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So we're bartering with Google. There are a couple problems with this that I can see. First, given that the transaction is not exchanged using dollars, we don'
by jackcosgrove 6y ago
So we're bartering with Google.
There are a couple problems with this that I can see. First, given that the transaction is not exchanged using dollars, we don't know if we are getting ripped off. One of the useful signals that money sends is uniform price discovery. Maybe we as consumers are leaving a lot of money on the table.
Second, it's a gray economy that escapes taxation. If Google can conduct a significant fraction of its business in an untaxed gray zone, while General Motors must account and pay all suppliers for the taxes they must pay to the government, then that's a market distortion in favor of Google. This is why bartering at large scales is illegal, unless of course you're an internet company.
- qeternity 6y agoWhat do you mean “ripped off”? Do you mean you don’t know what Google sells it for? It doesn’t matter, that’s not how trade works. If you’d rather trade your data for free email, search, messaging, etc then you’re not being ripped off. You don’t walk around all day evaluating the rest of your purchases based on COGS, you do it based on the value you receive in return.