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Those things got cheaper because of advances in supply chains and technology. I mean you can just do the simple mathematics. Suppose there are 100 utility unit
by hahaxdxd123 6y ago
Those things got cheaper because of advances in supply chains and technology.
I mean you can just do the simple mathematics. Suppose there are 100 utility units of wealth in the world - machinery, homes, anything tangible to improve lives - and 100 units of currency to match. Through human labour we produce another 100 utility units. Now each unit of currency can provide me 2 utility units. This is just a system that rewards wealth more than work, even more so than our current system.
Let's look at capital flows. Why in the world would I ever loan to a small business if I could see gains just by holding the money? Why would I ever give companies money in IPOs? There is much less of an incentive to direct capital to those who can be the most productive with it.
- cloudinshape 6y ago> Those things got cheaper because of advances in supply chains and technology. That is why things get cheaper all the time, yes. > Why in the world would I ever loan to a small business if I could see gains just by holding the money? The same reason you do now, which is the only reason you ever lend money: by lending it (to someone more productive than yourself of course) you gain more.
- arcticbull 6y agoYou have to compare it to your risk free return lol
- anythingdude321 6y agothe return on holding is not risk free. in the absence of progress money will be inflationary as there are more people competing for fewer goods. there's no free lunch