H. H. Gossen: The Moses of the Economists and His Theory of Pleasures Klaus Hagendorf [email protected] Université Paris Ouest – Nanterre, La Défense, March 2010

Dieser Zusammenhang zwischen dem Arbeitsaufwand zur Herstellung eines Gutes und seinem Wert war dem Urheber der Grenznutzentheorie, Hermann Gossen, ganz klar. "Um ein Größtes von Lebensgenuss zu erhalten" - sagt er -, "hat der Mensch seine Zeit und Kräfte auf die Bereitung der verschiedenen Genüsse derart zu verteilen, daß der Wert des letzten bei jedem Genuß geschaffenen Atoms der Größe der Beschwerde gleichkommt, die es bei ihm verursachen würde, wenn er dieses Atom in dem letzten Moment der Kraftentwicklung schaffte." Tugan-Baranowsky Theoretische Grundlagen des Marxismus p. 158

I. Einleitung Hermann Heinrich Gossen, (7 September 1810 Düren - 13 February 1858 Cologne) was a Prussian civil servant. There is no publicly known image of him. Gossen can be considered as one of, if not the Pioneer of modern economic theory. He has published only one book: Entwickelung der Gesetze des menschlichen Verkehrs und der daraus fliessenden Regeln für menschliches Handeln. Braunschweig: Verlag von Friedrich Vieweg und Sohn. 1854. But in this book we find the first scientific proof of the labour theory of value and a solution for the General Equilibrium of a simple Robinson Crusoe economy as well as an impressive demonstration of the beneficial effects of free exchange. Bourgeois vulgar economists reduce his achievements to the so called 2 Laws of Gossen: 1)

marginal utility is decreasing with the quantity of the good used.

2)

To obtain a maximum of utility under a constraint (usually the budget) marginal

utilities related to their prices must be equal for all goods. 1

Orthodox Marxists condemn him as an apologist of capitalism and for his subjectivistic approach to value. Both, bourgeois vulgar as well as Marxist criticisms fail to appreciate properly Gossen's analysis. The most obvious reason for this can be found in the way Gossen has presented his theory. In fact, one has the impression to be presented the 10 commandments of economics by Gossen as if he, just like Moses, had met the Creator in person. No doubt, Gossen himself was overwhelmed by his discoveries and anyone who studies him properly is so definitely too, beginning with F. von Hayek, N. Georgescu-Roegen and W. Krelle, H. C. Recktenwald, to name only those who have commented editions of his book. H. H. Gossen is at the roots of the problems of modern economic theory and we find in his book already everything which heats up the discussions of social, ethical, feminist, … in short heterodox economics. We are still discussing, if the way Gossen has shown to us is the right one: Optimising! From a mathematical point of view Gossen has managed to resolve the problem of General Equilibrium by using only geometrics and simplifying assumptions concerning the functional relationships, but these can always be used as approximations. His solution is that of a nonlinear programming problem! He proves that the intersection of the demand and supply functions yields the optimum of utility and this proof implies the validity of the labour theory of value. At the occasion of the 200. anniversary of Hermann Heinrich Gossen we present a spreadsheet demonstrating Gossen's labour theory of value. Paris, 12.3.2010 Klaus Hagendorf References

Gossen, Hermann Heinrich. (1854). Entwickelung der Gesetze des menschlichen Verkehrs und der daraus fliessenden Regeln für menschliches Handeln (1st ed.). Braunschweig: Verlag von Friedrich Vieweg und Sohn.

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3rd edition; Berlin: R.L. Prager; 1927. With an introduction by Friedrich A. von Hayek.

Gossen, H. H. (1987). Entwicklung der Gesetze des menschlichen Verkehrs und der daraus fliessenden Regeln für menschliches Handeln.

(W. Krelle; H. C. Recktenwald, Eds.).

Frankfurt am Main: Verlag für Wirtschaft und Finanzen.

Gossen, H. H. (1995). Exposition des lois de l'échange et des règles de l'industrie qui s'en deduisent. Paris: Economica. (French translation by Léon Walras and Charles Secrétan).

Gossen, H. H. (1983). The laws of human relations and the rules of human action derived therefrom. MIT Press. (English translation with an introduction of Nicholas GeorgescuRoegen).

Recktenwald, H. C.; Krelle, W. (1988). Gossens Gesetze: Leitmuster moderner Nutzentheorie. Akademie der Wissenschaften und der Literatur. Issue 10.

Kurz, Heinz D. (2009). Wer war Hermann Heinrich Gossen (1810–1858), Namensgeber eines der Preise des Vereins für Socialpolitik? Schmollers Jahrbuch, 129(3), 473-500.

Hagendorf, Klaus (2010); Gossen and his Labour Theory of Value - The Spreadsheet

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