The basis of modern economics is the cognition that it is precisely the disparity in the value attached to the objects exchanged that results in their being exchanged. People buy and sell only because they appraise the things given up less than those received. Thus the notion of a measurement of value is vain. An act of exchange is neither preceded nor accompanied by any process which could be called a measuring of value. An individual may attach the same value to two things; but then no exchange can result.
This is from the great Ludwig von Mises from his magnum opus Human Action Chapter XI Section 2 p.204. (hat tip Mises Blog)
This is in accord to yesterday’s quote of the day where Professor Deirdre McCloskey bashed the notion of using mathematical formalism to measure “happiness”.
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