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844 pages, Hardcover
First published January 1, 1812
1. Measurement is not the quantification of the properties of an object, event or phenomenon. Nothing has the property of being, say, 1 yard square. Such a designation runs into all sorts of philosophical problems having to do with human sensory perceptions and the epistemological difficulties of determining the inherent properties of what Kant called “the thing in itself.”
2. Rather measurement is the establishment of the position of a thing, event or phenomenon, on a scale. The thing is a property of the scale, not vice versa. When we measure we are ordering things on a scale not determining the properties of a thing. This is the primary Ontological Principle of measurement
3. The scale used in measurement is called a metric, and can have a variety of properties. Metrics, unlike other things, can have properties because they are mathematically defined to have them. Metrics, like all numbers, have a unique mode of existence. We do not ‘find’ metrics in the natural world, we create them. They are both imaginary and incontrovertibly real at the same time. GDP is a metric, economic utility can be a metric if it is specified mathematically, price and costs are metrics.
4. Metrics are expressed in terms of a numeraire, that is a unit of measurement like feet, dollars, utiles, but these should no be confused with the nature of the metric itself which is purely mathematical. For example, the metric of price is one of constant proportions: $2 is exactly twice $1 and half of $4. But $4 of income may not be twice as many utiles as $2. The metric of utility recognizes what economists call declining marginal utility.
5. A metric is what economists call an aesthetic, the more general term used for a criterion for judging value, worth, importance etc. GDP, for example, is an aesthetic that treats increases as beneficial. Unlike utility, benefit is directly proportionate to the ‘place’ an economy is placed on that metric. Such a metric is not required by any scientific or moral method, but it is an aesthetic choice, the most fundamental choice that all economists make. The choice of metric is a work of art.
6. The error in choosing an aesthetic is always greater than the error of measurement on or within an aesthetic. The aesthetic of GDP for example is not necessarily correlated with a metric of ‘National Happiness.’ As GDP increases, National Happiness could conceivably decrease due to pollution, and other environmental degradation. A 1% error in the measurement of GDP (that is enough to make it useless for policy-making purposes) would be far less significant than the error of choosing GDP over the National Happiness measure, for example.
7. An aesthetic itself has a value, that is, is better or worse, depending on how effective it is in expressing the experience of a population. To the degree that an aesthetic is accepted politically as such an expression, it is more or less verified for that population for the purposes of the issues at hand. This can be called the Ethical Principle of the aesthetic. The art of the economic aesthetic is, like all aesthetics, social. In a sense the aesthetic is ‘true’ to the degree it represents the sentiment of a population.
8. The Ethical Principle of the aesthetic implies that its choice can neither be objective nor subjective, only communal. Any attempt to restrict the politics of a community in its choice of aesthetic is the primary source of aesthetic error. The only way in which contrary aesthetics can be reconciled within any community is the the discovery of a synthetic or ‘larger’ aesthetic that recognises the conditions in which these ‘lesser’ aesthetics are relevant. Thus, for example, measurement with a everyday yardstick is perfectly sensible so long as what is measured is not too small or too fast, in which case quantum measures are necessary. This is the Political Principle of measurement.