3 ms·
Money is not really a scarce resource though - we can always print more of it. A million dollars spent on an artwork doesn't mean there are a million fewer $1 t
by tomatocracy 8y ago
Money is not really a scarce resource though - we can always print more of it. A million dollars spent on an artwork doesn't mean there are a million fewer $1 tins of beans made. That's not how the economy works.
- throw0101011 8y agoAn extra million dollar on the piece get spent by many organizations and people involved and increases the production of the resources they want and decreases the allocation of resources to produce things other people want. Unless they store most of it in a bank somewhere and don’t use it, it has effects on the real economy.
- tomatocracy 8y agoYes, it has effects on the real economy (although in the case of these high-value positional goods I'd argue they're rather smaller than you might think - as likely both buyer and sellers are simply swapping for money which otherwise will sit in a bank account so the effects are limited to those imparted by the middle-men). My point was, the economy is not a zero-sum game.
- stephengillie 8y agoMoney is the force carrier for the value field. Humans exchange value, quantized as money, and the value field is stronger in some areas of our world. Like any force carrier, they are fungible, and they are constantly being created and annihilated. Banks emit and absorb them strongly, other organizations less so.