Carl Menger

Carl Menger

Carl Menger von Wolfensgrün was an Austrian economist. He was born on February 28, 1840, and died on February 26, 1921. He created the marginal theory of value. This helped start the Austrian school of economics. His work changed how people thought about prices.

Menger did not agree with older ideas from classical economics. He believed prices come from what people agree on, not just the cost of making something. This was called his subjective theory of value.

Before he became an economist, Menger worked as a lawyer and business journalist. He later taught at the University of Vienna from 1872 to 1903. He was a tutor and friend to Rudolf von Habsburg, the crown prince of Austria. His students, such as Eugen von Böhm-Bawerk and Friedrich von Wieser, shared his ideas with more people.

Biography

Carl Menger von Wolfensgrün was born in Neu-Sandez, which is now Nowy Sącz in Poland. He came from a wealthy family and studied law at universities in Prague and Vienna.

Later, he worked as a journalist, writing about markets and prices. He noticed that what he learned in school about prices didn’t match what people thought in real life. Because of this, he wrote a book called Principles of Economics in 1871. In this book, he shared new ideas about how prices are set.

Menger taught at the University of Vienna and even tutored a prince. He also wrote many articles about money and economics, which helped change how people thought about these subjects.

Economics

Menger believed that value is personal. He thought that when people trade, both sides benefit. He also explained that goods can be used in different ways, and each use has its own value. Menger had ideas about how money begins, and some people still agree with him today.

Money

Menger thought that gold and silver became money because they are valuable, last a long time, and are easy to keep safe. He believed these metals were chosen because they could be easily sold. This helped people balance what they have and what they need, which made them popular for trading and became money in many places.

Works

Carl Menger wrote many important books and articles about economics. In 1871, he published Principles of Economics, First, General Part. This book helped start a new way of thinking about money and value. In 1883, he wrote Problems of Economics and Sociology. This book looked at how we study economics. Other works include The Errors of Historicism in German Economics in 1884, The Theory of Capital in 1888, and an article called "On the Origin of Money" in 1892.