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Okay. The other main point I was trying to make is that both the banana and the money have utility (one for eating and the other for saving/purchasing) but for

by npoc 3y ago

Okay. The other main point I was trying to make is that both the banana and the money have utility (one for eating and the other for saving/purchasing) but for some reason only the banana has intrinsic value? It makes no sense to me. Is it that everything that's useful, with the exception of money, has intrinsic value? Also how do you measure/quantify the intrinsic value? Is it derived from supply vs demand like economic value?

smt88 3y ago
> the other for saving/purchasing This is not what people mean by intrinsic. You can't spend the dollar just because it's a dollar. It requires a huge amount of social structure and (honestly) faith for it to be spendable. You couldn't "use" a dollar if you were the last human on earth. > Is it that everything that's useful, with the exception of money, has intrinsic value? Fiat money, collectibles (like baseball cards), poker chips at a casino, gift cards, credit cards, checks... regardless of how useful they are right now for someone, they have no intrinsic value. Their value is imbued on them by the context of society. > Also how do you measure/quantify the intrinsic value? Is it derived from supply vs demand like economic value? Mostly you don't. It's more of a binary concept. There are situations where companies have to do it, like if they're looking at bankruptcy and need to liquidate assets. For example, if you have 500 tractors and you have no idea how well any of them run, you can calculate the lowest-possible value for the tractor (which would essentially be its intrinsic value) by looking at: - how much is the metal worth? - what are the costs of finding a buyer? - what will a buyer pay for the metal? (Assuming the tractor doesn't operate at all.)
- npoc 3y ago
  Thanks for the explanation. So what I'm understanding so far is that its either a measure or indication (not clear which) of personal usefulness, independent of society. Is that a good summary?
  - smt88 3y ago
    I think it's a decent way to look at it, yes.
    - npoc 3y ago
      Great. So the question is: what is the intrinsic value of intrinsic value? I'm thinking either 0.6 or false.

by npoc 3y ago

smt88 3y ago

> the other for saving/purchasing This is not what people mean by intrinsic. You can't spend the dollar just because it's a dollar. It requires a huge amount of social structure and (honestly) faith for it to be spendable. You couldn't "use" a dollar if you were the last human on earth. > Is it that everything that's useful, with the exception of money, has intrinsic value? Fiat money, collectibles (like baseball cards), poker chips at a casino, gift cards, credit cards, checks... regardless of how useful they are right now for someone, they have no intrinsic value. Their value is imbued on them by the context of society. > Also how do you measure/quantify the intrinsic value? Is it derived from supply vs demand like economic value? Mostly you don't. It's more of a binary concept. There are situations where companies have to do it, like if they're looking at bankruptcy and need to liquidate assets. For example, if you have 500 tractors and you have no idea how well any of them run, you can calculate the lowest-possible value for the tractor (which would essentially be its intrinsic value) by looking at: - how much is the metal worth? - what are the costs of finding a buyer? - what will a buyer pay for the metal? (Assuming the tractor doesn't operate at all.)

npoc 3y ago
Thanks for the explanation. So what I'm understanding so far is that its either a measure or indication (not clear which) of personal usefulness, independent of society. Is that a good summary?
- smt88 3y ago
  I think it's a decent way to look at it, yes.
  - npoc 3y ago
    Great. So the question is: what is the intrinsic value of intrinsic value? I'm thinking either 0.6 or false.