Message from @Poppy Rider
Discord ID: 489526825396076555
The value of an item is based on what people will pay for it
Money is in no way neutral, nor is it representative proportionally to the goods and labour of a nation. You'd be right ages ago, but now the government controls the rate of value increase artificially
Modern cash is fiat based, not output based
And yes, the value of an item is exactly what people will pay for it, no more and no less
hoarding your labor, which is the closest you get to any actual value, is harmful to yourself and those around you as you are not effective at acquiring everything needed to live, and neither are those around you. Those effective at something will produce more results than those around you doing the same task for the same period of time. By shifting focus from being a jack of all trades to a master, more can be produced overall in the same amount of time, allowing buffers to be built up to prep for future problems
Or rate of value decrease rather
Money is "neutral" because everyone will accept it, but its value is pretty much subjective, which is why market prices fluctuate--what people will pay varies.
Rye, if hording money is not a bad thing and everyone does it the money supply dries up and no one can use it so they would start to use something else and your horded money loses value until it it worth nothing.
That's contextually based. I don't accept my wages in Yen, for instance
@Poppy Rider money is nothing, value is what is important.
I know
which is why i asked, hoarding value, or hoarding money.
It is the trust we put into it that gives it value.
unless you are low on cloths, hoarding money doesn't hurt.
He said money
^^
money is cloth like paper
doubt hording bolĂvar fuerte in Venezuela is hurting anything
I did say money
Paper money has more value than clothe simply coz it's easier to carry and not everyone needs cloths.
yeah, but its not as durable as cloth
Common currency exists because barter depends on the needs of the person you're trading with
but if you are hoarding value, it means you are taking from others without giving back, which is a drain on the system
currency bypasses that requirement
IF I horde all the money is can the supplier has to make more so there is enough to sever the community. That causes inflation making your cash worth less. If you are just sitting on it, that is.
Why does he have to make more? No exchange has been made that requires that money, no?
If there isn't enough currency is circulation to serve the needs of the community the community will start to use something else untill they stop using the original altogether.
If everyone stopped spending nobody would be buying food
Okay let's break this down though
do i need to pay with money?
There's 1000 dollars in the economy. I hoard 100 dollars of it. Only 900 dollars can be traded
why can't i do something for someone in exchange for food?
^^
Why is the economy going to fail now?
You could, grenade
You can't charge more than someone is willing to pay
Or rather more than anyone is willing
But what reason do you have to do something for someone who has nothing you want?
Or you won't trade
That's the role money fills. It's essentially a shape-shifting good.