Neoclassical economic theory reduced the purpose of all human activity to consumption, and the means and methods of satisfying needs to utility. Originally, it defined utility as a measure of pleasure or happiness and later as an order of preferences between alternative consumption options. However, meanings are not limited to utility—whether it is understood as pleasure, happiness or ordered preferences. Moreover, utility is not the same as pleasure: through the process of socialization, people learn to find pleasure in things that would otherwise disgust them (cf. Henrich 2016, pp. 112, 143, 345). Pleasure itself is the result of socio-cultural evolution: people form their “concept of pleasure” as they learn meanings.

Meaning can be both useful and harmful; it does not necessarily have to be associated with usefulness. Objects of needs can be useless meanings: beauty, love, justice, wisdom and many others. Meanings often are not ordered by preferences. When choosing, people take into account opportunities, risks, ethical and aesthetic norms and other meanings that are not ordered among themselves. Moreover, people do not just choose between existing alternatives. The choice process creates alternatives—counterfacts. Counterfacts are formed not only in the space of consumption options, but also in the space of consumption criteria. This means that a person not only chooses what he consumes, but the person himself is also an object of choice: rivalry of needs creates choice, rivalry of people creates selection.

We said in Chapter 1 that the three types of needs (i.e. needs of subsistence, sociality, and self-expression) did not emerge simultaneously. Perhaps it would be possible to establish an evolutionary sequence of their emergence. However, such a sequence does not mean that a person has a respective hierarchy of needs. Clayton Alderfer identified three groups of needs that have no fixed order of preference or hierarchy between them:

“…A human being has three core needs that he strives to meet. They include obtaining his material existence needs, maintaining his interpersonal relatedness with significant other people, and seeking opportunities for his unique personal development and growth” (Alderfer 1969, p. 145).

We develop Alderfer’s approach further and apply it to values as cognitive representations of needs. We identify three groups of values: existence values, communication values and self-expression values. A preference order can be found between values within these groups, but not between the groups.

Existence values are meanings that are ordered among themselves according to preferences, in which the material or utilitarian aspect dominates over social and abstract ones. For example, social status is an existence value insofar as it depends on material wealth, and not on the qualities of a person. The luxurious meal of a medieval monarch was no different from a piece of stale bread in the hands of his last subject, since it served the same purpose—the prolongation of his material, social and psychological existence. In his material existence, man is moved by the consequences of his actions, that is, by effect or utility. The animal principle in man speaks the language of efficiency.

Communication values are meanings ordered among themselves according to preferences, in which the social aspect dominates the material and abstract—for example, friendship or justice. In his social relationships, man is guided by norms, or ??????. The sum of the norms is a socio-cultural order. The social principle in man speaks the language of justice.

Self-expression values are meanings ordered by preferences, in which the abstract aspect dominates over the social and material—for example, dreams, fears, hopes and other creative values. In his personal development, man is guided by virtues and ideals. The cultural principle in man speaks the language of freedom.

Human action is the result not only of individual but also of social choice. A person not only pursues benefits, but also follows his duty and strives for virtues:

“To live is for man the outcome of a choice, of a judgment of value. It is the same with the desire to live in affluence. The very existence of ascetics and of men who renounce material gains for the sake of clinging to their convictions and of preserving their dignity and self-respect is evidence that the striving after more tangible amenities is not inevitable but rather the result of a choice” (Mises 1996, p. 20).

A situation in which a person must choose between utility and morality, between morality and ideal, between ideal and utility, is a situation of existential choice, a choice between conflicting groups of values. People do not maximize utility—they make individual and social choice, and in making choice they create meaning.

Illustration 3. Structure of values

It is difficult to say where cultural selection ends and social choice begins. In many cases it can be the same thing. Social choice is determined not only by the coordination of individual choices, which is often impossible in the absence of a “dictator,” but also by the presence of impersonal norms and ideals. Society is impossible without morality and sublime feelings; it is equally the result of the actions of materialists, utilitarians and pragmatists, as well as idealists, moralists and romantics. People are not reduced to identifying preferences and maximizing utility, they are not “economic” but “socio-cultural” people. Their actions are based not only on calculation, but also on mutual likes and dislikes, on duty and obligations arising from reciprocity. “Morality stems from our sentiments, not our reason” (Collier 2018, p. 35). Human actions cannot be reduced to consumption, human values cannot be reduced to utility.

If utility is an individually necessary set of existence values, then use value is a socially necessary set of these values. Utility arises from the needs and desires of individuals, use value from socio-cultural norms:

“Rene Girard’s hypothesis is crucial for understanding the nature of human institutions and the logic of their functioning. According to this hypothesis, institutions arise from the violence of human desire and their normalizing effect on it arises from their external relationship to the clash of conflicting desires” (Aglietta and Orlean 2002, p. 15).