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> producing nothing of tangible economic value Just because something has a low/zero market price does not mean it has no economic value. It just means it is
by rmrfstar 6y ago
> producing nothing of tangible economic value
Just because something has a low/zero market price does not mean it has no economic value. It just means it is not valued by people with lots of money and their pals in government.
Similarly, just because something has a high market price does not mean it has real economic value. See, e.g. LBO funds and their ridiculous fees.
Market prices are determined as much by market structure as they are by people's preferences.
- nine_zeros 6y agoThis is a very good point. If we extend this to the extreme, lets say only 1 person has 99% of the wealth. The whole economic system will only produce goods that are required by that 1 person and their close associates. Historically, that was a monarch and that led to things like French revolution. I think the US needs one now.