XX – Eugen von Bohm-Bawerk, Part 2 – History of Economic Thought; Part 1

Bohm-Bawerk stated that present goods, as a rule, are worth more than future goods of equal quality and quantity and that there are three reasons for this.  The first reason is that, over time, the supply of goods is expected to grow and thus be worth less in the future.  The second is that people are incapable of correctly judging what the future will hold.  They are more likely to buy things based on the certain now rather than the uncertain future.  The third is that goods in possession now have more time to be invested in long processes, thus yielding a greater output sooner.

XIX – Eugen von Bohm-Bawerk – History of Economic Thought; Part 1

Eugen von Bohm-Bawerk was another follower of Carl Menger.  He spent some of his time as the Minister of Finance of Austria, and his major works were Capital and InterestPositive Theory of CapitalCritical Excursions, and Karl Marx and the Close of His System.  His main work was destroying all the previous theories of interest on capital and presenting his own.

XVIII – Friedrich von Wieser – History of Economic Thought; Part 1

Friedrich von Wieser was a follower of Carl Menger, and he viewed his work as expanding on Menger’s.  Wieser’s major works were On the Origin and Principal Laws of Economic ValueNatural Value, and Social Economics.  He actually favored an interventionist state and thought that economic value was “natural” and existed no matter the government at the time.  He also was the first to use the phrase “marginal utility” and began development of the concept of opportunity cost.