The Bitcoin Standard Podcast 310: Principles of Economics Lecture 2: Value
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Jan 27, 2026 A lecture on subjective value and how people assign worth in their minds. Discussion of scarcity forcing choices and the need to economize. Exploration of marginal utility and how each extra unit meets less urgent needs. Contrast between price and value and rejection of labor-based theories of value.
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Value Is Subjective, Not Inherent
- Value is a subjective judgment formed in human consciousness when people compare how goods satisfy their needs.
- Goods gain value only when individuals assess their utility relative to alternatives and scarcity.
Scarcity Creates Economics
- Scarcity (demand > supply) forces economizing and makes economics necessary.
- Economizing means prioritizing needs and maximizing satisfaction from limited goods.
Oil's Value Flipped With Uses And Storage
- Oil was once trash on land and had negative value before engines found uses for it.
- In 2020 lockdowns oil briefly had negative value again because storage capacity collapsed and people paid others to take delivery.
