The absence of market discipline in medicine cannot last. Governments and the medical cartel have successfully used fear to maintain control. Fear has kept the masses from rising up. Until now.
Arguments for equal pay are popular in our body politic, but what happens if some of those arguments are based upon the faulty logic of the labor theory of value?
The concept of diminishing marginal utility is the essential building block of economics. But there is a difference in the way this law is discussed by mainstream economics and the Austrian School.
Immense damage has been done to economic theory by the error of believing the "labor theory of value." Our work is not what gives value to goods and services. It's the other way around.
Because people strive to improve their condition, they exchange goods and, in this sense, they create the necessary conditions for the emergence of prices. Prices are simply an unintended consequence of the human quest to improve one's life.
The goal of the human economy is to gain greater control over the means of satisfying human needs. We start with the most immediate needs, but thanks to saving and investment, we can move onward and upward from there.
Menger's contribution is famous beyond Austrian economics, because it was one of the fundamental works of the subjective value theory and of marginal analysis.
Human beings do not have constant value scales, but change their goals constantly as the world around them changes. This habit of changing goals does not make a consumer "irrational."
"Efficiency" has largely been demoted from a useful term of analysis and insight to little more than another warning that the government is about to rip you off with another redistribution scheme.
