Value added

This is video I did for my introductory course in economics on Value Added (you will have to set it back to the beginning if you would like to see the whole thing yourself). When I came to write my text, it was an absolute necessity in my own mind that the core piece of understanding was the concepts that surrounded the notion of value added. You will virtually never see any mention of the concept in any modern text other than occasionally in relation to estimating the National Accounts.

But I cannot emphasise enough that it is a proper understanding of value added that transforms someone into an economist. If you don’t get this, you are useless in making judgments about how an economy works or what is needed to improve an economy’s performance.

There were a series of videos that were put together to cover my course material, but these are all covered, and far more comprehensively in my economics text: Free Market Economics: An Introduction for the General Reader.

If you are genuinely interested in what is wrong with modern economics, this is where you can find out. If you would like to understand the flaws in Keynesian macro, this is the book you must read. If you are interested in marginal analysis properly explained, you again need to read this book. Based on the classical principles of John Stuart Mill, it is what is missing today; a text based on explaining how an economy works from a supply-side perspective.

If you sincerely wish to understand how an economy works, other than reading John Stuart Mill himself, this is the place to find out.

1 thought on “Value added

  1. Pingback: Value added - The Rabbit Hole

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