Inflation, a term often heard yet seldom fully understood, is an economic phenomenon that impacts virtually every facet of our lives. It affects our purchasing power, the value of our savings, and even our economic outlook. But what is inflation, really, and how does it occur? Let’s dive into a comprehensive analysis of inflation from …
3.4 Inflation: Navigating its Disastrous Consequences Read More »
The Water-Diamond Paradox, a cornerstone of economic thought, questions how two goods with vastly different utilities can have such contrasting values. The paradox highlights the conundrum of a diamond, a luxury item with limited practical use, commanding a high price, while water, essential for life, is relatively inexpensive. If utility is the only thing relevant to …
3.3 Unlocking The Mysteries of Value: The Water-Diamond Paradox Read More »
Austrian economics is a school of economic thought that emphasizes the importance of individual action, market processes, and subjective value.1 At the heart of this approach lies the idea that prices are not determined by objective costs, but rather by the subjective valuations of buyers and sellers in a given market.2 In this article, we …
3.2 Exploring the Distinctions between Cost, Price and Value Read More »
Economics is widely considered by the public as a pseudo-science. I remember even the very little high-school level economics I was taught made little sense. On top of that, I had never witnessed a field of academics where the experts got it so reliably wrong. More often than not, economists would alter their theory to …
3.1 Fundamentals of Austrian Economics: Exploring the Principle of Scarcity Read More »