Die NEUESTEN FORTSCHRITTE IN DER NATIONALÖKONOMISCHEN THEORIE

[Google Digitization Notice and Usage Guidelines]: This section contains Google's standard disclaimer and usage guidelines for digitized public domain books, explaining the mission of Google Book Search and the legal responsibilities of the user. [Title Page and Publication Details]: The title page for the 1888 lecture by Dr. Emil Sax on the latest progress in national economic theory, including publication details from Duncker & Humblot and library stamps. [Publisher's Catalog: Staats- und socialwissenschaftliche Forschungen]: A detailed list of volumes in the series 'Staats- und socialwissenschaftliche Forschungen' edited by Gustav Schmoller, covering topics from Carolingian land ownership to industrial history and tax systems. [Publisher's Catalog: Schriften des Vereins für Socialpolitik]: A catalog of publications by the Verein für Socialpolitik (1873–1888), listing reports on labor laws, taxation, housing for the poor, and agrarian conditions across Europe. [Preface and Occasion of the Lecture]: Dr. Emil Sax describes the circumstances of his lecture, delivered shortly after the death of Emperor Wilhelm I. He notes the surprising public interest in strict economic theory despite the national mourning, justifying the publication of the text. [The Relationship Between Theory and Practice in Economics]: Sax argues that while the German Historical School (represented by Schmoller) has made great strides in economic history and realistic practice, it lacks a foundational 'pure theory.' He asserts that theory must distill general types from the complexity of reality to make phenomena comprehensible, similar to the relationship between physics and technology. [The Psychological Basis of Economic Action]: Sax defines economics as an applied psychology that explores the mental processes driven by the 'economic fundamental relationship'—the scarcity of means relative to infinite human needs. He identifies the core concepts as needs (feelings of lack), goods (objects of desire), and labor (the pain of effort). [The Law of Diminishing Intensity and Labor Disutility]: The author explains how the mind automatically ranks and measures the intensity of needs. He introduces the law of progressive decrease in need intensity and contrasts the pleasure of satisfaction with the 'unpleasantness' (Unlust) of labor effort. Economic action occurs only when the pleasure of satisfaction outweighs the pain of labor. [Critique of Existing Value Theories]: Sax critiques three dominant value theories: value as utility (which fails to explain why highly useful things can have low value), value as labor (the socialist view, which confuses cause and effect), and value as an objective exchange ratio (which confuses the measure with the essence). He argues that value is purely subjective. [The Subjective Theory of Value and Economic Laws]: Sax presents value as a psychological 'feeling of value' (Werthgefühl) based on the association of ideas between a good and the welfare it provides. He proposes a mathematical law: value is directly proportional to need intensity and inversely proportional to the quantity of goods owned. He cites Menger, Wieser, and Jevons as precursors. [Application to Public Finance and Taxation]: The author extends the subjective value theory to the state. He argues that taxes and public fees are not matters of 'justice' (ethics) but are governed by the same economic laws of value as private exchange. This 'universal law of value' explains both individual actions and the financial operations of the state, unifying private and public economics. [Publisher's Advertisement and Colophon]: A concluding advertisement for other economic works published by Duncker & Humblot, including titles by Schmoller, Brentano, Auspitz, and Lieben.