The Life of Oscar Langer's Characters

Lange 1904 was born in the family of a textile capitalist in Tommasu, Poland on July 27th. Shortly before the outbreak of World War I, he went to Austria to recuperate due to illness. After the war started, I went back to my hometown in Poland to attend middle school. Langer had a wide range of interests in middle school. He loves to read theoretical works about socialism, especially the works of Marx and Engels, and he has also read the works of Kaucki. 19 18, the centenary of Marx's birth, and when Langer was 14 years old, he was already able to speak Marxism. 19 18 autumn, he contacted the newly established workers' representative committee in his hometown, joined the Polish Socialist Youth League, and recruited members from students and young workers. Langer also often reads the works of famous scientists, such as charles robert darwin and Ernst Heinrich Philipp August Haeckel. He is also interested in anthropology, sociology and religious history, and especially admires Kosif. Kosif Ski is a Polish sociologist, economist, human culturist and the first famous Marxist theorist in Poland. Langer is also interested in studying Orientalism. He has studied Chinese and comparative linguistics.

Before 1922 entered the university, Langer paid long-term attention to how human beings evolved from animals and whether there was a scientific basis for the existence of social institutions that consciously guided social and economic life. He is also interested in the application of mathematics in economics and other social sciences. So he wants to study biology as well as economics and sociology. I was still hesitating until I stood in the corridor of Poznan University. Finally, I decided to study economics.

Learning career

At that time, Poznan was a conservative city, and Langer felt lonely, so he transferred to Yakilenni University in Krakow the next year. 1924, Langer read a paper "On the Limit of Production" in the discussion class of Professor Noszky of Ke Xishan. This is an attempt to apply mathematics to the production problems under the capitalist and socialist systems. Langer became the teaching assistant of Professor Kheshan Noszky one year after graduation. But his interest goes far beyond economics. 1925 published the article "Urban Distribution in Great Poland under the Germanic Law in the Middle Ages". 1926, Langer obtained a master's degree in law from Krakow University. 1928 He wrote his doctoral thesis "Business Cycle in Poland1925-1927" and obtained a doctorate in law. In the same year, Edward Abra Moschi's Sociology and Social Thought was published. 193 1 published the Statistical Methods for Studying Economic Fluctuations. Because of this statistical paper, he got the position of temporary lecturer in statistics. Langer originally wanted to teach political economics, but the university authorities worried about his left-leaning thoughts and activities and advised him to teach statistics because statistics was far from politics. So there are many obstacles. The Ministry of Education refused to approve it for some time.

Between the two wars, Langer had close ties with the socialist youth movement. 1927 Join the Polish Socialist Party. In 1930s, he was twice suspended from members of the Communist Party of China (CPC), thinking that his opinions were too left-wing, and he supported the cooperation between socialists and producers. Langer's main political activity garden during and after his university study was the Independent Socialist Youth League, which was related to the Polish Socialist Party, but was much more radical in thought. Lange served as the secretary and chairman of the Krakow branch of the alliance. 1928, the National Conference of the League of Nations adopted an ideological declaration, which was based on Marxist principles and written by Langer.

Mainly due to the activities of Langer and others, Krakow became the most powerful socialist ideological center in Poland's left-wing youth movement. From 65438 to 0934, the left-wing youth movement published a programmatic booklet: Socialist Economy, Politics, Tactics and Organization, in which Langer and Bray featured the part "The Road to the Socialist Planned Economy". Many ideas in the section "Preliminary Measures of Revolutionary Workers and Peasants Government" were later absorbed into the program of the Polish National Liberation Committee established in lublin in 1944, and were realized in the initial activities of the Polish People's Provisional Government.

Langer's left-leaning thoughts and social and political activities prevented him from staying at Krakow University. 1934, just the Rockefeller foundation gave him a scholarship. A 30-year-old lecturer in economics can go to the United States for postgraduate study. 1934 to 1936, studied at Harvard University and the University of Minnesota. 1936 However, as an economics lecturer at the University of Michigan, Langer visited the United States again in the autumn of 1937 after staying in Poland for some reason. He has been an economics lecturer at the University of California and Stanford University.

Langer debate

Professor Mises published an article entitled "Economic Calculation under the Socialist System" in the spring of 1920. He denied the possibility of socialist economic accounting and rational allocation of resources. Although the article is not long, it concisely expounds the core issues of socialist economy, which became a groundbreaking work at that time and caused a great debate on socialist economic issues. His colleagues and opponents speak highly of him. Hayek pointed out that "it belongs to Austrian economist ludwig von mises to explain the central problem of socialist economics in the form that a problem will never disappear from the discussion." . [5] Langer believes that the credit for making socialists systematically study this issue belongs entirely to Professor Mises. "The image of Professor Mises should occupy a glorious position in the hall of the Ministry of Socialization or the Central Planning Bureau of socialist countries." [6] Mises pointed out in this famous paper that in the economic system of private ownership of the means of production, the possibility of reasonable economic calculation lies in the fact that the price expressed in money provides the necessary conditions to make this calculation possible, while in the socialist economy, there is no such price system expressed in money, so it is impossible to determine whether a product is needed or whether labor and raw materials are wasted in the process of producing this product. He believes that socialism may not be able to get rid of money, and it is conceivable to allow money to be exchanged for consumer goods. However, because the prices of various factors of production cannot be expressed in money, money does not play a role in economic calculation. In a static society, economic calculation can be abandoned, and a static economic system never exists. All economic changes involve various activities, and their value can neither be predicted in advance nor determined afterwards. Everything will be groped in the dark. Socialism is the abandonment of rational economy. In view of the fact that some socialists believe that socialism can solve the problem of economic calculation by establishing an artificial market for the means of production, Mises stressed that these people did not see that it is impossible to separate the function of the market and its price formation from the society based on the private ownership of the means of production. Market is the core of capitalist social system and the essence of capitalism, but under socialist conditions, it is impossible for the market to be artificially copied. Socialist countries can only control their capital by the state or people engaged in state affairs. This means eliminating the market, because using the market to guide economic activities means organizing the production and distribution of products according to the purchasing power dominated by all members of society, and this purchasing power can only be found in the market. Eliminating the market is the goal of socialism. The essence of economic calculation is not what to produce and how much to produce, but how to make the most effective use of the existing means of production to produce these products, that is, the rational allocation of resources. Only the monetary price tools formed in the market of means of production in private ownership society can be used for economic calculation, which means that there must be monetary prices of land, raw materials and semi-finished products, and there must be monetary wages and interest rates. Finally, the article points out that the problem is either socialism or market economy. Mises's conclusion is that it is impossible for the socialist economy to realize the effective allocation of resources [7]. Mises's article has been criticized by many economists, the most famous of which is Oscar Langer. Langer wrote a long article about socialist economic theory, challenged Mises' viewpoint and put forward the solution of competitive socialism, namely Langer model. [8] Langer accused Mises of confusing the narrow price, that is, the proportion of goods exchanged in the market, and the broad price, that is, the conditions for providing other options. Only the broad price is indispensable to solve the problem of resource allocation. Langer thinks that Mises' confusion leads to the conclusion that socialism cannot solve the rational allocation of its resources. After expounding how the competitive market establishes equilibrium through trial and error, Langer puts forward that the socialist economy can obtain equilibrium price through trial and error, and the socialist economy can realize rational allocation of resources. Langer is not the first person to point out that socialism can realize the rational allocation of resources. As early as the early 20th century, the Italian economist Pareto pointed out in his book "Socialist System" that the socialist system can create and realize the conditions of "optimal welfare state" and realize the effective allocation of production resources, while barone, a student of Pareto, proposed in the article "Production Department in Collective State" that if other conditions are the same, the effective allocation of resources can be independent of the ownership of production factors. Baron imagined that in the case of no money and no price, the equilibrium equation can be solved by trial and error, and the most favorable technical coefficient can be achieved economically with the minimum production cost and the maximum economic welfare, so that the price is equal to the minimum production cost, thus effectively allocating resources. [9] Their thoughts undoubtedly inspired Langer, enabling him to explore the important theoretical issue of resource allocation in the socialist economy more deeply and systematically. In the socialist economy envisioned by Langer, the public ownership of the means of production does not determine the system of distributing consumer goods and occupations, nor does it determine the principles guiding commodity production. Langer assumes that there is freedom of consumption choice and freedom of career choice in this economy, so there is a market for consumer goods and services, but there is no market for capital goods and production resources other than labor. Langer pointed out that the subjective equilibrium condition of socialist economy is: (1) consumers have the freedom of choice. Knowing the income and price of consumer goods determines the demand of consumer goods; (2) The production manager's decision is no longer guided by the goal of maximizing profits, but by the provisions of the Central Planning Bureau. The Central Planning Bureau has laid down the following rules for them, aiming at satisfying consumers' preferences in the best way. One rule is that the combination of factors that minimize the average production cost must be selected, and the second rule is that the output must be determined so that the marginal cost is equal to the product price to determine the production scale. Enterprise managers and industrial managers pay more attention to the long-term cost of the department and the decision of expanding and reducing the production capacity of the department. In order for them to abide by these rules, they must know the prices of factors and products. As far as consumer goods and services are concerned, it is determined by the market; In other cases, they are decided by the Central Planning Bureau. (3) There is freedom to choose a profession, and workers contribute their services to the industry or occupation with the highest salary. The objective equilibrium condition of socialist economy is that the price is known. Only when the price is known can we determine the combination of factors that minimize the average cost, the output that makes the marginal cost equal to the product price, and the optimal allocation of the final production resources. In socialist economy, the process of price determination is similar to competitive market. The Central Planning Bureau plays a market role, which stipulates the rules for selecting the combination of production factors and the production scale of factories, determining the output of an industry, allocating resources and using price as a parameter in accounting. Finally, the price is determined by trial and error. If supply exceeds demand, prices will rise; If the supply exceeds the demand, the price will fall. After repeated experiments, the equilibrium price is determined until the supply and demand of the means of production are equal in the market. Langer thinks that this is very similar to the price adjustment process in the market economy, and asserts that "it is very possible and feasible to replace the function of the market with a plan". [10] Langer is confident that the Central Planning Bureau has more knowledge of the economic system than any private entrepreneur, and through a series of continuous experiments shorter than the competitive market, the correct equilibrium price can be obtained. He expanded the trial-and-error method, thinking that it is also applicable to the socialist system where there is no freedom of consumption choice and freedom of career choice. Langer pointed out that the actual danger of socialism is the bureaucratization of economic life, not the inability to cope with the problem of resource allocation. The socialist economy with public ownership of the means of production can realize the rational allocation of resources, which is a different conclusion from Mises drawn by Langer in the debate. In a word, the core problem of Langer model is that the Central Planning Bureau uses trial and error method to simulate the market mechanism and determine the price of production materials, so as to balance supply and demand and realize the rational allocation of resources. If the argument between Mises and Langer has aroused great concern, Hayek's query on Langer's competitive solution has obviously been ignored. Then let's take a look at Hayek's criticism of Langer model after reprinting Mises' article after 1935. [1 1] Hayek asserted that there is no reason to expect that production will stop under the planned economy, the central government will face difficulties in using resources, and the output will be lower than that before the plan began. It should be expected that the output of places where the use of available resources is decided by the central authorities will be lower than that of other places where the market price mechanism operates automatically and the environment is similar. Hayek's criticism mainly focuses on the following three aspects: First, there are difficulties in information collection and processing under the central planned economy. Hayek believes that the guidance of central planning must be carefully guided to replace the personal role of industrial enterprise managers, and only by applying all knowledge to the calculation of central authority can appropriate decisions be made. It's just that the task of data collection has gone beyond human ability. Even if information is collected, specific decisions need to be made. Every decision must be made according to the solutions of several almost simultaneous differential equations, which can never be completed by known methods. It is impossible for the Central Planning Bureau to have all the information. Second, the central planned economy has incentive problems. Hayek pointed out that the problem is not whether the central authorities can reasonably decide production and distribution, but whether those individuals who are neither property owners nor have direct interests with the means of production under their jurisdiction can successfully take responsibility and make decisions. Langer's plan does not explain how to provide appropriate incentives to these individuals. Third, Langer's scheme is too attached to the static equilibrium theory and does not understand the real role of the price mechanism. To a certain extent, they all advocate relying on competition mechanism to determine relative prices, but they directly oppose the direct determination of prices by the market and advocate replacing the market with central authoritative pricing. The central government's method of determining prices is very inflexible. Hayek vividly compared the regulated price system and the market price system to the difference between two different offensive forces. The former is like every unit and soldier of an army. Only when they receive special orders can they act and act within the distance ordered by the headquarters. The latter is like every detachment and soldier of an army who can take advantage of every opportunity and act according to circumstances. In his view, it is not impossible in logic to imagine an omnipresent, omniscient and omnipotent economic command organization that can adjust every price in time, but it is very difficult in reality. The complexity of the market also makes Langer and others' method of determining prices by trial and error not applicable. The central economic authorities not only determine that prices are slow, but also limit themselves to pricing various commodities, which cannot reflect the price difference based on specific time, place and quality. This means that production managers have no motivation or even real possibility to make full use of various favorable opportunities, trading conditions and advantages given by local special circumstances. Since the price is determined by the authoritative organization, it excludes the power of cost minimization, that is, price competition. In Hayek's view, when it is not entrepreneurs but government officials who are really responsible for decision-making, it is at best a semi-competitive system. Hayek strongly refuted the view that the central planned economy can realize the rational allocation of resources. 1945 In September, he published an article entitled "Price System is a Mechanism for Using Knowledge" in the American Economic Review, which actually summarized his thoughts [12]. Hayek pointed out that if we want to understand the real function of the price system, we must regard it as a mechanism for transmitting information. When the price is relatively rigid, this function can't be played out. Central planners lack the necessary information, and the price and cost information needed for effective allocation of resources can only be obtained through the market process itself. Hayek proved that decentralized decision-making in which market forces determine prices makes better use of this information than central planning. Hayek's analysis shows that from the perspective of resource allocation, market economy is superior to central planned economy.

Studying in the United States 10 year

He returned to Poland on 1937. At that time, Rhodes, a private free Polish university representing the progressive forces, wanted to invite him as a lecturer in political economy, but it failed because of political resistance. Because there was no place in the Polish university, Langer accepted the invitation of American universities, giving lectures at the University of California and Stanford University from 65438 to 0938, and serving as an assistant professor of economics and statistics at the University of Chicago from 65438 to 0938. The following year he was promoted to associate professor. 1943 was hired as a professor by the university. He also teaches at Columbia University. The most important work during his stay in the United States was price elasticity and employment (1944).

During World War II, Langer often commented on economic policy. He believes that fascism is the main enemy and American monopoly capital is the potential or semi-open ally of fascism. Therefore, he advocated that monopoly capital must be restricted and democratic control over the economy must be established. 1944 Langer published Principles of Soviet Economy. During the Cold War, many American libraries stamped this book: "Please note: Langer is now a leader of the Polish parliament and highly sympathizes with capitalism."

Most of Langer's activities in the United States are related to the future of Poland. He and Polish-American labor leaders organized the Polish Labor Committee. He advocated the understanding and cooperation between Poland and the Soviet Union, supported the Prime Minister of the Polish government in exile in London at that time, General Wadysaw Eugeniusz Sikorski, but he opposed the anti-Soviet right-wing Polish politicians in the government in exile. After the relationship between the Soviet Union and the Polish government in exile broke down, Langer wrote an open letter to the New York Herald Tribune in September 1943, and put forward five principled opinions on the future of Poland. Its center is that Poland must establish a "democratic government, distribute land to farmers, eliminate feudal factors in this country and implement rural reform" after the war. In diplomacy, Langer advocated cooperation between Poland and the Soviet Union. He condemned the anti-Soviet policy of the Polish government in exile as unreasonable and reactionary. Most of these principles put forward by Langer are consistent with the ideas of the Polish Patriots Union and the Motherland Committee, which lead the underground forces of Poland's left wing. His political thoughts enabled him to participate in the creation of the Kosciuszko Alliance in the United States and support the Kosciuszko Division of the Polish Army established in the Soviet Union. 1944, at the invitation of the Polish army stationed in the Soviet Union, he visited various units of the Polish army and talked with representatives of Polish immigrants in the Soviet Union and representatives of the Motherland Committee who secretly crossed the front line to Moscow. He also discussed the future of Poland with Stalin.

1In the summer of 945, Langer returned to Poland. The Polish government immediately appointed him as ambassador to the United States and representative to the United Nations Security Council. His activities in the United Nations made him a famous international politician. He initiated a debate on Spain, demanding that UN member states sever diplomatic relations with Franco's government. Within the United Nations, he supports the policy of peace, universal disarmament, prohibition of nuclear weapons and large-scale economic cooperation among all countries regardless of social system. He declared his opposition to using economic pressure as a means to interfere in accepting internal affairs.

old age

1at the end of 947, Langer returned to Poland and participated in political life as party member, the Polish Socialist Party. He supported the merger of the workers' political parties. At 1947 Polish Socialist Party National Congress, he was elected as a member of the Central Committee. At the bipartisan meeting, he was elected as a member of the newly established Polish Central Committee of the United Workers' Party. Langer's political activities are mainly in Congress and the State Council. 1955 was elected to the State Council, and 1957 became the vice chairman. In Congress, he successively served as Chairman of Polish United Workers' Party, Chairman of Foreign Affairs Committee and Chairman of Planning, Budget and Finance Committee. He is one of the organizers of 1952 Moscow International Economic Conference. 1957 to 1959 as the chairman of the United Nations Economic Commission for Europe. 1961-1962. He is a member of the United Nations Expert Committee to Study the Economic and Social Consequences of Disarmament, and also wrote a booklet: Disarmament, Economic Growth and National Defense Cooperation (1962).

From 1949 to 1955, Langer mainly studied statistics and occasionally expressed his views on economic issues. From 65438 to 0950, he served as the chairman of the Central Cooperation Alliance, and expounded the role of the cooperative movement in building socialism. The contents of his lectures at the Central School of Planning and Statistics were compiled into Statistical Theory, which was published in 1952. Statistical estimation of parameters in Markov process is published in 1955. From 1950 to 1957, he also taught the history of economic thought in the Social Science Academy of the Central Committee of the Polish United Workers' Party.