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John Dewey: Theory of Valuation

question 16

Multiple Choice

John Dewey: Theory of Valuation
Dewey begins with a puzzle. On the one hand, the natural sciences do not contain value-expressions. On the other hand, all planned human conduct seems to be guided by the value of our ends. This puzzle Dewey calls "the problem of valuation" - it is the problem of directing human conduct within a naturalistic worldview.
The solution to this problem, Dewey argues, lies in a behavioristic theory of valuation. Take the simple case of a baby crying. The cry, Dewey claims, aims to illicit a certain response in order to bring about a certain consequence. Similarly, when we make value-expressions, we find ourselves in a certain predicament. We then refer to our situation with aversion and an inclination to a different, more amenable, future situation. Importantly, given that such expressions aim to solve a particular problem, value expressions are subject to empirical verification. We can, that is, test the results of our value expressions by seeing how well they guide our action in getting us out of the predicament. The existence of valuations, Dewey maintains, is thus determined entirely by observations of behavior.
There is, Dewey recognizes, a potential objection to this account: namely, it seems to apply to the value of things as means only, and not to things as ends. Without an explanation of why we should value certain ends, the account appears to be objectionably incomplete. In response, Dewey attempts to blur the distinction between means and ends. He argues that we do not have definite ends, which we then devise the means to accomplish. Rather, our means and ends our fluid. If the means to a given end are prohibitively costly we revise our initial assessment of the value of the end. The value of the end is thus bound up with the means. We value the two as a package, not taken separately. The objection, accordingly, loses its force. Dewey therefore concludes that his theory of valuation provides a complete account that is both naturalistically respectable and able to guide human conduct.
-According to Dewey, the most extreme theory of value holds that values are:

Definitions:

Contractual Cash Flows

The cash flows that are specified within the terms of a contract, especially important in the context of financial instruments.

Amortized Cost

The accounting method of gradually reducing the cost value of an intangible asset through periodic charges to expense.

Minority Passive Equity Securities

Investments in equity instruments where the investor does not have significant influence or control over the operations of the investee.

Long-Term

Refers to assets, liabilities, or financial investments that are expected to be realized or mature beyond one year.