chapter  4
22 Pages

Karl Marx: A Ricardian Management Scientist

Gunnar Myrdal's abstract theory of business economics arose when he left the metaphysical problems of exchange value 'metaphysics' being the major evil in terms of Axel Hgerstrm's philosophy and sought a scientific appreciation of the business evaluation of capital. In Myrdal's world market decisions are not primarily made by individual consumers but by the producing firms. It is the case that the demand for the products of an individual company could fall when workers favor other companies, resulting in price rises for more attractive products. A large part of Myrdal's doctoral thesis was concerned with how different risks in the mental world of managers were assessed in terms of probabilities. Managerial decision making had unexpected and long-term effects, and because of this, political economics should be transformed into an economic policy that guided decisions in the desired direction. Myrdal's abstract economics concerning the investing entrepreneur rested upon a superstition that was beyond empirical verification.