11 ms·
Economics is circular. The baker buys shoes from the cobbler, and the cobbler buys food from the baker.
by groundzeros2015 6mo ago
Economics is circular. The baker buys shoes from the cobbler, and the cobbler buys food from the baker.
- padjo 6mo agoYes but the baker doesn't just give the cobbler money to buy bread and take a share in the shoe shop in return.
- philipallstar 6mo agoBut there's nothing wrong with that. It's not a circle; it's an exchange. Like any transaction.
- eagerpace 6mo agoI like this abstraction. If the baker says “I could sell 10x more if only I had shoes that allowed me to bake faster” then the cobbler says, “split the growth with me and I’ll craft you all the shoes you want.”
- groundzeros2015 6mo agoThe claim was circularity is evidence the business activity is fake.
- rhizome 6mo agoThose are tangible items. Here, the baker is buying shoes from someone who says they're going to be a cobbler some day.
- groundzeros2015 6mo agoIt’s no different with services. Making deals with potential cobblers seems like a fine market activity.