Menger, Principles of Economics: Utility is the capacity of a thing to serve for the satisfaction of human needs…Our needs, at any rate in part, at least as concerns their origins, depend upon our wills or on our habits. (119) Nietzsche, The Gay Science: Need.—Need is considered the cause why something came to be; but in truth it is often merely an effect of what has come to be. (§205, p. 207) For earlier posts on the connections between Nietzsche and marginalism, and the philosophical dimensions of economic things more generally, see this, this, this, this, this, this, and this.

I’ve been reading and writing all morning about Hayek, Mises, and Menger. And it occurs to me: the moral secret of capitalism, its existential fundament, is not that we are free to choose but that we are forced to choose. Only when we are confronted with the reality of scarcity, says the Austrian economist, only when we must reckon with the finite resources at our disposal, are we brought face to face with ourselves. In deciding how to deploy those limited resources—whether they be time, money, effort—we’re compelled to answer the great questions of life: What do I value? What do I believe? What do I want in this life, in this world? (“Every man who, in the course of […]