Value and Exchange

Jeff Deist pithily describes Taleb’s prose as “Rothbard meets Hayek.” But Taleb shares some ideas in common with Ludwig von Mises as well.

There is a growing drumbeat from some high-profile economists to reassure Americans that large increases in income and wealth taxes won’t distort labor markets. Yet much of their arguments are very misleading.

What makes a good a good is not the physical thing itself, but the value we find in it because it is serviceable toward some valued end.

In times of massive and frequent technological improvement, it would be sheer waste for manufacturers to dump resources into making products last past their usefulness.

When an elected official or government bureaucrat interferes with a valid, non-coerced exchange, they may appear to be helping one individual when they are actually harming a foundation of modern society; free exchange of goods and services.

Market prices reveal critical information about sellers, buyers, and market demand. But government interference in markets substitutes a fake version of reality that leads to impoverishment.

The free-market doctrine does not rest on an assumption that consumers make wise choices. Like the mythical “economic man,” the Perfectly Wise Individual is a straw man created by the critics of the theory.

True economic value begins in the minds of individuals, and only individuals can predict, plan, and act in the marketplace.

Recycling isn't free. It requires the use of time and resources, many of which end up wasted. But politicians keep insisting that recycling is always a win-win, even though we have many examples to the contrary.

People buy things that reflect their value systems — values learned in homes and other non-market institutions. Meanwhile, markets don't force anyone to buy anything.