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No,that's econ negative 1. People don't exchange things because they are of equal value, they exchange things because each feels himself better off after the tr
by gweinberg 4y ago
No,that's econ negative 1. People don't exchange things because they are of equal value, they exchange things because each feels himself better off after the trade.
- imtringued 4y agoThat means money makes us lazy because it is superior over goods and we feel worse off when we give up liquidity.
- pas 4y agoand that's certainly happening. money now is better than money later (time value of money, net present value discounting), during economic downturns people don't start buying the dip like there's no tomorrow, even though it's very likely that they would make bank in 5-10 years. (because people are risk averse) similarly we are bad at managing spread out risks (climate change, road traffic incidents)
- boredhedgehog 4y agoThat's why we impose inflation on the money: to make it rot at a comparable rate.
- throwawaymaths 4y agoGive the guy a break. Everyone from Aristotle through Adam Smith and marx made this mistake.
- AussieWog93 4y agoThat's econ negative 2. Most transactions below $100 or so basically happen because monkey brain like shiny banana.
- egberts1 4y agoEcon -3: there is no spoon.