TAILIEUCHUNG - Luận án kinh tế - "Human and action" - Chapter 13

XIII. MONETARY CALCULATION AS A TOOL OF ACTION 1. Monetary Calculation as a Method of Thinking calculation is the guiding star of action under the social system of division of labor. It is the compass of the man embarking upon production. He calculates in order to distinguish the remunerative | XIII. MONETARY CALCULATION AS A TOOL OF ACTION 1. Monetary Calculation as a Method of Thinking Monetary calculation is the guiding star of action under the social system of division of labor. It is the compass of the man embarking upon production. He calculates in order to distinguish the remunerative lines of production from the unprofitable ones those of which the sovereign consumers are likely to approve form those of which they are likely to disapprove. Every single step of entrepreneurial activities is subject to scrutiny by monetary calculation. The premeditation of planned action becomes commercial precalculation of expected costs and expected proceeds. The retrospective establishment of the outcome of past action becomes accounting of profit and loss. The system of economic calculation in monetary terms is conditioned by certain social institutions. It can operate only in an institutional setting of the division of labor and private ownership of the means of production in which goods and services of all orders are bought and sold against a generally used medium of exchange . money. Monetary calculation is the method of calculating employed by people acting within the frame of society based on private control of the means of production. It is a device of acting individuals it is a mode of computation designed for ascertaining private wealth and income and private profits and losses of individuals acting on their own behalf within a free enterprise All its results refer to the actions of individuals only. When statisticians summarize these results the outcome shows the sum of the autonomous actions of a plurality of self-directing individuals but not the effect of the action of a collective body of a whole or of a totality. Monetary calculation is entirely inapplicable and useless for any consideration which does not look at things from the point of view of individuals. It involves calculating the individuals profits not imaginary social values .

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