I can't believe how much time humans waste obsessing about subjective value that there is even more than even 4 minutes of dialogue and science to this subject. It really proves what a scam supply and demand can be. Even though preying on the need of other peoples' sense of belonging is rather despicable in a sense, I really cannot say much good about those in the consumption seat either(regardless of shirt preference).
Does this mean that we could throw out the gold standard and just use paper money instead? As long as people value the dollar because they know other people would accept it, why would we need to back it up with gold if the only thing that makes gold precious is because of perception?
@krakatoa0mikel People tend to perceive money as more worth if it's guaranteed with something. Paper money not backed by anything is only used because you have to pay taxes in it and establishing competing currencies is illegal.
You confuse exchange value with subjective value, consider an auction where both the purchasing power and the personal value of an object plays a role in the final price. Someone could desire an object more but not have enough money to spare. Both you and the marxists are incorrect, you should probably delete this video and make a new one.
@zilbiol Yes, but if you're buying something to sell it later, the value you will get from selling it is only derived from the seller who will buy it from you, from his/her subjective value, and likewise your subjective value when you buy the thing to sell it later is dependent on how much you think you can get for selling it later.
@N7a7v7i In this case the price you can sell it for is influenced by other people's purchasing power as well as the subjective value they place on it, just in the marketplace and with the price mechanism instead of the auction mechanism. Marxists think in terms of ideology, they don't look at what problems capitalism solves, they just compare it with their imaginary utopia, if you let them drag you to their level of debate you only perpetuate this mentality.
Can value be created from advertising? Like how a celebrity would wear an item such as a snap back hat. Would that then make people value that product higher?
I recall in the sixties hearing that in Communist Russia the govt would produce stuff and then try to tell the populace that they should "like" it. It didn't work. People can't be forced to value things just because the govt makes a lot of them. Communism/Socialism just doesn't work no matter how much some people like it.
I remember like 15 years ago when my brother taught me this with pokemon cards. A Charizard may be just as expensive to create then a Machamp, but if I want the Charizard more, and if everyone else wants it more, and are willing to pay more for it, then it's worth more.
@Downfurlife Suppose I was dying from a disease, but a certain pill could save my life. Regardless of propaganda, that pill would be very valuable to me. What if I was not dying from a disease? The pill is not as valuable to me, regardless of the amount of 'propaganda' there was for it. Value is created because of desire, and propagada can't create value. Advertisement is to make people aware of the existence of goods.
The value over human life and the value of profit.... I guess if you are a multibillionaire or help run a corporation the value of human life just is not their.
I kind of have a gripe with this analysis. I think the real value of the item is not subjective - it's determined by the free market. List both t-shirts in a widely viewed auction (say, on eBay) and see which one sells for more.
I learned in an economics class when I was in college, that the consumer sets the price, not the business. "What are you talking about? Gas is $4/gal!" Yeah, but if everyone rode bikes & sold their cars, (not an environment guy but hypothetically), the people who sell the gas are going to have trouble financially if no one is buying gas anymore because of the price, so they will lower it if they can't sell enough gas. BTW...Using Friedman shirt as a Superman shirt, FTW!!!! LOL!
Great video - however, it seems odd that Milton Friedman, as a monetarist, should be used as tongue-in-cheek foil to Che in a discussion on subjective value. It seems to me that the monetarist position also betrays a significant lack of understanding of the importance of subjective value. Monetary manipulation, and its consequent distorting effects on the nexus of prices in the economy, ignores the importance of the price system in allocating resources according to subjective preferences.
He broke a complex subject down very well and in a very understandable manner.
However, he said 'subjective value' wasn't understood until the mid 1900's. I think Locke understood in the 17th century. If I Remember Correctly; "a peach has no value until it is picked" or there is no value in nature to man until man acts. In my mind it also means that since the value isn't intrinsic it is subject to the person.
@davekeays That quote by Locke says to me that he also didn't quite get subjective value - to say that a peach has no value until it is picked has the relationship wrong-way-round - the peach is picked BECAUSE it has the ability to satisfy a want or need of the picker, i.e. it is picked because it has value (or can be traded for something else the picker values more.) To say that the picking of the peach is what gives it value is essentially adhering to the labor theory of value.
@gergenheimer The way I read it was similar to your statement of subjective value as opposed to objective value. Until the peach can be consumed/used by man, it has no more value to man than a leaf on the tree.
There are many holes in his logic as any simple one-line quote would have. Couldn't a peach that falls from the tree be just a valuable? What is the pickers motivation? What if the tree is of more value because of the existence of the peach?
@davekeays i think you and gergenheimer said it well. Also, by claiming that all value is subjective you negate necessity of life and place all emphasis on subjective relations. This has many negative unintended consequences which Don talks about in an other video.
@Heretic696 lol I'm almost tempted to agree with you but just because such a person has low genetic "value" in our eyes doesn't mean that someone else wouldn't place "value" on breeding with them.
Very much enjoyed this video, Don. In my quest to find my own Friedman iron-on, I found a shirt @ Zazzle-dot-com with a classic quote from Milton that I had not heard before. It reads: "If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand."
I want a milton friedman t-shirt
branhoff 2 weeks ago
hey bro are you selling those Milton Friedmen shirts? those are BA I want one
benxr2006 3 weeks ago
I can't believe how much time humans waste obsessing about subjective value that there is even more than even 4 minutes of dialogue and science to this subject. It really proves what a scam supply and demand can be. Even though preying on the need of other peoples' sense of belonging is rather despicable in a sense, I really cannot say much good about those in the consumption seat either(regardless of shirt preference).
hybridmcgee 3 weeks ago
Does this mean that we could throw out the gold standard and just use paper money instead? As long as people value the dollar because they know other people would accept it, why would we need to back it up with gold if the only thing that makes gold precious is because of perception?
krakatoa0mikel 2 months ago
@krakatoa0mikel People tend to perceive money as more worth if it's guaranteed with something. Paper money not backed by anything is only used because you have to pay taxes in it and establishing competing currencies is illegal.
N7a7v7i 1 month ago
@N7a7v7i Thank you for clearing that up.
krakatoa0mikel 1 month ago
You confuse exchange value with subjective value, consider an auction where both the purchasing power and the personal value of an object plays a role in the final price. Someone could desire an object more but not have enough money to spare. Both you and the marxists are incorrect, you should probably delete this video and make a new one.
zilbiol 3 months ago
@zilbiol Yes, but if you're buying something to sell it later, the value you will get from selling it is only derived from the seller who will buy it from you, from his/her subjective value, and likewise your subjective value when you buy the thing to sell it later is dependent on how much you think you can get for selling it later.
N7a7v7i 1 month ago
@N7a7v7i In this case the price you can sell it for is influenced by other people's purchasing power as well as the subjective value they place on it, just in the marketplace and with the price mechanism instead of the auction mechanism. Marxists think in terms of ideology, they don't look at what problems capitalism solves, they just compare it with their imaginary utopia, if you let them drag you to their level of debate you only perpetuate this mentality.
zilbiol 1 month ago
little do people know how much of a racist, homosexual-hating murderer that Che was.
BeyondLame 3 months ago
Can value be created from advertising? Like how a celebrity would wear an item such as a snap back hat. Would that then make people value that product higher?
Fredfiness 3 months ago
@Fredfiness I'm no expert but yes, I think so.
crazypants88 1 month ago
I really want to buy that exact t-shirt, could somebody please tell me where I can buy it? Thank you in advance.
landwalker88 4 months ago
I took his class last year.
mgibbs88 4 months ago
I found this video because i wanted a Milton Friedman t-shirt. You learn something everyday
MrAfroNick 4 months ago
I recall in the sixties hearing that in Communist Russia the govt would produce stuff and then try to tell the populace that they should "like" it. It didn't work. People can't be forced to value things just because the govt makes a lot of them. Communism/Socialism just doesn't work no matter how much some people like it.
SmokeRingsPipeDreams 4 months ago in playlist More videos from LearnLiberty
They should do a video on sociology vs. economics. That would be hilarious.
classiclibertarian 5 months ago
Superman!
AlecTaylor6 5 months ago
Not just the existence. ;o)
Avnatanyel 6 months ago
I remember like 15 years ago when my brother taught me this with pokemon cards. A Charizard may be just as expensive to create then a Machamp, but if I want the Charizard more, and if everyone else wants it more, and are willing to pay more for it, then it's worth more.
thekkl 7 months ago 16
@thekkl When I was in primary school,we used Pokemon cards as currency.Some guys even started making fake ones.
olhsaoagpaigfbp 3 weeks ago
Boudreaux ! We almost have the same family name! I wonder if your from Louisiana because its a french name.
Loved the video, concise and clear!
RicoBoudreau 7 months ago
Value is created through marketing, propaganda, lies, talk points or rhetoric. People buy what they want, not what they need.
Any good sales person adds value. The problem is when we value profit more than helping others.
Downfurlife 7 months ago
@Downfurlife Suppose I was dying from a disease, but a certain pill could save my life. Regardless of propaganda, that pill would be very valuable to me. What if I was not dying from a disease? The pill is not as valuable to me, regardless of the amount of 'propaganda' there was for it. Value is created because of desire, and propagada can't create value. Advertisement is to make people aware of the existence of goods.
bdg323 6 months ago
The value over human life and the value of profit.... I guess if you are a multibillionaire or help run a corporation the value of human life just is not their.
The superman cut was awesome though.
Downfurlife 7 months ago
I kind of have a gripe with this analysis. I think the real value of the item is not subjective - it's determined by the free market. List both t-shirts in a widely viewed auction (say, on eBay) and see which one sells for more.
IvanAndreevich 7 months ago
Sigh, that's my professor. He's not going to hear the end of that superman/friedman scene
GoingGoingGalt 7 months ago
@GoingGoingGalt What school is he a professor at?
rmeyerson2 7 months ago
@rmeyerson2 George Mason University
GoingGoingGalt 7 months ago
I learned in an economics class when I was in college, that the consumer sets the price, not the business. "What are you talking about? Gas is $4/gal!" Yeah, but if everyone rode bikes & sold their cars, (not an environment guy but hypothetically), the people who sell the gas are going to have trouble financially if no one is buying gas anymore because of the price, so they will lower it if they can't sell enough gas. BTW...Using Friedman shirt as a Superman shirt, FTW!!!! LOL!
MrConservative608 7 months ago
Great video - however, it seems odd that Milton Friedman, as a monetarist, should be used as tongue-in-cheek foil to Che in a discussion on subjective value. It seems to me that the monetarist position also betrays a significant lack of understanding of the importance of subjective value. Monetary manipulation, and its consequent distorting effects on the nexus of prices in the economy, ignores the importance of the price system in allocating resources according to subjective preferences.
gergenheimer 7 months ago
what do you guys think about nutjobs like Barry Schwartz saying "choice is paralyzing"?
JudgeNapolitanoFTW 8 months ago
He broke a complex subject down very well and in a very understandable manner.
However, he said 'subjective value' wasn't understood until the mid 1900's. I think Locke understood in the 17th century. If I Remember Correctly; "a peach has no value until it is picked" or there is no value in nature to man until man acts. In my mind it also means that since the value isn't intrinsic it is subject to the person.
davekeays 8 months ago
@davekeays That quote by Locke says to me that he also didn't quite get subjective value - to say that a peach has no value until it is picked has the relationship wrong-way-round - the peach is picked BECAUSE it has the ability to satisfy a want or need of the picker, i.e. it is picked because it has value (or can be traded for something else the picker values more.) To say that the picking of the peach is what gives it value is essentially adhering to the labor theory of value.
gergenheimer 7 months ago
@gergenheimer The way I read it was similar to your statement of subjective value as opposed to objective value. Until the peach can be consumed/used by man, it has no more value to man than a leaf on the tree.
There are many holes in his logic as any simple one-line quote would have. Couldn't a peach that falls from the tree be just a valuable? What is the pickers motivation? What if the tree is of more value because of the existence of the peach?
davekeays 7 months ago
@davekeays i think you and gergenheimer said it well. Also, by claiming that all value is subjective you negate necessity of life and place all emphasis on subjective relations. This has many negative unintended consequences which Don talks about in an other video.
MeMyselfAndWhoKnowz 7 months ago
Excellent. I wonder if anyone - after watching this video - will still not get it. If such a person exists, he should be prevented from breeding.
Heretic696 8 months ago
@Heretic696 lol I'm almost tempted to agree with you but just because such a person has low genetic "value" in our eyes doesn't mean that someone else wouldn't place "value" on breeding with them.
garethhenry1981 8 months ago
@Heretic696 might wanna reconsider comments like that. That's about a sentence away from supporting eugenics.
boristhepython 7 months ago
Very much enjoyed this video, Don. In my quest to find my own Friedman iron-on, I found a shirt @ Zazzle-dot-com with a classic quote from Milton that I had not heard before. It reads: "If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand."
LowcountryJoe2 8 months ago 14