Analysis Quote by Ludwig von Mises
“Monetary calculation is not the calculation, and certainly not the measurement, of value. Its basis is the comparison of the more important and the less important. It is an ordering according to rank, an act of grading (Cuhel), and not an act of measuring. It was a mistake to search for a measure of the value of goods. In the last analysis, economic calculation does not rest on the measurement of values, but on their arrangement in an order of rank.”
About This Quote
Source Book: Human Action, 1949
Value is determined by ranking importance, not by measuring; economic calculation orders goods by preference.
In simple terms: Value is ranked, not measured.
Key Takeaway
Focus on relative importance, not absolute metrics.
Themes
economics
valuation
ranking
Mood
critical
thoughtful
Type
theoretical
philosophical
When to use this quote
- budgeting
- policy making
- market analysis
Key Concepts
subjective theory
preference ordering
price signals
Questions to Reflect On
- How do you decide what is more important?
- Can ranking replace measurement?
A Different Perspective
Ranking can be subjective and contested.
