Value judgments reveal preferences unique to each individual.  Every action is an attempt to replace one state of affairs with another.  Someone might prefer a clear sky to a cloudy one, but no action can transform clouds into sunshine.  This limitation is irrelevant to economics, as economics concerns the actions people take, not the impossible transformations they might desire.

A simple declaration of preference—“I prefer A to B”—is meaningless in isolation.  Individuals may state false preferences for any number of reasons, including deceit or social pressure.  Only through action do preferences become observable.  The act of choosing reveals true subjective valuation, as words alone are detached from economic relevance.

Actions are guided by the individual’s belief that the chosen course will improve their condition.  Success is not guaranteed, mistakes are part of action.  Yet, the individual acts based on what they perceive as correct in that moment.  If they believed otherwise, no action would occur.  This correctness is rooted in subjective valuation, not objective truth.

All value judgments are inherently personal and subjective.  People vary in tastes, preferences, and feelings—an undeniable fact of human diversity.  These differences negate the possibility of eternal, universal valuations.  However, there exists a natural law governing human nature, independent of individual preference.  While valuations are subjective, they are often influenced by external forces.

Society shapes the valuations of the masses.  Cultural norms, propaganda, and social environments mold individual perspectives.  Yet, no external influence can render value measurable.  Few individuals develop independent valuations, most act based on what they perceive to be true, even when this perception is shaped by their surroundings.  They act not on absolute truth but on their subjective understanding.

Value is not intrinsic to objects but exists within the individual.  Some find it unsettling to confront the subjectivity of value, but it remains a fundamental truth.  Action reveals value more authentically than words.  Declarations can mislead, but choices demonstrate real priorities.  As the saying goes, “Actions speak louder than words.”

Understanding value as subjective clarifies the motivations behind human action.  It underscores the importance of observing behavior rather than relying on verbal claims.  In the end, value is not in the world around us but within the hearts and minds of those who act.

Reference

Ludwig von Mises; Theory and History