Carl Menger

Carl Menger von Wolfensgrün was an Austrian economist born on February 28, 1840, and passed away on February 26, 1921. He is best known for creating the marginal theory of value, which helped start the Austrian school of economics. His work changed how people thought about prices and value in economics.

Menger did not agree with many older ideas from classical economics. He especially disagreed with the "German school" that thought economic theory should come from history. Instead, he believed that prices come from what people agree on, not just the cost of making something. This was called his subjective theory of value.

Before becoming an economist, Menger worked as a lawyer and business journalist. He noticed that the economic theories did not match how real buyers thought. Later, he taught at the University of Vienna from 1872 to 1903. During his career, he also became a tutor and close friend to Rudolf von Habsburg, the crown prince of Austria. His ideas were shared with more people by his students, such as Eugen von Böhm-Bawerk and Friedrich von Wieser.

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.

Menger noticed that what he learned in school about prices didn’t match what people in the real world thought. This led him to write a book called Principles of Economics in 1871, where he introduced new ideas about how prices are set. He taught at the University of Vienna and even tutored a prince. Menger also wrote many articles about money and economics, changing how people thought about these topics.

Economics

Menger used his idea that value is personal to explain that both people benefit when they trade. He thought goods are important because they can be used in different ways, and each use has its own value. Menger also explained how money begins, which some people still agree with today.

Money

Menger thought 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, helping 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 several important books and articles about economics. In 1871, he published Principles of Economics, First, General Part, which helped start a new way of thinking about money and value. In 1883, he wrote Problems of Economics and Sociology, exploring 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.