Principles provide the foundation for the structure of every organization. The principles that an organization espouses consist of the premises upon which the organization builds its organizational structure—the theories of its operation, the values it holds, and its purpose for existence. The effectiveness and efficiency of the organization require the congruence of the other elements of the organizational structure with the organization’s principles.

I will provide more detail on the principles espoused by The Free Market Center in the Economic Principles and the Philosophy sub-sections of the Economic Reasoning section.

Because I have devoted a great deal of space in other sections of this site to explain the principles adopted by The Free Market Center, I want to emphasize the principle that provides the key to a clear understanding of economics and the functioning of free markets:

The subjective nature of value:

1. Individuals provide the only source of value.
2. The only measure of value consists of the ordinal scales of preferences of individuals.

I will expand on the explanation of subjective value many times on this website, for I think one needs to examine the concept from several viewpoints to comprehend it fully.

 

I also direct your attention to the Economic Principle page in the Reasoning section.