Masters of Austrian Economics #1: Carl Menger

[@michaelpisciarino5348]

0:30 *Carl Menger* , The Founder of The Austrian School 1:07 “All Things Are Subject To Cause And Effect” 1:48 First Order Goods (Consumer Goods Which satisfy needs) Second Order Goods, Third Order Goods (The Means of Production of First Order Goods) The Value of Second and Third Order depend on the demand for the First Order Good 3:46 _Menger’s Theory of Value_ Goods only attain an economic status if they are scarce 4:59 _Individual Preference Scales_ (Different individual’s have Different scales of preference, constantly subject to change) 7:13 A farmer who produces wheat 8:14 _Satisfying multiple different needs with the same unit_ 9:10 Satisfying multiple needs simultaneously (it can get more complex with more and more variables). 10:12 *Trade or an Exchange*

[@ambruskiss4492]

FUN FACT: Menger was at some point the private tutor of Rudolf, heir to the Austrian throne. His plan was to convert the would-be emperor to laissez-faire principles, and bring about an era of liberty and capitalism in the Austrian Empire. Sadly, above mentioned Rudolf shot himself (and his girlfriend) at his summer house, so the great plan of Menger turned to dust. Instead, we got WW1 when the next prince in line was shot in Sarajevo, and with that the meteoric rise of fascism and socialism. So Menger's influence on the young emperor may have been the last hope to save Europe from the total breakdown in the 20th century.

[@ThinkShink]

Feels horrific, man.

[@svengroot3909]

Reading this makes me so happy that at least some serious freemarkereer couldhavebeen THAT influencial haha

[@jamiehelmore2870]

Virgin Karl Marx vs Chad Carl Menger

[@joshuarichardson6529]

That's kind of funny, as Marx married his way into money so he could work on philosophy instead of getting a real job.

[@porterburkett819]

Bohm-Bawerk, Menger’s student, took on Marx more than Menger himself did.

[@ambruskiss4492]

haha wasn't exactly a virgin was he. rumour has it he even had an illegitimate child from his housekeeper

[@quidnick]

Marx was literally an angry incel who raped his house servant, and kicked her to the curb when she couldn't put out anymore. So much for worker's rights...

[@m.browne2548]

@@quidnick he definitely was an angry man wasn't he🤣🤣 Oh my, sometimes I read Marx just to have a laugh, he is so so bitter.

[@coletrain5667]

Carl > Karl

[@rutessian]

Carl is nice while Karl is evil.

[@GrimFaceHunter]

You can Google "Karl Menger" and discover that it's Carl's son.

[@kingbyrd.1512]

I always get turned on by videos like this. Thanks AA

[@stankynuts8560]

YOU WHAT

[@jkgan4952]

@@stankynuts8560 lol

[@thomasressler]

This was an excellent video. I'm very much looking forward to the rest of the series.

[@dibdap2373]

I'd say videos like this satisfy a certain need.

[@danielalm5209]

Possibly the best series on KZbin

[@saintofchelseathomascarlyl5713]

aa, my teacher, thank you for opening my eyes with this playlist and the 'aa core lessons' playlist the respect i have for you is not measurable

[@TheJarlOfJyttland]

Fantastic video AA, looking forward to the coming episodes.

[@Shapes_Quality_Control]

I love this idea for a series. Very informative. Looking forward to the next one.

[@thecuriousgorilla6005]

Sounds like the Darwin of economics. The first person to come up with the ideas, but they seem so obvious afterwards. It's baffling how anyone can take Marxism/classical econ/LTV seriously. Since this video covers the basic concepts of Austrian thought, I imagine the upcoming videos will contain the more nuanced ideas discovered by later figures.

[@user-hu3iy9gz5j]

It’s not baffling if you consider how dumb some of these people are. Not dumb as in ”stupid” necessarily, but as ignorant by misconceiving the field of economics as something it is not, namely social studies. Strangely enough, simular mistakes are perpetrated against legal studies

[@GerhardMes]

I would suggest to combine - when finished with the masters - all the content in a small booklet with fancy graphs. It is, in my eyes, worth it. Thanks and greetings from Austria.

[@NotDAM-zz4un]

Brilliant video, really looking forward to the rest of this series

[@radiozelaza]

it's incredible but before I watched this video, I had had a dream - almost lucid - in which I explained Menger's principles to a bunch of students and a female professor, ending with a statement "See, the capitalist does not exploit anyone, because workers prefer to sacrifice their free time to work at his factory. Getting exploited is worth more to them than being free.". I guess the video about Bohm-Bawerk triggered that, as I had watched that a few days back.

[@martonk]

Finally a video on Menger

[@scottdunstan4117]

A very concise elucidation. Well done.

[@dartharpy9404]

Strapping in. Thanks AA👍

[@rivenmain2175]

my favorite series together with aa core lessons i can watch it a 1000 times

[@Chris-cd9se]

Repetition will be of great benefit; after a 1000 times you'll know it off by heart.

[@jordanharoldbailey]

Can't wait for the book mate

[@mario1337]

Very nicely condensed. Waiting for the next one!

[@Chris-cd9se]

I got value from the dialogue and the graphics, but the presentation would have been better without the competing (distracting) gratuitous background noise (music). This video is of benefit to me as a companion to Menger's book, Principles of Economics. I too look forward to continuing with the series.

[@requited2568]

Thank you for this, looks to be a great series.

[@patchpeterson2667]

Great video! Look forward to the rest of the series!

[@Staygold1999]

this video is perfect, thank you.

[@apple404404]

I WAS WAITING FOR THIS AA TY

[@lastmanstanding5423]

good idea for the series... looking forward to the next episode...

[@wilius1428]

I see how one could develop videogame AI for markets by these principles.

[@kingbyrd.1512]

Imagine having that in an rts game

[@wilius1428]

@@kingbyrd.1512 It should be something that would simulate each individual. Could work with Dwarf Fortress

[@kingbyrd.1512]

@@wilius1428 Oh god. Imagine that. Ssseth would have to do a new video on that game

[@wilius1428]

@@kingbyrd.1512 I had a similar idea for that when I played Cataclysm: DA. But then work, studies and general laziness got in the way and I put off that idea for the future, with new found enthusiasm maybe I should pick it up again. It's good to dream once in awhile.

[@kingbyrd.1512]

@@wilius1428 I think you should. I would def support and promote that.

[@cb352]

Do you think you will ever do a video on the British Empire?

[@mattlame4976]

@@MisterWebb how are you even verified with only 319 subscribers???

[@vedigregorian4382]

Oh boy, I am so ready for this

[@snizzypoosexcellentspooner2468]

This was really good.

[@ty2010]

SVT is why I'd do better under communism, black market yo. > putting hygiene and food before tobacco *eyeroll*

[@serga7486]

I’ve always wondered why people always include bio info

[@mattymccann]

Exceptional video, Please keep it up!

[@blendedantbga9972]

Thanks for this AA.

[@MoralistaDefinitivo]

Thank you!!!!!!!!!

[@tylerkropp4380]

Very well made.

[@Nick-AngelpeodSeaxisc]

Excellent

[@psychoh13]

The one thing I have an issue with in this video is the use of the "need" as a cardinal number, you just renamed "utils" to "need" which I find weird and I think it's especially misleading when you talk about the two farmers doing direct exchanges. I think it would have been less confusing if you had used two scales of needs being satisfied with ordinal numbering and you had holes in the scale showing that the e.g. the 4th need is left unsatisfied because the farmer needs a horse but the 5th need is satisfied because it requires a cow to satisfy, and so exchanging the cow for the horse would satisfy a higher need than before. Other than that really good video!

[@psychoh13]

@@thotslayer9914 yes… Why?

[@psychoh13]

@@thotslayer9914 I don't know, I usually like political and economic philosophy.

[@AcademicAgent]

These aren't utils because we cannot ACTUALLY calculate utility or needs, the numbers are meant to be entirely ordinal. They are rankings only.

[@vader1a]

What's your other channel I can't seem to find it

[@elijahschnake3863]

The theory of exchange is a fascinating application of the idea of marginal utility. Thanks for this explainer, which book of his would you recommend?

[@AcademicAgent]

He only has one: Principles of Economics from 1871. It's not long either!

[@jommydavi2197]

Can you make a video about his theory of Imputation and the lack of costs of production? I'm confused by that.

[@AcademicAgent]

This is somewhat complex but is explained in Foundations of Economics: www.academic-agency.com/courses/foundations-of-economics

[@jommydavi2197]

@@AcademicAgent Thanks!

[@juliancate7089]

One of my observations of the underclass, which contributes greatly to their seeming inability to escape living paycheck-to-paycheck, is how perverted their hierarchy of needs are. The underclass in the U.S. prefer things like alcohol, tobacco, and illicit drugs on almost the same level as they prefer food. Things like hygiene and health are much lower in the preference scale than they should be. My joke about the underclass in America is that alcohol, cigarettes, drugs, and lottery tickets comprise their four major food groups.

[@juliancate7089]

@Johan Strydom True. Good point. And they seem to lack the ability to learn from experience. There's a term used among psychologists to describe that phenom. but I don't recall it at the moment. Anyway, the importance of it is that the underclass never change their behavior nor preferences.

[@senselessnothing]

Having a high time preference is a great idea when savers are punished with artificially low interest rates. ...that is unless you put your savings with me and I wiz them into high yields!

[@juliancate7089]

@@senselessnothing Lottery tickets. That's my investment plan.

[@senselessnothing]

@@juliancate7089 Normally I'd think it's just a joke, but now I'm not so sure about it. You for real?

[@rutessian]

fuckers!! I didn't get notified for this video.

[@shreder89]

beautiful

[@yorick7705]

Great video, but too short. Finish the lecture and I will get out.

[@FreaKCSGOHacker]

How some people don't understand something like this in modern times yet defend LTV is shocking

[@Sheeshening]

Dope

[@advanced2431]

How does this compare to other capitalist models?

[@baronsilverbaron757]

A clear concise advertisement for Bitcoin

[@baronsilverbaron757]

@Johan Strydom The meaning of "utility" :- 'the usefulness of something, especially in a practical way'. Bitcoin has this. The whole point of Bitcoin is it is decentralised. Gold or commodity backed cryptos are by nature centralised and therefore subject to centralised control out of your hands.

[@ridemyicicle7424]

Wow, zero dislikes Nice

[@Sheeshening]

Mises Institute will be powerful in 10 years max

[@lastmanstanding5423]

I sure hope so... But kinda doubt it... I have a feeling that when the petro-dollar dies they'll blame it on the free markets again (same as during the Great Depression)... And they'll try to implement global communism in green color this time...

[@senselessnothing]

I'm sorry but no. They managed to make it a meme but the republicans have a pseudo capitalistic platform in the first place, no spot for LvMI.

[@djordjebokun882]

Austrian GANG

[@NagdlungNiuak]

People value opium/any opiates over tobacco, and tobacco over food. Salt in only important if you have water and water is of no value of you have no salt. Get it right or everything you predict will fail.

[@senselessnothing]

The schumpeter one will be good.

[@AlexiusRedwood]

He is not part of the austrian school

[@senselessnothing]

@@AlexiusRedwood He studied under bohm von bawerk, so he is.

[@TheApollotd]

#MichaelGoveisnotaSocialist

[@DanHowardMtl]

Aren't the mises people the ones who don't want to measure anything?

[@AcademicAgent]

Dan Howard It’s not that they don’t want to measure anything it’s that everything I’m saying in this video is pretty much incalculable.

[@senselessnothing]

The primary argument is that monetary units are not traditional measurements. You measure things invariant temporally and spatially. Value is subjective and therefore it's outcome, monetary value, does not satisfy what you need it to. Still useful in some cases, dumb at others.

[@DanHowardMtl]

@@AcademicAgent Please respond to this video next! Brexit: Endgame - The Hidden Money, with Stephen Fry kzbin.info/www/bejne/lXmnd5idpb1onas

[@razzberry6180]

Thats a stupid strawman meme that keeps getting thrown around. They do "measure" but they measure ordinally, not cardinally like the neo-keynesians do. Austrians go: "Bob bought an xbox over a PS4. Bob prefers the xbox more." Neo-Ks and MMTs go: "NOOOOOO, YOU HAVE TO SOLVE THE 2ND DERIVATIVE KF THE COTANGENT FUCNTION THEN MULTIPLY BY THE INTEGRATED GDP TO GET THE RATIOOOOOOOOOOOO"

[@DanHowardMtl]

@@razzberry6180 Take it easy dude. Don't get so excited.

[@lordbinkythebuffoon5465]

Urgh but they're all white :c

[@wtfamiactuallyright1823]

You've probably already been pestered on this dude, but just in case you haven't. Potholer54 has done a response to your Maldives video. BATTLLLEEE!!! 😀 No offence buuut, I think you're gonna lose this one.

[@aac74]

But you never address the elephant in the room i.e. why geo-Austrian business cycle theory is more complete and more predictive of the real world business cycle yet no Austrian will have anything to do with it! www.foldvary.net/works/geoaus.html If Menger were alive he would be a geo-Austrian because he did not reject inductive reasoning. Walras is important too because he didn't confuse land with capital, proving that neo-classical marginal utility IS compatible with classical Smith/Ricardo political economy and the only reason classical economic ideas were dumped wholesale was an obsession with making economics all about proving Marxism wrong.

[@dannyboywhaa3146]

The true Austrians Menger and Bonn Bawerk... Von Mises and Von Hayek, respectfully, got it wrong! I’ve watched a lot of videos by Prof Antal Fekete and Sandeep Jaitly - highly recommend! The only intrinsic value in is satisfying human conscience.

[@user-wi3yx3gy2o]

Marx would respond to this video by saying “you are talking about subjective value and market value, which is superficial and artificial, but the REAL value of a thing is labor.

[@AcademicAgent]

He'd be wrong.

[@therealsnufffles6788]

fortnite

[@EcclesiastesLiker-py5ts]

Minecraft