Subjectivism

Value is in the eye of the beholder, and hence voluntary trades are win-win activities.

The cost theory could not explain what actually forms spot prices on any given day. The Austrians had a better theory. This was an unambiguous advance in the science of economics, analogous to the superiority of Einsteinian relativity over Newtonian mechanics.

At $3 a pop, these little things seem like a rip-off. Yet consumers keep buying under the right conditions: mostly sports events for kids. What's more, competition isn't pushing the price down. Let us see how this all makes sense from an economic point of view.

Menger went on to accomplish a radical break with tradition: a thoroughly individualistic view of humanity and of the world, writes Eugen-Maria Sch

Recorded at the Mises Circle in Chicago, 9 April 2011.

Narrated by Paul Strikwerda.

Social justice actually refers to an intention to use force to acquire one’s desires.

The characters are rugged individuals — ingenious in their ability to fend for themselves, under all manner of adverse conditions — and asking for

Precisely because value is subjective, voluntary trades are win-win situations. At the same time, market prices are objective measures of wealth, and these allow for rational economic calculation.

It was the physiocrats who broke with centuries of sound economic reasoning and contributed to what would become, in the hands of Smith and Ricardo, a reactionary and obscurantist destruction of the correct analysis of value.