We’ve all heard experts, pundits and talk show hosts pontificating about gold and silver. We’ve heard examples of their so called “intrinsic” value, about how gold and silver retain their value over time. Aside from any intrinsic value, this is accurate, except when these people attempt to make price comparisons of goods in gold or…
The Austrian School of Economics has been at the forefront of price theory. Beginning with Carl Menger, the founding patriarch, through others such as, Böhm-Bawerk, Mises, Hayek, Rothbard, Lachmann, Kirzner and more have advanced the theory of prices. It is generally accepted that prices are a function of supply and demand. But, there’s more.
It is apparent that some who advocate for the Austrian School of Economic Theory haven’t quite grasped the basics tenants of Austrianism. One of the basic tenants is the Mengarian theory of subjective value. One of those advocates is none other than Peter Schiff.
Recently, the Barrett Jackson Auto Auction made automotive history by auctioning off the original George Barris “Batmobile” for an astounding $4.5 million. Not a world record but amazing nonetheless. The 1964 Aston Martin DB5 used in James Bond films sold in 2010 for $4.6 million. The value individuals place on such rare automobiles is merely…
The Blue Collar Economist 