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
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?
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
Because I will frequently return to the subject of value, and its measure, over the course of these blog posts I have decided to publish the text of the same article I posted May 16, 2016 (with some edits). If individuals provide the only sources of value, how do those individuals measure value? Does every … Continue reading Value Measure-Review
The source of value has huge significance in the development of economic 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
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
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
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?
People value securities based on the subjective preferences in the same way that value any economic good.