Comment: First of all it is Nystrom

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Michael Nystrom's picture

First of all it is Nystrom

And as you requested above, I will go through your argument:

value is subjective.

Correct. Value is determined in the marketplace, and is completely subjective. The determination of value comes about when two participants voluntarily and mutually agree on what that value is.

it might really be worth $1000 because the newspaper owner thinks his writing is worth $1000 per issue.

It might be. But if no one is willing to pay that price for it, it is not. If one person is, then that issue is indeed worth that amount, at that time. Look at the stock market. Prices change everyday. At its IPO, Facebook was worth $45 per share - for a while. Today it is worth much less, based on what people are willing to buy and sell at.

no you don't really need any standard, it's all subjective.

Ideally you need a standard unit of measure. That is the purpose of money (one of the purposes). But yes, all value is subjective. If you're dying of thirst in the desert, a glass of water will be much more valuable to you than if you're at home in the kitchen. For more on "price gouging" see what Ron Paul has to say about it.

oh, by the way, ron paul can afford it, so that's totally a plus.

It is always a plus if you can afford what you want to buy. In this case, in spite of the fact that he has the money, and could conduct a free market transaction, he has instead chosen to go to the UN for an arbitration hearing.

I personally find this disappointing. It is another example of the "Do as I say, not as I do" song and dance that we get from all politicians.

The only way to make sense out of change is to plunge into it, move with it, and join the dance.
- Alan Watts