Page - 88 - in Otto Bauer (1881–1938) - Thinker and Politician

88 chapter 3 – Thecrisis-pronecharacterof thecapitalisteconomyandfactors thatmight reviveit. We shall briefly preface our reconstruction of Bauer’s views on numerous relatedeconomicproblems (including tendencies in thedevelopmentof the world economy, the accumulation of capital, business cycles, possibilities of overcomingcrises,andtheeconomictransitionfromcapitalismtosocialism). Thefollowinggeneral remarksare,arguably, thekeytoBauer’sentireobserva- tionsonimperialism. – In economic analyses, Bauer adopted twodistinct stances. Firstly, that of a theorist addressing a number of questions: the direction inwhich cap- italist imperialismwas developing and its economic, social, and political consequences,therootsofcrisesandpossibilitiestopreventandcounteract theoutbreakofcrises.Bauer’s secondstancewas thatofadedicatedparti- cipatingobserverwhostudiedempiricalreality,describedthenegativecon- sequences of imperialism for theHabsburgmonarchy, explained crises in Austria-Hungary(laterjustAustria)andsoughtemergencyeconomicmeas- urestostopthem.ThisinternalconflictofBauerasaneconomist inevitably shapedhisanalyticalmodel.Hedividedhisobservations intopurely theor- etical studiesontheonehand,and investigations that servedtheeveryday politicsof theparty–orweresubordinatedtotheauthor’spoliticalviews– ontheother. – In Bauer’s economic studies, his political viewpoint determined his eco- nomic position. His analyseswere not always inventive, and occasionally theywere erroneous. One should not treat this appraisal as a significant objection, given that Bauer was not a professional economist.7 He was, however, an attentive observer of capitalism’s developmental tendencies, andofthewaysinwhichthesetendencieschangedthecharacterofthestate. Hewasalso familiarwith statistics concerningcrisesbefore 1914and from 1918–31,andknewthestateoftheEuropeanandworldeconomieswell.8The valueofhisanalyses,whichwere insightfulandmeticulously supportedby 7 Bauer’s posthumouswork, Einführung in die Volkswirtschaftslehre (Introduction to Political Economy, 1956), inwhich the authordiscussed themain categories ofMarxianeconomics, testifiedtohisprofoundknowledgeofpoliticaleconomy. 8 Bauer’swide knowledge in these areas anderudition in economic literature are genuinely impressive.Hewas familiarwith themore importanteconomic theories, andthecondition of the economies of Europe– especiallyGermany,Great Britain, and theBalkans –North America,andSouthAmerica.