30
Jan
2010
An Oldie But Goodie: Murphy Contrasts the Classical with Modern Theory of Economic Value
This is for the geeks in the crowd… I came across my critique of Kevin Carson [.pdf] for another project, and–like Ralphie from A Christmas Story–was just really impressed with how good my essay was. So if you want to see a straightforward explanation of how the classical economists explained market prices, and why (in my opinion) the modern approach is superior, check it out. The so-called Marginal or Marginalist Revolution was truly an improvement in theoretical economics, analogous to Einstein’s special relativity versus Newton’s classical laws. In other words, the modern theory is more general, and can handle the classical theory’s meat-and-potatoes as a special case.
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