Eugen von Böhm-Bawerk - The exploitation theory of socialism-communism: the idea that all unearned income (rent, interest, and profit) involves economic injustice : an extract
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The exploitation theory of socialism-communism: the idea that all unearned income (rent, interest, and profit) involves economic injustice : an extract
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The Exploitation Theory of Socialism-Communism is an extract from Volume I, History and Critque of Interest Theories. It is a brilliant brief in defense of interest in any economic system, and a thorough rebuttal of the Marxian structure. It is probably the most interesting, and politically the most momentous, part of Von Bohm-Bawerk analysis. After all, Marxian thought pervades the world. Even in the United States, the exploitation theory has swayed public opinion and permeated both political parties. It has given rise to a New Deal in social and economic matters and a powerful labor union movement. The notion of labor exploitation by businessmen and corporations continues to determine basic economic policies on all levels of government, from labor legislation to Social Security and income taxation. Von Bohm-Bawerk rejoinder provides the only logical defense from the onslaught by the exploitation doctrine, which in the end breeds political and social radicalism. Many see the results of Marxian imperfections, but few people actually know the reasons for failure. The Exploitation Theory supplies the answers. Von Bohm-Bawerks most controversial analysis.
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The Idea that All Unearned Income (Rent, Interest and Profit) Involves Economic Injustice An Extract
Eugen von Bhm-Bawerk
Third (Revised) Edition
Libertarian Press Post Office Box 218 South Holland, Illinois 60473, U.S.A.
Page ii
Copyright Libertarian Press, 1960, 1967, 1975 Second Printing, 1967; Third [Revised] Edition, 1975
All rights reserved. No part of this book may be reproduced in any form by any means without written permission of the publisher.
Library of Congress Catalog Card Number: 74-83838 International Standard Book Number: 0-910884-03-X
Printed in the United States of America
Page iii
Publisher's Outline to this Third (Revised) Edition
This "book" consists of Bhm-Bawerk's Chapter XII entitled, "The Exploitation Theory," an Extract from History and Critique of Interest Theories, which is the first volume of the famous three-volume work of Bhm-Bawerk, with the general title, CAPITAL AND INTEREST.
The publisher has a "sentiment" against having much preliminary material in front of a book which has the standing of a classic; he holds that the real book should come first, or at least early. Therefore, the unorthodox method is here being followed of placing some of what are ordinarily introductory remarks after the book itself. The sequence of contents is as follows:
PREFACE TO THE FIRST EDITION of The Exploitation Theory by Dr. Hans F. Sennholz This Preface professionally evaluates the specific material in Bhm-Bawerk's chapter on "The Exploitation Theory."
TABLE OF CONTENTS of The Exploitation Theory (as edited here)
THE EXPLOITATION THEORY OF SOCIALISM-COMMUNISM, the idea that all Unearned Income (Rent, Interest and Profit) Involves Economic Injustice (the book itself) The analysis is famous; it is a classic on one of the most important subjects in economics.
EVALUATION OF CAPITAL AND INTEREST by Ludwig von Mises This is an enlightening perspective of Bhm-Bawerk's whole three-volume work. It was first printed in The Freeman, August, 1959, published by The Foundation for Economic Education, Inc., Irvington-on-Hudson, New York 10533.
Page iv
PUBLISHER'S POSTSCRIPT This is intended as a reader's help, and pertains to the difficult problems a reader will have in understanding Bhm-Bawerk because the reader begins, not at the beginning of a book as is the systematic method of good readers, but with Chapter XII out of a massive, technical, three-volume book on economics having altogether 66 chapters.
THE MARXIAN THEORY OF WAGE RATES by Ludwig von Mises This is a reprint of an article which appeared in May 30, 1961 issue of Christian Economics, published by Christian Freedom Foundation, Inc., 7960 Crescent Avenue, Buena Park, California 90620. This is a comprehensive appraisal of the general character of Marx's publications.
PORTRAIT OF AN EVIL MAN, a reprint of an article in The Freeman, written by Erik yon Kuehnelt-Leddihn. This is an unfavorable appraisal of Karl Marx; if overly so, it is an offset to many overly favorable appraisals.
For the present "book," it was not possible to retain its original pagination; footnotes, to simplify matters for readers, were moved forward from the rear to the pages where they belonged, thereby assisting the readers but disarranging the original pagination. It was not feasible to change the original page references; therefore, the original pagination is shown (for easy reference) in the outer margins. Footnote cross references match the original pagination of CAPITAL AND INTEREST.
As English-language publishers of works of Bhm-Bawerk, our appraisal of Marx in the late twentieth century differs from Bhm-Bawerk's appraisal in the late nineteenth century. Bhm-Bawerk's appraisal was before the portentous political rise of socialism-communism. We appreciate Bhm-Bawerk's objectivity and courtesy when he does not reprobate with vehemence the intellectual structure that Karl Marx developed in his book, Das Kapital: and also when he does not expatiate on how unadmirable a person Marx truly was. Bhm-Bawerk did not adequately anticipate the banethe cursethat socialism-communism has proved itself in fact to be.
What was one chapter in the original book has been divided into six sections in this paperback Extract (see Table of Contents). This is a device to emphasize Bhm-Bawerk's main subdivisions of thought.
Sideheadings in this book are new and were not in the original text of Bhm-Bawerk; they are the responsibility of the publisher only.
For the publication of an independent "book," it is natural to elaborate a short title of a chapter by the addition of words to provide a more
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descriptive identification, to wit: The Exploitation Theory of Socialism-Communism, the idea that All Unearned Income (Rent, Interest and Profit) Involves Economic Injustice.
Socialism and communism are linked in this title, but that is done justifiably; the economics of Marx and Rodbertus are the economics of both socialists and communists.
THE PUBLISHER JUNE 5, 1975 SOUTH HOLLAND, ILLINOIS 60473 U.S.A.
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