Old historical school provided the theoritical foundation on unification of German domestic market and building a nationstate, which underlied German industrial capitalism.
But since the birth of German empire, according to radically performed German...
Old historical school provided the theoritical foundation on unification of German domestic market and building a nationstate, which underlied German industrial capitalism.
But since the birth of German empire, according to radically performed German industrial capitalism, the then current difficulties leaded to rapid expansion in Marxism.
Therefore, to the problems like collapse of the middle class and poverty of laborer, old historical schools theories that were to proceed to industrialized country from a agricultural country could not make an alternative plan.
And coping to this situation, Young Historical school were molded.
The representative scholars were G.V.Schomoller, A.H.G.Wangner, L.Brentano and they were called "Socialist of chair."
The theories of this scholars are like this; Schmoller insisted that economics had a complexity which were subjective like ethics and law except technical and rational aspect.
Wagner's national socialism took the initiative in a social policy.
Brentano was more interested in policies than theories and advocated labour unionism to perform a gadual social reform.
Young historical school form a theoretical and mental support to German modernization and contributed social and labour problems contigent to German industrial revolution But since Bismark's dounfall and a dispute over a point of methodology, Young school lose their upholding.