Karl Marx and the Close of His System: A Criticism of the Marxist Theory of Value and the Price of Production

by Eugen von Böhm-Bawerk

Eugen Von Böhm-Bawerk, economist of the Austrian school, wrote this incisive critique of Marxist economics amid rising public support for socialism, communism and state-controlled markets in Europe. Published in 1896, this work criticizes Marxist theory from two firstly, that the notion of value which Marx puts forward contradict his own ideas. The author asserts that the link between the price of producing goods and the value produced by labor are not consistently dealt with in Marx’s works. This inconsistency in assigning value to economic production leads onto the second Supply and demand is a theory whereby an equilibrium between goods supplied to a market and goods demanded by consumers in said market is established, with changes in the quantity or price of a good being in reaction to demand. Böhm-Bawerk discusses how Marx underestimates this law, and how his lack of appreciation for an economy which flexibly meets the shifting demands of consumers undermines his notions of price and value. From the perspective of a free market capitalist, Marxist theory is inadequate and insufficient as a system of economics.

78 pages, Paperback

Published January 1, 1898

About the author

Austrian 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.

Reviews

[Mathieu Totev · Rating 3 out of 5]

Marx’s quotes were more interesting than the refutations, but that’s probably because it’s easy to refute anything Marx said

[Ben · Rating 5 out of 5]

Quick and to the point. Despite its age, the argument remains valid, and also we have an entire history of the 20th century to back his arguments. Written during a craze of Marxism beginning to sweep through Europe and the US, Bohm breaks down his disagreements with Marx and his book "Capital," with a contemporaries perspective, unbiased by the history and instead is a technical take down of a peer. If you need something to start and finish on an airplane, look no further.