Carl Menger

Thus flour to be made into cake, when already in the house of the consumer, is treated by some as a consumer's good, while not only the flour but the cake itself is treated as a producer's good when in the hand of the confectioner.

Carl Menger.

Volkswisschaffler, Chapter 1, Section 2, says bread belongs to the first order, flour to the second, a flour mill to the third order, and so on.

It appears that if a railway train carries people on a pleasure excursion, also some tins of biscuits, and milling machinery, and some machinery that is used for making milling machinery, then the train is at once and the same time a good of the first, second, third, and fourth orders.

It's not a bunch of bad guys that one day said, "Oh, let's just create a state so we can rob everyone." The state is something that, like language- Language is something that human beings obviously invented, but we didn't design.

That's a very key insight from, like, Carl Menger, that things like money, trade, the division of labor, profit and loss calculation, interest rates, the finance and banking industry, and how all of these things come together to create what Carl Menger and Herbert Spencer called the social organism.

Those things are like language.

They're the result of human people acting.

Great.

Right.

It, it's not from Austria, right, but a lot of the main thinkers, Carl Menger, the, the founder, you know, he was from around there.

Ludwig von Mises, Friedrich Hayek.

The state is something that like language, language is something that human beings obviously invented, but we didn't design.

That's a very key insight from like Carl Menger, that things like money, trade, the division of labor, profit and loss calculation, interest rates, the finance and banking industry, and how all of these things come together to create what Carl Menger and Herbert Spencer called the social organism.

Those things are like language.

They're the result of human people acting, but all the benefits that we get from all of these things that create modernity, they were not designed by people.

That's basically...

What Mises and Rothbard and Menger and all of those guys, what they did to clarify economics based on Mises' idea of praxeology, that's what's going on here, applying praxeology to psychology.

And, you know, that's why it blew my mind when I read the Austrians and it blew my mind when I started thinking about this.

Yeah, Mises

It just feels urgent because you're living through it right now.

Back in the 1870s, an economist named Carl Menger tore apart the old idea that value comes from the labor or materials that go into making something.

He showed that value is subjective.

Something is worth what it's worth because it satisfies a human want relative to how scarce it is.

Now, what is great for Bitcoin i- is that it's the only asset that's actually traded in Final settlement, 24/7, 365.

So its price discovery is very much related to the market activity of the people that are trading it.

Now, Menger's intellectual descendant, named Ludwig von Mises, took that idea further and applied it directly to money.

Money's value is subjective, too, and when the supply of it changes, that value shifts, and the people closest to where new money enters the system benefit before everyone else feels the effect.

The first is the modern lineage of Enlightenment criticism, which required political power to justify itself before reason.

The second is an older realist tradition, running from Aristotle and Thomas Aquinas through the school of Salamanca, Richard Cantillon, Carl Menger, Eugen von Böhm-Bawerk, Ludwig von Mises, and Murray Rothbard.

These thinkers did not form a single school, nor did they agree on every question.

What connects them is a shared orientation.

while farmers committed themselves to fixed rents without knowing what their output would command.

Profit, loss, and bankruptcy therefore arose from judgment under changing conditions of demand, competition, weather, and consumer preference.

Karl Menger marked a decisive transition within the Austrian tradition.

Much of British classical economics, especially in the Ricardian tradition, explained long-run exchange value primarily through labor and production costs.

It is, in fact, an evil idea that has come into the world.

To recognize this, one should recall the works of the economist Carl Menger.

As early as 1871, he pointed out that money has arisen spontaneously from the voluntary transactions of people in a free market, specifically from a commodity, above all from gold and silver, that money, therefore, had come into the world in a natural, voluntary way.

Of course, commodity money was not perfect, it had its problems.

Thus flour to be made into cake, when already in the house of the consumer, is treated by some as a consumer's good, while not only the flour but the cake itself is treated as a producer's good when in the hand of the confectioner.

Carl Menger, Volkswisschaffler, Chapter 1, Section 2, says bread belongs to the first order, flour to the second, a flour mill to the third order, and so on.

It appears that if a railway train carries people on a pleasure excursion, also some tins of biscuits, and milling machinery, and some machinery that is used for making milling machinery, then the train is at once and the same time a good of the first, second, third, and fourth orders.

End footnote.