Sociology
PRINCIPLES OF
ECONOMICS
Carl Menger
FOREWORD BY PETER G. KLEIN
INTRODUCTION BY F.A. HAYEK
TRANSLATED BY
JAMES DINGWALL AND BERT F. HOSELITZ
Cover: Carl Menger portrait is courtesy of The Warren J. Samuels Portrait Collection at Duke University. Copyright © 1976 by the Institute for Humane Studies Foreword Copyright © 2007 by the Ludwig von Mises Institute Reprinted in 2007 by the Ludwig von Mises Institute Ludwig von Mises Institute 518 West Magnolia Avenue Auburn, Ala. 36832 U.S.A www.mises.org ISBN: 978-1-933550-12-1
CONTENTS
FOREWORD BY PETER G. KLEIN 7 INTRODUCTION BY F.A. HAYEK 11 TRANSLATOR’S PREFACE 37 AUTHOR’S PREFACE 45 I. THE GENERAL THEORY OF THE GOOD 51 1. The Nature of Goods 51 2. The Casual Connections between Goods 55 3. The Laws Governing Goods-Character 58 A. The Goods-Character of Goods of Higher Order is Dependent on Command of Corresponding Complementary Goods 58 B. The Goods-Character of Goods of Higher Order is Derived from that of the Corresponding Goods of Lower Order 63 4. Time and Error 67 5. The Causes of Progress in Human Welfare 71 6. Property 74 II. ECONOMY AND ECONOMIC GOODS 77 1. Human Requirements 80 A. Requirements for Goods of First Order (Consumption Goods) 80 B. Requirements for Goods of Higher Order (Means of Production) 84 C. The Time Limits within Which Human Needs are Felt 87 2. The Available Quantities 89 3. The Origin of Human Economy and Economic Goods 94 A. Economic Goods 94 B. Non-Economic Goods 98 C. The Relationship between Economic and Non-Economic Goods 101 D. The Laws Governing the Economic Character of Goods 106 4. Wealth 109 III. THE THEORY OF VALUE 114 1. The Nature and Origin of Value 114 2. The Original Measure of Value 121 A. Differences in the Magnitude of Importance of Different Satisfactions (Subjective Factor) 122
ECONOMICS
Carl Menger
FOREWORD BY PETER G. KLEIN
INTRODUCTION BY F.A. HAYEK
TRANSLATED BY
JAMES DINGWALL AND BERT F. HOSELITZ
Cover: Carl Menger portrait is courtesy of The Warren J. Samuels Portrait Collection at Duke University. Copyright © 1976 by the Institute for Humane Studies Foreword Copyright © 2007 by the Ludwig von Mises Institute Reprinted in 2007 by the Ludwig von Mises Institute Ludwig von Mises Institute 518 West Magnolia Avenue Auburn, Ala. 36832 U.S.A www.mises.org ISBN: 978-1-933550-12-1
CONTENTS
FOREWORD BY PETER G. KLEIN 7 INTRODUCTION BY F.A. HAYEK 11 TRANSLATOR’S PREFACE 37 AUTHOR’S PREFACE 45 I. THE GENERAL THEORY OF THE GOOD 51 1. The Nature of Goods 51 2. The Casual Connections between Goods 55 3. The Laws Governing Goods-Character 58 A. The Goods-Character of Goods of Higher Order is Dependent on Command of Corresponding Complementary Goods 58 B. The Goods-Character of Goods of Higher Order is Derived from that of the Corresponding Goods of Lower Order 63 4. Time and Error 67 5. The Causes of Progress in Human Welfare 71 6. Property 74 II. ECONOMY AND ECONOMIC GOODS 77 1. Human Requirements 80 A. Requirements for Goods of First Order (Consumption Goods) 80 B. Requirements for Goods of Higher Order (Means of Production) 84 C. The Time Limits within Which Human Needs are Felt 87 2. The Available Quantities 89 3. The Origin of Human Economy and Economic Goods 94 A. Economic Goods 94 B. Non-Economic Goods 98 C. The Relationship between Economic and Non-Economic Goods 101 D. The Laws Governing the Economic Character of Goods 106 4. Wealth 109 III. THE THEORY OF VALUE 114 1. The Nature and Origin of Value 114 2. The Original Measure of Value 121 A. Differences in the Magnitude of Importance of Different Satisfactions (Subjective Factor) 122