The Economic Calculation, Subjective – Currency – Accountable

July 2019

SSET 15 – The  ECONOMIC CALCULATION

SUBJECTIVE – CURRENCY – ACCOUNTABLE

This work is aimed at explaining the economic calculation in currency and accounting terms,[1] based on the theory of subjective value, [2] according to the Subjective and Solidarity Economic Theory (TESS). [3]

ECONOMIC CALCULATION

The human calculation implies the human need to calculate. The logical-deductive structure, of the human mind, implies that the action of calculating requires four entities:

  1. The human being who calculates.
  2. The things to calculate.
  3. The dimension that the human being chooses, to calculate the things that participate in it (distance, volume, weight, speed, temperature, etc.).
  4. The unit of measure of the dimension.

Entities that we have developed extensively in the cited work, [4] for that reason we pass directly to the economic calculation.

In economics:

  1. It is the human being who calculates.
  2. The thing to calculate is the subjective value. Economic science is the study of the value. [5]
  3. The dimension of subjective value is the utility, which is governed by the law of decreasing marginal utility of wealth. [6]

Having understood the first three entities, necessary for the economic calculation, we turn to study the fourth: the unit of economic measure, which has been the epicenter of the conflicts between all the currents of economic thought.

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