What are value judgements in Economics?

In economics, a value judgement is an evaluative statement of how good or bad you think an idea or action is. It is often prescriptive, i.e. a normative view might be expressed that reveals certain attitudes or behaviours toward the world.

Value judgments are important in economics because they can influence economic decision making and policy.

Different economists may make different judgements from the same statistic.

Some real-world examples of value judgements in economics include:

• Whether or not to nationalize an industry: This is a value judgment because it involves a decision about who should own and control an industry. Some people believe that the government should own and control certain industries such as water and sewage, while others believe that the private sector should own and control these industries.
• Whether or not to increase the minimum wage: This is a value judgment because it involves a decision about how much people should be paid for their work. Some people believe that the minimum wage should be increased, while others believe that it should not be increased.
• Whether or not to regulate the financial industry: This is a value judgment because it involves a decision about how much the government should control the financial industry. Some people believe that the government should regulate the financial industry more, while others believe that the government should regulate the financial industry less.

It is important to note that value judgments are not always easy to make. There is often no clear right or wrong answer, and different people may have different values.

Here are some of the key characteristics of value judgments in economics:

• They are subjective: Value judgments are based on personal beliefs and values, rather than on objective facts.
• They are often controversial: There is often no clear consensus on what is the "right" value judgment to make in a particular situation.
• They can influence economic decision making: Value judgments can influence the way that economists and policymakers make decisions about economic policy.