2 ms·

The creation of value is derived from consumption of that value, no? If something is created and has value then someone will be a consumer of such, increasing s

by piva00 4y ago

The creation of value is derived from consumption of that value, no? If something is created and has value then someone will be a consumer of such, increasing spending. If something of value is created and no one consumes that it's an oxymoron. Creation of value only exists through spending. If money is more valuable later I will hold onto my money for longer instead of spending, velocity of money goes down, less money being traded hands mean more people are less willing to part with their money to invest in some value-creation as that's riskier than holding onto cash that will be more valuable in the future. Rinse and repeat.

WalterBright 4y ago
> Creation of value only exists through spending. Nope. If I grow carrots, I create value. No spending required.
- piva00 4y ago
  Sure, you created value, for whom? In the case there's no spending: if it's for you and immediate neighbours there's a limit to that value, you can just feed so many carrots to people, over that threshold you are just creating waste, not value. You can donate them but that requires transportation and incurs costs, someone has to take those costs, which will cause spending. So it's tied to spending, if you can't sell carrots then what value do you have for the rotting ones you can't eat? Value does not exist in a vacuum.
  - WalterBright 4y ago
    I trade my extra carrots with the shoemaker for fixing my shoes. We both create value.
    - bruce511 4y ago
      That is fundamentally spending. He is spending his time to get your value. In practice we can basically ignore this from "economy" calculations though. While it happens, it's such a tiny part of the economy as to be irrelevant. Equally growing carrots in itself requires spending. Certainly your time, but also input costs with fuel, fertiliser, water and so on. Of course it is possible to live "off grid" and be totally, or mostly, self sufficient. Effectively to live "outside the economy". Again, while this happens, it's vanishingly rare (and those folks don't care about inflation)
      - WalterBright 4y ago
        > He is spending his time Now you're shifting meanings of "spending".

by piva00 4y ago

WalterBright 4y ago

> Creation of value only exists through spending. Nope. If I grow carrots, I create value. No spending required.

piva00 4y ago
Sure, you created value, for whom? In the case there's no spending: if it's for you and immediate neighbours there's a limit to that value, you can just feed so many carrots to people, over that threshold you are just creating waste, not value. You can donate them but that requires transportation and incurs costs, someone has to take those costs, which will cause spending. So it's tied to spending, if you can't sell carrots then what value do you have for the rotting ones you can't eat? Value does not exist in a vacuum.
- WalterBright 4y ago
  I trade my extra carrots with the shoemaker for fixing my shoes. We both create value.
  - bruce511 4y ago
    That is fundamentally spending. He is spending his time to get your value. In practice we can basically ignore this from "economy" calculations though. While it happens, it's such a tiny part of the economy as to be irrelevant. Equally growing carrots in itself requires spending. Certainly your time, but also input costs with fuel, fertiliser, water and so on. Of course it is possible to live "off grid" and be totally, or mostly, self sufficient. Effectively to live "outside the economy". Again, while this happens, it's vanishingly rare (and those folks don't care about inflation)
    - WalterBright 4y ago
      > He is spending his time Now you're shifting meanings of "spending".