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Pastimes : Austrian Economics, a lens on everyday reality

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To: Wildstar who wrote (127)	9/17/2002 10:25:18 AM
From: Don Lloyd	Read Replies (1) of 445

Wildstar, I must confess that I'm not sure I ever really understood this point within the Austrian framework. How is "urgency" of demand measured if it cannot be quantified? If urgency is said to be proportional to the amount of dollars a buyer is willing to pay, then the implication is that dollars are an objective measure of value. But I don't think that the Austrian school would agree with that since dollars also follow the law of subjective marginal utility. There is no measurement. All there is a subjective ranking of all of the possible comprehensive states of satisfaction that can be achieved by exchange with available resources. In this case, the choice will come down to whether I prefer the state where I have boarded up windows, or the state where I do not have boarded up windows, but I have the cash that was not expended for plywood. Clearly, if the plywood were free, that would be the preferred state, with both the boarded up windows and the cash. As the market price of plywood rises, at some point my highest ranked state will shift from boarded up windows to not. Regards, Don

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