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Even suggesting that there is a objective value shows your ignorance of basic economics. Economists invented the notion of a utility function specifically to quantify subjective preferences, and the whole underpinning of micro-economics is based on the notion of utility functions.

Just taking your oil example, the value of the things you can produce from it is directly determined by the value OTHERS assign to them. In fact, they are largely determined by the value society assigns to them. If people didn't like driving cars, then that value would plummet. As we all know, driving is risky. If for some reason human risk aversion became very extreme (and note risk aversion is completely subjective), then you would see a drop in the value of things you can produce from oil as people decide they don't want to take the risk of dying from driving.

There is no objective measure of value. What's the value of a dollar? We're off the gold-standard at this point, so it's determined completely by the faith people have in the US government's ability to pay its debts.

Even if we were ON the gold-standard, why is gold valuable? As far as I can tell, it's just shiny and pretty and back in the old days, hard to forge.

<blockquote data-quote="Yike Lu" data-source="post: 51609" data-attributes="member: 4428">Even suggesting that there is a objective value shows your ignorance of basic economics. Economists invented the notion of a utility function specifically to quantify subjective preferences, and the whole underpinning of micro-economics is based on the notion of utility functions.Just taking your oil example, the value of the things you can produce from it is directly determined by the value OTHERS assign to them. In fact, they are largely determined by the value society assigns to them. If people didn&#039;t like driving cars, then that value would plummet. As we all know, driving is risky. If for some reason human risk aversion became very extreme (and note risk aversion is completely subjective), then you would see a drop in the value of things you can produce from oil as people decide they don&#039;t want to take the risk of dying from driving.There is no objective measure of value. What&#039;s the value of a dollar? We&#039;re off the gold-standard at this point, so it&#039;s determined completely by the faith people have in the US government&#039;s ability to pay its debts.Even if we were ON the gold-standard, why is gold valuable? As far as I can tell, it&#039;s just shiny and pretty and back in the old days, hard to forge.</blockquote>

[QUOTE="Yike Lu, post: 51609, member: 4428"] Even suggesting that there is a objective value shows your ignorance of basic economics. Economists invented the notion of a utility function specifically to quantify subjective preferences, and the whole underpinning of micro-economics is based on the notion of utility functions. Just taking your oil example, the value of the things you can produce from it is directly determined by the value OTHERS assign to them. In fact, they are largely determined by the value society assigns to them. If people didn't like driving cars, then that value would plummet. As we all know, driving is risky. If for some reason human risk aversion became very extreme (and note risk aversion is completely subjective), then you would see a drop in the value of things you can produce from oil as people decide they don't want to take the risk of dying from driving. There is no objective measure of value. What's the value of a dollar? We're off the gold-standard at this point, so it's determined completely by the faith people have in the US government's ability to pay its debts. Even if we were ON the gold-standard, why is gold valuable? As far as I can tell, it's just shiny and pretty and back in the old days, hard to forge. [/QUOTE]

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