Abstract
It is the aim of this essay to show the difficulties in Barry Smith&rsquos understanding of
Carl Menger&rsquos concept of essence and to clarify what essence means in Menger&rsquos
economics. In section 1, I delineate Smith&rsquos understanding of Menger&rsquos concept of
essence. In sections 2&ndash3, I show that Smith misunderstands Menger&rsquos concept of
essence and explain what Menger&rsquos concept of essence means. In section 4, I show
briefly that Menger&rsquos economics discussed in &ldquoUntersuchungen uber die Methode der
Sozialwissenschaften und der politischen Oekonomie insbesondere&rdquo should not be
considered to be a regional or categorical ontology of the economic reality. In section
5, I comment on the future study of these issues
