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  1. #11
    Alexander the Terrible yenom's Avatar
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    Well, see the point is that

    you can trade money for anything
    but you can't trade anything for money

    hence the term money as a medium of exchange is misleading.

    This is what drives people to create things of value that people want and need, because that is what allows individuals to make money.
    On what terms do you define value? The term value is really subjective.

    Gold and currency has been used as a medium of exchange ever since the dawn of time,. But the rise of capitalism has its roots back in the 19th and 20th century, So there must be something regarding the use of money or fundamental change in the laws of economics that drives us to prosperity.


    I have not taken an economics class, and i am quite ignorant about the subject. But I do read economics books.
    The fear of poverty turns people into slaves of money.

    "In this Caesar there are many Mariuses"~Sulla

    Conquer your inner demons first before you conquer the world.

  2. #12
    DoubleplusUngoodNonperson
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    "you can trade money for anything
    but you can't trade anything for money"

    That's because only some people want particular things. You can't (easily) sell an apple to a guy who has an orchard, after all. this should not be surprising, really.


    "value" is arbitrarily ascribed in an implicit manner - it is a COGNITVE function, a similar function to the way your brain assigns color to things. Purchasers assign value to things, as do buyers akin to the way you scan your visual field for that red apple. Defining it explicitly is worthless; money is a product of the brain and human behavior (exchange), not capitalist piggies or anything else

  3. #13
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    Quote Originally Posted by untypable View Post
    Well, see the point is that




    On what terms do you define value? The term value is really subjective.
    Duh. That is the entire point behind what we're trying to tell you.

  4. #14
    Oberon
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    Quote Originally Posted by untypable View Post
    Well, see the point is that

    you can trade money for anything
    but you can't trade anything for money

    hence the term money as a medium of exchange is misleading.
    Actually, you've put your finger right on the reason why money is useful as a medium of exchange. It is of value precisely because... and only because... it is widely accepted in exchange for goods or services.

    Quote Originally Posted by untypable View Post
    On what terms do you define value? The term value is really subjective.
    No, it's objective and quite simple. "Value," in the economic sense, is simply desirability. If a thing is desirable, then it has value. Make a cheeseburger, I want it, I'll gladly give you something in exchange for it... the cheeseburger has value. Drop it on the floor, step on it with your dirty shoes, I don't want it any more... it has lost its value.

    Now of course the actual values of various objects are not fixed. What has great value today may be worthless tomorrow. The value of a given object or commodity floats with supply and demand. I may like your cheeseburger okay, but your buddy will give me two cheeseburgers for what one of yours costs... I don't want your single cheeseburger when I can get two for the same price. Because of relative abundance, the value of all three of the cheeseburgers has gone down.

    Quote Originally Posted by untypable View Post
    Gold and currency has been used as a medium of exchange ever since the dawn of time,. But the rise of capitalism has its roots back in the 19th and 20th century, So there must be something regarding the use of money or fundamental change in the laws of economics that drives us to prosperity.
    Capitalism has its roots in prehistory. Money was invented in the broze age. Paper money was invented in the Middle Ages.

    Capitalism was practiced when some poor paleolithic hunter found that he was pretty good at making stone spear points, and so rather than hunt he made spear points all day, and traded them to the good hunters for meat. This gave rise to specialization, which in turn enabled that thing which we call civilization.

  5. #15
    Senior Member ptgatsby's Avatar
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    Quote Originally Posted by oberon View Post
    Capitalism was practiced when some poor paleolithic hunter found that he was pretty good at making stone spear points, and so rather than hunt he made spear points all day, and traded them to the good hunters for meat. This gave rise to specialization, which in turn enabled that thing which we call civilization.
    Although I agree with everything you have said, I would say that capitalism started when we started working with 'capital' - land (crops) and animals (animal husbandry). Minor nitpick

    For the OP: You can only buy something if someone will supply it. And there are many things that you don't buy that are supplied. Those two truths are fundamental to the exchange of money - allocation and scarcity.

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