Value and Exchange

One of the prevailing myths today is the belief that AI can help to “automate” the economy. That is impossible, given that only humans can determine the value of something.

Economics is far more than what people see as “the economy.” It is the central organizing factor for civilized society.

Economics is far more than what people see as “the economy.” It is the central organizing factor for civilized society.

In 1871, the “discovery” of marginal economic analysis soon took a wrong turn, moving towards quantification, data, and mathematics. It is time to “rediscover” the margin, this time the margin as explained by Carl Menger.

In 1871, the “discovery” of marginal economic analysis soon took a wrong turn, moving towards quantification, data, and mathematics. It is time to “rediscover” the margin, this time the margin as explained by Carl Menger.

We are reminded time and again that prices emerge from subjective valuation, not objective criteria.

We are reminded time and again that prices emerge from subjective valuation, not objective criteria.

The notion that AI can take over an economy is fantasy. A market economy is not made up of competing algorithms but rather sets of prices that lead to discovery.

Can silver be called a Giffen Good? Probably not, although that fact doesn’t discourage some from looking for the equivalent of a unicorn in economic thinking.

Drawing on Man, Economy, and State, Dr. Jonathan Newman walks through Rothbard's theory of price formation and competition, showing that prices reflect subjective preferences, not seller greed, and that the only consumer-harming monopolies are those created by the state.