Objectivist theory of value: Difference between revisions

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{{#REDIRECT [[Objectivism}}]]

The '''Objectivist theory of Value''', as proposed by [[Ayn Rand]], explains the [[worth]] of goods and services as a relationship between [[intrinsic]], [[observable]] attributes in nature, [[human]] [[knowledge]] of such attributes, and how such attributes can satisfy the [[subjective]] needs of humans. In contrast with [[Subjective theory of value|subjective theories of value]] and the [[Intrinsic theory of vaule|intrinsic theories of value]] (also called ''objective'' theories, a term that Ayn Rand wanted to use for her own theory), the Objectivist theory of value holds the following:

*'''Reality exists independently of perception:'''

:::''see [[Objectivism (metaphysics)|Objectivism]]''

::Reality exists independent of human perception. If humans did not exist, reality would still exist. Reality has some properties that cannot be changed; but humans can observe, learn and know what these properties are. These properties are said to be [[intrinsic]] to reality.

*'''Humans have unique needs :'''

::By virtue of being alive, humans have needs, which may be unique to each individual. Humans do not exist outside of reality, and have wants and needs to continue living. Some needs may be universal, like water; some needs may be individual, like [[hearing aid]]s. Needs are [[subjective]] because they may change from individual to individual.

*'''Humans survive by reason :'''

::Unlike other animals, humans do not satisfy their needs by [[instinct]] (other than the most basic needs), but by accumulating knowledge about facts and properties of reality, and applying that knowledge to satisfy its needs.

*'''Value is an objective relationship:'''

::Consider the following example of a [[caveman]] in need of meat:

::*The caveman has a ''need'' for fresh meat.

::*The caveman ''observes'' that a rock falling on an animal kills it.

::*After many such observations, the fact that a rock has the property "kills animals", becomes part of the caveman's ''knowledge'' of reality.

::*Because of this knowledge, rocks become ''valuable'' to the caveman as a tool for getting fresh meat.

::The value of the rock as being able to kill animals, requires both the intrinsic and the subjective to be present:

::*The intrinsic property of the rock of being both hard and heavy have to be present. A piece of [[pumice]] will not work.

::*The subjective need for meat has to be present. A hard and heavy rock will be of no value to a vegetarian (although the rock may be of value as a [[grindstone]] to such a person).

::Therefore value is not a quality contained solely in the object, or solely in the mind of the human, but is a relationship between the intrinsic facts of reality, and the subjective needs of humans. The value is said to be ''objective'' because for one particular human, under one particular set of circumstances, the value of an object will always be the same ''to that human''.

==Criticism of the subjective theory of value==

[[Ayn Rand]] was critical of the [[subjective theory of value]] - which is upheld by most self-identified supporters of capitalism - because she did not view humans as irrational beings that suddenly "desire" an object thereby making it valuable. As she argued in her book [[Capitalism: the Unknown Ideal]], one may desire a [[hammer]] to drive nails into wood. The reason the hammer is valuable is because it is heavy, hard, and has a convenient handle to swing it with. So the value in the hammer is a rational decision based on intrinsic qualities of the hammer. But the value is also dependent on our assessment of how the intrinsic qualities of the object can serve our needs. To someone who never needs to hammer a nail, the hammer is worth nothing. This is why it may seem that value is subjective. But the intrinsic characteristics of the object play a part in its value too. A [[tomato]] would be unsuited to nailing, for example. Anyone trying to nail with a tomato would quickly find that it is worthless to that task.

==See also==

*[[Labor theory of value]]

*[[Intrinsic theory of value]]

*[[Subjective theory of value]]

*[[Capitalism]]

==External links==

*[http://www.aynrand.org The Ayn Rand Institute] homepage

[[Category:Economics]]

[[Category:Economic theories]]

[[Category:Objectivism]]

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