker self-management. It describes the 'Thaw' under Khrushchev, the 20th Party Congress's condemnation of the cult of personality, and the resulting ideological shifts toward 'peaceful coexistence' and 'socialist welfare.' The section highlights the internal conflict between the party leadership's utopian goals and the technocratic elite's desire for stability. [The 1961 Party Program and the Shadow of China]: This segment focuses on the 1961 Soviet Party Program and the deepening Sino-Soviet split. Khrushchev's program promised the achievement of full communism by 1980, emphasizing the creation of a 'New Socialist Man' and a 'welfare communism' intended to surpass the United States in production. The text discusses how the conflict with China's more aggressive doctrine forced the USSR to define its path more clearly, balancing between central planning and emerging calls for profitability and market orientation in satellite states like Poland. [Öffentliche Ausgaben in einer langfristigen Wirtschaftspolitik]: The beginning of a new article by Wilhelm Weber concerning the role of public expenditures within long-term economic policy frameworks. [Allgemeine Überlegungen zur langfristigen Wirtschaftspolitik]: Wilhelm Weber explores the theoretical foundations of long-term economic policy, distinguishing it from short-term business cycle management. He defines public expenditures within the framework of growth policy and discusses the challenges of decision-making in multi-party democracies, where compromises often lead to 'second-best' welfare solutions. The section also addresses the potential incompatibility between maximal economic growth and equitable income distribution, suggesting that entrepreneurial behavior and fiscal instruments can bridge these goals. [Budgetpolitik und institutionelle Einflussfaktoren]: This segment analyzes the economic and political boundaries of public budgets. Weber argues that while the growth of the social product determines the upper limit of state spending, political and sociological factors—such as the influence of interest groups and political parties—drive the expansion of expenditures. He discusses the 'law of increasing state activity' and suggests that in a maturing welfare society, the state's share of the social product might eventually stabilize as certain functions return to the private sector. [Langfristige Budgetprognose und Wachstumstheorie]: Weber advocates for a shift from annual budgeting to long-term budget forecasting and conceptualization, particularly for growth-oriented policies. He critiques the applicability of Harrod-Domar growth models for practical policy, favoring macroeconomic production functions while acknowledging their neglect of the demand side. The section outlines the formal requirements for a Tinbergen-style decision model to optimize growth variables like labor volume, productivity, and capital. [Wachstumswirksamkeit staatlicher Ausgaben und Wettbewerbspolitik]: This section examines specific categories of public spending and their impact on growth, including transport, energy, education, and health. Weber discusses the importance of active labor market policies over global demand expansion in full-employment economies. He also links competition policy (antitrust) and debt management to growth, noting how the repayment of state debt to different creditors (central banks vs. private households) has varying inflationary and distributive effects. [Preisniveaustabilität, Verteilungsgerechtigkeit und Kommunalpolitik]: The author discusses the dual components of welfare: growth and distribution. He defines justice in a market economy through the 'performance principle' (Leistungsprinzip) supplemented by the 'social principle' for those outside the production process. The section emphasizes that growth policy is inherently linked to distribution. Finally, it addresses the role of local authorities (states and municipalities) in economic policy, highlighting the need for coordinated budget concepts across different levels of government. [Österreich als Beispiel: Analyse der Staatsausgaben]: Weber applies his theoretical framework to the Austrian context, analyzing specific expenditure categories: national security, agricultural subsidies (including the 'Green Plan'), housing finance, and social transfers. He notes that Austrian planning has historically been decentralized and short-term. He highlights the high proportion of social transfers in the Austrian budget and their impact on consumption and growth, suggesting that social security goals often take precedence over other economic objectives. [Infrastruktur, Staatsschuld und der Einfluss der EWG]: The final section examines Austrian investment in infrastructure (rail, post, roads) and the management of the national debt. Weber discusses the 1965 budget forecast as a first step toward long-term planning, influenced by the prospect of Austria's association with the European Economic Community (EEC/EWG). He concludes by pointing out the lack of research and coordination in the financial equalization (Finanzausgleich) between the federal government, states, and municipalities.
The front matter of the Festschrift for Alexander Mahr, including the title page, copyright information, and a comprehensive table of contents listing contributions from various international economists and sociologists.
Read full textConclusion of the table of contents followed by an introductory address by Wilhelm Weber. Weber discusses his personal and professional relationship with Alexander Mahr, their shared roots in the Austrian School of Economics, and the preparation of the Festschrift.
Read full textA biographical sketch of Alexander Mahr, detailing his education in philology and later transition to economics. It covers his academic struggles during the interwar period, his relationship with the Austrian School, and his eventual appointment as a professor in Vienna after 1950.
Read full textA detailed analysis of Mahr's economic theories. It explores his contributions to the Austrian School's methodology, his critique of indifference curves, his refinements of Böhm-Bawerk's interest theory, and his engagement with Keynesian macroeconomics. The section also covers his views on monetary stability, exchange rates, and protectionism.
Read full textDiscussion of Mahr's later social-philosophical work regarding the challenges of the modern 'affluent society' and the need for a new lifestyle. This is followed by a comprehensive bibliography of Mahr's books and contributions to collective works.
Read full textA comprehensive list of Alexander Mahr's journal publications spanning 1927 to 1964, covering topics such as exchange rate theory, monetary stability, marginal utility, and economic integration. It also lists his editorial roles for the Zeitschrift für Nationalökonomie and other international economic journals.
Read full textAdolf Adam explores the application of semiotics, cybernetics, and information theory to economic methodology. Starting with a critique of Alexander Mahr's views on the limits of quantification, Adam argues for an operationalist approach where economic structures are mapped onto symbolic systems. He discusses the classification of scales (nominal, ordinal, cardinal), the role of statistical 'Alpha-Information' in handling incomplete data, and the importance of functional means. The essay concludes with a cybernetic analysis of production functions and the trade-off between optimality and stability in economic planning.
Read full textTullio Bagiotti reflects on the evolution of economic theory, contrasting the 'exact' methods of the Austrian School with modern modeling. He re-examines 'trifles' like consumer surplus, utility, and the distinction between subjective and objective evidence. Bagiotti analyzes the debates between Böhm-Bawerk and Wieser on imputation and distribution, the limitations of indifference curves, and the role of 'force' versus 'economic law' in wage determination and market forms. He argues that neglecting the semantic foundations of subjective and objective evidence leads to an 'escape' from the discipline into pure modeling or sociology.
Read full textDimitrios Delivanis analyzes why domestic production of previously imported goods often fails to improve the trade balance in developing countries. He identifies factors such as increased demand for foreign raw materials and machinery, the inflationary pressure of development, and the 'demonstration effect' that shifts consumer preferences toward foreign goods as incomes rise. He concludes that trade balance improvement only occurs if production increases faster than nominal income and if specific conditions regarding consumption and investment are met.
Read full textLéon Dupriez examines long-term (secular) shifts in international price structures, moving beyond short-term monetary explanations. Through historical cases (Prussia-UK, US-Europe, Congo-Belgium), he demonstrates how technical progress and industrialization lead to a convergence of price systems. He argues that as countries develop, their internal price structures (wages and non-traded goods) shift upward relative to internationally traded commodities. This 'real' analysis suggests that economic integration, like the Common Market, inevitably leads to an 'Americanization' of European price relations as technical levels align.
Read full textHoward Ellis addresses the controversy surrounding 'disguised unemployment' and 'surplus labor' in underdeveloped economies. He clarifies that while orthodox theorists like Viner doubt the existence of zero marginal productivity, the concept remains valid in the context of peasant family farming. In these non-commercial settings, labor is applied based on average product rather than marginal product, leading to a surplus where marginal productivity is below subsistence. Ellis argues that transferring this labor to industry remains a viable strategy for capital formation and growth.
Read full textThe beginning of Gottfried Haberler's retrospective on Marxian economics. (Note: This segment only contains the title and initial metadata as per the chunk boundary).
Read full textGottfried Haberler evaluates Marx as an economist, focusing on the internal contradictions of the labor theory of value and the 'transformation problem' between Volume I and Volume III of Das Kapital. He highlights Eugen von Böhm-Bawerk’s critique as the most definitive analysis of these flaws, further supported by Paul Samuelson’s modern linear theoretical analysis. Haberler argues that Marxian economics has proven operationally sterile for both capitalist and socialist economies, noting that Soviet planners have been forced to adopt 'bourgeois' economic concepts like interest rates to achieve efficient resource allocation.
Read full textHaberler examines two central Marxian prophecies: the theory of the increasing misery of the working class and the increasing severity of economic depressions. He demonstrates that real wages have risen significantly in industrial nations, contradicting the absolute immiserisation thesis, and that the theory of imperialism failed to account for the post-colonial prosperity of Western powers. He also critiques the 'terms of trade' argument used by Myrdal and UN economists as a non-Marxist derivative of exploitation theory. Finally, he argues that the Great Depression was a result of specific policy failures rather than an inherent capitalist trend toward collapse, a view reinforced by the post-WWII era of stability.
Read full textHaberler concludes by affirming Böhm-Bawerk's 1896 prediction that the Marxian economic system would lose its scientific influence despite its political survival. He notes that even the Soviet Union and the German Social Democratic Party have moved away from strict Marxian dogmas. Ironically, Haberler points out that the Communist Manifesto contains some of the most glowing descriptions of the productive power of the bourgeoisie and capitalism, which modern 'Marxist' dictators in developing nations would likely find unpalatable. He maintains that while socialism survives, Marxian economics is a 'closed' system of historical interest only.
Read full textWalter Adolf Jöhr traces the evolution of competition theory in the 20th century, moving from the abstract model of 'perfect competition' to more realistic frameworks. He discusses the pivotal contributions of Joan Robinson and Edward Chamberlin regarding imperfect and monopolistic competition, and Joseph Schumpeter's defense of 'big business' as an engine of progress through 'creative destruction.' The segment also introduces J.M. Clark's concept of 'workable competition' and Lawrence Abbott's focus on quality competition. Jöhr highlights how the experience of totalitarianism led to a 'renaissance' of the competition idea among Neo-liberal and Ordo-liberal thinkers.
Read full textJöhr provides a critical assessment of competition terminology and the utility of the 'perfect competition' model. He defines competition broadly as the endeavor of subjects to measure themselves against others in a specific performance area, distinguishing between the act of competing and the 'competition system' as a coordination mechanism. He defends the model of perfect competition against critics like Hayek and Heuss, arguing that while it is an abstraction, it remains a vital heuristic tool for identifying deviations in the real world, such as excess profits or unequal income distribution. He concludes by critiquing Erich Schneider's behavioral approach for overemphasizing subjective behavior over market structure.
Read full textThis section examines the model of perfect competition as a normative ideal for economic policy. The author critiques the assumption that perfect competition always maximizes welfare, citing Chamberlin and Abbott to argue that product differentiation and spatial monopolies (like retail locations) often better serve consumer preferences. It discusses how quality competition and creative destruction (Schumpeter) can lead to greater welfare gains than a rigid adherence to homogeneous competition, while acknowledging that perfect competition remains a useful benchmark for promoting rationality and transparency in certain sectors.
Read full textThe author clarifies the terminology surrounding imperfect competition, distinguishing between monopolistic competition (heterogeneous goods) and oligopolies (homogeneous goods). He proposes using the term 'heterogeneous competition' to avoid the pejorative connotations of 'monopoly'. The section introduces a taxonomy of competition types, including price competition, quality competition (material, service, snob appeal), and 'creative competition' (product innovation), and provides a systematic overview of how these relate to the model of perfect competition.
Read full textThis section debates the validity of profit maximization as the primary goal of the firm. It contrasts Fritz Machlup's defense of the principle—arguing that its abandonment destroys the predictive power of economic theory—with the views of Gutenberg and Hill, who suggest that firms pursue multiple goals such as liquidity, market share, and social security. The author argues for a more realistic theory that acknowledges profit orientation without strictly requiring maximization, noting that factors like time horizons, uncertainty, and personal management styles create deviations from the rational ideal.
Read full textThe author explores the implications of uncertainty and non-maximizing behavior for broader economic theories. By relaxing the rigid curves of supply and demand into 'blurred strips', the theory allows for the influence of power and social psychology. This supports a socio-psychological theory of the business cycle. Furthermore, the section links these microeconomic behaviors to long-term growth, suggesting that the 'industrial climate' and 'capitalist spirit' (referencing Weber and Sombart) should be incorporated into modern growth models.
Read full textReinhard Kamitz introduces the criteria for economic growth, contrasting the post-WWII focus on growth with the interwar focus on unemployment. He defends the continued relevance of classical theory and full-employment assumptions as necessary abstractions, while acknowledging Keynes's contribution in analyzing underemployment. Kamitz argues that growth policy is not a new science but a continuation of the classical inquiry into the 'wealth of nations', now complicated by the massive expansion of the public sector and its impact on central bank efficacy.
Read full textKamitz discusses the necessity of maintaining economic equilibrium to ensure successful growth. He argues that growth policy must prevent restrictive deflationary shocks and secondary deflation caused by misinvestments. Drawing on Haberler and Harrod, he emphasizes that while creating conditions for growth is essential, the more difficult task is preventing the release of productive factors (unemployment/idle capacity) that occurs when equilibrium is disturbed. Economic policy should focus on creating the framework for maximum productivity rather than direct dirigisme.
Read full textThis section details three forms of economic equilibrium critical for growth: 1) The equilibrium price and the marginal productivity theory of the Austrian School, which ensures optimal factor allocation. 2) The optimal firm size, where competition drives firms toward the point of lowest unit costs. 3) The production structure, specifically the balance between capital goods and consumer goods. Kamitz notes that while interest rates (Wicksell) influence this balance, entrepreneurial expectations (Keynes/Knight) are equally decisive. Imbalances here lead to structural crises and growth-inhibiting deflationary effects.
Read full textWeber discusses the instruments of growth-oriented economic policy, emphasizing the maintenance of equilibrium between production and consumption sectors to avoid restrictive effects. He analyzes the role of fiscal policy, infrastructure projects, and tax incentives (like Austria's 'Bewertungsfreiheit') in stimulating investment. The section also addresses the psychological 'climate of trust' necessary for entrepreneurial activity and the limitations of using tax increases to curb overheating if the revenue is immediately spent by the state.
Read full textThis segment explores how consumption can be stimulated through income policy and the redistribution of the social product, provided it aligns with productivity gains. It also details the policy of economic integration, arguing that reducing trade barriers and specializing through the international division of labor enhances overall productivity, despite the resistance from uncompetitive sectors.
Read full textWeber critiques the belief that low interest rates alone drive growth, citing the Great Depression and post-war reconstruction as counter-examples. He advocates for a credit policy that supports rather than disrupts broader growth strategies. Furthermore, he defends the Bretton Woods system and the IMF for allowing evolutionary adjustments to balance of payments issues without the deflationary shocks inherent in the gold standard, while warning against creeping currency devaluation.
Read full textRichard Kerschagl presents a comparative analysis of Daniel Defoe and Robert Owen, viewing Owen as the fulfiller of ideas Defoe proposed a century earlier. He contrasts Defoe's mercantilist, state-interventionist approach with Owen's focus on self-help, cooperatives, and experimental communities like New Lanark. The essay also incorporates John Law into the comparison, examining how their different social backgrounds (artisan, banker, industrialist) shaped their views on social justice, money, and the role of the state in economic life.
Read full textStephan Koren examines the shift in economic policy from full employment to growth, noting that growth policy often lacks a solid theoretical and empirical foundation. He critiques the reliance on the capital-output ratio and the difficulty of measuring capital stock. Koren argues that the relationship between investment rates and growth is not as direct as often assumed, citing Aukrust's findings and the significant time lags involved in infrastructure investments.
Read full textThis section analyzes the structural changes in capital intensity within the Austrian industry during the 1950s and 1960s. It highlights the lack of reliable empirical data on capital stock and discusses the surprising divergence since 1962, where industrial production continued to rise while gross investments declined. The author examines potential explanations such as capacity utilization and shifts between capital-intensive and capital-extensive sectors, concluding that these factors do not fully explain the discrepancy and suggesting that changes in investment structure or scrap rates might be responsible.
Read full textMichael Kröll examines the long-term implications of continuous economic growth in industrial societies, referencing Schumpeter's predictions and Jöhr's extrapolations. He discusses the tension between investment-driven growth and consumption capacity, contrasting the 'future science' view of population explosion with Galbraith's concept of the 'Affluent Society.' The segment critiques the imbalance between private abundance and public sector neglect, exploring how marketing maintains demand in a state of goods surplus and the potential for a transition from traditional economic concepts to a more socially balanced distribution.
Read full textThis segment examines the critiques of the affluent society by Vance Packard, David Riesman, and Alexander Mahr. Packard highlights systematic waste and psychological obsolescence in the US economy, while Riesman distinguishes between inner-directed and other-directed consumption. Mahr applies these concepts to Europe, arguing that growing prosperity leads to denaturalization and urbanization, proposing a 'garden home' lifestyle and a new intellectual elite to restore social values.
Read full textThe author explores the limits of material needs from ethical, classical, and marginal utility perspectives. While Gossen's Law suggests individual needs are satiable, the segment distinguishes between natural needs (physical and cultural) and 'suggested' or 'imaginary' needs driven by social imitation and marketing. It concludes that while natural needs have objective limits in time and space, suggested needs are pushed outward by social pressure and advertising, though they eventually face diminishing returns.
Read full textThis section addresses the imbalance between private affluence and public poverty, echoing Galbraith's call for 'social balance'. The author argues that while private natural needs are limited, public needs (infrastructure, education, environmental protection) are nearly limitless. However, democratic societies face significant tax resistance, viewing public spending as 'wasted money'. The author suggests a reallocation of resources from artificial private consumption to essential public services and environmental preservation, guided by a natural elite.
Read full textLudwig Lachmann defends the Austrian School's unique methodological approach, characterizing it as a 'Geisteswissenschaft' (human science) focused on 'Verstehen' (understanding). He contrasts this with the 'positivist monism' of the Lausanne School (Walras/Pareto) and the substance-based theories of the Classicals (Ricardo). Lachmann argues that the Austrian focus on individual plans, subjective valuation, and the logic of choice provides a superior framework for interpreting economic reality compared to timeless equilibrium models.
Read full textJean Marchal analyzes the emergence and mechanics of the Eurocredit market (specifically Eurodollars). He defines Eurocurrencies as deposits held in banks outside their country of origin. The segment details the sources of these funds (central banks, commercial banks, and large corporations) and their uses (financing international trade and domestic transactions). Marchal highlights how this market increases international liquidity by activating idle cash and bypassing domestic interest rate regulations like Regulation Q.
Read full textThis section analyzes the consequences of the eurocurrency market, viewing it as an embryonic international monetary market. It discusses risks associated with credit chains, the movement of speculative 'hot money', and the potential for these markets to undermine national monetary policies and anti-inflationary efforts. The author argues for the coordination of national monetary policies and the establishment of common surveillance bodies within the European Economic Community.
Read full textJohannes Messner explores the ethical and political dimensions of private property, emphasizing its role in securing individual freedom and decentralizing economic power. He critiques Marxist and collective fund approaches to property, arguing instead for a wide distribution of productive property and the importance of individual responsibility. The essay links successful property policy to monetary stability, productivity-based wages, and workplace partnership (Leistungspartnerschaft) as alternatives to state-driven or collective ownership models.
Read full textOskar Morgenstern introduces the concept of 'compressibility' in organizations and economic systems, distinguishing between essential 'kernels' and inessential 'outer layers'. He explores how systems can be reduced to their core functions under stress (like war or resource scarcity) without total collapse. The text contrasts totally connected systems with redundant ones and discusses the role of technology and substitution in determining a system's resilience and breaking points.
Read full textMorgenstern explores the existence of economic constants, distinguishing them from physical constants by identifying them as bounds or constraints derived from physiological and technological facts. He argues that the economy has a rigid sub-structure or infra-structure determined by human biology and technological necessity, which limits the range of possible economic outcomes. Using a thought experiment involving population and car ownership, he demonstrates how a significant amount of economic structure can be inferred from minimal data, contrasting this structural approach with standard Walras-Pareto models and price-based input-output analysis.
Read full textFritz Neumark analyzes modern developments in fiscal policy, focusing on the reception of Keynesian theories and the evolution of tax policy. He categorizes four types of tax reductions: classical-liberal, inflation-adjustment, long-term growth-oriented, and short-term anti-cyclical (citing the 1964/65 US tax cuts as a primary example). The essay introduces the concept of the 'full-employment budget' as a tool for assessing whether fiscal policy is overly restrictive. Neumark also discusses the political challenges of 'timing' fiscal interventions, comparing the US 'standby authority' proposals with the British system of discretionary tax variations, and suggests that executive flexibility is essential for managing both inflationary and deflationary pressures.
Read full textOpening title and author attribution for a section regarding the forms and equilibrium functions of interest rates.
Read full textNußbaumer explores the diverse conceptualizations of interest in economic literature, contrasting Alexander Mahr's focus on real capital productivity with Kenneth Boulding's view of interest as a psychological growth rate of monetary capital. The section reviews four variants: real vs. money interest, and interest as a factor of production in stationary models vs. a reward for innovation in growth models. It further examines Keynes's liquidity preference theory and its macroeconomic implications, alongside Erich Schneider's formal model of equilibrium where interest links saving, investment, and employment. The author concludes that interest is a multifaceted phenomenon requiring different theoretical treatments depending on whether the context is microeconomic, macroeconomic, stationary, or dynamic.
Read full textThis section provides a microeconomic analysis of the relationship between interest rates and the marginal rate of return on capital within a neoclassical framework. Nußbaumer argues that while firms strive for an internal financial equilibrium where marginal returns across all capital forms (real and monetary) are equal, this identity with the market interest rate only occurs in a stationary end-state. He discusses how discrepancies between interest and return rates lead to capital gains or losses, influencing investment. Furthermore, he posits that a single interest rate is insufficient for general equilibrium; instead, a structure of interest rates across differentiated markets (real vs. money capital) is necessary to prevent inflation or contractionary stagnation.
Read full textA brief mathematical demonstration showing that in dynamic models, the interest rate (i) and the rate of return (e) diverge if their capitalization or reinvestment periods do not coincide. Using examples of monthly vs. annual compounding, the author illustrates that the gap between these rates increases with the length of the period discrepancy and the absolute height of the interest rate.
Read full textNußbaumer applies a modified Keynesian growth model to examine the relationship between the real rate of return and the lending rate. He demonstrates that in a growing economy, the rate at which households provide capital (deposit rate) and the rate at which firms invest (investment rate) are determined by macroeconomic equilibrium conditions, including the capital coefficient and growth targets. A key finding is that the interest spread of credit institutions is not merely a result of market power but a structural necessity of balanced economic growth, as the deposit rate and the real return rate rarely coincide in equilibrium.
Read full textGiuseppe Ugo Papi discusses the limitations of monetary policy in less developed countries (LDCs). Drawing on Sidney Caine's observations, he notes that LDCs often lack the sophisticated money markets required for traditional central bank techniques like open-market operations or interest rate manipulation. Because large portions of these economies rely on subsistence agriculture and exports are driven by international demand rather than domestic credit, monetary stimulus is often ineffective. The section highlights the 'disproportion' of production factors (surplus labor vs. lack of capital) as a primary barrier to growth that monetary policy alone cannot resolve.
Read full textPapi analyzes the structural challenges in trade relations between developing and industrialized nations. He identifies three main factors slowing LDC exports: the low income-elasticity of demand for agricultural products, technological progress leading to synthetic substitutes (e.g., synthetic rubber/fibers), and agricultural protectionism in developed countries (subsidies, quotas, and internal taxes). He clarifies a common misunderstanding: while temperate-zone products face high barriers, tropical products and minerals (the bulk of LDC exports) are less affected by traditional trade restrictions, meaning LDCs have less to gain from standard multilateral tariff negotiations like GATT.
Read full textThis section examines why exports from developing countries have slowed, citing high production costs due to a lack of modern technical processes and structural overproduction of tropical goods. It highlights the risks of limited diversification and the lack of international consultation among exporting nations, suggesting that regional integration and revised trade controls are necessary to address economic imbalances.
Read full textAn analysis of the total financial aid provided to developing countries, distinguishing between bilateral public sector contributions, private capital, and multilateral organizations. It includes a detailed statistical table (Table I) comparing aid supplied by DAC member countries versus aid actually received by less developed countries between 1960 and 1963, noting a significant increase in 1963.
Read full textThe author discusses the proposal for industrialized nations to unilaterally reduce trade obstacles and cede light industry production to developing nations. However, the text argues that such liberalization would only slightly increase exchanges, as many tropical products already face low tariffs, and the real barriers often involve complex internal fiscal regimes or protectionism for temperate-zone agricultural products.
Read full textA review of the 1964 Geneva Conference (UNCTAD), noting that trade barrier elimination is insufficient without addressing structural problems in developing nations. It also discusses the long-term necessity for advanced countries to transition away from light industries like textiles toward more specialized sectors, requiring government assistance for worker requalification and industry modernization.
Read full textThis section explores measures to mitigate violent fluctuations in export prices and earnings. It critiques the Development Insurance Fund (DIF) and the Organization of American States (OAS) project, arguing that these schemes often function as one-way gifts rather than true insurance and fail to address the underlying structural issues of the developing economies.
Read full textAn evaluation of national-level stabilization tools such as Marketing Boards and 'Caisses de stabilisation'. While Marketing Boards can protect producers and manage surpluses, the author warns against using them as revenue sources for the state. The 'Caisses' are noted for their dependence on external (French) government support and their potential to distort international markets.
Read full textThe author argues that the trade deficit is a structural 'food gap' caused by low productivity. Using 1970 projections, the text details nutritional deficits across Asia, Africa, and Latin America. It outlines a sequence for development: first improving human capital and infrastructure, then rationalizing agriculture, and finally transitioning excess labor into industrial and tertiary sectors.
Read full textThis section describes the World Food Program (WFP) established by the FAO to address urgent nutritional needs and support social development. It explains how food aid can prevent inflationary pressure and create local 'counterpart funds' for investment, while providing a table of approved projects by category and region as of July 1964.
Read full textThe final section of Papi's essay calls for an 'organic conception' of aid, where trade, stabilization, and structural problems are addressed together. It advocates for a single international organization (like FAO) to coordinate the multiple disconnected aid agencies to eliminate overlap and maximize efficiency through a pragmatic, data-driven approach to development planning.
Read full textTheodor Pütz examines the concept of the 'Common Good' (Gemeinwohl) in economic policy, referencing Alexander Mahr's work. He explores whether the term can have operational meaning in economic theory to distinguish between group interests and collective interests. Pütz critiques normative social-philosophical definitions and the limitations of modern welfare economics in defining a social welfare function.
Read full textPütz concludes his investigation into the common good by arguing that while objective definitions are difficult in pluralistic democracies, science can help by clarifying the consequences of specific policies. By making the effects of interest-group actions transparent, science can reduce the influence of special interests and support the government's role in pursuing a rational economic policy.
Read full textLeopold Rosenmayr provides an overview of the origins and development of sociology in Austria. He identifies diverse roots including cameralism, legal sociology (Renner, Ehrlich), and philosophical schools (Gomperz, Jerusalem). He notes the tension between speculative social theory (Spann) and the eventual emergence of empirical social research around 1930, particularly through the work of Paul Lazarsfeld.
Read full textThis section explores the precursors of sociology in Austria, beginning with the 17th-century Cameralist literature, specifically the works of Philipp Wilhelm von Hoernigk, who linked economic planning with social and educational structures. It discusses the 18th-century 'Topographers' who collected demographic and economic data for administrative purposes. The text highlights Ignaz Beidtel as an 'Austrian de Tocqueville' for his analysis of the Metternich era's social effects and the 'democratization of manners,' and examines Karl Postl (Charles Sealsfield), who critiqued the lack of an independent middle class and the state's educational failures from an Anglo-American perspective.
Read full textThis segment details the first international peak of Austrian sociology around 1900, led by figures like Ludwig Gumplowicz and Gustav Ratzenhofer, who followed the traditions of Comte and Spencer. It discusses Wilhelm Jerusalem’s introduction of the 'Sociology of Knowledge' (Soziologie des Erkennens) and his concept of 'social condensation' (soziale Verdichtung), which explores how individual experiences become objective realities through social interaction. The section also notes the reception of these ideas by Emile Durkheim and the founding of the Sociological Society in Vienna, while explaining why this academic tradition faltered due to the socio-economic upheavals following World War I.
Read full textThis section explores the diverse roots of sociology in Austria between 1900 and 1930. It traces the development from early social statistics (Sedlacek, Philippovich) and empirical religious studies (Swoboda) to the political social theories of Austro-Marxists like Karl Renner and Max Adler. It also details the emergence of a critical Catholic sociology led by Ernst Karl Winter and August M. Knoll, who challenged traditional scholastic views and analyzed the church as a conservative institution. Finally, it mentions the ideological criticism of Ernst Topitsch and his concept of 'empty formulas' (Leerformeln).
Read full textThis segment discusses the 'universalist' social system of Othmar Spann, a neo-Hegelian thinker who opposed individualistic and Marxist approaches. Spann emphasized spiritual community over individual action and proposed a hierarchical 'estate state' (Ständestaat). The section also briefly introduces Friedrich von Wieser's sociological work, which focused on the relationship between the masses and leadership, identifying power as the decisive factor in social action.
Read full textThis section chronicles the rise of modern empirical social research in Austria around 1930, centered on Paul F. Lazarsfeld. It highlights his innovations in youth research and the landmark 'Marienthal' study on the psychological and social effects of long-term unemployment. The text explains how these Austrian developments were later institutionalized in the United States (Columbia University) after Lazarsfeld and his colleagues were forced to emigrate, noting that empirical research was an Austrian innovation rather than a purely American invention.
Read full textKurt W. Rothschild examines the relationship between economic theory and the practice of forecasting. He argues that while the 'historical school' rejects general laws, modern theoretical models provide the necessary tools for prediction if they remain grounded in empirical reality. The section addresses the legitimacy of the theorist engaging in forecasting, the technical difficulties posed by complex variables, and the specific social science problem of 'self-fulfilling' or 'self-defeating' prophecies where the publication of a forecast alters the behavior of economic actors.
Read full textSlawtscho Sagoroff presents a statistical model to analyze and project the number of first-semester students at Austrian universities. He distinguishes between a 'natural component' (demographic trends like birth rates and survival rates) and a 'social component' (the increasing propensity to study). Using data from 1953–1963, he provides detailed tables and extrapolations up to 1980, concluding that the social drive toward higher education is a much stronger factor in enrollment growth than demographic shifts alone.
Read full textHeinz Schleicher introduces a discussion on marginal productivity theory as a theory of income distribution. He outlines the classical requirements—linear homogeneous production functions, perfect competition, and profit maximization—and notes that while the 'heroic' form of the theory is rarely accepted today as a general theory, various modifications exist which he intends to explore.
Read full textThis section examines the microeconomic foundations of distribution theory by contrasting classical production functions (perfect substitutability) with Leontief production functions (fixed coefficients). It explores how different entrepreneurial objectives, such as profit maximization versus sales maximization with a minimum profit constraint, affect factor demand and the resulting income distribution. The author argues that in modern industrial contexts, factor demand often remains rigid or price-independent within certain intervals, challenging the traditional marginal productivity postulates.
Read full textThe author modifies the marginal productivity theory to account for non-competitive market structures, including monopoly, monopsony, bilateral monopoly, and oligopoly. Using the Amoroso-Robinson relation, the text demonstrates how market power leads to a divergence between marginal products and factor prices. In cases of bilateral monopoly and oligopoly (illustrated by the Sweezy kinked demand curve), the theory fails to determine a unique price, resulting instead in equilibrium ranges where factor demand may be price-inelastic, necessitating the use of bargaining theories.
Read full textThis final section addresses two major critiques of marginal productivity theory: the existence of increasing returns to scale (due to technical progress or agglomeration) and the macroeconomic feedback of factor incomes on product demand. The author notes that increasing returns can lead to a 'profit-wage gap' and that the theory's implicit reliance on Say's Law incorrectly assumes automatic full employment. Consequently, the macroeconomic version of the theory is only valid for determining absolute distribution under specific full-employment conditions.
Read full textThis section examines the relationship between marginal productivity theory and the long-term constancy or increase of the wage share. It introduces Hicksian substitution elasticity as a measure for changes in relative factor shares, discussing empirical studies by Minhas and Ferguson that challenge the Cobb-Douglas assumption of unitary elasticity. The author analyzes how different types of technical progress (neutral, labor-saving, capital-saving) and increasing capital intensity influence distribution, concluding that a substitution elasticity greater than one explains the rising wage share in modern economies. The segment concludes with a critique of neoclassical growth models and their restrictive assumptions regarding competition and factor substitution.
Read full textErich Streissler presents a demand-structure theory of inflation, rooted in the Austrian School's focus on individual behavior. He argues that economic growth leads to a continuous decline in price demand elasticities due to the law of diminishing marginal utility (satiation) and a decrease in consumer information/rationality as goods become more complex. Using the Amoroso-Robinson relation, he demonstrates that profit-maximizing firms must raise prices as elasticities fall. The essay explores how inflation becomes self-reinforcing at low levels (the 'Backhendl-Effect') but remains relatively stable because consumers do not flee into real assets until a high inflation threshold is reached. He contrasts this structural view with traditional monetary, demand-pull, and cost-push theories, providing empirical correlations between growth and inflation rates.
Read full textOpening of a new section regarding the social philosophy of Eastern (socialist/communist) economies.
Read full textThis section examines the evolution of Soviet social philosophy from the era of Lenin to Stalin. It discusses the tension between Marxist utopian goals and the pragmatic necessities of the Soviet state, noting how economic and technical requirements eventually forced shifts in ideological positioning. The text highlights the transition from the early revolutionary ideals to the centralized control of the Stalinist era, where the party claimed a monopoly on scientific truth and historical necessity.
Read full textAn analysis of the shift from the immediate post-revolutionary 'War Communism' to the 'New Economic Policy' (NEP), which introduced partial market liberalization. It follows the subsequent rise of Stalin's doctrine of 'Socialism in one country' after Lenin's death, detailing the internal party struggles against 'Right' and 'Left' deviations (Mechanizists vs. Deborinists). The segment concludes with Trotsky's critique of Stalinist bureaucratization and the prediction of a totalizing state apparatus.
Read full textThis section covers Stalin's 1936 constitutional claims regarding the completion of socialist construction and his final theoretical work from 1952. It explores the paradoxical doctrine of intensifying class struggle within a supposedly harmonized society and the introduction of 'Soviet Patriotism' as a substitute for internationalism. It also details Stalin's vision for the transition to communism, involving the elimination of market relations and the merging of state and collective property.
Read full textThe text analyzes the post-Stalinist era, beginning with the Yugoslavian challenge to Soviet 'state socialism' and Tito's alternative model of worker self-management. It describes the 'Thaw' under Khrushchev, the 20th Party Congress's condemnation of the cult of personality, and the resulting ideological shifts toward 'peaceful coexistence' and 'socialist welfare.' The section highlights the internal conflict between the party leadership's utopian goals and the technocratic elite's desire for stability.
Read full textThis segment focuses on the 1961 Soviet Party Program and the deepening Sino-Soviet split. Khrushchev's program promised the achievement of full communism by 1980, emphasizing the creation of a 'New Socialist Man' and a 'welfare communism' intended to surpass the United States in production. The text discusses how the conflict with China's more aggressive doctrine forced the USSR to define its path more clearly, balancing between central planning and emerging calls for profitability and market orientation in satellite states like Poland.
Read full textThe beginning of a new article by Wilhelm Weber concerning the role of public expenditures within long-term economic policy frameworks.
Read full textWilhelm Weber explores the theoretical foundations of long-term economic policy, distinguishing it from short-term business cycle management. He defines public expenditures within the framework of growth policy and discusses the challenges of decision-making in multi-party democracies, where compromises often lead to 'second-best' welfare solutions. The section also addresses the potential incompatibility between maximal economic growth and equitable income distribution, suggesting that entrepreneurial behavior and fiscal instruments can bridge these goals.
Read full textThis segment analyzes the economic and political boundaries of public budgets. Weber argues that while the growth of the social product determines the upper limit of state spending, political and sociological factors—such as the influence of interest groups and political parties—drive the expansion of expenditures. He discusses the 'law of increasing state activity' and suggests that in a maturing welfare society, the state's share of the social product might eventually stabilize as certain functions return to the private sector.
Read full textWeber advocates for a shift from annual budgeting to long-term budget forecasting and conceptualization, particularly for growth-oriented policies. He critiques the applicability of Harrod-Domar growth models for practical policy, favoring macroeconomic production functions while acknowledging their neglect of the demand side. The section outlines the formal requirements for a Tinbergen-style decision model to optimize growth variables like labor volume, productivity, and capital.
Read full textThis section examines specific categories of public spending and their impact on growth, including transport, energy, education, and health. Weber discusses the importance of active labor market policies over global demand expansion in full-employment economies. He also links competition policy (antitrust) and debt management to growth, noting how the repayment of state debt to different creditors (central banks vs. private households) has varying inflationary and distributive effects.
Read full textThe author discusses the dual components of welfare: growth and distribution. He defines justice in a market economy through the 'performance principle' (Leistungsprinzip) supplemented by the 'social principle' for those outside the production process. The section emphasizes that growth policy is inherently linked to distribution. Finally, it addresses the role of local authorities (states and municipalities) in economic policy, highlighting the need for coordinated budget concepts across different levels of government.
Read full textWeber applies his theoretical framework to the Austrian context, analyzing specific expenditure categories: national security, agricultural subsidies (including the 'Green Plan'), housing finance, and social transfers. He notes that Austrian planning has historically been decentralized and short-term. He highlights the high proportion of social transfers in the Austrian budget and their impact on consumption and growth, suggesting that social security goals often take precedence over other economic objectives.
Read full textThe final section examines Austrian investment in infrastructure (rail, post, roads) and the management of the national debt. Weber discusses the 1965 budget forecast as a first step toward long-term planning, influenced by the prospect of Austria's association with the European Economic Community (EEC/EWG). He concludes by pointing out the lack of research and coordination in the financial equalization (Finanzausgleich) between the federal government, states, and municipalities.
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