What is value and price?
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What is Value and Price
“LA is a place where everyone knows the price of everything and the value of nothing” - La La Land
There is a mass confusion across the land when it comes to value and price. We tend to treat these two terms as synonymous but they are actually quite distinct.
Value is a factor of utility to a user. The value of a rope to a mountain climber will be different than the value of that same rope to a cowboy, though both may pay the same price to the rope seller. How the climber and the cowboy articulate the value of the rope will depend on a number of factors that vary over time.
For the climber, a rope’s value might be the ability it gives him to climb a mountain on Tuesday. On Wednesdays, its value might be its ability to tie his food high into a tree to avoid attracting bears. In Thursday, the rope might be worth his life since without it, he would have fallen off the mountain.
Thus value can only be decided by the person using a thing based on what they intend to use it for. Had the rope been defective, the cowboy might have used the rope for its ability to rope a calf, only to find the rope unable to perform this task due to it being dry rotted. He would then likely take the rope back to the seller and demand a refund, since the quality of the rope sold was not the quality of the rope received.
Price is different from value. Whereas value is a judgment of the usefulness of an item or a service, price is the value someone has for not being able to use that same item or service, usually articulated in the sum of what is exchanged for that loss in ability. Price cannot be divorced from the judgment of the person losing the ability, since it is only they who can understand their own purposes and own plans for achieving those purposes.
The rope maker, having the ability to make ropes, realizes that only having ropes has limited utility when it comes to making dinner. For that he may value the nutritional content of beef steak. He could decide to sell his ropes directly to the cowboy for the price of steak or he could sell the ropes for something else that the cowboy would accept for steak at a later time, such as gold and silver.
For the rope maker, the value of gold and silver, unlike steak, is in its ability to be stored for a long period of time without spoil. Whereas a steak (without refrigeration) would spoil rather quickly, the rope maker may see the nutritional value of his steaks deteriorate over a very short period of time. By holding large amount of gold and a small amount of steak, the rope maker is able to convert the value of his ropes into nutritional value over time, securing his future life.
YOU CANT DICTATE VALUES
This is why it is erroneous to say the value of having and using a fiat dollar is equal to losing it in a sale. Value is the utility of having. Price is the utility of losing. If something is only valuable in losing it, then there is no value in having it.
Of course, one could say, this may be true but the grocery store is accepting dollars for food today. While this may be true, it is no different than saying the value of a gun is in what you can steal with it. The fun isn’t growing the food, building the tractor, or extracting oil from the ground. Using the gun will kill the source of those things, the farmer, the mechanic, and the oil baron, leaving you with a gun you’ll soon turn on yourself to avoid the pains of hunger.
For the past several generations, man has been attempting to dictate values this way, only to be destroying the source of values. This has been a terrible mistake and a misunderstanding of what value is.
While I can assess the value of a rope to me, I cannot dictate the value of a rope to the cowboy. I don’t know how many ropes he already has. I don’t know the nature of his business. I don’t know his ability to take advantage of the utility of the rope. These are questions on the cowboy can answer and in fact the answer to these questions will change over time as he uses the rope and becomes more or less skilled as a cowboy.
Thus, the one thing that is of no value to a person are the values and prices of anyone else. The attempt to force values onto other people is the root cause of many of the ills in our current era. When governments dictating the price of a persons labor (via minimum wage laws) to that same government dictating the value of their services (via taxation), the source of values and price, the judgment of the giver and receiver, is being destroyed.
APPLICATION
I have concluded from this assessment of value and prices that what must be rejected in the world is the irrational attempt to force the judgment of others in their assessments of value and prices. The cowboy cannot tell the rope marker what he ought to charge for the rope. He can negotiate but it’s not his place to force the rope marker to change his mind. Likewise, the rope marker cannot tell the cowboy exactly how he ought to use the rope and for what purposes. All he can do is create the rope and accurately describe what it is.
This brings us to the current state of affairs. Today, the definition of money is being dictated by those with the presumed value of force. The value of services and the price of services are also being dictated. We live in a modern plantation, not made of guns and whips, but of government whims. All one has to do is reject all forms of force to escape this plantation.
Reject all taxes, since they are attempts to force you to accept a price for your money that you do not agree to.
Reject all laws, since they are an attempt to force you to value the wishes of others over your life and property.
Reject fiat dollars, since a fiat is just a number and a number cannot have utility since it has no substance whatsoever.
Reject all contracts secured with fiat dollars, since no man can be forced to honor a contract where no value was given from the other side.
Affirm your self-worth, since your life is the source of your own values.
Affirm who you are. Get to know your body, your mind, and your abilities. Knowing yourself is the first step to knowing what you need.
Affirm your ability to be productive and valuable to others.
Reject anyone’s attempt to take your productivity and energy without paying your price.
“Don’t ask what the world needs. Ask what makes you come alive, and go do it. Because what the world needs is people who have come alive.” - Howard Thurman
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