On Mar 1, 2010, at 7:41 PM, Mike Beggs wrote:
>
> As for the ‘quantification of human desire’ with marginal utility
> theory – neoclassical economics hasn’t relied on a quantification of
> utility for almost a hundred years. Google ‘ordinal utility’ and
> ‘revealed preference’.
That's because "marginal utility" leads directly (on utilitarian grounds) to socialist conclusions. If marginal utility is a declining function of consumption, then (income being the other side of consumption in the theory) marginal utility is also a declining function of income. It follows that every transfer of income from the wealthier to the poorer increases total utility right up to the point of total equality. The "neoclassical" masters, Marshall and Pigou, explicitly recognized this and accordingly called themselves "socialists." Pareto, and after him all the Friedmans and Stiglers and Beckers, recoiled in horror and fled to "ordinal utility" and "revealed preference."
Shane Mage
The communist creed: From each according to his ability, to each according to his need.
The capitalist creed: From each according to his gullibility, to each according to his greed.
Joe Stack (1956-2010)