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The entire basis of money is a Pareto Optimality, thus I would amend that statement to be "The real use of money is to buy freedom at someone else's expense."
by malandrew 13y ago
The entire basis of money is a Pareto Optimality, thus I would amend that statement to be "The real use of money is to buy freedom at someone else's expense."
Now it's also possibly that if we view money through the lens of a Nash equilibrium, that in the long term we are doing what is best for all of us by constantly seeking greater productivity. Therefore, "On a long enough time scale, the real use of money is to buy freedom for every one as money is traded with those that can achieve the greatest productivity." Money is the lubricant that permits the human machine to find the most efficient means of production.
- dnautics 13y agoyou should read Debt: the first 5000 years, and you will find that you are wrong; the entire basis of money is NOT Pareto Optimality. The author of this book I think makes a criticism that the economic just-so story of money exists to self-justify economics as a field (while conveniently ignoring that he's doing the same thing for anthropology) but the book is nonetheless an excellent treatment of the muddled history of money.