Born in Poland in 1840, Carl Menger was the founder of the Austrian School of Economics and refuted the popular “labour theory.” He argued that the value of a good does not come from its intrinsic and objective value or the labour required to produce it, but rather from its usefulness in satisfying human needs. This value has a subjective component. Menger laid the foundation for the theory of “marginal utility” using this perspective to explain the development of money and the determination of product prices in commerce.
He did not believe that economic relationships were entirely subjective, but instead saw the law of causation and effect as the foundation of all economic processes. As a result, he linked human needs and desires to the value of goods that could satisfy them in a stable manner. Menger’s theories were not materialistic and refuted the labour understanding that was at the heart of Marxist theory. If you want to learn more about Menger, you can examine the subheadings in this Zatrun.com article.
Who is Carl Menger?
Carl Menger was born in 1840 in Nowy Sacz, Poland, as the child of a wealthy family. His father, Anton Menger, was a lawyer. After completing his high school education, Carl Menger received a legal education at the universities of Prague and Vienna. After completing his undergraduate studies, he earned a doctoral degree in law from the Jagiellonian University in Krakow. Menger began a study on political economy in 1867. This study resulted in the publication of his work, “Principles of Economics,” in 1871.
The economic principles contained in this book were ignored when it was published. However, the book later became the foundation of the Austrian School of Economics. In the late 1870s, Menger gave private lessons to Archduke Rudolf von Habsburg on political economy.
Emperor Franz Josef appointed Menger to the political economy chair at the University of Vienna in 1878. Menger was appointed to lead a commission for the reform of the Austrian monetary system in the late 1880s. He resigned from his professorship in 1900 and almost 20 years later, in 1921, he passed away.
Menger’s Legacy: The Austrian School
Carl Menger is the founder of the Austrian School of Economics. He deserved this title for creating the value and price theory, which forms the core of economic theory. But Menger did not just do this; he also found and applied the correct method for conducting theoretical research in economics.
His Economics views later became the fundamental principles of the Austrian School. His greatest achievement was proving that prices are determined by how much they satisfy human needs and desires.