Eugen Von Bohm-bawerk

Picture of Eugen Von Bohm-bawerk

Date of Birth: 02/12/1851

Age: 63

Place of birth: Brno

Citizenship: Austria

The representative of the Austrian School of Economics

Eugen Bohm von Bawerk was born on February 12, 1851 in Brno (Brno), Czech Republic. Studying at the University of Vienna (University of Vienna), to become a lawyer, read a book by Eugen `Principles ekonomiki` (` Principles of Economics`) Carl Menger (Carl Menger). And, although the Bohm-Bawerk had never studied under Menger, he quickly became a supporter of his theory. Joseph Schumpeter (Joseph Schumpeter) said that `Eugen was so enthusiastic disciple of Menger that it is hardly in need of any other vliyanii`. While studying at the university, Bohm-Bawerk made friends with Friedrich von Wieser (Friedrich von Wieser), who later became his relative.

After training in 1972 Eugen joined the Austrian Ministry of Finance, where until 1880 he held various positions until he became a qualified teacher of political economy at Vienna. But a year later he provided his services to the University of Innsbruck (University of Innsbruck), where he remained until 1889, becoming a professor in 1884. At this time, he published the first two (of three) volumes of his fundamental works, entitled `Capital and protsent` (` Capital and Interest`).

In 1889 Bohm-Bawerk became an adviser to the Ministry of Finance in Vienna, represented the Government in the House on all issues of taxation. He has prepared a proposal on the reform of direct taxes, while the Austrian system at the time of the taxable exorbitant taxes production, especially in time of war, creating enormous obstacles to investment. His proposal was quickly approved and was met with great success.

Then Eugen became finance minister in 1895. He stayed in this position for two terms, the third time staying there from 1900 to 1904-th. As Minister of Finance Bohm-Bawerk continually fought for strict adherence to the monetary system of gold `standarta` and a balanced budget. In 1902 he abolished the `saharnye` subsidies that were a feature of Austria`s economy for almost two centuries. Finally, in 1904 he resigned when the increased financial requirements of the army threatened budget.

The economic historian Alexander Gerschenkron (Alexander Gerschenkron), criticizing Eugen, called it `trembling over kopeykoy`, and put on him a great part of the blame for the economic backwardness of Austria because of his reluctance to implement community projects. However, Joseph Schumpeter praised Eugen efforts, which established in the country`s financial stability. (And Bohm-Bawerk did twice deduced Austria from financial peak). ex-Minister of Finance of the image appears on the banknote of one hundred shillings in the period between 1984 and 2002, has not yet been introduced the euro.

Eugen criticized the economics of Karl Marx (Karl Marx) in the 1880s and 1890s, and several prominent Marxists, including Rudolf Hilferding (Rudolf Hilferding). In 1904 he returned to teaching, leading the department at the University of Vienna. Among his students was Joseph Schumpeter, Ludwig von Mises (Ludwig von Mises) and Henryk Grossman (Henryk Grossman).

The first volume of the product `Capital and protsent` that Ludwig von Mises considered `the most outstanding contribution to modern economic theory is called` History and criticism protsenta` theories ( `History and Critique of Interest Theories`, 1884). This volume discusses issues such as the problem of interest; performance theory, use, moderation and operation; unpopular system and the labor theory.

Bohm-Bawerk argued that the Marxist theory of exploitation ignores the dimension of time in the production, which he discussed in his theory of `okolnosti` (` roundaboutness`) production. According to his findings, the percentage - is the result of the fact that today`s consumer goods are exchanged for future time, and still is to identify why the people behind the products purchased today are willing to pay more in the future.

The second volume, entitled `The positive theory kapitala` (` Positive Theory of Capital`, 1889) expands on the consideration of concepts such as the nature and concept of capital, value, price, past and future, a source of interest and the interest rate. The third volume, `` Further essays Capital and protsenta` ( `Further Essays on Capital and Interest`, 1921), which includes 12 excursions, was the addition of a second and replied to the criticism of the work.

Eugen was under scrutiny Marxist economists, such as Nikolai Bukharin (Nikolai Bukharin), that is, taking on arms the economic theory of the leisure class, argued that the chosen axiomatic approach to the subjectivist theory of Bohm-Bawerk`s illusory. According to Bukharin, economic phenomena can be explained only through the prism of a consistent, contextual and historical analysis of society, as did Marx.

Eugen Bohm von Bawerk died in Kramsach, Austria-Hungary (Kramsach, Austria-Hungary), August 27, 1914.

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