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Economics Essay

The “Order” of Goods: Not Useless?

I read Menger’s Principles of Economics a few months ago, and I’m currently re-reading Mises’s Human Action, and I’ve noticed both of them introduce the concept of the “order” of goods, that is, the number of production steps a good is from consumption.

For example, if the path to making bread is: seed -> wheat -> flour -> bread, then flour is a second-order good, wheat is a third-order good, etc.

Both Menger and Mises introduce this concept, but both dismiss it as effectively meaningless. Their reason, I suppose, is that in complicated production pathways, one good might be fourth-order in one pathway, and fifth-order in another.

But I think they might have missed something–something where understanding the order of goods allows us to make a clear example of the usefulness of a medium of exchange or money.

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Economics Essay Political Video Link

Retreat Into Metaphor: A “New” Fallacy?

(Also available on Bitchute.)

There is a tendency for thinkers to use metaphor and allegory to reframe a problem or issue in a way that clarifies or simplifies it. The problem with metaphor and allegory is that they necessarily change or obscure details. Therefore, the solutions you propose from looking at a metaphor might be way off.

Even worse, the retreat into metaphor can be so deep that no concrete solutions even appear, and you end up with long periods of idle musing.

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Economics Political Video Link

Effective Altruism Isn’t

The idea of “effective altruism” is that you do the most good by making as much money as possible, and then living frugally and using the rest of that money for charity.

Of course, nowadays, with the state having the stranglehold on the economy that it does, it turns out that the easiest way to make a bunch of money is to have a bunch of government connections that will help you win a contract or two. Actual entrepreneurship is hard.

Then, it gets worse! The fact you’ve spent so much time hanging around politicians and bureaucrats warps your sense of charity. Instead of serving the people, you serve the state.

More in the video above, also available on Bitchute.

Categories
Book Review Economics Political Video Link

A Little More on the Road to Wigan Pier…

After reading a few reactions to my review of George Orwell’s Road to Wigan Pier, it looked like I was a little bit unclear about Orwell’s position on socialism. I’m aware that he never denounced socialism as an ideology. However, the issue that becomes painfully clear when reading Wigan Pier is that he really had no clear idea of what socialism was or what it meant. With that in mind, I thought I’d make a quick video explaining this point a bit more clearly, so I hope this helps.

You can read my review here.

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Economics Essay Political

All the World’s a Doom Loop…

…and all the men and women merely Doomers.

But seriously, I recently read a little piece over at Of Two Minds and Mr. Smith spends a lot of time defining Doom Loops, but not really explaining how we should be reacting to them. So, I figured I’d contribute a little analysis, and maybe some advice.

Categories
Economics Political

The Real Issue with Passive Investments

A recent article at the Mises Institute got me thinking about the concept of “passive investments.” The article was written by Daniel Moule, and is called “Taxing Capital Leads to Capital Consumption.” Setting aside the general argument Moule is trying to make, I find his concept of “passive investment” to be a possible source of confusion.

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Economics Political Satire

It’s Officially Time to Worry

Paul “the Internet is not a big deal” Krugman has stated that it’s paranoid to worry about Central Bank Digital Currencies. See the article at this link.

Considering his track record, did he not realize that his statement makes it more likely that concern is justified?

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Economics Essay Philosophy Political Video Link

The Macro Trick: Conflation as Obfuscation

A bunch of topics all together this time. What is the Macro Trick? It’s the combination of things that are fundamentally different under one name. It’s a tool that many tyrants and would-be tyrants use to take control of politics, economics, and culture.

It feeds the demand for administrators, technocrats, and other “experts.” In this video, I have a breakdown of some egregious examples of this trick, as well as what we can do to fight it.

Also available on Bitchute.

Categories
Economics

A Quick Thought on Value Scales

The concept of exchange value versus use value has kind of gone away in modern economic analysis, probably for good reason. At first glance, it seems fairly odd to separate goods that give you direct value from those that give you value indirectly.

The concept also doesn’t mesh well with a modern Austrian “value-scale” analysis, as seen in this article by Bob Murphy. Where a good fits on your value scale is determined by what need it serves, regardless of what exactly you intend to do with it.

Yet the concept is still present in Menger’s Principles of Economics, which I’m reading right now.

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Economics Essay Video Link

What Makes Good Money? A Misesian Perspective (Video)

A video version of part 1 (of 3) of my short essay series on money.

For the text version with links and citations, visit here.