Common Sense with Paul Jacob

On February 23, 1898, Émile Zola was imprisoned in France after writing “J’accuse,” a letter accusing the French government of anti-Semitism and wrongfully imprisoning Captain Alfred Dreyfus.

Fifty-eight years earlier, Austrian economist Carl Menger was born.

Menger would go on to contribute to the development of the theory of marginal utility, which supplanted cost-of-production theories of value in economics, in his first book, translated into English as “Principles of Economics.” Though expert in mathematics (he served as tutor in economics and statistics to Archduke Rudolf von Habsburg, the Crown Prince of Austria not long after the publication of the Principles), his approach to marginal theory was the least mathematical of his famous “co-discovers” of the principle, William Stanley Jevons and Leon Walras. Rooted in a subjective theory of value, it was the most realistic and least model-based of the marginalist revolutionaries, and he was most interested in price formation, not “price determination,” which focused almost exclusively on equilibrium conditions. He developed an evolutionary theory of money, as well.

Menger’s second book was a defense of a particular kind of general theory in social science, and an explanation of the importance of “invisible hand” processes in the social world. The first theme caused a firestorm of debate in the German-speaking world, where “socialists of the chair” and other opponents of laissez faire went ballistic regarding the possibility of permanence of finding laws in the social world that were not of their own constructing. The second theme developed ideas found in Adam Smith, and extended them.

Menger inspired two major followers, Friedrich Freiherr von Wieser and Eugen von Böhm-Bawerk. The former named “marginal utility” and developed the first rigorous view of cost as opportunities foregone; the second advanced a time-preference theory of interest and theory of the structure of production. Later followers of this “Austrian School” included Ludwig von Mises and F.A. Hayek.

 On Feb. 22, 1943, brother and sister Hans and Sophie Scholl, and their colleague in the White Rose resistance organization, Christoph Probst, stood trial before the Volksgericht — the People’s Court that tried political offenses against the Nazi German state. Found guilty of treason by Roland Freisler, head judge of the court, the three were executed that same day. The method of capital punishment was guillotine.

On Feb. 21, 1848, The Communist Manifesto, written by Karl Marx with help from Friedrich Engels, was published in London by a group of German-born revolutionary socialists known as the Communist League.

On Feb. 21, 1916, the Battle of Verdun began with German bombardment of the city of Verdun, France.  For ten months, the longest single engagement of World War II, German forces attacked the French along a 20-kilometer front crossing the Meuse River. When the battle ended, with no change in the strategic position of either army, the combined death toll was over 300,000 (out of over 700,000 casualties).

On Feb. 21, 1965, Malcolm X was gunned down by rival Black Muslims while addressing his Organization of Afro-American Unity in New York City.

For something a tad more upbeat, on this date in 1952 the British government, under Winston Churchill, abolished identity cards in the UK to “set the people free.”