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Showing posts with the label fact/value distinction

Fact and Value

 In showing the complicated nature of the distinction between fact and value, Amartya Sen introduces the proposition, " a government should not increase the money supply more rapidly than the increase in national production. " That statement has a "should" in it so a simple application of Hume's guillotine suggests that this is a value statement. Thus it cannot be demonstrated to be so by facts.  Yet of course people advocating it will have facts to discuss, as will those who oppose it.  I'll expand upon Sen's point here a bit.  I believe that increasing the money supply beyond productivity in the underlying economy produces inflation and I hold inflation to be a bad thing because I believe the smooth functioning of a price system is a good thing. That good thing has various good consequences for buyers and sellers alike, and for their dependents.  In principle IF you could persuade me that the smooth functioning of a price system is NOT a good thing, th...