|Eugen von Böhm-Bawerk|
Today is Austrian economist, Eugen von Böhm-Bawerk’s, birthday. Born on February 11, 1851, he died on August 27, 1914. Known for his contributions to the “Austrian” theory of capital and interest, Böhm-Bawerk was also one of leading critics of Karl Marx’s labor theory of value and theory of exploitation. In addition, he refined and developed Carl Menger’s theory of marginal utility, formulating a far more detailed and rigorous theory of subjective value and market price-formation.
Böhm-Bawerk served three times as Finance Minister of the old Austro-Hungarian Empire, the longest period being from 1900 to 1904, during which he maintained a balanced budget while limiting both taxation and government spending, and strongly opposing deficit-funded “stimulus” expenditure proposals within the Austrian government.
He also offered a famous graduate seminar at the University of Vienna from 1905 to 1914, which attracted such later famous economists as Ludwig von Mises and Joseph Schumpeter.
In the accompanying article published today on the website of the Future of Freedom Foundation, I offer a detailed summary and appreciation of one of the leading early members of the Austrian School of Economics.