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Because this isn't a magic fantasy world where you're literally turning cash into bigger cash. When someone says "$5 cash becomes $15 worth of food", they mean
by patrickyeon 7y ago
Because this isn't a magic fantasy world where you're literally turning cash into bigger cash. When someone says "$5 cash becomes $15 worth of food", they mean "I can spend the $5 to get what would cost you $15 to spend". And when it's broken down into "of the $5, $3 goes to paying for food, and $2 goes to paying people", that $2 pays the people who can use the $3 as effectively as the original person could use $15. If you decide to get rid of those people, and just spend the $2 directly on food, you can no longer use it effectively.
- baddox 7y agoI understand that $5 at wholesale prices could be three times as much food than at retail prices. But the example literally says that $5 of cash turns into $15 of food plus $10 of cash.