Socialism Would Pay Full Value

Socialists want full pay for their work. Would they delay that payment until completion of production? Would they agree to cover any losses after the sale of the product? I recently view a video in which a student, who proudly identified himself as a socialist, confronted the speaker with the question: Why don’t workers receive … Continue reading Socialism Would Pay Full Value

What’s It Worth?

The worth—or value—of any good is always unknown and unknowable. Use the consideration of 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 … Continue reading What’s It Worth?

Relationship of Value to Price

Value and price have a very close and important relationship. Value exists entirely in the subjective realm, whereas price provides objective evidence of an economic transaction. The price results from action taken based on value. It does not, as many people believe, provide a measure of value. Value As I have laid out in previous … Continue reading Relationship of Value to Price

Subjective-Value Theory

In a previous post I introduced the topic of Subjective Value. I used an anecdote to demonstrate how an individual in the process of shopping decides about value. In the text below I will define some of the important characteristics and qualifications of subjective value. Because economic value consists of a crisscross matrix of concepts, … Continue reading Subjective-Value Theory

Conflicting Value Theories

Since the beginning of economics as a specialized study, economist have realized that the concept of value lies at the core of economic theory. They have developed several value theories over the years but most of those theories have suffered from fatal flaws. The only theory that holds up to logical scrutiny is the Subjective … Continue reading Conflicting Value Theories

A Return to Value Theory

After a prolonged hiatus, I want to return to my discussion of value theory. A workable theory for value plays such a fundamental part in economic theory, regardless of the school of thought, that it cannot be overemphasized. Because The Free Market Center Journal advocates the validity of the Subjective Theory of Value, which many … Continue reading A Return to Value Theory

Who Really Determines Wages?

Many people have the impression that business owners unilaterally determine wages and prices. They believe that consumers have little control in the process of setting either prices or wages. People who believe this are gravely mistaken about how the price discovery process actually works. Prices are ultimately determined by what consumers willingly pay. In any … Continue reading Who Really Determines Wages?