Tag: subjective theory of value
Legends of Liberty: Carl Menger
December 20, 2021 | Post
Here’s a brainbuster for you: The product on the left will help keep you alive for 6-8 weeks. It costs $4.49. The other is nothing more than pretty to look at. It costs $161. Why? This paradox — the water-diamond paradox — troubled some of the world’s greatest minds. Plato wondered about it; Copernicus and […]
We're Still Haunted By the Labor Theory of Value
February 26, 2016 | Post
This post by Professor Steve Horwtiz originally appeared on the Foundation for Economic Education’s blog back in November of 2015. The following are excerpts. What Menger and others argued was that value is subjective. That is, the value of a good is not determined by the physical inputs, including labor, that helped to create it. […]
Value is Subjective: The Copernican Revolution in Economics
November 25, 2015 | Post
What makes something valuable? Today, we know that value is in the eye of the beholder—that is, value is subjective. But for many years, people subscribed to the theory that the value of goods came from the amount of work that went into creating them: the “labor theory of value”. Professor Steven Horwitz explains it […]