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Macht oder ökonomisches Gesetz?
Böhm-Bawerks (1851-1914) wissenschaftliches Werk erstreckt sich über sein mehrbändiges opus magnum „Kapital und Kapitalzins“ aus dem Jahr 1884. Und obwohl es seinerzeit in der Wirtschaftswissenschaft Anklang fand und lebhaft diskutiert worden ist, so ist Böhm-Bawerk der Nachwelt hauptsächlich durch seine Marx-Kritik und durch den Aufsatz „Macht oder ökonomisches Gesetz“ aus dem Jahr 1914 bekannt geblieben.
Der Aufsatz geht der Frage nach, welchen Einfluss die politische bzw. gewerkschaftliche Macht entfaltet, um eine „bessere“ Verteilung der Güter in einer Volkswirtschaft zu erzwingen. Auch Politik und Gewerkschaften agieren im Rahmen ökonomischer Verhältnisse. Ihre Macht ist beschränkt durch den Grenznutzen, der sich aus den subjektiven Wertschätzungen speist. Sind ihre Eingriffe von Dauer, so besteht die begründete Gefahr, die Güterversorgung eher zu verschlechtern als zu verbessern.
Der Aufsatz geht der Frage nach, welchen Einfluss die politische bzw. gewerkschaftliche Macht entfaltet, um eine „bessere“ Verteilung der Güter in einer Volkswirtschaft zu erzwingen. Auch Politik und Gewerkschaften agieren im Rahmen ökonomischer Verhältnisse. Ihre Macht ist beschränkt durch den Grenznutzen, der sich aus den subjektiven Wertschätzungen speist. Sind ihre Eingriffe von Dauer, so besteht die begründete Gefahr, die Güterversorgung eher zu verschlechtern als zu verbessern.
87 pages, Kindle Edition
First published January 1, 1914
3 people are currently reading
124 people want to read
About the author
Eugen von Böhm-Bawerk
98 books77 followersAustrian economist who made important contributions to the development of the Austrian School of Economics. He served intermittently as the Austrian Minister of Finance between 1895 and 1904. He also wrote a series of extensive critiques of Marxism.
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Displaying 1 - 5 of 5 reviews
July 1, 2022
This short essay was the last written by Austrian legend Eugen Bohm-Bawerk. In it, he tried to explore the middle-ground between the "pure economic" laws of distribution (as discovered by the classics and the marginalists) and the "pure-circumstantial" laws of distribution (mostly defended by the so-called historical school and by every denier of the scientific basis of economics).
So Bohm-Bawerk tried to reconcile both positions, stating that Power surely has influence over the distribution of income among the various productive factors, but only insofar as it does not go against the economic laws of value and price. He then proceeds to analyse, as an example, the process of wage determination under the influence of unionized labor.
I would qualify this as an essay on the possible economic range of the bargaining process. The author does not intend to write the last words on the matter, trying instead to promote further discussion which, in his view, had been neglected by both sides of the contention. He calls for the attention of fellow economists to try to delve deeper into these waters. My impression is that, more than any other scholar in the Austrian School, it was his brother-in-law Friedrich von Wieser who engaged himself the most in this subject, through his works Social Economics and "The Law of Power".
This is not a life changing book, and it gets a bit too dense at times. I believe Ludwig von Mises provides a more developed and engaging theory of price formation, through his focus on purposeful behaviour (Human Action). Also, with respect to collective bargaining, I am expecting better things from W.H. Hutt's The Theory of Collective Bargaining, 1930-1975: A Critique of the Argument That Trade Unions Neutralise Labour's "Disadvantage" in Bargaining and Enhance Wage-Rates by the Use, or Threat, of Strikes.
However, this book alerted me for two issues in the bargaining process:
- It is true that the employer will only add any further worker if his marginal productivity exceeds his expected wage costs; however, after having hired the workers he needs, those same workers can threat a strike and, at least in the short run, it may be in the employer's "second best" interest to accept those terms.
This means that, for a short time, the workers can raise their income, even if at the cost of subsequent dismissal (the marginal unit to be considered is no longer the last worker but instead the whole squad, so the employer stands to lose less if at least he tries to keep all the workers, even if at a loss - otherwise all his capital may perish, which would leave him with an even bigger loss. Of course this is not sustainable, though.)
- Even though the last worker determines the marginal productivity of labor and, as such, its ultimate remuneration, a downward slopping demand curve implies that the previous workers would bring a profit which perhaps may exceed the marginal productivity (edit: cost?) of capital. In other words, there may be a surplus to be gained by the entrepreneur, which basically compensates him for his vision and willingness to bear the uncertainty of the future (action is the fourth economic dimension). So, theoretically, wages could be lifted above the marginal productivity of labor, and still not affect the remuneration of capital. But, then, what incentive is left to entice the entrepreneurs in the market?
So Bohm-Bawerk tried to reconcile both positions, stating that Power surely has influence over the distribution of income among the various productive factors, but only insofar as it does not go against the economic laws of value and price. He then proceeds to analyse, as an example, the process of wage determination under the influence of unionized labor.
I would qualify this as an essay on the possible economic range of the bargaining process. The author does not intend to write the last words on the matter, trying instead to promote further discussion which, in his view, had been neglected by both sides of the contention. He calls for the attention of fellow economists to try to delve deeper into these waters. My impression is that, more than any other scholar in the Austrian School, it was his brother-in-law Friedrich von Wieser who engaged himself the most in this subject, through his works Social Economics and "The Law of Power".
This is not a life changing book, and it gets a bit too dense at times. I believe Ludwig von Mises provides a more developed and engaging theory of price formation, through his focus on purposeful behaviour (Human Action). Also, with respect to collective bargaining, I am expecting better things from W.H. Hutt's The Theory of Collective Bargaining, 1930-1975: A Critique of the Argument That Trade Unions Neutralise Labour's "Disadvantage" in Bargaining and Enhance Wage-Rates by the Use, or Threat, of Strikes.
However, this book alerted me for two issues in the bargaining process:
- It is true that the employer will only add any further worker if his marginal productivity exceeds his expected wage costs; however, after having hired the workers he needs, those same workers can threat a strike and, at least in the short run, it may be in the employer's "second best" interest to accept those terms.
This means that, for a short time, the workers can raise their income, even if at the cost of subsequent dismissal (the marginal unit to be considered is no longer the last worker but instead the whole squad, so the employer stands to lose less if at least he tries to keep all the workers, even if at a loss - otherwise all his capital may perish, which would leave him with an even bigger loss. Of course this is not sustainable, though.)
- Even though the last worker determines the marginal productivity of labor and, as such, its ultimate remuneration, a downward slopping demand curve implies that the previous workers would bring a profit which perhaps may exceed the marginal productivity (edit: cost?) of capital. In other words, there may be a surplus to be gained by the entrepreneur, which basically compensates him for his vision and willingness to bear the uncertainty of the future (action is the fourth economic dimension). So, theoretically, wages could be lifted above the marginal productivity of labor, and still not affect the remuneration of capital. But, then, what incentive is left to entice the entrepreneurs in the market?
February 9, 2024
"Control or Economic Law" by Eugen von Böhm-Bawerk is a seminal work in the field of economics, offering profound insights into the nature of economic phenomena and the role of government intervention in market processes. Originally published in 1914, Böhm-Bawerk's treatise remains highly relevant today, providing valuable lessons for understanding contemporary economic challenges.
At the core of Böhm-Bawerk's argument is the tension between spontaneous market order and external control mechanisms imposed by government intervention. Drawing on the principles of classical economics, he eloquently articulates the idea that free markets operate according to natural economic laws, wherein prices, wages, and production levels are determined through voluntary exchange and competition. However, he also recognizes the potential for market imperfections and the need for certain regulatory measures to address externalities and ensure social welfare.
One of the key strengths of "Control or Economic Law" lies in Böhm-Bawerk's rigorous analytical framework, which combines theoretical rigor with empirical evidence to support his arguments. Through careful examination of historical case studies and economic data, he demonstrates the unintended consequences of government intervention, highlighting how well-intentioned policies can often lead to inefficiency, distortion, and unintended consequences.
Moreover, Böhm-Bawerk's writing style is both lucid and engaging, making complex economic concepts accessible to readers of all backgrounds. His ability to elucidate abstract theoretical ideas with concrete examples and vivid analogies enhances the readability and relevance of the book, ensuring that its insights resonate with contemporary audiences.
While some of Böhm-Bawerk's specific policy prescriptions may be debated in today's context, the fundamental principles espoused in "Control or Economic Law" remain as pertinent as ever. As debates over the proper role of government in the economy continue to evolve, Böhm-Bawerk's work serves as a timeless reminder of the importance of respecting economic laws and the limitations of central planning.
In conclusion, "Control or Economic Law" is a classic work that deserves a place on the bookshelf of any serious student of economics. With its rigorous analysis, compelling arguments, and timeless relevance, it continues to shape our understanding of market dynamics and inform contemporary policy debates.
At the core of Böhm-Bawerk's argument is the tension between spontaneous market order and external control mechanisms imposed by government intervention. Drawing on the principles of classical economics, he eloquently articulates the idea that free markets operate according to natural economic laws, wherein prices, wages, and production levels are determined through voluntary exchange and competition. However, he also recognizes the potential for market imperfections and the need for certain regulatory measures to address externalities and ensure social welfare.
One of the key strengths of "Control or Economic Law" lies in Böhm-Bawerk's rigorous analytical framework, which combines theoretical rigor with empirical evidence to support his arguments. Through careful examination of historical case studies and economic data, he demonstrates the unintended consequences of government intervention, highlighting how well-intentioned policies can often lead to inefficiency, distortion, and unintended consequences.
Moreover, Böhm-Bawerk's writing style is both lucid and engaging, making complex economic concepts accessible to readers of all backgrounds. His ability to elucidate abstract theoretical ideas with concrete examples and vivid analogies enhances the readability and relevance of the book, ensuring that its insights resonate with contemporary audiences.
While some of Böhm-Bawerk's specific policy prescriptions may be debated in today's context, the fundamental principles espoused in "Control or Economic Law" remain as pertinent as ever. As debates over the proper role of government in the economy continue to evolve, Böhm-Bawerk's work serves as a timeless reminder of the importance of respecting economic laws and the limitations of central planning.
In conclusion, "Control or Economic Law" is a classic work that deserves a place on the bookshelf of any serious student of economics. With its rigorous analysis, compelling arguments, and timeless relevance, it continues to shape our understanding of market dynamics and inform contemporary policy debates.
November 3, 2020
Eugen von Böhm-Bawerk makes fine contributions to price and value theory which would influence Ludwig von Mises and the rest of the Austrian school of economics. While Böhm-Bawerk's contributions in this and other texts are quite notable, they are far less readable. Sadly, I more enjoy reading about Böhm-Bawerk than I enjoy actually reading him.
October 5, 2017
What a fine work of literature this book really is.
It needs to be spoken about more.
It needs to be spoken about more.
April 23, 2014
Control or Economic Law separates the peculiar relationship between economics and politics where it addresses major implications of interwoven composition, for complete integration will inevitably result in total control of society. Bohm-Bawerk postulates that social powers can influence the prices of goods and services via by capitalists, trade unions and governments through coercion rather than free market competition. Bohm-Bawerk focuses the discussion on the power of trade unions, and the influence they have on the labor market and the determination of wages where it directly affects entrepreneurship and the processes of production. This book really only has economic historical value. Overall, it is short and concise but blunt yet vague where it is merely only a discussion of some economic topics with no length nor conclusive analysis.
Displaying 1 - 5 of 5 reviews