Time Value of Money

[Flip McWho]

What are you trying to do to me? I'm very tired. I can't figure that out right now.

I'll talk to you tomorrow.

Cool cool. Make sure you do. Have a good sleep.

[Bosh]

And there you go again, tying value to some (undefined) absolute...

DF complaining that others try to value undefinable absolutes. Thoughts of pots and kettles come to mind...

[Kidlicious]

Originally posted by Flip McWho
Do you define peoples perception as smoke and mirrors?

Saving money does not create value. Spending money is what stimulates work, which in turn creates value. Are we together on this or should we go into this?

[Kidlicious]

Originally posted by David Floyd
Why should the specialist get anything further than a wage? It really isn't fair - his wage already compensates him for his labor.

No it doesn't, but that's kind of another matter. Sure the matters are related, but I'm trying to keep this thread from degenerating into what similar threads have done in the past.

There's nothing really wrong with your argument, but I just don't want to respond to it in detail unless you can connect it to the debate as to whether money creates value.

[DAVOUT]

Time is a quality of the money : we generally think that to-day money is of better quality than next month money (could also be the reverse); therefore more units of next month money are equivalent to less units of to-day money. As a practicality in calculations, we use a so called *interest rate* to describe the quality.

[Kidlicious]

Originally posted by Flip McWho
So? The labour to build and maintain those machines just exist. What makes you think there is a utility value involved?

There's a utility value associated with land. The thing is land is not a conscious being. If it were then it might demand compensation.

[Kidlicious]

Originally posted by DAVOUT
As a practicality in calculations, we use a so called *interest rate* to describe the quality.

This is where it should stop. Unfortunately it doesn't.

[David Floyd]

There's nothing really wrong with your argument, but I just don't want to respond to it in detail unless you can connect it to the debate as to whether money creates value.

My argument was an example of how value is created by perceptions - the specialist saw a value in accepting a wage to do a job.

[Kidlicious]

Originally posted by David Floyd


My argument was an example of how value is created by perceptions - the specialist saw a value in accepting a wage to do a job.

OK, but the specialist produced the work, the perception didn't.

[Arrian]

Having read the first couple of pages and skimming this one, it would seem that the logical disconnect Kid is experiencing has to do with the very definition of "value."

Kid seems to think things have some sort of objective value in the world. This is not so. Value is subjective - a given item has varying value to different people in different situations at different times.

Would I pay $2 for a bottle of watter right now? Hell, no! There is a water fountain right around the corner from my cubical.

Would I pay $2 for a bottle if I'd spent the day wandering around Mexico City in 90+ degree heat? Yeah, I'd suck it up and meet that price. I'm hot, thirsty, and don't want Monty's revenge!

Any difference in the water? No, of course not. But that's really irrelevent. What changed is ME, or more precisely, my wants/needs.

Human beings define what is valueable to us. Things do not have some sort of innate value.

-Arrian

[Kidlicious]

Originally posted by Arrian
Having read the first couple of pages and skimming this one, it would seem that the logical disconnect Kid is experiencing has to do with the very definition of "value."

Nope. I'm not trying to define how to measure value in this thread. I debating what creates it.

[Arrian]

"Creates" value? Value is perception. It's only in the mind.

I mean, seriously, why have human beings been killing each other for centuries over gold? It's a weak metal that looks kinda pretty. It's value, to me anyway, seems absurd. Yet it is. Why? Perception. People like it, and it's relatively rare to boot.

-Arrian

[Kidlicious]

Originally posted by Arrian
"Creates" value? Value is perception. It's only in the mind.

I mean, seriously, why have human beings been killing each other for centuries over gold? It's a weak metal that looks kinda pretty. It's value, to me anyway, seems absurd. Yet it is. Why? Perception. People like it, and it's relatively rare to boot.

-Arrian

You can't perceive things that only exist in your mind deary.

[Drachasor]

Originally posted by Kidicious


You can't perceive things that only exist in your mind deary.

per·ceive Audio pronunciation of "perceive" ( P ) Pronunciation Key (pr-sv)
tr.v. per·ceived, per·ceiv·ing, per·ceives

1. To become aware of directly through any of the senses, especially sight or hearing.
2. To achieve understanding of; apprehend.

It's number 2.

-Drachasor

[Arrian]

Value is only in our minds, Kid. Even basic necessities, like food. If I've already eaten, more food is unnecessary and thus becomes a luxury, not a necessity. It's value to me drops.

It's total folly to try and set an objective value to something, because there are 6 billion people on this planet and each of us has different wants/needs and means. Something very valueable to you might be junk to me, and vice-versa.

-Arrian