You want to read the book? Get it here: 👉 https://amzn.to/4exiAKW Watch the next video in this series: Coming Soon! Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Where did money come from—and who invented it? In this video, we explore Carl Menger’s Principles of Economics, Section 8.1: On the Nature and Origin of Money—a foundational explanation of how money emerged not by law, but through voluntary trade. Early economies relied on direct barter. But bartering only works when two people each want exactly what the other has—at the same time. This “double coincidence of wants” was rare and made trade inefficient. So how did economies evolve beyond this? Menger shows that people gradually realized they could accept goods not for their direct use, but because those goods were easier to trade. For example, a weaponsmith might accept cattle for his armor—not because he needed cattle, but because he knew others would. Over time, highly marketable goods like cattle, salt, or metal became stepping stones to what people really wanted. Eventually, this habit of accepting certain tradable goods became widespread. These goods—accepted everywhere, for anything—became money. Not because a government declared them money, but because the logic of trade and the habits of people made them money. Governments sometimes strengthened these goods by declaring them acceptable for taxes or debts. But that didn’t create money—it merely reinforced what the market had already chosen. In short: money is a product of human action, not state planning. It emerged naturally as individuals sought better ways to trade. ❓ Questions This Video Answers: -What is the true origin of money? -Why did barter limit early trade? -How did people solve the problem of double coincidence of wants? -What makes a good naturally evolve into money? -Did the state invent money? -Why were goods like cattle used as early money? -What role did habit play in the rise of money? -How does indirect exchange improve trade efficiency? -Can money exist without legal backing? -What does Menger’s theory say about modern money? 00:00 - Introduction to the Nature and Origin of Money 00:09 - The Limitations of Early Trade 01:07 - The Natural Solution to Trade Emerges 01:50 - The Weapon Smith Example 02:31 - The Birth of Money 03:02 - The Role of Habit and Imitation 03:33 - The State’s Limited Role in the Origin of Money 04:04 - Conclusion 04:34 - Outro #OriginOfMoney #CarlMenger #AustrianEconomics

You want to read the book? Get it here: 👉 https://amzn.to/4exiAKW Watch the next video in this series: https://rumble.com/v6w0q4i-principles-of-economics-by-carl-menger-chapter-8.1-the-nature-and-origin-of.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why do some goods circulate easily while others don’t—even if they’re valuable? In this video, we explore Carl Menger’s Principles of Economics, Section 7.2C: On the Circulability of Commodities. We’ve already seen what makes some commodities more marketable than others. But marketability isn’t the whole story. Menger now takes it further: to circulate well, a good must be resellable by anyone, anywhere, at any time—without losing value. Take gold: whether it’s held by a miner, trader, or investor, it keeps its value and sells easily. It’s highly circulable. But other goods—like food, used clothing, or personal items—may sell once but are hard to resell. Even if unused, fear of wear, spoilage, or mismatch kills their value in the next trade. Other limits include: Legal and technical barriers: Medicines, exports, or specialized tools require knowledge or permits to sell again. Customization: Items like shoes or hats need expert fitting, which most people can’t offer. Price uncertainty: Goods with unstable or hard-to-verify prices don’t move easily across hands. In contrast, goods like grain, metals, or securities circulate well because they are durable, standardized, in wide demand, and backed by public market pricing. Understanding circulability helps explain why some goods serve as money and others never can. It’s not just value that matters—it’s how easily and repeatedly a good can pass through hands without friction or loss. ❓ Questions This Video Answers: -What does “circulability” mean in economics? -Why do some valuable goods circulate poorly? -How is marketability different from circulability? -Why is gold highly circulable but food is not? -What role do legal or technical barriers play in resale? -How does price volatility affect resale potential? -What makes securities or grain ideal for repeated trade? -Why can’t custom goods circulate easily? -How does circulability relate to money? -What are the core qualities of a circulable good? 00:00 - Introduction to the Circulability of Commodities 00:12 - Circulability of Commodities 00:41 - Factors Affecting Circulation 01:38 - Specialized Goods and Price Stability 02:32 - Conclusion 03:25 - Outro #Circulability #ResaleEconomics #CarlMenger

You want to read the book? Get it here: 👉 https://amzn.to/4exiAKW Watch the next video in this series: https://rumble.com/v6vipxb-principles-of-economics-by-carl-menger-chapter-7.2c-circulability-of-commod.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why are some goods easy to sell and others a struggle to move? In this video, we explore Carl Menger’s Principles of Economics, Section 7.2B: On the Different Degrees of Marketability of Commodities. Marketability isn’t just about whether a good can be sold—it’s about how easily and reliably it can be sold at a fair price. Menger shows us that even within legal and physical trade limits, commodities differ greatly in their degrees of marketability. Key factors include:
 1️⃣ Number of buyers – Goods like grain and metals have broad appeal, while rare instruments or niche books have few interested customers.
 2️⃣ Location of markets – Some goods are tradable anywhere; others are tied to a few specific cities or regions.
 3️⃣ Speculation – Highly marketable goods are often traded in anticipation of resale, like gold or wheat.
 4️⃣ Timing – The more frequently a good can be sold (daily vs. annually), the more liquid and marketable it becomes. Goods with strong, organized markets—like grain, wool, or securities—are easier to sell because they’re backed by trading institutions, regular price listings, and active buyer networks. Less marketable goods, like decorative items or technical equipment, face unpredictable prices, limited buyers, and longer sales delays. Understanding these degrees of marketability is key to grasping why some goods function almost like money—and why others require time, effort, and luck to convert into value. ❓ Questions This Video Answers: -What is meant by "degree of marketability"? -Why do some goods sell faster and easier than others? -How do organized markets increase a good’s marketability? -What role does speculation play in trade? -How do time and location affect sales opportunities? -Why are niche products harder to sell? -What makes grain or gold "as good as cash"? -How do market reports and exchanges support trade? -What are examples of highly vs. poorly marketable goods? -How can sellers reduce the risk of unsold inventory? 00:00 - Introduction to Different Degrees of Marketability 00:11 - Internal and External Limits to Marketability 00:36 - Defining Commodities and Fair Pricing 01:29 - Organized Markets and Trading Centers 02:25 - Four Key Factors Affecting Marketability 03:38 - Practical Examples and Comparisons 04:51 - Outro #MarketabilityExplained #CommodityLiquidity #CarlMenger

You want to read the book? Get it here: 👉 https://amzn.to/4exiAKW Watch the next video in this series: https://rumble.com/v6vgvk5-principles-of-economics-by-carl-menger-chapter-7.2b-differences-in-marketab.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why are some goods easy to sell while others barely move at all? In this video, we explore Carl Menger’s Principles of Economics, Section 7.2A: On the Limits of Marketability of Commodities. While many economic theories focus on why goods are exchanged in certain quantities, Menger draws attention to something more practical: not all goods are equally marketable. That is, not all goods are equally easy to sell. And understanding this difference is essential—not just for producers and traders—but for grasping why money exists. Menger outlines four key limits that define a commodity’s marketability: 1️⃣ Buyer limitations: Not everyone can buy every good. Bread is easy to sell to anyone—rare tools or obscure books, not so much.
2️⃣ Geographic limits: Some goods (like steel or gold) can be shipped anywhere, while others (like manure or sand) are only profitable locally.
3️⃣ Quantity constraints: You can sell bread by the ton, but not everyone wants 1,000 Sanskrit textbooks. Some markets are naturally small.
4️⃣ Time sensitivity: Perishable or seasonal goods lose value fast. Others, like precious metals, hold their value over time. This analysis helps explain why some goods become money—they’re durable, portable, in demand, and easy to sell anytime, anywhere. Whether you’re a producer, investor, or just curious about how markets work, understanding these marketability factors is key to making better economic choices. ❓ Questions This Video Answers: -What does "marketability" mean in economics? -Why are some goods easier to sell than others? -How does geography limit trade? -What role does time play in a product’s marketability? -Why are some goods only profitable in certain regions? -How does quantity affect how easily something can be sold? -What kinds of goods are most durable in value over time? -Why is understanding marketability essential for economic planning? -What makes a good ideal for use as money? -How do perishable vs. non-perishable goods compare in trade? 00:00 - Introduction to Marketability Limits 00:11 - Marketability of Goods 00:45 - The Four Limits of Marketability 01:59 - Quantity and Time Constraints 03:22 - Conclusion 03:38 - Outro #Marketability #CommodityTrade #CarlMenger

You want to read the book? Get it here: 👉 https://amzn.to/4exiAKW Watch the next video in this series: https://rumble.com/v6v20er-principles-of-economics-by-carl-menger-chapter-7.2a-marketability-of-commod.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What is a commodity, really? In this video, we explore Carl Menger’s Principles of Economics, Section 7.1: The Concept of the Commodity in Popular and Scientific Terms. In early, self-sufficient economies, families produced everything for themselves. Goods weren’t traded—they were used directly. But economic development begins when people start offering their labor and products in exchange for others. This leads from home-based production to workshops, and eventually to mass production and ready-made goods. In daily language, “commodity” usually refers to movable, physical goods made for sale. But Menger explains that in economics, a commodity is not defined by what the good is—but by how the owner treats it. A good becomes a commodity only when it’s intended for exchange. Once it’s kept for personal use, it ceases to be a commodity—even if it’s the exact same object. This concept reveals a deeper truth: being a commodity is not a permanent trait. It’s a temporary status, tied to a good’s place in the exchange process. A hat in a shop is a commodity; that same hat, once worn, becomes a consumer good. Even precious metals lose their commodity status if melted for private use. Menger’s insight clarifies why ownership intentions matter in economics—and helps distinguish between goods in circulation and goods in use. Understanding this shift is key to grasping the flow of value through an economy. ❓ Questions This Video Answers: -What is a commodity in economics? -How does a good become a commodity? -Can a commodity lose its status? -What role does ownership intention play in defining commodities? -How did early economies evolve into trade economies? -What’s the difference between popular and scientific definitions of commodities? -Why does a consumer good differ from a commodity? -How do mass production and trade change how we value goods? -What’s the lifecycle of a commodity in the market? -Can the same item shift between commodity and consumer good? 00:00 - Introduction to What is a Commodity 00:11 - Goods in a Self-Sufficient Economy 00:52 - The Evolution of Economic Systems 02:05 - Defining Commodities: Popular VS scientific Terms 03:01 - Practical Examples 03:52 - Outro #CommoditiesExplained #EconomicGoods #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6ut1r3-principles-of-economics-by-carl-menger-chapter-6a-use-value-and-exchange-va.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What does competition really change in a market? In this video, we explore Carl Menger’s Principles of Economics, Section 5.3C: The Effect of Competition on Prices and Supply. At first glance, it might seem like it doesn’t matter whether one seller or many offer a product—if the total supply and price stay the same, so will the outcome. But Menger shows that true competition changes everything. When a monopolist controls the market, they can restrict supply to raise prices, or sell to different social groups at different prices to maximize profits. But the moment real competitors enter the scene—each acting independently—those tactics fall apart. A competitor who tries to destroy part of their stock to push prices up will simply lose market share to others. And sellers who aim only at wealthy buyers get undercut by competitors selling to the masses. As a result, prices fall, access expands, and wasteful practices vanish. More importantly, competition increases overall production. Where monopolists hold back output, multiple competing sellers flood the market, making goods more available to all. It pushes producers to serve more people, cut costs, and innovate. In short, Menger explains that competition doesn’t just affect prices—it transforms market structure, boosts efficiency, and spreads prosperity. This section offers a timeless defense of why free markets matter—and how competition ensures economic goods reach the widest number of people. ❓ Questions This Video Answers: -How does competition affect market prices? -Why can’t sellers destroy supply in competitive markets? -What happens when monopolies try to segment buyers? -How does competition change production levels? -Why does competition expand access to goods? -What role do incentives play under competition? -Why do prices drop in competitive markets? -How does competition increase efficiency? -What business practices disappear with strong competition? -Why is competition key to reaching lower-income buyers? 00:00 - Introduction to Competition Policy 00:12 - Competition vs Monopoly—Setting the Stage 00:54 - When Competition Actually Matters 01:36 - Competition Prevents Withholding and Manipulation 02:31 - Eliminating Harmful Monopoly Practices 02:56 - The Broader Benefits of Competition 03:50 - Motivation, Efficiency, and Social Reach 04:26 - Conclusion #FreeMarkets #CompetitionMatters #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6unurp-principles-of-economics-by-carl-menger-chapter-5.3c-competition-policy.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What really determines the final price of goods in a market—the number of sellers or the quantity offered? In this video, we break down Carl Menger’s Principles of Economics, Section 5.3B: The Effect of Offered Quantities and Fixed Prices on Market Outcomes. Using the familiar example of farmers trading grain for horses, Menger shows how both monopoly and competitive markets follow the same core rules: the final price and distribution of goods depend not on how many sellers there are, but on how much of the good is available and the price being asked. If multiple sellers offer more horses, prices fall and more buyers can participate. If fewer horses are offered, prices rise and only top buyers can afford them. This matches what happens in a monopoly market where only one seller exists. In both cases, what matters is the total quantity and the buyers’ willingness to pay—not whether there’s one supplier or many. Likewise, when prices are fixed instead of negotiated, the same principle holds: higher prices reduce total sales and exclude more buyers; lower prices increase both. Again, it doesn’t matter if one or many sellers set the price—the outcome is the same. This chapter shows that competition doesn’t override basic economic laws. Whether in a monopoly or a crowded market, supply quantity and price levels are what determine the real economic results. ❓ Questions This Video Answers: -What determines the final price in a competitive market? -Do more sellers automatically lower prices? -How does the total quantity offered affect buyers? -Does competition change how goods are distributed? -What happens when prices are fixed? -Do fixed prices behave differently under monopoly or competition? -Why is buyer willingness to pay important? -How are goods shared among buyers when supply increases? -Is the number of sellers or total supply more important? -Do monopoly and competition follow the same pricing rules? 00:00 - Introduction into Competing Sellers and Price Formation 00:19 - Multiple Sellers and Price Impact 00:49 - Two Sellers Example 01:26 - Comparison with Monopoly 01:49 - Fixed Prices Scenario 02:13 - Summary of Principles 02:36 - Outro #PriceFormation #SupplyAndDemand #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6uke8j-principles-of-economics-by-carl-menger-chapter-5.3b-price-formation-by-comp.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How does competition emerge from monopoly—and how does it reshape prices and the distribution of goods? In this video, we explore Carl Menger’s Principles of Economics, Section 3A: Price Formation and Distribution of Goods under Mutual Competition. Monopolies aren’t just legal privileges. Menger explains that they can arise naturally—a doctor, craftsman, or merchant may become a monopolist simply by being the only provider of certain goods or services in a town. In fact, natural monopolies are older than competition itself! As economies grow—population increases, wealth rises, and demand expands—natural monopolists may react by raising prices and serving only the wealthiest clients, leaving others underserved. Over time, this creates an economic imbalance and resentment, especially when the monopolist can’t or won’t increase supply to match demand. But here’s the key insight: this very imbalance creates the conditions for competition. As long as no legal or social barriers exist, new providers will enter the market, breaking the monopoly. When competition arrives, it transforms everything:
✅ Prices become more stable and fair
✅ Goods and services reach broader parts of the population
✅ The monopolist must adapt or lose market share In this video, we’ll see how competition evolves naturally from monopoly, and why it plays such a crucial role in shaping healthy, dynamic markets. ❓ Questions This Video Answers: -What is a natural monopoly? -How can a monopoly arise without government privilege? -Why do monopolists raise prices as demand grows? -What happens when a monopolist can’t meet increasing demand? -How does competition emerge from monopoly? -How does competition affect prices? -How does competition change the distribution of goods? -Why is competition essential for dynamic markets? -What are historical examples of natural monopolies? -How does mutual competition improve market fairness? 00:00 - Introduction to price formation and distribution of goods under mutual competition 00:13 - The Concept of a Monopolist 00:46 - Historical Perspective on Monopoly 01:12 - Transition from Monopoly to Competition 01:58 - The Emergence of Competition 02:18 - Outro #MarketCompetition #PriceFormation #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6uif73-principles-of-economics-by-carl-menger-chapter-5.3a-price-forming-and-distr.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How do monopolists strategically set prices and control supply to maximize profits? In this video, we dive into Carl Menger’s Principles of Economics, Chapter 5.2D: The Principles of Monopoly Trade (Monopolist Strategy). Monopolists may seem all-powerful, but they still face clear economic limits. They can’t simply set any price and expect unlimited sales. Trade, even monopoly trade, must still benefit both sides—buyers must see value in the deal. Menger explains that a monopolist can control either:
✅ The quantity of goods offered
OR
✅ The price per unit—
but not both at once. If they want to sell more, they must lower the price. If they want to maintain a high price, they must limit how much they sell. A clever monopolist seeks to maximize total revenue—not sales volume or market fairness. That’s why they might:
🔸 Sell first to wealthy buyers at high prices
🔸 Lower prices later to reach new markets
🔸 Even destroy supply to prevent price drops—just as the Dutch East India Company once did with spices. This behavior follows strict economic laws, not greed or randomness. History shows that when monopolists lose the ability to control supply (like after industrialization), their influence fades. In short: Monopoly pricing is a careful balancing act. The goal is simple—maximum profit. Menger’s insights still explain real-world markets today. ❓ Questions This Video Answers: -How do monopolists decide between controlling price or quantity? -Why can’t a monopolist control both price and quantity at once? -What is the goal of a monopolist’s strategy? -Why do monopolists sometimes limit supply on purpose? -How does monopoly trade still follow economic laws? -What is the impact of lowering prices on total revenue? -Why do monopolists target wealthier buyers first? -What historical examples show monopolist behavior? -What happens when monopolists lose control over supply? -Why is maximizing sales volume not always optimal? 00:00 - Introduction to the Principles of Monopoly Trade 00:12 - How Monopolists Influence Trade 01:48 - Lessons from History and Economic Laws 02:46 - Outro #MonopolyStrategy #ProfitMaximization #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6ugmul-principles-of-economics-by-carl-menger-chapter-5.2d-principles-of-monopoly-.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How does a monopolist’s choice of price affect how much they sell and who gets to buy? In this video, we explore Carl Menger’s Principles of Economics, Chapter 5.2C: The Influence of Monopolist-Set Prices on Quantities Sold and Buyer Distribution. In most real markets, monopolists don’t run auctions. Instead, they set a fixed price for their goods and let buyers choose how much to purchase. This practical method shapes the entire outcome of trade: who can buy, how much is sold, and how broadly the good spreads through the market. Menger explains that if the price is too high, even the most eager buyer won’t purchase—and no sales happen. But if the price is reasonable, buyers will begin to purchase according to how much value each unit holds for them. For example: If the price is 75 units of grain, only the top buyer purchases one unit. Lowering it to 62 units brings in another buyer and more sales. Dropping to 54 units opens the market even more—more buyers, more units sold. The core principles are simple but powerful:
1️⃣ Buyers whose valuation is below or equal to the price won’t buy.
2️⃣ Buyers whose valuation is above the price will buy up to their personal limit.
3️⃣ Lower prices increase participation and sales; higher prices do the opposite. This dynamic explains why pricing decisions matter so much—not only for profits but also for how goods flow through society. ❓ Questions This Video Answers: -How does a monopolist typically sell their goods? -Why do high prices exclude buyers? -What happens to total sales when prices are lowered? -How do buyers decide how much to buy? -What role does marginal utility play in purchase decisions? -Why doesn’t a monopolist always set the highest price possible? -How does price affect the distribution of goods in society? -Why do lower prices reach deeper population groups? -What is the relationship between set price and buyer participation? -How does this model explain real-world monopoly pricing? 00:00 - Introduction to The Influence of Monopolist-Set Prices on the Quantities of the Monopoly Good 00:18 - Monopolist Pricing Strategies and Market Dynamics 01:19 - Impact of Price on Buyer Participation and Sales Volume 02:17 - Principles Governing Monopolist Pricing and Market Reach 03:15 - Conclusion #MonopolyPricing #BuyerBehavior #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6uf4bp-principles-of-economics-by-carl-menger-chapter-5.2c-market-dynamics-of-mono.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What happens when a monopolist offers quantities of a good instead of just one? In this video, we explore Carl Menger’s Principles of Economics, Chapter 5.2B: Price Formation in Monopoly Trade for Quantities. Previously, we saw how prices form when a single good is sold to competing buyers. Now we move to a more complex but highly realistic case—when multiple units of a monopoly good are sold, and buyers value each additional unit less (think of diminishing marginal utility). Imagine a farmer selling horses to multiple buyers. Each buyer values the first horse highly, but values each additional horse less and less. As the seller offers more horses, prices must adjust to reflect this reality. Here’s the key insight: prices settle between the highest value of the weakest successful buyer and the lowest value of the strongest excluded buyer. The more goods the monopolist offers, the more buyers can enter the market—and prices fall as a result. This mechanism explains why luxury goods are expensive when scarce and how mass production brings prices down to reach more people. It also shows how market competition naturally stratifies who can access goods at different price points. Menger’s model gives us a clear, logical view of how prices evolve in monopoly markets—not just in theory, but in the real world of trade, production, and social dynamics. ❓ Questions This Video Answers: -How does price formation change when selling multiple units? -Why do buyers value additional units less? -How does a monopolist decide what price to set? -Why do prices fall as more units are sold? -How do buyers cooperate to keep prices profitable? -What determines which buyers get excluded? -How does this model explain luxury vs mass-market pricing? -How does competition affect monopoly pricing? -What role does marginal utility play in pricing? -How do prices reflect social access to monopoly goods? 00:00 - Introduction to Price Formation in Monopoly Trade for Quantities 00:14 - Monopoly Trade 00:35 - Farmer Scenario 00:59 - Offering Horses 01:33 - Cooperation and Price Settlement 02:00 - More Horses and Social Layers 02:42 - Summary 03:21 - Conclusion #MonopolyPricing #MarginalUtility #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6ua7kl-principles-of-economics-by-carl-menger-chapter-5.2b-price-forming-in-monopo.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What happens to prices when multiple buyers compete for a single good? In this video, we explore Carl Menger’s Principles of Economics, Chapter 5.2A: Price Formation in Monopoly Trade. Previously, we looked at isolated exchange—two people trading based on their personal valuations. But what if one seller faces many buyers? That’s the essence of monopoly trade, where competition among buyers shifts how prices form. Menger shows that in monopoly situations, the price range narrows as more buyers enter the scene. Imagine A owns a horse worth 10 bushels of grain to him. Buyer B1 values it at 80 bushels. Initially, the price could land anywhere between 10 and 80. But as more buyers appear—say B2 values it at 30, B3 at 50, B4 at 70—the competition forces the price upward, closer to the valuations of the top bidders. Here’s the key insight: the final price will settle between the values assigned by the top two competing buyers. The horse will go to whoever values it the most, and they’ll pay just enough to outbid the next-highest offer. The process mirrors an auction—buyers push the price higher, while the seller benefits from the competitive tension. Yet, just like in isolated trade, the exact final price still depends on negotiation and bargaining within the allowed range. This chapter provides a foundational understanding of how competition shapes prices, both in simple trades and in modern markets. ❓ Questions This Video Answers: -What is monopoly trade? -How do prices form in monopoly situations? -Why does competition among buyers raise prices? -How does buyer entry affect the price range? -What determines who wins the trade? -Why does the price settle between top bidders’ values? -How is monopoly trade different from isolated exchange? -Is the final price fixed or negotiable? -How does bargaining influence the result? -What can this teach us about modern markets? 00:00 - Introduction to the Price Formation in a Monopoly Trade 00:13 - Isolated Exchange 00:40 - Transition to Monopoly 01:30 - Multiple Sellers and Buyers 01:50 - Focus on Single Seller, Multiple Buyers 02:30 - Competition Among Buyers 03:08 - Summary of Monopoly Trade 03:30 - Outro #MonopolyTrade #PriceFormation #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6u8ffn-principles-of-economics-by-carl-menger-chapter-5.2a-price-formation-in-mono.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How does price actually form when two people trade with each other? In this video, we explore Carl Menger’s Principles of Economics, Chapter 5.1: Price Formation in Isolated Exchange. Menger walks us through a simple but powerful example: one person has grain, the other has wine. Each values what they own less than what the other person has—but not by the same amount. That difference in personal valuation creates a range of possible prices, with a clear upper and lower limit. Let’s say A won’t give more than 100 units of grain for 40 units of wine. And B won’t accept less than 80 units of grain in return. A trade can happen, but the price has to fall somewhere between 80 and 100. Within that range, bargaining begins—each side trying to get the best deal. The final price depends on real-world factors: personality, knowledge, negotiation skill, and even luck. But over time, when both parties are equally skilled, Menger shows that prices tend to settle around the average of both valuations—in this case, 90 units of grain. This principle shows that price isn’t fixed by cost or equality—it’s set by subjective value and the interaction of people trying to satisfy their needs. In isolated trades, prices are not mysterious. They emerge logically from what each person wants and is willing to give up. If you want to truly understand how pricing works at its core, this video is for you. ❓ Questions This Video Answers: -How is price formed in one-on-one trade? -What sets the upper and lower limits of a price? -Why do people bargain during a trade? -What is a subjective equivalent in economics? -Can the final price fall outside the valuation range? -What happens if both parties are equally skilled? -Why do prices settle near the average valuation? -What role does negotiation play in pricing? -How does knowledge or personality affect the deal? -Why is cost not the core of price formation? 00:00 - Introduction to Price Formation in Isolated Exchange 00:13 - The Basics of Economic Exchange 00:32 - An Exchange Between Grain and Wine 01:35 - Bargaining and Price Settlement 02:15 - The Average Valuation 02:55 - Conclusion 03:23 - Outro #PriceFormation #SubjectiveValue #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6u49mp-principles-of-economics-by-carl-menger-chapter-5.1-price-formation-in-isola.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Most people think prices are the heart of economics—but Carl Menger disagrees. In this video, we explore Chapter 5.0 of Principles of Economics, where Menger reveals that prices are not the cause of trade, but the result of it. Prices—measurable and ever-present—seem like the main thing economists should focus on. But Menger argues that the real reason people trade isn’t about numbers. It’s about needs. Every trade happens because two people each believe they’re better off after the exchange. Prices simply reflect this balancing act between people’s wants and what they can give up to satisfy them. He compares prices to waves that appear when a dam between two lakes is removed. The waves are visible, but the real force is the difference in water levels—just like real economic activity is driven by the difference in personal valuations, not by any supposed equality of goods exchanged. Menger criticizes older price theories that try to find objective “equivalents” in goods—like labor time or production cost. He shows this doesn’t match reality: if two goods had equal value, people would be fine trading them back. But trades rarely reverse, proving that goods are not exchanged because they’re equal—they’re exchanged because they are unequal in value to each person. In this video, you’ll learn why a proper theory of price starts with subjective value and human needs—not with numbers or costs. ❓ Questions This Video Answers: -Are prices the most important part of economics? -What causes prices to exist in the first place? -Why do people trade if the goods are unequal in value? -Are exchanged goods ever truly equal in value? -Why don’t people reverse trades if they’re “equal”? -What’s wrong with labor or cost-based price theories? -What are prices actually measuring? -How is value different from price? -Why do prices act like signals in the economy? -What is the true foundation of price theory? 00:00 - Introduction to the Theory of Price 00:10 - The Role of Prices in Economic Exchange 00:43 - Prices as Temporary Disturbances 01:30 - Questioning the Assumption of Equal Value 02:02 - The Logic Behind Trade 02:35 - Conclusion #PriceTheory #SubjectiveValue #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6u10z1-principles-of-economics-by-carl-menger-chapter-5.0-the-theory-of-price.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html When does trade stop being beneficial? In this video, we break down Carl Menger’s insights from Principles of Economics, Chapter 4.2: The Limits of Economic Exchange. Trade might seem like a win-win at first—and it often is. But Menger shows there’s always a natural limit to how much two parties can trade before it stops improving their well-being. This isn’t just about having more or less stuff. It’s about value—specifically, how much each good is worth to each person based on their needs and what they already own. Using clear examples like settlers trading cows for horses, Menger shows how the value of each additional unit of a good decreases. The first few trades are the most profitable, but as people keep trading, they eventually reach a point where they’re giving up something more valuable than what they’re getting. Go past that point, and both sides lose. The same principle applies to international trade. Early trades between countries offer big gains. Later, they slow down unless new goods or conditions change the equation. That’s why investment in roads, information, and systems is essential—it helps unlock new opportunities. Menger also reminds us: trade isn’t free. There are always costs—transport, risk, packaging, commissions—and they matter. These costs set limits too. But they also explain how traders earn their place in the economy. They don’t produce goods, but they help meet human needs—and that makes them productive. ❓ Questions This Video Answers: -When does trade stop being beneficial? -What is the natural limit of economic exchange? -Why are the first trades usually the most valuable? -How does marginal utility affect trade decisions? -Can you keep trading forever and still benefit? -What role do costs like transport and taxes play in trade? -Why does international trade slow down over time? -How do traders contribute to economic productivity? -Why do people stop trading even if they have more goods? -How do new conditions revive trade opportunities? 00:00 - Introduction to The Limits of Economic Exchange 00:13 - The Point of Highest Benefit of Trade 00:49 - The Case of Two Trading Settlers 01:15 - The Limit Where Trade Stops Being Beneficial 01:40 - Two Isolated Settlers 02:24 - The Second Trade 03:01 - A Natural Stopping Point 03:25 - International Trade 03:48 - The Earliest Trades 04:33 - The Cost of Trade 04:58 - Traders Play a Crucial Role 05:26 - Outro #TradeEconomics #MarginalUtility #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tz5xb-principles-of-economics-by-carl-menger-chapter-4.2-the-limits-of-economic-e.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why do people trade? Is it instinct, reason, or just a habit? In this video, we explore the foundations of economic exchange as explained in Principles of Economics by Carl Menger, focusing on Chapter Four, §1. Carl Menger builds on a question raised by Adam Smith: is the human tendency to trade natural or rational? Instead of speculating, Menger gives a clear and useful answer—people trade to satisfy their needs more effectively. It’s not about the joy of swapping things; it’s about improving your situation. Imagine a hunter with extra animal skins and a farmer with extra food. Neither is happy with what they lack. Through exchange, the hunter eats and the farmer stays warm. Both gain. That’s the real nature of trade—it lets people give up something they need less to get something they need more. But it goes deeper. Even when neither person has a true “surplus,” trade still works if what one person has is less valuable to them than what the other person has. That’s subjective value in action. For a trade to occur, three things are needed: each person values the other’s goods more, both recognize this value difference, and both can act on it. Without all three, no exchange happens. This section is the cornerstone of understanding not just barter, but also buying, selling, renting, and more. ❓ Questions This Video Answers: -Why do people engage in trade? -What makes a trade economically beneficial? -Is trade driven by instinct or reason? -How does subjective value influence exchange? -What are the three conditions required for trade? -Why won’t two farmers with the same goods trade with each other? -Can people trade without a surplus? -How is exchange connected to human well-being? -Is economic exchange limited to bartering? -What did Carl Menger add to Adam Smith’s ideas on trade? 00:00 - Introduction to The Foundations of Economic Exchange 00:12 - Where does the desire to trade come from 00:56 - Improving well-being through Trade 01:55 - The core condition for exchange 02:35 - Forms of exchange 02:51 - Summary about Trade 03:24 - Outro #TheoryOfExchange #SubjectiveValue #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tph5x-principles-of-economics-by-carl-menger-chapter-4.1-foundations-of-economic-.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Does land deserve a special status in economics? Carl Menger didn’t think so. In this video, we explore his argument from Principles of Economics (3.3E), where he shows that land, labor, and capital are all valued using the same core principle: how well they help meet future human needs. Menger challenges older ideas like Ricardo’s rent theory and the labor theory of value. He shows that trying to explain land value by past effort or capital spent leads to contradictions. Whether land was reclaimed with huge effort or formed naturally, what matters is its usefulness, not its history. That’s why the value of land depends on the value of the final good it helps produce—not on the labor or money invested in it. The same goes for labor. Work isn’t automatically valuable. Some labor earns far below subsistence levels, while others earn 100x more. That’s not about fairness or minimum needs—it’s about market value. Labor is only worth what people are willing to pay for the need it satisfies. Capital use is no exception. Menger rejects the idea that interest is a reward for “abstinence.” Like land and labor, capital only has value when it contributes to producing something useful. This section brings it all together: land, labor, and capital are not special categories. They are all economic goods, and their value depends on one thing—the value of the outcome they help create. ❓ Questions This Video Answers: -Why doesn’t land have a special status in economics? -What’s wrong with Ricardo’s rent theory? -Can land value be explained by labor or capital input? -How do we really determine the value of land? -Why do some workers earn 100x more than others? -Does labor have automatic value? -What determines the price of labor in the market? -Is capital interest just a reward for abstinence? -How is capital use valued in economics? -What unites the value of land, labor, and capital? 00:00 - Introduction to Land, Capital, and Labor Value 00:15 - Land Value Explained 02:06 - The True Value of Land and Labor 04:09 - Value of Labor, Capital, and Conclusion 05:22 - Outro #SubjectiveValue #LandAndLabor #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tnufv-principles-of-economics-by-carl-menger-chapter-3.3e-the-value-of-land-labou.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Can a single input in production be worthless without the rest? Not at all—according to Carl Menger’s insight in Principles of Economics, Section 3.3D. In this video, we break down how individual higher-order goods—like tools, labor, or raw materials—each have their own value, even though they must be combined with other goods to produce final products. Menger explains that production processes are flexible, not rigid formulas. You can often substitute more of one input (like land or labor) for another (like fertilizer), without losing the entire product. This means that each input’s value doesn’t depend on the whole set—it depends on how much worse off we’d be without it. If removing an input results in lower quality or smaller output, that input’s value is measured by the difference between the needs we can satisfy with it and without it. Even when one missing input means you can’t make the original product, the other inputs still retain value—they can be used for other, less satisfying outcomes. This leads to a key principle: The value of a single higher-order good equals the difference in the importance of needs satisfied with it versus without it, assuming we use everything else efficiently. This is marginal value in action, applied to the building blocks of production. If you want to understand how real-world producers assess value in complex production chains, this video is essential. ❓ Questions Answered in This Video -Do individual production inputs have value on their own? -How flexible are production processes in using different inputs? -What happens when one input is missing? -How do we measure the value of a single higher-order good? -Why doesn’t a missing input destroy the value of the others? -What is the marginal value of production inputs? -Can inputs be replaced or substituted in production? -How does quality loss affect the value of a missing input? -Why are production inputs valued differently based on context? -How do entrepreneurs decide how much an input is worth? 00:00 - Introduction to the Value That Individual Higher-Order Goods Have for Us 00:14 - The Value of Higher-Order Goods 00:35 - The Role of Complementary Goods 00:55 - Flexibility in Production 01:20 - Adjusting Inputs in Production 01:33 - The Impact of Input Reduction 01:54 - Alternative Uses of Inputs 02:10 - Determining the Value of Higher-Order Goods 02:35 - Retaining Value Through Alternative Uses 02:56 - The General Rule Defined 03:16 - The Broader Law of Value 03:31 - Factors Affecting the Value of Higher-Order Goods 04:01 - Outro #MarginalValue #ProductionInputs #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tm9tb-principles-of-economics-by-carl-menger-chapter-3.3d-the-value-of-individual.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why are production inputs worth less than the final product? In this video, we explain Carl Menger’s powerful insight from Principles of Economics, Section 3.3C, about how the value of complementary higher-order goods is determined—and why they’re always valued at a discount compared to the future product they help create. To turn raw materials, tools, and labor into finished products, you need more than just the right goods—you need time and capital. During the production process, these capital goods are tied up and unavailable for other uses. This time delay carries a cost, and that cost reduces the present value of the inputs. Menger shows that the value of inputs today is based not only on the expected future value of the final good, but also on the cost of tying up capital and the value of entrepreneurship—the human effort needed to organize and execute production. That’s why no one pays the full price of the future product when buying production goods today—they apply a discount, similar to how a financial instrument loses value over time. This concept helps explain how markets price production inputs and why entrepreneurial coordination is an economic good with real value. If you want to understand how real-world production works, why input costs are discounted, and why entrepreneurs matter just as much as labor and materials—this video is for you. ❓ Questions Answered in This Video -Why are production inputs worth less than the final product? -What role does time play in valuing higher-order goods? -How is capital use “priced in” during production? -Why do buyers discount the value of future goods? -What is the value of entrepreneurship in production? -How does time preference affect economic value? -Why do technical inputs never equal the product’s full value? -What determines the present value of future goods? -How is capital “used up” during the production process? -Why must inputs be controlled for the entire production period? 00:00 - Introduction to the Value of Complementary Quantities of Higher-Order Goods 00:15 - Higher-Order Goods and Time 00:43 - Capital Goods and Value 01:06 - The Cost of Using Capital 01:35 - Example with Grain Production 02:00 - Discounting Future Value 02:35 - Bills of Exchange and Risk 03:02 - The Role of Entrepreneurship 03:38 - Capital, Entrepreneurship, and Value 04:13 - Outro #CapitalCost #Entrepreneurship #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tcv79-principles-of-economics-by-carl-menger-chapter-3.3c-combined-value-of-highe.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why does capital matter—and what makes it productive? In this video, we explore Carl Menger’s explanation of capital productivity from Principles of Economics (Section 3.3B), revealing how capital helps humans satisfy more needs, more efficiently—but only if we’re willing to think ahead. Menger shows that higher-order goods—like tools, raw materials, or seeds—allow us to create more valuable lower-order goods, but only over time. The more we rely on these production goods, the more output we can expect—but only if we first cover our immediate needs. That’s why the productivity of capital is always tied to time preference: people naturally prioritize present needs over future ones. The video walks through how human development depends on saving: from a tribal hunter focused on survival, to a farmer who plans months ahead, to modern societies planning years in advance. The transformation of unused resources like land or timber into valuable capital goods marks the beginning of every major economic advance. However, capital doesn’t produce value magically. Its productivity comes from the fact that we can delay consumption today in order to meet more or higher needs tomorrow. The more capital available, the more society can extend its planning horizon and increase output. Understanding this principle is essential for anyone interested in how economies grow and how human choice shapes long-term prosperity. Capital isn’t just wealth—it’s foresight in action. ❓ Questions Answered in This Video -What is capital and why is it productive? -Why do higher-order goods require planning? -What limits how much capital a person or society can use? -Why do people prioritize short-term needs? -How does time preference influence economic behavior? -How do raw materials gain value over time? -What role does saving play in economic progress? -How do different societies use capital differently? -What transforms a resource into an economic good? -Why is capital essential for long-term prosperity? 00:00 - Introduction to the Productivity of Capital 00:15 - Higher-Order Goods 00:54 - Time Delay by the Production of Lower Order Goods from Higher Order Goods 01:46 - Prioritizing Needs 02:22 - New Economic Stage 02:59 - Real Limitation 03:23 - Development of Societies 03:46 - Productivity of Capital 04:11 - Satisfying Future Needs 04:29 - Outro #CapitalProductivity #TimePreference #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6tb0b9-principles-of-economics-by-carl-menger-chapter-3.3b-the-productivity-of-cap.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Do raw materials and tools have value because they’re valuable—or because of what they can become? In this video, we unpack Carl Menger’s explanation of how the value of higher-order goods (like tools, labor, and raw materials) is determined—not by what they are, but by what they’re expected to produce. This chapter from Principles of Economics reveals one of the most critical misunderstandings in traditional economics: the belief that products have value because of the value of the goods used to create them. Menger turns this idea on its head. He shows that value flows in the opposite direction—from consumer goods (lower-order goods) backward to the goods used to produce them. The key insight: higher-order goods only have value because they are expected to help create valuable consumer goods in the future. If there’s no demand or expectation for the final product, the production goods lose their value—no matter how much effort or cost went into acquiring them. We’ll explore real-world examples, like making gunpowder or producing ice out of season, to understand how future expectations shape the value of today’s production inputs. If you’ve ever wondered how entrepreneurs decide what’s worth investing in—or why production materials can fluctuate in value even when nothing else has changed—this video explains the logic behind it. Value isn't fixed—it’s forward-looking. ❓ Questions Answered in This Video -What are higher-order goods, and how is their value determined? -Why can’t value come from production costs? -How does future demand affect present value? -Why is it wrong to think tools or raw materials have “inherent” value? -Can production inputs have value even if the product is worthless now? -How does Austrian Economics view the value chain in production? -Why is value assigned backward from consumer needs? -What role does time play in assigning value to goods? -What happens when the expected future value of a product changes? -How do entrepreneurs use this principle in real decisions? 00:00 - Introduction to the Laws That Govern the Value of Higher-Order Goods 00:15 - Value of Goods 00:41 - Finished Products and their Value 01:29 - Expected Value of Finished Products 01:53 - Needs in the Future 02:43 - Supply and Demand 03:34 - Outro #ValueChain #SubjectiveValue #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6t7yyj-principles-of-economics-by-carl-menger-chapter-3.3a-what-causes-the-value-o.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Does hard work make something valuable? Not in the world of Austrian Economics. In this video, we break down one of Carl Menger’s most important lessons from Principles of Economics—that value is always subjective, and labor does not create value. We often think that the more effort someone puts into making something, the more valuable it must be. But that’s not how value works. Menger shows that value comes from how important a good is to satisfying a person’s specific need, not from how much labor or how many materials went into making it. That’s why a diamond found by accident can be just as valuable as one mined through months of hard labor—and why something made with great effort can be worthless if no one needs it. This video explores the difference between production cost and personal value, and why subjective perception rules economic decisions. You’ll also see how people often misjudge their own needs, sometimes placing short-term pleasure above long-term well-being. These errors affect how we value goods—not because the goods changed, but because our perception of their importance shifts. If you've ever wondered why rare art can be priceless while a hard day's labor may produce nothing of value, this lesson is for you. Learn why value is never in the thing—it’s in what it means to you. ❓ Questions Answered in This Video -Why is value subjective and not objective? -Does hard work increase the value of a good? -Why do some expensive-to-make goods have no value? -What really determines the value of a good? -Is the labor theory of value wrong? -How can people make mistakes in valuing goods? -What role does personal judgment play in economic decisions? -Why can the same item have different values for different people? -How does perceived need affect value? -Are reproducibility and production cost reliable measures of value? 00:00 - Introduction to the Subjective Nature of the Measure of Value 00:16 - Subjective Value Explained 01:02 - Labor and Value 01:48 - Reproduction and Value 02:20 - Reproducibility and Needs 03:03 - Errors in Judgement - Why is the Labor Theory of Value Wrong? 03:35 - Human Understanding 04:00 - Conclusion 04:36 - Outro #SubjectiveValue #CarlMenger #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6t3t8l-principles-of-economics-by-carl-menger-chapter-3.2d-the-subjective-nature-o.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Do all goods of the same type have the same value? Not if their quality is different. In this video, we dive into Carl Menger’s analysis of how the quality of goods influences their value, as explained in Principles of Economics, section 3.2C. You’ll learn why not all goods are created equal, even when they serve similar purposes. We’ve already seen that value depends on the importance of the needs a good helps satisfy. But what happens when different-quality goods satisfy needs differently? This section adds a layer of depth to the theory of subjective value. Some goods are stronger, more efficient, or offer more enjoyment than others. For example, a high-quality food may provide the same nutrition as a low-quality one, but much more satisfaction. That makes a difference in value. Menger explains how people match different-quality goods to different needs, using the best goods for the most important purposes, and lower-quality ones for less critical uses—like feeding livestock instead of brewing beer. When two goods meet the same need but with different intensity or satisfaction, people still compare their value—but apply a kind of mental discount to the lower-quality one. Through everyday examples, this video shows how subjective value remains consistent, even in complex situations involving diverse types and qualities of goods. It’s a must-watch if you want to understand how real-world decisions about value are made. ❓ Questions Answered in This Video -How does the quality of a good affect its value? -What are the two types of quality differences in goods? -Can different goods satisfy the same need equally? -How do people assign value when goods differ in quality? -What happens when needs are met in different ways by different goods? -Why do people match certain goods to specific needs? -How is value adjusted when using lower-quality substitutes? -What role does satisfaction play in valuing goods? -How do we compare goods of different quality? -Does the principle of subjective value still apply in complex cases? 00:00 - Introduction to the Influence of the Different Quality of Goods on Their Value 00:16 - Human Needs and Goods 00:37 - Differences in Quality of Goods 01:00 - Value of Goods 01:24 - Quality Differences 01:56 - Assigning Value to Goods 02:21 - Example of Oak Bark 02:39 - Complexities of Different Goods 03:12 - Real Life Application 03:36 - Value of Specific Goods 04:09 - Core Rule for Valuing Goods 04:32 - Outro #SubjectiveValue #ValueTheory #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6t0izl-principles-of-economics-by-carl-menger-chapter-3.2c-influence-of-the-qualit.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why does a bucket of water sometimes have no value—and other times mean life or death? In this video, we explore Carl Menger’s powerful explanation of how the value of goods is tied to the needs they help satisfy. This is Chapter 3.2B of "Principles of Economics", rewritten in simple language for anyone curious about how value really works. You’ll learn why value is never fixed, and why it’s wrong to think that goods are valuable on their own. Instead, Menger shows us that value depends on context—how urgent our needs are, and how much of the good is available. Whether we’re talking about grain, water, or gold, their value comes from the importance of the last need they fulfill. Through thought experiments with island survivors, farmers, and shipwreck victims, this chapter explains the subjective nature of value and introduces the core idea of marginal utility—a concept that would become central to all of Austrian Economics. Whether you're new to economic theory or deep into the Austrian School, this breakdown will help you understand the real meaning of economic value in a way that's both practical and profound. 📚 Based on Carl Menger’s Principles of Economics, this is essential viewing for anyone who wants to know why value is not in things—but in the needs they help meet. ❓ Questions Answered in This Video -What determines the value of a specific good? -Why do some goods lose value when we have more of them? -How is value connected to human needs? -What is marginal utility and how does it work? -Why can water be worthless in a city but priceless in a desert? -How do changes in supply affect the value of goods? -Can luxury goods have more value than necessities? -What makes one unit of the same good more valuable than another? -How does Austrian Economics differ in its theory of value? -Why is the value of goods always subjective? 00:00 - Introduction to Dependence of Individual Needs on Specific Goods 00:15 - Value of Goods 00:56 - Needs and Goods 01:30 - Importance of Grain 02:04 - Value of a Good 02:27 - Value of Water on an Island 03:06 - Needs and Value 03:36 - Bread on a Shipwreck 04:10 - Supply and Demand 04:22 - Value in Society 04:48 - Conclusion 05:22 - Value of Water 05:46 - Outro #SubjectiveValue #CarlMenger #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6syz7f-principles-of-economics-by-carl-menger-chapter-3-2b-the-value-of-goods-for-.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why do goods have different values—even when they seem identical? In this video, we explore how value is measured through the lens of Carl Menger and Austrian Economics. You’ll learn that value doesn’t come from the good itself, but from how it helps satisfy human needs—and not all needs are equal. Survival needs like food, shelter, and clothing are far more important than luxuries or pleasures. But even within essential needs, value changes. The first meal you eat when hungry is vital—it could save your life. But the fifth meal? It’s far less important, maybe even harmful. This decreasing importance explains why the more a need is satisfied, the less value each extra unit brings. We break down how people constantly rank their needs, from life-saving essentials to minor comforts, and how this ranking affects the value they place on goods. This process happens daily, whether you're rich or poor, and it’s the reason goods don’t have fixed values. You’ll also discover how this concept explains real-world choices: Why do people sometimes choose luxury over necessity once their basic needs are met? How do we decide between satisfying hunger or indulging in small pleasures? If you’ve ever wondered why value shifts depending on context, or why the same good can be priceless in one moment and trivial in another, this video will give you the answers. Questions Answered in This Content -Why do identical goods have different values? -How does the importance of needs affect value? -What is the relationship between survival needs and luxury needs? -Why does value decrease as a need is satisfied? -How do people rank and prioritize their needs? -What is marginal utility and how does it relate to value? -Why isn’t value fixed for any good? -How does decision-making influence the value of goods? -Why do people sometimes choose comfort over necessity? -How does subjective value shape economic behavior? 00:00 - Introduction to the Measure of Value 00:12 - The Nature of Value 00:57 - Importance of Needs 01:27 - Applying the Pattern to All Needs 01:44 - Ranking the Importance of Needs 02:16 - Constant Weighing of Needs 02:42 - Outro #MeasureOfValue #SubjectiveValue #MarginalUtility

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6sl3v5-principles-of-economics-by-carl-menger-chapter-3.2a-difference-in-importanc.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What gives something value? Is it usefulness, rarity, or something else entirely? In this video, we explore The Theory of Value through the insights of Carl Menger and Austrian Economics. You’ll discover that value doesn’t come from the good itself—it comes from human needs and the awareness of scarcity. A good becomes valuable when people recognize they depend on it to meet their needs—and when there’s not enough to satisfy everyone. If a resource is abundant, like air or river water, it may be useful but holds no value. Why? Because losing some of it doesn’t impact anyone’s well-being. But when supply drops below demand, every unit suddenly matters. That’s when value appears. We’ll also clear up a common confusion in economics: usefulness or utility is not the same as value. Many goods are useful, but only scarce goods are truly valuable. This distinction is key to understanding how people act in markets and daily life. Value isn’t fixed, objective, or inherent in goods—it exists only in the minds of individuals based on their situation. When needs change or supply shifts, value can appear or disappear overnight. If you’ve ever wondered why some things are priceless in one situation and worthless in another, or why economists talk about “subjective value,” this video will give you clear answers. Questions Answered in This Content -What is value in economic terms? -How does scarcity create value? -Why don’t abundant goods have value? -What’s the difference between usefulness or utility and value? -Can value change over time or place? -Why is value considered subjective in Austrian Economics? -How does awareness of scarcity influence human behavior? -Why do some economists confuse use value and exchange value? -Does value exist independently of human judgment? -How can people assign imaginary value to useless things? 00:00 - Introduction to the Theory of Value 00:11 - Economic Activity and Value 00:52 - Scarcity and Value 01:41 - Water as Economic Good or Non-Economic Good 02:24 - Usefulness or utility vs. Value 03:01 - The Relationship Between Goods and Needs 03:47 - Conclusion #TheoryOfValue #SubjectiveValue #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6sjhwr-principles-of-economics-by-carl-menger-chapter-3.1-the-theory-of-value.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What is wealth, really? Most people think of wealth as having a lot of valuable things—but in economics, it’s not that simple. In this video, we explore the true meaning of wealth through the ideas of Carl Menger and Austrian Economics. You'll discover that wealth isn’t about owning objects—it’s about owning scarce goods. Only goods that are limited compared to demand count as part of your wealth. Abundant goods, like air or sunlight, don’t belong to anyone’s wealth because they’re freely available to all. But here’s the twist: if something becomes too abundant, it stops being part of wealth altogether. Imagine mineral water turning from rare to plentiful—suddenly, it no longer adds to anyone’s wealth. This leads to a surprising truth: wealth depends entirely on scarcity. We also dive into common misunderstandings, like the idea of "national wealth." Is a country truly wealthy just because its citizens own many goods? Or is it just a collection of private wealths with no direct link to overall prosperity? We’ll explain why wealth isn’t an absolute measure of well-being and why true prosperity would mean a world where wealth becomes unnecessary—because everyone’s needs are fully met through abundance. If you’ve ever wondered how economics defines wealth, why scarcity matters, or why increasing goods can sometimes reduce wealth, this video will give you clear, insightful answers. Questions Answered in This Content -What is the true definition of wealth in economics? -Why do only scarce goods count as wealth? -How can increasing goods actually reduce wealth? -What happens when a good shifts from scarce to abundant? -Is national wealth a real economic concept or just a statistic? -How does wealth relate to overall prosperity and well-being? -Why don’t abundant goods like air or water count as wealth? -What’s the difference between private wealth and collective wealth? -Can wealth exist without scarcity? -How should we interpret "national wealth" correctly? 00:00 - Introduction to Wealth 00:10 - Definition of Wealth 00:47 - The Paradox of Wealth 01:28 - The Difference Between Property and Wealth 01:45 - Economic Actors and National Wealth 02:36 - Outro #EconomicWealth #ScarcityExplained #AustrianEconomics

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6shr9n-principles-of-economics-by-carl-menger-chapter-2.4-what-is-wealth.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What causes people to treat some goods as precious while ignoring others? In this video, we explore the real roots of human economic activity through the lens of Austrian Economics and Carl Menger’s Principles of Economics. By comparing needs and available resources, we reveal why scarcity—and not the physical nature of a good—determines whether something becomes an “economic good.” Discover how the ever-present gap between what people want and what’s available leads to careful decision-making, competition, and, ultimately, the development of property rights. You’ll see why property isn’t a random human invention, but a direct response to the reality of limited goods. We’ll also look at how abundance flips the script—when there’s more than enough for everyone, goods become “non-economic,” and sharing comes naturally. As society evolves and populations grow, goods that were once freely available—like wood, land, or even water—can become scarce, changing their economic status. But what about goods of different qualities, or resources managed in anticipation of future scarcity? We break down these nuances and explain how both basic (lower-order) goods and the tools used to produce them (higher-order goods) become part of the economy only when they help meet unmet human needs. Whether you’re curious about the origins of property, the difference between economic and non-economic goods, or how tools and resources gain value, this video provides the foundational answers in simple terms. Questions Answered in This Content -What makes a good “economic” or “non-economic”? -Why do property rights and competition arise in society? -How does scarcity lead to the creation of economy and law? -What happens when goods are abundant instead of scarce? -Can the economic status of a good change over time or place? -How do higher-order goods gain their economic value? -Why is the value of a good not based on the cost of making it? -How does the anticipation of future scarcity affect current behavior? -Why do people sometimes treat abundant goods as if they were scarce? -What examples show the transformation from non-economic to economic goods? 00:00 - Introduction to the Origin of Human Economy and Economic Goods 00:14 - Needs and Available Quantities 00:38 - Three Possible Situations 01:15 - Careful Behavior 01:36 - Economy and Economic Goods 02:10 - Property Rights and Law 02:31 - Scarcity and Property 03:04 - Abundance and Non-Economic Goods 03:26 - Lack of Concern about non-economic Goods 03:46 - Natural Communism 04:17 - Scarcity vs. Abundance 05:03 - Transformation of Goods 05:40 - Supply and Demand 06:10 - Restricted Access / Created Scarcity 06:31 - Anticipation of Scarcity 07:04 - Difference in Quality 07:39 - High-Quality Parts 08:26 - Higher-Order Goods 08:57 - Human Needs 09:29 - Conclusion #AustrianEconomics #PrinciplesOfEconomics #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6sgb6x-principles-of-economics-by-carl-menger-chapter-2.3-human-economy-and-econom.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How do we know if we have enough to meet our needs—not just now, but in the future? In this video, we explore Carl Menger’s explanation of how people estimate and track the available quantities of goods, a key part of making any economic decision. Menger shows that long-term planning depends not just on knowing what we need—but also on knowing what we already have. Whether it’s a farmer planning for winter, a merchant restocking inventory, or a government surveying national resources, understanding the available supply of goods is fundamental to human prosperity. This isn’t just about counting what you own. As economies grow and become interconnected, people depend more and more on what others own through trade. That’s where stock tracking becomes crucial. In simple societies, this might mean basic awareness. In advanced ones, it leads to entire industries built around gathering, updating, and forecasting inventory data. Businesses don’t wait for government reports—they hire experts, subscribe to commercial data providers, and analyze forecasts to make informed choices. Menger’s insight still applies today: No economy can function without knowing what’s available. The more precise and timely that knowledge is, the better people can prepare, act, and thrive—even under uncertainty. ❓ Questions This Video Answers: -Why is tracking available goods essential for economic planning? -How do individuals and businesses estimate stock levels? -What role do private data services play in modern economies? -Why can’t governments alone track all inventory? -How does uncertainty in stock data affect economic decisions? 00:00 - Introduction into Available Quantities of Goods 00:13 - Importance of Knowing the Goal 00:38 - Importance of Knowing Available Resources 00:58 - Measuring Available Goods 01:34 - Awareness of Ownership in Societies 02:11 - The Role of Middlemen 02:42 - Government Surveys 03:08 - Limitations of Government Data 03:24 - Focus of Government Tracking 03:43 - Private Information Systems 04:16 - Commercial Reports 04:36 - Conclusion 04:50 - Outro #InventoryEconomics #SupplyPlanning #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6scyz1-principles-of-economics-by-carl-menger-chapter-2.2-available-quantities-of-.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What drives our demand for goods—and how can we predict what we’ll need in the future? In this video, we dive into Carl Menger’s analysis of human requirements in Principles of Economics. Menger explains that human needs begin with first-order goods—the essentials like food, shelter, and clothing. Our demand for higher-order goods—like tools, land, and machines—only exists if we still need to produce those first-order goods. But how do we plan for future needs when we can’t fully predict them? Menger shows that while exact needs may be uncertain, humans still plan ahead using experience, probability, and caution. We stock medicine, build homes big enough for future families, and governments construct roads and schools for the next generation. This forward-thinking behavior defines real economic life. Another key insight is that production goods only have real demand when all complementary goods are available. You can’t make bread with just flour—you need labor, tools, and more. If one piece is missing, the entire chain breaks down, and theoretical demand becomes useless. Timing also matters: goods must be available in the right period to meet specific needs. From shoe factories limited by leather shortages to farmers missing harvest deadlines, Menger reveals how understanding what we need, when we need it, and what’s missing is central to managing resources in any society. ❓ Questions This Video Answers: -What are first-order and higher-order goods? -How does uncertainty affect future demand planning? -Why are complementary goods essential for production? -What makes demand “effective” or inactive? -How does timing affect the usefulness of goods? 00:00 - Introduction to Human Requirements 00:12 - First-Order Goods 00:42 - Predicting Future Needs 01:36 - Preparing for Uncertainties 02:18 - Growth and Change of Needs 03:12 - Summary of Human Needs 03:25 - Higher-Order Goods 04:10 - Example of Complementary Goods 05:02 - Misunderstanding Complementary Goods 05:55 - The Importance of Time 06:59 - Outro #EconomicDemand #ProductionPlanning #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6sbmhh-principles-of-economics-by-carl-menger-chapter-2.1-human-requirements-in-ec.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html How do humans ensure survival—not just for today, but for the future? In this video, we explore Carl Menger’s powerful explanation of economy and economic goods from Principles of Economics. Human needs are not just passing desires—they are rooted in our nature. If they’re not met, we don’t thrive… we suffer. That’s why the most basic goal of economic life is to secure the goods that meet those needs, both now and later. Menger explains that it’s not enough to react when needs arise. By then, it’s often too late. True economic success means planning ahead—knowing what goods you’ll need in the future and making sure you can access them in time. This is what separates advanced societies from primitive survival: they anticipate needs months, years, or even generations in advance. From hunters preparing before hunger strikes to factories producing clothes for future seasons, modern life is full of systems designed to meet future demand. And that planning depends on two things: knowing what your future needs will be, and knowing how much of the needed goods you already have—or can get. This section lays the foundation for understanding the entire structure of economic activity. It all begins with a simple, urgent question: What do I need—and how do I make sure I have it when it matters? ❓ Questions This Video Answers: -Why is planning ahead essential to human survival and prosperity? -What is the difference between need and demand? -How do advanced societies prepare for the future? -What are the two things people must understand to plan effectively? -Why is reacting to needs too late in many cases? 00:00 - Introduction to Economy and Economic Goods 00:10 - Human Needs 00:30 - Requirements 00:55 - Planning Ahead 01:47 - Long Term Provision 02:10 - Preparing in Advance 02:30 - Securing Goods over Time 02:58 - Economic Planning 03:14 - Conclusion 03:32 - Outro #EconomicPlanning #HumanNeeds #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6s8x31-principles-of-economics-by-carl-menger-chapter-2.0-economy-and-economic-goo.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What does it really mean to own something? And why is ownership about more than just having stuff? In this video, we explore Carl Menger’s powerful insight into property and the ownership of goods from Principles of Economics. Menger shows that real well-being doesn’t come from owning luxury goods alone—it comes from owning a balanced set of goods that together meet all essential human needs. Even someone living in a palace can suffer if they lack basic food, while someone in poverty still needs shelter and clothing to survive. Goods don’t work in isolation. Their usefulness depends on how they complement one another. A coat is helpful only if you also have food and shelter. This interdependence becomes obvious in self-sufficient lifestyles, but it's just as real in modern economies—where trade masks the direct link between ownership and needs. According to Menger, ownership is not random. The set of goods a person controls is structured to reflect their survival and well-being goals. Add or remove goods without understanding their role in that structure, and you risk destabilizing the entire system of support that person relies on. By understanding ownership as a system—not a pile of assets—we gain a clearer view of how economics works on both a personal and societal level. ❓ Questions This Video Answers: -Why is a single good useless without others to support it? -What does Menger mean by the “ownership of goods”? -How do needs determine what goods a person must own? -Why can removing or adding a good cause harm? -How does trade affect our perception of ownership? 00:00 - Introduction to Ownership of Goods 00:09 - Human needs 00:41 - Interdependence between Goods 01:00 - Modern Economics 01:28 - Sets of Goods 01:41 - Ownership of Goods 02:04 - Outro #OwnershipEconomics #CarlMenger #HumanNeeds

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6s5ai9-principles-of-economics-by-carl-menger-chapter-1.6-ownership-of-goods.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Is the division of labor really the main reason societies become wealthy? Or is there a deeper cause behind human prosperity? In this video, we explore Carl Menger’s critique of Adam Smith and his powerful insight into the true roots of economic progress. While Smith emphasized the division of labor as the driver of productivity, Menger agrees only partly. He argues that while labor division is important, the real engine of prosperity is humanity’s growing ability to understand and control production through the use of higher-order goods. Menger illustrates this with a clear contrast: a tribe may divide tasks well, but if all they do is gather what nature provides, their wealth remains limited. True prosperity begins when people stop passively collecting and start actively producing—using tools, machines, and knowledge to transform raw inputs into finished goods. As societies climb the chain of production—from clubs to bows, from hunting to farming, from manual tools to industrial systems—they create new goods, new jobs, and new wealth. Labor division follows this growth, not the other way around. The key insight: Prosperity is caused by knowledge—by understanding the causes of production and learning to control them. Labor division supports this, but it is not the root. ❓ Questions This Video Answers: -What did Adam Smith get right—and miss—about prosperity? -Why is division of labor not enough to explain wealth creation? -How do higher-order goods increase human control over nature? -What role does knowledge play in economic development? -How does production evolve as societies grow? 00:00 - Introduction to Causes of Human Prosperity 00:12 - Adam Smith and the Division of Labor 00:45 - Division of Labor in Indigenous Tribe Example 01:14 - Society Using Higher-Order Goods 01:41 - Progression of Tools and Techniques 02:00 - Abundance of Goods and Labor Division 02:24 - Basic Economies vs. Understanding Cause and Effect 02:51 - Human Will and Natural Law 03:09 - How Civilization and Human Progress happens 03:34 - Outro #WealthCreation #EconomicProgress #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6s3uzr-principles-of-economics-by-carl-menger-chapter-1.5-causes-of-human-prosperi.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Why is time such a critical part of economics—and what role does uncertainty really play in value? In this video, we dive into Carl Menger’s insights on time, production, and error from Principles of Economics. Menger shows that higher-order goods—like land, tools, or raw materials—don’t satisfy our needs immediately. They must go through a step-by-step process to become usable, lower-order goods. This transformation always takes time. Whether it’s a meal or a forest, production delays are unavoidable. This delay introduces something powerful—and dangerous: uncertainty. Unlike finished goods, where quantity and quality are known, production outcomes are never guaranteed. Crop failures, bad weather, or unknown variables can ruin even the best-prepared plans. The less we control or understand the elements in production, the more unpredictable the result. Menger explains that this uncertainty is not just a minor risk—it’s a fundamental part of economic life. It shapes how people plan, invest, and assign value to resources. For example, two farmers may use the same inputs, but only one gets a successful harvest. Why? Because knowledge and control over natural forces like weather remain limited. This section lays the groundwork for understanding how expectations, risk, and future needs shape value. Watch this video to discover why every economic decision involves time—and how that time always comes with uncertainty. ❓ Questions This Video Answers: -Why is time essential to understanding production and value? -What makes higher-order goods uncertain in outcome? -How does human knowledge (or lack of it) affect economic decisions? -Why do natural factors like weather feel like chance in economics? -What role does uncertainty play in the value of goods? 00:00 - Introduction to Time and Error in the Production Process 00:13 - Time and Production 00:40 - Transformation and Delay 01:19 - Time Variance and Future Needs 01:45 - Certainty and Uncertainty 02:24 - Predictability and Risk 02:49 - Control and Understanding of the Production Process 03:30 - Predictability and Uncertainty 03:50 - Economic Impact Knowledge about Production Processes 04:06 - Outro #EconomicUncertainty #TimeInEconomics #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6s2asx-principles-of-economics-by-carl-menger-chapter-1.4-time-and-error-in-the-pr.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html Can a product still be a “good” if you can’t actually use it? In this video, we explore Carl Menger’s deep insights into what gives goods their economic value—and more importantly, what makes that value disappear. In Principles of Economics, Menger explains that higher-order goods (like tools, machines, and raw materials) only have value if they contribute to creating lower-order goods (like bread or clothing) that directly satisfy human needs. But there’s a catch: if one essential complementary good is missing, the whole chain breaks down. This happens in real life more than we think. During the American Civil War, the shortage of cotton caused textile factories across Europe to shut down—even though all other goods and labor were available. Similarly, harvests rot in fields when there aren’t enough workers. These examples show that no good stands alone. Its value depends on the whole system working. Menger also shows that value can disappear if human needs change. If no one wants tobacco anymore, every product and job tied to it collapses. This isn’t failure—it’s how economics works: value only exists if human needs are met, directly or indirectly. This video will help you see the hidden structure behind markets, production, and why some things lose value overnight. ❓ Questions This Video Answers: -Why do higher-order goods lose value when complementary goods are missing? -How does a single missing input affect an entire production chain? -What happens when human needs disappear? -Why is labor considered a complementary good? -How do real-world events (like wars or pandemics) disrupt economic value? 00:00 - Introduction to The Laws of Governing Goods Character 00:15 - Goods of the First Order 00:49 - Important condition to be a good 01:22 - Goods for other uses 01:38 - The rule of higher order goods 02:06 - The Entire Chain of Complementary Goods 02:20 - The American Civil War Example 02:47 - The Reverse Example 03:13 - Production of goods in advanced economies 03:46 - The Value of Higher-Order Goods 04:02 - Tobacco example 04:23 - How the System Works 04:36 - Goods with Many Different Needs 04:50 - The Quinine Bark Example 05:11 - Conclusion 05:30 - Outro #ValueChainEconomics #ComplementaryGoods #CarlMenger

You want to read the book? Get it here: https://amzn.to/4cCPIQs Watch the next video in this series: https://rumble.com/v6rzg9n-principles-of-economics-by-carl-menger-chapter-1.2-the-causal-connection-be.html Watch the video series from the start: https://rumble.com/playlists/I48mBTB4w2c Watch our video about Carl Menger: https://rumble.com/v61z0l2-carl-menger-the-father-of-austrian-economics-and-subjective-value.html What makes something a “good”? Is it just something we buy or sell—or is there more to it? In this video, we break down Carl Menger’s definition of goods from his classic work Principles of Economics. Menger, the founder of the Austrian School of Economics, explains how everything in the world, including economic value, follows the principle of cause and effect. If a thing satisfies a human need, has the right qualities, is known to be useful, and is within our control—it qualifies as a real good. But many things people value don’t meet these conditions. Think of magic potions, superstitions, or products sold for fake illnesses. These are imaginary goods—valued only because of false beliefs or misinformation. Menger goes further, challenging modern economists who treat things like brands, customer bases, or monopolies as vague “relationships.” He argues these are real goods, too—because they produce value through useful human actions (or inactions). By understanding the true nature of goods, we can separate real economic value from illusions. This knowledge leads not only to better personal choices, but also to a more rational, prosperous society. If you want to understand the roots of Austrian Economics and how it all begins with defining what a “good” really is—this is where to start. -What qualifies something as a “good” in economics? -What are the four conditions for something to be considered a good? -What are imaginary goods, and why do people value them? -Why do some economists hesitate to call brands or customer bases “goods”? -How do actions or inactions by others create real economic value? 00:00 - Introduction to the Nature of Goods 00:12 - Cause and Effect 00:56 - What are Goods? 01:20 - Conditions for Goods 01:42 - Imaginary Goods 02:23 - Real Goods VS Imaginary Goods 02:43 - Relationships and Conditions 03:17 - Useful Actions 03:51 : Types of Goods 04:29 : Outro #AustrianEconomics #CarlMenger #PrinciplesOfEconomics