13-4d6 The economist must take account of all the interrelations in the economy and recognize that money costs are determined by final prices reflecting consumer demands and valuations

Praxeology is concerned with the laws of human action. Economics is a subdivision of praxeology, and it’s concerned with the totality of men as both consumer and producer—totality both as the individual and in the aggregate.

“The economist, instead of viewing the economy from the standpoint of an individual entrepreneur, must see how money costs are determined and, taking account of all the interrelations in the economy, must recognize that they are determined by final prices reflecting consumer demands and valuations.” – Murray Rothbard

As well as what would’ve happened in the absence of change (e.g., see 13-5g1 The ERE (evenly rotating economy) is not the condition but the effect of thought experiment).

Related:

• The money price allows you to be in contact with other value scales—you experience how you could’ve been otherwise with money, at least to the extent of the market. Put differently, the contingency of being is mediated (or bridged) with money:
  • 1-2g2s7d A history has to be explained in multiversal terms. The true explanation of what happened involves many other instances of me.revisit
  • 1-2g2s8 The unobserved parts of the wider phenomenon have in no way affected what we observe, yet they are essential to its explanation. Causation doesn’t exhaust explanation.
  • 13-6a1 Without knowledge, self-identity is no stronger than the identity between any two people
  • 13-1a3a2e1 The greater the extent of the market, the greater the need for money
• Why praxeology must be content-independent:
  • 13-6d Praxeological laws apply regardless of the content of value scales—regardless of the nature of ends pursued
• But the economist can only guess—his explanation cannot be verifiedrevisit
  • 1-2g2j1b Accuracy in virtual reality = The relationship between theory and experiment in science. That is, you can never prove-experience-measure-certify that it’s accurate-true program.
  • 2-1a4 ‘Language instinct’ - Language can’t exhaust mind
  • 5-1b1a2c0 No theory can exhaust reality
  • 7-1b2b1 The best is seeing the front by yourself, because inexplicit and unconscious ideas exist between heads not within them
  • 13-4d4e All the consumer has to do is to think about himself—in contrast, the entrepreneur (e.g., producer, investor, operator) is primarily about others
  • And he himself is a part of the phenomenon that needs to be explained (i.e., what Elie Ayache calls a slip):
    • 3-1c2d Human knowledge is hierarchically structured. It’s a list but also about how things on the list relate to one another. The sum of what we know is greater than all things put together.
    • 5-1b1a2c0.1 Perfect replication is impossible