History of Economic Thought. Teachings of K. Menger (the most important)

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History of Economic Thought. Teachings of K. Menger (the most important)

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46. TEACHING OF K. MENGER

Carl Menger (1840-1921) - scientist-economist, head of the Austrian school marginalism. The most famous economic work is "Fundamentals of Political Economy".

"Fundamentals of Political Economy"

K. Menger contributed to the fact that throughout the first stage of the "marginal revolution" of the three well-known founders of marginal economic theory, it was he who had the greatest recognition. This is due to the fact that, in contrast to the methodology W. Jevons и L. Walras Mengerian methodology research has kept certain key positions of the methodology of the classics:

1) the absence of mathematics and geometric illustrations in economic analysis;

2) the use of the principle of the original (base) category, which is considered the cost (value) with the only difference that the latter, according to Menger, should be determined not in connection with the measurement of production costs (or labor costs), but in connection with a subjective characteristic - marginal utility;

3) unlike the classics K. Menger considers primary not the sphere of production, but the sphere of circulation, that is, consumption, demand.

The main element in the methods of K. Menger is microeconomic analysis, or individualism. On the one hand, this made it possible to contrast the teachings of the classics about economic relations between classes of society with an analysis of economic relations and indicators at the level of an individual economic entity (in terminology K. Menger - "Robinson's farm"). On the other hand, this made it possible to get carried away by the preconceived notion that it is possible to identify and solve economic problems by considering them only at the level of the individual, at the micro level, taking into account the phenomenon of property and human egoism due to the relative scarcity of goods.

New methodological and theoretical constructions of K. Menger in "Foundations ..." are introduced by him almost in the style of the leading representatives of classical political economy. In particular, he says that, as in all other sciences, so in ours, it is necessary to investigate the objects of our scientific observation through their causal relationship and the laws that govern them.

However, the external similarity of Menger's terminology with the "classical" terminology, the tendency to consider "causation and laws" sent scientific research K. Menger in a completely different way, as can be seen from the problems of the very first chapter of the "Foundations ...", where we are talking about the division of economic goods into orders and substantiating the principle of complementarity (complementarity) of productive goods.

K. Menger seriously criticism of the wage theory of the "classics", at which the price of simple labor tends to a minimum, but at the same time it must “feed” the worker and his family. According to the leader of the Austrian school, this approach is incorrect, since the idea of wages as a source of “sustaining life” will always lead to an increase in the number of workers and a decrease in the price of labor to the previous (minimum) level.

Author: Tatarnikov E.A.

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