Some Critical Perspectives on Böhm-Bawerk’s Capital and Interest, Volume I, A Critical History of Economic Theory, with Special Reference to his Treatment of Turgot, John Stuart Mill and Jevons

Abstract

Eugen von Böhm-Bawerk’s Critical History of Economic Theory appeared in 1884 as the first volume of an eventual three-volume treatise on capital theory, of which the second volume, Positive Theory of Capital, appeared in 1889. An English translation of the Critical History by William Smart appeared as early as 1890, and attracted considerable criticism in England from Alfred Marshall and elsewhere (from Gustav Cassel and Knut Wicksell). This paper intends to critically review three significant and controversial aspects of Böhm-Bawerk’s history, namely his views on ‘Turgot’s Fructification Theory’ (Book I, chapter III) and ‘the minor systems’ developed by persons described by Böhm-Bawerk as ‘eclectics’, that is, John Stuart Mill and William Stanley Jevons. The last are treated in the same chapter by Böhm-Bawerk, that is, Book VII, chapter I. An earlier section of the paper will provide a brief overview of Böhm-Bawerk’s Critical History to enable those unfamiliar with its text to situate the three short sections here critically reviewed, in their proper places. A final section presents some conclusions.