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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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"When I think back at all the crap I learned in High School" Paul Simon
Note:
As far as I can tell:
Austrian economics is a derivative of the following principle:
“every individual will attempt to secure his own requirements as completely as possible to the exclusion of others.” Carl Menger (1840 -1921) Greed apology
The above principle, again as far as I know, leads to the creation of the Value Principle.
The Value Principle in my own words:
Price is a function of value. The price will be set according to how much a particular item of value will bring. In other words if the price is too high, then, the item will not sell. If the price is to low the item is sold too cheap.
Note: There is no mention of cost.
Equitable Commerce requires the recognition of, at least, two principles:
A. Individuality
B. Cost
Two Examples:
A. War
B. A device the turns water into fuel
What is the calculated price for War and what is the calculated price on a device that turns water into fuel?
Apply the Value Principle:
A. War
War is good for the economy. If the price is too high, then, War will not sell. If the price is too low, then, War is cheap.
B. The device that turns water into fuel
The device will compete with War as a better means by which the economy can thrive. If the price is too high, then, the device will not sell. If the price is too low, then, the device is cheap.
Apply the Cost Principle:
A. War
War is legalized murder - an oxy moron directed by morons. All costs are assumed by the individuals involved in the exchange. The cost is the price.
B. The device that turns water into fuel
How much does it cost? That is the price.
"Responsibility must be Individual, or there is no responsibility at all." Josiah Warren (1852)