Scale of Values

Direct Exchange: Summary of “Man, Economy and State,” Chp. 2

This is part two of my summary of Man, Economy and State, by Austrian Economist Murray Rothbard. You can read part one here.

In my summary of chapter one, I talked about Praxeology being the study of human action, and about how humans act, by making use of certain means to achieve ends. Those means, I mentioned, are called goods. Goods need to be produced and it would be inefficient for a man to have to produce all the goods that he would like to utilize.

Chapter two focuses on the direct exchange of goods. Jim might have a product he has no use for, and would like to exchange it for a product owned by James. James, coincidentally, has no use for the good that Jim is seeking, which makes the trade beneficial for both parties. Continue reading

Fundamentals of Human Action: Summary of “Man, Economy and State,” Chp. 1

This is part one of my summary of the classic and massive book, Man, Economy and State, by Austrian Economist, Murray Rothbard.

Praxeology is the study of Human Action. Human Action is defined as purposeful behavior; actions that human beings consciously take, by making use of certain means, to achieve ends in order to end up in a better state then we previously were. All purposeful action can be looked at in this way; from acting on a decision to go from standing to sitting, to acting on a decision to purchase a nicer car. When a person decides he would rather sit than stand and he acts on this desire, he is utilizing the following means in order to end up in a more comfortable state: the chair, labor and time. The act of walking toward the chair is the labor involved, and of course, all action takes place through time. Continue reading