by Böhm Bawerk
[Title Page and Publication Details]: Title page and publication information for the 1914 volume of the Zeitschrift für Volkswirtschaft, Sozialpolitik und Verwaltung, listing editors including Böhm-Bawerk and Wieser. [Table of Contents]: A detailed list of articles, society reports, and literature reviews contained in the 23rd volume, featuring contributors like Schumpeter, Mises, and Neurath. [Control of Economic Law vs. Social Power: Introduction and Historical Context]: Böhm-Bawerk introduces the fundamental tension between 'natural' economic laws (like supply and demand) and 'social power' (state intervention or collective action). He critiques the historical evolution from the rigid 'natural law' perspective of classical economics, exemplified by the wage fund theory, to more modern views that acknowledge social categories. [Critique of the Social Category and Marginal Utility Theory]: The author examines the 'social category' argument, specifically critiquing Stolzmann's view that power alone determines distribution. Böhm-Bawerk defends the Marginal Utility (Grenzwert) school, admitting it has a 'gap' regarding social power but arguing that power only operates within the framework of economic laws, not against them. He emphasizes that a rational economic policy requires understanding the precise interplay between these two forces. [The Mechanism of Economic Power: Monopolies and Usury]: Böhm-Bawerk argues that economic power (Macht) does not bypass economic laws but fulfills them. Using examples of usury and monopolies, he demonstrates that power functions by manipulating the variables within the marginal utility price formula—such as limiting supply or exploiting urgent needs—rather than acting as an external force that breaks the law. [Analysis of Collective Bargaining and Strikes]: A detailed analysis of how labor unions and strikes exert power. Böhm-Bawerk applies 'Imputation Theory' (Zurechnungstheorie) to show that while an individual worker's value is their marginal product, a collective group's value includes the potential loss of capital utility (complementary goods). This explains how strikes can temporarily push wages above the marginal product of a single worker while remaining within the bounds of economic valuation logic. [Sustainability of Power-Induced Wage Increases]: Böhm-Bawerk investigates whether wages forced above the 'natural' rate by power can be sustained. He analyzes seven scenarios, concluding that while power can shift distribution in the short term, long-term sustainability is limited by capital interest requirements and the 'marginal productivity' of labor. He argues that excessive wage hikes lead to longer production periods and unemployment, which eventually undermines the union's power and forces a return to economic equilibrium. [Functional vs. Personal Distribution and Conclusion]: The final section distinguishes between 'functional distribution' (wages, rent, interest) and 'personal distribution' (individual wealth). Böhm-Bawerk concludes that while social power can permanently alter personal distribution (e.g., through land reform or socialism), it cannot permanently override the functional laws of the market. He summarizes that power works within economic law, often merely anticipating changes that would have occurred naturally or correcting previous monopolistic distortions.
Title page and publication information for the 1914 volume of the Zeitschrift für Volkswirtschaft, Sozialpolitik und Verwaltung, listing editors including Böhm-Bawerk and Wieser.
Read full textA detailed list of articles, society reports, and literature reviews contained in the 23rd volume, featuring contributors like Schumpeter, Mises, and Neurath.
Read full textBöhm-Bawerk introduces the fundamental tension between 'natural' economic laws (like supply and demand) and 'social power' (state intervention or collective action). He critiques the historical evolution from the rigid 'natural law' perspective of classical economics, exemplified by the wage fund theory, to more modern views that acknowledge social categories.
Read full textThe author examines the 'social category' argument, specifically critiquing Stolzmann's view that power alone determines distribution. Böhm-Bawerk defends the Marginal Utility (Grenzwert) school, admitting it has a 'gap' regarding social power but arguing that power only operates within the framework of economic laws, not against them. He emphasizes that a rational economic policy requires understanding the precise interplay between these two forces.
Read full textBöhm-Bawerk argues that economic power (Macht) does not bypass economic laws but fulfills them. Using examples of usury and monopolies, he demonstrates that power functions by manipulating the variables within the marginal utility price formula—such as limiting supply or exploiting urgent needs—rather than acting as an external force that breaks the law.
Read full textA detailed analysis of how labor unions and strikes exert power. Böhm-Bawerk applies 'Imputation Theory' (Zurechnungstheorie) to show that while an individual worker's value is their marginal product, a collective group's value includes the potential loss of capital utility (complementary goods). This explains how strikes can temporarily push wages above the marginal product of a single worker while remaining within the bounds of economic valuation logic.
Read full textBöhm-Bawerk investigates whether wages forced above the 'natural' rate by power can be sustained. He analyzes seven scenarios, concluding that while power can shift distribution in the short term, long-term sustainability is limited by capital interest requirements and the 'marginal productivity' of labor. He argues that excessive wage hikes lead to longer production periods and unemployment, which eventually undermines the union's power and forces a return to economic equilibrium.
Read full textThe final section distinguishes between 'functional distribution' (wages, rent, interest) and 'personal distribution' (individual wealth). Böhm-Bawerk concludes that while social power can permanently alter personal distribution (e.g., through land reform or socialism), it cannot permanently override the functional laws of the market. He summarizes that power works within economic law, often merely anticipating changes that would have occurred naturally or correcting previous monopolistic distortions.
Read full text