8.1: Lecture

The reason individuals engage in entrepreneurship is that they hope to produce profits from it. But the impacts exceed just that, as they accrue to society at large. As you watch this lecture, pay close attention to the difference between what Mises refers to as a managerial system and a capitalist system, and the central role that private property plays in this distinction. After watching the lecture in its entirety, reflect on the importance of private property to modern society and standards of living.

KEY POINTS
  • A market exists for owners of capital to perform calculations on their capital's uses.This cannot be replicated without private property.
  • Value is subjective, and subjective valuation happens at the margin.
  • The asymmetry of the process of entrepreneurial speculation is that speculators employ factors of production that are present goods, which are certain, in the hope of producing future goods, which are uncertain.
Last modified: Tuesday, July 27, 2021, 10:23 AM