Mises Institute Chapter 7. The Equivalence Postulate
Apr 11, 2025
Explore the pivotal role of side-effect goods in driving economic growth and the spontaneous creation of services in market exchanges. Delve into Aristotelian justice, emphasizing fairness in resource distribution and the importance of quantitative equality. Gain insights into market exchanges through the lens of value equality, addressing the significance of property rights. Examine labor as a measure of value, critiquing exploitation within capitalist systems. Finally, uncover how positive externalities contribute to market functionality, challenging traditional economic perspectives.
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Economic Growth Fuels Side-Effect Goods
- Side-effect goods are a natural and essential part of economic growth and market exchange.
- They spontaneously generate gratuitous services within a functioning market economy.
Aristotle's Equivalence Postulate
- Aristotle's equivalence postulate sees justice as quantitative equality in exchanges.
- This implies market exchange should ideally be an equal-value swap with no surplus or loss.
Money Fails as True Common Measure
- There is no real common measure to compare diverse goods like apples and haircuts.
- Money was invented as a practical medium, but it does not solve the fundamental measurement problem.