Die Grenzen der Wirtschaftspolitik

[Series Information and Title Page]: Series overview of 'Meilensteine der Nationalökonomie' including reprints of works by Hayek, Machlup, and others, followed by the title page and publication details for Morgenstern's 'Die Grenzen der Wirtschaftspolitik'. [Preface]: Morgenstern introduces the purpose of the book: to clarify the relationship between theoretical research and its application to economic policy, emphasizing that theory remains neutral toward specific political goals while providing the necessary rationality for policy decisions. [Table of Contents]: A list of the ten chapters and the appendix contained in the book. [Chapter 1: Introduction]: Morgenstern defines economic policy as actions intended to benefit groups and argues that policy relies on theories of effect. He distinguishes between 'popular' theories held by practitioners and rigorous scientific theory, noting that while theory is 'congealed experience,' its application requires an artistic instinct for reality and a strict separation from meta-economic value judgments. [Chapter 2: The Problem of Application]: The author explores why applying economic theory is uniquely difficult compared to natural sciences, primarily due to the lack of constants and the necessity of using historical data. He critiques apriorism, argues that theory must be constantly reshaped to fill 'gaps' (Leerstellen) in concrete cases, and highlights how the time element in business cycle research complicates the determination of current economic positions. [Chapter 3: Rigid Systems of Economic Policy]: Morgenstern critiques Liberalism and Socialism as 'rigid systems' that falsely claim scientific necessity for their political programs. He argues that because economic theory evolves and empirical conditions change, a static policy like 19th-century Liberalism cannot be logically derived from modern science; instead, these systems are based on extra-scientific values and a failure to distinguish between 'is' and 'ought'. [Chapter 4: The Dispersion of Economic Policy Effects]: This chapter analyzes how the spatial and temporal distribution of policy effects influences political decision-making. Morgenstern observes that negative effects are often concentrated and immediate (making them politically loud), while benefits are dispersed and future-oriented (making them quiet). This psychological asymmetry leads to a trend toward interventionism and economic rigidity, as organized interests successfully lobby for protections that harm the unorganized public. [Chapter 5: Interdependencies of Economic Policy Measures]: Morgenstern argues that while a perfect 'meaning-nexus' (Sinnzusammenhang) in policy is impossible due to shifting values, a 'causal-nexus' (Wirkszusammenhang) exists where all measures affect one another through prices. He proposes the 'Principle of Consistency' as the only value-free scientific guide for policy, requiring that measures do not contradict each other (e.g., raising tariffs while trying to lower living costs). He uses the mathematical analogy of 'geodesic lines' to describe how theory must adapt to non-ideal constraints. [Chapter 6: Limits Set by Power]: Discussing the conflict between 'power' (e.g., unions, monopolies) and economic laws, Morgenstern follows Böhm-Bawerk in arguing that power does not abolish economic laws but rather expands the 'zone of indeterminacy' within which prices are formed. He notes that power-based successes are often temporary as the market eventually adapts (e.g., through substitution), and emphasizes that economic interventions always have broader social repercussions. [Chapter 7: Immanent Difficulties of Economic Policy]: Morgenstern identifies internal barriers to rational policy, such as the difficulty of communicating relational logic to the public and the tendency of nations to repeat historical economic errors (e.g., inflation). He critiques the influence of organized interests and 'vulgärökonomische' (popular/pseudo-economic) slogans. He advocates for maximum publicity and scientific control to hold policymakers accountable for the gap between their promises and actual results. [Chapter 8: Particularities of Business Cycle Policy]: The author examines the application of business cycle theory, arguing that there is no single 'recipe' for recovery. He suggests that policy should focus on increasing economic elasticity during depressions and exercising fiscal restraint during booms. He critiques current trends in monetary stabilization and highlights the shift in theory toward 'monopolistic competition' and the 'time element.' Finally, he rejects detailed economic forecasting as unscientific due to the unquantifiable nature of human expectations. [Chapter 9: The Dangers of National Economics]: Morgenstern warns against 'Vulgärökonomie' (pseudo-economics), which offers simplistic, contradictory solutions that appeal to the public but lack scientific rigor. He defends the 'doctrinarism' of theorists as a necessary adherence to unchanging economic truths. He concludes that there is no substitute for scientific theory—neither 'intuition' nor 'practical experience' can provide a valid understanding of economic causality if they bypass the logical framework of national economics. [Appendix and Bibliography]: An appendix providing bibliographic references and commentary on the intellectual foundations of the work, citing key thinkers like Menger, Weber, Mises, Robbins, and Myrdal, and discussing the 'Methodenstreit' and the concept of value-freedom.