Prices are subjective. Said differently, human-placed values vary— we are all different, and dynamic and that’s beautiful. If one stops to think about it, right there alone we can see that nature rightly denies such abominations as “price stability.” Moving prices inform action.
The discussion below, while short, explains how price formation in free market capitalism underpins liberty—a system in which consumer preference is king, not the preferences of a small group.
Firstly, subjective means “existing in the mind of,” and a personal characteristic of an individual. And as one of our greatest U.S. presidents, Calvin Coolidge, taught us, “Liberty is not collective, it is personal. All liberty is individual liberty.”