Principles of Economics by Carl Menger Chapter 3.2D - The Subjective Nature of the Measure of Value

You want to read the book? Get it here: https://amzn.to/4cCPIQs

Watch the next video in this series: https://rumble.com/v6t7yyj-principles-of-economics-by-carl-menger-chapter-3.3a-what-causes-the-value-o.html

Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c

Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html

Does hard work make something valuable? Not in the world of Austrian Economics. In this video, we break down one of Carl Menger’s most important lessons from Principles of Economics—that value is always subjective, and labor does not create value.
We often think that the more effort someone puts into making something, the more valuable it must be. But that’s not how value works. Menger shows that value comes from how important a good is to satisfying a person’s specific need, not from how much labor or how many materials went into making it. That’s why a diamond found by accident can be just as valuable as one mined through months of hard labor—and why something made with great effort can be worthless if no one needs it.
This video explores the difference between production cost and personal value, and why subjective perception rules economic decisions. You’ll also see how people often misjudge their own needs, sometimes placing short-term pleasure above long-term well-being. These errors affect how we value goods—not because the goods changed, but because our perception of their importance shifts.
If you've ever wondered why rare art can be priceless while a hard day's labor may produce nothing of value, this lesson is for you. Learn why value is never in the thing—it’s in what it means to you.

❓ Questions Answered in This Video
-Why is value subjective and not objective?
-Does hard work increase the value of a good?
-Why do some expensive-to-make goods have no value?
-What really determines the value of a good?
-Is the labor theory of value wrong?
-How can people make mistakes in valuing goods?
-What role does personal judgment play in economic decisions?
-Why can the same item have different values for different people?
-How does perceived need affect value?
-Are reproducibility and production cost reliable measures of value?

00:00 - Introduction to the Subjective Nature of the Measure of Value
00:16 - Subjective Value Explained
01:02 - Labor and Value
01:48 - Reproduction and Value
02:20 - Reproducibility and Needs
03:03 - Errors in Judgement - Why is the Labor Theory of Value Wrong?
03:35 - Human Understanding
04:00 - Conclusion
04:36 - Outro

#SubjectiveValue #CarlMenger #AustrianEconomics