The one who turned the tide against socialism

In late 19th Century Europe's intellectual and academic circles, the Marxist critique of capitalism and its dialectical view of world history was all the rage. Economist Carl Menger, (1840-1921) the father of the Austrian School, dared to differ. From a George Melloan book review of The Marginal Revolutionaries, by Janet Wasserman.

"Menger challenged the then-orthodox 'labor theory of value' that Karl Marx had turned into the war cry 'workers of the world unite.' In its place Menger introduced the concept of 'marginal utility,' which in oversimplified terms means that the only accurate way to measure the true value of goods, and thus achieve an efficient allocation of resources, is through an arrangement that allows the buyer to signal what he is willing to pay to satisfy his needs or desires--in short, what the market will bear. Setting prices by state edict begs for trouble. Menger's ideas, over time, were elaborated into a broad theory of the economy and society, so that the Austrian School came to signify a defense of individual liberty and an indictment of statism and central planning."

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