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This article starts of well, but quickly goes south. > In a typical transaction, no market value is created. If I give you an apple and you give me an orange,
by SamvitJ 5y ago
This article starts of well, but quickly goes south.
> In a typical transaction, no market value is created. If I give you an apple and you give me an orange, the total amount of fruit in the economy remains constant. We can’t create fruit by bartering with it. We can only do so by foraging or cultivating an orchard.
Economics 101 begs to differ. Surprised at the level of economic illiteracy in this article (the author should read up on concepts like consumer surplus, labor markets, comparative advantage, economies of scale), given the interesting riddle it began with.
- simongr3dal 5y agoI'm pretty sure Marx would disagree with you on that. A transaction creates no extra value by itself. Just because we end up with a bigger use value through transactions doesn't mean any extra value was added to the world. Funnily enough that was the point of the article, Jeff Bezos letter was conflating different types of values and adding them together because they could all be measured in the same unit, dollars.
- cmeacham98 5y agoRead the associated footnote for that line.