3 ms·
> Money is just crystallized work time. The value of a currency is a representation of the faith the holder has in the issuer. Consider QE: a government issue
by politician 5y ago
> Money is just crystallized work time.
The value of a currency is a representation of the faith the holder has in the issuer. Consider QE: a government issues digital payments to banks for billions of currency and the work involved is roughly as complex as sending SMS text messages, and yet for $1B you can buy a really nice yacht and a trip to space.
A paradox? No, we just believe the currency has a value unrelated to any notion of work required to produce it.
- captainmuon 5y agoAs a physicist I learned that different, contradictory theories can be complimentary because they approach the truth from different sides. As an employee,´I cannot buy a yacht. I am free to choose many different jobs that all pay about the same for the amount of effort (or less, if I am unskilled in that field for example). So I think at least at the micro level, the labor theory of value still has some explanation power: It explains why there is no free lunch (for employees), but also why you'll want to have people work for you if you want to make more money.