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August Lösch (15 October 1906 – 30 May 1945) was a German
economist An economist is a professional and practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
, known for his seminal contributions to
regional science Regional science is a field of economics concerned with analytical approaches to problems that are related specifically to regional and international issues. Topics in regional science include, but are not limited to location theory or spatial eco ...
and
urban economics Urban economics is broadly the economic study of urban areas; as such, it involves using the tools of economics to analyze urban issues such as crime, education, public transit, housing, and local government finance. More specifically, it is a bra ...
. Born in Öhringen,
Württemberg Württemberg ( ; ) is a historical German territory roughly corresponding to the cultural and linguistic region of Swabia. The main town of the region is Stuttgart. Together with Baden and Province of Hohenzollern, Hohenzollern, two other histo ...
, Lösch obtained his
doctorate A doctorate (from Latin ''doctor'', meaning "teacher") or doctoral degree is a postgraduate academic degree awarded by universities and some other educational institutions, derived from the ancient formalism '' licentia docendi'' ("licence to teach ...
from the
University of Bonn The University of Bonn, officially the Rhenish Friedrich Wilhelm University of Bonn (), is a public research university in Bonn, North Rhine-Westphalia, Germany. It was founded in its present form as the () on 18 October 1818 by Frederick Willi ...
in 1932. His
magnum opus A masterpiece, , or ; ; ) is a creation that has been given much critical praise, especially one that is considered the greatest work of a person's career or a work of outstanding creativity, skill, profundity, or workmanship. Historically, ...
, ''Die räumliche Ordnung der Wirtschaft'' (The economics of location), appeared in 1940. Lösch was a member of the "Confessing Church" ( Bekennende Kirche), a Protestant group that spoke out openly against
Adolf Hitler Adolf Hitler (20 April 1889 – 30 April 1945) was an Austrian-born German politician who was the dictator of Nazi Germany from 1933 until Death of Adolf Hitler, his suicide in 1945. Adolf Hitler's rise to power, He rose to power as the lea ...
and was led by Martin Niemöller. He refused to emigrate and went into hiding to continue his anti-Nazi work, primarily in
Kiel Kiel ( ; ) is the capital and most populous city in the northern Germany, German state of Schleswig-Holstein. With a population of around 250,000, it is Germany's largest city on the Baltic Sea. It is located on the Kieler Förde inlet of the Ba ...
. Due to the deprivations of this illegal existence, he died, just days after
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
had ended, from
scarlet fever Scarlet fever, also known as scarlatina, is an infectious disease caused by ''Streptococcus pyogenes'', a Group A streptococcus (GAS). It most commonly affects children between five and 15 years of age. The signs and symptoms include a sore ...
in
Ratzeburg Ratzeburg (; Low German: ''Ratzborg'') is a town in Schleswig-Holstein, Germany. It is surrounded by Ratzeburger See, four lakes—the resulting isthmuses between the lakes form the access lanes to the town. Ratzeburg is the capital of the distri ...
.


Biography

Lösch was born in Öhringen,
Kingdom of Württemberg The Kingdom of Württemberg ( ) was a German state that existed from 1806 to 1918, located within the area that is now Baden-Württemberg. The kingdom was a continuation of the Electorate of Württemberg, which existed from 1803 to 1806. Geogr ...
,
German Empire The German Empire (),; ; World Book, Inc. ''The World Book dictionary, Volume 1''. World Book, Inc., 2003. p. 572. States that Deutsches Reich translates as "German Realm" and was a former official name of Germany. also referred to as Imperia ...
(now
Baden-Württemberg Baden-Württemberg ( ; ), commonly shortened to BW or BaWü, is a states of Germany, German state () in Southwest Germany, east of the Rhine, which forms the southern part of Germany's western border with France. With more than 11.07 million i ...
,
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
). From 1908, he lived in Heidenheim, where he graduated from high school in 1925 and subsequently worked as an apprentice. From 1927—1930, Lösch studied at the
University of Tübingen The University of Tübingen, officially the Eberhard Karl University of Tübingen (; ), is a public research university located in the city of Tübingen, Baden-Württemberg, Germany. The University of Tübingen is one of eleven German Excellenc ...
and at the
University of Freiburg The University of Freiburg (colloquially ), officially the Albert Ludwig University of Freiburg (), is a public university, public research university located in Freiburg im Breisgau, Baden-Württemberg, Germany. The university was founded in 1 ...
. Then from 1930 to 1931, he studied at the
University of Bonn The University of Bonn, officially the Rhenish Friedrich Wilhelm University of Bonn (), is a public research university in Bonn, North Rhine-Westphalia, Germany. It was founded in its present form as the () on 18 October 1818 by Frederick Willi ...
, where he was taught by
Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian political economist. He served briefly as Finance Minister of Austria in 1919. In 1932, he emigrated to the United States to become a professor at Harvard Unive ...
, Walter Eucken, and Arthur Spiethoff. He earned a degree in economics from the University of Freiburg in 1931, and then a doctorate one year later from the University of Bonn. Lösch studied demography and examined natural population growth in relation to its impact on labor supply and regional economic growth. This work then inspired Lösch to study the theory of production location. Lösch's work gained traction and global attention, earning him a Rockefeller scholarship. He visited the United States twice, in 1934 and 1936, where he studied the theories of the location of production and collected materials for his own research. Lösch then worked at the Kiel Institute for the World Economy as a senior researcher between 1939—1945. While at the institute in 1940, Lösch published “Spatial Organization of the Economy” which received interest from the scientific community. The institute was evacuated from
Kiel Kiel ( ; ) is the capital and most populous city in the northern Germany, German state of Schleswig-Holstein. With a population of around 250,000, it is Germany's largest city on the Baltic Sea. It is located on the Kieler Förde inlet of the Ba ...
to
Ratzeburg Ratzeburg (; Low German: ''Ratzborg'') is a town in Schleswig-Holstein, Germany. It is surrounded by Ratzeburger See, four lakes—the resulting isthmuses between the lakes form the access lanes to the town. Ratzeburg is the capital of the distri ...
in October 1944 due to wartime conditions. During wartime, Lösch’s health declined until he died of
scarlet fever Scarlet fever, also known as scarlatina, is an infectious disease caused by ''Streptococcus pyogenes'', a Group A streptococcus (GAS). It most commonly affects children between five and 15 years of age. The signs and symptoms include a sore ...
on May 30, 1945.


Personal life

Lösch has been described as a creative yet stubborn by those who knew him. Although Lösch was born in Öhringen, he spent the majority of his childhood and later life in
Heidenheim an der Brenz Heidenheim an der Brenz, or just Heidenheim (; Swabian language, Swabian: ''Hoidna'' or ''Hoirna''), is a town in Baden-Württemberg in southern Germany. It is located near the border with Bavaria, approximately 17 km south of Aalen and 33&n ...
, which is something he is very proud of, mentioning that Heidenheim is the one place he feels at "home". During his time abroad in the United States, he received several offers to reside in the US during World War Two, however, declined these offers, saying "What will be the fate of Germany, if all of us leave the country?". This refusal demonstrates his loyalty towards Germany and general stubbornness towards what he felt was right. After Lösch finished University, he moved to Kiel, Germany, to work as a part-time professor and researcher at Institut für Weltwirtschaft while his wife and family remained in Heidenheim.Batey, Peter W. J. Great Minds in Regional Science. Vol. 1, Springer, 2020. In regard to his political and religious stance, Lösch was a part of the " Confessing Church" known as " Bekennende Kirche", which was a Protestant group against
Nazi Germany Nazi Germany, officially known as the German Reich and later the Greater German Reich, was the German Reich, German state between 1933 and 1945, when Adolf Hitler and the Nazi Party controlled the country, transforming it into a Totalit ...
under the ruling of
Adolf Hitler Adolf Hitler (20 April 1889 – 30 April 1945) was an Austrian-born German politician who was the dictator of Nazi Germany from 1933 until Death of Adolf Hitler, his suicide in 1945. Adolf Hitler's rise to power, He rose to power as the lea ...
. Being a
Protestant Protestantism is a branch of Christianity that emphasizes Justification (theology), justification of sinners Sola fide, through faith alone, the teaching that Salvation in Christianity, salvation comes by unmerited Grace in Christianity, divin ...
who was openly in opposition towards Nazi Germany and Hitler put Lösch in a situation where he had to choose between his moral integrity during a grave period of political oppression with the amplifying demand for independent and critical thinking regarding relevant societal, political, and spatial issues.Nijkamp, Peter. “August Lösch (1906–1945): Moral Sentiments, Scholarly Rigor.” SpringerLink, Springer, Cham, 1 Jan. 1970, link.springer.com/chapter/10.1007/978-3-030-46157-7_6. When World War Two began, he resisted to emigrate, leaving him with the only choice: to go into hiding in
Ratzeburg Ratzeburg (; Low German: ''Ratzborg'') is a town in Schleswig-Holstein, Germany. It is surrounded by Ratzeburger See, four lakes—the resulting isthmuses between the lakes form the access lanes to the town. Ratzeburg is the capital of the distri ...
, to continue his research anti-nazi work. When the war ended, Germany was left destroyed, which made it impossible for him to return home to his wife and family in Heidenheim. Since he was unable to return home, he remained in the poor living conditions in Ratzeburg where he continued his economic research. Unfortunately, the end of his life was devastating; due to his impoverished state and weak health, he caught the
scarlet fever Scarlet fever, also known as scarlatina, is an infectious disease caused by ''Streptococcus pyogenes'', a Group A streptococcus (GAS). It most commonly affects children between five and 15 years of age. The signs and symptoms include a sore ...
infection and passed away shortly after without any of his loved ones or friends by his side. His personal life indeed shows his undying motivation, creativity, passion and loyalty towards his promise to further scientific discoveries and fundamental theory. Regrettably, Lösch was never granted the recognition he deserved for his research because of his resistance against Nazi Germany, however, his work has helped with preceding economic research.


Contributions to regional and urban economics

August Lösch is recognized as an early innovator in the subject of the New Economic Geography, known for his great contributions to regional and
urban economics Urban economics is broadly the economic study of urban areas; as such, it involves using the tools of economics to analyze urban issues such as crime, education, public transit, housing, and local government finance. More specifically, it is a bra ...
, as well as his influence to expand
regional economics Regional economics is a sub-discipline of economics and is often regarded as one of the fields of the social sciences. It addresses the economic aspect of the regional problems that are spatially analyzable so that theoretical or policy implicatio ...
. Lösch's early research was primarily focused on
international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (See: World economy.) In most countries, such trade represents a significan ...
and population economics, which guided him to his important contributions in
regional development Regional development refers to a broad category of policies aimed at reducing regional disparities within an economy or across economies by devoting resources to underdeveloped areas. Regional development can be national or international in natur ...
and on the location theory, rewriting these economic concepts from
spatial perspective
His works built upon and extended the work of contemporary German geographer Walter Christaller. Lösch's scientific writings focused on issues of the economic consequences of
population decline Population decline, also known as depopulation, is a reduction in a human population size. Throughout history, Earth's total world population, human population has estimates of historical world population, continued to grow but projections sugg ...
, the impact of
population dynamics Population dynamics is the type of mathematics used to model and study the size and age composition of populations as dynamical systems. Population dynamics is a branch of mathematical biology, and uses mathematical techniques such as differenti ...
on
business cycles Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for the welfare of the general population, governmen ...
and
capital markets A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers t ...
an
economics of aging
At the start of the 1930s, Lösch began his research in economic trade, more specifically,
comparative advantage Comparative advantage in an economic model is the advantage over others in producing a particular Goods (economics), good. A good can be produced at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior t ...

tariff barriers
in trade, the relationship between
demography Demography () is the statistical study of human populations: their size, composition (e.g., ethnic group, age), and how they change through the interplay of fertility (births), mortality (deaths), and migration. Demographic analysis examine ...
and trade, the role of different taxation systems and monetary policy, as well as cross-border shipping. Soon after, he began his research in location theory and regional development and had his first publication discussing location theory in 1939 in an article called 'The Nature of Economic Regions'. Lösch's his research and findings o
economic spatial interactions
and structure were very significant, as he was the initial person to illustrate a full general equilibrium system explaining the interrelationship of all locations which was shown in his theory of economic regions. Furthermore, Lösch is also known for the way in which he studied economic spatial interactions and structures, as he typically began with abstract theoretical paradigms on regions and spatial-economic behavior rather than evidence-based formations, as previous economists had used.“." Encyclopedia of Population. . Encyclopedia.com. 16 Oct. 2020 .” Encyclopedia.com, Encyclopedia.com, 6 Dec. 2020, www.encyclopedia.com/social-sciences/encyclopedias-almanacs-transcripts-and-maps/losch-august. Overall, Lösch made a plenitude of significant findings in the world of economics, but his main contributions were to regional economics, specifically, pioneering the location theory, spatial equilibrium analysis and hierarchical spatial systems displaying a hexagonal pattern.


References


Bibliography

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External links

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august-loesch.org
– August Lösch Online-Archive {{DEFAULTSORT:Losch, August 1906 births 1945 deaths People from Öhringen People from the Kingdom of Württemberg 20th-century German economists Regional economists University of Bonn alumni Academic staff of the University of Kiel Infectious disease deaths in Germany Deaths from streptococcus infection Urban geographers