An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-BawerkSmart, William
General
An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-Bawerk
Smart, William
Austrian school of economics; Value
Before passing from subjective or personal value, there remains
for consideration one point, which is at once important in itself,
and decisive against the old division of the total phenomena under
discussion into value in use and value in exchange. To the subtle
analysis of Böhm-Bawerk and Wieser we owe the recognition of
_subjective_ exchange value, as distinct from the purely _objective_
exchange value which we have to consider in following chapters.
Aristotle said that every good had two uses, “both belonging to the
thing as such”: similarly we say that every good has two subjective
importances, that which it can directly afford, and that which the
things got in exchange for it can afford. A little reflection will
convince us that subjective value contains these two distinct branches,
use value and exchange value.
It may occasionally suit the economist, for purposes of illustration,
to discuss the economy of a Crusoe—particularly in problems of
production where the essential features of society, as at once a
producing and consuming body, are obscured by the division of
labour—but, in the simplest form of society known to experience, there
is always some barter or exchange of goods. But, wherever this is the
case, every good acquires a second possible value as an exchange form
of other goods, or a potentiality of obtaining other goods. In the
organism called society, each man becomes—at least potentially—richer
or poorer with the increase or decrease of its wealth. Some part of our
neighbour’s goods becomes available for the satisfaction of our want
whenever exchange becomes possible between us, inasmuch as the actual
existence of his surplus—not to mention his enjoyment of it—depends
on our co-operation. Thus the goods which were first valuable to us
personally, as possible satisfaction of our want, get a secondary
value. Every good becomes potentially a number of other goods, and the
range of our possible satisfactions becomes by so much widened. The
presence of exchange, in short, gives us a choice of values.
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