Before Menger, economists tortured themselves trying to explain why diamonds cost more than water when water keeps you alive. Menger dissolved the paradox in a sentence. Value is marginal and subjective. The tenth glass of water you drink today carries almost no value to you; the first glass you drink after three days without it carries everything. The object does not contain the value. You assign it, based on your circumstances, your preferences, your next most pressing want.
This wrecked the labor theory of value completely, clearing the ground for honest price analysis.
Prices, Menger showed, are not arbitrary signals or social constructs. They are compressed information about millions of individual valuations, each person acting on knowledge no central planner could ever collect. Bureaucrats in Brussels and Washington still haven't absorbed this. They control prices and watch shortages materialize on schedule, baffled every time. //
Handre, it's not that they haven't aborbed it. It's that they are owned by a financial network that rejects a key truth that Menger laid bare.
It's the old Upton Sinclair saying writ large: "It is difficult to get a man to understand something when his salary depends upon his not understanding it."
What Menger explained in Vienna in 1871, the Transnational Crime Syndicate of Big Club Oligarch Family Pirates has spent over 150 years trying to hide from the public.
They're still trying to protect BOTH systems they painstakingly constructed - and enforce - for the rest of us, but not for themselves.
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THE FIAT CURRENCY SYSTEM
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THE ENERGY RATIONING/MARKET MANIPULATION SYSTEM
