by Bayer
[Front Matter and Preface]: The front matter and preface introduce Hans Bayer's work on the structural changes in the Austrian economy post-WWI. Bayer argues that while theoretical economics has long sought to understand economic dynamics, there is a lack of empirical study regarding Austria's specific structural shifts. He outlines the book's two-part structure: a theoretical analysis of economic structure and an empirical investigation into shifts within social economic entities, organizational power relations, and the proportions of various economic sectors. [Table of Contents]: A detailed table of contents outlining the theoretical framework (Part I) and the empirical analysis of the Austrian economy (Part II). It lists specific industries such as paper, automobile, electricity, iron, textiles, and sugar, as well as sections on trade, banking, and the labor market. [Part I, Chapter 1: The Structure of the National Economy]: Bayer defines the 'structure' of a national economy as a complex entity (Gebilde) composed of qualitatively diverse parts. He distinguishes between the structure of sub-entities and the total entity, emphasizing the importance of proportions and relationships. He critiques the organic school and Husserl's phenomenology, opting for an empirical approach that views the national economy as a historical result of mutual adjustment and division of labor between households and enterprises. He introduces the fundamental social-economic units: the household (driven by psychic-economic goals) and the enterprise (driven by technical-economic profit goals). [Part I, Chapter 2: Structural Changes in the National Economy]: This section defines structural changes as permanent shifts in the proportions and relationships between economic entities. Bayer analyzes how income shifts and psychological factors (imitation and distinction) drive changes in household demand. He explores changes within enterprises, including organizational forms, technical innovations, and product types. Using a multi-stage model of producers and consumers, he demonstrates how technical progress tends toward an equilibrium unless it fundamentally transforms a luxury good into a mass-market item. Finally, he discusses the rise of 'power' (Macht) in the economy through cartels, trusts, and organized labor, which can override traditional economic laws. [Qualitative and Quantitative Structural Changes in Proportions]: Bayer distinguishes between qualitative and quantitative structural changes in the economy. Using the post-war Austrian economy as a case study, he argues that while some shifts (like export volume) are measurable, others—such as the transformation of a fragmented territory into a unified national economy—are qualitative. He draws an epistemological parallel to physics, where qualities like color are reduced to quantitative frequencies, suggesting economic qualitative shifts can often be traced back to underlying proportional changes in production and demand. [Distinguishing Structural Change from Stationary and Cyclical Movements]: This section delineates structural changes from other economic movements. It contrasts structural shifts with the 'stationary economy' (where individual goods change but the total flow remains constant) and 'business cycles' (Konjunktur). Bayer examines whether duration or periodicity can serve as a criterion for structural change, ultimately arguing that structural changes involving production proportions can only be distinguished from cyclical fluctuations through the lens of specific economic theories, such as the Currency Theory's focus on interest rate divergence. [Interrelationships Between Types of Structural Change]: Bayer synthesizes the three identified types of structural changes: changes in simple social-economic entities, changes in relationships, and changes in proportions. He poses critical questions regarding the causal hierarchy between these types, asking whether organizational shifts (like cartels or unions) drive proportional changes in the economy or if the reverse is true. [Causation and Factors of Economic Structural Changes]: The author explores the causation of economic structural changes, identifying human action as the primary dynamic force. He distinguishes between human action as a condition and as a cause, particularly in organizational and power-based shifts. The text reviews various classification systems for developmental factors from the Historical School (Roscher, Schmoller) and modern theorists (Vogel, Harmst), ultimately favoring Harmst's distinction between destructive factors (e.g., war losses, competition) and constructive factors (e.g., new resources, organizational forms), while noting that destructive factors can eventually trigger constructive developments. [Interdependence of Organizational and Proportional Changes]: This section analyzes the reciprocal relationship between organizational changes and proportional shifts in production. Using an inductive method, the author examines how cartels can conserve existing proportions or be triggered by overdevelopment, how agricultural cooperatives drive shifts in production types, and how vertical concentration (e.g., steel trusts) aligns production stages. It also discusses the role of labor unions and employer associations in labor market proportions and concludes that changes in individual economic units (households and firms) are often the leading drivers of broader proportional shifts in the economy. [Structural Changes and Economic Laws: Static vs. Dynamic Theory]: The third chapter investigates whether structural changes render traditional economic laws (based on stationarity and free competition) invalid. The author contrasts the static methods of the Lausanne School (Walras, Pareto) with the Austrian School. He argues that while the Lausanne School's mathematical equilibrium models and variation methods struggle to capture the 'movement' of structural change, the Austrian School's approach to statics is broader, incorporating certain types of economic movement and change within its framework of marginal utility and economic calculation. [The Austrian School's Concept of Statics and Marginal Utility]: The author defends the Austrian School's version of statics, arguing it is not merely a 'luxury' but essential for understanding economic policy. He introduces critical distinctions between the 'economic timeframe' (Wirtschaftszeitraum), 'accounting period' (Rechnungsperiode), and 'utility segment' (Bedürfnisabschnitt). He argues that marginal utility calculations possess a degree of stability due to the 'multi-membered' nature of needs in marginal layers—specifically through substitution possibilities—which allows economic laws to remain valid even during gradual structural transitions. [Structural Changes of Power and Price Formation]: This section examines how shifts in economic power (monopolies and cartels) affect the validity of price laws. Defining power with Max Weber as the ability to assert one's will, the author argues that monopoly prices are not a violation of economic laws but a special case of the general price law. Even a monopolist is constrained by the marginal rows of demand and the 'rent of the stronger position.' The transition from free competition to organized power shifts the ratio of power between producers and consumers but maintains the underlying logic of price formation between marginal pairs. [Wage Formation and the Limits of Labor Union Power]: The author applies marginal productivity theory to wage formation, arguing that wages are determined by the 'productive marginal contribution.' He analyzes the limits of power for both employer associations (who cannot push wages below the existential minimum indefinitely without destroying purchasing power) and labor unions. He concludes that while unions can temporarily raise wages above the marginal product, this leads to labor displacement or price increases that eventually force a realignment with economic laws. Thus, structural changes in power do not override fundamental economic principles. [Structural Changes in Austrian Economic Units: Firms and State Enterprises]: The second part of the work begins by analyzing concrete structural changes in post-war Austria. The author discusses the rise and fall of 'socialized' (gemeinwirtschaftliche) enterprises and the commercialization of state entities like the Federal Railways (Bundesbahnen), Forests (Bundesforste), and Salt Mines (Salinen). He notes a shift toward commercial accounting (Doppik) and 'rationalization' in industry, which has led to decreased labor costs per unit but increased individual wages for those remaining employed, while contributing to structural unemployment. [Shifts in Austrian Household Consumption and Income Groups]: This section details the profound impoverishment of the Austrian population following the war and inflation. The author categorizes the population into four groups based on consumption needs. He highlights the destruction of capital that decimated the middle class (Group B), pushing them into the lower consumption group (Group A). While agricultural income (Group D) remained relatively stable, the urban middle class and pensioners lost 3.5 billion gold crowns in savings. The analysis shows a general leveling down of consumption, with a growing segment of the population restricted to meeting only basic physiological needs. [Structural Changes in Economic Organization and Market Integration]: The author introduces the second chapter on organizational structural changes, focusing on the transition from the large domestic market of the Austro-Hungarian Monarchy to the small, export-dependent market of the new Austrian Republic. This necessitated a reorganization of production and trade to integrate into the world economy and defend the domestic market against foreign competition through tighter organizational structures. [International Industrial Agreements and Cartels with Successor States]: This section examines the integration of the Austrian economy into the global market through agreements with foreign enterprises, particularly in Germany and the successor states of the Austro-Hungarian Empire. It details specific cartel agreements in the iron industry between Austrian and Czech works (Alpine and the Prague sales office), as well as arrangements in the glass, paper, and rubber industries, focusing on production quotas, price fixing, and market division. [Cartel Agreements between Austria and Germany]: The author discusses the relatively limited but significant cartel agreements between Austria and Germany. Key examples include regional agreements in the heavy current electrical industry (A.E.G., Siemens-Schuckert, Brown Boveri) and the chemical industry's 1927 agreement with I.G. Farben-Industrie, which secured the domestic market for Austrian production while quota-limiting foreign sales. [International Cartels and the Continental Steel Community]: This segment details Austria's participation in large-scale international cartels extending beyond neighboring states. It highlights the enamelware export cartel and the significant 1927 entry of Austrian, Czech, and Hungarian ironworks into the International Steel Community (Rohstahlgemeinschaft). It also covers international agreements in light bulbs, wire, rail, magnesite, glue, and jute, explaining the mechanisms of quotas, compensatory payments, and price conventions. [Foreign Acquisitions and Domestic Industrial Consolidation]: The author lists major Austrian enterprises acquired by foreign interests, such as the match industry by the Swedish-American trust and the oil industry by Shell and Vacuum Oil. The section concludes by transitioning to the second major trend: the internal consolidation and reorganization of Austrian industry, which involves either the expansion or contraction of production processes. [Horizontal and Vertical Industrial Integration in Post-War Austria]: This section details the processes of industrial concentration in post-war Austria, distinguishing between horizontal and vertical integration. It provides specific examples of mergers and acquisitions in the chemical (Schicht-Konzern), rubber (Semperit), brewing, and textile industries. It also discusses domestic cartel agreements in the iron, steel, and paper sectors, highlighting the 'Avi-agreement' regarding export bonuses and domestic supply obligations. [Industrial Regression and Production Restrictions]: Bayer examines industrial mergers that resulted in a 'regression process' or reduction in production capacity to correct post-war hypertrophy. Key examples include the consolidation of metal semi-finished product factories, the merger of locomotive works (Steg and Warchalowsky-Eißler), specialization agreements in the automobile industry (Puch, Daimler, Fiat), and the centralization of the pharmaceutical trade into the Chemosan Union. [Banking Concentration and Post-War Crisis]: The text analyzes the massive concentration process in the Austrian banking sector following the 1924 crisis. It describes the shift from post-war decentralization to consolidation, specifically detailing the liquidation of the Anglo-Austrian Bank's domestic business into the Creditanstalt and the major mergers led by the Bodenkreditanstalt with the Union Bank and Allgemeine Verkehrsbank. [Agricultural and Consumer Cooperatives]: This section explores the structural changes in Austrian cooperatives, noting a significant shift in agriculture toward dairy and livestock breeding. It also tracks the evolution of consumer cooperatives, highlighting the collapse of middle-class associations and the growth of labor-affiliated organizations like the Göc and the establishment of the Arbeiter-Bank (Labor Bank) to finance these movements. [Labor Market Organization and Trade Union Evolution]: Bayer discusses the fundamental reorganization of the labor supply, characterized by the expansion of trade unions to include public and private employees and a shift from craft-based to industrial unions. The text provides detailed membership statistics and discusses the competition between 'free' (socialist), Christian, and German nationalist trade unions. [Social Legislation and Labor Mediation]: This section reviews post-war social legislation in Austria, including the legal framework for collective bargaining, the introduction of the eight-hour day, and mandatory rest periods. It also examines the transition from private or union-led labor exchanges to public, parity-based mediation systems under the Industrial District Commissions, and mentions the creation of Works Councils and Chambers of Labor. [Methodology of Economic Proportions: Statics vs. Dynamics]: The author introduces the third chapter by discussing the methodology for analyzing shifts in economic proportions. He distinguishes between structural changes and cyclical fluctuations, and explains the necessity of using both static (comparing two points in time) and dynamic (analyzing the process of movement) methods to understand how the Austrian economy is adjusting to its new post-war borders. [Quantitative Änderungen der Proportionen: Papier-, Automobil- und Elektroindustrie]: This segment analyzes the quantitative shifts in Austrian industrial production following World War I, focusing on sectors that experienced growth. It details the expansion of the paper industry through rationalization rather than new factories, the significant growth of the automobile and motorcycle sectors (both in domestic production and imports), and the rise of the electrical industry driven by electrification projects and new corporate foundations like A.E.G. Union. [Entwicklung der Leder-, Magnesit- und Eisenindustrie]: An examination of the leather, magnesite, and iron industries, highlighting discrepancies between capacity and actual utilization. While the leather and shoe industries saw capacity increases of over 100%, they struggle with underutilization; conversely, the magnesite industry maintains high utilization (over 90%) due to the unique quality of Austrian raw materials. The iron industry shows mixed results, with foundry pig iron production tripling while other metrics remain below pre-war levels. [Industrieller Rückgang und Kapazitätsüberhang in Holz, Salz und Glas]: This section details industries suffering from production declines and massive overcapacity. The sawmill industry is hindered by raw timber exports, salt production has plummeted due to the loss of former Austro-Hungarian markets, and the brick and cement industries operate far below their potential. The glass industry is presented as a 'classic example' where low capacity utilization triggered intensive rationalization and technological investment (e.g., Owens machines) to survive. [Qualitative Änderungen der Proportionen (Übergang)]: Transition heading marking the shift from quantitative analysis of production volume to qualitative changes in the structure of the national economy. [Qualitative Structural Changes in the Machine Industry]: This section analyzes the post-war transformation of the Austrian machine industry from a domestic-oriented sector to an export-driven one. It details the decline in production capacity and workforce, specifically highlighting the shift from steam engines to electric locomotives, pumps, and specialized machinery for paper and textile production. [Structural Shifts in the Textile Industry]: A detailed examination of the qualitative and quantitative shifts in the Austrian textile industry following the dissolution of the Monarchy. It highlights the severe imbalance between spinning and weaving capacities across the succession states and discusses the growth of the artificial silk and knitwear sectors despite a general decline in traditional textile finishing. [Chemical and Sugar Industries: Adaptation to New Borders]: This segment describes how the chemical and sugar industries adapted to the loss of the Monarchy's internal market. The chemical industry expanded into heavy chemicals and pharmaceuticals to fill gaps, while the sugar industry successfully increased domestic beet cultivation and processing capacity to cover 75% of national demand by 1927. [The Rise of Coal Mining and Rationalization]: Analysis of the Austrian coal mining sector's transition from a marginal role in the Monarchy to a leading national industry. The text provides statistical data on production increases and details the extensive rationalization and electrification of mining operations to reduce dependence on foreign imports. [Hydropower Development and Railway Electrification]: This section documents the massive expansion of Austrian hydropower and the systematic electrification of the federal railways (Bundesbahnen). It provides regional breakdowns of power plant construction and lists specific railway lines converted to electric traction to mitigate the lack of domestic coal. [Agricultural Intensification and the Shift to Dairy]: A comprehensive review of Austrian agriculture, showing a shift from meat production to intensive dairy farming. It provides detailed tables on crop yields (wheat, rye, potatoes, sugar beets) and livestock numbers, noting that while acreage has slightly decreased since 1913, yields per hectare have significantly improved through intensification. [Economic Dynamics: Paper and Automobile Industries]: This section transitions to the 'Dynamics' of the economy, focusing on the paper and automobile industries as success stories of post-war recovery. It details how the paper industry overcame raw material shortages to exceed pre-war production and how the automobile industry adopted mass production (Fließarbeit) to compete internationally. [Industrial Trends: Iron, Cement, and Furniture]: The final segment of this chunk evaluates the recovery of the iron and cement industries through rationalization, while contrasting them with the stagnation in the brick and furniture industries. It explains how reduced domestic purchasing power and lost export markets have led to a permanent state of under-utilization in certain sectors. [Qualitative Structural Changes and the Impact of Customs Policy]: Bayer introduces the qualitative structural changes in the Austrian economy, emphasizing their close relationship with post-war customs policies. He explains how the protectionist measures of successor states forced Austria to develop new domestic production branches for semi-finished and finished goods, leading to a shift from quantitative to qualitative economic integration. [Structural Shifts in the Machine Industry]: This section analyzes the machine industry's adaptation to new technical demands, such as electrification and the needs of the domestic textile and coal industries. Bayer discusses the durability of these shifts, the impact of high foreign tariffs on Austrian exports, and provides detailed trade statistics from 1920 to 1927 showing a gradual recovery despite protectionist hurdles. [The Textile Industry: Cotton, Wool, and Flax]: A detailed examination of the textile sector, focusing on the increasing integration between spinning and weaving. Bayer argues that the forced shift toward domestic complementarity—caused by high tariffs in successor states—represents a qualitative structural change. He provides extensive tables on production, spindle counts, and trade for cotton, wool (worsted and carded), flax, and jute. [The Sugar Industry and Energy Sector: Coal and Water Power]: Bayer details the successful expansion of the Austrian sugar industry and the strategic development of domestic energy sources. He analyzes the coal industry's rationalization and the limits of replacing coal with water power. The section argues that these developments strengthen Austria's economic unity by reducing dependence on imports from the successor states. [Agricultural Development: Crop Production and Dairy Farming]: This section covers the recovery and modernization of Austrian agriculture. Bayer discusses land improvement (melioration) and consolidation (Kommassierung) as essential for increasing yields. He highlights the massive shift toward dairy farming and the growth of agricultural cooperatives as a qualitative structural change that aligns domestic production with consumption needs. [Trade and the Banking System]: Bayer analyzes the transformation of Austrian trade and banking. He notes the shift of exports from successor states to 'old' foreign markets and the internationalization of Austrian bank capital. The section details the impact of inflation and stabilization on bank balances, the decline of mortgage credit, and the evolving role of savings banks and cooperatives. [Conclusion and Bibliography]: The final results of the study emphasize that Austria's structural changes are moving toward a more integrated and unified national economy, though this is occurring against a backdrop of general impoverishment. A comprehensive bibliography of sources and literature regarding the Austrian economy, social policy, and specific industrial sectors is provided.
The front matter and preface introduce Hans Bayer's work on the structural changes in the Austrian economy post-WWI. Bayer argues that while theoretical economics has long sought to understand economic dynamics, there is a lack of empirical study regarding Austria's specific structural shifts. He outlines the book's two-part structure: a theoretical analysis of economic structure and an empirical investigation into shifts within social economic entities, organizational power relations, and the proportions of various economic sectors.
Read full textA detailed table of contents outlining the theoretical framework (Part I) and the empirical analysis of the Austrian economy (Part II). It lists specific industries such as paper, automobile, electricity, iron, textiles, and sugar, as well as sections on trade, banking, and the labor market.
Read full textBayer defines the 'structure' of a national economy as a complex entity (Gebilde) composed of qualitatively diverse parts. He distinguishes between the structure of sub-entities and the total entity, emphasizing the importance of proportions and relationships. He critiques the organic school and Husserl's phenomenology, opting for an empirical approach that views the national economy as a historical result of mutual adjustment and division of labor between households and enterprises. He introduces the fundamental social-economic units: the household (driven by psychic-economic goals) and the enterprise (driven by technical-economic profit goals).
Read full textThis section defines structural changes as permanent shifts in the proportions and relationships between economic entities. Bayer analyzes how income shifts and psychological factors (imitation and distinction) drive changes in household demand. He explores changes within enterprises, including organizational forms, technical innovations, and product types. Using a multi-stage model of producers and consumers, he demonstrates how technical progress tends toward an equilibrium unless it fundamentally transforms a luxury good into a mass-market item. Finally, he discusses the rise of 'power' (Macht) in the economy through cartels, trusts, and organized labor, which can override traditional economic laws.
Read full textBayer distinguishes between qualitative and quantitative structural changes in the economy. Using the post-war Austrian economy as a case study, he argues that while some shifts (like export volume) are measurable, others—such as the transformation of a fragmented territory into a unified national economy—are qualitative. He draws an epistemological parallel to physics, where qualities like color are reduced to quantitative frequencies, suggesting economic qualitative shifts can often be traced back to underlying proportional changes in production and demand.
Read full textThis section delineates structural changes from other economic movements. It contrasts structural shifts with the 'stationary economy' (where individual goods change but the total flow remains constant) and 'business cycles' (Konjunktur). Bayer examines whether duration or periodicity can serve as a criterion for structural change, ultimately arguing that structural changes involving production proportions can only be distinguished from cyclical fluctuations through the lens of specific economic theories, such as the Currency Theory's focus on interest rate divergence.
Read full textBayer synthesizes the three identified types of structural changes: changes in simple social-economic entities, changes in relationships, and changes in proportions. He poses critical questions regarding the causal hierarchy between these types, asking whether organizational shifts (like cartels or unions) drive proportional changes in the economy or if the reverse is true.
Read full textThe author explores the causation of economic structural changes, identifying human action as the primary dynamic force. He distinguishes between human action as a condition and as a cause, particularly in organizational and power-based shifts. The text reviews various classification systems for developmental factors from the Historical School (Roscher, Schmoller) and modern theorists (Vogel, Harmst), ultimately favoring Harmst's distinction between destructive factors (e.g., war losses, competition) and constructive factors (e.g., new resources, organizational forms), while noting that destructive factors can eventually trigger constructive developments.
Read full textThis section analyzes the reciprocal relationship between organizational changes and proportional shifts in production. Using an inductive method, the author examines how cartels can conserve existing proportions or be triggered by overdevelopment, how agricultural cooperatives drive shifts in production types, and how vertical concentration (e.g., steel trusts) aligns production stages. It also discusses the role of labor unions and employer associations in labor market proportions and concludes that changes in individual economic units (households and firms) are often the leading drivers of broader proportional shifts in the economy.
Read full textThe third chapter investigates whether structural changes render traditional economic laws (based on stationarity and free competition) invalid. The author contrasts the static methods of the Lausanne School (Walras, Pareto) with the Austrian School. He argues that while the Lausanne School's mathematical equilibrium models and variation methods struggle to capture the 'movement' of structural change, the Austrian School's approach to statics is broader, incorporating certain types of economic movement and change within its framework of marginal utility and economic calculation.
Read full textThe author defends the Austrian School's version of statics, arguing it is not merely a 'luxury' but essential for understanding economic policy. He introduces critical distinctions between the 'economic timeframe' (Wirtschaftszeitraum), 'accounting period' (Rechnungsperiode), and 'utility segment' (Bedürfnisabschnitt). He argues that marginal utility calculations possess a degree of stability due to the 'multi-membered' nature of needs in marginal layers—specifically through substitution possibilities—which allows economic laws to remain valid even during gradual structural transitions.
Read full textThis section examines how shifts in economic power (monopolies and cartels) affect the validity of price laws. Defining power with Max Weber as the ability to assert one's will, the author argues that monopoly prices are not a violation of economic laws but a special case of the general price law. Even a monopolist is constrained by the marginal rows of demand and the 'rent of the stronger position.' The transition from free competition to organized power shifts the ratio of power between producers and consumers but maintains the underlying logic of price formation between marginal pairs.
Read full textThe author applies marginal productivity theory to wage formation, arguing that wages are determined by the 'productive marginal contribution.' He analyzes the limits of power for both employer associations (who cannot push wages below the existential minimum indefinitely without destroying purchasing power) and labor unions. He concludes that while unions can temporarily raise wages above the marginal product, this leads to labor displacement or price increases that eventually force a realignment with economic laws. Thus, structural changes in power do not override fundamental economic principles.
Read full textThe second part of the work begins by analyzing concrete structural changes in post-war Austria. The author discusses the rise and fall of 'socialized' (gemeinwirtschaftliche) enterprises and the commercialization of state entities like the Federal Railways (Bundesbahnen), Forests (Bundesforste), and Salt Mines (Salinen). He notes a shift toward commercial accounting (Doppik) and 'rationalization' in industry, which has led to decreased labor costs per unit but increased individual wages for those remaining employed, while contributing to structural unemployment.
Read full textThis section details the profound impoverishment of the Austrian population following the war and inflation. The author categorizes the population into four groups based on consumption needs. He highlights the destruction of capital that decimated the middle class (Group B), pushing them into the lower consumption group (Group A). While agricultural income (Group D) remained relatively stable, the urban middle class and pensioners lost 3.5 billion gold crowns in savings. The analysis shows a general leveling down of consumption, with a growing segment of the population restricted to meeting only basic physiological needs.
Read full textThe author introduces the second chapter on organizational structural changes, focusing on the transition from the large domestic market of the Austro-Hungarian Monarchy to the small, export-dependent market of the new Austrian Republic. This necessitated a reorganization of production and trade to integrate into the world economy and defend the domestic market against foreign competition through tighter organizational structures.
Read full textThis section examines the integration of the Austrian economy into the global market through agreements with foreign enterprises, particularly in Germany and the successor states of the Austro-Hungarian Empire. It details specific cartel agreements in the iron industry between Austrian and Czech works (Alpine and the Prague sales office), as well as arrangements in the glass, paper, and rubber industries, focusing on production quotas, price fixing, and market division.
Read full textThe author discusses the relatively limited but significant cartel agreements between Austria and Germany. Key examples include regional agreements in the heavy current electrical industry (A.E.G., Siemens-Schuckert, Brown Boveri) and the chemical industry's 1927 agreement with I.G. Farben-Industrie, which secured the domestic market for Austrian production while quota-limiting foreign sales.
Read full textThis segment details Austria's participation in large-scale international cartels extending beyond neighboring states. It highlights the enamelware export cartel and the significant 1927 entry of Austrian, Czech, and Hungarian ironworks into the International Steel Community (Rohstahlgemeinschaft). It also covers international agreements in light bulbs, wire, rail, magnesite, glue, and jute, explaining the mechanisms of quotas, compensatory payments, and price conventions.
Read full textThe author lists major Austrian enterprises acquired by foreign interests, such as the match industry by the Swedish-American trust and the oil industry by Shell and Vacuum Oil. The section concludes by transitioning to the second major trend: the internal consolidation and reorganization of Austrian industry, which involves either the expansion or contraction of production processes.
Read full textThis section details the processes of industrial concentration in post-war Austria, distinguishing between horizontal and vertical integration. It provides specific examples of mergers and acquisitions in the chemical (Schicht-Konzern), rubber (Semperit), brewing, and textile industries. It also discusses domestic cartel agreements in the iron, steel, and paper sectors, highlighting the 'Avi-agreement' regarding export bonuses and domestic supply obligations.
Read full textBayer examines industrial mergers that resulted in a 'regression process' or reduction in production capacity to correct post-war hypertrophy. Key examples include the consolidation of metal semi-finished product factories, the merger of locomotive works (Steg and Warchalowsky-Eißler), specialization agreements in the automobile industry (Puch, Daimler, Fiat), and the centralization of the pharmaceutical trade into the Chemosan Union.
Read full textThe text analyzes the massive concentration process in the Austrian banking sector following the 1924 crisis. It describes the shift from post-war decentralization to consolidation, specifically detailing the liquidation of the Anglo-Austrian Bank's domestic business into the Creditanstalt and the major mergers led by the Bodenkreditanstalt with the Union Bank and Allgemeine Verkehrsbank.
Read full textThis section explores the structural changes in Austrian cooperatives, noting a significant shift in agriculture toward dairy and livestock breeding. It also tracks the evolution of consumer cooperatives, highlighting the collapse of middle-class associations and the growth of labor-affiliated organizations like the Göc and the establishment of the Arbeiter-Bank (Labor Bank) to finance these movements.
Read full textBayer discusses the fundamental reorganization of the labor supply, characterized by the expansion of trade unions to include public and private employees and a shift from craft-based to industrial unions. The text provides detailed membership statistics and discusses the competition between 'free' (socialist), Christian, and German nationalist trade unions.
Read full textThis section reviews post-war social legislation in Austria, including the legal framework for collective bargaining, the introduction of the eight-hour day, and mandatory rest periods. It also examines the transition from private or union-led labor exchanges to public, parity-based mediation systems under the Industrial District Commissions, and mentions the creation of Works Councils and Chambers of Labor.
Read full textThe author introduces the third chapter by discussing the methodology for analyzing shifts in economic proportions. He distinguishes between structural changes and cyclical fluctuations, and explains the necessity of using both static (comparing two points in time) and dynamic (analyzing the process of movement) methods to understand how the Austrian economy is adjusting to its new post-war borders.
Read full textThis segment analyzes the quantitative shifts in Austrian industrial production following World War I, focusing on sectors that experienced growth. It details the expansion of the paper industry through rationalization rather than new factories, the significant growth of the automobile and motorcycle sectors (both in domestic production and imports), and the rise of the electrical industry driven by electrification projects and new corporate foundations like A.E.G. Union.
Read full textAn examination of the leather, magnesite, and iron industries, highlighting discrepancies between capacity and actual utilization. While the leather and shoe industries saw capacity increases of over 100%, they struggle with underutilization; conversely, the magnesite industry maintains high utilization (over 90%) due to the unique quality of Austrian raw materials. The iron industry shows mixed results, with foundry pig iron production tripling while other metrics remain below pre-war levels.
Read full textThis section details industries suffering from production declines and massive overcapacity. The sawmill industry is hindered by raw timber exports, salt production has plummeted due to the loss of former Austro-Hungarian markets, and the brick and cement industries operate far below their potential. The glass industry is presented as a 'classic example' where low capacity utilization triggered intensive rationalization and technological investment (e.g., Owens machines) to survive.
Read full textTransition heading marking the shift from quantitative analysis of production volume to qualitative changes in the structure of the national economy.
Read full textThis section analyzes the post-war transformation of the Austrian machine industry from a domestic-oriented sector to an export-driven one. It details the decline in production capacity and workforce, specifically highlighting the shift from steam engines to electric locomotives, pumps, and specialized machinery for paper and textile production.
Read full textA detailed examination of the qualitative and quantitative shifts in the Austrian textile industry following the dissolution of the Monarchy. It highlights the severe imbalance between spinning and weaving capacities across the succession states and discusses the growth of the artificial silk and knitwear sectors despite a general decline in traditional textile finishing.
Read full textThis segment describes how the chemical and sugar industries adapted to the loss of the Monarchy's internal market. The chemical industry expanded into heavy chemicals and pharmaceuticals to fill gaps, while the sugar industry successfully increased domestic beet cultivation and processing capacity to cover 75% of national demand by 1927.
Read full textAnalysis of the Austrian coal mining sector's transition from a marginal role in the Monarchy to a leading national industry. The text provides statistical data on production increases and details the extensive rationalization and electrification of mining operations to reduce dependence on foreign imports.
Read full textThis section documents the massive expansion of Austrian hydropower and the systematic electrification of the federal railways (Bundesbahnen). It provides regional breakdowns of power plant construction and lists specific railway lines converted to electric traction to mitigate the lack of domestic coal.
Read full textA comprehensive review of Austrian agriculture, showing a shift from meat production to intensive dairy farming. It provides detailed tables on crop yields (wheat, rye, potatoes, sugar beets) and livestock numbers, noting that while acreage has slightly decreased since 1913, yields per hectare have significantly improved through intensification.
Read full textThis section transitions to the 'Dynamics' of the economy, focusing on the paper and automobile industries as success stories of post-war recovery. It details how the paper industry overcame raw material shortages to exceed pre-war production and how the automobile industry adopted mass production (Fließarbeit) to compete internationally.
Read full textThe final segment of this chunk evaluates the recovery of the iron and cement industries through rationalization, while contrasting them with the stagnation in the brick and furniture industries. It explains how reduced domestic purchasing power and lost export markets have led to a permanent state of under-utilization in certain sectors.
Read full textBayer introduces the qualitative structural changes in the Austrian economy, emphasizing their close relationship with post-war customs policies. He explains how the protectionist measures of successor states forced Austria to develop new domestic production branches for semi-finished and finished goods, leading to a shift from quantitative to qualitative economic integration.
Read full textThis section analyzes the machine industry's adaptation to new technical demands, such as electrification and the needs of the domestic textile and coal industries. Bayer discusses the durability of these shifts, the impact of high foreign tariffs on Austrian exports, and provides detailed trade statistics from 1920 to 1927 showing a gradual recovery despite protectionist hurdles.
Read full textA detailed examination of the textile sector, focusing on the increasing integration between spinning and weaving. Bayer argues that the forced shift toward domestic complementarity—caused by high tariffs in successor states—represents a qualitative structural change. He provides extensive tables on production, spindle counts, and trade for cotton, wool (worsted and carded), flax, and jute.
Read full textBayer details the successful expansion of the Austrian sugar industry and the strategic development of domestic energy sources. He analyzes the coal industry's rationalization and the limits of replacing coal with water power. The section argues that these developments strengthen Austria's economic unity by reducing dependence on imports from the successor states.
Read full textThis section covers the recovery and modernization of Austrian agriculture. Bayer discusses land improvement (melioration) and consolidation (Kommassierung) as essential for increasing yields. He highlights the massive shift toward dairy farming and the growth of agricultural cooperatives as a qualitative structural change that aligns domestic production with consumption needs.
Read full textBayer analyzes the transformation of Austrian trade and banking. He notes the shift of exports from successor states to 'old' foreign markets and the internationalization of Austrian bank capital. The section details the impact of inflation and stabilization on bank balances, the decline of mortgage credit, and the evolving role of savings banks and cooperatives.
Read full textThe final results of the study emphasize that Austria's structural changes are moving toward a more integrated and unified national economy, though this is occurring against a backdrop of general impoverishment. A comprehensive bibliography of sources and literature regarding the Austrian economy, social policy, and specific industrial sectors is provided.
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