💧💎 The Value Of Things - How Do We Determine It?

How do we determine the value of things? How to explain the "water and diamonds paradox"? The law of diminishing marginal utility gives us an answer! Learn Austrian Economics in a fun way!

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[lidarman]

I think we all want to experience 'diminishing marginal utility' regarding money. :P

[KiyosakiSays]

Money is not the goal. Money has no value. The value comes from the dreams money helps achieve.” – Robert Kiyosaki

[samuelmoraes]

I honestly think this is the most underrated video on YouTube!

[rolesk]

why renarrated? I saw the original video and is really good, don't be ashamed man you do an excellent job :) greetings from Mexico

[j.d.]

Forget the apples and pears comparison, I wanna know where you can go for a walk and end up a farm owner!

[abhinavitsmebellamy]

Thank you, for this. Really well explained!!

[mikesaunders]

seems related to maslows hierarchy of needs...splendid and thought provoking...me gusto !

[skiddykun]

Suppose that you were sitting down at a table. The napkins are in front of you, which napkin would you take? The one on your ‘left’? Or the one on your ‘right’? The one on your left side? Or the one on your right side? Usually you would take the one on your left side. That is ‘correct’ too. But in a larger sense on society, that is wrong. Perhaps I could even substitute ‘society’ with the ‘Universe’. The correct answer is that ‘It is determined by the one who takes his or her own napkin first.’ …Yes? If the first one takes the napkin to their right, then there’s no choice but for others to also take the ‘right’ napkin. The same goes for the left. Everyone else will take the napkin to their left, because they have no other option. This is ‘society’… Who are the ones that determine the price of land first? There must have been someone who determined the value of money, first. The size of the rails on a train track? The magnitude of electricity? Laws and Regulations? Who was the first to determine these things? Did we all do it, because this is a Republic? Or was it Arbitrary? NO! The one who took the napkin first determined all of these things! The rules of this world are determined by that same principle of ‘right or left?’! In a Society like this table, a state of equilibrium, once one makes the first move, everyone must follow! In every era, this World has been operating by this napkin principle. And the one who ‘takes the napkin first’ must be someone who is respected by all. It’s not that anyone can fulfill this role… Those that are despotic or unworthy will be scorned. And those are the ‘losers’. In the case of this table, the ‘eldest’ or the ‘Master of the party’ will take the napkin first… Because everyone ‘respects’ those individuals.

[technodestination]

0 dislikes
This tells everything
Great Job man

[musaran]

Those are basic topics.
But then, too many people seem to forget those fundamentals.

[Izrael_]

Seems like something you need to learn, I mean I thought about it

[IsaacTeyssier]

This is EXACTLY what I needed to hear, tks man.

[ozzyfromspace]

The thing that really confuses me is the thermodynamic energy that goes into producing something. Like Lithium is one of the rarest elements in the universe, despite being reasonably plentiful on Earth. It's really hard to produce from nuclear reactions. Yet it costs far less per kilogram than gold. Could it be that humans don't have the right framework for valuing things? Am I overthinking this? Your input is well appreciated.

[marchordie]

I live in a city and there is no freely available apples here. And since I don't set the cost of bought apples, where does the value come from? Why are some apples more expensive than others?

[MengerMania]

What you describe is really a cessation of wants not marginal utility. Marginal utility occurs when given the choice of several individual apples simultaneously ( at the same time). If you're offered 10 individual apples, the 10th apple has less utility than each of the other 9 apples in the present and not in the future. Apples offered after the first has been consumed represent a different set of choices and values. You make an accurate hint at the subjective nature of value, but you need to research the concept of marginal utility.

[caesq_r]

If everything's value is personally determined, why do we assign the same monetary cost for every object, such as apples?
Ex. a hungry man values an apple at 100$, but a well-fed fellow only values it at 0.50$. Though both need to pay 1$ for it.

[lampardjr]

Will this be a good argument for progressive income tax? why/why not?

[boshiko]

Same thing as passion at crush ? If you get them, you may not like them much as before ...

[flower]

meanwhile the next neighbors join in sayin, eating apple could make you healthier than eating pear! now one apple is worth 3 pears

[cwspartan]

Is there anything exempt from law of diminishing utility?