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By Pier Paolo Pasolini

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6 But despite the fame of the book and of his seminar at the University of Vienna, the remarkable achievements of Mises and The Theory of Money and Credit were never really acknowledged or accepted by the economics profession. 7 His income was earned as an economic advisor to the Austrian Chamber of Commerce, a position that he held from 1909 until he left Austria in 1934. The reasons for the general neglect of the Misesian achievement were wrapped up in problems of translation, or more deeply, in the course that the economics profession began to take after World War I.

The only unhappiness might be among existing copper-mine owners who found the price declining for their own product. ” The values and demands of consumers determine the final prices of the consumer goods, the goods purchased by consumers, which set the direction for productive activity, and in turn determine the prices of the cooperating units of factors: the individual wage rates, rents, and prices of capital equipment. The “distribution” of income was simply the consequence of the price of each factor.

Each unit of each factor then earns its marginal product, its own particular contribution to the productive result. In fact, if there was any conflict of interests, it was not between types of factors, between land, labor, and capital; it was between competing suppliers of the same factor. If, for example, someone found a new supply of copper ore, the increased supply would drive down the price of copper; this could only work to the benefit and the earnings of the consumers and of the cooperating labor and capital factors.

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