In a previous post (Brief Summary of Subjective Value), I introduced the topic of the Subjective Theory of Value. Because economic value consists of a crisscross matrix of concepts, you may find some repetition related to value theory in future posts. In the text below, I will define some important characteristics and qualifications of subjective value. … Continue reading Subjective-Value Theory Ver. 1.0

Source Some people believe that, since all economic goods require some amount of labor to produce, economic goods get their value from the labor required for their production. (even “free” goods require the labor to pick them up off the ground, pluck them off a bush, or capture them with one’s hands,) Formal explanations of … Continue reading Labor Theory of Value

Some people argue that money—or a monetary unit e.g. dollars, pounds, lira—acts as a measure of value. A money commodity cannot measure the value of economic goods because money commodities are also economic goods. To say that a dollar is worth a dollar becomes a statement of meaningless circularity. You cannot use the item being … Continue reading Money Not a Measure of Value

Source and Measure of Value For an economic system to operate, market participants must have a consistent and reliable measure of value. They must know the value in order to allocate resources effectively and efficiently. The need for a consistent measure of value holds true regardless of what economic theory you advocate. Although I don’t … Continue reading Conflicting Value Theories

Systems Thinking helps people understand more clearly the complexity of markets. You will probably hear me reference "systems thinking" when explaining free markets. I thought that this post would be a good way to introduce systems thinking and its relevance to economics and free markets. To start, I want to offer a concise definition of a … Continue reading Systems Thinking in Economics

I have a very demanding boss. He has required me to develop the workflow system for three publication channels: The Free Market Center Journal, Language and Logic on Substack, and The Free Market Center. He had me gather nearly 2,000 notes and draft documents to publish on these channels eventually. Now he expects me to … Continue reading The Publication Plan

The worth—or value—of any good is always unknown and unknowable. Consider this reality to trigger useful questions regarding market behavior. If you have followed my posts to this point, you realize this question—" What's It Worth?"—has only one answer: "The worth—or value—of any good is always unknown and unknowable." Even an individual cannot quantify the … Continue reading What’s It Worth?

People who care about financial markets have speculated about the effects of the Fed “raising” the Fed funds rate. Would it cause the stock market to decline? Would the economy return to recession? Would mortgage rates start to rise and kill the housing recovery? A person does not need a plethora of charts and graphs … Continue reading Who Cares About Fed Funds Rate

Those in favor of "minimum wage" laws usually have the best intensions. Because of the dependent nature of all wages, those laws cannot achieve their intended purpose. Instead of raising wages, they usually eliminate lower paying jobs from the market. Wages an dependent variable To understand the effects or implications of minimum wage, you must … Continue reading The Implications of The Minimum Wage

Previous Post: Time to Rethink Beginning of Series: Part I Learning Loops and Examining Assumptions History is littered with examples of people operating based on flawed assumptions. Fortunately, there is also a history of people challenging those assumptions. Operating using flawed assumptions over and over again can be referred to as single-loop learning. To challenge … Continue reading Questioning Assumptions about The Federal Reserve (Summary)