Subjectivism

Presented at the Mises Institute's "First Annual Advanced Instructional Conference in Austrian Economics" at Stanford University.

Here are six common myths often heard about libertarianism.

Presented at Mises University 2019.

Presented at Mises University 2019.

Anti-capitalists love to claim that consumers don't really have free choice — that advertisers and peers really dictate to others what they should buy. In truth, consumers choose freely, but use others to filter information and simplify the process.

The concept of economic cost seems to confuse people. It is not the price you pay for a good, but the reason you pay it.

Prices are set by how much people value goods and services. And people value things based on what they think will improve their life and well-being. 

What does it mean for two goods to be the "same good"? Wysocki and Block argue that Austrian subjectivism leads to the possibility of perfect economic homogeneity or heterogeneity.

Valuation of businesses must be based on appraisement, investment appraisal, and—terra incognita in Austrian economics—negotiation. Discounted cash flow and "relative valuation" methods are well-suited for negotiation purposes.

All human action stems from the value judgments of individuals. Economics, properly understood, was never so foolish as to believe that all that people are after is higher incomes and lower prices.