Bingo

Arnold Kling has rediscovered another Hayek insight:

“Most unoccupied houses have close to zero marginal value to the vast majority of consumers, just as most unemployed workers have zero marginal product to the vast majority of firms.”

The distinction between economic and non economic goods seems lost on any economist who has not read Menger, but this conceptual insight stands as the very first building stone of economic science.

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One Response to Bingo

  1. Ken says:

    Menger sits on my shelf, waiting to be read. Guess I’ll tackle it as soon as I finish _Dreadnought_ and _War and Peace_ (I have read _Economics in One Lesson_ and _Our Enemy, the State_, so I’m not a *complete* tyro…just mostly tyro).

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